Integrated report2020
Annual Review

April 2019 – March 2020

Mizuho Financial GroupAt Mizuho we are swiftly addressing structural changes in society, theeconomy, and industries, and are earnestly confronting the newchallenges that our customers and society will face in a post-COVID-19
world. By providing support as a united group, we will forge new formsof partnerships with our customers as we aim to transition to the next
generation of financial services.

1

Mizuho Financial GroupDeclining birthrate and aging population

Globalization

Digitalization
2020 Integrated Report

2

COVID-19 related initiatives

For our customers
Establishment of the Mizuho
COVID-19 Support Fund
Established in response to new demand
for short-term working capital due to themounting economic damage and impactof the COVID-19 pandemic.

¥1 trillion(total including fund No. 1 and No. 2)

Establishment of the Mizuho
Post-COVID-19 Assist Fund
(Growth Strategy)
Established in response to the long-term
financing needs of middle-market andSME clients for business portfolio
restructuring and investing in growth, tobe utilized for large-scale capital
investments and other purposes.

Establishment of the Mizuho PostCOVID-19 Assist Fund (BusinessSuccession)
Established to support the smooth succession ofbusinesses to the next generation of owners in
the post-COVID-19 era.

¥10 billion

Launch of the Post-COVID-19
Support Project
Supporting initiatives for new ways of life forcorporate and retail customers in the postCOVID-19 era.
- Providing support for participating merchants totransition to cashless check-out and improve
efficiency using the “STORES Terminal for Mizuho”
payment service.
- Participating together—Project supporting newlifestyles via financial services¥200 billion

Mizuho office initiatives
Capital support throughquasi-equity financing andintermediary services
In addition to providing clients withmezzanine financing and quasi-equity
loans, expand new financial intermediaryservices in capital markets including
private capital.

Over ¥100 billion

Increased the total amount for
Mizuho Life Science Fund No. 1
Increased the total amount of the fundto address funding needs of companies
involved in the development of new
medical technologies.

¥5 billion

3¥10 billion

Mizuho Financial GroupInternational- We have made arrangements for employees toutilize remote technology according to thesituation in each country, enabling us tomaintain and continue the stable provision offinancial services, and to respond to clients’financing and settlement needs.
Japan- Creation of an operations framework to support
the smooth payment of government payouts- Opened financing consultation windows at all
Mizuho Bank branches- Responding to urgent financing demand- Flexible response to new loans, revising loan
conditions, etc.

For people’s lifestyles& society
Establishment of the J-Coin
Fund
Combining a ¥500 million contribution

Launch of a project
supporting new lifestyles
via financial services

from Mizuho with donations from a wide

For each customer to use certain

range of donors including regional financial

applicable services and apply for thisinstitutions involved with J-Coin and J-Coinproject, Mizuho Bank will donate ¥55

users, we established the J-Coin Fund as

to organizations working to support

a framework to provide far-reaching

new lifestyles.

support to those that need it.

Mizuho Private Placement
Bond Fund responding to
COVID-19

International

We donate ¥200,000 to medical-related

support their efforts, including those to

institutions for each private placementbond issuance, up to a maximum total ofContributing to institutions andorganizations outside of Japan tohalt the spread of COVID-19.

¥40 million.

2020 Integrated Report4Message from the Group CEO

Introduction
First of all, allow me to express my heartfelt sympathies for allof those who have contracted COVID-19 and the many people
who have been impacted in various ways by the spread of thevirus.
This crisis has caused major disruption to the economy andfinancial markets and has significantly impacted people’s daily
lives and work styles. At Mizuho, the health and safety of ourcustomers and employees is our top priority, and we areutilizing split operations, remote work, and otherarrangements based on the situation in each region. This has
enabled us to continue to stably provide financial services,such as settlements and lending, which are essential for our

5

Mizuho Financial Groupcustomers and the economy, even when a state of
emergency or other such response has been put in place by
the local authorities. We are also attentively listening to theneeds of corporate clients and individual customers requiring
funding assistance, and are making every effort to meet theseneeds, including providing new loans and changing theconditions of existing loans. Although the situation is still
uncertain and we cannot let down our guard, we will continue
to work together as a united group to ensure that we canprovide essential financial functions in times such as thesegoing forward.
Additionally, we have established the J-Coin Fund and in
addition to making an initial donation to the fund we aresoliciting donations from a range of sources and offering to
make an additional donation based on our clients’ total issue

Message from the Group CEO

Becoming even stronger as we look ahead
to a post-COVID-19 world
Due to the novel coronavirus (COVID-19) pandemic,
we are faced with an unprecedented crisis with severe
impacts on the real economy. Also, as we battle thisvirus, society as a whole is changing significantly toadjust to a post-COVID-19 world, including the way welive our lives and the way we do business.

I would like to take this opportunity to share Mizuho’s
strategy for adapting to a world impacted by COVID-19
and the world as it will be after the pandemic ends. It
is not that we cannot return to how things were
before COVID-19, but rather that we choose not to.
COVID-19 can be a catalyst to transform us into astronger organization. In this unprecedented crisis, weare committed to making decisive forward progress.

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

amount of privately placed bonds. This is just one way that weare working to support people’s lifestyles and society as awhole, including health care workers and affected families andstudents.

A world impacted by COVID-19
Currently, countries around the world are facing a truly
unprecedented crisis with the COVID-19 pandemic and its
impacts such as a sudden drop in demand and severe
deterioration to the real economy affecting economic growthand employment. Over half a year has passed since infections
with this unknown virus were first discovered, yet it is still
difficult to accurately predict the scope and severity of impact,when the virus will be contained, and other factors. According
to the IMF’s most recent World Economic Outlook (June 2020
edition), global growth is projected at -4.9% in 2020. This issignificantly lower than the last time that growth was
negative, which was -0.1% growth in 2009. From this we canperceive the extent to which this crisis is unusual andunprecedented.
Of course, the economic crisis will be contained at somepoint, but development of a vaccine is still in the early stages,
and with concerns present regarding the risk of a second andthird wave of infections, it has been posited that containment
may take a significant amount of time. We must be aware of
the potential for growth in the real economy to remain
sluggish over the long term and for the accompanying impacts
to be prolonged.

2020 Integrated Report6Message from the Group CEO

How is this different from the global financial crisis?
In September 2008, Lehman Brothers filed for bankruptcy
with $613 billion in total debt, a record in the US. The financial
crisis that followed with its far-reaching impacts on economies
and societies around the world was said at the time to be a“once in a hundred years” event. Although it is unavoidable
that the current economic crisis will inflict more damage than
the global financial crisis, this time it is different for financial
institutions. The reason is that during this crisis our financial
functions are operating as normal due to the following threepoints.
Firstly, the current crisis is not financial in origin. At the startof the global financial crisis, with the emergence of thesubprime mortgage crisis, financial institutions were initially
impacted and the reduction of their ability to provide financing
sent shock waves through the real economy, which in turn led
to further negative impacts on financial institutions’operational status, creating a downward spiral. Secondly,
central banks and governments around the world are quickly
and resolutely implementing countermeasures based on
experience gained in the previous crisis. These
countermeasures have been effective and at present there
are no concerns regarding the stability of the financial system.
And thirdly, financial institutions have accumulated capital,enhanced risk management methods, improved portfolio

7

Mizuho Financial Groupsoundness, and made other efforts based on the lessons
learned from the previous crisis and in response to the tighter
regulations introduced afterward. As a result, financial
institutions are prepared to continue providing financing evenin the event of a crisis.
At Mizuho as well, our overall credit portfolio is significantly
more sound compared to the time of the previous crisis. In
structured products, where we recorded a large loss at thetime, we have greatly improved the quality of our portfolio asa result of revising our policy and strengthening our risk
framework. For example, around 80% of our real estaterelated and commodity-related credit is equivalent toinvestment grade. Also, outside of Japan 80% of our portfolio
is investment grade as a result of promoting our Global 300
strategy focused on blue-chip companies. In terms ofinvestment, we currently do not hold any assets for which
there is a concern of recording a large loss. As a result, I cansay with confidence that Mizuho has the stress resistancenecessary to overcome this challenging time.
With this in mind, where should we focus our efforts? I
believe we should solidify our defenses in preparation for aworsening business environment while at the same time
providing the financial functions which are more essential
than ever. We must smoothly provide much-needed credit andMessage from the Group CEO

ensure that liquidity, the lifeblood of the economy, continues
to flow around, thereby avoiding a severe worsening of theeconomy or delay to recovery. It is our hope that as a result of
these efforts our customers’ businesses and lifestyles canrecover as soon as possible and that this in turn will help the
economy. That is why it is vital that we go back to basics andprovide the financial functions which are more essential thanever.

We are already beginning to experience a postCOVID-19 world
The real economy has sustained profound damage from theimpacts of COVID-19. At the same time, members of society
are coming up with a variety of measures to cope with life
amid the outbreak. During this time, various vulnerabilities
have become apparent in the economies and societies ofcountries around the world and as a result we are making
new discoveries and learning new things in a range of areas.
These experiences are already leading to major changes,
including in our lifestyles and the way we do business, as wetransform into a post-COVID-19 society.
At Mizuho, we are focused on the “megatrends” that arelikely to have a major impact on the finance industry—digitalization, the declining birthrate and aging population, andglobalization—and we believe this general trajectory will notchange after COVID-19 subsides. However, during the
COVID-19 pandemic, a range of vulnerabilities have become
even more apparent in the wake of these megatrends. In lightof this, changes are arising in people’s way of thinking,actions, etc. and in the finance industry new movements areaccelerating in preparation for a post-COVID-19 world.
Firstly in terms of digitalization, it has become apparent thatJapan in particular is behind when it comes to digital
infrastructure. The current situation has reaffirmed thechallenges that municipal organizations, government, andprivate sector organizations like Mizuho face regarding
digitalization. By facing this situation, issues that werepreviously thought to be especially difficult to overcome suchas the shift to digital contracts and cashless transactions arebeing addressed with renewed speed. Also, for retailcustomers there has been a sudden shift from in-branch toremote transactions using digital technology. As for the
declining birthrate and aging population, uncertainty regarding
health and life after retirement is increasing. In the area of
business succession for example, as uncertainty regarding
the future grows, an increasing number of companies, eventhose with young CEOs, are taking this opportunity to
implement succession measures at an earlier stage, including
MBOs and delisting. In regard to globalization, the stall inbusiness caused by the COVID-19 outbreak has createdsevere issues concerning the uneven distribution of supply
chains. Additionally, there is the issue of the rise ofanti-globalism. However, globalization is not being reversed asa result, but rather globalization has become the norm and weare seeing the start of a movement to restructure andoptimize supply chains. These are merely some examples of
the ways in which COVID-19 has spurred change in society,and both society and customer needs are undergoing
structural changes as we look ahead to a post-COVID-19
world. Such shifts are beginning to occur in any number ofareas.

Acceleration of the transition to the next
generation of financial services
Last fiscal year, Mizuho launched our 5-Year Business Plan:
Transitioning to the Next Generation of Financial Services. The
basic policy under this plan is to implement structural reforms
in three areas—business structure, finance structure, andcorporate foundations—in order to transition to the next
generation of financial services and respond to customer
needs as they undergo structural change against the backdropof these megatrends. Up until now, financial institutions havedesigned their businesses around the value of money itself.
However, the days are long in the past in which banks would
accept deposits and return them without fail with an attractive
level of earned interest all while maintaining robust
infrastructure for operations, IT systems, compliance, etc. We
must fully draw on the strengths that Mizuho has cultivatedthus far and go beyond the conventional boundaries of financeto create new value incorporating both financial and nonfinancial products and services. In doing so, we can forge
new forms of partnerships with our customers. That is the key
strategy under our 5-Year Business Plan. Under our first action
principle of “Open & Connected”, we are aiming to connect
customer segments, regions, functions, and other aspects ofour business in open partnerships within and outside thegroup in order to create new value chains spanning bothfinance and adjacent fields. And under our second action
principle of “Passionate & Professional”, each member of thegroup will be encouraged to find a source of inspiration in the
dreams and hopes of our customers, better connect withthem, and draw on a high level of expertise to think, act, anddeliver. Although traditional financial institutions are viewed asconservative, or “strong on defense but weak on offense”,
through these efforts we can break out of our shell and work
towards creating new value.
In fiscal 2019, the first year of our 5-Year Business Plan, inlight of the impacts of COVID-19 we recorded reserves forpossible losses on loans as a forward-looking and preventative
measure. Due mainly to this factor, progress towards ourtarget for Profit Attributable to Owners of Parent was 95%.
However, overall performance was strong in each division,
showing that our efforts are bearing fruit. Our structural

2020 Integrated Report8Message from the Group CEO

reform initiatives, which are positioned as the main priorities
within our 5-Year Business Plan, are also proceeding well andexceeding our targets.

COVID-19 as a catalyst to transform us into astronger organization
As I already touched upon, vulnerabilities in society, theeconomy, and industries have manifested due to COVID-19. In
turn, latent issues regarding Mizuho’s structural reforms havealso become apparent. In that sense, although the necessityand direction of our structural reforms are unchanged, we
believe it is important to further deepen these structuralreforms in light of the challenges associated with responding
to the pandemic.
These structural reforms will be implemented over a five-year
period, but the most crucial period is the first three years,
particularly this year when we must surmount the peak. Whileadapting to a post-COVID-19 society and economy, it isessential that we fundamentally change our operations andinfrastructure, including retail branches, as well as the way we
do business. Additionally, we must ascertain as early as
possible these structural changes occurring within society andtake resolute action, taking an offensive rather than defensive
stance and expanding our business domain with an eye to thecurrent situation.

Megatrends
Manifestation ofvulnerabilities
due to theimpacts of
COVID-19

Digitalization
High dependence of face-to-facechannels usiness processes/infrastructureBhindering digitalization

In the area of digitalization, for example, COVID-19 isincreasing the demand for contactless transactions. At
Mizuho, we are enhancing efforts to shift to cashless
payments via J-Coin Pay, a service offered in collaboration
with regional banks and other financial institutions that boasts
excellent safety, security, and convenience. Also, assmartphones become more and more essential to ourlifestyles, through partnerships with a broad range of IT
companies, we are seeking to integrate the financial
capabilities that Mizuho has amassed thus far with the newlifestyles and economic spaces being formed via the use ofsmartphones. Furthermore, starting this fiscal year,
information that customers enter into tablets available at retailbranches will be sent directly to our new core banking
system, MINORI. Among other benefits, this will increase theefficiency and speed of branch operations, further enhancing
convenience for customers through the use of digitaltechnology.
Strategic investment is another part of this. A strategy
outlined in our 5-Year Business Plan is to enhance our risktaking capabilities, collaborate with our clients on businessstrategy, and share risks as a business partner. The COVID-19
pandemic is producing demand for a fundamental
transformation of clients’ business strategies and financestrategies. At the same time, the current businessenvironment is likely to create downward pressure on capital

Declining birthrate & aging
populationIncreased anxiety about the
future due to unstable income
and health concerns

Globalization
Uneven distribution of supply
chains

Rise of anti-globalismAlready seeing rapid structural changes in society, the economy,
and industry due to the impacts of COVID-19
Customers

Post-COVID-19
world

Futureinitiatives

9

RetailCorporate

Markets

Pursuing safe and secure lifestyles
based on the advancement ofdigitalization

Fundamental transformation ofbusiness/finance strategies

High-volatility market structure withresidual excess liquidity

Strengthen remote transaction
infrastructureProvide quasi-equity financing

 ales & Trading: Capture diverse
S
investor needs

Cashless payments
 sset management and succession
Abusiness

Mizuho Financial Group
Supportfor restructuring and asset
salesSupport changes to supply chainsB anking: Flexibly shift allocation ofassetsMessage from the Group CEO

for at least the next one to two years and clients will need torespond. By utilizing our strengths such as our industry
research capabilities and financial/capital strategy execution
capabilities, we will seek a range of opportunities to holdcontinual discussions with our clients’ senior management
and work to further assist clients to grow their capital for both“defensive” and “offensive” purposes, including through theprovision of quasi-equity financing.
We will also provide growth support. Our support for thegrowth of innovative startups involves not only funding but
also support for the growth of the business itself, including
providing talent. However, even companies with goodtechnology and a good business model will find it very
challenging to succeed in the current environment, so we will
support them in a number of ways, including financing
support via investment funds.
In terms of globalization, while companies are aiming to more
evenly distribute uneven supply chains, we are seeing thestart of a movement to optimize and rectify supply chains in a
way that achieves both efficiency and security. At Mizuho, we
are working to build high-level relationships with the senior
management of global multinationals through our Global 300
strategy. Under the current environment, we are drawing on
the collective capabilities of the Mizuho group to assist
clients, including consulting regarding business strategy andproviding research capabilities in order to support trade flow
restructuring and other initiatives.
We are aiming to bring a can-do attitude and expand the ways
we work together with clients. Continually pursuing suchopportunities will surely lead to the creation of new value
incorporating both financial and non-financial products andservices.
It is not that we cannot return to how things were before
COVID-19, but rather that we choose not to. COVID-19 can bea catalyst to transform us into a stronger organization. With ashared awareness of this throughout the group, we canresolutely accelerate our transition to the next generation offinancial services.

Sustainability initiatives
In order for us to continually enhance our corporate value, wemust focus not only on our own value but on creating value
for a broad range of stakeholders, including our shareholders,customers, employees, and society as a whole. From thatperspective, we define sustainability for Mizuho as Mizuho’ssustainable and steady growth, environmental conservation,and the sustainable development and prosperity of theeconomy, industry, and society both in Japan and around theworld. With this as our basic approach, we will work together
as a united group to formulate strategic initiatives.
Based on our awareness that climate change is one of themost crucial global issues having the potential to impact thestability of financial markets, we have positioned addressing
environmental issues and climate change as a key part of ourcorporate strategy and are continually bolstering our
initiatives.
A key aspect of this is dialogue with stakeholders—in otherwords, engagement. In April of this year we tightened ourEnvironmental and Social Management Policy for Financing
and Investment Activity and through this process, which
involved extensive dialogue with clients and a variety of otherstakeholders, we were able to thoughtfully explain our
thinking and gain their understanding while maintaining a
deep understanding of our clients’ business strategies.
Together we are working towards a low-carbon society.
Additionally, proactive disclosure is an important aspect ofengagement. This year, in addition to our Integrated Report
we have released a TCFD Report. We are aiming to engage infurther dialogue with our stakeholders by proactively
disclosing the conditions/assumptions behind our efforts andthe results of various considerations.
Going forward, we will continue to deepen our engagementwith our customers, investors, and other varied stakeholders,
listening closely to your opinions, and working to improve ourinitiatives and disclosures as a result. And we will ensure that
this mindset is adopted throughout the organization. As theGroup CEO, I am committed to leading the way as weenhance our initiatives.

Delivering benefits to our stakeholders
In recent years the concept of stakeholder capitalism has
become increasingly popular; however, we at Mizuho havealready embraced this idea. Our Corporate Philosophy, whichforms the basis of Mizuho’s corporate activities, articulates
our commitment to creating lasting value for our customers
and the economies and communities in which we operate.
Traditional finance industry business models, where thebusiness is structured around the accumulation of deposits,
are in need of fundamental change in light of recent
developments such as structural changes in society, theeconomy, and industry as well as the continuation of low and2020 Integrated Report10Message from the Group CEO

Mizuho’s Corporate Identity

Corporate Philosophy
Creating lasting value for ourcustomers and the economies
and communities in which we
operateVisionFinancial services
group with a global
presence and abroad customer baseMizuho Values
Customer First,
Innovative Spirit,
Team Spirit, Speed, Passion

Changes in the environment(megatrends)
Digitalization
Declining birthrate andaging population
Globalization
Structural issues in
the finance industry

Competitive environment:• Regulatoryeasing• Riseof fintech• Entryof new players from otherindustries

Social/economic
structural issues
Market capitalism
Increasing income inequality
Environmental issues

At the same time, the issues arising from COVID-19 haveonce again made it clear that there are some things that only
a financial institution like us can do as we maintain sufficient
capital and can provide credit in this situation. However that is
not all we bring to the table. The strengths we have cultivatedinclude trustworthiness and dependability, a broad customer
base and extensive network, advanced financial and nonfinancial functions, and our approach to business as a unitedgroup. We will fully draw on these strengths to go beyond the
traditional boundaries of finance, consider how to journeywith our customers into the post-COVID-19 future and sharerisks with them as needed, acting as an invaluable partner for

11

Mizuho Financial Group

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

Creation of new value in finance andadjacent fields

Earnings environment:• Lowinterest rate environment(negative interest rates)• Prolonged
monetary easing by
central banks• Declining
value of deposits• Reduceddemand for loans

negative interest rates. Additionally, trends such as regulatory
easing and digitalization have led to the rise of fintech and theentry of new players into the finance industry, creating aneven more challenging competitive environment for traditional
financial institutions.

Mizuho’s stance
Build a stronger and more resilient financialgroup which our customers can depend onin the coming era

Forge new forms of partnerships with ourcustomers

A partner that helps customers design their lives ina changing society• Astrategic partner for business development undera changing industrial structure• A
partner with expert knowledge of market
mechanisms and the ability to draw on a range ofintermediary functions• 

Action principles
Open & Connected

Passionate & Professional

Sustainability
Mizuho’s sustainable and steady growth,environmental conservation, and thesustainable development and prosperity ofthe economy, industry, and society both inJapan and around the world

achieving the future they envision. This is our role going
forward and now is the time for us to prove our true value.
In order to achieve this, we need a talent pool of specialists
who are well-versed in both finance and non-finance fields,
have universally recognizable skillsets, and who ourcustomers can depend on. To this end, we are promoting a
new HR strategy centered around a compensation system
which rewards the exercise of expertise as well as providing
career design support. An increasing number of employees
are applying for internal job postings, concurrent assignments,and external part-time roles. In this way we are working toenhance employees’ expertise and expand the opportunities
available to take on new challenges both within and outside
the organization. Going forward we will continue to encourage
employees to expand their professional fields in line with theirexpertise and to grow. We will do this by building a newframework for how we develop, evaluate, and compensateMessage from the Group CEO

employees, among other considerations, as well as promoting
the advancement and empowerment of diverse talent.
Additionally, based on the experience of responding to thepandemic, we will work to achieve even more flexible work
styles and enable employees to enhance their creativity andproductivity while also ensuring their health and safety.
Through these efforts we will continue to deliver benefits toour varied stakeholders even as the times change, a mission
embodied in the name Mizuho, which evokes images of a“bountiful harvest of rice” in Japanese.

In closing: Think, act, and deliver in order to riseup stronger than everThis fiscal year is a critical moment for us as we face theunprecedented crisis brought about by COVID-19. The financial
industry is said to be a mirror of the real economy in someways and our performance may dip somewhat for at least thisfiscal year. However, our customers and society expect greatthings of Mizuho. We must seize this critical moment and fully
draw on our financial capabilities, including cash flow supportand settlements, coming together as a united group in orderto help society and the economy recover as early as possible.
Additionally, structural changes in society, the economy, andindustry that will shape the post-COVID-19 world are occurring
rapidly, such as digitalization and the shift to remote work andremote channels. In light of this, we will expand our businessbase, deepen our structural reforms, and otherwise further
accelerate the transition to the next generation of financial
services.
As the true value of financial services is being tested, this is awindow of opportunity and if all of us at Mizuho can cometogether to think, act, and deliver, I am confident that we willrise up stronger than ever. The entire group is working
together to achieve the objective I have outlined since I was
appointed as Group CEO of “building a stronger and more
resilient financial group which our customers can depend onin the coming era”. We appreciate your continued support andwill do everything in our power to exceed your expectations.
July 2020

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

2020 Integrated Report

12

CONTENTS
P. 5

Message from the Group CEO

About Mizuho
P. 14
P. 15
P. 17
P. 19
P. 21
P. 22

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

P. 47 Digitalization
P. 49 Employee engagement
P. 53 Sustainability

P. 108 Corporate profile
P. 109 Group companies

Foundations for our corporate value

P. 111 Compliance contacts
P. 112 Support for SMEs and regional

P. 69 Corporate governanceBoard of Directors
P. 79 Dialogue between the Group CEO— Opening feature —P. 3 COVID-19 related initiatives

P. 83
P. 89
P. 92
P. 93

P. 23 Message from the Group CFO

Our strategies for creating valueP. 31 Progress on the 5-Year Business Plan
P. 33 Business strategies by company/unitRetail & Business Banking CompanyC orporate & Institutional Company
Global Corporate Company
Global Markets CompanyA sset Management Company
Global Products Unit
Research & Consulting Unit

P. 94

and Chairman of the Board of
Directors
Risk governanceCompliance
Fiduciary duties
Compliance with international
financial regulations
Stakeholder communication

Appendix

revitalization

P. 113 Internal audit structure
P. 114 Risk management structure
P. 126 Business continuity management
P. 127 Senior executives
P. 128 Location of offices outside Japan
P. 131 Investor information
P. 132 Financial Analysis [Under Japanese

GAAP]

P. 140 Financial Data of Mizuho Financial

Group, Inc. [Under Japanese GAAP]

Data section

P. 99 Eleven-year major financial data

(FY2009-2019)P. 101 Review and analysis for fiscal 2019P. 105 Five-year non-financial data
P. 106 ESG evaluation, Participation ininternational initiatives
P. 107 Mizuho’s global network

P. 236 Non-Consolidated Financial

Statements of Mizuho Financial
Group, Inc. and Three Subsidiaries[Under Japanese GAAP]
P. 250 Basel Regulatory Disclosures
P. 334 Disclosure Policy

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

Mizuho Financial Group

Scope of thereportPeriod covered: From April 1, 2019 to March
31, 2020
Also includes some information after April
2020
Scope covered: In principle, Mizuho
Financial Group and its subsidiaries andaffiliates

Publication
information

Date of issue: September 2020|

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

Integrated Report 2020

Integrated report
2020

Integrated Report

Annual Review

April 2019 – March 2020
Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
www.mizuho-fg.com

Mizuho Financial Group

This PDF version of the Integrated Report is a digital version of the Forest StewardshipCouncil (FSC)-certified published version, which is printed on FSC-certified paper.

Nonfinancial

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10:40:00

Financial
On our website: Sustainability
https://www.mizuho-fg.com/csr/index.html• Sustainability• Business Activities• Finance and Economic
Education• Employees• Human Rights• Customers• Environment• Social Contributions• Governance• Communication

On our website: Financials and Presentations
https://www.mizuho-fg.com/investors/
materials/index.html• Company briefing
materials• Financial documents• IR event documents• Briefings for individual
investors• Financial Statements• Securities Reports(Japanese only)• SEC Filings• Financial Statements(under US GAAP)

CompletenessAll figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”).
Forward-Looking Statements
This Integrated Report contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including
estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,”“target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy,plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation:
incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of ourassets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar
purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our 5-Year Business Plan,
realize the synergy effects of “One Mizuho,” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies;
the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. Further information regarding 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 most recent Form
20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on July 31, 2020, both of which are available in the Financial
Information section of our web page at www.mizuho-fg.com and also at the SEC’s website at www.sec.gov.
The contents of this Integrated Report were prepared prior to the announcement of our financial results for the first quarter of fiscal 2020.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

13

Mizuho Financial GroupAbout Mizuho

Corporate Identity

Mizuho’s fundamental approach to

Corporate
Philosophy

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

Mizuho’s vision for the future,

Visionrealized through the practice of
the Corporate Philosophy

The shared values and principles of

The Mizuho Values

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

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

The best

The most cohesive

financial services groupfinancial services provider

financial services group

The Mizuho Values
Customer First

Innovative Spirit

Team Spirit

Speed

PassionThe most trusted partner

Progressive andDiversity and

Acuity andCommunication andlighting the future

flexible thinking

collective strength

promptness

challenge for the future2020 Integrated Report14About Mizuho

Value creation process

Mizuho’s Corporate Philosophy, which is at the core of our Corporate Identity, articulates our commitment to creating lasting value
for our customers and the economies and communities in which we operate.
Our customers’ needs and the financial industry are rapidly undergoing structural changes in reflection of the structural shifts
occurring in the economy, industry, and society. In line with our action principles, Open & Connected and Passionate & Professional,
we will focus on transitioning to the next generation of financial services—building new forms of partnerships with our customers

Megatrends

Creation of new value in finance and adjacent fields in oDigitalization
Declining birthrate and aging
population
Globalization

Go beyond the conventional boundaries of financenon–financial products and services in order toVulnerabilities exposed by
COVID-19 impact

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

Declining birthrate and aging population
Rising uncertainty for the future due toincome instability, health concerns, etc.
Globalization
Unevenly distributed supply chains
Rise of anti-globalism

Post-COVID-19 world
Seek safe & worry-free
Retailcustomers lifestyles in which digitalization

Mizuho’s strategy

Digitalization
High reliance on face-to-face channels
Work processes and infrastructure thathinder digitalizationis standard
Corporate Fundamental reform ofbusiness strategies and fiscal
clients
strategies
Markets High-volatility market structurewith residual excess liquidity

Markets

15

Capturediverse investor
needs
Banking:
Review flexible asset
allocation

Mizuho Financial Group

Create new, more open value chains spanning bothfinance and adjacent fields

Corporate governanceStrengthen
remotetransaction platforms

Cashlesstransactions
Asset management &succession business
Sharebusiness risks byproviding quasi-equity
financingSupportreorganization/asset
sell-offSupportthe rebuilding of
supply chains

Open & Connected

Anticipate customer needs and then think, act,and deliver

Sustainability

Mizuho’s strengths

Corporateclients

Action principles

Passionate & Professional

Initiatives going forward
Retailcustomers

 raw on the strengths that Mizuho has cultivatedD
thus farAccelerate our digitalization initiatives andproactive collaboration with external partners

Risk governance

Mizuho’s sustainable and steady growth, enviro
the economy, industry, and society both in Japa

Approach busine
Human &
intellectual
capital
Financial
functions
Ability
to respond tonon-financial needs

Excellentteam of professionals

Social &relationshipcapitalAbout Mizuho Value creation process

so that we can respond to their needs as the times change. Our objective is to build a stronger and more resilient financial groupwhich our customers can depend on in the coming era.
Through these efforts, we will create new value for our stakeholders and contribute to environmental conservation, the sustainable
development and prosperity of the economy, industry, and society around the world, and the realization of the SDGs.

order to transition to the next generation of financial services

e and create new value incorporating both financial andValue created forstakeholders

forge new forms of partnerships with our customers
Customers

New forms of partnerships with customers

Retailcustomers& businessownersCorporate &institutional
clients

Be a partner that helps customers design theirlives in a changing society
Assetformation in an age of longevitySolutionsfor business succession needs
Createnext-generation branchesCreatenew business through the application oftechnology and open collaboration
Be a strategic partner for business development
under a changing industrial structure
Support the growth acceleration of startups
Build new partnerships for business development
Leverage our Asian network as a hub for global
businessCreatenew value in adjacentbusiness areas surrounding
finance chieve increased customer
A
convenience and business growth

ShareholdersI ncrease corporate value by
resolving structural issues andaccelerating growthBe a partner with expert knowledge of market
mechanisms and the ability to draw on a range ofintermediary functions
Marketparticipants
Optimize
our global markets operational frameworkEnhancethe sophistication of our ALM andportfolio management

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

Societyonmental conservation, and the sustainable development and prosperity ofan and around the world.

Contribute to therealization of the SDGs

ess as a unified group
Customer base and network‌Trustworthinessanddependability
Market presenceContributeto environmental
conservation and the sustainable
development and prosperityof the economy, industry, andsociety around the world

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

Further enhance Mizuho’s
strengths

2020 Integrated Report16About Mizuho

Mizuho’s journey

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

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

DNA

1873

1880

1902

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

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

(photo: The Mainichi)

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

2003
Establishment of Mizuho Financial Group
Establishment of Mizuho Trust & Banking
Merger with Mizuho Asset Trust & Banking

1999

2010

Merger of our threepredecessor banks

2007

2008

European debt crisis

Global financial crisis
リーマンショック発生

Sub-prime mortgage
crisis
サブプライ
ムローン問題発生

2004
Banks
are permitted to act as銀行に証券仲介業務が解禁
securities brokerages
Establishmentof the産業再生機構設置
Industrial Revitalization
Corporation of Japan

2003

2002
2000
Establishment of Mizuho
Holdings

17

Mizuho Financial Group

Establishment of Mizuho Bank andMizuho Corporate Bank

2005

2006
Completion of public fund repayment
Listed on NYSE

2010

Announcement of businessstrategy: Channel to Discovery
Plan

Announcement of medium-term
policy: Mizuho’s Transformation
ProgramAiming to be a financial partner that helps
customers shape their future and achieve
their dreams

Aiming to be the most trusted financial
institution by its customers in and outside
Japan by focusing on the core functionof contributing to social and economic
development

About Mizuho Mizuho’s journey

2011
Mizuho Trust & Banking and Mizuho
Securities become wholly-owned
subsidiaries of Mizuho Financial Group2013
Merger of Mizuho Bank and Mizuho
Corporate Bank
Establishment of Mizuho Securities
Merger with Mizuho Investors Securities

2020

2014

2019

新型コロナウィルス
感染拡大Transition to a Company withThree Committees model of2017
corporate
米国でトランプ政権発足 2020
governance
2016

2015
2013
2011
東日本大震災発生

2011

Great East Japan
Earthquake

2016
2015

日銀が｢量的･質的金融緩和」導入

2013

日銀がマイナス金利政策導入
2017

COVID-19 pandemic

Start of Trumpadministration in the US

Bank of Japan introduces negativeinterest rates

The United Nations adopts theSustainable Development Goals

Bank of Japan introduces quantitativeand qualitative monetary easing

2016

2020
Establishment of Custody
Bank of Japan
Establishment of MI Digital
Services

Introduction of in-house company system
Establishment of Asset Management One
Establishment of Mizuho Americas

2019
2013
Announcement of mediumterm business plan: One
Mizuho New Frontier Plan
In response to structural and regulatorychanges in the economy and society
in both Japan and overseas, aiming
for the new frontier of finance for the
coming era

2016
Announcement of mediumterm business plan:
Progressive Development of“One Mizuho”
Further development of the One Mizuho
Strategy by creating a new businessmodel as a financial services consulting
group based on the foundations ofoperational excellence and a customerfocused perspective

Announcement of
5-Year Business Plan
Transitioning to the next generationof financial services by building
new forms of partnerships with ourcustomers so that we can respondto their needs as the times change,
with the objective to build a stronger
and more resilient financial groupwhich our customers can depend onin the coming era
2020 Integrated Report18About Mizuho

Business domain

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

Banking

Trust banking

Mizuho Bank (MHBK)

Mizuho Trust & Banking (MHTB)

Mizuho Financial Group
Securities

Corporate & Institutional
Company

Global Corporate Company

Global Markets Company

Asset Management Company

Global
Products Unit

Research &Consulting
Unit
Other core groupcompanies

MizuhoAmericas1
1. US bank holding company, which is one of MHFG’s core group companies and MHBK’s subsidiaries.

19

Mizuho Financial Group

Mizuho Securities (MHSC)

Retail & Business Banking
CompanyAbout Mizuho Business domain(group aggregate, management accounting, rounded figures) (¥ billion)

Reference Net Business Profits by in-house company• Figures for each in-house company indicate Gross Profits + Net Gains(Losses) related to ETFs - G&A Expenses (excluding Non-Recurring Losses
and others) + Equity in Income from Investments in Affiliates - Amortizationof Goodwill and other items.
• MHFG’s consolidated figures include Consolidated Net Business Profits and
Net Gains (Losses) related to ETFs and others• FY2019 results use the FY2020 planned rate (USD/JPY 108)

Asset
management

Research &consulting

FY2019 results

FY2020 targets

Retail & Business Banking Company

12.0

(3.0)

Corporate & Institutional Company

246.0

222.0

Global Corporate Company

176.0

128.0

Global Markets Company

208.0

218.0

Asset Management Company

13.0

7.0

In-house company total

655.0

572.0

Group consolidated

672.5

570.0

Other core groupcompanies
MizuhoPrivate WealthManagement(MHPW)

Customers
Individual customers / SMEs /middle-market corporations
Large corporations / financial
institutions / public-sector entities
Americas / EMEA / East Asia /Asia & Oceania

Investors
AssetManagement
One

Investors

JTC
Holdings2
Mizuho ResearchInstitute (MHRI)3(planned for integration)
Mizuho Information &Research Institute(MHIR)3

MI Digital
Services4

2. Japan Trustee Services Bank absorbed JTC Holdings and Trust & Custody Services Bank in a merger and, on July 27, 2020, changed its trade name to Custody Bank of Japan.
3. We are planning to integrate Mizuho Information & Research Institute, Mizuho Research Institute, and Mizuho Trust Systems in April 2021.
4. We transferred part of the shares of Mizuho Operation Service to IBM Japan on June 30, 2020 and changed the trade name to MI Digital Services. MI Digital Services is a coregroup company, which we manage directly.

2020 Integrated Report20About Mizuho

Financial data

Historical data(¥ billion)

Consolidated gross profits1

2,241.3

Consolidated net business profits1

2,129.1

1,995.5

Profits attributable to owners of parent

2,072.8

1,827.7
Prior to recording
one-time losses2

872.5
670.9

699.7
603.5

576.5
538.0

603.1
408.3

672.5
448.5

581.8
96.5

FY2015FY2016FY2017FY2018FY2019

1. Including Net Gains (Losses) related to ETFs and others.
2. Prior to reflecting one-time losses of ¥695.4 billion recorded in light of structural reforms

Financial targets
Consolidated ROE1

Consolidated Net Business Profits1

Approx.
¥900 billion(¥ billion)
Prior to recording
one-time losses2

Approx. 7 - 8%

7.4%

Prior to recording
one-time losses2

672.5

603.1

5.8%

1.2%
408.3
FY2018FY2019FY2023

1. Excluding Net Unrealized Gains on Other Securities
2. Prior to reflecting one-time losses of ¥695.4 billion recorded in light ofstructural reforms

FY2018FY2019FY2023

1. Including Net Gains (Losses) related to ETFs and others
2. Prior to reflecting one-time losses of ¥695.4 billion recorded in light ofstructural reforms

Other key indicatorsC ommon Equity Tier 1 (CET1) Capital Ratio
target level*

Lower end of
the 9 - 10% range
8.8%

Reduction of cross-shareholdings*(¥ billion)-147.8Progress

1,419.8

1,272.0

49%

Reduction of¥300 billion

8.2%
March 31,2019

March 31,2020

*Basel III fully effective basis. Excluding Net Unrealized Gains on Other
Securities

21

Mizuho Financial Group

March 31,2019

March 31,2020

*Acquisition cost basis

March 31,2022

About Mizuho

ESG-related data

Environment
Amount of project finance with Mizuho as lead arranger

in the renewable energy sector(USD million)
2,417

1,560

SDG bond underwriting(¥ billion)

1,852

1,607

Sustainability bonds and social bonds
Green bonds

Japan

1,194

Outside Japan 38.0
216.6
25.9

51.7
2015

2016

2017

2018

2019

72.6

94.8

101.7

FY2018FY2019FY2018285.4

FY2019Japan: Underwriting amount of publicly offered bonds in Japan
Outside Japan: Sum of the amount of each deal divided by the number oflead underwriters, based on information from Dealogic

Source: Bloomberg New Energy FinanceSocialDiversity in corporate management
Percentage of management positions filled by women1
General manager equivalentManager equivalent and above
Supervisor equivalent and above
Percentage of management positions filled by employees hired
outside Japan2R ecognized under the Japan Institute of Information
Technology’s Information Technology Awards
64%

40%

43%

44%

24%
12%
4%

27%

28%

30%

14%
5%

15%
5%

16%
6%

2017

2018

2019

2020

Mizuho Smart Business Loans, Mizuho’s fintech lending
program using AI technology to support small- andmedium-sized enterprises

 otal as of July for four group companies in Japan: Mizuho Financial
1. TGroup, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities.

2. Employees
hired locally outside Japan as of March. Total for Mizuho
Bank through 2019 and for Mizuho Bank, Mizuho Trust & Banking, andMizuho Securities from 2020.

Social responsibility indices which include Mizuho (as of June 2020)
General index

ESG indicesselected by the
GPIF

Themed indices2020 Integrated Report22Message from the Group CFO

Supporting customers andcontributing to a swift economic
recovery by fulfilling ourfinancial intermediary functions,
we will enact finance structurereforms to transition to the next
generation of financial services

MakotoUmemiyaFinancial management principles amid anunprecedented crisis
The spread of the novel coronavirus (COVID-19) has halted the
movements of people and goods on a global scale and is having
a drastic negative impact on the global economy including
severe deterioration of consumer demand. Now, as the world
faces this unprecedented crisis, there are strong expectations
for financial institutions to respond to the rising financing needsof customers and fulfill our financial intermediary functions toenable a swift recovery for society and the economy.
We expect that the next one to two years will bring a challenging
earnings environment for Mizuho as well. Our first objective
is to reinforce our defenses and ensure disciplined control of
Credit-related Costs and expenses, and I believe it is important
to conduct proactive fiscal management that preempts changes
that could be on the horizon, just as we recorded additional
reserves for possible losses on loans in our fiscal 2019 financial
results.
As global markets undergo structural changes due tomegatrends including declining birthrate and an aging
population, digitalization, and globalization, we must implement

23

Mizuho Financial Group

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

structural reforms at Mizuho giving additional consideration to
the impact of COVID-19. We will steadily advance the transition
to the next generation of financial services through measures
including revising our business portfolio and reallocating
corporate resources.

Overview of fiscal 2019
In fiscal 2019, as the result of strong performance in bothcustomer and markets divisions, we achieved Consolidated
Net Business Profits (including Net Gains (Losses) related to
ETFs1 and others) of ¥672.5 billion, for a year-on-year increaseof ¥264.2 billion. Even after adjusting for losses recorded due
to restructuring our securities portfolio last fiscal year, this still
represents an increase of ¥69.4 billion.
We recorded ¥171.7 billion in Credit-related Costs including ¥80.4
billion in additional reserves for possible losses on loans from aforward-looking perspective in light of the impact that COVID-19
may have on our finances and based on the future outlook ofcertain loans. As for Net Gains (Losses) related to Stocks (notincluding Net Gains (Losses) related to ETFs1 and others), due toa drop in stock prices we posted ¥39.4 billion in unrealized losses

Message from the Group CFO

on securities (with readily determinable fairvalues), but recorded a ¥126.5 billion gain mainly
due to steady progress on reducing crossshareholdings.

By reallocating the corporate resources secured
through these initiatives to new businessdomains, business outside Japan, transaction
banking, and other focus areas, we aim to
improve risk & return and cost & return andaccumulate stable revenue streams as thefoundation for steady dividend payouts.

As a result of the above, we achieved Profit
Attributable to Owners of Parent of ¥448.5 billion,
reaching 95% of our initial fiscal year estimate of¥470 billion, an increase of ¥352 billion compared
to last fiscal year when we recorded impairment
losses on fixed assets.

 iscal 2019 Consolidated Net
F
Business Profits
(including Net Gains (Losses)
related to ETFs and others)

672.5

¥

1. Net Gains (Losses) related to ETFs (aggregate forMizuho Bank and Mizuho Trust & Banking) + Net Gainson Operating Investment Securities (Mizuho Securities
consolidated).
2. Excluding Unrealized Gains (Losses) on Other Securities

We are also making good progress on thefinancial targets and other objectives outlined
in our 5-Year Business Plan, which we launchedin fiscal 2019. As of the end of fiscal 2019 our
Common Equity Tier 1 (CET1) Capital Ratio
was 8.8%2 on a Basel III fully effective basis,
and is increasing steadily toward our goalof the lower end of the 9 – 10% range. Also,
regarding the reduction of cross-shareholdings,
through diplomatic discussions with clients wesuccessfully reduced ¥147.8 billion in crossshareholdings compared to the end of fiscal 2018,
marking 49% progress on our target of reducing¥300 billion in cross-shareholdings over the three
years to fiscal 2021. Additionally, as a financestructure reform initiative we are reducing thescale of our workforce, the number of branches
and offices in Japan, as well as expenses, andcurrently each of these plans remain unaffectedby the COVID-19 pandemic, with progress on
workforce and expense reduction in particular
exceeding the fiscal 2019 targets.

billion+¥264.2 billion (year-on-year)
108% of target

Outlook for fiscal 2020F iscal 2019 Profit Attributable to
Owners of Parent

At present we are unable to accurately predict
how widespread the impact of COVID-19 will
be or for how long it will pose a serious threat.
With this in mind, we have formed our fiscal
2020 business plan based on a scenario whichassumes that the economy will bottom out inthe first half of fiscal 2020, and enter a gradual
recovery lasting until the end of 2021.

448.5

¥

billion+¥352 billion (year-on-year)
95% of target

The negative impact of the pandemic will be
particularly severe this fiscal year, and weestimate earnings of ¥570 billion in Consolidated
Net Business Profits (including Net Gains(Losses) related to ETFs and others*), a reductionof approximately ¥100 billion year-on-year due tothe impact of interest rate cuts outside of Japanand a reduction in retail investment business,among other factors. We expect that the impact*Net Gains related to ETFs (aggregate for Mizuho Bankand Mizuho Trust & Banking) + Net Gains on Operating
Investment Securities (Mizuho Securities consolidated).

Progress on the 5-Year Business Plan
Financial targets

FY2020 targets
FY2019FY2023

Consolidated ROE1

5.8%

7 – 8%

Consolidated Net
Business Profits2¥672.5 billion

approx. ¥900 billion

Other key indicators
March 31, 2020-

CET1 Capital
Ratio38.8%

Lower end of the 9 – 10% range(target)Reductionof crossshareholdings4

Reduction of ¥147.8
billionReduction of ¥300 billion(end-FY2018 to end-FY2021)

FY2019FY2020Consolidated Net
Business Profits1¥672.5 billion¥570 billion

Credit-related Costs− ¥171.7 billion− ¥200 billion

Net Gains (Losses)
related to Stocks 2¥126.5 billion¥80 billion

Ordinary Profits¥637.8 billion¥400 billion

Net Income
Attributable to Mizuho
Financial Group3¥448.5 billion¥320 billion

1. Including Net Gains (Losses) related to ETFs and others
2. Excluding Net Gains (Losses) related to ETFs and others
3. Profit Attributable to Owners of Parent

1. Excluding Net Unrealized Gains (Losses) on Other Securities
2. Including Net Gains (Losses) related to ETFs and others
3. Basel III fully effective basis. Excluding Net Unrealized Gains (Losses) on Other
Securities
4. Acquisition cost basis

2020 Integrated Report24Message from the Group CFO

in terms of Credit-related Costs will be ¥200 billion, and as aresult, Profit Attributable to Owners of Parent is anticipated to fall
about ¥130 billion year-on-year to ¥320 billion.
The total amount of Credit-related Costs stemming from the
COVID-19 pandemic is estimated at ¥335 billion, with ¥135 billion
recorded in fiscal 2019 and an additional ¥200 billion estimatedfor fiscal 2020. The ¥135 billion recorded in fiscal 2019 includes
approximately ¥55 billion in reserves for possible losses onloans which were recorded as a preventative measure within
the scope of existing rules mainly due to concerns regarding thedeterioration of primarily Japanese clients’ financial performance,plus about ¥80 billion in reserves for possible losses on loans
recorded from a forward-looking perspective based on the future
outlook of certain credit exposures.
The estimated total of ¥335 billion in Credit-related Costs is
equivalent to only about 60% of those recorded in fiscal 2008,
when we recorded Credit-related Costs of ¥536.7 billion at thepeak of the financial crisis. As mentioned in the message fromthe Group CEO, the reason for this is that compared to the 2008
crisis which was financial in origin and had a severe downward
effect on the real economy, the soundness of the financial system

has been maintained throughout the current pandemic and thesmooth provision of financing is underpinning the real economy,
plus, the soundness of Mizuho’s credit portfolio has been greatly
improved since the financial crisis.
Here, I would like to explain the current status of our credit
portfolio. For loans to corporate clients, risk tolerance has
improved considerably due to clients accumulating capitaland liquidity. Additionally, our structured products portfolio,
which sustained a large loss during the financial crisis, is now
much more robust as we have revised management policy andstrengthened our risk management framework. For instance, theratio of loans which are equivalent to investment grade for realestate- and resource sector-related lending is high at about 80%
for each portfolio, and we have greatly reduced the underwritten
amount of LBOs compared to the time of the 2008 financial crisis.
Also, regarding securitization products, we are significantly
improving the soundness of our portfolio through measures
including limiting securitization products to those for which risk
can be controlled to an adequate degree.

Portfolio soundness

Mizuho’s borrowers

Liquidity1
September 30,
2019

¥

¥

224 trillion

Equivalent to investment grade2
September 30,
2007

47%

September 30,
2019

71%

Equivalent toinvestment
grade2

March 31,2020
approx.

80%

Commodity related(non-Japanese companies, upstream)3
Equivalent toinvestment
grade2

March 31,
2020
over

Securitization products

Non-Japanese LBOs
(underwritten amount)

Real estate related

September 30,
2007

133 trillion

Credit portfolio

80%

June 30,
2007

12.5 billion$

March 31,2020

0.7 billion$

Aircraft related4
Limited risk
exposure

March 31,2020$

0.25 billion

Foreign currency denominatedsecuritization products
December 31,
2007¥

1.5 trillion

Mizuho Financial Group¥

0.7 trillion

CLO: All AAA-rated5
A BS: All equivalent toinvestment grade
 o holdings of secondaryNsecuritized products

1. Total for corporate clients 2. Based on exposure according to internal rating
3. For oil and gas companies which are most vulnerable to impact from a drop in oil prices 4. Loans with residual value risk 5. External ratings from S&P

25

March 31,2020

Message from the Group CFO

Capital management policy

Tax initiatives

Cash dividends per share of common stock were ¥7.5 forfiscal 2019, matching our estimate at the beginning of the
fiscal year. Despite falling just short of our estimate for Net
Income Attributable to Mizuho Financial Group for fiscal 2019,
based on our shareholder return policy of maintaining thecurrent level of dividends for the time being while aiming
to strengthen our capital base further to enhance returns toshareholders at an early stage, we set the dividend amount in
anticipation of maintaining a certain level of profits, despite oursignificantly lower earnings estimates for fiscal 2020. We took
into consideration that if not for the forward-looking reserves
for losses on loans recorded in light of the COVID-19 pandemic
we would have achieved our earnings plan, and the fact that we
exceeded our CET1 capital ratio target for the end of fiscal 2019,
allowing us to start fiscal 2020 with a buffer.

In April of this year, we established a Tax Policy, which sets
forth a group-wide, uniform approach to tax matters to ensure
the appropriate fulfillment of tax liabilities, which is one of ourcorporate social responsibilities, and to sustainably increase
corporate value by establishing and enhancing our credibility
and reputation in the eyes of shareholders, investors, and all
customers across the globe.

Dividends for fiscal 2020 will be maintained at ¥7.5 per shareof common stock, unchanged from fiscal 2019. We anticipate
that our CET1 capital ratio will fall temporarily as risk-weighted
assets increase due to increased lending as we continue tofulfill our financial intermediary functions amid the COVID-19
pandemic, and due to the falling credit ratings of clients, but thiswill not have any impact on our shareholder return policy. We
will maintain the current level of dividends while accumulating
capital and aiming to enhance returns to shareholders at an
early stage.

Specifically, in addition to complying rigorously with the tax lawsof applicable countries and international tax rules such as the
Action Plan on Base Erosion and Profit Shifting*, we endeavor
to manage our tax costs appropriately by utilizing tax incentives
and other systems. We seek to build good relationships with tax
authorities through constructive dialogue. Furthermore, we willtake thorough internal measures to ensure we do not provide
customers with products and services where the sole aim is toachieve tax avoidance and income shifting which are against thespirit of tax laws.
*Base Erosion and Profit Shifting (BEPS): Tax planning strategies utilized bymultinational companies to leverage gaps in national and international tax rules
and artificially shift their profits to avoid taxation.

Cash dividend per share of common stock
Interim cash dividend (estimate)¥3.75

Fiscal year-end cash dividend (estimate)*¥3.75

Fiscal year dividend (estimate)¥7.5*The fiscal year-end cash dividend amount shown here does not take into accountthe share consolidation planned for October 1, 2020. This amount will be ¥37.5
following the share consolidation.

Outlook for Common Equity Tier 1 (CET1) Capital Ratio (Basel III fully effective basis)Target CET1 capital ratio
Lower
end of the

9.0%

9 – 10%Investment in growth /shareholder returns

8.8%

range

Excluding Net
Unrealized
Gains on Other
Securities

Progresson capital
accumulation
exceeded
initial target

8.0%

Improve the CET1 capital ratio throughnormalization of risk-weighted
assets and accumulationof capital
Level at which stressresistance is secured

Estimate at thelaunch of the
5-Year Business Plan

Temporary downward pressure due toincrease in risk-weighted assets

Maintain current level of dividends

Transition to capital utilization phase2020 Integrated Report26

Message from the Group CFO

Enhancing engagement with shareholders
and investors
In recent years, the relationship between companies and theirshareholders and investors is changing, with the interests ofshareholders and investors expanding to include not only
business strategy and capital management policy, but also thesustainable improvement of corporate value from a broad rangeof perspectives such as environmental sustainability. In light of
this, we at Mizuho are making efforts to enhance engagement aswell as our disclosure.

dividends and our capital management, and furthermore aims toenhance constructive dialogue with shareholders and investors sothat we can gather opinions with regard to dividend decisions.
Also, from the perspective of enhancing engagement
opportunities with investors, in addition to holding presentations
on our financial results for institutional investors, IR Day, which isa briefing about the business strategies of each in-housecompany, and IR Select, which is an event covering specificstrategic topics, we have also continued holding presentations forindividual investors via online video linkup since 2015.

As one part of these efforts, at the Ordinary General Meeting of
Shareholders held in June of this year, we resolved to conduct ashare consolidation as well as amend the Articles of Incorporation
regarding organizations that decide dividends from surplus. This
share consolidation will enable us to set the amount of dividend
per share more precisely, which will also enhance the flexibility of

We will continue striving to enhance our disclosures while
proactively engaging with shareholders and investors.

The year in engagement

April
2019

Fiscalyear
results

June

SeptemberInterimresults

Visits to overseas investors

Announcement of
the 5-YearBusiness PlanIR
eventsGeneral Meeting of Shareholders

Financial results presentation

IR DayPresentation for individual investors

Presentation covering the principlesof the 5-Year Business Planannounced in May 2019, financial
targets, and our detailed strategy forachieving the targets.

The head of each in-house company
gave presentations covering their inhouse company’s strategy pertaining
to the 5-Year Business Plan. An
outside director session was also
held.

Presentation covering the principlesof the 5-Year Business Plan andMizuho’s initiatives in a format
geared for individual investors.
Approximately 2,100 investors viewed
the presentation including those whoviewed the recording of the event.

FY2019Meetings with institutional investors

420 (includes 120 overseas investors)

27

Mizuho Financial GroupBy senior management

By IR Dept.

(includes 70
overseas investors)(includes 50
overseas investors)

230

190

(total number, rounded)Message from the Group CFO

Enhancing disclosure

Initiatives pertaining to the General Meeting of Shareholders

Based on feedback from institutional investors andanalysts, we are working to enhance disclosure of
information including in-house company data forfinancial results presentations and the impact of
COVID-19.
We have also disclosed information on ourstrengthening of sustainability initiatives, which are ofincreasing interest to investors.
We have also created a “Financials and Presentations”
section on our website to make it easier for
shareholders and investors to access a library of our
financial results and IR materials.

December

April
2020

As the General Meeting of Shareholders is an
important engagement opportunity to hold dialogue
directly with shareholders, we at Mizuho are driving
various related initiatives.
In particular, in addition to enhancing communications
including providing the convocation notice earlier
and providing a video feed of the meeting including
the question and answer session, we are also
implementing measures such as enabling the exercise
of voting rights via mobile devices. Also, due to the
COVID-19 pandemic this year we implemented an
online video feed in addition to the on-site meeting.

Fiscalyear
results

June

Visits to overseas investors
General Meeting of Shareholders

Financial results presentation

Financial results presentation

IR Select

At our financial results presentation in
November, we covered our progressover the six months following the startof the 5-Year Business Plan.

In addition to expanding disclosure
based on feedback from investors,
this presentation covered our
performance outlook and strategy inlight of the COVID-19 pandemic.

At this event we covered ourstrengthening of sustainability
initiatives. An outside director session
was also held.

In fiscal 2020, in consideration of the spread of COVID-19, we areholding events and meetings with institutional investors online.

2020 Integrated Report

28

29

Mizuho Financial GroupOur strategies for creating value

Progress on the 5-Year Business Plan�� P. 31
Business strategies by company/unit
Retail & Business Banking Company� P. 33
Corporate & Institutional Company� P. 35
Global Corporate Company������ P. 37
Global Markets Company������� P. 39
Asset Management Company���� P. 41
Global Products Unit���������� P. 43
Research & Consulting Unit������ P. 45
Digitalization������������������ P. 47
Employee engagement����������� P. 49
Sustainability����������������� P. 53

2020 Integrated Report30

Our strategies for creating value

Progress on the 5-Year Business Plan

5-Year Business Plan
Our group’s 5-Year Business Plan for fiscal 2019 through 2023 is focused on transitioning to the next generation of financial
services—building new forms of partnerships with our customers so that we can respond to their needs as the times change. Thisbusiness plan aims to build a stronger and more resilient financial group which our customers can depend on in the coming era.
In addition to the megatrends such as digitalization, the declining birthrate and aging population, and globalization, the global
spread of COVID-19 has triggered major, rapid changes in people’s lifestyles and the state of the economy and society. In order tobe a company that provides new value that goes beyond the conventional boundaries of finance in the coming era, we will steadily
implement forward-looking structural reforms in three interconnected areas—business, finance, and corporate foundations—as wetransition to the next generation of financial services.

Three areas of structural reform
We are implementing business structure reforms which draw on Mizuho’s strengths in order to address structural issues in theeconomy, industry, and society in addition to implementing finance structure reforms to transition to more flexible business andrevenue structures to respond to changes in the business and competitive environments. We are also implementing corporate
foundations reforms to support the continued competitive advantage of our business.
Business structure reforms
In response to structural changes in customer needs stemming from megatrends including digitalization, the declining birthrate andaging population, and globalization, we will leverage the strengths that we have cultivated thus far to the maximum extent to go
beyond the conventional boundaries of finance and provide optimal services and solutions. We are also working to expand ourbusiness domains at an early stage in response to the impact of COVID-19 and in anticipation of changes that individuals andbusiness will face in a post-COVID-19 landscape.
In the wake of the COVID-19 pandemic, concerns regarding health and the impact on lifestyles is driving increased retail customer
interest in asset formation to prepare for the future, as well as family asset succession services, and through proposals forinvestment, succession, and other services, we are supporting the secure, worry-free life planning of our customers. We are also
expanding the range of services that our customers can complete entirely online and enhancing our remote business arrangements
in response to the accelerating digitalization of transactions. Furthermore, we are promoting the use of Mizuho Wallet and J-Coin
Pay for cashless transactions.

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

Basic policy

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

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

Key strategy

Passionate & Professional

Draw on the strengths that Mizuho has cultivated thus far

1

Customer base, network,
trustworthiness &dependability

2

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

3

Approach business as a
unified group

Accelerate our digitalization initiatives and proactive collaboration with external partners

Our objective

31

Mizuho Financial Group

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

Our strategies for creating value Progress on the 5-Year Business Plan

For corporate clients, in addition to supporting smooth financing, we are supporting the revision of business strategies andformulation of growth strategies looking ahead to a post-COVID-19 world, and supporting other corporate needs including businessreorganization and investment in growth areas, M&A, and business succession. With a deep understanding of the current
circumstances and viability of client businesses, we are accelerating strategic investment in equity and quasi-equity financing which
are one part of the strategy outlined in our 5-Year Business Plan. Also, through repeated discussions with clients on the topic ofstrategy, we are supporting clients in both financial and non-financial aspects. Leveraging the strengths of our Global 300 strategy,
which focuses on the top global companies in each sector, we are securing opportunities for multifaceted business at a steady pace.
Reference For details on the specific business structure reforms, refer to the in-house company sections in this report (startingfrom P33)
Reference For our digitalization initiatives in response to new customer needs stemming from the COVID-19 pandemic, refer to	
the section beginning on P47
Finance structure reforms
Reference For the finance structure reforms refer to the Message from the Group CFO beginning on P23
Corporate foundations reforms
In July 2019, we completed the migration to our new core banking system, MINORI, which we have been addressing as one of our
top management priorities. Utilizing this new IT system, we have embarked on initiatives to transform retail locations into nextgeneration branches, aiming to streamline operations at branches and strengthen face-to-face consulting capabilities among othermatters. In addition, we have made steady progress on the transition to a new HR strategy, including introducing internal/external
concurrent assignments and part-time work. Furthermore, we worked to accelerate the unification of group company operations,
including expanding dual-hat appointments of directors and executive officers between the holding company and the groupcompanies.
This year we have additionally decided to reorganize and merge subsidiary companies representing several of Mizuho’s strengths,
namely research, consulting, and IT systems. By organically combining and merging the functions of these companies to create acore company outside of the realm of finance business, we are aiming to enhance our ability to provide new value beyond theconventional boundaries of finance. Also, construction of our new Marunouchi office building will be completed this year. The
addition of this new office will allow us to consolidate and reorganize the Head Office and business promotion functions for Mizuho
Bank, Mizuho Trust & Banking, and Mizuho Securities, enabling us to strengthen frameworks for unified group operations. Througharrangements such as free address seating we will promote flexible working styles at the new office and foster an environment thatencourages employee communication and raises productivity.
Reference For details on our new HR strategy, which is key for transitioning to the next generation of financial services, refer to	
the Employee engagement section starting on P49

Reference Quantitative overview of our fundamental structural reforms

We are expanding our fundamental structural reforms initiatives announced in November 2017, and are promoting the early
implementation of these measures under our 5-Year Business Plan. In fiscal 2019 we achieved steady progress toward ourtargets.
FY2019

Expenses

Japanesebranch network

Workforce(estimates)

Results-3,000 people-4,000 people

Reduction of approx.

19,000 people

Approx. 80,000 people

Reduction of approx.

130 branches(compared to the end of March 2017)

Reduction excl. amortization expenses
related to the new core banking system

Reduction of approx. ¥140 billion¥1.47 trillion1(compared to FY2017 )2

FY2023

FY2024FY2026-8,000 people-14,000 people -19,000 people-100 branches-130 branches-1,000 people(compared to the end of March 2017)

Approx. 500 branches

FY2021

Target-38 branches-38 branches

Progress toward target- ¥58 billion

3- ¥89 billion3- ¥120 billion- ¥140 billion- ¥31 billion

1. Group aggregate. New management accounting rules were applied from FY2019. Amount prior to change: ¥1.45 trillion.
2. Compared to estimate for FY2017 at the announcement of the fundamental structural reforms (Nov. 2017).
3. Excluding the effect of foreign exchange.

2020 Integrated Report32

Our strategies for creating value

Retail & Business Banking Company

Individual customers

SMEs

Middle market corporations

To realize the wishes, hopes,
and growth of our customers,
we will aim to be a partner thathelps retail customers design
their lives, and a strategic
partner for corporate clients’
growth strategy and businesssuccession needs.

Naofumi Fuke

Masahiro Otsuka

Co-Head of Retail &Business Banking Company

Head of Retail & Business Banking Company

Basic policy
We will aim to transition to a more stable revenue base throughchannel optimization and expansion into new business areas.
Our basic policy is to realize the wishes and hopes of our retailcustomers and the continued growth of our corporate clients,
working to build a sustainable retail business which is
responsive to the needs of our customers in this new era. As we
implement structural reforms in three interconnected areas—business structure, finance structure, and corporate
foundations—by focusing our investment of corporate
resources in a way that enables us to better respond to new
business and customer needs, such as alliances with othercompanies to expand data business, cashless transactions, andother services, we will create new value in both finance andnon-finance domains.

Business environment and challenges
business environment. It is essential that we fully respond tothese changing needs and advance initiatives to address theaccelerating use of online communication. Amidst thesechanges in the business environment, we must seek to takeadvantage of these changes in customer needs in order tocreate new business opportunities while also allocating our
finite corporate resources in a way that enables us to establish
a stable revenue base.

As structural changes in customer needs accelerate, recently
society as a whole has been undergoing considerable changes
including changes to people’s lifestyles and the increasing
adoption of remote technology. In such times, retail customers
are in need of support for designing their lives in an era ofincreased longevity. And among SMEs and middle market
clients, there is increasing demand for solutions in areas suchas business continuity and support, in light of the uncertain

Trends in performance
In fiscal 2019, while challenges such as the decline in retailinvestment earnings due to deteriorating market conditions still
remain, our reduction of the number of branches and otherefforts made it possible to reduce expenses more than originallyplanned. As a result we achieved ¥16.5 billion in Net BusinessProfits—the highest since introducing the in-house company
system in fiscal 2016—marking a sure step in the right directionin the first fiscal year of the structural reforms. We will continue
implementing three types of structural reform in order to reduce
fixed costs and expand our stable revenue base.

(Group aggregate, management accounting, rounded figures, ¥ billion)

FY2019FY2018FY2020

Performance

PerformanceYear-on-year

Targets

Gross Profits

705.9

673.6

(32.4)

642.0

Net Business Profits

10.1

16.5

6.5

(3.0)

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 management accounting rules.

33

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

Key strategies
Related SDGs

Strengthen consulting

partner for SMEs and middle market clients as they seek tomaintain or expand their businesses in an uncertain businessenvironment. By offering sophisticated solutions as a unitedgroup, we are supporting our clients’ sustainable growth andbusiness succession needs.

We will aim to be a partner that helps retail customers design
their lives in an age of longevity. We provide consulting on
asset formation/management and asset succession to match
each individual customer’s unique goals, considering theirfinancial objectives and future outlook according to theirdifferent stages in life. We are also aiming to be a strategic

Related SDGs

Build an optimal channel network
In light of changes in customer needs and the increasing
adoption of remote technology, we will position our mobile andother related services as the primary channels and expand theconvenient digital services we offer. At the same time, we willtransform branches into consulting spaces offering one-stop
service for banking, trust banking, and securities, as well as
remote consultations, allowing us to respond to a diverse rangeof customer consultation needs.
Related SDGs

Expand into new business domains
Utilizing open collaboration and the adoption of advanced
technology through alliances with other companies, we are
creating new value beyond the traditional boundaries of financein fields such as online lending, cashless payments, and thedata business in order to formulate a new business model

Number of investment product users(million users)

2.65

2.58

aligned to the ways that society and our customers arechanging. By combining the non-finance mobile-based servicesof tech companies with our financial capabilities, we will also
work to expand transactions with new customer demographics.

Asset inflows at securities companies

Business succession cases (No. of companies)(¥ trillion)

FY2017

2.72

1,716

FY2018FY2019

1.4

1,212

1,369

0.9
0.1

FY2017
results

FY2018results

FY2019results

Mizuho Securities(Retail & Business Competitor
A
Banking Division)(0.4)
Competitor
B

CompetitorC

FY2017
results

FY2018results

FY2019results

Prepared based on financial results disclosures of therespective companies.

Highlights

Initiatives for smooth financing

We have established a fund of over ¥1 trillion in order to fully respond to the financing needs ofcustomers impacted by COVID-19 in this uncertain business environment. Furthermore, as
demand for advanced medical technology increases amidst the pandemic, we have establishedthe ¥10 billion Mizuho Life Science Fund to address the financing needs of companies involved in
the development of state-of-the-art medical technology.

Highlights

Developing the next generation of financial services tailored to new lifestyles

In June 2020, Mizuho and SoftBank agreed to form a strategic alliance to develop the next
generation of financial services tailored to new lifestyles. Through this alliance, SoftBank andMizuho will strengthen collaboration in lending, mobile trading, and payment services, create thenext generation of financial services combining finance business with lifestyles that are centeredon mobile devices, and support the realization of new lifestyles for customers by providing new
highly convenient online services.

2020 Integrated Report34

Our strategies for creating value

Corporate & Institutional Company

Large corporations

Financial institutions

Public-sector entities

Aiming to be the clear No. 1
business finance partner clients
turn to in the corporate &institutional sector by providing
financial and non-financial
solutions for business challenges.

Seiji ImaiHead of Corporate & Institutional Company

Basic policyin order to act as a business finance partner co-creating value
and operating businesses in partnership.

We provide tailored solutions for diverse client needs by
combining and drawing on top-class industry and products
knowledge, consulting capabilities, risk-taking capabilities, andother strengths.
Additionally, as industry structures undergo major changes, weare providing not only traditional functions such as banking,trust banking, and securities but also working together withclients to create and share risk for new business opportunities

Through comprehensive support for the strategic managementof Japan’s leading large corporations, financial institutions, andpublic sector businesses, we are aiming to contribute to thesustainable growth and development of industry, the economy,
and society.

Business environment and challenges
As public awareness of the SDGs and ESG topics increases,
there are higher expectations that companies create nonfinancial value in addition to financial value.
Also, as a result of COVID-19 causing discontinuous change inthe economic environment, the structural issues facing
companies are manifesting earlier than anticipated and people’s
perspectives and behaviors are changing, which is likely tosuddenly accelerate the transformation of industrial structures.

The future competitiveness of not only Japanese companies but
Japanese industry as a whole hinges on how adeptly thesechanges are addressed. Accordingly, we understand theimportance of providing timely financial and non-financial
solutions as our clients’ No. 1 partner.

Trends in performance
In fiscal 2019 our earnings decreased in comparison to therecord-high earnings recorded in fiscal 2018. However, throughcalculated risk taking, increased lending income, and strong
growth in non-interest income in areas such as trust banking
and securities, we were able to achieve our initial Net BusinessProfits targets. In fiscal 2020 there is increasing uncertainty inthe business environment due to the impacts of COVID-19 andso we expect income and profits to decline. However, we will
aim to achieve the targets of the 5-Year Business Plan bysteadily implementing key strategies.
(Group aggregate, management accounting, rounded figures, ¥ billion)

FY2019FY2018FY2020

Performance

PerformanceYear-on-year

Targets

Gross Profits

473.4

462.4

(11.0)

437.0

Net Business Profits

268.2

248.9

(19.3)

222.0

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 management accounting rules.

35

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

Key strategies
Related SDGs

Expand discussions with clients’ senior management

Through the Corporate Strategy Advisory Department, in
addition to collaboration with the Research & Consulting Unit,
we are continually holding in-depth dialogue with clients’ senior
management, aiming to provide support for strategy level
decision-making as well as formulating specific financial andnon-financial solutions.

We newly established a Corporate Strategy Advisory
Department in order to further expand the range of discussions
we hold with clients at the senior management level in order to
respond to their increased interest in creating value from bothfinance and non-finance perspectives.

Related SDGs

Adapting to the situation during and after COVID-19

means. Additionally, as industries undergo structuraltransformation and clients seek to adapt their businessportfolios and restructure their supply chains, we will provide
high level consulting and intermediary functions, including inreal estate and M&A.

In addition to responding to the current rise in clients’ need tosecure cash flow, in light of the potential for prolonged impacts
from the pandemic, we will proactively support clients’ capitalbase expansion needs that are likely to arise going forward,
through mezzanine finance, equity underwriting, and other

Related SDGs

Enhance our business base

employees to develop knowledge in a range of sectors andproducts. Additionally, we are further optimizing our risk
management framework and business portfolio strategy to best
fit the direction we are taking going forward.

We are aiming to enhance our business base in order to achievesustainable growth and ensure that we can adapt to changes inthe environment. Specifically, we are strategically developing
personnel through collaborating with other in-house companies
and units on medium- to long-term job rotations which enable

Total equity
Total Total
equityunderwriting
equityunderwriting
underwriting
worldwide
worldwide
worldwide(rank)(rank) (rank)(underwriting(underwriting(underwriting
amount)amount)amount)Domestic
Domestic
straight
Domestic
straight
bonds
straight
bondsbonds(rank)(rank) (rank)(underwriting(underwriting(underwriting
amount)amount)amount)
1
2

4

4

4

4

4

4

3
4

3

2

1

1

1

1

M&A amount
M&AM&Aamount(dealsamount(dealsrelated(dealsrelatedto related
to to(rank) (rank) (rank)
JapaneseJapanesecompanies)
Japanesecompanies)
companies)
1

1

2
3

3
5

FY2017FY2017FY2017FY2018FY2018FY2018FY2019FY2019FY2020FY2019FY2020
FY2020resultsresults
results
resultsresults
results
resultsresults
targets
resultstargets
targets

Highlights

FY2017FY2017FY2017FY2018FY2018FY2018FY2019FY2019FY2020FY2019FY2020
FY2020resultsresults
results
resultsresults
results
resultsresults
targets
resultstargets
targets

5

5
6

3

3
5

6

5

5

6

FY2017FY2017FY2017FY2018FY2018FY2018FY2019FY2019FY2020FY2019FY2020
FY2020resultsresults
results
resultsresults
results
resultsresults
targets
resultstargets
targets

A ground-breaking multi-airport concession

Mizuho was selected as a mandated lead arranger as part of a consortium for the project financeof the largest airport concession in Japan, the Hokkaido Bundled 7 Airport Concession Project.
The seven airports included in the project are essential to Hokkaido’s transportation infrastructure,and consolidating the operations of these airports is expected to spur economic activity within theprefecture. We at Mizuho will continue to draw on our knowledge of finance and public-private
partnerships, working together with diverse stakeholders in order to contribute to regional
revitalization in Japan.

Highlights

Mizuho Eco Finance

Mizuho Eco Finance is a financial product tied to environmental assessment, by which we provide
financing to clients who meet a certain minimum score based on our scoring system. The scoring
system utilizes an environmental assessment model developed by Mizuho Information &Research Institute to evaluate client initiatives and benchmarks via a globally accepted
environmental verification and evaluation program (e.g. endorsement of the TCFD andcommitment to SBTs).
Launched in June 2019, we have provided this product to a range of clients, including thoseshown to the right. At Mizuho, we are working as a united group alongside our clients to promotesustainability.

2020 Integrated Report36Our strategies for creating value

Global Corporate Company

Americas

EMEA

East Asia

Asia & Oceania

We aim to be a strategic partner
leveraging our global network andseamless financial solutions spanningbanking, trust banking, and securities
to support our clients’ global businessdevelopment.

Hiroshi Nagamine
Head of Global Corporate Company

Basic policy
As a strategic partner supporting our clients’ global businessdevelopment, we will leverage our expansive network in highgrowth Asian economic zones and our presence in the attractive
US capital markets to provide comprehensive financial solutions
to clients in each region.

factors, including the external regulatory environment and the
procurement of non-JPY currency, and provide clients withsophisticated financial services, making steady efforts to securebusiness opportunities related to changes in trade flows andindustry reorganization in a post-COVID-19 era.

We will build a stable and profitable business portfolio toenable sustainable growth while being aware of constraining

Business environment and challenges
The global economy is facing an unprecedented crisis due todeteriorating demand and a worsening real economy as a resultof the COVID-19 pandemic. However, countermeasures weresuccessfully implemented by national governments and central
banks, and the stability of the financial system has been
maintained. The Global Corporate Company continues tosupport our clients and the economy by fulfilling our financial
intermediary function with calculated risk taking.

Also, the structural challenges that we previously identified,including increasing compliance costs pertaining tointernational regulations and non-JPY currency liquidity
management, remain just as important as before. We willcontinue initiatives to increase the earnings power of ourcurrent business base, improve our cost structure, and optimize
our business portfolio by focusing on core competencies.

Trends in performance
In fiscal 2019, we recorded strong Net Interest Income as aresult of steadily capturing financing needs of clients aroundthe world, including a large-scale financing deal with aJapanese company operating outside Japan. We also expanded
our non-interest income through efforts in US capital markets

and by strengthening transaction banking. Furthermore, as aresult of stringent cost control, we were able to achieve ourtargets for both Gross Profits and Net Business Profits. Goingforward, we will steadily implement our key strategy and aim toachieve our targets for the 5-Year Business Plan.

(Group aggregate, management accounting, rounded figures, ¥ billion)

FY2019FY2018FY2020

Performance

PerformanceYear-on-year

Targets

Gross Profits

400.2

417.8

17.5

384.0

Net Business Profits

169.2

178.7

9.5

128.0

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 management accounting rules.

37

Mizuho Financial GroupOur strategies for creating value Global Corporate Company

Key strategies
Related SDGs

Enhance current business areas

for ancillary transactions via our Global 300 strategy, we havebuilt up a stable revenue base. Going forward we will pursue
revenue streams with upside potential by enhancing our current
business base.

Thus far we have leveraged our global network to provide
consulting services to Japanese corporate clients operating
outside of Japan, and by focusing on about 300 blue-chip
corporate groups worldwide having stable credit and potential

Related SDGs

Expand into new business domains

Also, mainly leveraging our strength of debt capital market
business in US capital markets, we will increase our noninterest income by expanding our client base and productofferings.

We will raise our transaction banking capabilities in Asia andstrengthen our client relationships in US capital markets. We
will also aim to expand our transaction banking income bycapturing capital flows in the high-growth region of Asia, with
an awareness of changes to supply chains in the wake of the
COVID-19 pandemic.

Addressing structural issues
In light of constraints including the international regulatoryenvironment and non-JPY currency procurement, by shifting
corporate resources from areas with little potential for profit to
new business areas and high-profitability businesses, we will
increase the quality of our business portfolio.

League tables

In addition, as an initiative to improve our cost structure, byconsolidating operations, utilizing technology to streamline
operations, and optimizing costs outside of Japan, we willfurther strengthen our framework to ensure our stable provisionof financial services even in times of crisis such as the COVID-19
pandemic.

Transaction banking

No. 10 No. 8 No. 10(excluding US banks)(No. 4)(No. 2)(No. 4)

Americas LCM2

No. 10 No. 7

No. 7(excluding US banks)(No. 3)(No. 3)(No. 2)

1. Bonds issued by investment-grade companies,
bookrunner basis
Source: Dealogic
2. Loans issued by investment-grade companies,
bookrunner basis
Source: Refinitiv

Highlights

Gross Profits

Average annual
growth rate
15.1%

FY2017 FY2018 FY2019
Americas DCM1

Expense ratio(¥ billion)

73.2%

Expenses(¥ billion)

Expense
ratio

59.4%
59.6%

FY2017
results

FY2018results

FY2019results

FY2017
results

FY2018results

FY2019results

Note: This data is based on FY2019 management
accounting rules.

Results yielded by our Global 300 strategy

Leveraging Mizuho’s financial consulting capabilities, we acted as a lead arranger for one of thelargest syndicated loan arrangement and bond underwriting deals in Central America for aparastatal enterprise in the region.
We secured this deal as a result of putting the Global 300 strategy into practice, adopting a
focused strategy for a non-Japanese company and steadily building a business relationship withthe client including relationships with their senior management. We will continue our endeavors
to increase Mizuho’s presence in global markets.

Highlights

ESG initiatives

Mizuho signed a facility agreement and served as the sole arranger for a sustainability-linked
cross-border syndicated loan to provide financing to a Thai company. With the exception ofJapan, this was the first deal in Asia to incorporate the assessment of ESG initiatives as part of across-border syndicated loan. We will continue proactively providing a wide range of solutions,
including advice and financing support, to companies that promote ESG topics.

2020 Integrated Report38Our strategies for creating value

Global Markets Company

Investors

As a partner with expert knowledgeof market mechanisms and theability to draw on a range ofintermediary functions, we willfurther integrate our banking, trust
banking, and securities capabilities
to offer the best products andservices for our clients’ varied
needs.

Masatoshi Yoshihara

Yasuhiro Shibata

Co-Head of Global Markets Company

Co-Head of Global Markets Company

Basic policy
our market presence, as part of maintaining our status as one ofAsia’s major players in global markets.

The Global Markets Company engages in sales and trading(S&T) in order to provide clients with market product-based
solutions, and we also conduct banking operations, including
asset and liability management, securities investment, andother related activities.
We have set out a basic strategy to develop a framework foroffering optimal products and services, as well as to strengthen

In our S&T operations, by optimizing our global network andproducts framework, we will draw on a broad range ofintermediary functions. In our banking operations, we will
enhance the sophistication of our flexible ALM and portfolio
management while maintaining a focus on achieving a balance
between realized gains and unrealized gains/losses.

Business environment and challenges
According to projections from the International Monetary Fund,the immense impact of the global outbreak of COVID-19 willcause global economic growth in 2020 to be -4.9%, representing
a significant contraction. Global financial markets are seeing arise in risk aversion, while around the world governments andcentral banks are implementing economic stimulus and liquidity
measures in an attempt to stabilize markets and rein in
economic uncertainty. These factors have created an extremely
challenging investment environment. In addition, the structureof the market appears to be undergoing considerable changes

due to the tightening of global financial regulatory standards,
the emergence in financial markets of algorithmic trading andpassive funds, and other trends.
In this environment, we will strive to consistently respond to
our clients’ increasingly varied risk hedging needs andinvestment needs. At the same time, in our banking operations,
we will enhance the sophistication of our ALM and portfolio
management through flexible asset allocation.

Trends in performance
We made solid progress on our various projects and accurately
accounted for market fluctuations in our ALM and portfolio
management. As a result, our fiscal 2019 Net Business Profits
came to ¥198.9 billion, exceeding our target for the first fiscal
year of the 5-Year Business Plan. Going forward, in our S&T
operations, we will complete our strategy for integration of ourbanking and securities operations and, in doing so, realize

strategic effects and pursue efficiency. In our banking
operations, we will improve our fundamental earnings power,
maintain our early warning indicator management, and apply
high-level market analysis to manage our portfolio flexibly inline with changes in the market environment. Through these
efforts, we expect to achieve Net Business Profits of ¥218 billion
in fiscal 2020.

(Group aggregate, management accounting basis, rounded figures, ¥ billion)

FY2019FY2018FY2020

Performance

PerformanceYear-on-year

Targets

Gross Profits

192.4

410.1

217.8

432.0

Net Business Profits(17.4)

198.9

216.3

218.0

1. Gross Profits and Net Business Profits include Net Gains Related to ETFs.
2. Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 management accounting rules.

39

Mizuho Financial GroupOur strategies for creating value Global Markets Company

Key strategies
Related SDGs

Advance global management

through our commercial banking business to further focus onand expand our securities business. In doing so, we will
facilitate the realization of a positive cycle of funding between
financial market participants and further raise our global market
presence.

We will improve our price competitiveness and ability toprovide solutions by completing the integration of banking andsecurities bases in each region and strengthening global
collaboration between banking and securities services. We will
also leverage the broad client base that we have developed

Related SDGs

Enhance the sophistication of our ALM and portfolio management

realized gains and unrealized gains/losses and make investment
decisions with consideration for ESG areas and the SDGs. With
respect to ALM, we will positively contribute to Mizuho’s overallbusiness strategy through robust balance sheet management
supported by more global and efficient cash flow operations
and diversified funding sources.

We will strengthen our risk-taking capabilities both byenhancing our early warning indicator management toanticipate changes in market conditions in advance and byenhancing the sophistication of our asset allocation. While
paying attention to changes in the global economic andinvestment environment, we will engage in portfolio
management with a focus on achieving a balance between

Related SDGs

Build markets infrastructure and develop digital innovation professionals
In order to continue providing high quality services to ourclients in the future, we are allocating our corporate resources
strategically towards building next-generation trading rooms,
market IT systems, and market back offices in line withtechnological advancements. In this way, we are upgrading our

infrastructure, reducing our costs, and maintaining andheightening our competitiveness. Moreover, we are improving
our employees’ digital literacy and supporting the growth anddevelopment of professionals with a high level of expertise inline with our new HR system reforms.

Volume of Asian/emerging market
currency transactions(With FY2018 results as 100)

Sales & trading-related revenue(With FY2018 results as 100)Volume of interest rate derivatives(With FY2018 results as 100)

100

100

102

103

82

85
144

164

100

FY2018results

FY2019results

Internal management accounting basis

Highlights

FY2020targets

FY2018results

FY2019results

FY2018results

FY2020targets

Internal management accounting basis

FY2019results

FY2020targets

Internal management accounting basis

Joint development of IT system applying cutting-edge technology tochart analysis

In the data analysis practicum program of the Data Scientist School in the Graduate School ofInformation Science and Technology at the University of Tokyo, the graduate school, Mizuho Bank,and Mizuho Information & Research Institute developed an algorithm employing deep learning to
uncover similarities in the chart shapes of recent and past time periods. The algorithm analyzes
charts in almost the same way human beings do and enables quicker analysis than human beings
can perform. Mizuho Bank has already begun using the algorithm in our market operations.

Highlights

Development of autoquote system for Japanese Government Bonds

With electronic trading accounting for an increasing share of Japanese Government Bond trading
volume, Mizuho Securities developed a system to automate quotes (autoquotes) for electronic
trading inquiries and began using it for trades that fulfill certain conditions. By allowing for rapid
quote provision, autoquotes are improving convenience and operational excellence. Goingforward, we will continue to develop and enhance such functions and aim to further secure ourcompetitive advantage.

2020 Integrated Report40

Our strategies for creating value

Asset Management Company

Investors

Achieving medium- to long-term growth of ourasset management business and contributing to
the proactive investment of financial assets inJapan by providing solutions and support forcustomers’ medium- to long-term asset
formation.

Masamichi Ishikawa
Head of Asset Management Company

Basic policyof changes in the business environment arising from COVID-19,
we are providing retail investors with support for medium- tolong-term asset formation and providing institutional investors,
such as pension funds, with solutions in order to contribute to
the proactive investment of financial assets in Japan andachieve medium- to long-term growth in our asset managementbusiness.

By strengthening our investment capabilities and ability toprovide solutions in order to enhance the added value provided
by our asset management business, Mizuho Bank, Mizuho Trust& Banking, Mizuho Securities, and Asset Management One
work together to provide products and consulting services
which meet customers’ ever changing needs. Also, we aretransforming our business processes using digital innovation inorder to build an effective and advanced business base. In light

Business environment and challenges
capabilities are required to respond to the increasing
diversification of pension plans and investment needs. The
investment environment continues to be challenging due tonegative interest rates, and COVID-19 has caused significant
market volatility, making it difficult to secure returns. Under thisenvironment, the expectations for the role of asset managementcompanies are greater than ever.

The asset management business is greatly influenced bychanges in customer needs and the markets. In this age of
longevity, retail investors are facing an uncertain environment
going forward and require access to a wealth of information
and a range of investment products and services to assist withasset formation for the future. Additionally, for pension funds
and other clients who play an important role in people’s ability
to prepare for retirement, high level consulting and investment

Trends in performancefiscal 2020, at the Asset Management Company we are aiming
to achieve growth over the medium- to long-term bystrengthening our investment capabilities, accelerating oursolutions business, and pursuing efficiency.

The pandemic has had a negative impact on markets, leading toeffects such as drops in market values of securities and a
decline in the balance of investment portfolios due to the
reduced net asset values of publicly traded investment trusts.
Although we face a challenging environment in fiscal 2019 and(Group aggregate, management accounting, rounded figures, ¥ billion)

FY2019FY2018FY2020

Performance

PerformanceYear-on-year

Targets

Gross Profits

49.6

48.4

(1.2)

47.0

Net Business Profits

15.6

12.9

(2.7)

7.0

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 management accounting rules.

41

Mizuho Financial GroupOur strategies for creating value Asset Management Company

Key strategies
Focusing on asset management services to respond to diverse customer needs

Related SDGs

installment-type NISA. Additionally, we are promoting theproactive investment of financial assets in Japan by
disseminating educational materials on investing andinformation on products and markets as well as working
together with distributors to provide after-sale services for retailinvestors.

To respond to the diverse needs of retail investors we aredeveloping and offering a broad range of products, from thosethat are low-risk and focused on stability to those focused on
returns which draw on our advanced investment capabilities.
We are also optimizing investment in fund wraps and providing
products tailored to defined contribution corporate pensions,individual-type defined contribution pension plans (iDeCo), andSelection of and focus on solution services with high customer demand

Related SDGs

For corporate pension fund clients, Mizuho Trust & Banking isoffering comprehensive solutions through our pension
operations entrustment service which is tailored to meet clients’needs in the areas of investment, pension plans, andoperations.

Institutional investors are seeking to increase returns in a lowinterest rate environment and to respond to these needs as wellas those concerning low liquidity assets, we are focusing ourcorporate resources on enhancing investment by utilizing ourglobal platform, alternative investments, and ESG investments.

Related SDGs

Shifting to a more efficient business structure

pursuing automation and greater efficiency in our operations aswell as implementing remote work and otherwise transforming
our work styles to foster a work environment where each
employee can reach their maximum potential. These efforts are
aimed at strengthening our foundations for business growthover the medium to long term.

We are strategically allocating specialist personnel andfundamentally transforming our cost structure to maximize thebenefits of Asset Management One’s scale, as corporate
resources related to the group’s asset management functions
have been consolidated into this company. In addition, in orderto enhance productivity and the added value we provide, we are
Publicly traded investment trust assets
under management balance (¥ trillion)
6.9
5.9

DB/DC pension assets under managementbalance (¥ trillion)

6.6

7.8

7.7

Number of individuals enrolled inindividual-type defined contribution
pension plans (iDeCo) (thousand)
221

8.4
173
120

FY2018results

FY2019results

FY2020targets

ETF balance excluding publicly traded investment trusts.

Highlights

FY2018results

FY2019results

FY2020targets

FY2018results

FY2019results

FY2020targets

Total balance of assets in defined benefit (DB) and defined
contribution (DC) pensions (corporate and individual-type
DC pensions).

Expanding our fund line-up aimed at long-term asset formation for retail investors

At Asset Management One, we are expanding our line-up of products that utilize our Global Risk-factor
Parity Strategy, which we have honed through our experience in pensions and which aims for stable
returns by investing strategically across different asset classes and world regions. We are also focusing
on the composition of our global equity products which prioritize returns in areas of growth in the world
economy. Going forward, we will develop products which are aligned to the needs of retail investors
and products aimed at long-term asset formation.

Highlights

ESG investment initiatives

At Mizuho we are committed to responsible investment. Mizuho Trust & Banking has established a
Policy on Responsible Investment and Asset Management One has established an Approach to ESG
Investment. We are aiming to encourage the companies we invest in to enhance their corporate value
sustainably through engagement, develop and offer products that appropriately incorporate ESG andother such factors, and achieve a positive cycle of sustainable development for society as a whole.

Customers

c

a
d
b

Companies /Societya. ESG investment (engagement & ESG integration)b. Medium- to long-term enhancement of corporate
value & solving social issuesc. Expanding customers’ medium- to long-term
investment returns
d. Realizing a virtuous cycle of sustainable
development for society

2020 Integrated Report42Our strategies for creating value

Global Products Unit

Investment banking

Transaction banking

We aim to utilize our sophisticated expertiseas a team of specialists as we address thediverse needs of clients and provide groupwide, global support offering optimal solutions
that are aligned with current trends.

Seiji ImaiHead of Global Products Unit

Basic policy
At the Global Products Unit, our activities are primarily divided
into two areas, investment banking and transaction banking,and we provide solutions for clients in a wide range of businessareas.
We will continue fulfilling our corporate social responsibilities
as a financial institution while supporting the strategies of
in-house companies and the Mizuho group as a whole byproviding optimized financial products as solutions for issues
faced by our clients and society.

Also, to address the needs of clients and investors, we will draw
on the sophisticated expertise of the group and increase
Mizuho’s stable earnings power.
In addition, by allocating corporate resources without being
constrained by established conventions, and throughdigitalization, we are aiming to improve efficiency and develop
new solutions, which will enable us to increase productivity andexpand medium- to long-term business opportunities.

Business environment and challenges
The business environment that our clients are faced with isshifting at a rapid pace as uncertainty in the global economy
rises, exacerbated by the impact of COVID-19. Confronted withthis business environment, at the Global Products Unit we arefocusing our attention on leveraging our sophisticated expertise
as we continue offering optimal solutions that are aligned withdiversifying client needs.

Specifically, by utilizing our financial product expertise to takemeasured risks when providing financing, providing tradefinance based on changes in client supply chains, and using
financing to promote sustainable business, we will support thefinancial product aspects of Mizuho’s strategy, and fulfill our
corporate social responsibilities.

Key strategies
Providing effective solutions across banking, trust banking, securities, and other group companies
We provide solutions as a united group to offer the best support
for value chains that contribute to increased corporate value forclients.
We will enhance and expand our financial product line-up inorder to draw on the strengths of the entire group and provide

43

Mizuho Financial Group

Related SDGs

optimal solutions for business succession, businessrestructuring, balance sheet review, and other client
management and growth strategy topics stemming from shifts
in the business environment and changing social habits.

Our strategies for creating value Global Products Unit

Related SDGs

Enhancing our global operating framework and honing financial product expertise
As our clients accelerate their global operations, we are
addressing these needs by enhancing Mizuho’s services on a
global basis.
We are boosting collaboration between products departments
and regional offices to support our clients, especially for cash

management, settlements, and other transaction banking
services, as well as services in the field of project finance.
We are also working to hone our expertise as an organization
by strategically cultivating the pool of professional talent ineach product field.
Related SDGs

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

Principal accomplishments in investment banking

By utilizing our financial product expertise and digitaltechnologies, as well as aiming to provide new solutions
through collaboration with other companies, the Global
Products Unit is endeavoring to expand business in new fields
to capitalize on recent trends.

Principal accomplishments in transaction banking
FY2019 results

FY2019 results

Syndicated loans1

No. 1

Japan publicly offered bonds2

No. 1

ABS lead underwriter3

No. 1

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

Highlights

Trade finance4“Best trade finance bank in East Asia &the Pacific”

Custody

Custody survey No. 1 (9 years in a row)5
Sub-custody survey No. 1 (14 years in arow)54. Leaders in Trade Awards selected by Global Trade Review.
5. Holding and managing securities for securities investments.
Custody bank survey rankings (in the Japanese market) in Global Custodian magazine.

Securing the top market share for publicly offered bonds
in Japan for the 2nd consecutive year

In fiscal 2019, a record setting year for the total issuance amount of publicly
offered bonds in Japan, Mizuho Securities was No. 1 in market share forcorporate bonds for the second consecutive year. Mizuho Securities also
made proactive efforts on subordinated bonds and other products that are
seeing increasing market demand.
In addition, Mizuho Securities also captured the top market share for JapanSDG bonds, an area in which we are actively involved as a part of ourcontributions to support the sustainable development of society as afinancial institution.

Highlights

Total publicly offered bonds (Japan)
Underwriting amount

Share (%)(¥ billion)

3,718.8
3,195.2
2,285.1

4,163.2

2,749.1

17.1

20.8

18.9

21.4

20.3

FY2015FY2016FY2017FY2018FY2019Source: Mizuho Securities FY2019 financial results
available on the Mizuho Securities website

Best trade finance bank in East Asia & the Pacific for 4th year runningIn fiscal 2019, Mizuho Bank won the award for best trade finance bank in East Asia &the Pacific among Global Trade Review ’s choice of Leaders in Trade.
Our sophisticated product development and dedicated service, as well as customized
product offerings addressing the needs of major players throughout the region, werecritical factors in receiving this prestigious regional award for the fourth consecutiveyear.
We will strive to enhance our support for the management and financial strategies ofclients who are expanding globally.

2020 Integrated Report44Our strategies for creating value

Research & Consulting Unit

As the starting point of Mizuho’s value
creation, we leverage our high level ofexpertise, including industry insight, tocontribute to the creation of new value forour clients and society.

Yasuhiko Ushikubo
Head of Research & Consulting Unit

Basic policy
To respond to structural changes in client needs and fulfill ourrole as the starting point of Mizuho’s value creation, we areworking to implement structural reforms in three areas—business structure, finance structure, and corporate
foundations.

For the finance structure reforms, we are implementing
revenue structure and expense structure reforms from athorough stock perspective (in terms of “stock and flow”)
through efforts such as optimizing business operations andresources.

For our business structure reforms, in order to create value
based on client needs, we are working to further enhance ourresearch and consulting capabilities as well as transforming
our client channels through the use of digital technology.

In terms of corporate foundations reforms, we are working toenhance productivity and achieve the various synergy effects
of group company restructuring and integrated group
operations. Additionally, we are establishing an HR strategy
aimed at developing personnel with a high level of expertise.

Business environment and challenges
In addition to the advancement of megatrends such as
digitalization, the declining birthrate and aging population, andglobalization, the global outbreak of COVID-19 has made thechallenges facing our clients and society even more multifaceted and complex.
By adopting rapidly evolving digital technology and responding
to the increased interest from society regarding ESG and SDG

topics, we are working to identify clients’ needs early, including
needs related to business transformation focused on adapting to
the situation during and after COVID-19. And we are working
together as a unit to provide information backed by our highlevel of expertise and support businesses. In this way, we arestrengthening our capabilities as a trusted partner sharing
knowledge with our clients and society.

Key strategies
Enhance research and origination capabilities
By conducting thorough research with a clear sense of purpose
and with the aim of enhancing Mizuho’s corporate strategy andexpanding in-house companies’ business, we contribute tostrengthening Mizuho’s earnings power as well as our brandand reputation.

45

Mizuho Financial Group

Related SDGs

We will strengthen our origination capabilities linking research
to business with a focus on in-house company priority areas
such as cross-sector and new business. We can accomplish thisby strengthening our research capabilities via further
collaboration within the unit.

Our strategies for creating value Research & Consulting Unit

Related SDGs

Promote value chain-based consulting
We are promoting a value chain-based model of consulting
which enables us to leverage our consulting services togenerate business for the entire Mizuho group, thereby
contributing to the expansion of business for each in-housecompany.

At the same time, we are increasing the underlying value of ourconsulting services by broadening their scope to include
offerings in areas likely to see increased demand, such as ESG/
SDG-related fields and digital consulting.
Related SDGs

Strengthening initiatives for the active use of IT/digital
We are driving the digital transformation of clients and Mizuho
itself by leveraging the digital technology expertise of our unit
to pursue the digitalization of operations, the shift to data
monetization, the building of value co-creation models, andbusiness design.

Also, we are committed to developing and providing tech-savvy
personnel who will lead the next generation of Mizuho’sbusiness.

Related SDGs

Promote MMOne
Mizuho Membership One (MMOne) is our member-exclusive
service for corporations offering access to and applications ofMizuho’s insights. We will enhance both face-to-face andremote service channels and evolve MMOne into a platform

Highlightsthat provides high added value, including in non-financefields. This will enable us to contribute to a broad range ofneeds and solutions in line with the growth stage of corporateclients, particularly SMEs and middle market firms.

Integration of Mizuho Information & Research Institute, Mizuho Research Institute, and Mizuho Trust Systems

We will integrate Mizuho Information & Research Institute,Mizuho Research Institute, and Mizuho Trust Systems in
April 2021.
With the rapid advance of digitalization, the issues facing
our retail customers and corporate clients are becoming
more complex and are changing at an accelerated pace.
To provide the solutions that customers truly need, wemust combine our broad research capabilities, consulting
capabilities, and IT development capabilities(technological insight, system framework design,
implementation, and operation capabilities), all withdigitalization as a base.
Through this integration, we will combine the research,
consulting, and IT development capabilities that Mizuho
Information & Research Institute, Mizuho ResearchInstitute, and Mizuho Trust Systems have cultivated overa long period of time. As a core company for Mizuho’s
non-financial business domain, the post-integrationcompany will significantly enhance our ability to provide
new value beyond the conventional boundaries offinance.

Mizuho Financial Group

Mizuho ResearchInstitute
Research

Mizuho Information &Research InstituteConsulting

Consulting

Mizuho Trust Systems

ITdevelopment

IT development

Research & Consulting Unit

Integration

Integration

Integration

New Mizuho group company

Leading the creation of new value beyond the conventionalboundaries of finance as a core non-finance group company

2020 Integrated Report46

Our strategies for creating value

Digitalization

Creating a next-generation financial model by bringing together
digital technologies and social contribution
Mizuho is proactively engaging with the process of using digital technologies to create new formsof social living, such as those imagined in Society 5.0* and smart city concepts. Through ourengagement, we will create new ways of interacting with finance that will positively contribute tosolving social issues.
*A major policy promoted by the Japanese Cabinet Office’s Council for Science, Technology and Innovation for creating a “Super Smart Society”(Society 5.0) through advances in science and technology.

Digitalization initiatives
In many industries, digitalization has already been driving
ongoing structural changes. Now, with the outbreak of
COVID-19, customers are seeking services that facilitate newlifestyles to prevent the spread of the virus. In light of thesefactors, we believe digital transformation utilizing technology
will gain even greater momentum.
In order to respond swiftly to these sorts of changes in thebusiness environment, we are leveraging our strengths andcollaborating openly with other companies to meet the
emerging needs of our customers (create new business) and totransform our own business operations (enhance existing
business and improve productivity).

Mizuho’s strengths

Strengths of partners

Customer base andinformation infrastructure

Innovation and technology

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

Customer base andinformation infrastructure

Financial expertise and skill

Insight

Digital strategies for the COVID-19 and postCOVID-19 eras
We expect that, in the COVID-19 and post-COVID-19 eras,
relationships with customers will shift even further to digitallyenabled remote and contactless channels and that theconvenience of these channels will become a criticaldifferentiating factor. We are striving to improve convenience forour customers in a whole new way by expanding the range oftransactions our customers can complete entirely online and by
employing digital technology to provide so-called “frictionless”
financial services that do not require complex procedures.

1 Remote and contactless services
Due to the outbreak of COVID-19, an increasing number ofcustomers wish to avoid handling cash. Mizuho is continuing topromote widespread adoption of contactless payments throughour J-Coin Pay and Mizuho Wallet cashless payment services.
At the same time, we are also moving forward on contactless
payments for customers who do not own smartphones, suchas payments relying on biometric authentication technology.
In our contact with customers, we will enhance both our selfservice channels available through smartphones and otherdevices and our online face-to-face channels available throughvideo chat and other services, which have been rapidly gaining
popularity during the COVID-19 pandemic.

contributing to healthcare and2 Positivelysocial progress

47

Agility

Trial and error

Act with speed andflexibility

Allow ten attempts to
produce even one success

Open innovation

Communication andcollaboration

Work with partners

Timely information sharing
and coordination

Mizuho Financial GroupWe are proactively engaging with the process of creating new
forms of social living, such as those imagined in the Society
5.0 and smart city concepts. In doing so, we are aiming to use
digital technology to positively contribute to solving social
issues.
Specifically, through initiatives such as introducing cashless
payments at medical institutions, we are not only shortening
payment wait times but also supporting the development ofoperational workflows that reduce the risk of viral transmission
within medical institutions. Also, in order to solve issues
in local communities, we are collaborating with local
governments and citizens as well as with our corporate clientsto create new ways of interacting with finance in everyday life.

Our strategies for creating value Digitalization

Examples of initiatives

A new world with J-Coin: Expanding the J-Coin service
J-Coin Pay is a cashless service platform we provide incollaboration with over 90 financial institutions across Japan.
Participating financial institutions are each leveraging theircustomer bases to attract both affiliated merchants and users
nationwide.

In addition, we are going beyond merely providing payment
channels and working to improve the convenience of the J-Coin
app overall. For example, we have added a function for making
donations on smartphones and have also expanded our services
and functions for corporate clients, such as in J-Coin Biz, our
J-Coin-based expense accounting service.

Looking to utilize across a range of financial services
Many services launchingCompetition intensifying

For individual customers:

Low service
fees

Efficientinvoicingand payment
collection

J-Coin Lite

J-Coin Biz(B2P)

J-Coin Biz(P2B)

J-CoinCollect

J-Coin Tax

Donations

Adding credit
to otherIssuing digital
payment
currency
systems

Easy small
donations

Financial
institution
platform

Support for
issuing inhouse digitalcurrency

Smalldonationse.g. Suicae.g. themeparks

Management support

J-Coin Pay

EventsTicketless andcashless

Data analysis

Pay easily
anywhere

Middle andhigh school
students withsmartphones

Affiliated merchants

Provision of payment
channels

Collect
payments easily

Invoicing andPayments tocollecting
employees payments fromindividuals“A new world with J-Coin”

Online payments

Enables completing all financial
exchanges by smartphone

Individuals
without
depositaccounts,
students, etc.

Integration with Alipay, Outreach for visitors toJapan
Union Pay, etc.

Arranging
events,Paying taxes
collecting
payments, etc.

“J-Coin for sales promotions and productivity improvements”

Sales promotion
support

Provided value
Service(tentative name)

Provided services

Targetattributes

Deposit account holders

Other services:

For corporate clients:“J-Coin for everyday convenience”

Coupons /advertisements

Segment

Providing new digital currency service
only possible through J-Coin

Outline of overall J-Coin service

Smart eventsby J-Coin

Digital local gift cards / digital ticket packs
For local governments and businesses looking to move toticketless, cashless methods, we have begun providing a newservice for digital local gift cards and digital ticket packs in theform of QR codes.
Amidst efforts to recover from the COVID-19 pandemic andrevitalize local economies, digitizing local gift cards and other

Digital corporate bonds for individual investors
Mizuho and Blue Lab* have implemented a proof-of-concept trial
for issuing digital corporate bonds targeting individual investors
using blockchain technology.
Blockchain-based management of corporate bond transactions
enables direct contact between corporate bond-issuing companies
and individual investors. We expect this to be applicable to newmarket research methods and to efficient advertising methods.
In addition, corporate bond-issuing companies will be able toexpand their point programs’ reach by opening their point
programs to individual investors as well.
Further, because individual investors will be able to buy corporate
bonds online even at small volumes or small amounts, digital
corporate bonds will facilitate expansion of individual investor
coverage to segments such as the younger generation and families.

Highlights

such items, which local governments previously put out on paper,and issuing electronic tickets useable online is easing the strain
on local governments of printing, mailing, storing, and otherwise
managing paper tickets. This is one way in which we arepositively contributing to local governments’ operational
streamlining.

Digital corporate bond structure(8) Increased sales

Issuer A(1) Issuance ofcorporatebonds(5) Acquisitionof investor
data(1) Issuance ofcorporate
bonds

Digital corporatebond platform(2) C orporate bondunderwriting
Financial
institution A(securities firm)

Company products,
stores, etc.

Issuer B

Financial
institution B(securities firm)

Point program reach(6) Marketing
Communication
PointsProvision of assorted benefits(7)
Use of benefits for
products and services

Individual
investors(consumers)(3) Sales ofcorporate bonds(4) Purchases ofcorporate bonds

Participation in COVID-19 analysis project (Folding@home)Blue Lab* and Mizuho Information & Research Institute are participating in the distributed computing project Folding@home toassist in the analysis of COVID-19.
As of July 5, we are 463rd of 250,000 teams in the team statistics contribution rankings, which include world-renowned IT companies.
*A company aiming to create new business, established as a joint venture with Silicon Valley venture capital firm WiL, companies fromother industries, regional financial institutions, and others.

2020 Integrated Report48

Our strategies for creating value

Employee engagement

Implementing our new HR strategy
As society and our customers’ needs undergo major changes, in order to forge new partnerships with our customers we will needto enhance the expertise and skills of our personnel. Additionally, in Japan, workers’ perspectives are shifting away from the ideaof belonging to a company with the assumption of lifetime employment, to the idea of belonging to a profession, which assumes alifelong active role in one’s field, and the focus is on increasing one’s individual value.
Our new HR strategy responds to these changes in customer needs and employee perspectives, and aims to maximize employees’
universally recognizable value while focusing on honing their expertise. By creating organic opportunities for learning, taking on
new challenges, and gaining experience through work, this strategy will form a mutually beneficial relationship between
employees and the company where the growth of one leads to the growth of the other.

Overview of the new HR strategy
Changes in external environment
Declining birthrate
and aging population

Digitalization

Globalization

Changes in the attitudes and perspectives of workers
Emphasize universally
recognizable expertise

Changes in customer needs(Must provide value beyond the realm of finance alone)

Belong to a company

Belong to a profession

Mandatory retirement

Age of longevity / Lifelong
active role in one’s field

Focus on success at
one’s company

Focus on growth

New HR strategy
Shift from a model where the source of competition is limited to within the company to a model prioritizing employees’ professional growth and career preferences,providing opportunities for learning and taking on new challenges with a strong focus on maximizing employees’ universally recognizable value.

Talent development focused on expertise

Learning

Cycle of growth through learning,taking on challenges, and work

GrowthChallenge

Learning

Upgrading our talent development platform

Challenge

Opportunities to take on varied challenges inside andoutside Mizuho

Work

Frameworks supporting flexible career development+
Work

A work environment that enhances employee engagement

Form a mutually beneficial relationship between employees and the company where the growth of one leads to the growth of the other– Create a virtuous cycle that enhances employee engagement and motivation and promotes development of the company

Talent development focused on expertise
Learning: Upgrading our talent development platform
Previously, we provided training and educational content according to employer-determinedgroups based on seniority and other employee categories. Under the new HR strategy, in orderto strengthen employees’ expertise and skills through highly effective development, our new
framework will provide personalized content based on each individual’s needs and career
aspirations.
As one part of this, in addition to addressing learning needs across a wide range of subjects, inorder to support employees who are proactive in taking on new challenges, we have rolled out anew digital learning platform, M-Nexus, for our entire group. This new platform allows
employees to study without restrictions on time or place, and enables us to utilize a broad rangeof the latest content from external sources, including content on digital technologies. We will
also utilize AI to provide each individual with personalized recommendations for content that is
related to their interests.

49

Mizuho Financial GroupOur strategies for creating value Employee engagement

Next, in addition to utilizing this platform as a one-stop source for learning as well as information
on internal job opportunities, we plan to expand functionality to utilize it as a foundation for
creating an employee community and facilitating communication between employees.

Challenge: Opportunities to take on new challenges inside and outside Mizuho
We are confident that an effective way to increase employees’ ambition and universally recognizablevalue is to provide more opportunities for employees to work in different fields and in different
locations throughout Mizuho’s global business, taking on new challenges in order to achieve thecareer they envision for themselves. In order to achieve this, in addition to expanding internal job
postings at Head Office targeting talent currently assigned to branch operations, we are also
strengthening our support framework including training for ambitious employees interested in trying
new types of work and contributing in a leading role at Mizuho in the future. The number of internal
job applicants has increased by over 50% as a result of these initiatives.

No. of applicants for internal job postings
820

We have also launched a concurrent assignment program which provides opportunities for
employees to be involved in other roles or projects they are interested in while maintaining theirprimary duties, and in fiscal 2019, the first fiscal year of this program, we received applications fromover 120 employees.
Additionally, we are creating a framework to enable employees to take on new challenges outside ofMizuho, and have added job postings for secondment opportunities at external companies including
start-up firms. Also, in addition to adopting the concurrent assignment program via which employees
work some days at Mizuho and other days at another company, we have newly added a part-timework program for employees to operate their own businesses outside of work hours, and so far
around 120 employees are utilizing these new arrangements.

496

522

FY2017FY2018FY2019 xample of concurrent assignmentEoutside Mizuho

External
company

2 days/wk(secondment)

3 days/wk
Gain diverse perspectives andexternal insight

Work: Frameworks supporting flexible career development

An evaluation system that encourages employees to gain expertiseThis new evaluation system outlines the specific types of expertise and skills needed for eachbusiness field, which are key for talent management, and under the new job track framework wewill expand opportunities to engage in a wide range of activities and gain expertise at an earlystage.

Generalist
track(rotational)

Operations
Generalist
specialist track
track(non-rotational)

All types ofwork

Retailoperations,
corporate
operations, etc

Retailoperations,
corporate
operations

Merge all job tracks

After merging

Under the new HR strategy which emphasizes employee expertise, we will merge the existing job
tracks to enable employees to be involved in a broader scope of work regardless of their job
track, thus laying the foundations that will enable flexible career development (job tracks will be
combined in fiscal 2021). This new, unified job track will focus more on the expertise that each
employee exercises in their position rather than the improvement in their general work
capabilities, and employee development, evaluations, and compensation will be conductedwithin this framework.

Current

New job track for expanded scope of involvement

New “Generalist track”
Broader work opportunities
Focus on building expertise that willtranslate into business results

Especially regarding personnel evaluations, which will be key for maximizing the value of each
employee, we will strengthen and disseminate development-focused HR initiatives that consider
evaluations not as assessments but as opportunities for growth.
For example, we will increase opportunities for communication between managers andemployees in the course of the evaluation process, and in addition to providing thoroughfeedback on issues hindering growth and the employee’s actions, we will focus on enhancing
training to improve managers’ skills as evaluators.
By shifting to a flexible compensation model that is more focused on job duties, placing anemphasis on each individual’s current performance and expertise rather than seniority or yearsof experience, we will draw out employees’ motivation and ambition and encourage proactivity.

2020 Integrated Report50

Our strategies for creating value

A work environment that enhances employee engagement
Achieving a more flexible working styleMizuho received 5 stars on the Nikkei
Smart Work Survey

We are accelerating initiatives on flexible working styles as we look ahead to a post-COVID-19
society and give consideration to increasing employee interest.
In addition to making preparations for remote working arrangements and expanding theutilization of staggered working hours and flextime, we will raise productivity by adopting
working styles and management frameworks which assume such arrangements will be standard.

Mizuho received the Nikkei Smart
Work Award in the Innovation
category

We are also aiming to create a work environment that encourages healthy and efficient working
styles by focusing on eliminating overwork. Going forward we will continue to promote tailoredlabor management practices in partnership with industrial physicians.

Diversity and inclusion
We aim to proactively incorporate the perspectives and ideas of our diverse workforce into oureveryday work, strategic planning, and decision-making in order to create new value. We arecommitted to valuing the voices of women, non-Japanese nationals, individuals with disabilities,
individuals who identify as LGBT, and other diverse groups.

Mizuho received Platinum Kurumin
certification in recognition of oursignificant efforts to implement andmaintain systems that assist workers
in balancing work and childcare.

In recognition of our efforts to promotewomen’s empowerment in theworkplace, Mizuho received Nadeshiko
Brand designation for 2020, conferredjointly by the Tokyo Stock Exchange andJapan’s Ministry of Economy,
Trade and Industry.

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

By integrating diversity and inclusion (D&I) into every aspect of our HR strategy, we are
increasing our efforts to fully engage our diverse workforce, promote diverse and flexible
working styles, and transform the mindsets and behaviors of all employees and executive
officers. (Refer to page 56 for D&I related KPI.)
We are promoting career development and advancement for women in particular by offering astrategic development program. One of our key objectives is to develop more female candidates
for senior leadership roles (general manager equivalent positions and above) and so, in addition
to utilizing external coaching to create and review individual action plans, we are strengthening
career development support through assignments and promotions.
In order to ensure that women can continue to develop their careers throughout different life
events, we offer programs to support working parents and caregivers, remote work options, andother support systems that enable diverse and flexible work arrangements. Additionally, we areworking to change mindsets throughout the organization via a range of initiatives, including
encouraging 100% of applicable men to take childcare leave.
Strategic development programs for female employees
Cultivate an executive
management perspective in future
executive leader candidates

Strategic assignments
Coaching

Managerequivalent

Aim to accelerate professional
growth by transforming
participants’ mindsets regarding
their careers

 areer development support
Cseminars

A network for women
working at Mizuho

Supervisor
equivalent(under Supervisor
equivalent)

While cultivating their career
perspective, enhance eachindividual’s strengths throughevaluations and assignments

 R management tailored to theHindividual (including transforming
management mindsets)
Meetings with female careeradvisors

Network expansion
Access to role models

General manager
equivalent

M-WIN(Employee resource group)

Company-led initiatives

Employee-led initiatives

Promoting employee resource groups (ERGs)
Mizuho supports ERGs as employee-led platforms for mutual learning. When employees fromdifferent areas in the organization and varying national backgrounds come together to proactively
learn from one another, this not only stimulates their growth, but contributes to the creation ofbonds across company lines, creating a corporate culture that facilitates new business ideas anddiscoveries.

ERG event (Speech by former Chairmanof the Board of Directors Hiroko Ota)

51

Mizuho Financial Group

Fiscal 2019 saw the creation of three new employee resource groups in Japan, focused
respectively on public speaking in English, understanding disabilities, and utilizing coaching,
bringing the total number of employees involved in ERGs to about 4,000 globally.

Our strategies for creating value Employee engagement

Mizuho Diversity & Inclusion Month
Exposure to a wide variety of ideas, holdings discussions and communicating, and broadening
connections with others is transformative for the mindsets and behavior of Mizuho employees.
In order to promote D&I’s aim of drawing on the diversity of our workforce to create newcorporate value, we hosted an interactive project called Mizuho Diversity & Inclusion Month,which was held on a group-wide and global basis.
Fiscal 2019 was the first year for this event, which began with a discussion session with theGroup CEO and also featured speeches, ERG events, and more for a total of over 40 events
around the world over the course of one month. Approximately 7,000 employees participatedin total.

CEO Session(Online video feed in Japan)

We will host Mizuho Diversity & Inclusion Month on a continued basis to transform employee
mindsets and behaviors, thus encouraging the creation of new corporate value on a broad scale
across the group.

Promoting employee health and wellness
In our response to the COVID-19 pandemic, we are prioritizing the health and safety ofcustomers and employees, and in addition to basic measures such as wearing face masks andpromoting hand washing, we have also encouraged employees to work remotely and conduct
meetings online, and made consultations available for employees.
Through these and other initiatives promoting employees’ physical and mental health as wellas their health literacy, we are aiming to enhance the performance of each individual andincrease the productivity of the organization as a whole.
Mizuho was recognized under the 2020 Health & Productivity Stock Selection for a number of
initiatives, including those aimed at preventing overwork, such as encouraging the use of paid
leave, as well as efforts to prevent increases in the severity of health conditions throughmeasures such as requiring employees to receive subsequent testing in the event of
irregularities in their annual health exam. We were also recognized for the way in which wepursue these goals through an integrated framework enabling collaboration between thecompany, health insurance providers, and occupational health services providers.

Mizuho was selected under the 2020
Health & Productivity Stock Selection,
which is jointly administered by
the Ministry of Economy, Tradeand Industry and the Tokyo Stock
Exchange.

Our HR strategy
The core of the new HR strategy launched last fiscal year under our 5-Year Business Plan is to cultivate the universally
recognizable value of employees by encouraging them to take independent action and take on challenges.
To this end, we are working to expand opportunities for learning and taking on challenges so that each employee candesign their own career, hone their expertise through learning, and experience growth by taking on challenges. As wework to expand such opportunities, an increasing number of employees are taking specific action with many utilizing newframeworks such as internal job postings, concurrent assignments, and external part-time work, and we are now feelingthe impact of these initiatives as they begin producing results.
We will continue building the HR foundations needed to develop talent for the transition to thenext generation of financial services including the creation of frameworks for flexible careerdevelopment.
Furthermore, we will utilize the ideas and experience of employees from diverse backgrounds
to further stimulate Mizuho’s growth, and continue promoting D&I initiatives such as the
newly established Mizuho Diversity & Inclusion Month. And, in addition to responding to
the COVID-19 pandemic, as physical and mental wellbeing are essential for each individual
employee to be fully engaged at work, we will continue strengthening employee healthmanagement and other such initiatives aiming to ensure Mizuho’s sustainable growth.

Hiroaki Ehara
Group Chief Human Resources Officer

2020 Integrated Report52

Our strategies for creating value

Sustainability

By promoting sustainability initiatives, we at Mizuho aim to operate in a way that considers creation of value for our varied
stakeholders and improve corporate value through sustainable, stable growth for the entire group, thus contributing to theachievement of the Sustainable Development Goals (SDGs).
Thus far, we have strengthened our stance of advancing sustainability initiatives as an integral part of our group strategy. We havebeen making an effort to strengthen our environmental and climate change initiatives. In 2019, we signed the Principles for
Responsible Banking, a framework created by the United Nations Environment Programme Finance Initiative. In April 2020, in lightof these efforts and other factors, and with the aim of promoting sustainability consistently throughout the Mizuho group, after
deliberation at the Executive Management Committee and the Board of Directors, we revised our Basic Policy on Sustainability
Initiatives to clarify our fundamental approach.
Further, in fiscal 2019, our business execution and supervision lines deepened their discussions on sustainability, particularly in
relation to strengthening our environmental and climate change initiatives, and we set policy going forward and long-term targets inrelation to these issues.

Sustainability for
MizuhoMizuho’s sustainable and steady growth, environmental conservation, and the sustainable development andprosperity of the economy, industry, and society both in Japan and around the world

Corporate Identity

Basic Policy on Management
Basic Policy on Sustainability Initiatives

Mizuho’s group strategy

5-Year Business Plan
Key sustainability areas
Business

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

Corporate foundations

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

Contribution to environmental conservationand the sustainable development andprosperity of the economy, industry, andsociety both in Japan and around the world

53

Mizuho Financial Group

Contribution toachieve the SDGs

Specific initiatives
Approaches toimplementing
initiatives
In regards to the economy,
industry, society, andenvironment, Mizuho
shall increase its positive
impacts and decrease its
negative impacts, both
direct and indirect.

Mizuho, as a financialgroup, shall focus on
indirect impacts it
generates through its
business and dialogue withclients (engagement).

In the event of differencesof opinions among
stakeholders, the groupshall make a comprehensive
decision by employing along-term perspective
towards harmony with theeconomy, industry, society,and environment.

Our strategies for creating value Sustainability

Sustainability promotion structureManagement

Supervision/
Audit

Mizuho Financial Group
Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee

Chief Strategy Officer (Group CSO)
(Department in charge: Strategic Planning Department)

Our holding company, Mizuho Financial Group,
promotes integrated sustainability initiatives
throughout the group. This specifically involves
proposing key sustainability areas (materiality)
determined within our medium-term and fiscal
business plans for group companies as well as
providing guidance necessary for promoting
initiatives suitable for each group company. Group
companies formulate their own medium-term andfiscal business plans based on the key sustainability
areas and report the status of their sustainability
initiatives to Mizuho Financial Group.

Relevant departments

Resolutions and reports at the Board of Directors in
FY2019Resolutions

Set key sustainability areas
Provide the necessary
instructions for the promotion ofsustainability initiatives that areappropriate for each respective
company

Revision of Mizuho Code of Conduct
Report on the status ofsustainability initiatives andother actions

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

Subsidiaries of the above group companies

Establishment of Environmental Policy	Revision of Basic Policy on Sustainability
Initiatives
Key sustainability areas
Reports
	Revision of Environmental and Social
Management Policy for Financing andInvestment Activity
	Status of response to TCFD Recommendations

United Nations Environment Programme Finance Initiative (UNEP FI) Principles for
Responsible Banking
The Principles for Responsible Banking are a framework aiming for thesustainable development of banks and society in alignment with the objectivesof the Sustainable Development Goals (SDGs) and the Paris Agreement. The
Principles enable banks to identify where they have the potential to make themost significant positive and negative impacts, and provide a framework forbanks to set and work towards strategies and targets in line with initiatives inthese identified areas, and to be transparent in their disclosures.
Mizuho became a Founding Signatory of the Principles upon their launch in
September 2019. In light of the Principles, and in order to clarify our specificapproach to sustainability initiatives, we revised the basic approach set forth in
our Basic Policy on Sustainability Initiatives in April 2020.
Going forward, in line with the Principles, we will enhance our sustainability
initiatives further and report on the status of our efforts in response to the
Principles.

The Principles
Principle 1: Alignment
We will align our business strategy to be consistent
with and contribute to individuals’ needs andsociety’s goals, as expressed in the Sustainable
Development Goals, the Paris Climate Agreement
and relevant national and regional frameworks.
Principle 2: Impact & Target Setting
We will continuously increase our positive impacts
while reducing the negative impacts on, andmanaging the risks to, people and the environment
resulting from our activities, products, and services.
To this end, we will set and publish targets where
we can have the most significant impacts.
Principle 3: Clients & Customers
We will work responsibly with our clients and ourcustomers to encourage sustainable practices
and enable economic activities that create sharedprosperity for current and future generations.
Principle 4: Stakeholders
We will proactively and responsibly consult, engage,and partner with relevant stakeholders to achievesociety’s goals.
Principle 5: Governance & Culture
We will implement our commitment to these
Principles through effective governance and aculture of responsible banking.
Principle 6: Transparency & Accountability
We will periodically review our individual andcollective implementation of these Principles and betransparent about and accountable for our positive
and negative impacts and our contribution tosociety’s goals.

2020 Integrated Report54

Our strategies for creating value

Key sustainability areas

‌
Asset
formation to prepare for the future‌Expand services that respond to a society with a declining
birthrate and aging population‌Convenient services in line with diversifying lifestyles
P34, P42, P47 to 48

Industry development& innovation‌
Smoothbusiness succession‌Industry transformation‌Acceleration of innovation‌Growth in Asian economic zones‌Creating resilient social infrastructure
P34, P36, P38, P44, P46

Corporate foundations

Business

Declining birthrate
and aging population,plus good health andlengthening lifespansSound economic
growth‌Strengthening
capital markets functions‌Transition to a cashless society
Environmentally conscious social programs
P40, P42, P46

Environmental
considerations‌Promotingaction to address climate change and supporting
the transition to a low-carbon society
P59 to 62

Corporate
governance‌Enhancing
corporate governance‌Risk management, strengthening our IT infrastructure, andcomplianceD isclosure of information in a fair, timely, and appropriatemanner, and holding dialogue with stakeholders
P27 to 28, P69 to 97

Human capital‌
Talentdevelopment and creating workplaces that give
employees a sense of purpose
P49 to 52

Environment &society‌Environmental
and human rights considerations forinvestment and lending‌Addressing climate change‌Improving financial and economic literacy, and promoting
activities that contribute to society based on regional andsocietal needs
P57 to 58, P63 to 66, P97

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

55

Mizuho Financial Group

Open partnerships and collaboration with a diverse range of stakeholders

We have defined key sustainability areas in our 5-Year Business Plan in line with the expectations and requirements of stakeholders
and based on the importance and affinity of such initiatives with our strategy, as well as medium- to long-term impact on our
corporate value, and each in-house company, unit, and group will establish a strategy incorporating sustainability initiatives.
Additionally, we have set targets/KPIs based on our key sustainability areas. The key sustainability areas and other items are revised
each fiscal year and reflected into our business plan.

Our strategies for creating value Sustainability

Business

FY2019 performance on sustainability targets and KPIs

Declining birthrate
and aging population,plus good health andlengthening lifespans

‌
Asset
formation to prepare for the future‌Net increase in investment products (individual
investors): ¥470.9 billion‌Total number of individual customers who use
investment products (core customers): 1.743 million
customers (up 71,000 customers compared to previous
fiscal year)‌Net increase in publicly offered equity investment trust
assets under management: -126.9 billion

Industry development& innovation

Smooth business succession
Number of clients provided with consulting:
1,716 clients (up 25% compared to previous
fiscal year)
Acceleration of innovation
Rank in number of IPOs as lead underwriter:#2
Rank in terms of IPO underwriting amount: #4

Industry development& innovation, soundeconomic growth,environmental
considerations

 ustainable finance ¥2.4 trillionS(of which, ¥1.1 trillion in environmental
finance)

Although the balance of publicly offered equity
investment trust assets under management saw a
net decrease from the end of fiscal 2018, greateruse of installment-type investment trusts led to anincrease in both the number of customers and thebalance for investment products.

Due to enhanced coordination between thefrontlines and Head Office, we were able torespond to our clients’ wide-ranging needs, andthe number of clients we provided with consulting,mainly on business succession, went up by 25%
compared to the previous fiscal year.
We also supported the IPOs of technologyfocused startup companies in fields such as theenvironment, health, medicine, and education.
We began collecting data in FY2019 and haveestablished a long-term target for FY2030.
P60

Human capital/Diversity & Inclusion
Item
Percentage of management positions filled by women(general manager and manager equivalent) 1

Corporate foundations

Item

TargetTarget time frame

Achievement (July 2020)

20%

July 2024

16%

Level to be achieved continuously

Achievement (FY2019)

65%

64%

30%

36% (April 2020)

70%

78%

100%

93%

Percentage of management positions filled by employees
hired outside Japan2
Percentage of new graduates hired for management trackjobs who are female1
Percentage of paid annual leave taken by employees1
Percentage of eligible male employees who take childcare
leave1

1. Japan (Total of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
2. Ex-Japan (Total of Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)

Environment and society
Item
CO2 emissions basic unit of electricity used at our
offices in Japan3 (CO2 emissions/total floor area)
Environmental
burden reduction

Financialeducation

Green purchasing ratio target for paper(across eight group companies)
Paper recycling ratio target(major offices in Japan)
Total financial education participants

Numerical target
By FY2020 achieve a 10.5% reduction
compared to FY2009 levels
By FY2030 achieve a 19% reduction

FY2019 results
Achieved a 25.9%
reduction compared to
FY2009At least 85%

99.9%

At least 95%

93.1%

60,000 or more from FY2019 to FY2023

18,660 participants

3. Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho Research Institute, Mizuho Information & Research Institute, AssetManagement One, and Mizuho Private Wealth Management.

2020 Integrated Report56

Our strategies for creating value

Responsible financing and investment
Considering the expectations and perspectives of our stakeholders, for the purpose of strengthening our environmental and societal
considerations in making financing and investment decisions, we previously established a policy on initiatives involving sectors
which have a high possibility of contributing to adverse environmental and social impacts. In April 2020, we revised the policy to becomprehensive in prohibiting financing and investment in such initiatives regardless of sector, as well as points of caution(“Environmental and Social Management Policy for Financing and Investment Activity”). Additionally, from the perspective ofstrengthening our response to climate change risks, we conducted revisions, including tightening the policy which states that wewill not provide financing for the construction of new coal-fired power generation facilities and adding the coal mining sector, as
well as additional clarification of our responses to transition risks in the oil and gas sectors, and based on this policy we set aquantitative target to reduce our outstanding credit balance for coal-fired power generation facilities.

An overview of responsible financing and investment
Provide financing or support for raising capitalMizuho Financial Group (holding company)

Investment (asset management)
Mizuho Trust & BankingE stablished Environmental and Social Management
Policy for Financing and Investment Activity

Establish and implement policies on responsible

Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, and Mizuho Americas
Implement Environmental and Social Management
Policy for Financing and Investment Activity

Financing large-scale development projects
Mizuho Bank
Adoption and application of the Equator Principles**A financial industry benchmark for determining, assessing, and managing environmental andsocial risk related to financing of large-scale development projects.

investment in our asset management businessEstablish and implement policies on Japan’s
Stewardship CodeAsset Management One
Establish and implement policies on ESG investment
Establish and implement policies on Japan’s
Stewardship CodeOverview of our Environmental and Social Management Policy for Financing and Investment Activity

Implementation
methods

 hen determining whether to engage in transactions, we account for the degree to which the client has
Wtaken steps to avoid or mitigate risk and other due diligence as appropriate, based on the characteristics ofthe services we are providing.
Our primary subsidiaries participate in engagement with specific clients in each sector with the aim ofsharing a medium- to long-term perspective on opportunities and risks accompanying environmental,social, and governance (ESG) issues and climate change.

Prohibited

Regardless of sector
Additional due
diligence

Policies on SpecificIndustrial Sectors

Weapons rojects with an adverse impact on wetlands designated as Wetlands ofP
International Importance under the Ramsar Convention
Projects violating the Convention on International Trade in Endangered Species ofWild Fauna and Flora (Washington Convention)
Projects with an adverse impact on UNESCO World Heritage sites
Projects involving child labor or forced labor
Projects with adverse impacts on indigenous people’s local communities
Projects involving land expropriation that causes forced relocation of residents
Coal-fired power
generation

Coal mining

Oil and gas

Palm oil, lumber,and pulp

Target to reduce the outstanding credit balance for coal-fired power generation facilities based on our Environmental andSocial Management Policy for Financing and Investment Activity

Reduce the FY2019 amount* by

50% by FY2030, and achieve an outstanding credit balance of zero by FY2050* Our outstanding credit balance as of the end of FY2019 was ¥299.5 billion.

57

Mizuho Financial GroupOur strategies for creating value Sustainability

Policies on Specific Industrial Sectors

Targeted sectors

Overview

Underlines indicate revisions made in April 2020

Weapons e avoid providing financing or investment which will be used for the manufacture of weapons designed to kill or inflictWstructural damage during wars or armed conflicts.
We avoid providing financing or investment to any manufacturer of cluster munitions, antipersonnel landmines, or biochemical
weapons.

Coal-fired power
generation

 ompared to other forms of power generation, coal-fired power generation produces more greenhouse gases, in addition toCproducing harmful substances such as sulfur oxide and nitrogen oxide. Therefore, it presents a higher risk of contributing toclimate change, air pollution, and other environmental impacts.
We do not provide financing or investment which will be used for new construction of coal-fired power plants. (This excludes
business to which Mizuho is already committed.)
However, when a proposed coal-fired power plant is essential to the relevant country’s stable energy supply and will contributeto reduction of greenhouse gas emissions by replacing an existing power plant, we may provide financing or investment for the
project, based on careful consideration.
We will also continue to support development of innovative, clean, and efficient next-generation technology that will contributeto the expansion of sustainable energy, as well as other initiatives for the transition to a low-carbon society.

Coal mining

 e recognize that coal mining, when not managed properly, entails risk of adverse environmental and social impacts, whichW
may include damage to ecosystems from hazardous waste produced in coal mines, as well as deaths or injuries resulting frommining accidents.
Our decisions regarding financing and investment for coal mining projects involve a thorough examination of the impacts on theenvironment, industrial safety and health, and other areas.
We do not provide financing or investment to coal mining projects employing the mountain top removal method, due to thesevere impact this method has on the environment.
In light of the fact that coal and other fossil fuels contribute to emissions of greenhouse gases, we undertake engagement withclients to confirm their measures for addressing transition risk accompanying climate change.

Oil and gas

 e recognize that oil and gas extraction and pipeline construction entail risk of adverse environmental and social impacts,
W
which may include pollution of oceans and waterways from oil spills and gas leaks, as well as violations of the human rights ofindigenous peoples.
Our decisions regarding financing and investment for oil and gas projects involve a thorough examination of the impacts on theenvironment and of the potential for conflicts with indigenous peoples or local communities.
In light of the fact that oil, gas, and other fossil fuels contribute to emissions of greenhouse gases, we undertake engagementwith clients to confirm their measures for addressing transition risk accompanying climate change.

Palm oil, lumber,and pulp

 e recognize that palm oil, lumber, pulp, and other forest products may entail potential human rights abuses within theWproduction process, such as the violation of indigenous people’s rights or the use of child labor, in addition to environmental
issues such as deforestation (including forest burning) and damage to biodiversity.
Our business decisions involve a thorough examination of whether there are any potential conflicts involving indigenous people
or local communities, and we take into consideration whether the client/project has received certification for the production ofsustainable palm oil or whether they have been certified for responsible forest management.
In the event that we identify any unlawful act during the term of a transaction, we urge the client to take immediate remedial
measures. In the event that the client has not taken appropriate measures to address social issues, we undertake engagementwith the client to promote remedial measures and, if the client’s remedial measures are unsatisfactory, we suspend new
financing and investment.
We urge our clients in these sectors to formulate sustainable environmental policy, such as No Deforestation, No Peat, and No
Exploitation (NDPE), and to respect Free, Prior, and Informed Consent (FPIC) in relation to local communities.

Adoption of the updated Equator Principles (“EP4”)

Updated initiative policy for Japan’s Stewardship Code

Mizuho Bank adopted the Equator Principles in 2003 and sincethen has been applying them to assess the environmental andsocial risks of large-scale development projects. The Equator
Principles Association, for which Mizuho Bank serves as theregional representative for Asia & Oceania, has updated theEquator Principles to their fourth iteration (“EP4”), reflecting
the views of a wide variety of stakeholders and financial
institutions. Mizuho Bank began applying the latest update inJuly 2020. The main revisions are as follows:

Responding to the revision of Japan’s Stewardship Code,
Mizuho Trust & Banking and Asset Management One updated
their initiative policy for the code in April 2020.

Expanded scope (added some refinance and acquisition finance)Enhanced measures to address climate change (added Climate Change
Risk Assessment)Enhanced measures for respect of human rights (enhanced due
diligence related to impacts on indigenous peoples)

We take into consideration not only financial information
but also sustainability and other non-financial informationconsistent with the investment management strategies of thecompanies in which we invest. Further, we engage with thesecompanies in constructive, purposeful dialogue (engagement).
Through business analysis and investment decision-making, we
will endeavor to expand the medium- to long-term investment
income of our customers. In addition, we publicize the results of
our ESG investing initiatives and engagement activities on the
Asset Management One website and in a report detailing ourstewardship activities. As a responsible institutional investor,
we will continue to fulfill our stewardship responsibilities going
forward.

2020 Integrated Report58Our strategies for creating value

Strengthening support for sustainable businesses
The SDGs and the Paris Agreement have clarified the goals of the international community, the needs and actions of stakeholders
have changed, and expectations and demands for companies to create value for society are on the rise. Against this backdrop,
initiatives to improve sustainability are becoming an ever more critical aspect of business strategy.
At Mizuho, as part of promoting sustainable business, we have established key sustainability areas (materiality) for our business, aswell as KPIs (monitoring indicators). In order to capture expanding business opportunities, we have also strengthened our structure
for promoting sustainable business and set long-term targets for sustainable finance and environmental finance.

Business promotion through engagement
In light of the indirect impact that we, as a financial group, have through our clients, we strive to deepen our understanding of theissues and needs of clients through proactive engagement, and have strengthened our group-wide support of sustainablebusinesses in order to aid clients’ SDGs and Environmental, Social, and Governance (ESG) initiatives, sustainability-related
innovation, and risk reduction, including initiatives that address climate change and the transition to a low-carbon society. This isalso enabling us to capture business opportunities.
Specifically, we have appointed officers responsible for advancing
sustainable business in each in-house company and unit and are
holding regular working-level strategy meetings on sustainablebusiness. In these ways, we are continually discussing how we canpromote sustainable business as a united group. In addition, among
our group companies, we have increased the number of personnel atrelevant organizations. For example, Mizuho Bank has set up a
Sustainability and Engagement Promotion Office, and the Research &Consulting Unit has launched a Sustainability Promotion Project.
These and other initiatives have reinforced our structure for providing
solutions.

Engagement

Identify ESG and
SDG-related
challenges and needs

Clients

Provide solutions

Financial andnon-financial solutions
Provide consulting
as a unified group

Structure for promoting sustainable business
Sustainable Business Strategy Meeting
Mizuho Financial
Group

Strategic
Planning
Department

Mizuho Bank

Retail & BusinessBanking Company

Corporate &Institutional Company

SDGs
Business Desk

Corporate Strategy Advisory
Department
Sustainability andEngagement Promotion OfficeMizuho Trust &BankingMizuho Securities

Global Corporate
Company

Global Markets
Company

Asset Management
Company

Research &Consulting Unit

Project Finance Dept.
Sustainable
Development Office

Departments incharge of capitalraising, investment,
and investment
oversight

Corporate Strategy
Advisory Department

Global Products Unit

Departments incharge of products
Corporate Finance Dept.
Sustainable Finance
OfficeMizuho International (UK)
Sustainability Head

Sustainability
Promotion Project

Mizuho Information &Research InstituteMizuho ResearchInstitute

Asset Management
One

Corporate Sustainability
OfficeInvestment Division

Underlines indicate enhancement or establishment.

In April 2020, Mizuho Bank and Mizuho Trust & Banking established the Corporate Strategy Advisory Department, putting in placea structure to provide integrated, optimal, and concrete solutions for our clients, based on a familiarity with their business and anunderstanding of their true business challenges.
Further, to respond to increasingly important needs for addressing the SDGs and ESG issues, we installed a Sustainability andEngagement Promotion Office in the Mizuho Bank Corporate Strategy Advisory Department. This office enables us to bring
together the many sustainable businesses at Mizuho and enhance our ability to provide our clients with solutions to social issues
they are facing.

Naoshi Yamazaki

General Manager of Corporate
Strategy Advisory Department
Mizuho Bank/Mizuho Trust & Banking

59

Mizuho Financial GroupThe Corporate Strategy Advisory Department is involved in our clients’ decision-making and corporate action design from strategy
to tactics. Through this sort of engagement and group-wide effort, we are supporting our clients in improving their corporate value
in both financial and non-financial aspects.

Our strategies for creating value Sustainability

Mapping out our sustainable solutions
As a financial services group, Mizuho provides a wide range of solutions to our corporate clients, extending from finance to consulting,support for solving social issues, and provision of asset management and products.
FinanceMizuho Securities

Mizuho BankGreen bonds
Social bonds
Sustainability bonds
Sustainability-linked bonds
SDG project bonds

Green loans
Social financing
Sustainability loans
Sustainability-linked loans
Mizuho Eco Finance
Mizuho ESG Loans/Private
placement bonds

Project finance for renewable energy/
Mezzanine and equity investment
Impact investment/loans
Social impact bonds

Consulting
Mizuho Research Institute, Mizuho Information & Research Institute, Mizuho Trust & Banking
SDGs consulting

Investors

ESG consulting

Mizuho Bank
Providing industry insightBusiness matching

Clientcompany

Support for solving social issues
Mizuho Bank, Mizuho Trust &Banking, and Mizuho Securities

Mizuho Bank
Support for entrepreneurs
working on the SDGs
SDG-related open
innovation
Platform creation

Cashlesspayments
supportPublicprivate
partnershipprojects
supportBusiness succession
supportMizuho Trust & Banking
Support for real estatedevelopment alignedwith ESG factors, realestate brokerage

Asset management and products
Asset Management One
ESG investment

Mizuho Trust & Banking, Mizuho Securities, Mizuho Bank
Develop and offer ESG/SDG-related investment products

Sustainable finance and environmental financeIn line with our key sustainability areas, we have defined sustainable finance and environmental finance for Mizuho and set longterm targets looking towards 2030, the SDGs target year. This is allowing us to proactively fulfill our role in directing capital towards
environmental protection and the achievement of the SDGs.

Sustainable finance &Environmental finance targets:
FY2019 - FY2030

25 trillion

total: ¥(of which the target for environmental finance is ¥12 trillion)

Sustainable finance &Environmental finance results
FY2019 results

2.4 trillion

total: ¥(of which, ¥1.1 trillion in environmental finance)

Our definition of sustainable finance and environmental financePrimary Key
Sustainability
Areas referencedE nvironmental considerations
Sound economic growthIndustry development & innovation

Applicablefinance areasF inance for clients where the intended use of funds
is environmental and/or social projects
Financing to support and facilitate clients’ response
to ESG/SDG-related areas, including financing
requiring clients to meet certain related conditions,and providing consulting and assessment of clients’
response to ESG/SDG-related areas

Applicablebusiness areas

Loans, underwriting, investments, asset management

OutsideJapan:

41%

Japan:

59%
Environmental
finance:25%
Environmental
finance:21%2020 Integrated Report60

Our strategies for creating value

Enhancing sustainability solutions

FinanceMizuho Eco Finance

Financing support for renewable energy projects

To promote initiatives and disclosures furthering the shift to a lowcarbon society, in June 2019 Mizuho Bank and Mizuho Information &Research Institute developed a new environmental assessment-based
finance product entitled Mizuho Environmentally Conscious Finance(“Mizuho Eco Finance”). The product utilizes globally accepted
environmental verification and evaluation standards to assess clients’environmental initiatives. Mizuho Bank provides financing to clients
who meet a certain minimum score in the assessment.

Since our founding, we have continually assessed project risks andfinanced a variety of renewable energy projects, including wind,solar, solar thermal, geothermal, and offshore wind. In fiscal 2019, wewere involved in arranging approximately ¥380 billion in financing.
Our involvement includes serving as a financial advisor to support
financing in the growing sector of large-scale offshore wind power
projects in Japan and Taiwan and to support JERA’s participation in
an offshore wind power project in Taiwan. We will apply the expertise
we have gained from past deals in Europe and the US, which have led
in this field, and continue making
multi-faceted, long-term, positive
contributions to our clients’
renewable energy projects,
not only with financing support
but also through our advisorybusiness.

Through assessment and monitoring, Mizuho Information & ResearchInstitute provides advice to clients to improve and maintain theirscores.
Financing executed as ofthe end of June 2020:

10 deals totaling ¥176.5 billion(Photo provided by JERA)

Examples: P36

Sustainability-linked loans

Support for issuance of SDG bonds

By proposing and providing sustainability-linked loans (SLL) thatlink loan terms to the borrower’s achievement of sustainability
performance targets, we are supporting our clients’ sustainability
strategies both inside and outside Japan. In March 2020, we served
as the arranger for an SLL to Cosmo Energy Holdings. Cosmo
Energy Holdings’ anticipates that the trend away from fossil fuels
will accelerate over the long term and so has positioned renewableenergy as a key growth area to pursue in its medium- to longterm business strategy. Taking this into account, we held thoroughdiscussions on business strategy
and CSR strategy that resulted
in our proposal and arrangementof an SLL linked to Cosmo
Energy Holdings’ sustainability
performance targets for renewableenergy.

With the sustainable finance market growing worldwide, Mizuho
Securities is further advancing our sustainable finance initiatives. We
have partnered with the environmental certification organization Climate
Bonds Initiative and in 2019 launched a sustainability team in Mizuho
International (London) to gather the latest information on a global basis.
In Japan, we have assisted with the structuring of industry-first
SDG bonds, such as the first bond in Asia to receive Programmatic
Certification from the Climate Bonds Initiative, the first social bondissued by an expressway company,
and the first portfolio-type green
bond issued by a non-financial
company. Outside Japan, we
served as a principal dealer for theissuing of a transition bond by a UK
gas company, and we are leading
the market with our insights backed
by a high level of expertise.

Examples outside Japan: P38(Photo provided by Cosmo Energy Holdings)(Photo provided by NEXCO EAST)

Supporting solutions to social issues
At Mizuho, we are supporting companies that are working on providing various solutions to social issues, andwe are also developing an SDG-related open innovation platform to facilitate business creation and promotion.
Utilizing our broad customer base, we are developing a wide-ranging network of large corporations, middle-market
and small- and medium-sized enterprises, and startups to advance open innovation. By doing so, we are aiming topositively contribute to new technology and business creation and solve social issues. To that end, we will also use
this platform to undertake initiatives for implementing and expanding impact investment and loans.
Seminar for startups

61

Mizuho Financial GroupOur strategies for creating value Sustainability

Research & Consulting
Sustainability Promotion ProjectIn the Research & Consulting Unit, we have always offered expert insight into sustainability, as demonstrated by our extensive record of consulting
in the field of energy and the environment. However, our insights tended to remain scattered within the unit across different entities, and we werelooking to improve internal sharing of information and coordination on deals.
To solve this issue and support Mizuho in responding as a united group to clients’ varied sustainable business needs, beginning with the SDGs and
ESG issues, in 2020 we launched the Sustainability Promotion Project.
The Sustainability Promotion Project is deepening the collaboration within the unit in both the research and consulting fields and, in doing so,enhancing and promoting our sustainable business initiatives, such as expanding the areas in which we can serve clients.
In terms of research collaboration, we are focusing on
output usable in consulting and coordination among in-housecompanies, and we have formed a Task Force on Climate
Change Research. In terms of consulting collaboration, we havetaken client needs into account and launched a Task Force on
Environmental Issues and a Task Force on Corporate/Business
Strategy to make positive contributions to business throughconsulting.

Task Force on Climate Change ResearchInformation
sharing

Consulting collaboration

Task Force on Environmental Issues

Dealcollaboration

Task Force on Corporate/
Business Strategy
Secretariat

The Task Force on Climate Change Research is composed of
employees from Mizuho Research Institute and Mizuho Bank’s
Industry Research Department and is researching climate change
impacts from macroeconomic and industrial perspectives. The
task force’s work is furthering initiatives that support Mizuho’s
management and business. In June 2020, the task force
published a One Think Tank Report on the true nature andfuture of climate change issues, discussing the unprecedentedchanges that interactions between various actors are driving in
the business environment.

Research collaboration

Liaison functions(coordinating with Corporate Strategy Advisory Department)
Needs

Clients

Information and services
Foundations for subsequent business
MizuhoManagement

In-housecompanies, units,
and groups

The Task Force on Environmental Issues is composed of members from
Mizuho Information & Research Institute and Mizuho Trust & Banking’s
Corporate Strategy Advisory Department and is focusing on businesscollaboration for the environment, with consulting as a starting point. The
Task Force on Corporate/Business Strategy is composed of members from
Mizuho Research Institute and Mizuho Information & Research Institute andis focusing on co-creation of value, beginning with consulting to promote
incorporating the SDGs in corporate management.

Investment and products: ESG investment
In the Asset Management Company, we are engaging in constructive, purposeful dialogue (engagement) with the companies in which we invest.
In addition to supporting improvements in these companies’ corporate value and supporting sustainable growth for society, we are also pursuing
ESG investment, making investment decisions with not only financial information but also ESG factors and other types of non-financial information.
For example, we are offering ESG investment products, such as those using our ESG Low Volatility High Dividend Payment Strategy, in which we
select stocks from an ESG perspective with a focus on dividend yields and low volatility and aim to produce stable returns, and our Sustainability
Research Strategy, in which we consider positive contributions to solving social issues as revenue opportunities and employ selective investment.
Going forward, we will continue to practice ESG investment, with the goal of creating a positive cycle for society’s sustainable development.

2020 Integrated Report62

Our strategies for creating value

Environmental and climate change measures
At Mizuho, we have supported the intent and aims of the Task Force on Climate-related Financial Disclosures (TCFD)*
Recommendations since 2017, and we are working to engage in initiatives and enhance disclosures in accordance with therecommendations. Based on our awareness that climate change is one of the most crucial global issues having the potential toimpact the stability of financial markets, we have positioned addressing environmental issues and climate change as a key part ofour corporate strategy and have bolstered the following initiatives as a result of numerous discussions at bodies including the
Executive Management Committee, Risk Committee, and the Board of Directors.

Governance
Strategy

Establishment of Environmental Policy and enhancement of group-wide promotion structure
Support for clients’ environmental and climate change initiatives

P59 to 62 Scenario analysis based on TCFD Recommendations

Risk management Strengthening the management of climate change risks Management of top risks Responsible investment and financing
Indicators and targets Setting of targets pertaining to risks and opportunities

GovernanceP57 to 58

P57, 60

Strengthening disclosure*A task force led by representatives of the private sector, established in December 2015 based on recommendations from the Financial Stability Board in order to enhance the availability of corporate
information related to climate change; issued final report (recommendations) in 2017.

Establishment of Environmental Policy and enhancement of group-wide promotion structure

We conduct business activities and operations based on the Mizuho Code of Conduct to put the tenets of our Corporate Identity into
practice, and the Code of Conduct states: “We will act independently and proactively with the awareness that environmental
initiatives represent an essential precondition for the existence and activities of our company.”
Establishing our Environmental Policy alongside our Human Rights Policy under the Mizuho Code of Conduct in April 2020 clarified
our stance on climate change as well as our environmental awareness and specific actions that we will take on environmental
initiatives including those targeting climate change as we work toward transitioning to a low-carbon society. The Environmental
Policy clearly states that oversight is provided by the Board of Directors, and in addition to building a strong corporate governancesystem that promotes environmental initiatives as an integral part of our strategy, Mizuho group companies will establish similar
policies to enable us to engage in consistent environmental initiatives on a group-wide basis.

Efforts to address climate change
We recognize climate change as one of the most crucial global issues with the potential to impact the stability of financial markets,
representing a threat to the environment, society, people’s lifestyles, and businesses.
At the same time, we believe there are new business opportunities arising from the need to transition to a low-carbon society, suchas the field of renewable energy and other businesses and innovations which contribute to mitigating and adapting to the impact ofclimate change.
In light of this, we have included responding to climate change as a key pillar of our business strategy and will take the following
actions in order to proactively fulfill our role as a financial services group in the effort to achieve a low-carbon society by 2050.
 e will engage in proactive, constructive dialogue in response to our clients’ individual concerns and needs, and in support of theirWefforts to introduce climate change countermeasures and transition to a low-carbon society in both the medium and long term.
 e will proactively develop and offer financial products and services designed to support clients’ efforts to introduce climate changeWcountermeasures and transition to a low-carbon society.
 e understand the importance of climate-related financial disclosures and we utilize the framework under the Recommendations ofW
the TCFD in order to leverage growth opportunities and strengthen risk management as well as disclose information in a transparent
manner regarding our progress.

63

Mizuho Financial GroupOur strategies for creating value Sustainability

Strategy

Scenario analysis based on TCFD Recommendations

Based on the TCFD Recommendations, we conducted a qualitative evaluation of the risks that climate change poses for each sector,
and based on the evaluation results and other data, we conducted scenario analysis of the transition risks and physical risks forcertain scenarios. In line with the results of our scenario analysis of transition risks, we will further strengthen constructive dialogue(engagement) with our clients and respond with a deep understanding of their challenges and needs. In doing so, we will capturebusiness opportunities and also strengthen risk management.

Transition risk

Item

ScenarioInternational Energy Agency (IEA)’s Sustainable Development Scenario (SDS)1/New Policies
Scenario (NPS)2
In our analysis for impacts on our clients’ business, we employed two scenarios: a static scenario
which assumes that no attempt is made to transform the present business structure, and a
dynamic scenario under which the business structure is transformed.

Targeted sectors

Electric utilities and oil, gas & coal sectors in Japan

Period2050 (while the IEA scenario is until 2040, the period for this analysis is until 2050)

Credit costs

Increase of approx. ¥120 billion (dynamic scenario) to ¥310 billion (static scenario)

Implications andnecessary actions

Physical risk

Overview

 his analysis reaffirms the importance of addressing this issue starting now in anticipation ofT
medium- to long-term effects as the transition toward a low-carbon society progresses.
Further strengthening engagement with clients and responding with a deep understanding of
their challenges and needs will allow us to capture business opportunities and strengthen risk
management.

ScenarioIntergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathway (RCP)
8.5 scenario (4°C scenario)/RCP 2.6 scenario (2°C scenario)

Details of analysis

We employed a Monte Carlo simulation to calculate the rates at which typhoons and otherstorms cause wind and water-related building loss or damage. We then analyzed the potential
direct (collateral value) and indirect (business stagnation) impacts on Mizuho’s credit costs fromthe loss or damage of mortgaged real estate (buildings) in Japan.

Target of analysis

Japan only, for impact of business stagnation this is based on the location of the client’s
headquarters (this analysis targeted middle-market firms and SMEs)

Credit costs

Direct impacts (impact on mortgage lending value): limited
Indirect impacts (impact of business stagnation): ¥52 billion at mostImplications

The analysis confirmed that there will not be a significant impact compared to our income during
the period.

1. Sustainable Development Scenario (SDS): Scenario under which advancement of low-carbon holds the increase in the global average temperature to below 2°C.
2. New Policies Scenario (NPS): Scenario which assumes that the measures pledged to under the Paris Agreement are put into place.

Risk management Strengthening the management of climate change risks
Management of top risks
Until recently, we have monitored financing and investment from the perspective of environmental and social responsibility in ourmanagement of “top risks”, which are risks recognized by management as having major potential impact on the group.
We now position climate change risks as “emerging risks”, which we define as major risks that must be addressed in the next few
years despite the fact that materialization of the risks will occur over a medium- to long-term time frame, and we have begun
periodic monitoring of related indicators.

Indicators and targets Setting of targets pertaining to risks and opportunities

2020 Integrated Report64Our strategies for creating value

Status of Mizuho’s response to TCFD Recommendations
The TCFD Recommendations call for disclosures on governance, strategy, risk management, and metrics and targets relevant toclimate change-related risks and opportunities. The current status of our response to the TCFD Recommendations is as follows.

TCFD Recommendations

Status of response at Mizuho

Governance

Disclose the organization’s governance around climate-related risks and opportunities.

a) Describe the board’s oversightof climate-related risks andopportunities.
b) Describe management’s role inassessing and managing climaterelated risks and opportunities.

Strategya) Describe the climate-related risks
and opportunities the organization has
identified over the short, medium, andlong term.
b) Describe the impact of climaterelated risks and opportunities on theorganization’s businesses, strategy,
and financial planning.
c) Describe the resilience of theorganization’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario.

 e have identified key sustainability areas, including responses to climate change, and incorporated themW
into our 5-Year Business Plan, based on deliberation by our Executive Management Committee and Board of
Directors, to advance our sustainability initiatives as an integral part of our strategy. We review these on anannual basis.
We have established an Environmental Policy, and we assess our progress on environmental initiatives,
including the status of our response to the TCFD Recommendations, under the oversight of the Board of
Directors.
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning where such information is material.
 identified climate-related risks and opportunities for each in-house company, unit, and group whenWe
designing our business plan.
We have conducted a qualitative evaluation of climate change-related opportunities, transition risks, andphysical risks in each sector, as they will unfold over short-, medium-, and long-term time frames.
We have identified the following climate-related risks and opportunities and impacts on business activities,
and we have strengthened our structure for promoting sustainable business group-wide to support thetransition to a low-carbon society. We actively promote financial products and services that help mitigate
climate change or facilitate adaptation to it and, at the same time, conduct appropriate risk management
based on international concerns, trends, and other factors.
Opportunities− Increased business opportunities to provide financing for renewable energy projects or solutions for clients’efforts to transition to a low-carbon society.
− Enhance our reputation in capital markets and society at large through appropriate initiatives anddisclosures.
Risks− We are taking into account both transition risks and physical risks.
− Our transition risks include credit risk related to financing and investment clients who are impacted bymore stringent carbon taxes, fuel efficiency regulations, or other policies or by delays in shifting to lowcarbon and other environmental technologies. Our transition risks also include operational risk related to
reputational damage from financing fossil fuel projects.
− Our physical risks include operational risk related to the possibility of extreme weather causing damage to
our assets (such as data centers) and credit risk related to customer assets (such as real estate collateral).
Scenario analysis− Under the definition from the TCFD Recommendations, our credit exposure in carbon-related sectors(electric utilities and oil, gas & coal sectors) comes to 7.3% of our total credit exposure.
− For transition risks, we estimated our increase in credit costs through 2050 at approximately ¥120 billion
to ¥310 billion, based on a performance outlook utilizing the International Energy Agency’s Sustainable
Development Scenario to analyze the electric utilities and oil, gas & coal sectors in Japan.
− For physical risks, we analyzed the impact on our credit costs through 2050 of typhoons and other storms
causing wind and water-related loss or damage to mortgaged real estate (buildings) in Japan andconsequent business stagnation, and we found that the impact would be limited to ¥52 billion at most.
Underlined portions indicate initiatives that we have enhanced since our previous disclosure in July 2019.

65

Mizuho Financial GroupOur strategies for creating value Sustainability

TCFD Recommendations

Status of response at Mizuho

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks.

a) Describe the organization’s processes
for identifying and assessing climaterelated risks.

Identification of climate change risks and integration with comprehensive risk management− By identifying physical and transition risks resulting from climate change and integrating them into ouroverall risk management framework for credit, operational, and other types of risk, we are ensuring
comprehensive risk management.
Management of top risks− Until recently, we have monitored financing and investment from the perspective of environmental andsocial responsibility in our management of “top risks”, which are risks recognized by management as having
major potential impact on the group. We now position climate change risks as “emerging risks”, which we
define as major risks that must be addressed in the next few years despite the fact that materialization of therisks will occur over a medium- to long-term time frame, and we have begun periodic monitoring of related
indicators.
Reviewing our policies in light of climate change risks− We managed relevant risks through reviewing our Environmental and Social Management Policy for
Financing and Investment Activity (e.g. tightening our policy on coal-fired power generation), conducting
due diligence based on the Equator Principles, and through engagement with clients.

b) Describe the organization’s processes
for managing climate-related risks.
c) Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organization’s overall risk
management.

Metrics and Targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities
where such information is material.

a) Disclose the metrics used by theorganization to assess climate-relatedrisks and opportunities in line with
its strategy and risk management
process.

Targets− Sustainable finance & Environmental finance targets− Target to reduce the outstanding credit balance for coal-fired power generation facilities− Target to reduce our own environmental footprintb) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.
c) Describe the targets used by theorganization to manage climaterelated risks and opportunities andperformance against targets.

Monitoring indicators− Scope 1 (direct) and Scope 2 (indirect) CO2 emissions and energy usage; Scope 3 (business travel) CO2
emissions and environmental footprint from new large-scale power generation projects (amount ofcontribution to CO2 emissions)− Environmental conservation associated with new large-scale power generation projects (amount ofcontribution to CO2 emission reductions) e are also continuing discussions on Science Based Targets (SBTs), including participating in the SBTi
W
road testing for financial institutions where we provided opinions on issues with SBT setting methods.
Underlined portions indicate initiatives that we have enhanced since our previous disclosure in July 2019.

Publication of first TCFD Report
In May 2020, we published our first TCFD Report, compiling more detailed informationin line with the TCFD Recommendations. Going forward, we will work to further
enhance our disclosures while utilizing international disclosure frameworks.
https://www.mizuho-fg.com/csr/mizuhocsr/report/index.html

2020 Integrated Report

66

67

Mizuho Financial GroupFoundations for our corporate value

Corporate governance����������� P. 69
Dialogue between the Group CEO andChairman of the Board of Directors��� P. 79
Risk governance��������������� P. 83
Compliance������������������ P. 89
Fiduciary duties���������������� P. 92
Compliance with international
financial regulations������������� P. 93
Stakeholder communication������� P. 94

2020 Integrated Report68Foundations for our corporate value

Corporate governanceAs the group’s holding company, Mizuho Financial Group is conducting management that contributes to the creation ofvalue for our diverse stakeholders, realizing improved corporate value for the group through continuous and stablecorporate growth, and as a result, contributing to economic and industrial development and the prosperity of society
inside and outside of Japan. With this goal, we have established our corporate governance system with the Board of
Directors at its core, and are working to further enhance our corporate governance.

Basic policy regarding Mizuho Financial Group’s corporate governance system
Ensuring the separation ofsupervision and management

Secure the effectiveness of corporate governance by ensuring the separation of supervision and management
and making supervision of the management, such as the execution of duties by executive officers, the primary
focus of the Board of Directors

Delegating decisions on businessexecution to the executive officers

Make it possible for the management to make swift and flexible decisions and realize expeditious corporate
management by enabling the Board of Directors to delegate decisions regarding business execution to the
executive officers

Securing independence ofmanagement supervision

Utilize committees and other forms of oversight, comprised mainly of outside directors who are not membersof the management of Mizuho, and secure transparency and fairness in decision-making processes regarding
the appointment and dismissal of, and compensation for, the management as well as ensure effective
supervision of the management

Adopting global standards

At the holding company level, actively adopting operations and global best practices regarding corporate
governancePrincipal features of Mizuho Financial Group’s corporate governance system
Organizational structure

Fairness and transparency

Adopted a Company with Three Committees model of corporate governanceThis structure consists of a Board of Directors, Nominating Committee,
Compensation Committee, and Audit Committee, and enables executive
officers to perform their duties most effectively.

The members of the Nominating Committee and the Compensation
Committee shall all be outside directors.

The chairman of the Board of Directors shall be an outside director.

The Chairmen of the Nominating, Compensation, and Audit Committees
shall be outside directors.
Decision-making regarding the appointment and dismissal of, andcompensation for, the management is primarily conducted by outside
directors.
Appropriate disclosure in line with Japan’s Corporate Governance CodeCompliance with Japan’s Corporate Governance Code
Our Corporate Governance Guidelines set out the fundamental perspectives regarding corporate governance at Mizuho,
and the framework of the corporate governance system, including the roles, composition, and governing policies regarding
the Board of Directors, executive officers, Nominating Committee, Compensation Committee, and Audit Committee forMizuho Financial Group as a Company with Three Committees.
In addition, the Corporate Governance Report, which sets out the status of the corporate governance system of the group,
is submitted to the TSE and posted on the websites of the TSE and Mizuho Financial Group.
Corporate Governance Guidelines
https://www.mizuho-fg.com/company/structure/governance/pdf/g_guideline.pdf

69

Mizuho Financial GroupCorporate Governance Reporthttps://www.mizuho-fg.com/company/structure/governance/pdf/g_report.pdf

Foundations for our corporate value Corporate governanceCorporate governance system
We have adopted a Company with Three Committees model of corporate governance with the belief
that, under the current legal system, this model is the most effective as a means of realizing theobjectives of our basic policy regarding Mizuho Financial Group’s corporate governance system.
Mizuho Financial Group

General Meeting of Shareholders
Supervision

Determines the content of proposals regarding the appointment
and dismissal of directors

Appointment of directors

Note: The persons appointed as chairs of the Nominating,Compensation, and Audit Committees are outside directors.

Board of Directors
Outsidedirectors:

Nominating
Committee

All members, in principle, shall be outside directors.

Chairman

Determines
compensation

Internal non-executive
directors:

Audits theexecution ofdutiesThe Chairman shall, in principle, be an outside director.
Non-executive directors shall comprise a majority ofthe directors.

 omposition of the Board ofC
Directors
6 outside
directors

5 directors who
concurrently
serve asexecutive
officers

Human Resources Review Meeting
Determines the compensationfor each individual director andexecutive officer

Compensation Chairman
Committee

Internal directors who
concurrently serve as
executive officers:

All members, in principle, shall be outside directors.

Audit
Committee

Audits the legality andappropriateness of theexecution of duties by directors
and executive officers

Chairman

The majority of members shall be outside directors.

8 non-executive
directors

7 internal
directors

Risk Committee

Outside Director Session●

Determines the content ofproposals for the General
Meeting of Shareholders regarding
the appointment and dismissalof directors

ChairmanAppoints and dismisses executive officers●

Delegates decisions on business execution●

Supervises the execution of duties

Management

Executive
officers

Audits the execution of duties byexecutive officers

Determines the compensationfor executive officers

President & Group CEO
Makes decisions on business execution, based on delegation from the Board of Directors,
and implements business execution

Tenure of directors
Less than 3 years:

8 directors

3 years or more but
less than 6 years:

3 directors

6 or more years:

Mizuho Bank
Mizuho Trust & Banking
Mizuho Securities

2 directors

General Meeting of
Shareholders

Board of Directors

Audit and Supervisory
Committee

Collaborate

Directors
Appointment or dismissal of directors
Mizuho Financial Group’s Nominating Committee selects director candidates. The
requirements that these candidates must satisfy in order to be considered for an
appointment consist of criteria that include qualities such as high integrity and deep insight,
high ethical standards, and commitment to compliance with laws and regulations, inaddition to criteria regarding capabilities, utilizing their extensive experience and knowledge
which we expect will enable them to contribute to Mizuho’s continued and stable growthand improvement in corporate value.

 verview of IndependenceO
Standards
For Mizuho Financial Group’s
Overview of IndependenceStandards of Outside Directors,
please refer to our website:

 ttps://www.mizuho-fg.
hcom/company/structure/
governance/pdf/o_director.
pdf

Additionally, outside director candidates must meet criteria regarding the ability to perform
supervisory functions in specific areas of expertise, such as corporate management, law,financial accounting, and macroeconomic policy (finance, industry, etc.).
The Nominating Committee also may submit as an agenda item for deliberation at theGeneral Meeting of Shareholders a proposal to dismiss directors if there are objective andreasonable grounds for determining that they have become unqualified in respect of therequirements and it is deemed that they are no longer capable of being entrusted with theperformance of director duties.

2020 Integrated Report70Foundations for our corporate value

Outside directors
Outside directors and reason for their appointment
Name

Reason for appointment as an outside director

Three statutory
committees
Nominating Compensation

Tetsuo Seki

Expected to contribute to (i) strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors and (ii) Mizuho
Financial Group’s effort to further enhance internal control systems and group governance,
leveraging his extensive experience and deep insight as a top executive.

Tatsuo Kainaka

Expected to contribute to (i) strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors and (ii) the further
enhancement of the corporate governance, compliance, and risk management system ofMizuho Financial Group, leveraging his extensive experience, deep insight, and high level ofexpertise as a prosecutor, judge, and attorney-at-law.

Yoshimitsu
Kobayashi

Expected to contribute to strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors, leveraging his
extensive experience as the CEO of a global company and his deep insight into corporate
governance.

Ryoji Sato

Expected to contribute to strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors, leveraging
his extensive experience, deep insight, and high level of expertise as a certified public
accountant.

Masami
Yamamoto

Expected to contribute to strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors, leveraging his
extensive experience as the CEO of a global company and his deep insight and expertise intechnology fields.

Izumi Kobayashi

Expected to contribute to strengthening the effectiveness of both the decision-making
and supervisory functions of Mizuho Financial Group’s Board of Directors, leveraging her
extensive experience and deep insight as a representative director of both a Japan-based
global financial institution and an international institution.

*The fields in the chart above are not representative of all of the areas of expertise the directors possess.

Audit

Fields where directors are especially
expected to contribute*
Corporate
Management

Law

Financial
Accounting

FinanceTechnology

Chairman

Director training
We provide our directors with opportunities to acquire and improve knowledge that is necessary to fulfill their expectedroles and duties, at the time of appointment and continuously thereafter.

1

Offering all directors
opportunities for acquiringknowledge and selfimprovement• Training is provided for newly

appointed directors, mainly regarding
the duties and responsibilities of
directors, and is conducted by anoutside instructor (lawyer).

• Directors gain an overall perspectiveof the management of the group by
discussing various proposals, reports,
and other activities in the Board of
Directors’ meetings.

• Training is also held and conductedby an outside instructor regarding
compliance and customer protection
and awareness of human rights
related issues.

• When necessary for the performanceof duties, directors in charge ofvarious areas make individual
presentations; advice and instruction
is provided by external specialists, andtraining is provided (at the company’s
expense).

71

Mizuho Financial Group2

Opportunities to acquire and improve knowledge for outside directors

At the time of appointment
Improving understanding of the group’s
financial and other businesses• Intensive explanation at the time of

appointment will be conducted individuallyfor newly appointed outside directors.
− Explanations from executive officers incharge of different business areas andthe General Manager of the Corporate
Secretariat regarding Mizuho’s Corporate
Identity, business domain, businessstrategy, business plan, finances,
corporate governance system, etc.

Post-appointment (the examples below were conducted for fiscal 2019)
Deepening understanding concerning Board of Directors’ proposals• Providing for thorough explanations of Board of Directors’ proposals in advance andfollow-up (after each Board meeting)

Improving communication at times other than the Board of Directors’ meetings• Outside Director Session− At which outside directors mutually exchange information and share theirunderstanding while exchanging opinions on the progress of our 5-Year Business Plan
and current management issues (held twice).

• Off-site meetings on management issues (held 14 times between April 2019 and March
2020)• Lunches following the Board of Directors meetings and receptions and dinners foroutside directors and executive officers− Meetings to acquire necessary knowledge though the exchange of information with
the internal directors
Other opportunities to acquire/enhance knowledge• Watching the Group-wide General Managers’ Meeting• On-site observations− Interviews with branch managers and exchanges of opinions with employees
conducted to deepen outside directors’ understanding of on-site circumstances
For more details please refer to P74.

Foundations for our corporate value Corporate governanceOperation of the Board of Directors and each committee
Board/Committee
Chairman
Izumi Kobayashi

Compensation Committee

Nominating Committee

Board of Directors

Chairman of the Board of
Directors

The main roles of the Board of Directors are making
decisions on business execution such as the basic
management policy, which are matters to be determinedsolely by the Board of Directors under laws andregulations, and supervising the execution of duties bydirectors and executive officers.

Number ofmeetings in
FY2019 (averageattendance)

Tatsuo Kainaka
Chairman

Masami Yamamoto
Chairman

ChairmanOperation in FY2019

10 meetings(100%)

Recognizing that FY2019 is the first year of
the 5-Year Business Plan and an important
year, during which the structuralreforms focused on three interconnectedareas, i.e., business structure, financestructure and corporate foundations,will be promoted, the Board of Directors
monitored among other aspects, theprogress of the business plan, the nextgeneration IT system, and the new HR
strategy. The Board of Directors also
discussed sustainability initiatives.

The Nominating Committee determines the content ofproposals regarding the appointment and dismissal of
directors of Mizuho Financial Group to be submitted to
the General Meeting of Shareholders. The Committee also
approves personnel matters concerning the directors of
the Three Core Companies (including the appointment anddismissal of directors and the selection of representative
directors and senior directors).

10 meetings(100%)

To establish a more effective governancesystem and strengthen the businessexecution framework led by the Group
CEO, Mr. Sakai, the Committee selected
director candidates for Mizuho Financial
Group, approved the selection of
directors of the Three Core Companies,
and performed other related duties. In
addition, the Committee discussed thestatus of the creation and operation of thesuccession plan and talent development.

The Compensation Committee determines thecompensation for each Mizuho Financial Group individual
director and executive officer as defined in the Companies
Act, exercises the approval rights held by Mizuho Financial
Group regarding compensation of each individual directorof the Three Core Companies, and determines the basic
policy and executive compensation system for Mizuho
Financial Group and the Three Core Companies.

3 meetings(100%)For the purpose of achieving thesustainable and stable growth of thegroup, the Committee discussed theideal form of executive compensationin order to maximize the roles that eachdirector and executive officer should
fulfill. The Committee also decided on
the compensation of Mizuho Financial
Group individual directors and executive
officers as defined in the Companies Act,approved the compensation of individual
directors of the Three Core Companies,
and performed other related duties.

The Audit Committee audits the execution of duties bydirectors and executive officers; inspects and monitors theestablishment and operation status of the internal control
systems of Mizuho Financial Group and its subsidiaries;
monitors and inspects the execution of duties ofexecutive officers regarding the corporate managementof subsidiaries and affiliates; and creates audit reports.
In addition the committee determines the content ofproposals regarding the appointment, dismissal, or nonreappointment of accounting auditors to be submitted to
the General Meeting of Shareholders.

16 meetings(100%)The Committee confirmed theeffectiveness of the structure for ensuring
appropriate conduct of operations(internal control system) and monitored
the 5-Year Business Plan and structuralreforms, focusing on progress in termsof financial issues, risk trends that mayhinder the realization of the plan, andother related matters.

The Board of Directors shall, in principle, delegate to the
President & CEO of Mizuho Financial Group, decisions on
business execution, excluding matters to be determinedsolely by the Board of Directors under laws andregulations, for the purpose of realizing quick and flexible
decision-making and expeditious corporate management
and strengthening the supervision of executive officers
and other personnel by the Board of Directors.

Tetsuo Seki
Audit Committee

Main roles

Three Core Companies: Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities
Please refer to P73 to 74 for efforts to improve the effectiveness of the Board of Directors and to P75 to 76 for the executive compensation system.

Major agenda items for fiscal 2019 Board of Directors’ meetings
Board of Directors’ meeting agendas

Report/Discussion

5-Year Business Plan

Mizuho’s challenges and future efforts to transition to next-generation finance

New HR strategy

HR strategy enhancing employee ambition and motivation and their universally recognizable value

Status of the next-generation IT systemproject

Completion of migration to the next-generation IT system at Mizuho Bank, preparation for Mizuho
Trust & Banking’s migration

Business performance review

Earnings performance of each in-house company and implementation of strategic measures

Evaluation of Board of Directors’
effectivenessConducted members’ self-assessments following discussions on Board of Directors’ effectivenessand future efforts

Sustainability initiatives

Annual review of management system for responsible investment and financing, status of response
to TCFD Recommendations, establishment of environmental policy, etc.

2020 Integrated Report72Foundations for our corporate value

Primary initiatives for enhancing the effectiveness of the Board of Directors
Evaluation of Board of Directors’ effectivenessTo confirm the progress and results of the reforms and to identify issues to be addressed going forward, we haveconducted annual evaluations of the effectiveness of the Board of Directors as a whole since the fiscal year ended March
31, 2015.
Mizuho Financial Group conducted an evaluation* of its Board of Directors’ effectiveness in December 2019.
*Evaluation period was from April 2018 to June 2019.

1. Evaluation framework
The Board of Directors’ effectiveness was evaluated based on Mizuho Financial Group’s Corporate Governance Guidelines.
In addition, in conducting the evaluation, one questionnaire was divided into five categories: “Structure of the Board of
Directors”, “Operation of the Board of Directors”, “Matters to be discussed”, “Status of issues raised last fiscal year”, and“Committees” (with regard to all 36 questionnaire items, the evaluation uses an absolute scale, a comparison to theprevious fiscal year (degree of improvement), and written description format)
In particular, questions related to “Necessary qualities and skills for outside directors”, “Agenda and themes to be discussed
in the future,” “Contributions of each director to the Board of Directors”, and “Whether discussion was productive andcontributions of each director with respect to establishment of our 5-Year Business Plan” utilized the written description
format.

2. Evaluation procedure
For the evaluation, an external consultant from an independent organization was used to conduct a preliminary
questionnaire involving all directors and heads of in-house companies. At the December 2019 Board of Directors’ meeting,the effectiveness of the Board of Directors and measures to be taken going forward were discussed, and self-evaluations
were conducted.
3. Outline of evaluation results
A summary of the evaluation results is as follows:
Evaluation
Structure of
the Board of
Directors
Operation of
the Board of
Directors
Matters to be
discussed
Status ofissues raised
last fiscal year

• Board composition was highly appropriate− The number of directors, the ratio of outside directors and the balance of expertise among outside
directors was appropriate.
− The experience, skills, and knowledge of outside directors were sufficient.

• The overall operation of the Board of Directors was appropriate, but there is room for improvementin the explanatory materials.
− Progress was made in terms of the number of times that Board of Directors’ meetings were held
and the effective use of the time allowed.
− The provision of information to outside directors, the agenda selection, and proceedings weredeemed sufficient.

• Improving

the qualityof discussion
in the Boardof Directors’
meetings
focusing on
fundamental
issues• The contribution of each director and the degree of substantial discussion were sufficient.

− Deliberations are sufficient based on incorporation of outside directors’ expertise and stakeholders’points of view.

• In general, improvements had been made with regard to the issues raised last fiscal year.

− Clarification of the roles of supervision and execution as well as the quality of discussion were
improved.
− Differences in perception between supervision and execution lines were reconciled in regards
to the sense of urgency and speed required on certain issues, however there is room for further
improvement.

• In general, the composition and management of and discussions at each committee were
Committees

Initiatives
toward further
improvements

appropriate.
− Continuing from last fiscal year, the committees demonstrated sufficient functions.
− Each committee will continue to further improve operational measures based on their roles.

• Continuous

monitoring of
the status ofimportant topics/
issuesSpecific measures• Further simplificationof proposal
explanations andmaterials as well as
clarification of points
for discussion• Timely monitoringof progress of andresponse to thestatus of 5-YearBusiness Plan

• Continuecommunication
between the
supervisory andbusiness execution
sides to improve
quality of discussions(Utilization of offsite meetings on
management issues)

4. Summary
With regard to the Board of Directors’ functions and corporate governance, it was confirmed that sophisticated corporate
governance has been maintained. For example, taking rigorous measures to address the issues that had been recognized
last fiscal year, the situation of which was confirmed to have improved. And in establishing our 5-Year Business Plan,internal and outside directors shared their concerns and understanding with regard to the structural reforms among other73

Mizuho Financial GroupFoundations for our corporate value Corporate governancecontributions. Based on this, steady progress was made with the effectiveness of the Board of Directors as a whole and wasaccordingly evaluated as having been secured. In the meantime, from the viewpoint of further improving the effectivenessof the Board of Directors, we will continue to make further efforts on the following two points:(1) Improving the quality of discussion in the Board of Directors’ meetings focusing on fundamental issues(2) Continuous monitoring of the status of important topics/issues
Based on this evaluation of effectiveness, we will continue to implement and consider the additional measures necessary
for the Board of Directors to demonstrate its supervisory functions to the fullest extent.

Off-site meetings on management issues
Off-site meetings on management issues serve an important function in a role that complements the Board of Directors.
Designed to enable outside directors to enhance their communications with executives, to fully understand the status ofbusiness execution, and to lead to high-quality discussions at Board of Directors’ meetings, off-site meetings are attended
by outside directors and cover themes such as topics of concern to senior management.
Fiscal 2019 initiatives and number of times held
OutlineNumber oftimes held

Overview of 5-Year Business Plan, plan to reduce cross-shareholdings, control of staffing levels, new HR
strategy, Retail & Business Banking Company and Research & Consulting Unit initiatives, current status ineach overseas region and future initiatives, etc.
Number of times held

14

Visits by outside directors to domestic branches of the Three Core Companies
In December 2019, outside directors visited multiple branches
to see the situation there following the release of MINORI, ournext-generation IT system.
At the branches, in addition to being given tours to observe
each area of business operations and conducting interviews
with branch managers, the outside directors held open
discussions with early career employees on site.
Upon completion of the site visits, outside directors shared
their honest feedback as follows:
Feedback from outside directors• I was concerned about the migration to the MINORI systembecause of the extra burden it placed on the frontlines, but was
relieved to hear that operational efficiency improved, for example
the closing of accounts for the day is faster than with the oldsystem.
• The boundaries between Mizuho Bank, Mizuho Trust & Banking,and Mizuho Securities are disappearing, and I realized that the

integrated management of the banking, trust banking, andsecurities domains is firmly established.
• Staff concerns about the transformation into next-generation
branches are being dispelled.
• Continual efforts to increase operational efficiency are essential
in order to win out over the competition.

We also heard outside directors voice the opinion that the visits provided a valuable opportunity to listen to feedback
from frontlines employees, and we will continue to implement measures designed to improve the effectiveness of theBoard of Directors in the years to come.

2020 Integrated Report74Foundations for our corporate value

Executive compensation
Basic policy
The basic policy with respect to determining individual executives’ compensation is as follows:
1) The executive compensation shall be determined based on appropriate governance and control, and function as an appropriate
incentive in order to realize management that contributes to value creation for various stakeholders and improve corporate value
through continuous and stable corporate growth based on our basic management policies under our Corporate Philosophy.
2) The executive compensation shall be based on the function and responsibility assigned to and the performance of each Officer andother factors.
3) The executive compensation shall contribute to suppressing excessive risk-taking, improving corporate value, and creating value forvarious stakeholders not only in the short-term, but also over the medium- to long-term.
4) The executive compensation shall reflect the management environment and business performance of our group.
5) The executive compensation shall enable compensation for securing expert personnel such as professionals with a competitive edgein the market.
6) The compensation system and standards shall be timely and appropriately reevaluated and set at a competitive and appropriate
standard based on such factors as economic and social conditions and survey data with respect to management compensation
provided by external specialized organizations.
7) Regulations, guidelines, etc., concerning executive compensation, both in Japan and overseas, shall be complied with.

Compensation determination process
The Compensation Committee shall determine the executive compensation system including the compensation structure
taking into account the basic policy. In addition, in order to ensure fairness and objectivity concerning the compensationfor each officer, the Compensation Committee shall determine the compensation for each individual director andexecutive officer of Mizuho Financial Group as defined in the Companies Act and approve the compensation of eachindividual director of the Three Core Companies.
Compensation determination process diagram

Mizuho Financial Group
Compensation Committee
The members of the Compensation Committee are all outside directors(as of March 2020)

Determination of compensation

Directors and executive officers as defined in the Companies Act

President & CEO

Directors

Executive officers as definedin the Companies Act

Executive officers as definedin our internal regulations

Specialist officers

Approval of compensation
Determination ofcompensation
Approval of compensation

Directors

Executive officers as definedin our internal regulations

Specialist officers

Three Core Companies

75

Mizuho Financial GroupFoundations for our corporate value Corporate governanceCompensation system
Compensation for officers shall, in principle, consist of Base Salary, Performance Payments and Stock Compensation.
Compensation system for officers responsible for business execution1

Variable Compensation

Fixed compensation

In principle, compensation for officers responsible for business execution is composed of fixed compensation, consistingof a Base Salary and Stock Compensation I, and variable compensation, consisting of Performance Payments and Stock
Compensation II.

Base Salary

Stock
Compensation I

Stock
Compensation II

Paid on a monthly basis

Payment at time of retirement
Linked to status ofachievement of 5-YearBusiness Plan and other factors(e.g., Consolidated Net
Business Profits)
0% to 130% of standard amountfor each position

Performance
Payments

Linked to performance ofmanaged organization andother factors
0% to 170% of standard amountfor each position

Deferred
payments
over three
years

Eligible forcertainamount ofdeferred
payment

50.0%

15.0%

Can bereduced orforfeited
dependingon businessperformance

Stock
32.5%
17.5%
Cash
67.5%

17.5%

1. Directors, executive officers as defined in the Companies Act, executive officers as defined in our internal regulations, and specialist
officers of Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
2. Payment of compensation may be designed individually, taking into consideration local compensation practices and the responsibilities,business characteristics, and market value, etc., of each respective officer.

Compensation system for non-executive officers responsible for management supervision
From the perspective of ensuring the effectiveness of the supervisory function, compensation for non-executive officers
responsible for management supervision shall, in principle, be in the form of fixed compensation, consisting of Base
Salary and Stock Compensation I. Such composition shall, in principle, be 85% and 15% for Base Salary and Stock
Compensation I, respectively.

2020 Integrated Report76Foundations for our corporate value

Board of Directors

c

b

Newly
appointedagInternal director
Outside director
Director who concurrently
serves as an executive officer
Non-executive director
For further details on the
backgrounds of directors,
please refer to our website:
 ttps://www.mizuhoh
fg.com/company/info/
executives/index.html

a Tetsuo Seki
Outside director
Member of the Nominating Committee /Member of the Compensation Committee /Member of the Audit Committee(Chairman)

Career highlights

Member of the Board of Directors
Chairman (Kaicho)**Chairman (Kaicho) Sato engages in thecompany’s external activities, but does
not chair the Board meetings.
The Board meetings are chaired by the
independent director chair, Ms. Kobayashi.

Career highlights (entity)

c Yoshimitsu Kobayashi
Outside director
Member of the Nominating Committee

Career highlights

 resident & CEO (BK, CB)
PPresident & Group CEO (FG) resident, Mitsubishi ChemicalP
Holdings
Chairperson, Mitsubishi Chemical
Holdings (current)

g Hisaaki Hirama

h Izumi Kobayashii Satoshi Ishii(Chairman)

Career highlights (entity)
General Manager of Accounting
Department (FG, BK, CB)General Manager of Nagoya Corporate
Banking Department (BK)Head of Internal Audit Group (BK)

Mizuho Financial Groupb Yasuhiro Sato epresentative Director and Executive
R
Vice President, Nippon SteelPresident (Representative Director),
Shoko Chukin Bank

Member of the Board of Directors
Member of the Audit Committee /Member of the Risk Committee

77

i
h

Outside director
Chairman of the Board of Directors
Member of the Nominating Committee /Member of the Risk Committee

Career highlights
President and Representative Director,
Merrill Lynch Japan Securities
Executive Vice President, theMultilateral Investment Guarantee
Agency, the World Bank Group

Member of the Board of Directors
Senior Managing Executive Officer(Representative Executive Officer) /Executive Officer in charge of Digital
Innovation (CDIO), Head of IT Systems
Group (Group CIO), and Head ofOperations Group (Group COO)

Career highlights (entity)
Head of Human Resources Group(FG, BK)
Head of Business Promotion (BK)Foundations for our corporate value Corporate governance

e

d

f

Newly
appointed

l

j

m

k

d Masami Yamamoto
Outside director
Member of the Nominating Committee /Member of the Compensation Committee

e Ryoji Sato
Outside director
Member of the Audit Committee(Chairman)

Career highlights
President, FujitsuDirector & Senior Advisor,
Fujitsu (current)

Career highlights
CEO, Tohmatsu & Co.
Certified Public Accountant (current)

f Tatsuo Kainaka
Outside director
Member of the Nominating Committee(Chairman) / Member of the Compensation
Committee / Member of the Audit
Committee

Career highlights
 uperintending Prosecutor of the TokyoS
High Public Prosecutors Office
Justice of the Supreme Court
Lawyer (current)j Hiroaki Ehara
Member of the Board of Directors
Managing Executive Officer /Head of Human Resources Group(Group CHRO)

Career highlights (entity)
General Manager of Trust Business
Department VI (TB)
Head of Human Resources Group andHead of Internal Audit Group (TB)

k Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO(Representative Executive Officer)

Career highlights (entity)
Head of Investment Banking Unit
(FG, BK, CB)
Head of International Banking Unit
(FG, BK)
President & CEO (SC)l Makoto Umemiya
Member of the Board of Directors
Senior Managing Executive Officer /Head of Financial Control & Accounting
Group (Group CFO)

Career highlights (entity)
General Manager of Osaka Branch (BK)General Manager of Financial Planning
Department (FG, BK)

Definition of terms
FG: Mizuho Financial Group
BK: Mizuho Bank
TB: Mizuho Trust & Banking
SC: Mizuho Securities
CB: Mizuho Corporate Bank
The former Mizuho Bank and theformer Mizuho Corporate Bank
conducted a merger on July 1,
2013, whereby the former Mizuho
Corporate Bank was the surviving
company in an absorption-typemerger and changed its tradename to Mizuho Bank.

m Motonori Wakabayashi
Member of the Board of Directors
Senior Managing Executive Officer /Head of Risk Management Group(Group CRO)

Career highlights (entity)
General Manager of Industry Research
Department (BK, CB)Executive Officer in charge ofBanking (BK)Head of Research & Consulting Unit
(FG, BK)

2020 Integrated Report78Foundations for our corporate value

Dialogue between the Group CEO and Chairman of the Board of Directors

Continuing to create lasting value
Mizuho’s corporate governanceGroup CEO Tatsufumi Sakai sat down with Chairman of the Board of Directors Izumi Kobayashi,
newly appointed in June 2020, to talk about Mizuho’s corporate governance and the Board of
Directors’ role going forward.
Looking back on fiscal 2019
Kobayashi:
Looking back, I think fiscal 2019 was a year that we wereable to have productive discussions at the Board of
Directors. It was the first year of the 5-Year Business Plan,
which we had been discussing since the previous fiscal
year, and because of the importance of getting the plan
off the ground we conducted focused monitoring on the
progress of relevant initiatives, mainly structural reforms.
As I also mentioned at the Board of Directors meeting,due to these efforts, in fiscal 2019 expense control andother finance structure reforms achieved a degree ofsuccess, and Consolidated Net Business Profits exceeded
targets. Seeing those and other positive outcomes, I think
the plan is off to a good start.
In addition, we addressed a significant topic: Mizuho’s
relationship with its varied stakeholders. In regard to
the shareholder proposal raised in 2019 on sustainability
and the proposal to change the body determining the
cash dividend within the Articles of Incorporation, we
continually discussed the importance of Mizuho fulfilling
its responsibility and duty to society and being moreproactive about engagement. The supervision side also
provided a number of views. Those discussions and views
contributed to Mizuho being able to deliver a stronger
message in its presentations to external stakeholders.
Sakai:
Mizuho’s Board of Directors performs its governancefunctions extremely effectively, with both the businessexecution side and supervision side remaining diligent.
On the business execution side, we discuss matters
thoroughly in advance of reporting them to the Boardof Directors, but there are many times when the Board

Tatsufumi Sakai
Member of the Board of Directors
President & Group CEO

79

Mizuho Financial GroupFoundations for our corporate value Dialogue between the Group CEO and Chairman of the Board of Directorsof Directors then gives us valuable comments andsuggestions on points that would not have occurred to us
otherwise. This helps us see things in a different way.
Kobayashi:
I think the outside directors on the board, with their wideranging experience and insights, are quite enthusiastic
about offering their views. The internal directors thentake those views seriously and apply them to businessexecution. The outside directors and internal directors
have developed that sort of trust in each other, so, evenwhile being diligent, we are still able to have a good
relationship, which enables governance improvements.
One of the unique features of Mizuho’s corporate
governance is that, in addition to the Board of Directors
meetings, there are also many off-site meetings on
management issues. In these meetings, we outside
directors have a chance to hear directly from you about
the business situation and your thoughts, to listen to
in-house company heads’ presentations on in-housecompany management and perspectives, and to receive
additional, separate explanations as needed. The meetingspromote meaningful communication and strengthen our
relationship of trust with the business execution side.
Sakai:
Mizuho’s corporate governance structure strictly separates
business execution and supervision, making executive
officers responsible for a large share of the performanceof duties. Nevertheless, we proactively share information
with outside directors on any matters requiring theirconsideration. Just as you said, I think that through thiswe have been able to develop a good relationship, one
which allows for encouraging comments on businessexecution from outside directors and for candid,
constructive dialogue at the Board of Directors.

Izumi Kobayashi
Chairman of the Board of Directors

2020 Integrated Report80Foundations for our corporate value

to venture outside Mizuho and take in some different
scenery will produce flexible new ideas and approaches
for use in Mizuho’s business. In the 5-Year Business Plan,
we put forth “Open & Connected” as one of our action
principles and called for creating new value incorporating
both financial and non-financial products and services.
External concurrent assignments are an initiative well
suited to this.
We will endeavor to develop our talent as a unified groupand make those efforts a driver of our 5-Year Business
Plan.

The Board of Directors’ role going forward

The power behind Mizuho’s corporate value
Kobayashi:
Last December, in my capacity as outside director, I visited
branches in Japan and talked with early career employees.
In these and other conversations I had with early career
employees and female employees, I could see that they
have high expectations for the new HR strategy and aredetermined to move forward despite the challenges they
face. I also met with employees working together asteams across banking, trust banking, and securities andemployees striving to develop their individual expertise,
all of whom impressed me with their potential as part of
the Mizuho group.
Making good use of employees with such potential iscritical. The key is the communication between managers
and their employees, as well as the HR system. Whenmanagers can ease employees’ concerns about the futureand support them in taking on new challenges, basedon an understanding of the new HR strategy framework,
employees are better able to develop professionally.
Each employee finding satisfaction in their new roles
and pursuing their own development furthers Mizuho’s
growth. That is the core of the 5-Year Business Plan.
Sakai:
I can feel that the transition to our new HR strategy isreally changing employees’ mindsets. To give an example,
in order to create opportunities for employees to takeon challenges and exercise their skills outside Mizuho,
we began allowing external concurrent assignments,and many employees have been applying for them.
Finance is an extremely traditional and orthodox fieldwith a conservative-leaning culture. Allowing employees

81

Mizuho Financial Group

Kobayashi:
Under the 5-Year Business Plan, transformation towards
a new approach to business operations has been moving
forward, and the shift to next-generation branches has also
begun. While the plan has been progressing, the global
outbreak of COVID-19 has been having unpredictable andsizeable impacts on people’s ways of living and working.
The situation is very serious worldwide, but the changes
taking place in the configuration of the economy andsociety also bring with them substantial opportunities.
There is no question that we are beginning to get a senseof what Mizuho must consider and do in order to create
sustainable value in the post-COVID-19 “new normal”.

Foundations for our corporate value Dialogue between the Group CEO and Chairman of the Board of Directors

Changes in the business environment may lead tochanges in various stakeholders’ perspectives, which will
have implications for Mizuho’s approach to engagement.
This new era is again calling into question the conditionsfor Mizuho to continue creating lasting value, is it not?
Sakai:For Mizuho to continue creating lasting value for our
stakeholders in these times of change, we must be willingto confront a variety of changes and undertake ourstructural reforms with a strong commitment.
I hope you will continue giving us your invaluable advice
so that we may transition to the next generation offinancial services and build a stronger and more resilient
financial group that our customers can depend on in the
coming era.
Kobayashi:
In June, we welcomed new directors and began a
new structure for the Board of Directors. To facilitate

the response to the post-COVID-19 world, we haveoutside directors with progressive outlooks on business
management. I think the membership is very appropriate
for the situation. Considering COVID-19 as a starting point,
I would like business execution and supervision to beattentive to a wider range of risks, opportunities, and timespans; to discuss Mizuho’s unchanging responsibility andduty to society, its steady implementation of the 5-YearBusiness Plan, and its pursuit of new challenges; and towork in unison towards Mizuho creating even greater
value.
Since Mizuho transitioned to a “company with threecommittees” model of corporate governance in 2014,
an outside director has served as the Chairman of theBoard of Directors, and Mizuho’s corporate governancehas steadily evolved. With the robust governance thathas been developed to this point as a foundation, I will
do my utmost as Chairman to chart a path to the future
for Mizuho while advancing further corporate governanceimprovements.

2020 Integrated Report82Foundations for our corporate value

Risk governanceRisk governance overview
Risk governance is a part of Mizuho’s corporate governance framework, centered on our risk appetite framework (RAF).
The Board of Directors determines fundamental matters regarding the RAF, along with its management systems andspecific risk appetites, and incorporates these in document form as the risk appetite statement (RAS).
At Mizuho, we also work to foster and promote a sound risk culture to support this risk governance framework. The
effective administration of the RAF leads to the creation of a sound risk culture, and at the same time, cultivating a soundrisk culture creates a foundation for the disciplined risk-taking and risk communication which are promoted as part of theadministration of the RAF.
To ensure strong risk governance, we maintain a risk management and compliance structure that operates in accordancewith the principles of the “three lines of defense.”

Risk culture
We foster a sound risk culture in which all executive
officers and employees maintain a high level of awarenessregarding risk, and endeavor to make proper judgments
and take appropriate actions rooted in good sense andethical standards. Such judgments and actions allow us toachieve our risk appetite and enhance our corporate
value.
We have also established Behavioral Guidelines for a
Sound Risk Culture, and work to ensure that executive
officers and employees understand these principles
through messages from senior management, training
sessions and other measures. For Mizuho to put the“customer first principle” into practice and enhance ourcorporate value, it is essential that all members maintainan attitude of not simply avoiding risk, but rather taking

appropriate risk. These guidelines provide a foundation
for the appropriate values and courses of action for
Mizuho’s executive officers and employees to take whenapproaching risks. The guidelines are aligned with the fiveMizuho Values that form a part of Mizuho’s Corporate
Philosophy, and executive officers and employees canrefer to them when they are unsure of a risk-related
judgment that needs to be made in their daily work.
Putting these guidelines into practice improves our ability
to address and counter risks, and fosters a sound risk
culture.
These initiatives are also important from the standpoint ofinternal control, ultimately helping to prevent
inappropriate behavior by executive officers andemployees.

Risk appetite framework (RAF)
The purpose of our RAF is to maximize our corporate
value by securing sustainable and stable profits, and tofulfill our social responsibilities. Based on such purpose,
our core risk appetite is to take appropriate risk andprovide solutions based on our customers’ actual needs,
establishing our competitive advantage against our peers.
We have positioned the RAF as the corporate
management framework to support taking the types andlevels of risk that we will accept in order to implement our

83

Mizuho Financial Groupbusiness and financial strategies. We will further
concretely define our risk appetite in our medium-term
and fiscal year business plans. The risk appetite forms thebasis for establishing our business strategy, resource
allocation, and earnings plans as well as monitoring theoperating status, thus integrating risk management,
business strategy, and profits in order to achieve
disciplined risk-taking that achieves an optimal balance ofrisk and return.

Foundations for our corporate value Risk governance

Systems for operating the risk appetite framework
Our risk appetite consists of a risk appetite policy thatserves as the fundamental policy regarding our risk-taking
activities, and risk appetite metrics that serve as a meansof quantifying the level of risk-taking based on the risk
appetite policy.
In implementing the RAF, the Board of Directors decides
on basic matters, including the risk appetite policy,
metrics, and levels of risk, and operations are supervised
based on the Board’s decisions. In addition, the Risk
Committee, which advises the Board of Directors,
provides advice regarding risk governance and offers
suggestions to management.

On the other hand, to implement the RAF in the course ofbusiness operations, the Group CRO, Group CFO, andGroup CSO provide assistance overseen by the Group
CEO, and implement business strategy, financial strategy,
and risk management from an overall perspective. Also,
heads of in-house companies, units, and groups are
responsible for planning and implementing strategies
based on risk appetite, and as the individuals in charge ofrisk-taking, conduct operations. Note that the Internal
Audit Group provides objective and comprehensive
assessments of the effectiveness of the RAF from an
independent perspective and offers advice andrecommendations for addressing any issues that arise.

Formulation and monitoring of risk appetite
Risk appetite is determined through management
discussions on the outlook for external factors such as themacroeconomic, regulatory, and competitiveenvironment, along with potential risk events such as
economic slowdown and turbulence in financial markets.
These are then incorporated into main and risk scenariosthat are shared internally.
We then formulate a group-wide risk appetite policy basedon our awareness of these external environments, create
specific strategies and measures according to this policy,
and determine corporate resource allocation and earnings
plans. Our risk appetite metrics are expressed in terms ofcapital strength, profitability, and liquidity, utilizing
measures such as CET1 Capital Ratio, ROE, and LCR.

Further, the risk appetite for the entire group is shared with
the in-house companies that implement strategies, to ensure
the effectiveness of the RAF. The in-house companies in turnformulate individual risk appetite policies to implement thegroup’s overall policy, and set risk appetite metrics andlevels to meet group metrics and levels.
Monitoring of the operational status for the establishedrisk appetite is conducted by the Risk Management
Committee (Chairman: Group CRO) on a quarterly basis
and as necessary. As part of this process, the Group CRO
and each in-house company work to identify issues
related to risk and share information on these issues. This
monitoring enables timely and appropriate actions,
including flexible revisions to our risk appetite andstrategies, to be discussed and carried out in the event ofchanges in the external environment that increase risk or
impede our risk appetite and strategies.

Mizuho’s RAF Control Structure

Supervision

Management

Board of Directors• Determines basic matters regarding RAF and RAS• Supervises business execution by the
management based on the above determinations
Audit Committee• A udits the execution of duties by the executive
officers and the management regarding RAF
Risk Committee• Advises the Board of Directors and makes

proposals to the management regarding risk
governancePresident & Group CEO
Executive Management Committee•••

Formulates risk appetite policy
Establishes risk appetite metrics/level
Formulates RAS• Conducts business operations consistent withthe risk appetite• Embeds a sound risk culture in each line ofbusiness

Risk Management Committee (Chairman: Group CRO1)• Monitors the operation of RAF
Balance Sheet Management Committee (Chairman: Group CFO2)• Formulates and promotes balance sheet management-centered strategies related to risk
control and risk-taking

1. Group Chief Risk Officer

2. Group Chief Financial Officer

2020 Integrated Report84Foundations for our corporate value

Three lines of defense
system (second line), along with an independent third lineof internal auditing. In addition, Mizuho Financial Group
sets group strategies and allocates resources, monitoring
the autonomous controls in the first line at core groupcompanies in order to strengthen the system providing
appropriate responses.

Our definition of the three lines of defense and their roles

Our risk management and compliance framework

Internal audit function
The third line-of-defense is independent of the first and second lines
and involves assessment and examination of the operations of the firstand second lines, and is responsible for providing advice and guidance
to settle issues.

3rd line

Basic policies
Submit/report

Internal audit
Department(s)in charge of risk Internal
audit
management/compliance
Monitoring

In-house companies/unitsFirst line-of-defense
autonomous control

Internal Audit GroupInternal audit

Basic policies
Submit/report

Report regarding
the first
line-of-defense
autonomous
control
Formulatestrategies,
allocate businessresources, etc.

2nd line

The second line-of-defense oversees (monitors), measures, andassesses the first line’s autonomous control activities, and is
responsible for establishing and implementing basic policies for risk
management and compliance.

Internal Audit Group

Core group companies*

Department(s)in charge of risk Internal
audit
management/compliance
Monitoring

1st line

Risk management and compliance function

3rd line

The first line-of-defense involves daily operations based on the rules,
procedures, and risk appetite, and has a primary responsibility for risks
and compliance matters accompanying the conduct of business as arisk owner, and for performing autonomous control activities (toidentify, assess, and manage/control risks and compliance matters).

Mizuho Financial Group

2nd line

Autonomous control function

1st line

Third line

Second line

First line

In accordance with the “three lines of defense” approachin the Corporate Governance Principles for Banks
released by the Basel Committee on Banking Supervisionand the definitions and roles outlined below, we ensure
appropriate and effective risk governance throughautonomous controls (first line) and a check-and-balance

Divisions/unitsFirst line-of-defense
autonomous control* Of the core group companies, Mizuho Bank, Mizuho Trust & Banking, Mizuho
Securities, and Mizuho Americas conduct risk management and compliancebased on the “three lines of defense” concept.

Comprehensive risk management
Basic approach
For the group as a whole, in order to ensure sound andstable corporate management and enhance our corporate
value, appropriately managing risk and controlling risk
are key issues relating to overall management, andtherefore we are working to put in place risk management
systems.
Mizuho Financial Group has established basic policies forrisk management that are applicable to the group as awhole. In line with these basic policies, as a group weanalyze risk comprehensively from multiple perspectives
and adopt a variety of measures to strengthen andenhance the sophistication of our risk management
system.
We have positioned our RAF as the corporate
management framework for realizing our risk appetite aswell as comprehensive risk management as a framework
for managing risk from every angle.

Comprehensive risk management systems
We recognize that conducting operations tailored to therisks and managing such risks is a key issue relating tooverall management. In order to implement our businessstrategies while maintaining our financial stability, we
maintain comprehensive risk management and control
measures.

85

Mizuho Financial Group

Mizuho Financial Group maintains basic policies for risk
management established by the Board of Directors thatare applicable to the entire group. These policies clearly
define the kinds of risks to be managed, set forth theorganizational structure, and provide for the employee
training necessary to ensure appropriate levels of risk
management. The policies also provide for audits tomeasure the effectiveness and suitability of the
management structure. In line with these basic policies,

Foundations for our corporate value Risk governance

we maintain various measures to strengthen and enhance
the sophistication of our risk management system.

We classify and manage the risks that arise in ourbusinesses according to the various kinds of risk,
including credit risk, market risk, liquidity risk, andoperational risk. Moreover, in each of our groupcompanies we adopt the same approach of managing
risks, such as settlement risk, trust banking operations
risk, and other risks appropriately given their nature.

The Risk Management Committee chaired by the GroupCRO provides integrated monitoring and management of
the overall risk for the group. The Group CRO reports therisk management situation to the Board of Directors, theRisk Committee, and the Executive Management
Committee regularly and as necessary. In addition,
Mizuho Financial Group receives reports and applications
for approval concerning the risk management situationfrom our core group companies and gives themappropriate instructions concerning risk management as
necessary.

In addition to managing each type of risk individually, we
have established a risk management structure to identify
and evaluate overall risk and to keep risk within limits thatare acceptable.
In line with the basic policies relating to overall risk
management established by Mizuho Financial Group, we
are working to take even more proactive and sophisticatedapproaches to risk management.

For more information on our risk management, please visit our website.

https://www.mizuho-fg.com/company/internal/r_management/index.html
Mizuho Financial GroupManagement

Departments responsible for risk management

Executive Management
Committee
Business policy
committees(e.g. Risk Management Committee)

Comprehensive risks

Supervision/Audit

Credit risk
Market risk
Liquidity risk

Risk Management Department

Operational risk
Credit Risk Management
Department

Officers responsible
for riskmanagement(e.g. Group CRO)

Operational risk

Board of Directors

President &Group CEO

Credit risk

Risk Committee

Set risk management policies
Give instructions and approval concerning risk management

Mizuho Bank

Mizuho Trust & Banking

Mizuho Securities

Information technology risk

IT & Systems Planning Department

Operations risk

Operations Planning Department

Legal risk

Legal Department

Human capital risk

Global Talent Planning andManagement Department

Tangible asset risk

Facility Management Department

Regulatory risk

Strategic Planning Department

Reputational risk

Corporate Communications
Department

Report the risk management situation
Submit applications concerning risk management

Mizuho Americas

Other core group companies

2020 Integrated Report86Foundations for our corporate value

Risk capital allocation
We endeavor to obtain a clear grasp of the group’s overallrisk exposure and implement measures to make sure thisexposure is within limits that are acceptable and are inaccordance with the risk capital allocation framework.
More specifically, we allocate risk capital to our coregroup companies (including their subsidiaries) to control
risk within the limits set for each company. We also control
risk within acceptable limits by working to ensure that theoverall risk on a consolidated basis does not exceed ourfinancial strength. To ensure the ongoing financial
soundness of Mizuho Financial Group and our core groupcompanies we regularly monitor the manner in which risk
capital is being used in order to obtain an accurate graspof the risk profile within this framework. Reports are also
submitted to the Board of Directors and other committees
of each company. Risk capital is allocated to Mizuho Bank,
Mizuho Trust & Banking, Mizuho Securities, and Mizuho
Americas by risk category, and is further allocated within
their respective business units.

Framework for allocating risk capitalMizuho Financial Group (holding company)

Mizuho Bank

Risk exposure of the group

Setting of upper limits based on risk capitaland exercise of control over various risks

Allocated risk capital

Financial strengthof the group

ExamplesCapitalRisk exposure ofcore group companies*

Mizuho Bank

Mizuho Trust & Banking
Mizuho Securities

Credit risk
Market risk
Stock price risk
Operational risk

Allocatedtobusiness
units

Group companies

Mizuho Americas
Mizuho Trust & Banking

Mizuho Securities

Other risks

Mizuho Americas*Includes the risk exposure of group companies that are managed by core group companies

Top risk management87

We specify risks that are recognized to have a major
potential impact on the group as “top risks” and “emerging
risks”, and have introduced top risk management methods.
As part of our top risk management, emerging risks arethose viewed as major risks that must be addressed in thenext few years despite the fact that materialization of therisks will occur over a medium- to long-term time frame, orrisks that must be recognized even though they may
manifest over the long term.

approach, we endeavor to deepen communication
regarding risks, seek to create common perspectives
regarding risks, and work to secure consistency inawareness of various types of risks.

Based on assessments of the likelihood, impact, and othercharacteristics of monitored risks, and after careful
deliberation by management, top risks and emerging risks
are designated and managed accordingly. Through this

As of March 2020, the items in the following table havebeen designated as top risks and emerging risks. Of note,
COVID-19 is considered to be a risk event that laterally
impacts various risks.

Mizuho Financial GroupFor the top risks and emerging risks that are identified, thestatus of controls is confirmed, and, when deemednecessary, consideration is given to additional risk
controls.

Foundations for our corporate value Risk governanceTop risksWorsening credit risks
arising mainly fromglobal economic
stagnation
Sudden drop in the valueof assets arising mainly
from financial market
turbulence
Destabilization of foreign
currency procurement

Potential risks

Examples of initiatives• Slowdown of the global economy, regional economic• Specify areas of our portfolio which should be subject to stronger• Decline in stock prices, sudden fluctuations in currency values,• Set discussion points based on the market environment and• Greater-than-expected outflows of funds, deterioration in liquidity• Expand stable foreign currency funding methods• Strengthen balance sheet control by utilizing risk indicators fordeterioration, and turbulence in financial markets due to factors
such as COVID-19 and US-China trade friction• Sudden deterioration in the credit standing of obligors where weare heavily exposed and in credit standing of major clients
drying up of liquidity due to turmoil in financial markets from theimpact of COVID-19• Worsening valuation of securities due to higher interest rates
conditions due to turmoil in financial markets, and accompanying
rise in funding costs

management in light of the impacts on our clients’ businessenvironment and other factors, then record additional reserves ortake other steps as needed based on a stress analysis and future
outlook

establish a framework to enable a response at the earliest
possible stage• Implement a hedging strategy for held assets based on thefinancial impact

foreign currency liquidity• Build a framework for appropriate reporting as well as cause
Major system failure

Cyber attacks
Money laundering/
Financing of terrorism• Emergence of costs due to IT system failures, government fines,
and damage to reputation• Emergence of additional costs and damage to reputation due to• Prepare our defenses by continually strengthening• Government fines/penalties and damage to reputation because of• Continue to enhance anti-money laundering measures and othersuspension of services as a result of cyberattacks, data
falsification, information leakage, improper funds transfer, etc.

flaws in policies to prevent money laundering and financing ofterrorism

Emerging risks
Climate change risks

Strategic risks

analysis and the establishment of measures to prevent
reoccurrence following system recovery based on the rank of thesystem failure• Ensure the effectiveness of responses in the event of a system
failure via regular drills
countermeasures such as system monitoring and defence in
depth
efforts in line with laws/regulations and guidelines from Japan’s
Financial Services Agency

Potential risks

Examples of initiatives• Financial loss accompanying the stranding of our invested assets
and reputational damage• Lower profitability mainly due to intensifying competition in thefinancial industry, weak earnings for interest business from theprolonging of negative interest rate policies• Strengthen our response to the TCFD Recommendations such as
establishing an Environmental Policy, tightening our policy on
financing and investment for coal-fired power generation, andconducting scenario analyses• Promote new initiatives for the next generation of financial
services through strategic alliances and other forms ofcollaboration• Accelerate revisions to our channels via operational optimization,
strengthening consulting, etc. through use of our new corebanking system, MINORI

Note: The risks described here are only some of the possible risks we are aware of. For more comprehensive information on the group’s risks, please refer to our
Securities Report, Form 20-F, and other related documents.

Stress testing
We assess the suitability of our risk appetite and thevalidity of our business plans through stress testing,calculating and assessing the financial effect on ourcapital adequacy ratio and on our business.
We carry out stress testing based on scenarios formulated
taking into account current economic conditions andfuture outlooks, vulnerabilities in the Mizuho group’sbusiness and finance structures, and other factors. We canconfirm whether our capital adequacy ratio, performance,and other indicators are sufficient in the case that stressevents actually materialize. If such indicators fall below
the necessary level, we reconsider and revise our risk
appetite and business plans. In addition, we confirm thebalance between owned capital and risk capital, includinginterest rate risk in the banking book, at the post-stressstage to assess the adequacy of the capital level.
Furthermore, to structure robust risk management
systems, stress testing is also used to manage risk invarious risk categories, such as market risk.
This process also serves as a foundation forunderstanding the characteristics of our business portfolio
and enables planning in advance regarding the course ofaction which should be taken if a stress event occurs, andis conducted regularly to enhance our risk management
capabilities.

Mizuho’s stress testing

1. Preparing scenarios

2. Calculation of risk impact

3. Analysis and use of results• Current economic conditions and future outlook• Vulnerabilities of the group’s business and• Calculation of the impact on the group when

• Appropriateness of risk-taking and verification

financial structure

the risk scenario materializes• Main items to calculate: Capital adequacy ratio,
losses, VAR, etc.

of suitability of the business plans• Assessment of capital adequacy

Preparation of scenarios common across the group2020 Integrated Report88Foundations for our corporate value

Compliance

Compliance
As a leading Japanese financial services group with a global presence and a broad customer base, we remain conscious at all timesof the importance of our social responsibilities and duty to the public. We define compliance as the strict observance of all laws andregulations and the pursuit of fair and honest business operations that conform to socially-accepted norms, and we view ongoingcompliance as one of the basic principles of sound business management. Each of our group companies maintains their own
compliance structure in line with the basic policies established by Mizuho Financial Group.

Compliance structure

The four core group companies also have individualcompliance departments overseen by a Chief Compliance
Officer. These departments are responsible for complianceplanning and implementation and control overall compliancemanagement at each company. At each organizational unit
(such as branches and departments) within the four coregroup companies, the head of the organizational unit is
responsible for guidance and implementation related tocompliance matters, and the compliance officer or complianceadministrator at each organizational unit reviews the status ofcompliance.
Mizuho Financial Group monitors the status of complianceof the group through reports submitted by our core groupcompanies and adopts appropriate responses as necessary.
Compliance at subsidiaries of our core group companies ismonitored and managed by their respective parent company.

Compliance structure

Supervision/
audit

Mizuho Financial Group
Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: Head of the Compliance Group)Management

The President & CEO of Mizuho Financial Group, Mizuho Bank,
Mizuho Trust & Banking, and Mizuho Securities each generally
oversee compliance matters for their respective company, andimportant matters concerning compliance are discussed at theCompliance Committees chaired by the head of the relevantCompliance Group.

Group Chief Compliance Officer(Department in charge: Compliance Department)

Every organizational unit
Head of each organizational
unit

Compliance officer/
compliance administrator

Core group companies (e.g. MHBK, MHTB, and MHSC)

Subsidiaries of the above group companies

Compliance practices
We have established the Mizuho Code of Conduct whichsets forth clear and concrete standards of ethical behavior.
Furthermore, each of our group companies has also prepared
a compliance manual, which serves as a practical guidebook
for rigorous compliance enforcement and clarifies the laws andregulations that we must observe in our business operations
and the compliance practices we are required to follow. Mizuho
ensures that all executive officers and employees are fullyacquainted with both the Code of Conduct and the compliancemanual’s content through, for example, training upon joining
the company.

89

Mizuho Financial GroupWe monitor the status of compliance levels through selfassessments by each department and monitoring conductedby the compliance department of each company. In addition,
every fiscal year, each of our group companies establishes
a compliance program which contains concrete measuresfor compliance enforcement such as compliance framework
management, training, and assessments. Progress on thecompliance program is monitored every six months.

Foundations for our corporate value CompliancePreventing money laundering and financing of terrorism
Financial crime is becoming more diverse and sophisticated,
and acts of terrorism continue to occur around the world. In
light of this, anti-money laundering (AML) and combating
the financing of terrorism (CFT) are becoming increasingly
important. Against this backdrop, the key challenge for financial
institutions is the strengthening of their AML countermeasures
and CFT initiatives. As a financial services provider operating

globally, Mizuho Financial Group is subject to the laws andregulations of both Japan and the other jurisdictions where it
operates, as well as to supervision from financial regulators
based on those laws and regulations. Accordingly, we havedevised AML and CFT policies and procedures that conform to
the laws and regulations in each jurisdiction and we are also
continually enhancing our AML and CFT measures.

Our stance towards organized crime
In order to prevent organized crime from influencing themanagement of our clients and to avoid any association withthe harm caused by organized crime, the Mizuho Code of
Conduct includes a policy covering our zero-tolerance stanceon business relationships with individuals or organizations thatare in any way associated with organized crime and therefore
threaten the rule of law, public order, and safety.
We have also formed an Anti-Organized Crime Committee
which includes external experts in industry-specific, in-depth
discussions on this subject, in addition to other initiatives weare implementing on a group-wide basis to ensure that wehave no direct or indirect associations with organized crime.
Moreover, drawing on the discussions in this committee,
these matters are also discussed and reported on at meetingsof the compliance committees of Mizuho Financial Group,
Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities,
which are chaired by the President & CEOs or other senior
management members of these group companies.
Furthermore, core group companies maintain centralized
departments or appoint an officer to manage anti-organizedcrime efforts and to maintain effective frameworks, forexample, by establishing a manual on how to manage such
issues and conducting training sessions. If required, we consult
with third-party experts and authorities on the handling ofspecific cases.

Measures for ensuring compliance
At Mizuho, compliance-related education and training are key
measures for ensuring appropriate compliance.
During fiscal 2019, Mizuho provided effective training tailored
to a broad range of roles within the organization, from
employees to senior management. We conducted 12 training
sessions in total, including mandatory compliance training
sessions for all employees; role-specific training for executive
officers, general managers, deputy general managers,
compliance officers, and other senior management members;
and e-learning training sessions on specific compliance
topics.
In addition to training sessions and other programs designed
to promote compliance, we are also dedicated to detecting
potential compliance issues at the earliest stage possible

and taking appropriate action. When we become aware ofpotential compliance issues, such matters must be reported
immediately to department and branch managers inaccordance with our compliance manual. Furthermore, eachgroup company has established a hotline which employees
can call in order to speak with someone within the
Compliance Division or an external law office or complianceprofessional.
For matters related to inappropriate accounting, internal
control on financial reporting, and auditing, an internal
control and auditing hotline, which connects to an external
law office, is available to receive reports from both in andoutside the company.

Internal reporting systems (Compliance hotline)
We have a robust internal reporting system in place, and are working to further increase its effectiveness by establishing group-widereporting channels outside the workplace that are available in the evenings, on Saturdays and Sundays, and also by making suchservices available in foreign languages. To ensure that employees at each group company are fully acquainted with these systems,
hotline numbers and other relevant information is included on posters within each workplace and distributed to all employees onwallet-sized cards. In fiscal 2019, Mizuho Financial Group and our core group companies received a total of 141 reports through our
hotlines from both inside and outside the group, with the response status reported to our Audit Committee. Following inspection by
an authorized registration institute under the Consumer Affairs Agency, our internal reporting system was recognized as operating
properly and in accordance with the guidelines set by the Agency, and registered to the Whistleblowing Compliance Management
System (a Self-declaration System).

Internal control and audit hotline
Our audit hotline, which connects to an external law office, is available to receive reports from both in and outside the company in connection withconcerns regarding accounting and financial reports.

2020 Integrated Report90Foundations for our corporate value

Customer protection management
We give first priority to our customers, and we believe that earning their trust is the basis for ensuring sound management andtherefore earning the trust of other stakeholders as well. With this in mind, a core part of our compliance is to continuously seek tomonitor and improve the operations of the group from the perspective of what is in the best interests of our customers in order toensure that our operations are appropriate and to improve customer convenience. We manage customer protection uniformly
throughout the group in order to achieve this objective.

Customer protection management structure

Supervision/
audit

Mizuho Financial Group
Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: Head of the Compliance Group)Management

At Mizuho, customer protection management refers to theefforts we make to improve the protection of our customers
and improve customer convenience from the following
perspectives:
1. Ensuring the appropriateness and sufficiency of explanations
provided to customers prior to conducting transactions,purchasing products, etc. as well as the provision of
information (e.g. product explanations) to customers.
2. Ensuring the appropriateness and sufficiency of thehandling of customer inquiries, complaints, and othercommunications (customer service).
3. Ensuring the appropriateness of the management ofcustomer information (customer information management).
4. Ensuring the appropriateness of customer interaction andthe handling of customer information in cases where group
operations are outsourced (outsourcing management).
5. Ensuring the appropriateness of the management of
measures to be taken in order to address conflicts of interest
arising from transactions with customers (conflict of interest
management).
Our President & Group CEO generally oversees the
management of customer protection, and important matters are
discussed at Compliance Committee meetings (chaired by the
Head of the Compliance Group). At our core group companies,
the division responsible for each area of management
described above also provides centralized monitoring andimplementation of customer protection management. Core
group companies oversee customer protection management attheir own subsidiaries.

Officers responsible for the general management of customer protection(Department in charge: Compliance Department)

Divisions in charge

Customer protection management

Explanation of products

Outsourcing management

Customer service management

Conflict of interest management

Core group companies (e.g. MHBK, MHTB, and MHSC)

Subsidiaries of the above group companies

Information management

Customer service management

Advances in information technology have enabled greater
utilization of data. At the same time, many countries havetightened legislation protecting personal information. There has
also been closer public scrutiny of the methods companies use
to protect personal information. Mizuho is aware of the vital
importance of managing information in a way that ensuresappropriate protection and use of information assets. We areconstantly working to strengthen our information management
practices. For example, we aim to ensure that our security
management measures and information administration
methods for information assets are clear and straightforward.
Also, we implement training and awareness-building exercises
to ensure that all members of our organization have a firm
understanding regarding the proper protection of information
assets.

At Mizuho, we engage in business with a wide range ofcustomers, and we put a strong emphasis on responding
appropriately to feedback, complaints, or other communicationfrom customers in addition to our efforts to offer customers
stronger protections and higher convenience.
In the case of receiving a complaint or other critical feedback,
we not only emphasize the importance of responding quickly
and politely, but also require reports to be drawn up in order tomonitor these situations.
Furthermore, we regard all customer feedback as an important
asset and work continuously to improve our operations andprevent the recurrence of issues with the aim of increasing
customer satisfaction.
For more information on Mizuho’s customer protection measures, pleasesee our website:
https://www.mizuho-fg.com/company/internal/customer/

91

Mizuho Financial GroupFoundations for our corporate value

Fiduciary duties**F iduciary duties is a general term for the broad range ofroles and responsibilities that fiduciaries are expected
to fulfill when engaging in certain business activities inorder to live up to the trust that is placed in them by
their customers.

Mizuho’s Corporate Identity includes our central values—the Mizuho Values—starting with putting our customers first, and thesevalues are shared by everyone at Mizuho. As a team of financial professionals providing a broad range of financial services, we arecommitted to providing the best, most appropriate solutions in response to our customers’ diverse needs.
We have released Policies Regarding Mizuho’s Fiduciary Duties as group-wide policies which ensure that through our asset
management-related businesses we offer products and services that are in the best interest of our customers and that we continue
to be our customers’ most trusted financial services partner and long-term partner. In addition, at the holding company and relevantgroup companies, we have established and made public specific action plans for ensuring we are always aligned with customers’
best interests.
For more information on Policies Regarding Mizuho’s Fiduciary Duties, please see our website:
https://www.mizuho-fg.com/release/pdf/20170330_2release_jp_1.pdf

Our commitment to fulfilling our fiduciary duties tocreate shared value between customers and Mizuho

Key Performance Indicators (KPIs)

Through fulfilling our fiduciary duties, Mizuho aims to ensure
a high level of customer satisfaction and to earn the trust ofcustomers by increasing their financial assets in the medium tolong term.

With the objective of creating shared value with our customers,
we have established KPIs to confirm our level of performanceof our fiduciary duties, and we announce them periodicallyalong with the status of initiatives under our Action Plan.

At the same time, by expanding our business base andestablishing a brand built on customer satisfaction and trust,
we aim to create shared value with our customers that will also
lead to medium- to long-term growth for Mizuho, which willallow us to further enhance the level of customer service weprovide.

Creating shared value with our customers
Fulfilling our fiduciary duties

Positive and trustworthy public image

Results

MizuhoCustomers

MizuhoProviding optimal financial products andservices to customers
Pursuing our customers’ best interests

Increase in financial assets over the medium to long term

Medium- to long-term growth

Creating
shared value
Enhancing customer satisfaction and trust

Expanding customer base andstrengthening our brand

Key Performance Indicators (KPIs)
Number of personnel with professional qualifications
Number of products developed or improved
Numberof companies involved in our engagement
activities
Total number of seminar attendees
Number of funds with a rating of 4 stars or higher
Numberof participants enrolled in financial education
coursesCustomer satisfaction surveys
Number of fund awards
Survey of satisfaction among investment trust
companies

Balance of assets under management
Number of customers using our investment
products
Balance of pension trust assets
Balance of funds in publicly offered and privately
placed investment trusts
Balance of funds invested in DC specialized funds
and long-term investment focused funds
Balance of new publicly offered investment trusts
under administration

In addition to the Key Performance Indicators listed above, the following common KPIs have also been released.
Common KPIs Common KPIs (1) Ratio of customers receiving different percentage ranges of returns for investment trust funds/fund wraps, (2) Cost vs. return of the best-selling investment products in terms of
the balance of investment trust assets under management, (3) Risk vs. return of the best-selling investment products in terms of the balance of investment trust assets under management

Common KPIs are indicators based on the Common Key Performance Indicators (KPIs) Comparable Across Investment Trust Distributors published by Japan’s Financial
Services Agency in June 2018.

Earned S score in R&I Customer-Oriented Investment Trust Sales Company Evaluation
Mizuho Financial Group, Mizuho Bank, Mizuho Trust& Banking, and Mizuho Securities, as part of ourefforts to obtain third-party objective evaluationsof our initiatives for our fiduciary duties, requested
Rating & Investment Information (R&I) to assess us
through their new Customer-Oriented Investment
Trust Sales Company Evaluation.

We received the results in January 2020. All four
companies earned an S score, placing them in the
top tier of companies in the industry.

The R&I Customer-Oriented Investment Trust Sales Company Evaluation (“this evaluation”) represents R&I’s opinion on the “customer-oriented business operations” initiatives of sales companies engaged in the investment trust sales
business, and is not a statement of fact. The information used by R&I in conducting this evaluation is deemed to be reliable by R&I at its discretion, but R&I does not independently verify the accuracy of such information. In addition,
R&I and others do not guarantee the accuracy and completeness of the information, and do not recommend the purchase, sale or holding of specific products or guarantee future performance. All intellectual property rights such as
copyrights related to this evaluation and all other rights belong to R&I and are prohibited from reproduction or reprinting without permission. The evaluation of Mizuho Financial Group combines the evaluations of Mizuho Bank, Mizuho
Trust & Banking, and Mizuho Securities.

2020 Integrated Report92Foundations for our corporate value

Compliance with international financial regulations

Basel standards

Globaldevelopments

The Basel standards, a unified international regulatory framework for ensuring the soundness of banking institutions, were first createdin 1988 (now referred to as Basel I). As the financial services industry and world affairs have developed, steps have been taken to
steadily enhance this framework. Formulated in 2010, Basel III is a framework that tightened capital requirements along withintroducing liquidity requirements to address issues that came to light in the 2008 global financial crisis. Regulatory reforms following
the financial crisis were largely completed in 2017 (Basel III finalization) with reforms aimed at reducing discrepancies among banks
regarding the calculation of risk-weighted assets (RWA, which is the denominator of the capital ratio). The Group of Central Bank
Governors and Heads of Supervision (GHOS) agreed to postpone the initial schedule for implementing Basel III finalization by one year
due to the COVID-19 outbreak, with this being phased in between 2023 and 2028.

1982 Latin American debt crisis

Increase in trading activity

1988

1996

• I ntroduction of the capital ratio arket risk incorporated into•M

Basel I

Basel I
RWA calculation

Increasing diversity andcomplexity of financial systems
More sophisticated risk
management systems

2008 Global Financial Crisis

2004
Basel II

2010

2017

Basel 2.5

• A llowing the use of banks’internal credit ratings in RWA
calculation

 perational risk incorporated•O
into RWA calculation

2009

2019

Basel III finalization• T ightening of requirements• R eview and revision of RWA calculation

regarding capital charges forsecuritized products and market
risk

methods• Introduction of output floor (establishment of afloor for RWA calculated using internal models)Completion of remaining Basel III tasks

Basel III• S trengthening qualitative andquantitative requirements for capital(numerator of the capital ratio)• Introduction of leverage ratio andliquidity requirements• F inalization of minimum capital requirements formarket risk

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

Capital ratio
Leverage ratio
Liquidity
coverage ratio
Net stable
funding ratio

Capital
RWA (which are calculated by taking account of the risk of assets held)

CapitalExposure (calculated without taking account of the risk of assets held)

Stock of high-quality liquid assets
Total net cash outflows under severe stress conditions
over a specified short-term period (30 days)

Available amount of stable funding(capital, deposits, market funding, etc.)
Required amount of stable funding (loans, securities, etc.)

International financial regulations going forward
With the completion of the post-global financial crisis
regulatory reforms, the Financial Stability Board andthe Basel Committee on Banking Supervision, which
are responsible for developing international financial
regulatory standards, are turning their attention to newareas. Specifically, they have shifted their focus fromdeveloping new regulatory standards to consistent
implementation of regulations in individual countries
and evaluating the impact of regulatory reforms (e.g., arethey having the intended effect without compromising
regulatory resilience).
In addition, the environment that financial institutions
operate in has reached a critical turning point, including
rapidly accelerating digitalization and increasing societal

93

Mizuho Financial Group

interest in sustainability. There is growing attention to theopportunities and risks that new trends such as fintech
and stricter approaches to responsible financing thattake into account climate change present to banks andfinancial systems. This has led to an uptick in international
discussions about these issues. For example, the Financial
Stability Board has prioritized looking at “new risks” suchas concerns over cyberattacks due to the spread of fintech
and how to coexist with BigTech companies.
To address these various risks, we will work closely withgovernment, academia, and industry, while also holding
proactive internal discussions.

Foundations for our corporate value

Stakeholder communication

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

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

Customers

Government
authorities

Shareholders

Suppliers/
competitors

Employees

Regional/local
communities

Principal communication channels

Customers

Customer feedback cards, customer satisfaction
surveys, call centers, and our website customer
feedback forms for gathering opinions or complaints
Dedicated toll-free number
P94

Shareholders

General shareholders’ meetings, investor
briefings
P27

Employees

Various briefings and other communications,employee opinion surveys 
P96

Regional/local
communities

Social contribution activities, support for
financial education
P97

Suppliers/
competitors

Purchasing activities and outsourcing
contracts

Government
authorities

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

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

Customers

Providing attractive products
and services
Providing recommendations andinformation promptly
Consulting services which draw
on our advanced expertiseEnhancement of our solutions
capabilities

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

Customer feedback cards
Call centers
Customer satisfaction survey

Group companies

Mizuho Financial Group (holding company)
Increase customer satisfaction (CS) awareness throughout the group2020 Integrated Report94Foundations for our corporate value

Systems to capture customer feedback
Customer feedback cards

Customer satisfaction surveys

Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
have created customer feedback cards to gather customer
opinions and requests and place them in lobby areas at retailbranches.

Call centers

Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
regularly conduct customer satisfaction surveys, the results ofwhich are used to improve group products and services.

Website feedback forms

Our call centers are available for responding to customer
opinions and requests and data collected from these centers is
a valuable resource.

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

Dedicated toll-free number
Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
have established a dedicated toll-free line to gather customer
opinions and requests.

Reflecting customer feedback into
our corporate activities
At Mizuho Bank, we draw on the opinions
expressed by customers in discussions heldat branches and management level meetings,
including those of the Executive Management
Committee at Head Office.

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

We respond immediately
for matters that can behandled at the branchlevel.

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

Branches
Head Office: Executive Management Committee and other venues

95

Mizuho Financial GroupFoundations for our corporate value Stakeholder communication

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

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

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

Staff surveys
We conduct staff surveys once a year as well as quick surveys
on an occasional basis. Employee feedback is conveyed to
management in a timely manner.

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

2020 Integrated Report96Foundations for our corporate value

A closer look at our communication with local communities
Members of our organization play an active role in contributing to the development of local communities beyond our contribution
as a business. Giving back to the community improves members’ social awareness and imbues them with a sense of pride in the
Mizuho group that changes how they approach their duties and their sense of purpose, and this ultimately contributes to Mizuho’ssustainable and stable development.

Financial and economic education initiatives
Work experience tours & school visits
In this age of longevity, it is important to gain an understandingof money early on. To this end, we proactively hold work
experience tours where we welcome children into our
workplaces, and send group employees on school visits to
conduct lessons.

Number of participants in Mizuho’s financial and economic education programs(Persons)
20,00018,66015,147

15,00010,00016,17812,859

8,015

5,000

0

FY2015FY2016FY2017FY2018FY2019Community & social contribution activities
Social contribution activities in local communities
At our offices worldwide, employees and their families
participate in volunteer activities in local communities.

97

Mizuho Financial Group

Assistance for natural disaster victims
We provide donations and employees participate in recovery
efforts as volunteers to rebuild the lives of victims of natural
disasters inside and outside Japan.

Data section

Eleven-year major financial data
(FY2009-2019)�������������� P. 99
Review and analysis
for fiscal 2019�������������� P. 101
Five-year non-financial data���� P. 105
Participation in international
initiatives���������������� P. 106
Mizuho’s global network������ P. 107
Corporate profile����������� P. 108
Group companies���������� P. 109

2020 Integrated Report98Data section

Eleven-year major financial data (FY2009-2019)

Summary of consolidated performance
FY2009FY2010FY2011FY2012FY2013

Consolidated gross profits

1,996.6

2,025.3

2,003.0

2,171.7

2,035.2

Net interest income

1,151.7

1,109.4

1,088.3

1,075.8

1,108.3

Fiduciary income

52.0

49.1

49.3

49.0

48.5

Credit costs for trust accounts

—

—

—

—

—

Net fee and commission income

466.0

458.8

458.9

507.3

560.7

Net trading income

312.3

243.9

150.3

215.0

187.4

Net other operating income

17.4

163.6

256.4

324.8

126.7

(1,317.2)(1,277.8)(1,283.8)(1,244.6)(1,258.2)

Consolidated net business profits*

702.6

741.7

719.1

912.1

744.2

Credit-related costs(219.3)(16.6)

27.7(111.8)112.8

Aggregate figures for the 2 banks(157.1)

16.0

24.7

(114.1)

116.6

Net gains (losses) related to stocks

4.2(70.5)(38.1)(82.9)

77.0

Net gains (losses) on sales of stocks

88.8

25.7

15.6

46.6

81.5

Losses on impairment (devaluation) of stocks(53.5)(94.4)(49.3)(125.8)(5.3)

Equity in income from investment in affiliates

2.8

(6.1)

2.6

(11.1)

15.4

General and administrative expenses

Other(96.9)(6.1)(62.9)

29.2

5.1

Ordinary profits

327.1

588.4

648.5

750.3

987.5

Net extraordinary gains (losses)

50.6

46.9

67.8

(32.5)(2.2)

Income taxes – current(18.0)(18.3)(55.3)(50.4)(137.0)(25.1)(120.1)(97.4)(7.4)(77.9)

334.6

496.9

563.6

659.9

770.3

– deferred
ProfitProfit attributable to non-controlling interests(95.2)(83.7)(79.1)(99.4)(81.9)

Profit attributable to owners of parent

239.4

413.2

484.5

560.5

688.4

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

Summary of consolidated balance sheet
FY2009Assets

FY2010FY2011FY2012FY2013

156,253.5

160,812.0

165,360.5

177,411.0

175,822.8

Loans and bills discounted

62,164.5

62,777.7

63,800.5

67,536.8

69,301.4

Securities

43,096.4

44,782.0

51,392.8

53,472.3

43,997.5

Liabilities

150,416.5

154,188.0

158,491.2

169,674.8

167,518.3

Deposits

76,339.7

79,233.9

78,811.9

84,241.9

89,055.5

Negotiable certificates of deposit

10,287.8

9,650.2

11,824.7

15,326.7

12,755.7

5,837.0

6,623.9

6,869.2

7,736.2

8,304.5

Total shareholders’ equity

3,207.2

4,248.2

4,762.7

5,174.6

5,676.2

Retained earnings

854.7

1,132.3

1,405.0

1,814.7

2,315.6

305.8

80.9

146.6

752.5

781.0

2,321.7

2,292.1

1,957.6

1,806.4

1,844.0

Net assets

Total accumulated other comprehensive income
Non-controlling interests

Financial indicators
FY2009FY2011FY2012FY2013

／

／

／

8.16

8.80

Tier 1 capital ratio (consolidated)

／

／

／

11.03

11.35

13.46

15.30

15.50

／

／

／

／

／

14.19

14.36

Net assets per share (Yen)

191.53177.53187.19229.70253.25

Profit attributable to owners of parent per share (Yen)

16.29

20.47

20.62

22.96

28.18

Net return on equity (consolidated)

10.97

11.78

11.36

10.99

11.65

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

99

FY2010Common Equity Tier 1 capital ratio (consolidated)

Mizuho Financial GroupData section Eleven-year major financial data(¥ billion)
FY2014FY2015FY2016FY2017FY2018FY20192,247.7

2,221.6

2,092.7

1,915.3

1,812.7

2,062.2

1,129.4

1,003.6

867.8

807.3

762.4

733.5

52.6

53.4

50.6

55.4

55.1

58.5

—

—

—

—

—

—

593.3

607.5

603.5

614.3

610.4

619.2

262.9

310.5

325.3

275.7

297.3

391.2

209.3

246.4

245.4

162.4

87.3

259.5

(1,351.6)(1,349.5)(1,467.2)(1,488.9)(1,430.8)(1,378.3)

876.9

852.8

663.4

457.8

393.3

661.9

(4.6)

(30.4)(47.5)

156.3(19.5)(171.7)(7.8)(26.7)(49.3)

153.2(22.7)(173.7)

131.9

205.6

242.1

272.0

274.8

137.1

143.7

225.3

261.1

288.3

305.2

153.7

(5.3)

(10.3)

(4.8)

(5.1)

(5.7)

(41.6)

15.0

24.2

18.8

21.4

51.2

30.3

(27.5)(74.0)(101.5)(93.7)(74.2)(41.7)

1,010.8

997.5

737.5

782.4

614.1

637.8

(20.2)

10.7

46.6

17.5

(497.8)(19.1)(260.2)(213.2)(196.5)(190.1)(161.3)(150.0)(44.7)(69.2)

58.8

(1.4)

163.8

(11.4)

685.6

725.7

646.4

608.3

118.7

457.2

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

(8.6)

611.9

670.9

603.5

576.5

96.5

448.5

(¥ billion)
FY2014FY2015FY2016FY2017FY2018FY2019189,684.7

193,458.5

200,508.6

205,028.3

200,792.2

214,659.0

73,415.1

73,708.8

78,337.7

79,421.4

78,456.9

83,468.1

43,278.7

39,505.9

32,353.1

34,183.0

29,774.4

34,907.2

179,884.2

184,105.3

191,235.2

195,207.0

191,598.1

205,995.2

97,757.5

105,629.0

120,045.2

125,081.2

124,311.0

131,189.6

15,694.9

11,827.5

10,631.2

11,382.5

13,338.5

13,282.5

9,800.5

9,353.2

9,273.3

9,821.2

9,194.0

8,663.8

6,131.1

6,559.9

7,001.2

7,388.3

7,303.0

7,561.0

2,769.3

3,197.6

3,615.4

4,002.8

3,915.5

4,174.1

2,029.9

1,607.8

1,520.9

1,677.5

1,445.7

992.9

1,635.5

1,182.6

749.3

754.2

444.5

109.6

(%)
FY2014FY2015FY2016FY2017FY2018FY2019

9.43

10.50

11.34

12.49

12.76

11.65

11.50

12.64

13.30

15.44

15.94

14.52

／

／

／

／

／

／

14.58

15.41

16.28

18.24

18.85

17.25

322.86322.46335.96357.41345.00337.29

24.91

26.94

23.86

22.72

3.80

17.68

8.60

8.37

7.27

6.55

1.08

5.18

2020 Integrated Report100Data section

Review and analysis for fiscal 2019

Summary of consolidated performance
Historical data

Consolidated gross profits
Consolidated net business profits1(¥ billion)
FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY20191,806.9

1,996.6

2,025.3

2,003.0

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

1,915.3

1,812.7

2,062.2

622.6

702.6

741.7

719.1

912.1

744.2

876.9

852.8

663.4

457.8

393.3

661.9

413.2

484.5

560.5

688.4

611.9

670.9

603.5

576.5

239.4

448.5
96.5

Net income (losses)2(588.8)
1. Consolidated gross profits – G&A expenses (excluding non-recurring losses) + Equity in income from investments in affiliates and certain other consolidation adjustments
2. Profit attributable to owners of parent from FY2015 onward

Consolidated(¥ billion)
FY2019FY2018Change from
FY2018

Consolidated gross profits

2,062.2

1,812.7

249.4

General and administrative expenses(1,378.3)(1,430.8)

52.4

Expenses related to portfolio problems1(183.3)(30.7)(152.5)

Gains on reversal of reserves forpossible losses on loans and others

11.6

11.1

0.4

Net gains (losses) related to stocks

137.1

274.8

(137.6)Equity in income from investments in affiliates

30.3

51.2

(20.8)

Other(41.7)(74.2)

32.4

Ordinary profits

637.8

614.1

23.7

Net extraordinary gains (losses)(19.1)(497.8)

478.6

Income before income taxes

618.7

116.2

502.4

Income taxes(161.4)2.5(163.9)Profit

338.4

457.2

118.7

Profit attributable to non-controlling interests(8.6)(22.1)

13.5

Profit attributable to owners of parent

448.5

96.5

352.0

Credit-related costs(171.7)(19.5)(152.1)

Consolidated net business profits2

661.9

393.3

268.5

1 Including reversal of [provision for] general reserve for losses on loans
2 Consolidated gross profits − G&A expenses (excluding non-recurring losses) + Equity
in income from investments in affiliates and certain other consolidation adjustments izuho Bank + Mizuho Trust & Banking*M(Aggregate figures on a non-consolidated basis)
FY2019Gross profits

1,437.5

1,197.1

240.3

G&A expenses(excluding non-recurring losses)(922.2)(949.3)27.1

Net business profits

515.2

247.7

267.4

Credit-related costs(173.7)(22.7)(150.9)Net gains (losses) related to stocks

125.4

176.1

(50.6)

Ordinary profits

480.4

339.9

140.5

Net Income (Losses)

343.1(105.3)448.5*Abbreviated as MHBK + MHTB101

FY2018(¥ billion)
Change from
FY2018Mizuho Financial Group

Consolidated net business profits
We recorded consolidated gross profits of ¥2,062.2 billion for fiscal
2019, an increase of ¥249.4 billion from the previous fiscal year
due to factors including steady performance in customer divisions
outside Japan as well as markets divisions.
General and Administrative expenses decreased by ¥52.4 billion
on a year-on-year basis to ¥1,378.3 billion due to decreases inpersonnel expenses and depreciation caused by structural reform.
As a result, consolidated net business profits increased by ¥268.5
billion on a year-on-year basis to ¥661.9 billion.

Profit Attributable to Owners of Parent
Consolidated credit-related costs increased by ¥152.1 billion ona year-on-year basis to ¥171.7 billion due to recording reserves of¥80.4 billion for possible losses on loans for some credit exposuresfrom a forward-looking perspective, reflecting the potential impact
of COVID-19 in light of the principles set forth in the report entitled“JFSA’s Supervisory Approaches to Lending Business and Loan
Loss Provisioning” (Japanese Financial Services Agency, December
18, 2019).
Net gains (losses) related to stocks decreased by ¥137.6 billion ona year-on-year basis to ¥137.1 billion due to factors that included
impairment losses on stocks caused by declining stock prices.
As a result, ordinary profits increased by ¥23.7 billion on a year-onyear basis to ¥637.8 billion.
As for net extraordinary gains (losses), losses decreased by¥478.6 billion on a year-on-year basis to ¥19.1 billion, reflecting theabsence of impairment losses in light of structural reform recorded
last year.
Income taxes increased by ¥163.9 billion on a year-on-year basis to¥161.4 billion.
As a result, profit attributable to owners of parent for fiscal 2019
increased by ¥352.0 billion on a year-on-year basis to ¥448.5 billion.

Data section Review and analysis for fiscal 2019

Summary of consolidated balance sheet
Consolidated(¥ billion)

Securities

March 31,2020

March 31,2019

Change fromMarch 31,2019

214,659.0

200,792.2

13,866.8

34,907.2

29,774.4

5,132.7

Japanese government bonds

13,081.8

13,016.0

65.8

JGB balance (MHBK + MHTB)1

Japanese local government
bonds

272.5

209.8

62.6

Medium- and long-term bonds2

Japanese corporate bonds
and short-term bonds

2,828.0

2,681.0

147.0

Japanese stocks

2,796.1

3,563.2(767.1)Other

15,928.6

10,304.2

5,624.3

83,468.1

78,456.9

5,011.2

AssetsSecurities

Loans and bills discounted
Loans(MHBK + MHTB, banking
account + trust account)

Securities were ¥34,907.2 billion, increasing by ¥5,132.7 billion fromthe end of the previous fiscal year due to an increase in foreign
bonds and other factors.

13.3
10.2

1.7
0.6
7.8

80,060.9

4,812.3

58,947.6

57,434.6

1,513.0

Mar. 31,2017

Loans to SMEs andindividual customers

33,892.4

33,186.5

705.9

Average remaining period3(Housing loans forowner’s residential
housing)

8,463.4

8,791.4(327.9)25,925.5

22,626.2

3,299.3

Liabilities

205,995.2

191,598.1

14,397.0

Deposits

131,189.6

124,311.0

6,878.6

106,876.1

101,655.1

5,220.9

Individual deposits

45,018.6

43,959.4

1,059.1

Corporate deposits

54,086.4

50,207.1

3,879.2

Financial/government
institutions

7,771.0

7,488.5282.5

Negotiable certificates of deposit

13,282.5

13,338.5(56.0)

8,663.8

9,194.0(530.1)
257.9

Overseas total

Domestic deposits(MHBK + MHTB)

Net assets
Total shareholders’ equity

2.4 years

7,561.0

7,303.0

Common stock

2,256.7

2,256.7—

Capital surplus

1,136.4

1,138.4(1.9)

Retained earnings

4,174.1

3,915.5

258.6

(6.4)

(7.7)

1.2

992.9

1,445.7(452.8)823.0

1,186.4(363.3)

Treasury stock
Total accumulated othercomprehensive income
Net unrealized gains(losses) on other securities

Treasury discount bills(¥ trillion)

84,873.2

Domestic total(Acquisition cost basis)

Floating-rate notes

Deferred gains or losses
on hedges

72.0(22.2)

94.3

Revaluation reserve for land

136.6

137.7

(1.1)

Foreign currencytranslation adjustments(133.1)(111.0)(22.1)

Remeasurements ofdefined benefit plans

94.3

254.9

(160.6)

Stock acquisition rights

0.2

0.7

(0.4)

Non-controlling interests

109.6

444.5

(334.8)

3.4
0.6

12.6

11.8
5.4
0.6

9.2

5.8

4.6
0.3
7.6

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

2.5 years

2.1 years

2.4 years

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

Japanese stocks (consolidated)*(¥ billion)

(Acquisition cost basis)

1,687.5
1,564.8
1,419.8
1,272.0

Mar. 31,2017

Mar. 31,2018

Mar. 31,2019

Mar. 31,
2020*Other securities which have readily determinable fair values

Note: Some of the domestic deposit balances that were previously classified as“Financial/government institutions” have been reclassified as “Corporate
deposits.”

2020 Integrated Report102Data section

Loans

Total net assets

The total of loans was ¥83,468.1 billion, an increase of ¥5,011.2
billion from fiscal 2018, caused primarily by the increases in loans
at overseas offices, mainly in the Americas and Europe.

Net assets amounted to ¥8,663.8 billion, decreasing by ¥530.1
billion from fiscal 2018 due to a decrease in net unrealized gains(losses) on other securities, and other factors.

The combined total of loans for MHBK and MHTB was ¥84,873.2
billion, an increase of ¥4,812.3 billion. For our loan balance in Japan,
while the balance of personal loans and Japanese government
loans decreased, that of large, medium, and small businesses
increased, resulting in an overall increase of ¥1,513.0 billion(including a decrease of ¥120.8 billion in loans to the Japanese
government and other such obligors). Our loan balance outside
Japan (including loans booked offshore) increased by ¥3,299.3
billion, mainly due to an increase in loans especially in the Americas
and Europe.
Loan balance (MHBK + MHTB, banking book + trust banking book)
Loan balance in Japan

Loan balance outside Japan

75.4

19.4

55.7

56.2

Mar. 31,
2017

84.8

80.0

75.2
19.1

(¥ trillion)

Mar. 31,
2018

22.6

Non-performing loans (NPLs)
The combined NPL balance of MHBK and MHTB was ¥661.0 billion,
an increase of ¥100.5 billion from fiscal 2018, and the NPL ratio
was 0.69%. Both the NPL balance and ratio remain stable in a low
position.
N on-performing loans based on the Financial Reconstruction Act(MHBK + MHTB, banking book + trust banking book)
Claims for special attention (¥ trillion)
Claims with collection risk (¥ trillion)
Claims against bankrupt and substantially bankrupt obligors (¥ trillion)
NPL ratio (%)

1.00

25.9

0.66

0.62

0.69

0.5

0.5

0.6

Mar. 31,2018

Mar. 31,2019

Mar. 31,
2020

0.8
57.4

Mar. 31,2019

58.9
Mar. 31,2017

Mar. 31,2020 on-performing loans based on the Financial
N
Reconstruction Act (MHBK + MHTB, banking book + trust
banking book)

Deposits(¥ billion)

The total deposits was ¥131,189.6 billion, an increase of ¥6,878.6
billion from fiscal 2018.
The combined deposits in Japan of MHBK and MHTB increased by¥5,220.9 billion from fiscal 2018 due to factors such as an increasein corporate deposits.

Deposits in Japan (MHBK + MHTB)
Individuals

92.7

Corporations

Financial/government institutions(¥ trillion)

6.7

101.6
7.4

106.8
7.7

43.9

47.1

50.2

54.0

41.3

42.8

43.9

45.0

96.7
7.4

Mar. 31,2017

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

Note: Some of the domestic deposit balances that were previously classified as“Financial/government institutions” have been reclassified as “Corporate
deposits.”

103

Mizuho Financial Group

March 31,2020

March 31,2019

Change fromMarch 31,2019

Claims against bankrupt andsubstantially bankrupt obligors

51.0

52.9

(1.9)

Claims with collection risk

386.5

347.6

38.8

Claims for special attention

223.4

159.7

63.6

Subtotal

661.0

560.4

100.5

Normal claims

93,890.9

89,236.8

4,654.1

Total

94,551.9

89,797.2

4,754.7

NPL ratio

0.69%

0.62%

0.07%

Data section Review and analysis for fiscal 2019

BIS capital

Dividend policy

BIS capital

We have been implementing disciplined capital management by
pursuing the optimum balance between strengthening our stable
capital base and steady returns to shareholders, and set forth ourshareholder return policy of maintaining the current level ofdividends for the time being while aiming to strengthen our capitalbase further to enhance returns to shareholders at an early stage.

Common Equity Tier 1 capital was ¥7,244.7 billion, a decrease of¥145.2 billion from fiscal 2018.

Risk assets
Risk-weighted assets were ¥62,141.2 billion, an increase of¥4,241.6 billion from fiscal 2018, due to an increase in credit riskrelated assets and other factors.

BIS capital ratio
The consolidated total capital ratio, consolidated Tier 1 Capital ratio
and consolidated Common Equity Tier 1 capital ratio as of the endof March 2020 were 17.25%, 14.52%, and 11.65%, respectively.
In our 5-Year Business Plan, we set the target for the Common
Equity Tier 1 capital ratio* (calculated on a Basel III fully effective
basis) at the lower end of the 9-10% range, and as of the end of
March 2020 we achieved a ratio of 8.8%.

Based on this policy, annual cash dividends for fiscal 2019 were¥7.50 per share of common stock (both interim and year-end cash
dividends were ¥3.75 per share of common stock), which was thesame amount as the previous fiscal year.
The Board of Directors has decided on the abovementioned
dividends for fiscal 2019, even though Profit Attributable to Ownersof Parent for fiscal 2019 was slightly lower than our earnings
estimate at the beginning of the fiscal year as a result of recording
additional Reserves for Possible Losses on Loans for some credit
exposures from a forward-looking perspective based on future
projections, reflecting the potential impact of COVID-19 on our
financials. In making this decision, the Board of Directors took into
account our business environment comprehensively including
capital adequacy, and domestic and international regulatory trends,
including the Basel regulatory framework.
Cash dividend per share of common stock (¥) 
7.5

7.5

7.5

7.5

FY2016FY2017FY2018FY2019

33%

197%

42%

*Excluding net unrealized gains (losses) on other securities

BIS capital ratio (consolidated)(¥ billion)

March 31,2020

March 31,2019

Change fromMarch 31,2019

Common Equity Tier 1 capital (CET1)

7,244.7

7,390.0(145.2)

Capital stock, surplus, andretained earnings

7,560.7

7,302.6

258.0

Additional Tier 1 capital

1,779.6

1,842.1(62.4)

Additional Tier 1 capital
instruments

1,805.0

1,570.0

235.0

Eligible Tier 1 capital
instruments subject tophase-out arrangements

—

303.0

(303.0)1,697.8

1,685.3

12.5

Tier 2 capital instruments

1,346.0

1,168.4

177.6

Eligible Tier 2 capital
instruments subject tophase-out arrangements

337.4

506.1

(168.7)

Total capital

10,722.2

10,917.5(195.2)

Risk-weighted assets

62,141.2

57,899.5

4,241.6

Tier 2 capital

Credit risk assets

56,308.2

52,628.8

3,679.4

Market risk equivalent assets

2,476.9

2,034.2

442.7

Operational risk equivalent
assets3,355.9

3,236.4

119.4

Total capital ratio (consolidated)

17.25%

18.85%(1.60%)

Tier 1 Capital ratio (consolidated)

14.52%

15.94%(1.42%)

Common Equity Tier 1 capitalratio (consolidated)

11.65%

12.76%(1.11%)

Dividend payout ratio
31%

2020 Integrated Report104Data section

Non-financial data/ESG-related information

Five-year non-financial data
Corporate governance
June 2016

June 2017

June 2018

June 2019

13

13

14

14

13

Percentage of outside directors

46%

46%

43%

43%

46%

Percentage of director positions filled by women

8%

15%

14%

14%

8%

100%

98%

100%

100%

-

Number of directors
Directors

Average attendance rate for Board of
Directors meetings1

Percentage of outside directors (June 2020)

June 2020

Nominating Committee

Compensation Committee

Audit Committee

100%

100%

60%

1. Fiscal year basis

TalentEmployees1

Training

Diversity &Inclusion

FY2015FY2016FY2017FY2018FY2019Number of employees

56,13359,61960,34657,54555,174

Average employee age

38

38

39

39

40

Average employee length of service

15

14

14

14

15

Voluntary employee turnover rate2

2.7%

2.5%

2.7%

3.1%

2.9%

Total number of participants3

148,406

148,951

139,504

128,863

146,538

Percentage of employees who are female

51%

52%

52%

52%

52%

Percentage of management positions
filled by women (general manager andmanager equivalent)4

10%

12%

14%

15%

16%

Percentage of management positions
filled by employees hired outside Japan5

33%

41%

44%

44%

64%

Percentage of new graduates hired for
management track jobs who are female6

34%

33%

36%

32%

36%

Percentage of paid annual leave takenby employees4

64%

68%

73%

78%

78%

Percentage of eligible male employees
who take childcare leave4

9%

23%

79%

100%

93%

2.08%

2.11%

2.00%

2.21%

2.49%

Percentage of employees who areindividuals with disabilities7

1. As of March 31. Mizuho Financial Group (including employees seconded to Mizuho Securities), Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Information& Research Institute
2. Mizuho Financial Group, Mizuho Bank, and Mizuho Trust & Banking
3. In Japan (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Information & Research Institute)
4. In Japan as of July (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities)
5. Outside Japan. Figures up to FY2018 are for Mizuho Bank only. Figure for FY2019 is the aggregate for Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
6. For new employees hired in Japan with plans to start in April of the following year (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho
Securities)
7. As of June (aggregate for Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, and Mizuho Business Challenged (special subsidiary company))

Environment1
Total energy consumption (Megawatt hours)2CO2 emissions(tons of CO2)

FY2015FY2016FY2017FY2018FY20193531,357

523,309

512,691

499,334

453,129

Scope 1

15,604

16,026

16,02815,845

14,756

Scope 2

221,616

213,709

202,939

191,730

169,818

6,216

5,894

6,088

5,480

5,396

Scope 3 (business trips)

1. In principle, these data items include all the facilities of eight group companies: Mizuho Financial Group, Mizuho Bank, Mizuho Trust & Banking, Mizuho Securities, Mizuho
Research Institute, Mizuho Information & Research Institute, Asset Management One, and Mizuho Private Wealth Management (data up to FY2017 are for nine companies
including the former Trust & Custody Services Bank).
2. Value obtained by converting “Direct Energy Consumption” and “Indirect Energy Consumption” into megawatt hours.
3. Provisional values

105

Mizuho Financial GroupData section Non-financial data/ESG-related information

Sustainable finance & Environmental finance
Sustainable finance (¥ trillion)(of which environmental finance)

FY2018FY2019

1.1
(0.6)

2.4
(1.1)

ESG evaluation
In light of the expectations and requirements that investors hold in regards to ESG evaluations, Mizuho Financial Group uses external ESG
evaluations to consider our Key Sustainability Areas and to improve our related initiatives. We will continue to focus on expanding ESG
information disclosure and engaging with stakeholders, including ESG evaluation institutions.
Inclusion in indices based on ESG evaluation

MSCI
ESG Rating

A(Third out of seven stages AAA – CCC)FTSE
ESG Rating

4.5(Out of a maximum possible score of 5)

S&P Global
SAM ESG Score

Continuing from FY2018, our MSCI ESG rating remained at “A” in
FY2019.


Our FTSE Russell ESG Rating rose from 4.1 in FY2018 to 4.5 in
FY2019.


Our S&P Global SAM ESG score dropped from 68 in FY2018 to
65 in FY2019. However, our ranking within the financial industry(converted to a scale of 100) rose from 39th to 26th.
On the basis of this score, Mizuho Financial Group was selected asa constituent of the Dow Jones Sustainability Asia/Pacific Index.
65(Out of a maximum possible score of 100)Social responsibility indices which include Mizuho P22

Participation in international initiatives
In an effort to promote activities aimed at fostering a sustainable society, Mizuho participates in a variety of initiatives both in and outside
Japan from a global perspective while taking into consideration our role as a financial institution.

United Nations Global Compact(Mizuho Financial Group)

UNEP Finance Initiative (UNEP FI)(Mizuho Financial Group)

Principles for Responsible Banking(Mizuho Financial Group)

Principles for Financial Action towards a Sustainable Society(Mizuho Bank)

Impact Management Project(Mizuho Financial Group, Mizuho Bank)

Cross-Sector Biodiversity Initiative (CSBI)(Mizuho Bank)

Equator Principles(Mizuho Bank)

Principles for Responsible Investment (PRI)(Mizuho Trust & Banking, Asset Management One)Montreal Carbon Pledge(Asset Management One)

Task Force on Climate-related Financial Disclosures (TCFD)(Mizuho Financial Group)

CDP Climate Change Program(Mizuho Financial Group)

Climate Action 100+
(Asset Management One)2020 Integrated Report106Data section

Mizuho’s global network (As of June 30, 2020)

Amsterdam
Brussels
Duesseldorf
Frankfurt
ZurichViennaLondonNanjing
Moscow

Beijing

Hefei
Wuhan

Paris

Calgary

ChicagoTorontoBostonXiamenMilan

ShenzhenIstanbul

Guangzhou

TehranLuxembourg
MadridTianjin
DalianQingdao
Seoul

BahrainRiyadhAbu Dhabi
Dubai
AhmedabadSuzhou, Kunshan, Changshu

New York

Shanghai

Atlanta

Wuxi
TaipeiTaichung
Kaohsiung
Hong Kong
ManilaNew Delhi
Hanoi

MumbaiBangalore

San Francisco

Washington, DC

Los Angeles

NassauDallasCayman Islands

HoustonLeon
Mexico City

LabuanChennai

Ho Chi Minh City

YangonPhnom Penh

Thilawa
Johannesburg

Bangkok

Sao Paulo

RayongJakarta
SydneyKuala Lumpur

Santiago

Singapore

Europe, the Middle East, and Africa 

Asia and Oceania Mizuho Bank

Mizuho Bank

43 offices

Mizuho Bank

26 offices

Mizuho Bank

7 officesMizuho Securities

7 officesMizuho Trust & Banking

17 offices

Americas 

86 offices

Mizuho Trust & Banking

1 officeMizuho Securities

Mizuho Securities

6 offices

Asset Management One 2 offices

Asset Management One

1 officeMizuho Securities

Asset Management One

1 officeMizuho Information & Research Institute 2 offices

Mizuho Research Institute1 office

Asset Management One 4 offices

Mizuho Research Institute1 officeMizuho Research Institute 2 offices

Mizuho Information & Research Institute1 officeMizuho Information & Research Institute 3 offices

Mizuho’s global network consists of branches, representative offices and overseas subsidiaries.

107

Total Mizuho Financial Group

1 office
20 offices

Data section

Corporate profile (As of March 31, 2020)

Company name:

Mizuho Financial Group, Inc

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

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

Rating information(As of June 30, 2020)

R&I

JCR Moody’s S&P

Fitch

Mizuho Financial Group

A+

AA-

A1

A-

A-

Mizuho Bank

AA-

AA

A1

A

A-

Representative:

Tatsufumi Sakai, President & Group CEO

Capital:¥2,256.7 billion

Issued shares:

25,392,498,945 shares

Mizuho Trust & Banking

AA-

AA

A1

A

A-

Number of employees:

1,677(Total number of employees on a consolidated
basis: 57,264)

Mizuho Securities

AA-

AA

A1

A

—

Date of establishment:

January 8, 2003

(Reference)
Japanese Government

AA+

AAA

A1

A+

A

Shareholders (common stock)

Historical stock price data Tokyo Stock Exchange

Foreign investors

21.36%

National & municipal
government

0.03%

Mizuho Financial Group
Individuals and others

140

31.94%

120
100

Other domestic
companies

80

11.72%
Securities
companies

4.93%

Nikkei Index

60

Financial institutions

30.02%

40

March 2018 September 2018 March 2019 September 2019 March 2020
The graph showing Mizuho Financial Group’s stock price and the Nikkei stock
price average has been prepared as an index with the closing prices on March
31, 2018 as 100.

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

Sustibnability

Financials and Presentations

Gain insights into our approach to sustainability.

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

‌‌https://www.mizuho-fg.com/csr/index.html‌‌https://www.mizuho-fg.com/investors/materials/index.html

2020 Integrated Report108Data section

Group companies (As of March 31, 2020, except for each company’s network, which is as of June 30, 2020)

Mizuho Bank

Mizuho Trust & Banking

Date of establishment

July 1, 2013

Date of establishment

March 12, 2003

Capital¥1,404.0 billion

Capital¥247.3 billion

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

Koji Fujiwara, President & CEO

Number of employees

28,909

Network in Japan

464

Network outside Japan 86
Websitewww.mizuhobank.com/

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

Kei Umeda, President & CEO(Appointed on April 1, 2020)

Number of employees

3,424

Network in Japan

60

Network outside Japan 1
WebsiteMizuho Securities
Date of establishment

January 4, 2013

Capital¥125.1 billion

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

Koichi Iida, President & CEO

Number of employees

7,397

Network in Japan

254

Network outside Japan 20
Website109

Mizuho Financial Group

www.mizuho-sc.com/english/

www.mizuho-tb.co.jp/english/

Data section Group companies

Mizuho Research Institute4

Mizuho Information & Research Institute4

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

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

Date of establishment
CapitalLocation of head office
Representative
Number of employees
Network outside Japan
WebsiteOctober 1, 2002
¥900 million
1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Yasuhiko Ushikubo, President & CEO(Appointed on April 1, 2020)302
2
www.mizuho-ri.co.jp/english/

Date of establishment
CapitalLocation of head office
Representative
Number of employees
Network outside Japan
WebsiteOctober 1, 2004
¥1,627 million
2-3 Kanda-Nishikicho, Chiyoda-ku, Tokyo
Yasumasa Mukai, President & CEO
3,851
3
www.mizuho-ir.co.jp/english/

Asset Management One

Mizuho Private Wealth Management

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

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

Date of establishment
CapitalLocation of head office
Representative
Number of employees
Network outside Japan
WebsiteOctober 1, 2016
¥2,000 million
Tekko Building, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo
Akira Sugano, President & CEO848
4
www.am-one.co.jp/english/

Date of establishment
CapitalLocation of head office
Representative
Number of employees

October 3, 2005
¥500 million
1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo
Naoyuki Machinaga, President
35

Mizuho Americas

JTC Holdings5

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

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

Date of establishment
CapitalLocation of head office
Representative
WebsiteJune 20, 2016
$3,820 million
1271 Avenue of the Americas, New York,NY 10020, USA
Teiji Teramoto, CEO
www.mizuhoamericas.com/

MI Digital Services6
MI Digital Services is a joint venture between Mizuho and IBM Japanthat provides high-quality and highly efficient system management
services by integrating its expertise in operating core IT systems with
cutting-edge technologies.
Date of establishment
CapitalLocation of head office
Representative
Number of employees

June 30, 2020
¥20 million
Takagicho Center Building, 2-26-23,
Nishiazabu, Minato-ku, Tokyo
Kazuo Fujiwara, President(Appointed on June 30, 2020)
586

Date of establishment
CapitalLocation of head office
Representative
Number of employees

October 1, 2018¥500 million
Tower Y, Harumi Triton Square, 1-8-11,
Harumi, Chuo-ku, Tokyo
Nobumitsu Watanabe, President & CEO
294

Notes: 1 .The representatives of each company have representation rights.
2. The number of employees does not include each company’s employees
dispatched outside each company, while it includes employees
dispatched to each company from other organizations. This figure
also includes overseas local staff but excludes executive officers andtemporary employees.
3. Mizuho’s network consists of our Head Office and branches in Japan,
and branches, representative offices, and overseas subsidiaries outside
Japan.
4. We are planning to integrate Mizuho Information & Research Institute,Mizuho Research Institute, and Mizuho Trust Systems in April 2021.
5. Japan Trustee Services Bank absorbed JTC Holdings and Trust &Custody Services Bank in a merger and, on July 27, 2020, changed its
trade name to Custody Bank of Japan.
6. We transferred part of the shares of Mizuho Operation Service to IBM
Japan on June 30, 2020 and changed the trade name to MI Digital
Services.

2020 Integrated Report110Appendix

Compliance contacts

Internal control and audit hotline—A system designed for reporting questionable accounting or auditing matters—
Reporting items: M izuho Financial Group has established a hotline• When a report is received concerning the reporting items stipulated

to receive reports from in and outside the company

on the left, Mizuho Financial Group will make a reasonable effort

in connection with problems concerning internal

to investigate the facts behind the information received and reportcontrol and audits of accounts and financial reports.
Contact point: This hotline has been established within an externalback on the results.
• Anonymous tips are also acceptable, but there are cases where it

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

email.

owing to constraints on investigations and the inability to report

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

back.

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

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

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

Fuyo Law Officedisclosure is required under laws and ordinances.

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

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

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

implementation of dispute resolution procedures with the Japanese

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

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

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

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

Trust Business by Financial Institutions.

Business by Financial Institutions which Mizuho Trust & Banking has
contracted

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

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

111

Mizuho Financial GroupAppendix

Support for SMEs and regional revitalization

Support for small and medium-sized enterprises (SMEs)
By drawing on our consulting capabilities to provide proposals andsolutions that address the issues SMEs face, we ensure that clients’perspectives are prioritized when providing support for businessexpansion, succession, reorganization, and other client needs.
We also believe that proactively supporting SMEs is a key part offulfilling our social responsibility as a financial institution.

Furthermore, a specialized business reorganization section within
our Head Office provides support for SMEs’ business improvement
and reorganization needs. In addition, our Head Office collaborates
with frontline offices to provide consultations and support for clients
through partnerships with external organizations, external specialists,and other financial institutions.

In particular, by providing consulting and support for SMEs’ growthstrategies, we can introduce clients to potential M&A opportunities
from the standpoint of business expansion and succession, andsupport the growth of innovative companies with exceptional
technologies or ideas.

Regional revitalization initiatives
In Japan, as a result of the trend toward concentration of businesses
and other economic activity solely in Tokyo, rural populations are
expected to decline and regional economies are expected to shrink
in the future. As a nation, Japan must look for ways to revitalize
regional areas through a virtuous cycle in which jobs draw people
back to local areas and population growth creates more jobs.

Utilizing our office network in Japan, we are striving to promote
the revitalization of regional economies by providing our clientswith funding, supporting the operations of local businesses, andcollaborating with regional governments.

Case example
Financial support for increased adoption of renewable energy in Fukushima Prefecture
Project diagramLine of credit
Fukushima Souden

Subordinatedloan line of credit

Toho Bank
Mizuho Bank
DBJ

Construction/
operation
Shared power lines
Connection
Renewable energy power
producers

Fukushima Souden is a power transmission company engaged
in the construction and operation of power lines connecting
renewable energy power plants with ordinary power transmission
and distribution companies to support the increased adoption ofrenewable energy in Fukushima Prefecture. In order to provide
financial support to Fukushima Souden for such initiatives,
Mizuho Bank has established a credit line along with Toho Bankand the Development Bank of Japan (DBJ) enabling Fukushima
Souden to flexibly raise funds for construction and other matters.
As a financial institution well versed in the power industry, weare supporting the expansion of renewable energy toward thereconstruction of Fukushima and the formation of a sustainable
society through the realization of “The Fukushima Plan for a New
Energy Society” promoted by the Japanese government andFukushima Prefecture. We will provide support not only from afinancial perspective but also in the form of industry knowledge.

Finance facilitation and response to the Guidelines for Personal Guarantee Provided by Business Owners
Finance facilitation
Mizuho works to promote finance facilitation in accordance withgroup-wide fundamental policies. This includes ensuring that we
respond appropriately to requests for new loans or loan condition
adjustments, and provide tailored consulting.

Guidelines for Personal Guarantee Provided by Business Owners
We are committed to establishing and maintaining good relationships
with our clients in line with the Guidelines for Personal Guarantee
Provided by Business Owners established by the Japanese Bankers
Association and the Japan Chamber of Commerce and Industry.
We provide the option for a joint guarantee with a termination clauseand multiple other lending methods as alternatives to personal
guarantee provided by business owners. Also, we have establisheda structure for cooperation between our frontline offices and Head
Office to encourage the utilization of these methods.
2020 Integrated Report112Appendix

Internal audit structure

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

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

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

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

Board of Directors

Audit Committee

President & Group CEO

Internal Audit Committee(Chairman: President &Group CEO)

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

Mizuho Financial Group

Instruction

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

Internal audit management structure

Supervision,
audit

Mizuho Financial GroupManagement

Internal audit management structureInternal Audit GroupInternal Audit
All organizational units

Internal Audit
Department

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

Management by Mizuho
Financial Group

Advice, guidance
and remedialrecommendations

Report the resultsof internal audits

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

Subsidiaries of the above group companies

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

113

Mizuho Financial Group(As of June 25, 2020)

Appendix

Risk Management Structure

Credit risk management
Basic approach
We define credit risk as the Mizuho group’s exposure to the risk ofMizuho Financial Group manages credit risk for the group as alosses that may be incurred due to a decline in, or total loss of, thewhole. Specifically, Mizuho Financial Group establishes the group’s

value of assets (including off-balance-sheet instruments), as a result

fundamental credit risk policy to manage major group companies,

of deterioration in obligors’ financial position.

and monitors and manages the credit risks of the group as a whole.

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

The Balance Sheet & Risk Management Committee and the Credit

matters pertaining to credit risk management. In addition, the Risk

Committee, each of which is a business policy committee of ourManagement Committee broadly discusses and coordinates mattersprincipal banking subsidiaries, are responsible for discussing

relating to basic policies and operations in connection with credit

and coordinating overall management of their individual credit

risk management and matters relating to credit risk monitoring for

portfolios and transaction policies towards obligors. The respective

the Mizuho group. Under the control of the Group Chief Risk Officer

Chief Risk Officers of our principal banking subsidiaries areof Mizuho Financial Group, the Credit Risk Management Department

responsible for matters relating to planning and implementing

and the Risk Management Department jointly monitor, analyze, andcredit risk management. The credit risk management departments

submit suggestions concerning credit risk and formulate and executeof our principal banking subsidiaries are in charge of planning andplans in connection with basic matters pertaining to credit risk

administering credit risk management and conducting credit risk

management.

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

Our principal banking subsidiaries and other core group companies

Financial Group. The credit departments of our principal banking

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

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

collection from obligors in accordance with the lines of authority set

matters pertaining to credit risk management.

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

Method of credit risk management
We have adopted two different but mutually complementary

obligor. Through this process, we curb losses in the case of a credit

approaches to credit risk management. The first approach is

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

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

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

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

Individual credit management
1. Credit code

2. Internal rating system

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

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

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

allocations. Credit ratings consist of obligor ratings which represent

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

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

2020 Integrated Report114

Appendix

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

based on obliger-specific characteristics such as type of business

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

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

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

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

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

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

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

companies outside Japan, we utilize nine models.

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

These were developed by the Credit Risk Management Department

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

restructured loans).

Officer.

To assign obligor ratings, we have a quantitative evaluation system

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

specified amount by pooling obligors and claims with similar risk

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

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

Obligorratings(major
category)
A1—A3

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

B1—B2

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

C1—C3

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

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

Normalobligors

E1
Watch
obligors

Intensive control
obligors

Substantiallybankrupt
obligors

Bankrupt
obligors

115

Definition of ratings

E2

R

F1

G1

H1

Mizuho Financial Group

Category I(noncategorized)

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

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

Category III

Category IV(noncollateralized)

All credit given
to normal
obligors.

Obligors who require close watching
going forward because there areproblems with their borrowings, such as
reduced or suspended interest payments,
problems with fulfillment such as defacto postponements of principal orinterest payments, or problems with theirfinancial positions as a result of theirpoor or unstable business conditions.
Obligors who are not yet bankrupt but arein financial difficulties and are deemed
to be very likely to go bankrupt in the
future because they are finding it difficult
to make progress in implementing
their management improvement plans(including obligors who are receiving
ongoing support from financial
institutions).

Category II

Non-accrual,
past due &restructured
loans

Normal claims

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

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

Claimsdisclosed
under the FRA

Claims for
specialattention

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

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

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

Claims against
bankrupt andsubstantiallybankrupt
obligors, andequivalent
Loans tobankrupt
obligors

Appendix Risk Management Structure

pool. Our principal banking subsidiaries efficiently manage credit

Mizuho Financial Group defines a Restructured Loan as a loanrisk and credit screening by dispersing a sufficient number of small

extended to watch obligors when the following conditions are met:claims within each pool.

we are aiming for business reconstruction or financial support;
and lending conditions were amended favorably to the obligor

Our principal banking subsidiaries generally review thesuch as allowing interest rate reduction, postponement of principal

appropriateness and effectiveness of our approach to obligor ratings

repayment/interest payment, debt forgiveness, etc.

and pool allocations once a year in accordance with predetermined
procedures, which is audited by the Internal Audit Group.

An overdue loan is defined as a loan for watch obligors of which
the loan principal or interest is overdue for three months or more
following the contractual payment date.

Methods for reserves and write-offs
Normalobligors

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

Watch
obligors

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

Intensive
control
obligors

Substantiallybankrupt
obligors

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

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

Bankrupt
obligors

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

4. Credit review
Prevention of new impaired loans through routine credit

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

management is important in maintaining the quality of our overallboth as an integral part of credit risk management and in preparationloan assets.

for appropriate accounting treatment, including provision for loan
losses and off-balance-sheet instruments and write-offs. During theCredit review involves analysis and screening of each potential

process of self-assessment, obligors are categorized into certaintransaction within the relevant business department. In

groups taking into consideration their financial condition and theircase the screening exceeds the authority of the department, theability to make payments, and credit ratings are assigned to allcredit department in charge at Head Office carries out the review.

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

The credit group has specialist departments for different industries,

related assets are then categorized into certain classes based on thebusiness sizes, and regions, carries out timely and specializedrisk of impairment. This process allows us to identify and control theexaminations based on the characteristics of the client and its

actual quality of assets and determine the appropriate accounting

market, and provides appropriate advice to the business department.

treatment, including provision for loan losses and off-balance-sheet
instruments and write-offs. Specifically, the credit risk management

In addition, in the case of obligors with low credit ratings and highdepartment of each of our principal subsidiaries is responsible

downside risks, the business department and credit department

for the overall control of the self-assessment of assets of thejointly clarify their credit policy and in appropriate cases assist therespective banking subsidiaries, cooperating with the administrative

obligors at an early stage in working towards credit soundness.

departments specified for each type of asset, including loan portfolios
and securities, in executing and managing self-assessments.
In our assessment of the probability of obligor bankruptcy, we deeman obligor that is rated as being insolvent or lower as being bankrupt.

2020 Integrated Report116Appendix

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

liabilities for acceptances and guarantees; deposits and foreignsystem (enterprise value corporate valuation model, holding period

exchange; derivatives including swaps and options; off-balance sheetof one year) to manage the possibility of losses by measuring theitems including commitments; and other assets involving credit risk.

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

In establishing transaction spread guidelines for credit transactions,

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

we aim to ensure an appropriate return from the transaction in lightmeasured as the credit risk amount (“Unexpected Loss”).

of the level of risk by utilizing credit cost data as a reference.

The risk measurement system covers the following accountAlso, we monitor our credit portfolio from various perspectives

items reported by each Mizuho Financial Group company: credit

and set guidelines noted below so that losses incurred through atransactions including loans and discounts; securities; clients’

hypothetical realization of the full Credit VAR would be within theamount of risk capital and loan loss reserves.
2. Risk control methods

Loss distribution

Our principal banking subsidiaries have established guidelines toFrequency

manage “credit concentration risk,” which stems from granting
excessive credit to certain corporate groups. Our principal banking
subsidiaries also set the credit limit based on a verification of the

Averagestatus of capital adequacy. In cases where the limit is exceeded, ourprincipal banking subsidiaries will formulate a handling policy and/or
action plan.
This amount depends onthe confidence interval. For
example, if the confidence
interval is set at 99%, it is
the 9,900th smallest loss
figure out of 10,000 trials.

Loss amountCredit VAR
Expected
Loss

117

Unexpected Loss

Mizuho Financial GroupIn addition to the above, our principal banking subsidiaries monitor
total credit exposure, credit exposure per rating, credit concentration
per corporate group, geographic area, and business sector to
make a periodical report to the Balance Sheet & Risk Management
Committee and the Credit Committee.

Appendix Risk Management StructureMarket risk management
Basic approach
We define market risk as the risk of losses incurred by the group due

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

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

fundamental risk management policy for the entire group, manages

becomes impossible to execute transactions in the market because

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

are significantly less favorable than usual.

managed as a whole.

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

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

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

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

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

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

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

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

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

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

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

implementing plans relating to market risk management.

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

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

prevent the overall market risk we hold from exceeding our financial

positions.

Setting limits

Monitoring

When the above mentioned limits are set, various factors are

To provide a system of mutual checks and balances in market

taken into account, including business strategies, historical limit

operations, we have established middle offices specializing in risk

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

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

the Risk Management Committee, discussed further by the Executive

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

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

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

market while taking turnover and other factors into consideration.

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

2020 Integrated Report118

Appendix

The following graph shows VAR figures of our trading activities for

Status of Mizuho Financial Group’s market risk

the fiscal year ended March 31, 2020:

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

Fiscal 2019 VAR (trading activities)(VAR: ¥ billion)
14
12
10

Trading activities

8

VAR related to our trading activities is based on the following:• historical simulation method;6• confidence interval: one-tailed 99.0%;

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

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

Fiscal 2017
Daily average

MaximumInterest rate

1.7

Foreign exchange

0.4

Equities
Commodities
Total

At March 31

2.5

1.0

2.2

1.2

0.1

0.1

0.6

2.4

0.3

0.5

0.0

0.0

0.0

0.0

3.0

6.2

2.2

3.0

Daily average

Maximum

Minimum

At March 31

Interest rate

2.0

2.9

1.3

2.0

Foreign exchange

0.8

2.8

0.1

0.3

Equities

0.6

7.7

0.2

0.5

Commodities

0.0

0.0

0.0

0.0

Total

3.4

9.2

2.4

2.6

Daily average

Maximum

Minimum

At March 31

Interest rate

2.7

7.2

1.3

6.7

Foreign exchange

0.4

1.1

0.1

0.8

Equities

0.6

4.5

0.2

1.7

Commodities

0.0

0.0

0.0

0.0

Total

3.8

11.8

2.3

8.3

Fiscal 2019

Mizuho Financial Group

03/27/2020

03/08/2020

02/18/2020

01/30/2020

01/11/2020

12/23/2019

12/04/2019

11/15/2019

10/27/2019

10/08/2019

09/19/2019

08/31/2019

08/12/2019

07/24/2019

07/05/2019

06/16/2019

05/28/2019

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

Minimum

Fiscal 2018

119

05/09/2019

and as of March 31, 2018, 2019 and 2020:

04/20/2019

risk category for the fiscal years ended March 31, 2018, 2019 and 2020

04/01/2019

0

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

VAR (trading activities)(¥ billion)

Fiscal 2017

Fiscal 2018

Fiscal 2019

ChangeAs of fiscal year end

3.0

Maximum

6.2

2.6

8.3

5.6

9.2

11.8

Minimum

2.5

2.2

2.4

2.3

(0.1)

Average

3.0

3.4

3.8

0.4

Appendix Risk Management Structure

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

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

factors on the value of positions and portfolios and could

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

underestimate potential losses.

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

Cross-shareholdings portfolio management activities

interest risk using appropriate methods such as recognizing demand

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

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

The following graph shows the VAR related to our banking activities

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

excluding our cross-shareholdings portfolio for the year ended March

Moreover, in order to control stock price risk, we are working on the31, 2020:

reduction in cross-shareholdings through careful negotiations withcounterparties.

Fiscal 2019 VAR (banking activities)
Back testing
VAR
Interest rate on five-year government bonds(VAR: ¥ billion)(%)

In order to evaluate the effectiveness of market risk measurements

400

0.5

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

350

0.4

compare VAR with assumptive profits and losses. Assumptive profits

0.3

and losses accounts for general market risk. The graph below shows

0.2

250

daily VAR of trading activities for the fiscal year ended March 31,

0.12020 and the corresponding paired distribution of profits and losses.

200

0.0
-0.1

We had three cases where losses exceeded VAR during the period.

150

300

-0.2

100

-0.3

03/24/2020

03/05/2020

02/15/2020

01/27/2020

01/08/2020

12/20/2019

12/01/2019

11/12/2019

10/24/2019

10/05/2019

09/16/2019

08/28/2019

08/09/2019

07/21/2019

07/02/2019

06/13/2019

05/25/2019-0.5
05/06/2019-0.4

004/17/2019

50

In addition, we conduct evaluations of the assumptions related to
the VAR models. Based on the number of times losses exceeded
VAR through back testing and the results of the evaluation of themodel assumptions, we will make adjustments to the models as
appropriate. Changes to fundamental portions of the VAR models are
subject to the approval of our Group Chief Risk Officer.

Fiscal 2019 back testing
The following table shows the VAR figures relating to our banking
activities for the fiscal years indicated:

Assumed profit or loss (¥ billion)7
6
5

VAR (banking activities)
Fiscal 2017(¥ billion)

Fiscal 2018

Fiscal 2019

ChangeAs of fiscal
year end

268.4

194.4

361.4

166.9

Maximum

307.2

298.5

361.4

62.8

Minimum

210.8

194.4

167.9

(26.4)

Average

267.8

255.5

215.7

(39.8)

4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)

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

(7)

0

1

2

3

4

5

6
7
VAR (¥ billion)

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

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

Stress testing

particularly potential future events that are extreme in nature.

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

conduct stress testing to simulate the levels of losses that could

movements.

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

nor makes any statement about, any losses that might occur

include the calculation of losses under scenarios in which stresses

beyond this confidence level.

are applied to interest rate risk and stock price risk based on current
and projected economic conditions, historical market events, etc.
2020 Integrated Report120Appendix

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

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

fundamental liquidity risk management policy for the entire group,

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

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

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

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

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

liquidity risk management policies. The Risk Management Committee

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

for monitoring and adjusting the cash flow management situation

matters relating to basic policies in connection with liquidity risk

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

maintain appropriate funding liquidity. Reports on liquidity risk

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

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

business policy committee), the Executive Management Committee

The Risk Management Department of Mizuho Financial Group is

and the President & Group CEO on a regular basis.

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

Our principal banking subsidiaries and other core group companies

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

also establish their basic policies on liquidity risk management to

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

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

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

effectiveness of countermeasures against a possible outflow of funds

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

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

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

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

Liquidity risk management indicators

Liquidity stress testing

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

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

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

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

Risk Management Committee, discussed further by the Executive

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

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

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

121

Mizuho Financial GroupAppendix Risk Management Structure

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

reputational risk, we have separately determined the fundamental

resulting from inadequate or failed internal processes or systems,

risk management policies for these different types of risk. We

human error, or external events. We control operational risk

manage the operational risk associated with our principal banking

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

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

Principal risk management methods

Information
technology risk

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

• Identify and evaluate the risk by setting specific standards that need
to be complied with and implementing measures tailored based on
evaluation results to reduce the risk.
• Ensure ongoing project management in systems development andquality control.
• Strengthen security to prevent information leaks.
• Strengthen capabilities for rapidly and effectively dealing withcyberattacks.
• Improve effectiveness of emergency responses by improving
backup systems and holding drills.

Operations risk

The risk of customers incurring a loss or the risk of the group
incurring tangible and/or intangible losses due to thedisruption of services to customers or major incidents
affecting settlement systems, etc., as a result of inadequate
operations caused by fraudulent acts, errors or negligence,
etc., of senior executives or employees, or inadequacies in
the operational structure itself.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs led by Head Office.
• Introduce information technology, office automation, andcentralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal risk

Risk that the group may incur losses due to violation of laws
and regulations, breach of contract, entering into improper
contracts or, other legal factors.

• Review and confirm legal issues, including the legality of material
decisions, agreements and external documents, etc.
• Collect and distribute legal information and conduct internal training
programs.
• Analyze and manage issues related to lawsuits.

Human capital risk

Risk that the group may incur losses due to turnover or lossof personnel, deterioration of morale, inadequate
development of personnel, inappropriate working schedules,
inappropriate working and safety environment, inequality or
inequity in human resource management, or discriminatory
conduct.

• Conduct employee satisfaction surveys.
• Understand the status of working hours.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.
• Understand the status of the stress check system.

Tangible asset risk

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

• Manage the planning and implementation of construction projects
related to the repair and replacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused
by natural disasters or other causes, and respond appropriately tosuch damage.

Regulatory risk

Risk that the group may incur losses due to changes invarious regulations or systems, such as those related to law,
taxation, and accounting.

• Understand important changes in regulations or systems that havesignificant influence on our business operations or financial
condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes and establish
countermeasures.
• Continuously monitor our regulatory risk management mentioned
above.

Reputational risk

Risk that the group may incur losses due to damage to ourcredibility or the value of the “Mizuho” brand when market
participants or others learn about, or the media reports on,
various adverse events, including actual materialization ofrisks or false rumors.

• Establish framework to identify and manage, on an integrated basis,
information that may have a serious impact on group management
and respond to such risk in a manner appropriate to its scale andnature.
• Swiftly identify rumors and devise appropriate responses dependingon the urgency and possible impact of the situation to minimize
possible losses.

We also recognize and manage information security risk and compliance risk, which constitute a combination of more than one of the above components, as operationalrisk.

2020 Integrated Report122Appendix

Operational risk management structure
Our Board of Directors determines basic matters pertaining tomarket risk, reporting and analysing, making proposals, setting limits

operational risk management policies. The Risk Management

and guidelines, and formulating and implementing plans relating toCommittee of Mizuho Financial Group broadly discusses andoperational risk management.

coordinates matters relating to basic policies in connection with
operational risk management, operational risk operations, andOur principal banking subsidiaries and core group companies

operational risk monitoring. The Group Chief Risk Officer of Mizuho

establish their basic policies on operational risk management, andFinancial Group is responsible for matters relating to operational

their Boards of Directors determine important matters relating torisk management planning and operations. The Risk Management

operational risk management.

Department of Mizuho Financial Group is responsible for monitoring

Operational risk management method
To manage operational risk, we set common rules for data gatheringsophistication and diversification of financial operations andto develop various databases shared by the group and measuredevelopments relating to information technology by utilizing control

operational risk as operational VAR on a regular basis, taking into

self-assessments and improving measurement methods.

account possible future loss events and changes in the businessenvironment and internal management.

Control self-assessments
An autonomous method of risk management in which risk inherent

We have established and are strengthening management methods

in operations is identified and, after evaluating and monitoringand systems to appropriately identify, assess, measure, monitor,risks that remain despite implementing risk control, the necessary

and control the operational risks that arise from the growing

measures are implemented to reduce risk.

Definition of risks and risk management methods
As shown in the table on the previous page, we have definedmanagement methods in accordance with the scale and nature ofeach component of operational risk, and we apply appropriate riskeach risk.

Measurement of operational risk equivalent
1. Implementation of the Advanced Measurement Approach(AMA)
We have adopted the AMA for the calculation of operational risk
equivalent in association with capital adequacy ratios based on the
Basel Accords. However, we use the Basic Indicator Approach forentities that are deemed to be less important in the measurement ofoperational risk equivalent.
The measurement results under the AMA are used not only as theoperational risk equivalent in the calculation of capital adequacy
ratios but also as Operational VAR for internal risk management

2. Outline of the AMA
Outline of the measurement system
We have established our model by taking account of four elements:
internal loss data; external loss data; scenario analysis and businessenvironment; and internal control factors (BEICFs). We calculate
the operational risk amount by estimating the maximum loss,
using a 99.9th percentile one-tailed confidence interval and a oneyear holding period as operational risk equivalent, employing bothinternal loss data (i.e., actually experienced operational loss events),
and scenario data to reflect unexperienced potential future loss
events in the measurement.

purposes for implementing action plans to reduce operational risk,
and other countermeasures.

In the measurement of operational risk equivalent as of March 31,
2020, we did not exclude expected losses and also did not recognize
the risk mitigating impact of insurance. In addition, we did not take
into account the events related to credit risk in measuring operationalrisk equivalent.

123

Mizuho Financial GroupAppendix Risk Management Structure

Outline of measurement model

Estimation of Frequency Distribution and Loss Severity

Operational risk equivalent is calculated as a simple sum of those risk

Distribution

amounts related to the seven loss event types defined in the CapitalFrequency Distribution is estimated by applying information on

Adequacy Notice from Japan’s Financial Services Agency, large-scaleoccurrence frequency of both internal loss data and scenario data tonatural disasters, and litigation. In the measurement of operational

Poisson Distribution. Loss Severity Distribution is generated as therisk equivalent as of March 31, 2020, we did not reflect the correlation

result of combining, through a statistical approach (Extreme Valueeffects among operational risk related to each of the seven loss event

Theory), of the actual distribution for the low severity distribution

types.

portion created by internal loss data and another loss distribution(Log-normal Distribution or Generalized Pareto Distribution) for thehigh severity distribution portion created by scenario data.

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

Outline of measurement modelInternal loss data

Business environment andinternal control factors

External loss data

Scenario analysis

Scenario data

Litigation data

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Risk amount for external fraud

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products, and business practices
Risk amount for damage tophysical assets

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for businessdisruption and system failure
Risk amount for execution,delivery, and process management

Operational VAR(Total operational risk amount)2020 Integrated Report124Appendix

Operational risk of large-scale natural disasters

Setting units for scenario analysis

Monte-Carlo simulation is applied to the datasets expressed as a

In order to ensure completeness and sufficiency, we set units thatcombination of the probability of occurrence of large-scale natural

are commonly applied across group entities that adopt AMA (thedisasters and the probable loss amount in case of such occurrence,“Group Entities”) by referencing and categorizing risk scenarios

as opposed to estimating Frequency Distribution and Loss Severity

recognized through control self-assessment, internal loss data ofDistribution.

the Group Entities, external loss data, etc. Then each of the Group
Entities selects the unit on which scenario analysis is conducted fromOperational risk of litigation

the units established on a group-wide basis in accordance with its

Each litigation is converted into data according to the profile of thebusiness activities and operational risk profile.

individual litigation to which Monte-Carlo simulation is applied, as
opposed to estimating Frequency Distribution and Loss Severity

Estimation of occurrence frequency

Distribution.

Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has relevant

Verificationinternal loss data of a pre-determined threshold amount or above,

We confirm the appropriateness of the measurement model by

its basic occurrence frequency is calculated based on such data, andverifying it, in principle, semi-annually.

if not, the basic occurrence frequency (the occurrence frequency per
year of losses at or above a pre-determined threshold) is calculated

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

with reference to the situation of occurrence of internal loss data ofless than the threshold amount and/or external loss data. The basic
occurrence frequency is then adjusted within a pre-determined range
for the purpose of reflecting the most recent BEICFs to determine thefinal occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate Loss Severity Distribution, we use a pre-As for external loss data, we refer to data publicly reported bydetermined series of severity ranges. Basic Loss Severity Distribution

domestic and overseas media, and such data are reflected in theis calculated for each scenario analysis unit as an occurrence ratio

estimation of occurrence frequency and Loss Severity Distribution in(in percentile figures) of loss at each severity range when losses

the process of scenario analysis. In addition, BEICFs are utilized asat or above a pre-determined threshold occurred, with referenceindices to adjust occurrence frequency and Loss Severity Distribution

to transaction amount data, external loss data, etc. Then the basicin the process of scenario analysis.

severity distribution is adjusted, if necessary, from the viewpointof statistical data processing to determine the final Loss Severity

We categorize scenario analysis into four approaches in accordanceDistribution.

with the characteristics of each loss event type and risk management
structures.

Creation of scenario data
For each scenario analysis unit, scenario data is generated as a series

Approach

Loss event type(s) to be applied

A

Internal fraud / external fraud / clients, products, and businesspractices / execution, delivery, and process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failureof combinations of occurrence frequency per year at each severity
range, based on the final occurrence frequency and the final Loss
Severity Distribution.

Example of scenario data
Final loss severity distribution
Severity range (¥ billion)

At Mizuho Financial Group, loss event types to which Approach A is
0.1

applied account for a considerable amount of operational risk. The
detailed process of Approach A is explained here as a typical exampleof scenario analysis.

0.5

1

5

Total

10

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency(times)

0.4

0.3

0.15

0.1

0.05

1

Final occurrence frequency

125

Mizuho Financial GroupAppendix

Business continuity management

In light of our social responsibility and the important role Mizuho

These offices function as a controller in the event of an emergency

plays within the social infrastructure as a financial institution,that may materially impact business management, by collecting andensuring the continuity of financial settlement functions and the swift

analyzing information, formulating countermeasures, and taking

and efficient recovery of operations in the event of an emergency isother necessary action. In addition, their role includes collecting andone of our top priorities within the group.

analyzing signs and indicators of a potential crisis, and reporting
their findings promptly to management.

To improve business continuity management practices across thegroup, we assess the potential impact of emergencies beforehandParticular focus is placed on strengthening our response to naturaland formulate necessary countermeasures in order to minimize suchdisasters, covering not only earthquakes and tsunamis but also

impact, and to ensure the swift and efficient recovery of operations.

volcanic eruptions, large-scale wind or water damage, and facilitating
initial responses to acts of terrorism and riots. We also focus on

One of the ways in which we are working to achieve this is by

responses to cyberattacks that have been occurring with increasing

establishing Crisis Management Offices within Mizuho Financial

frequency around the world.

Group, Mizuho Bank, Mizuho Trust & Banking, and Mizuho Securities
that are responsible for business continuity management and ourAlso, to secure the effectiveness of our measures to deal withresponses in the event of emergency.

emergencies, group-wide practice drills and training sessions are
conducted on an annual basis.

Response to COVID-19
In response to the COVID-19 outbreak that began in January 2020,

measures to prevent droplet transmission, installing acrylic

we established Emergency Response Headquarters at Mizuho

partitions at our counters and having our staff wear face guards.

Financial Group, Mizuho Bank, Mizuho Trust & Banking, andFor our employees, we have endeavored to prevent infection andMizuho Securities to address the situation as it developed. Since

to ensure business continuity by implementing such measures as

then, coordinating our efforts through these headquarters, we

shift work, reducing crowding at peak business hours. In addition

have been taking measures to prevent further spread of the virus,

to shift work and remote working, our Head Office has promotedwith our customers’ health and safety as our highest priority.

methods to minimize contact between employees through, forBecause we provide financial infrastructure that is indispensable

example, use of telephone and video conferencing.

for the functioning of society, we have been working as a unified
group to maintain our provision of business funding to clients,

Going forward, Mizuho will quickly respond to the structural shifts

our settlement services, and our other financial functions.

COVID-19 is causing in the economy, industry, and society andcontinue working as a unified group to support our customers

A primary example of our infection prevention and businessand society in facing these new challenges. Through this support,

continuity measures is that we have been asking visitors to ourwe will build new forms of partnerships with our customers andbranches for their cooperation in avoiding congestion in lobbies

aim to transition to the next generation of financial services.

and other places in order to prevent potential transmission
among customers. We have also implemented thorough2020 Integrated Report126Senior executives

Mizuho Financial Group
Members of the Board of Directors
Executive Officers as Defined in
the Companies Act

Masamichi Ishikawa

Toshitsugu Okabe

Head of Asset Management Company / In charge ofSpecific Business of Strategic Planning Group

Masato Monguchi

Tatsufumi Sakai

Head of Research & Consulting Unit, President & CEO
of Mizuho Research InstituteMember of the Board of Directors
President & CEO(Representative Executive Officer)
Group CEO

Satoshi Ishii

Member of the Board of Directors
Senior Managing Executive Officer(Representative Executive Officer)

Chief Digital Innovation Officer (CDIO) / Head of IT & Systems
Group (Group CIO) / Head of Operations Group (Group COO)

Managing Executive Officer

Yasuhiko Ushikubo

Managing Executive Officer

Naoshi Inomata

Tsutomu Takahashi

Managing Executive Officer

Head of Compliance Group (Group CCO)

Koji Fujiwara **Head of Financial Control & Accounting Group(Group CFO)

Hiroaki Ehara

Member of the Board of Directors
Managing Executive Officer

Head of Human Resources Group (Group CHRO)

President & CEO (Representative Director)

Satoshi Miyazaki **Deputy President (Representative Director)

Takahiko Yasuhara **Deputy President (Representative Director)

Tatsufumi Sakai

Member of the Board of Directors

Toshitsugu Okabe

Member of the Board of Directors

Member of the Board of Directors(Audit & Supervisory Committee Member)

Hisaaki Hirama

Member of the Board of Directors(Audit & Supervisory Committee Member)

Yasuhiro Sato

Chairman (Kaicho)*Member of the Board of Directors

Tetsuo Seki

Member of the Board of Directors (Outside Director)

Tatsuo Kainaka

Member of the Board of Directors (Outside Director)

Yoshimitsu Kobayashi

Member of the Board of Directors (Outside Director)

Ryoji Sato

Member of the Board of Directors (Outside Director)

Masami Yamamoto

Member of the Board of Directors (Outside Director)

Izumi Kobayashi

Chairman, member of the Board of Directors(Outside Director)

Seiji Imai
Senior Managing Executive Officer(Representative Executive Officer)

Head of Corporate & Institutional Company / Head of
Global Products Unit

Masahiro Otsuka
Senior Managing Executive Officer
Head of Retail & Business Banking Company

Naofumi Fuke

Senior Managing Executive Officer

Co–Head of Retail & Business Banking Company

Hiroshi Nagamine

Senior Managing Executive Officer

Head of Global Corporate Company / Deputy Head of
Global Products Unit

Hisashi Kikuchi

Hisashi Kikuchi
Shigeo Ohara

Member of the Board of Directors(Outside Director, Audit & Supervisory Committee
Member)

Shotaro Tochigi

Member of the Board of Directors(Outside Director, Audit & Supervisory Committee
Member)Naoko Nemoto

Member of the Board of Directors(Outside Director, Audit & Supervisory Committee
Member)Executive Officers(Head of Each Region Outside Japan)
Teiji Teramoto

Senior Managing Executive Officer
Head of the Americas

Masayuki Sugawara

Head of Asia & Oceania excl. East Asia

Shinsuke Toda

Managing Executive Officer

Head of Europe, Middle East, and Africa

Mizuho Trust & Banking
Members of the Board of Directors

Shinya Matake**

Senior Executive Managing Director(Representative Director)

Head of Retail & Business Banking Division / In
charge of Specific Business of Strategic PlanningGroup / In charge of Specific Business of Financial
Control & Accounting Group

Tatsufumi Sakai

Member of the Board of Directors

127

Mizuho Financial Group

Mizuho Securities
Members of the Board of Directors
Koichi Iida**

President & CEO (Representative Director)

Kiyoshi Miyake**
ChairmanAtsushi Takahashi**

Deputy President (Representative Director)

Head of IT & Systems Group / Head of Operations
Group / Head of Global IT / Head of Global Operations

Masaya Oishi**Executive Managing Director

Head of Fund Business Division / In charge of JA
Sales Department of Global Markets Division

Tatsufumi Sakai

Member of the Board of Directors

Toshitsugu Okabe

Member of the Board of Directors

Hideyuki Kawashima

Member of the Board of Directors (Audit &Supervisory Committee Member)

Hisashi Kikuchi

Member of the Board of Directors (Audit &Supervisory Committee Member)

Yasuhisa Hashimoto

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)

Hiroyuki Suzuki

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)

Seiji Koga

Notes:

Managing Executive Officer

President & CEO (Representative Director)

Co–Head of Global Markets Company

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)

Hidekatsu Take

Masatoshi Yoshihara

Managing Executive Officer

Yoshikazu Nishiwaki

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)

Kei Umeda**

Yasuhiro Shibata

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)Head of East Asia

Head of Internal Audit Group (Group CA)

Co–Head of Global Markets Company

Member of the Board of Directors (Outside Director,
Audit & Supervisory Committee Member)Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Member of the Board of Directors (Audit &Supervisory Committee Member)

Masaomi Takada

Head of Risk Management Group (Group CRO)

Member of the Board of Directors
Senior Managing Executive Officer

Hisashi Kikuchi
Mikinao Kitada

Head of Strategic Planning Group (Group CSO) / In
charge of Specially Assigned Matters

Mizuho Bank
Members of the Board of Directors

Makoto Umemiya

Member of the Board of Directors (Audit &Supervisory Committee Member)Managing Executive Officer

Motonori Wakabayashi

Member of the Board of Directors
Senior Managing Executive Officer

Member of the Board of Directors

1. * indicates that Chairman (Kaicho) Sato engages
in our external activities, but does not chair the
Board meetings.
2. ** indicates directors concurrently serving as
executive officers.
3. Mizuho Financial Group executive officers as
defined in our internal regulations have notbeen listed.
4. Executive officers, excluding the directors
concurrently serving as executive officers
and executive officers responsible for global
regional operations of Mizuho Bank, have notbeen listed.
5. Executive officers, excluding the directors
concurrently serving as executive officers ofMizuho Trust & Banking and Mizuho Securities,
have not been listed.
(As of June 25, 2020)

Location of offices outside Japan (As of June 30, 2020)
Network of Mizuho Bank
Asia and Oceania(Country/Region)
Australia
Sydney Branch
Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 61-2-8273-3888

Mizuho Australia Ltd.

Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 61-2-8273-3888

Cambodia

Phnom Penh Branch
1st Floor, AEON MALL Phnom Penh (I), No132,
Samdach Sothearos Blvd, Sangkat Tonle Basak,
Khan Chamkar Mon, Phnom Penh, Cambodia
Tel 855-23-964-490

China

Mizuho Bank (China), Ltd.
21st Floor (Operation Counter), 23rd Floor (Reception),
Shanghai World Financial Center, 100 Century Avenue,
Pudong New Area, Shanghai 200120,
The People’s Republic of China
Tel 86-21-3855-8888

Mizuho Bank (China), Ltd.
Shanghai Hongqiao Sub-Branch

Room 504; 510; 511; 515 (Nominal No. Room A601;
A602; B601; B602), Hongqiao Sunnyworld Center,
No. 1226 South Shenbin Road, Minhang District,
Shanghai 201106, The People’s Republic of China
Tel 86-21-3411-8688

Mizuho Bank (China), Ltd.
Shanghai Pilot Free Trade Zone Sub-Branch
Room 01, 08, 09, 10, 11, 12, 7F, Shanghai International
Communication and Trade Building, 55 Jilong Road,
Shanghai 200131, The People’s Republic of China
Tel 86-21-3855-8888

Mizuho Bank (China), Ltd.
Beijing Branch

Mizuho Bank (China), Ltd.
Shenzhen Branch

30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People’s Republic of China
Tel 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch

17th Floor, Genway Building, 188 Wangdun Road,
Suzhou Industrial Park, Suzhou, Jiangsu Province 215123,
The People’s Republic of China
Tel 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Branch

Room No. 1902-1907, No. 7 Office Building Wanda Plaza,
130 Maanshan Street, Baohe District, Hefei,
Anhui Province, The People’s Republic of China
Tel 86-551-6380-0690

Mizuho Bank (China), Ltd.
Qingdao Branch

44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District, Qingdao,
Shandong Province 266071,
The People’s Republic of China
Tel 86-532-8097-0001

Mumbai Branch

Level-17, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai-400 013, India
Tel 91-22-4911-2000

Ahmedabad Branch

5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People’s Republic of China
Tel 86-27-8342-5000

Mizuho Bank (China), Ltd.
Wuxi Branch

8th Floor, Wuxi SI Park B, No. 16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People’s Republic of China
Tel 86-510-8522-3939

Mizuho Bank (China), Ltd.
Changshu Sub-Branch

Room701-704, Kechuang Building, No. 33 Dongnan Road,
Changshu New & Hi-tech Industrial Development Zone,
Jiangsu Province, 215500, The People’s Republic of China
Tel 86-512-6733-6888

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch

Mizuho Bank (China), Ltd.
Hefei Branch

Unit-11B, 11th floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai-600 006, India
Tel 91-44-4928-6600

Mizuho Bank (China), Ltd.
Wuhan Branch

Mizuho Bank (China), Ltd.
Dalian Branch

25th Floor, International Finance Place, No. 8 Huaxia Road,
Zhujiang New Town, Tianhe District, Guangzhou,
Guangdong Province 510623,
The People’s Republic of China
Tel 86-20-3815-0888

Chennai Branch

New Delhi Branch

22nd Floor, International Business Building of Gugeng,
No. 81 Hongmei Area, Dalian Economic & Technological
Development Area, Dalian, Liaoning Province 116600,
The People’s Republic of China
Tel 86-411-8793-5670

Mizuho Bank (China), Ltd.
Guangzhou Branch#462/440/339, 2nd floor, Near Jain Temple,
NH 7/4-207, B. B. Road, Vijayapura Cross, Devanahalli,
Bangalore-562 110, India
Tel 91-80-4968-2000

11th Floor, International Financial Center Building,No.136 Chifeng Road, Heping District, Tianjin,
The People’s Republic of China
Tel 86-22-6622-5588

8th Floor, West Wing, World Financial Center,
No. 1 Dong San Huan Zhong Road, Chaoyang District,
Beijing 100020, The People’s Republic of China
Tel 86-10-6525-1888

23rd Floor, 24th Floor-A, Senmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
Tel 86-411-8360-2543

India
Bangalore-Devanahalli Branch

Room D,E, 18th Floor, Dongan Building,
No. 258 Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People’s Republic of China
Tel 86-512-6733-6888

Nanjing Representative Office

Room 2220, Suning Universal Hotel, 188 Guangzhou Road,
Nanjing, Jiangsu Province 210024,
The People’s Republic of China
Tel 86-25-8332-9379

Xiamen Representative Office

Room 2102, The Bank Center, No. 189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People’s Republic of China
Tel 86-592-239-5571

Hong Kong
Hong Kong Branch
13/F, K11 Atelier, 18 Salisbury Road Tsim Sha Tsui,
Kowloon Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2306-5000

1st floor, DLF Capitol Point, Baba Kharag Singh Marg,
Connaught Place, New Delhi-110 001, India
Tel 91-11-3041-0900
Office-A402, 4th floor, Commerce House-5,
Nr. Vodafone House, Corporate Road, Prahladnagar,
Ahmedabad-380 051, India
Tel 91-79-4014-4666

Indonesia
PT. Bank Mizuho Indonesia
Menara Astra, 53rd Floor, Jl. Jend. Sudirman Kav.
5-6, Jakarta 10220, Republic of Indonesia
Tel 62-21-392-5222

Korea
Seoul Branch
5th Floor, Seoul Finance Center, 136, Sejong–daero,Jung–gu, Seoul, Korea
Tel 822-3782-8500

Malaysia
Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Federal Territory of Labuan, Malaysia
Tel 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
Tel 60-3-2058-6881

Myanmar
Yangon Branch
Sedona Business Suites, Level 4,
No. 1 Ka Ba Aye Pagoda Road, Yankin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-860-5501

Yangon Branch Thilawa Front Office

Room No. 204, Administration Building,Corner of Thilawa Development Road and Dagon-Thilawa
Road, Thilawa SEZ, Thanlyin Township, Yangon,
Republic of the Union of Myanmar
Tel 95-1-230-9046

Philippines
Manila Branch
25th Floor, Zuellig Building, Makati Avenue corner Paseo deRoxas, Makati City 1225, Metro Manila, Philippines
Tel 63-2-8860-3500

India

2020 Integrated Report128Singapore
Singapore Branch
12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
Tel 65-6805-2000

TaiwanKaohsiung Branch
12th Floor, No. 2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
Tel 886-7-236-8768

Taichung Branch

8th Floor, No. 169, Fuhui Parkway, Taichung 407, Taiwan
Tel 886-4-2374-6300

Taipei Branch

8-9th Floor, Cathay Landmark Square,
68 Zhong Xiao East Road, Xinyi District,Taipei, Taiwan
Tel 886-2-8726-3000

Thailand

Bangkok Branch
98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTel 66-2-163-2999, 2-002-0222

Eastern Seaboard Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
Tel 66-3-899-7000

Vietnam

TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany
Tel 49-69-29-72-95-0

Iran

The Americas(Country/Region)
BahamasMizuho Bank (USA) Nassau Branch

Tehran Representative Office

308 East Bay Street, P.O. Box N-7768, Nassau, Bahamas

Unit 602, No.22, 7th Street, Velenjak Avenue,
Tehran, Iran, Postal code: 1985834706
Tel 98-21-2635-4711/4722

BrazilBanco Mizuho do Brasil S.A.

Italy

Milan Branch
6th Floor, Largo Augusto 7, 20122 Milan, Republic of Italy
Tel 39-02-778-0001

Saudi Arabia

Mizuho Saudi Arabia Company
North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
Tel 966-11-273-4111

South Africa
Johannesburg Representative Office
2nd Floor, West Tower, Maude Street,
Nelson Mandela Square, Sandton 2196, South Africa,
P.O. Box 785553, Sandton 2146
Tel 27-11-881-5410

Spain
Mizuho Bank Europe N.V.
Madrid Branch

Avenida Presidente Juscelino Kubitschek,
2041- Torre E-7 andar, Vila Olimpia, Sao Paulo, SP,
CEP. 04543-011, Brazil
Tel 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
Tel 1-416-874-0222

Calgary Office

Suite 1000, 888 3rd Street, South West, Calgary, Alberta,
Canada, T2P 5C5
Tel 1-403-444-5375

Cayman Islands
Cayman Branch
P. O. Box 1353, Harbour Place, 5th Floor,
103 South Church Street, George Town,
Grand Cayman KY1-1108, Cayman Islands

Chile
Santiago Representative Office

Calle Orense 34, Planta 8, Edificio Iberia Mart Ⅱ,
28020 Madrid, Spain
Tel 34-91-598-2905

Av. Apoquindo 3650, Oficina 1201, Las Condes,
Santiago, Chile
Tel 56-2-3203-5773

Ho Chi Minh City Branch

The Netherlands
Mizuho Bank Europe N.V.

MexicoMexico Representative Office

Europe, the Middle East and Africa

TurkeyIstanbul Representative OfficeHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
Tel 84-24-3936-3123/3124
18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
Tel 84-28-3827-8260/8292(Country/Region)

AustriaMizuho Bank Europe N.V.
Vienna Branch

DC Tower 26th Floor, Donau-City-Strasse 7,1220 Vienna, Austria
Tel 43-1-269-1000-00

Bahrain

Bahrain Representative Office
Suite 201-202, Entrance 4, 2nd Floor, Manama Center,
Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
Tel 973-17-224522

BelgiumMizuho Bank Europe N.V.
Brussels Branch

Avenue Louise 480, 1050 Brussels, Belgium
Tel 32-2-645-5280

FranceParis Branch
Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
Tel 33-1-5383-4000

Germany

Duesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf, F.R. Germany
Tel 49-211-13020

129

Frankfurt Branch

Mizuho Financial Group

Atrium Amsterdam, 3rd Floor, Strawinskylaan 3053,
1077 ZX Amsterdam, The Netherlands
Tel 31-20-5734343

Office 813, Tekfen Tower 8th Floor,
Buyukdere Caddesi No. 209, 4. Levent 34394, Istanbul,
TurkeyTel 90-212-371-8474

UAE
Abu Dhabi Branch
Al Sila Tower, 24th Floor, Abu Dhabi Global Market Square,
Al Maryah Island, P.O. Box No:764647, Abu Dhabi,
United Arab Emirates
Tel 971-2-694-8551

DIFC Branch-Dubai
The Gate Building, East Wing, Level 5, Dubai International
Financial Centre, P.O. Box No: 506607, Dubai, United ArabEmiratesTel 971-4-279-4400

United Kingdom

London Branch
Mizuho House, 30 Old Bailey, London EC4M 7AU, U.K.
Tel 44-20-7012-4000

RussiaAO Mizuho Bank (Moscow)
5th floor, 20, bld. 1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
Tel 7-495-212-0333

Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Mizuho Bank Mexico, S.A.
Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, MexicoTel 52-55-5281-5037

Mizuho Bank Mexico, S.A.
Leon Office

Blvd. Paseo de los Insurgentes 3356, Torre 2,
nivel 2, Col. San Jose de las Piletas, 37530 Leon,
Guanajuato, MexicoTel 52-477-6885-248/249

USA
Chicago Branch
311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Los Angeles Branch

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

New York Branch

1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

1251 Building Branch

1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano,
TX 75024, USA
Tel 1-972-324-3350

Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
Tel 1-713-499-4800

San Francisco Representative Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Washington, D.C. Representative Office1275 Pennsylvania Avenue, NW, Suite 310, Washington,
DC 20004, USA
Tel 1-202-292-5080

Mizuho Bank (USA)1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
Tel 1-404-364-1550

Mizuho Bank (USA)
Chicago Representative Office

311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
Tel 1-312-855-1111

Mizuho Bank (USA)
Dallas Representative Office5345 Towne Square Drive, Suite 285, Plano, TX 75024,
USA
Tel 1-972-324-3350

Mizuho Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
Tel 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

Mizuho Bank (USA)1251 Building Branch

1251 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-282-3000

Mizuho Bank (USA)San Francisco Representative Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-365-1750

Mizuho Desk(Country/Region)

UAE
Mashreqbank psc
Japan Desk, Mashreqbank Building 3F, Dubai Internet City,
Mashreqbank, P.O. Box 1250, Dubai, United Arab Emirates
Tel 971-4-363-2053“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our clients financial services through various
institutions. (Transactions are conducted directly
between the client and the local financial institution.)

Network of Mizuho Trust & Banking

Mizuho Securities USA LLC

Mizuho Trust & Banking(Luxembourg) S.A.

Mizuho Securities USA LLC
Boston Office

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
Tel 352-42-16-17-1

Network of Mizuho Securities
Beijing Representative Office8011, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
Tel 86-10-6523-4779

Shanghai Representative Office

T60 17th floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
Tel 86-21-6877-8000

Mizuho Securities Asia Limited

1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-209-9300

125 High Street, 21st Floor, Boston, MA 02110, USA
Tel 1-617-235-1722

Mizuho Securities USA LLC
Chicago Office

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
Tel 1-312-294-8800

Mizuho Securities USA LLC
Houston Office2700 Post Oak Blvd., Suite 1270, Houston,
TX 77056, USA
Tel 1-713-499-4800

Mizuho Securities USA LLC
Los Angeles Office

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
Tel 1-213-243-4500

14-15/F, K11 Atelier, 18 Salisbury Road,
Tsim Sha Tsui, Kowloon, Hong Kong, S.A.R.,
The People’s Republic of China
Tel 852-2685-2000

Mizuho Securities USA LLC
San Francisco OfficeMizuho Securities Asia Limited
Seoul Branch

Mizuho Securities Canada Inc.

5th Floor, Seoul Finance Center, 136,
Sejongdaero, Jung-gu, Seoul, 04520, Korea
Tel 822-2206-1800

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
Tel 1-415-268-5500
1271 Avenue of the Americas, New York, NY 10020, USA
Tel 1-212-209-9300

Mizuho Securities Asia Limited(Sydney Office)Level 29, 60 Martin Place, Sydney NSW 2000 Australia
Tel 612-7904-3555

Mizuho Securities India Private Limited

Level-18, Tower-A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai-400 013, India
Tel 91-22-4353-7600

Mizuho Securities (Singapore) Pte. Ltd.
12 Marina View #10-01A, Asia Square Tower 2,
Singapore 018961
Tel 65-6603-5688

Mizuho (Switzerland) Ltd

Loewenstrasse 32, 8021 Zurich, Switzerland
Tel 41-44-216-9111

Mizuho International plc

Mizuho House, 30 Old Bailey, London EC4M 7AU, U.K.
Tel 44-20-7236-1090

Mizuho International plc(DIFC Branch)

The Gate Building, East Wing, Level 5,
Dubai International Financial Centre,
PO Box 507206, Dubai, U.A.E.
Tel 971-4-427-5312

Mizuho Securities Europe GmbH
TaunusTurm 34th Floor, Taunustor 1,
60310 Frankfurt am Main, Germany
Tel 49-69-42729-3000

Mizuho Securities Europe GmbH
Madrid Branch

Calle Orense, 34, Edifico Iberia Mart II, 8th floor,
28020, Madrid, Spain
Tel 34-917-90-7551

Mizuho Securities Europe GmbH
Paris Branch
Washington Plaza, 40, rue Washington,
75008 Paris, France

2020 Integrated Report130

Investor information

Date of establishment

Convocation of general meetings of shareholders¥2,256.7 billion

An ordinary general meeting of shareholders of the Company
shall be convened no later than 3 months from the last day ofeach business year and an extraordinary general meeting ofshareholders shall be convened whenever necessary.

Issued shares

Record date

January 8, 2003

Paid-in capital

25,392,498,945 shares

Number of shareholders
Common stock: 991,573

Major shareholders (common stock)
Shares held

Percentageof shares
outstanding(%)

1

The Master Trust Bank of Japan, Ltd.
1,642,845,500(Trustee account)

6.47

2

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,109,233,400

4.36

3

Japan Trustee Services Bank, Ltd.
(Trustee account 5)545,964,100

2.15

4

Japan Trustee Services Bank, Ltd.
(Trustee account 9)522,476,800

2.05

5

JPMorgan Chase Bank 385151

443,776,306

1.74

6

State Street BankWest Client – Treaty 505234

423,565,756

1.66

7

Japan Trustee Services Bank, Ltd.
(Trustee account 7)384,499,000

1.51

8

State Street BankAnd Trust Company 505103

293,537,902

1.15

9

Japan Trustee Services Bank, Ltd.
(Trustee account 1)

280,082,100

1.10

10

Japan Trustee Services Bank, Ltd.
(Trustee account 4)

263,338,400

1.03(As of March 31, 2020)

Stock listing(common stock)

Tokyo Stock Exchange

Accounting auditors

Ernst & Young ShinNihon LLC

Shareholder register manager
Mizuho Trust & Banking Co., Ltd.

Share unit
100 sharesFiscal year

April 1 to March 31

131

Mizuho Financial Group

Organizations that decide dividends from surplus

The Company may decide distribution of dividends fromsurplus and other matters provided for in each item of Article
459, Paragraph 1 of the Act, but by a resolution of the Board of
Directors, unless otherwise provided for in laws or regulations.

Record date for distribution of dividends from surplus

Notes: 1. Figures for the Percentage of Shares Outstanding are rounded
down to the nearest second decimal place.
2. The Percentages of Shares Outstanding are calculated by excluding
the treasury stock (3,622,415 shares).


1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register ofshareholders as of the end of March 31 of each year as theshareholders who are entitled to exercise their rights at theordinary general meeting of shareholders for the relevantbusiness year.
2. The provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is amatter to be resolved at an ordinary general meeting ofshareholders that requires, in addition to such resolution, aresolution by the relevant general meeting of holders of classof stock.
3. In addition to the preceding two paragraphs, the Company
may set an extraordinary record date, when necessary, by
a determination by Executive Officer(s) under the authority
delegated by the Board of Directors and upon giving a priorpublic notice thereof.

The record dates for distribution of dividends from surplus of
the Company shall be March 31 and September 30 of each year.

ADR* information

Outline of Mizuho Financial Group’s ADR
New York Stock Exchange
1. Exchange :MFG
2. Ticker symbol :60687Y109
3. CUSIP :4. Conversion ratio :1 ADR = 2 common shares
The Bank of New York Mellon
5. Depositary bank :6. Local custodian bank : Mizuho Bank, Ltd.
* ADRs are securities issued for the purpose of trading in the US in place of
the underlying stock of foreign companies. As ADRs are registered with
the SEC as US securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of US companies. ADR is anacronym for American Depositary Receipts.

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis[Under Japanese GAAP]133

Key Indicators of Mizuho Financial Group, Inc.

135

Status of Asset Quality

132

Financial Analysis-Index

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

2020

2019

2018

2017

2016

¥3,988.9448.5
7.6
8,663.8
214,659.0
144,472.2
83,468.1
34,907.2¥3,936.9
96.5(110.5)
9,194.0
200,792.2
137,649.5
78,456.9
29,774.4¥3,590.8
576.5
765.5
9,821.2
205,028.3
136,463.8
79,421.4
34,183.0¥3,351.7
603.5
558.1
9,273.3
200,508.6
130,676.4
78,337.7
32,353.1¥3,235.6
670.9
304.5
9,353.2
193,458.5
117,456.6
73,708.8
39,505.9

Net Assets per Share (Yen)

337.29345.00357.41335.96322.46

Profit Attributable to Owners of Parent
per Share (Yen)

17.68

3.80

22.72

23.86

26.94

Diluted Profit Attributable to Owners of Parent
per Share (Yen)

17.68

3.80

22.72

23.78

26.42

(International Standard (Basel III)) (Note)
Tier 1 Capital Ratio

17.25%

18.85%

18.24%

16.28%

15.41%(International Standard (Basel III)) (Note)
Common Equity Tier 1 Capital Ratio

14.52%

15.94%

15.44%

13.30%

12.64%(International Standard (Basel III)) (Note)

11.65%

12.76%

12.49%

11.34%

10.50%

5.1%
6.98x

1.0%
44.99x

6.5%
8.42x

7.2%
8.54x

8.3%
6.23x

1,901.8(5,808.5)(281.8)39,863.6(2,636.0)
5,487.1(18.6)
44,254.8

2,966.7(2,316.1)
149.9
46,334.3

4,690.1
5,796.3(24.5)
45,523.6

4,104.1
3,687.8(521.0)35,089.1

Total Income
Profit Attributable to Owners of Parent
Comprehensive Income
Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities

Total Capital Ratio

Net Return on Equity
PER (Times)
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash and Cash Equivalents at the end of the fiscal year

Note: Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy in consideration of assets held by abank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006)

133

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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

As of or for the Fiscal Years ended March 31,

2020

2019

2018

2017

2016

Operating Income
Net Income

¥75.4
34.0

¥331.3354.5¥305.0257.1¥378.0326.6¥333.5304.3

2,256.7

2,256.7

2,256.5

2,256.2

2,255.7

Common Stock and Preferred Stock
Number of Shares Issued and Outstanding
Common Stock
Eleventh Series Class XI Preferred Stock()(

Net Assets
Total Assets

25,392,498,945hares—shares)(

25,392,498,945shares—shares)(

25,389,644,945shares—shares)(

25,386,307,945shares—shares)(

25,030,525,657shares
914,752,000shares)

5,362.4
12,823.7

5,518.7
11,637.1

5,441.3
10,587.7

5,342.5
9,269.3

5,197.2
7,064.2

Net Assets per Share (Yen)
211.36
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
7.5—
Eleventh Series Class XI Preferred Stock (Note)

217.52214.43210.51203.58

7.5
—

7.5
—

7.5
—

7.5
20

(

Common Stock
Eleventh Series Class XI Preferred Stock (Note)
Net Income per Share (Yen)
Diluted Net Income per Share (Yen)PER (Times)
Dividend Propensity

)(

)(

)(

)(

)(

)

3.75
—

3.75
—

3.75
—

3.75
—

3.75
10

1.34
1.34

13.97
13.97

10.13
10.13

12.91
12.86

12.17
11.98

92.07x558.69%12.25x53.65%

18.88x73.98%

15.79x58.06%

13.81x61.62%

Note: Mizuho Financial Group Inc. ("MHFG") acquired all of the Eleventh Series Class XI Preferred Stock as of July 1, 2016 that had not been requested for acquisition by June 30, 2016 and calcelled allof the Eleventh Series Class XI Preferred Stock held by MHFG on July 13, 2016. Accordingly, the cash dividends per share of the Eleventh Series Class XI Preferred Stock for the fiscal year ended
March 31, 2017 and after have not been recorded.

134

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Credit-related Costs
Credit-related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Expenses related to Portfolio Problems (including Reversal of(Provision for) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Gains on Reversal of Reserves for Possible Losses on Loans andothers2020

2019

Change¥171.7

¥19.5

152.1

183.3

30.7

152.5

21.9

26.3

(4.4)

(11.6)(11.1)

(0.4)

—

—

—

Credit Costs for Trust Accounts○ Overview of Non-performing Loans (NPLs) as of March 31, 2020 (the Two Banks) (Banking Accounts)
Billions of yen

1. SELF-ASSESSMENT
ObligorCategorization

NonCategorization

Category II

Category III

Category IV

51.0
Bankrupt and Substantially
Bankrupt Obligors
51.0

Collateral, Guarantees, etc.:
45.2
Reserves for Possible Losses.:

Reserve
Ratio
100%

DirectWrite-offs

2. Non Performing Loans
based on the Financial
Reconstruction Act
Claims against Bankrupt
and Substantially Bankrupt
Obligors
51.0

3. Non-Accrual, Past
Due & Restructured
Loans
Loans to Bankrupt Obligors
14.7

Coverage Ratio 100%

5.7

Non-Accrual
Intensive Control
Obligors
386.5

317.4
Collateral, Guarantees, etc.:
149.5
Reserves for Possible Losses:

Watch Obligors

167.8

Claims for Special
Attention
223.4

Reserve Ratio against
Uncovered Portion
23.5%
Collateral, Guarantees, etc.:
68.2
Reserves for Possible Losses:

36.5

Special Attention Obligors

Other Watch Obligors
Normal Obligors

69.1
Reserve
Ratio
70.8%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors-Coverage Ratio: 50.7%-Reserve Ratiofor Uncovered Portion: 23.3%-Reserve Ratio
against Total Amount ofClaims: 15.0%
Reserve Ratio
against Total Amount of Claims·Other Watch Obligors: 4.91%·Normal Obligors: 0.09%

Total
94,543.1

Claims with Collection Risk
386.5

Delinquent Loans
383.7

Coverage Ratio 82.1%
39.0 (Notes 2)
Claims for Special
Attention (Notes 1)
223.4
Coverage Ratio 46.9%

Loans Past Due for
3 Months or More
1.4
Restructured Loans
222.0

Total Coverage Ratio
71.6%

Total
661.0

Total
621.9

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Non Performing Loans based on the FRA represents the amount of claims other than loans included in Non
Performing Loans based on the FRA.

135

Credit-related Costs、Overview of Non-performing Loans (NPLs)

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Status of Non Performing Loans based on the FRA
Non Performing Loans based on the FRA (Consolidated)(Consolidated)
Billions of yen

As of March 31,

2020

2019

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥59.2
383.7
257.8

¥59.7
358.8
195.8

¥(0.5)
24.8
62.0

Sub-total [1]Normal Claims¥700.892,661.2¥614.487,171.5¥86.4
5,489.7

Total [2]¥93,362.1¥87,785.9¥5,576.1

2020

2019

Change

0.75%

0.69%

0.05%

As of March 31,

2020

2019

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥—
—
—

¥—
2.7
—

¥—
(2.7)
—

Sub-total
Normal Claims

¥—
8.7

¥2.7
7.0

¥(2.7)
1.7

¥8.7

¥9.8

¥(1.0)

As of March 31,

2020

2019

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥59.2
383.7
257.8

¥59.7
361.6
195.8

¥(0.5)
22.1
62.0¥700.892,670.0¥617.2
87,178.5¥83.6
5,491.4¥93,370.9¥87,795.8¥5,575.1%

NPL ratio [1] / [2]Note: Above figures are presented net of partial direct write-offs.

(Trust Accounts)
Billions of yen

Total(Consolidated and Trust Accounts)
Billions of yen

Sub-total
Normal Claims
Total

136

Status of Disclosed Claims under the FRA

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2020

2019

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥15.9
401.0
1.4
256.4

¥11.3
379.2
0.4
195.3

¥4.5
21.7
1.0
61.0

¥674.8¥586.4

¥88.4

2020

2019

Change

¥79.8

¥87.4

¥(7.5)

2020

2019

Change

0.01%
0.48
0.00
0.30

0.01%
0.48
0.00
0.24

0.00%
(0.00)
0.00
0.05

0.80%

0.74%

0.06%

2020

2019

Change¥424.4
239.0
185.4
―

¥287.8
136.0
151.7
0.0

¥136.6
103.0
33.6
(0.0)

2020

2019

Change

¥89.2

¥92.2

¥(3.0)

2020

2019

Change62.89%

49.07%

13.81%

Total
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

After Partial Direct Write-offs
Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

137

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2020

2019

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥—
—
—
—

¥—
2.7
—
—

¥—
(2.7)
—
—

¥—

¥2.7

¥(2.7)

As of March 31,

2020

2019

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

—%
—
—
—

—%
28.15
—
—

—%
(28.15)———%28.15%(28.15)%

As of March 31,

2020

2019

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥15.9
401.0
1.4
256.4

¥11.3
381.9
0.4
195.3

¥4.5
19.0
1.0
61.0

¥674.8¥589.1

¥85.6

2020

2019

Change

0.01%
0.48
0.00
0.30

0.01%
0.48
0.00
0.24

0.00%
(0.00)
0.00
0.05

0.80%

0.75%

0.05%

Total

Ratio to Total Loans%

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

Total
Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

138

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %As of March 31,

2020
Outstanding
Balance Composition

2019
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarrying Industry & Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other¥55,147.0
9,642.2
54.7
3.3
226.9
725.7
2,834.9
1,436.6
2,360.1
4,930.1
4,795.2
8,713.2
2,884.9
3,108.7754.7
1,443.5
11,231.5
28,321.1
355.3
9,106.0
18,859.7¥53,453.4
9,440.0
47.4
2.1
247.1
667.2
2,800.5
1,283.5
2,370.8
4,872.3
4,468.9
8,141.4
2,172.5
2,873.0794.3
1,564.4
11,707.4
25,003.4
346.0
7,817.9
16,839.4¥1,693.5
202.2
7.2
1.1
(20.1)
58.4
34.3
153.1
(10.6)
57.8
326.2
571.8
712.4
235.7
(39.5)(120.8)(475.9)3,317.7
9.2
1,288.1
2,020.3/(0.18)%
0.01
0.01(0.05)
0.07(0.10)
0.20(0.16)(0.18)
0.33
0.57
1.17
0.27
(0.12)(0.31)(1.53)/(0.12)
0.88(0.76)¥5,011.2/

Total¥83,468.1

100.00%
17.48
0.10
0.01
0.41
1.32
5.14
2.60
4.28
8.94
8.69
15.80
5.23
5.64
1.37
2.62
20.37
100.00
1.26
32.15
66.59
/

¥78,456.9

100.00%
17.66
0.09
0.00
0.46
1.25
5.24
2.40
4.44
9.12
8.36
15.23
4.06
5.37
1.49
2.93
21.90
100.00
1.38
31.27
67.35
/

Notes :1. Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries
2. A reclassification of Industry type has been made on the above table as of March 31, 2019 for consistency with current figures.

○ Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2020

Billions of yen, %As of March 31, 2019

―
―

¥―
―

ZambiaArgentina

Total
Ratio to Total Assets

¥―
―%

Total
Ratio to Total Assets

Billions of yen, %

¥0.0
0.0
¥0.0
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

139

Status of Loans by Industry、Status of Loans by Nationality of Borrowers

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]141

Independent Auditor’s Report

145

Consolidated Financial Statements

157

Notes to Consolidated Financial Statements

140

Financial Data of Mizuho Financial Group, Inc.-Index

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

Independent Auditor’s Report
The Board of Directors
Mizuho Financial Group, Inc.

OpinionWe have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc. and its consolidated
subsidiaries (the Group), which comprise the consolidated balance sheet as at March 31, 2020, and the consolidated
statements of income, comprehensive income, changes in net assets, and cash flows for the year then ended, and notes tothe consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Group as at March 31, 2020, and its consolidated financial performance and its consolidated cash
flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of the audit of theconsolidated financial statements as a whole, and in forming the auditor’s opinion thereon, and we do not provide aseparate opinion on these matters.
(1) Reasonableness of self-assessment of loans, write-offs and reserve provisions
Description of Key Audit Matter

Auditor’s Response

As described in (10) “Reserves for Possible Losses on
Loans” in Note 5, “Standards of Accounting Method,” theCompany recognizes the Reserves for Possible Losses on
Loans based on the internally established standards for
self-assessment of loans and for write-offs and reserve
provisions, considering the borrower’s financial condition,
the value of collateral pledged and the economic
environment. As the Company has extended credit toborrowers in a wide range of industry sectors both in Japanand overseas, the Company may incur additional reserves
for possible losses on loans due to the increase of nonperforming loans, deterioration in the credit worthiness ofthe borrowers and devaluation of collateral and/or
guarantees, depending on economic environment in Japanand overseas, changes in the business environment incertain industry sectors and declines in the prices of realestate and other assets.
The process of recognizing Reserves for Possible Losses
on Loans involves significant judgment by management.

We obtained an understanding, evaluated the design andtested the operating effectiveness of the controls over theCompany’s allowance for loan losses process. The
controls tested included, but were not limited to, controls
over the validation and monitoring process that covers
models used to determine the obligor ratings, controls thatmanagement periodically reviews and challenges theobligor ratings, controls that evaluates the expected future
cash flows used to determine loan impairment amounts
and controls that evaluates the reasonableness ofsignificant assumptions and judgments used in adjusting
the allowance.
Also, we performed the following substantive procedures:･ We selected a sample of obligors both from aquantitative and qualitative perspective and evaluatedthe obligor ratings. Our sample considered various risks,such as the type of industry, sector and financial
condition of the borrower. We inspected the evidence
supporting these ratings and compared the ratings and141

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Description of Key Audit Matter

Auditor’s Response

The assignment of obligor ratings to borrowers andestimating the expected future cash flows of impairedloans require significant judgment. Additionally, significant
uncertain economic and business conditions affect key
lending areas of the Company and the amount of Reserves
for Possible Losses on Loans. Specifically, as of March 31,
2020, the Company identified certain industries andobligors which are most likely to be affected by the
COVID-19 pandemic and adjusted its Reserve for Possible
Losses on Loans for these loan groups, using assumptions
such as anticipated business recovery period and current
forecast for the growth rate of gross domestic product(“macroeconomic data”).
As stated in the consolidated balance sheet, the Company
recorded loans of 83,468,185 million yen and Reserves for
Possible Losses on Loans of 424,446 million yen as ofMarch 31, 2020, which have a significant effect on thefinancial position and operating results of the Company.
We have identified the Reserves for Possible Losses on
Loans, specifically determining obligor ratings,
macroeconomic data used in determining the adjustment
and estimates related to the expected future cash flowsthat are developed when measuring impaired loans, as a
key audit matter.

the related supporting evidence to management’s
obligor rating definitions and made inquiries to the credit
risk management division.
For the key judgments used in the models to determine
the obligor ratings and the expected future cash flows
related to self-assessment of loans, write-offs andreserve provisions, we considered and evaluatedrelevant market and industry information, whenavailable, and identified key data inputs and assessed
those through inspection and recalculation, andcompared the actual results with the estimates made inprior years. We involved our specialists in testing theareas requiring complex judgement and calculation.
･ We evaluated the reasonableness of methodology andmacroeconomic data used by management in estimating
the adjustment of the allowance for loan losses. We also
involved our specialist in testing the assumption andcalculations in the areas requiring complex assumptions
and calculations.

(2) Appropriateness of fair value measurement of illiquid financial instruments with no quoted market prices
Description of Key Audit Matter

Auditor’s Response

As described in Note “Financial Instruments,” the Company
carries various types of financial instruments for treasury
and certain trading activities the majority of which arereported at fair value on the consolidated balance sheet.
Financial instruments measured at fair value include but
not limited to marketable securities such as equities andfixed income securities, and derivative instruments
involving interest rates, currencies, equities and debts.
Some illiquid financial instruments with no quoted market
prices are reported at fair value which is determined basedon the management’s estimates and assumptions.
In a calculation of fair value, a mark-to-market valuation
model is developed, and certain input parameters areused, including probabilities of default, recovery rates andvolatilities. Therefore, the fair values outcome may varydepending on different assumptions.
The fair value measurement of illiquid financial instrumentswith no quoted market prices involves significant
management judgments including the development of amark-to-market valuation models and the determination of
input parameters.
Also, as discussed in Note “Financial Instruments”, theCompany carries illiquid financial instruments with no

We obtained an understanding, evaluated the design andtested the operating effectiveness of the controls over theCompany’s derivatives and debt fair valuation processes.
The controls tested included, but were not limited to,controls over significant inputs included in the fair value
measurements and controls over the appropriateness ofthe valuation techniques utilized within the internallydeveloped valuation models.
Also, we involved our specialists to assist us in performing
the following substantive procedures:･ We inspected the outcome of the Company’s
independent price verification process and assessed any
issues in the fair value measurement identified throughour procedures and evaluated the reasonableness of thejudgment.
･ We tested certain input parameters used in scope of ourverification considering the risks in terms of the degreeof subjectivity involved in determining those parameters
as well as the quantitative impact on the fair value
measurement and compared them with the third-party
market information we obtained independently.
･ We evaluated the valuation techniques used in thecontext of the suitability with market practices.

142

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Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

Description of Key Audit Matter

Auditor’s Response

quoted market price as of March 31, 2020. These financial
instruments are significant to the Company’s financial
position and operating results. Accordingly, we haveidentified the fair value measurement of illiquid financial
instruments with no quoted market price as a key audit
matter.

･ We tested the mathematical accuracy of the Company’svaluation calculation. To determine the extent, weconsidered risks associated with the complexity of thevaluation techniques used in addition to the quantitative
impact on the fair value measurements.

Responsibilities of Management, the Audit Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue
as a going concern and disclosing, as required by accounting principles generally accepted in Japan, matters related togoing concern.
The Audit Committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:･ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion.
･ Consider internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances for our risk assessments, while the purpose of the audit of the consolidated financial statements is not
expressing an opinion on the effectiveness of the Group’s internal control.
･ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
･ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
･ Evaluate the overall presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation in accordance with accounting principles generally accepted in Japan.
･ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with the ethical requirements regarding
independence that are relevant to our audit of the financial statements in Japan, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.

143

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From the matters communicated with the Audit Committee, we determine those matters that were of most significance inthe audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31,
2020 are presented solely for convenience. Our audit also included the translation of Japanese yen amounts into U.S.
dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the consolidated
financial statements.

Ernst & Young ShinNihon LLC
Tokyo, Japan
June 23, 2020

Ryuji Takagi
Designated Engagement Partner
Certified Public Accountant

Hiroshi Nishida
Designated Engagement Partner
Certified Public Accountant

Shinichi Hayashi
Designated Engagement Partner
Certified Public Accountant

Mitsuhiro Nagao
Designated Engagement Partner
Certified Public Accountant

144

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2020

As of March 31,

AssetsCash and Due from Banks (Notes 17, 39, 41 and 42)
Call Loans and Bills Purchased (Note 41)
Receivables under Resale Agreements (Note 41)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 41)
Other Debt Purchased (Notes 41 and 42)
Trading Assets (Notes 10, 17, 41 and 42)
Money Held in Trust (Notes 41 and 42)
Securities (Notes 9, 11, 17, 26, 41 and 42)
Loans and Bills Discounted (Notes 12, 17 and 41)
Foreign Exchange Assets (Note 13)
Derivatives other than for Trading Assets (Notes 41 and 43)
Other Assets (Notes 14, 17 and 42)
Tangible Fixed Assets (Notes 15, 28 and 40)
Intangible Fixed Assets (Note 40)
Net Defined Benefit Asset (Note 25)
Deferred Tax Assets (Note 27)
Customers' Liabilities for Acceptances and Guarantees (Note 26)
Reserves for Possible Losses on Loans (Notes 16 and 41)
Total Assets

145

Consolidated Balance Sheet¥

41,069,745 ¥
584,686
18,581,488

2019

45,108,602
648,254
12,997,628

2,243,161
2,578,133
2,688,273
2,828,959
13,248,734
12,043,608
411,847
351,889
34,907,234
29,774,489
83,468,185
78,456,935
2,044,415
1,993,668
1,944,060
1,328,227
5,206,121
4,229,589
1,103,622
1,037,006
636,139620,231
846,782
982,804
32,49337,9606,066,527
6,062,053(424,446)(287,815)¥ 214,659,077 ¥ 200,792,226

Thousands of
U.S. dollars (Note 1)
2020$

377,375,225
5,372,476
170,738,661

20,611,611
24,701,588
121,737,890
3,784,323
320,750,113
766,959,344
18,785,408
17,863,282
47,837,194
10,140,792
5,845,261
7,780,785
298,571
55,743,152(3,900,085)$ 1,972,425,591

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Balance Sheet—(Continued)

2019

Thousands of
U.S. dollars (Note 1)
2020¥ 144,472,235 ¥ 137,649,596
2,263,076
2,841,931
17,971,098
14,640,439$ 1,327,503,769
20,794,599
165,130,010

Millions of yen
2020

As of March 31,

Liabilities and Net Assets
Liabilities
Deposits (Notes 17, 18 and 41)
Call Money and Bills Sold (Notes 19 and 41)
Payables under Repurchase Agreements (Notes 17 and 41)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 17 and 41)
Commercial Paper (Note 20)
Trading Liabilities (Notes 10 and 41)
Borrowed Money (Notes 17, 21 and 41)
Foreign Exchange Liabilities (Note 13)
Short-term Bonds (Note 22)
Bonds and Notes (Notes 23 and 41)
Due to Trust Accounts (Note 41)
Derivatives other than for Trading Liabilities (Notes 41 and 43)
Other Liabilities (Note 24)
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability (Note 25)
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities (Note 27)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 28)
Acceptances and Guarantees (Note 26)
Total Liabilities
Net Assets
Common Stock (Note 29)
Capital Surplus
Retained Earnings
Treasury Stock (Note 29)
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 42)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 28)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 25)
Total Accumulated Other Comprehensive Income

1,108,255

1,484,584

10,183,368

411,089
941,1819,604,890
8,325,520
5,209,947
3,061,504
509,405
669,578
373,658
355,539
8,906,432
8,351,071
1,055,510
1,102,073
1,619,151
1,165,602
6,111,195
4,512,325
75,175
68,1172,559
2,867
62,11360,873
944
1,389
637
630
6,443
4,910
27,851
19,06818,672
25,5662,509
2,473
53,150185,974
62,69563,315
6,066,527
6,062,053¥ 205,995,229 ¥ 191,598,188

3,777,353
88,255,908
47,872,351
4,680,749
3,433,412
81,838,027
9,698,710
14,877,800
56,153,589
690,764
23,522570,743
8,675
5,858
59,203
255,914
171,578
23,063
488,380
576,089
55,743,152$ 1,892,816,586¥$

2,256,767 ¥
1,136,467
4,174,190(6,414)
7,561,010
823,085
72,081
136,655(133,178)
94,317
992,960

Stock Acquisition Rights (Note 30)

213

2,256,767
1,138,449
3,915,521(7,703)7,303,034
1,186,401(22,282)
137,772(111,057)
254,936
1,445,770
707

20,736,631
10,442,596
38,355,142(58,945)
69,475,424
7,563,036
662,336
1,255,677(1,223,732)
866,647
9,123,964
1,965

Non-controlling Interests

109,662444,525

1,007,652

Total Net Assets

8,663,847

9,194,038

79,609,005¥ 214,659,077 ¥ 200,792,226$ 1,972,425,591

Total Liabilities and Net Assets

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

146

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Income
Millions of yen
2020

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 31)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 32)
Other Operating Income (Note 33)
Other Income (Note 35)
Total Income
Expenses
Interest Expenses (Note 31)
Fee and Commission Expenses
Trading Expenses (Note 32)
Other Operating Expenses (Note 34)
General and Administrative Expenses
Other Expenses (Note 36)
Total Expenses¥

2,014,440
58,565
778,842406,539
412,114
318,438
3,988,940¥

2019

2,056,327
55,153765,977
299,355
312,815447,300
3,936,930

Thousands of
U.S. dollars (Note 1)
2020$

18,509,970
538,140
7,156,505
3,735,543
3,786,777
2,926,019
36,652,954

1,280,897
159,598
15,239152,547
1,378,398
383,542
3,370,223

1,293,846
155,550
1,987
225,5091,430,850
712,927
3,820,670

11,769,706
1,466,498
140,029
1,401,700
12,665,614
3,524,233
30,967,780

Income before Income Taxes
Income Taxes:
Current
Deferred
Total Income Taxes

618,717

116,259

5,685,174

150,088
11,408161,496

161,376(163,879)(2,502)

1,379,106
104,825
1,483,931

Profit457,221

118,762

4,201,243

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

147

Consolidated Statement of Income

8,652
¥

448,568

22,196¥96,566

79,505$

4,121,738

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Per Share of Common Stock
Yen
2020

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

2019

17.68
17.68
7.50

¥

U.S. dollars (Note 1)
2020

3.80
3.80
7.50

$

0.16
0.16
0.07

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statement of Comprehensive Income
Millions of yen
2020

For the Fiscal Years ended March 31,

ProfitOther Comprehensive Income (Note 37):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent:
Comprehensive Income Attributable to Non-controlling Interests:¥¥¥

457,221(449,547)(359,779)
94,536(20,650)(157,693)(5,961)
7,673(3,123)
10,797

¥

¥
¥

2019

118,762(229,304)(207,505)
45,391(23,882)(35,577)(7,730)(110,542)(128,692)
18,150Thousands of
U.S. dollars (Note 1)
2020

$

$
$

4,201,243(4,130,735)(3,305,887)
868,664(189,746)(1,448,992)(54,774)
70,508(28,702)
99,210See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

148

Per Share of Common Stock、Consolidated Statement of Comprehensive Income

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2020

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,767 ¥ 1,138,449¥ 3,915,521¥ (7,703)¥ 7,303,034

CommonStock

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,405)(190,405)

448,568

448,568(625)(1,908)(1,908)

3,197

2,571

1,117

1,117

(1,968)(1,968)

611

(611)

(1,981)

258,668

1,288

257,975¥ 2,256,767 ¥ 1,136,467¥ 4,174,190¥ (6,414)¥ 7,561,010――

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

149

Consolidated Statement of Changes in Net Assets

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Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2020

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 1,186,401¥ (22,282)¥ 137,772¥ (111,057)¥ 254,936

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,445,770

NonControlling
Interests

Total
Net Assets¥ 707 ¥ 444,525¥ 9,194,038

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,405)
448,568(1,908)
2,571
1,117

(1,968)―(363,316)

94,364(1,117)(22,120)(160,619)(452,809)(493)(334,862)(788,165)(363,316)

94,364(1,117)(22,120)(160,619)(452,809)(493)(334,862)(530,190)¥ 823,085¥ 72,081¥ 136,655¥ (133,178)¥ 94,317¥ 992,960¥ 213 ¥ 109,662¥ 8,663,847

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

150

Consolidated Statement of Changes in Net Assets

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,256,548 ¥ 1,134,922¥ 4,002,835¥ (5,997)¥ 7,388,309

CommonStock

Changes during the period
Issuance of New Shares

218

218

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod437(190,384)(190,384)

96,56696,566(23)(3,001)(3,001)

1,295

1,271

6,504

6,504

3,331

218

3,331

3,526

(87,313)(1,706)(85,274)¥ 2,256,767 ¥ 1,138,449¥ 3,915,521¥ (7,703)¥ 7,303,034

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

151

Consolidated Statement of Changes in Net Assets

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Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2019

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 1,392,392¥ (67,578)¥ 144,277¥ (85,094)¥ 293,536

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,677,534

NonControlling
Interests

Total
Net Assets¥ 1,163 ¥ 754,239¥ 9,821,246

Changes during the period
Issuance of New Shares

437

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,384)
96,566(3,001)
1,271
6,504

3,331

(205,990)

45,295(6,504)(25,963)(38,600)(231,763)(456)(309,713)(541,934)(205,990)

45,295(6,504)(25,963)(38,600)(231,763)(456)(309,713)(627,208)¥ 1,186,401¥ (22,282)¥ 137,772¥ (111,057)¥ 254,936¥ 1,445,770

707 ¥ 444,525¥ 9,194,038¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

152

Consolidated Statement of Changes in Net Assets

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2020

Balance as of the beginningof the period

CommonStockCapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity$ 20,736,631 $ 10,460,807 $ 35,978,329$ (70,789) $ 67,104,978(1,749,571)(1,749,571)

4,121,738

4,121,738

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(5,748)(17,536)(17,536)

29,38023,632

10,267

10,267(18,084)―(18,084)

5,621(5,621)(18,211)2,376,813$ 20,736,631 $ 10,442,596 $ 38,355,142―

11,8442,370,446$ (58,945) $ 69,475,424

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

153

Consolidated Statement of Changes in Net Assets

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Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2020

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges$ 10,901,424$ (204,747)

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments$ 1,265,944 $ (1,020,471)

Remeasurements of

Total
Stock
Accumulated Acquisition
DefinedOther
RightsBenefit Comprehensive
Plans
Income$ 2,342,521 $ 13,284,671

NonControlling
Interests

Total
Net Assets$ 6,497 $ 4,084,586 $ 84,480,732

Changes during the period
Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Transfer from Retained
Earnings to Capital Surplus
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(1,749,571)
4,121,738(17,536)
23,632
10,267(18,084)―(3,338,388)

867,083(10,267)(203,261)(1,475,874)(4,160,707)(4,532)(3,076,934)(7,242,173)(3,338,388)

867,083(10,267)(203,261)(1,475,874)(4,160,707)(4,532)(3,076,934)(4,871,727)$ 7,563,036$ 662,336$ 1,255,677 $ (1,223,732)$

866,647 $ 9,123,964$ 1,965 $ 1,007,652 $ 79,609,005

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

154

Consolidated Statement of Changes in Net Assets

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Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flows
Millions of yen
2020

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on Salesof Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Variable Compensation
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Losses (Gains) on Cancellation of Employee Retirement Benefit
Trust
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes

155

Consolidated Statement of Cash Flows¥¥

618,717
152,666
15,224
4,062(30,382)
139,940¥

2019

116,259
168,200
503,6124,080(51,215)(26,910)

Thousands of
U.S. dollars (Note 1)
2020$

5,685,173
1,402,798
139,892
37,324(279,173)
1,285,861

6
1,793
8,611
(307)
(91,950)
2,590

(444)
183
591
(375)
(57,863)2,497

60
16,475
79,127(2,825)(844,902)
23,804

(439)

(41)

(4,034)

8,782

(942)

80,698(6,893)(5,194)(63,339)(2,014,440)
1,280,897(231,382)(121)
103,125
3,898(2,056,327)
1,293,846(195,755)(40)(170,422)
1,976(18,509,970)
11,769,706(2,126,093)(1,120)947,585
35,824―(7,841)―(1,435,994)
1,488,005(638,977)(1,536,520)
227,455
485,333(13,194,837)
13,672,752(5,871,334)

475,833(355,068)

4,372,263(5,967,287)
8,099,383(2,407,594)
2,806,760(54,831,272)
74,422,347

2,165,756(1,800,307)

19,900,367(365,564)(5,758,002)

611,070(4,807,554)(3,359,037)(52,908,229)

334,971

1,772,393

3,077,938

3,128,355(511,609)

1,748,141
199,104

28,745,339(4,700,996)(376,328)(82,249)(3,457,948)(106,795)(159,598)
18,119308,937(34,376)
223,848(6,646)286,158(981,302)(1,466,497)
166,490$ 2,838,716¥

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Consolidated Statement of Cash Flows—(Continued)
Millions of yen
2020

For the Fiscal Years ended March 31,

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net
Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Proceeds from Sales of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities
Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Issuance of Common Stock
Proceeds from Investments by Non-controlling Shareholders
Repayments to Non-controlling Shareholders
Cash Dividends Paid
Cash Dividends Paid to Non-controlling Shareholders
Payments for Purchase of Stocks of Subsidiaries (not affecting
the scope of consolidation)
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Paymenys for Repurchase of Treasury Stock of Subsidiaries
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the fiscal year
Decrease in Cash and Cash Equivalents resulting from
Exclusion of Subsidiaries from Consolidation
Cash and Cash Equivalents at the end of the fiscal year
(Note 39)¥2019

(10,232)
2,027,241(1,250,247)(75,059)(2,460,479)(175,617)(2,636,096)$(72,474,752)
48,136,966
18,815,661(78,650)
18,523(85,840)(151,011)
6,353
3,144

(52,363,143)
38,799,373
19,211,836(109,630)
94,984(42,703)(111,595)
7,811―(665,944,613)
442,313,388
172,890,397(722,689)
170,207(788,755)(1,387,587)
58,37828,8891,067(5,808,537)

219
5,487,153

9,812(53,372,573)

15,000(30,000)
483,000(213,000)―
2,883(303,000)(190,386)(9,568)10,000(45,000)
510,000(5,000)2
3,514(275,079)(190,413)(25,494)

137,830(275,659)
4,438,114(1,957,181)―
26,492(2,784,159)(1,749,391)(87,922)(4,653)―(42,760)(1,441)
1,516(32,199)(281,849)(2,124)
952―(18,640)(13,243)
13,936(295,870)(2,589,813)(202,776)(4,391,269)(32,656)
2,799,759(1,863,238)(40,349,806)

44,254,874

46,334,334

406,642,238(0)(4,879,218)(7)¥ 39,863,604¥ 44,254,874$ 366,292,425¥(46,563)2,047,339(1,315,446)
650,590
1,999,524(97,631)
1,901,893

Thousands of
U.S. dollars (Note 1)
2020(427,853)
18,812,268(12,087,167)
5,978,039
18,372,918(897,100)
17,475,818

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

156

Consolidated Statement of Cash Flows

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company
Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2020 and 2019 were
126 and 117, respectively.
During the period, Mizuho Markets Americas LLC and 19 other companies were newly included in the scope of
consolidation as a result of establishment.
During the period, Mizuho Delivery Service Co., Ltd. and 10 other companies were excluded from the scope of
consolidation as a result of merger and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2020 and 2019.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2020 and 2019.
(b) The numbers of affiliates under the equity method as of March 31, 2020 and 2019 were 26 and 22, respectively.
Investments in affiliates include JTC Holdings, Ltd., Orient Corporation, Mizuho Leasing Company, Limited and certain
other affiliates.
During the period, LINE Credit Corporation and 4 other companies were newly included in the scope of the equity
method as a result of increasing the shares and other factors.
During the period, Qubitous Co., Ltd. was excluded from the scope of the equity method as a result of decreasing theshares.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2020 and 2019.
(d) Pec International Leasing Co., Ltd. ,an affiliate not under the equity method, is not accounted for under the equity
method, as it is not significant to the consolidated financial statements of MHFG.

157

Basis for Presentation、Scope of Consolidation、Application of the Equity Method

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4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2020 are as follows:
July 31
1 company
December 31
43 companies
March 3182 companies
From the fiscal year ended March 31, 2020, Mizuho Capital Markets LLC has changed its balance sheet date from
December 31 to March 31. Accounting period in the current fiscal year has been 15 months from January 1, 2019 toMarch 31, 2020.
(b) The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

5. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses
Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including thegains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.

158

Balance Sheet Dates of Consolidated Subsidiaries、Standards of Accounting Method

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted market
price over the month preceding the consolidated balance sheet date. The fair value of securities other than Japanesestocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance
sheet date (cost of securities sold is calculated primarily by the moving average method). Other securities, the fairvalues of which are extremely difficult to determine, are stated at acquisition cost or amortized cost which isdetermined by the moving average method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult todetermine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥41,655 million ($382,759 thousand) and ¥4,736 million for the fiscal years ended March
31, 2020 and 2019, 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 pricemaintains a certain level or lower(4) Bills Discounted
In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these commercial bills, foreign exchange bills purchased and others. The face value of these bills amounted
to ¥1,341,367 million ($12,325,349 thousand) and ¥1,487,045 million as of March 31, 2020 and 2019, respectively.

(5) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method of hedge
accounting (see (22) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others 2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

159

Standards of Accounting Method

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Bond issuance costs are expensed as incurred.

(10) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described
below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable underguarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 12 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its present
value of future cash flows discounted using the contractual interest rate before the loan was classified as a
Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves for the next one year or three years are maintained at rates derived
from historical credit loss experience or historical bankruptcy experience for one or three years and making necessary
adjustments such as future prospects and others.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of theassessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed
by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale ofcollateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are
written off against the respective claim balances. The total directly written-off amounts were ¥89,216 million ($819,782
thousand) and ¥92,269 million as of March 31, 2020 and 2019, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.
(Additional Information)
In light of the principles set forth in the report entitled “Japanese Financial Services Agency (“JFSA”)’s supervisory
approaches to lending business and loan loss provisioning” published by JFSA in December 18, 2019, we have reflected
the potential impact of the COVID-19 on Reserves for Possible Losses on Loans for some credit. More specifically, we
have identified certain industries and certain obligors that are expected to be significantly impacted by the COVID-19. For
these identified industries and obligors we have updated the estimated expected loss amount by incorporating certain
assumptions such as the future recovery periods and the forecasted GDP growth rate in Japan.

(11) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(13) Reserve for Variable Compensation
To prepare for the payments of performance payments and stock compensation to be paid as variable compensation
within compensation for directors, and executive officers of Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho
Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the estimated payment based on the standard amountregarding variable compensation of the fiscal year is provided.

(14) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of the
fiscal year, based on the internally established standards.

(15) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities atthe estimated amount of future claims for withdrawal by depositors.

(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,509
million ($23,063 thousand) and ¥2,473 million as of March 31, 2020 and 2019, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(20) Accounting Method for Retirement Benefits
In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized prior service cost and unrecognizedactuarial differences are recognized as follows:
Unrecognized prior service cost: Recognized mainly as income or expenses in the period of occurrence.
Unrecognized actuarial difference: Recognized as income or expenses from the following fiscal year under thestraight-line method over a certain term within the average remaining service
period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

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2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(21) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

(22) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by themethod stipulated in the JICPA Industry Audit Committee Report No.24, February 13, 2002.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries apply the deferred
method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities
denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25,
July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency
position of the hedged monetary claims and liabilities is equal to or larger than that of currency swap transactions,exchange swap transactions, and similar transactions designated as the hedging instruments of the foreignexchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

(23) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(24) Amortization Method of Goodwill and Amortization Period
Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The full amountof Goodwill that has no material impact is expensed as incurred.

(25) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows
In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Changes in Accounting Policies(Application of “Leases” (IFRS 16 and ASU 2016-02))
MHFG has applied “Leases” (IFRS 16 and ASU 2016-02) at some consolidated subsidiaries from the consolidated fiscal year
ended March 31, 2020. Accordingly, lessees recognize assets and liabilities for all leases as a general rule.
In accordance with transitional treatment, MHFG has recognized the impact of adoption of this accounting standard
cumulatively as of the date of adoption for balances at the beginning of the consolidated fiscal year ended March 31, 2020.
The impact on the consolidated financial statements for the consolidated fiscal year ended March 31, 2020 is immaterial.
(Changes in Hedge Accounting)
Previously, deferred method or the fair-value hedge method have been applied as hedge accounting methods.
From the consolidated fiscal year ended March 31, 2020, hedge accounting methods of some items were changed from fairvalue method to deferred method.
Based on current market trends, MHFG reconsidered its risk management activities from the consolidated fiscal year ended
March 31, 2020, in order to provide more transparent disclosure in the financial statements.
This change has no impact on the gains and losses.

7. Issued but not yet Adopted Accounting Standard and Others
1. Accounting Standard for Revenue Recognition and Others
・Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan ("ASBJ") Statement No.29, March 31,
2020)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No.30, March 31, 2020)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No.19, March 31, 2020)(1) Overview
International Accounting Standards Board ("IASB") and Financial Accounting Standards Board ("FASB") jointly establishedthe comprehensive accounting standard for revenue recognition and issued "Revenue from contracts with customers"(International Financial Reporting Standards ("IFRS") 15 / FASB Topic 606). Considering the application of IFRS 15 from thefiscal year beginning on and after January 1, 2018 and Topic 606 from the fiscal year beginning after December 15, 2017,
ASBJ has established the comprehensive accounting standard for revenue recognition and issued the accounting standard
together with the implementation guidance.
As a basic policy in establishing the accounting standard for revenue recognition, ASBJ has initiated deliberation on theaccounting standard, incorporating the basic principles of IFRS 15 from the standpoint of maintaining comparability between
financial statements that is one of benefits of ensuring consistency with IFRS 15. If there were items that should giveconsideration to practical businesses conducted in Japan, the alternative treatment shall be provided as long as
comparability is not harmed.
(2) Scheduled Date of Application
MHFG is scheduled to apply this accounting standard from the beginning of the consolidated fiscal year starting on April 1,
2021.
(3) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under assessment.

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2. Accounting Standard for Fair Value Measurement and Others
・Accounting Standard for Fair Value Measurement (ASBJ Statement No.30 July 4, 2019)
・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No.31, July 4, 2019)
・Accounting Standard for Financial Instruments (ASBJ Statement No.10, July 4, 2019)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No.19, March 31, 2020)(1) Overview
Considering the situation where IASB and FASB have provided almost the same detailed guidance on fair value
measurement (IFRS 13 "Fair Value Measurement" / US Accounting Standards Codification Topic 820 "Fair Value
Measurement"), ASBJ has implemented initiatives to ensure consistency between Japanese and international accounting
standards, mainly with regard to guidance and disclosure about fair value of financial instruments, and has issued"Accounting Standard for Fair Value Measurement" and others.
As a basic policy of ASBJ in establishing accounting standard for fair value measurement, it has been decided to basicallyadopt all of the provisions of IFRS 13 from the perspective of improving comparability between financial statements ofdomestic and foreign companies using a unified measurement method. If there were items that should give consideration topractical businesses conducted in Japan, the alternative treatment shall be provided as long as comparability is not harmed.
(2) Scheduled Date of Application
MHFG is scheduled to apply this accounting standard from the beginning of the consolidated fiscal year starting on April 1,
2020.
(3) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under assessment.
3. Accounting Standard for Disclosure of Accounting Estimates
・Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No.31, March 31, 2020)(1) Overview
In response to requests to consider requiring disclosure as footnote information under Japanese GAAP of "Sources of
Estimation Uncertainty" that is required to be disclosed by Paragraph 125 of International Accounting Standards 1"Presentation of Financial Statements" ("IAS 1") issued by IASB in 2003 as such information is considered highly useful tofinancial statements users, ASBJ has established and issued accounting standards for disclosure of accounting estimates.
As a basic policy of ASBJ in establishing this accounting standard, it has been decided not to expand requirements forindividual notes but to provide principles (disclosure purposes), and a company determines the contents of disclosure in lightof the disclosure purposes. In establishing this accounting standard, it has been decided that the provisions of IAS 1,
Paragraph 125 are referred to.
(2) Scheduled Date of Application
MHFG is scheduled to apply this accounting standard from the end of the consolidated fiscal year starting on April 1, 2020.

8. Additional Information(The Board Benefit Trust (“BBT”) Program)Since MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate
value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under
the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a stock compensation program using a trust (the“Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort inperforming his or her duties, and also as consideration for such exertion of effort.
(1) Outline of the Program
The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired
through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to
Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., andMizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed inadvance. The framework consists of the stock compensation program based on the Company Group Officer’s position in theirrespective company (“Stock Compensation I”) and the stock compensation program based on the performance evaluation of
the Company Group (“Stock Compensation II”).
Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their position.
A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or
the individual.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Stock Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated
based on the status of achieving our Five-Year Business Plan. A system is adopted which enables a decrease or forfeiture of
the amount depending on the performance of the company or the individual.
Upon the payment of stock compensation under the Program, MHFG may, for a certain portion, pay a monetary amountequivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of
Shares.
Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.
(2) MHFG’s Shares Outstanding in the Trust
MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount(excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of March 31, 2020was ¥3,485 million ($32,026 thousand) for 19,636 thousand shares. (The carrying amount of such Treasury Stock as ofMarch 31, 2019 was ¥3,569 million for 18,917 thousand shares.)(Application of tax-effect accounting to the Transition from the Consolidated Taxation System to the Group
Aggregation System)
Some domestic consolidated subsidiaries of the Group record amounts of deferred tax assets and deferred tax liabilities basedon the provisions of tax laws prior to amendment under the treatment in Paragraph 3 of "Treatment of the application of the taxeffect accounting in relation to the transition from the consolidated tax system to the aggregate group system" (Practical
Solutions No.39 March 31, 2020), without applying the provisions of Paragraph 44 of "Guidance on Accounting Standard for taxeffect accounting" (Implementation Guidance No.28 February 16, 2018), regarding the tax items for which review of the nonconsolidated Tax Payment System was implemented in accordance with the transition to the aggregated group systemestablished under the "Act for Partial Revision of the Income Tax Act, etc." (Act No. 8 of 2020) and the transition to theaggregated group system.

9. Securities Lending and Borrowing Transactions
Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥80,056 million($735,606 thousand) and ¥ - million as of March 31, 2020 and 2019, respectively, and are included in Japanese
Government Bonds under Securities. MHFG has the right to sell or repledge some of unsecured borrowed securities,
securities purchased under resale agreements and securities borrowed with cash collateral. Among them, the totals of
securities repledged were ¥19,960,803 million ($183,412,696 thousand) and ¥12,595,142 million as of March 31, 2020
and 2019, respectively, and securities neither repledged nor re-loaned were ¥1,998,251 million ($18,361,221 thousand)and ¥3,952,221 million as of March 31, 2020 and 2019, respectively.

10. Trading Assets and Liabilities
As of March 31,

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥ 5,377,182¥ 5,968,848$ 49,409,014

7,404,811
466,740¥ 13,248,734

5,907,081
167,677¥ 12,043,608

68,040,164
4,288,712$ 121,737,890¥ 2,213,074¥ 2,579,940$ 20,335,147

7,034,850
356,966¥ 9,604,890

5,587,502
158,078¥ 8,325,520

64,640,727
3,280,034$ 88,255,908

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11. Securities
Millions of yen
2020

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥13,081,871
272,5672,828,044
2,796,100
15,928,651¥34,907,234

2019

Thousands of U.S. dollars
2020¥ 13,016,033
209,891
2,681,005
3,563,271
10,304,286¥ 29,774,489$120,204,641
2,504,524
25,985,890
25,692,372
146,362,686$320,750,113*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥245,025 million ($2,251,449 thousand) and ¥252,044 million as ofMarch 31, 2020 and 2019, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥87,364 million ($802,763 thousand) and ¥82,120 million as of March 31, 2020

and 2019, respectively.

12. Loans and Bills Discounted
Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥ 70,211,197
9,182,140
3,548,262
325,228¥ 66,030,880
8,533,976
3,378,943
369,288$ 645,145,617
84,371,411
32,603,716
2,988,412

201,355¥ 83,468,185

143,846¥ 78,456,935

1,850,188$ 766,959,344

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Total

Loans and Bills Discounted as of March 31, 2020 and 2019 include the following:
Millions of yen
2020

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

¥

¥

15,938401,016
1,468
256,429674,853

¥

¥

2019

11,393379,225436
195,366
586,422

Thousands of U.S. dollars
2020

$

$

146,457
3,684,797
13,4972,356,239
6,200,990*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the

Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are

deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥90,835,753 million ($834,657,299
thousand) and ¥91,744,406 million as of March 31, 2020 and 2019, respectively. Of these amounts, ¥68,937,304 million($633,440,265 thousand) and ¥69,611,691 million as of March 31, 2020 and 2019, respectively, relate to contracts of which
the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

13. Foreign Exchange Assets and Liabilities
Millions of yen
2020

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

2019

Thousands of U.S. dollars
2020¥ 1,016,138
489,312538,316648¥ 2,044,415¥ 1,117,756
556,493318,788629¥ 1,993,668

9,336,937
4,496,116
4,946,400
5,955$ 18,785,408

¥

¥

$

¥

454,643
35,656
14,4184,686
509,405¥

597,118
20,73532,44919,275669,578

Millions of yen
2020

2019

$

$

4,177,560
327,635
132,487
43,0674,680,749

14. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

318,983
68,7694,818,368¥ 5,206,121

167

Loans and Bills Discounted、Foreign Exchange Assets and Liabilities、Other Assets¥

339,045
64,135
3,826,407¥ 4,229,589

Thousands of U.S. dollars
2020$

2,931,025
631,899
44,274,270$ 47,837,194

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15. Tangible Fixed Assets
Millions of yen
2020

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers¥610,305
287,038
13,29372,290120,694¥ 1,103,622¥
894,7922019¥

614,851
287,634
22,55736,30075,661¥ 1,037,006¥
902,999

33,155

Thousands of U.S. dollars
2020$

5,607,882
2,637,499
122,145664,249
1,109,017$ 10,140,792$ 8,221,925

33,720304,650

2019Thousands of U.S. dollars
2020¥ (239,035)¥ (136,022)$ (2,196,416)(185,410)(151,787)(1,703,669)―¥ (424,446)(5)¥ (287,815)―$ (3,900,085)

16. Reserves for Possible Losses on Loans
Millions of yen
2020

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

17. Assets Pledged as Collateral
The following assets were pledged as collateral:
Millions of yen
2020

As of March 31,

Trading Assets
Securities
Loans and Bills Discounted¥ 1,281,698
5,551,273
3,584,065

2019

Thousands of U.S. dollars
2020¥ 2,096,078
4,064,070
3,766,290$ 11,777,072
51,008,674
32,932,694

The following liabilities were collateralized by the above assets:

As of March 31,

Deposits
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money

Millions of yen
2020¥ 1,057,282

¥

2019

385,674

Thousands of U.S. dollars
2020$

9,714,992

5,479,619

3,435,148

50,350,262

778,766
4,073,507

1,361,504
1,802,520

7,155,804
37,430,009

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥65,745 million($604,113 thousand) and ¥55,277 million, Trading Assets of ¥124,676 million ($1,145,605 thousand) and ¥98,014 million,
Securities of ¥2,454,991 million ($22,558,040 thousand) and ¥3,378,504 million, and Loans and Bills Discounted of¥142,757 million ($1,311,744 thousand) and ¥138,672 million as of March 31, 2020 and 2019, respectively.
Other Assets included guarantee deposits of ¥113,053 million ($1,038,812 thousand) and ¥129,076 million, collateralpledged for derivatives transactions of ¥980,077 million ($9,005,578 thousand) and ¥725,618 million, margins for futurestransactions of ¥500,066 million ($4,594,932 thousand) and ¥159,747 million, and other guarantee deposits of ¥945,916
million ($8,691,689 thousand) and ¥862,921 million as of March 31, 2020 and 2019, respectively.

18. Deposits
Millions of yen
2020

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥ 12,863,193
71,429,036
976,230
38,805,967
13,282,561
7,115,245¥ 144,472,235

2019¥ 11,178,002
65,111,121
884,410
40,147,137
13,338,571
6,990,352¥ 137,649,596

Thousands of U.S. dollars
2020$

118,195,289
656,335,906
8,970,232
356,574,173
122,048,718
65,379,451$ 1,327,503,769*1 Ordinary Deposits includes savings deposits.

19. Call Money and Bills Sold
Millions of yen
2020

As of March 31,

Call Money
Bills Sold
Total

¥ 2,263,076―¥ 2,263,076

2019

Thousands of U.S. dollars
2020¥ 2,841,931―¥ 2,841,931$ 20,794,599―$ 20,794,599

20. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2020¥411,089

2019

Thousands of U.S. dollars
2020¥941,181$3,777,353

Average interest rates*1
2020
2019

1.74%

2.64%

*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.

21. Borrowed Money
As of March 31,

Borrowed Money
Bills Rediscounted
Other Borrowings*2,3Millions of yen
2020¥5,209,947―¥5,209,947

2019

Thousands of U.S. dollars
2020¥3,061,504―¥3,061,504$47,872,351―$47,872,351

Average interest rates*1
2020
2019

0.72%
―%
0.72%

1.28%
―%
1.28%

*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 ¥168,000 million ($1,543,692 thousand) and ¥183,000 million as of March 31, 2020 and 2019, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:

Fiscal year ending March 31, 2021
2022
2023
2024
2025

¥4,104,930 million¥172,051 million¥204,219 million¥68,123 million¥124,395 million($37,718,740 thousand)($1,580,922 thousand)($1,876,500 thousand)($625,962 thousand)($1,143,026 thousand)169

Assets Pledged as Collateral、Deposits、Call Money and Bills Sold、Commercial Paper、Borrowed Money

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22. Short-term Bonds
Major components of Short-term Bonds at March 31, 2020 were as follows:
Issuer

Issue

MHSC

Sep. 2019–Mar. 2020

*1Oct. 2019–Mar. 2020

Total

Millions of yen Thousands of U.S. dollars¥319,000[319,000]
54,658[54,658]¥373,658$2,931,177[2,931,177]
502,235[502,235]$3,433,412

Interest rates

0.00%–0.00%
0.06%–0.12%

Due

Apr. 2020–
Sep. 2020
Apr. 2020–
Jun. 2020*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds at March 31, 2019 were as follows:
Issuer

Issue

MHSC

Sep. 2018–Mar. 2019*1

Oct. 2018–Mar. 2019

Total

Millions of yen

Interest rates¥333,200[333,200]
22,339[22,339]¥355,539

0.00%
0.04%–0.12%

Due

Apr. 2019–
Oct. 2019
Apr. 2019–
May 2019*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiary, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.

170

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

23. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2020 were as follows:

IssuerDescription

Issue

MHFG

Straight Bonds

Jul. 2014–
Feb.2020

MHTB

Straight Bonds

Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Mar. 2020*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds

Sep. 2005*3

Straight Bonds

Jan. 2003–
Mar. 2020

Total

Millions of yen¥6,414,818[—](US$ 26,950,000 thousand)(EUR 4,500,000 thousand)(AUD 625,000 thousand)
10,000[10,000]
1,100,670[196,393](US$ 5,849,635 thousand)(AUD 905,000 thousand)(SGD 50,000 thousand)(HKD 1,540,000 thousand)(CNY 500,000 thousand)
326,182[—](US$ 2,997,174 thousand)
30,000[—]1,024,760[249,616](US$ 2,360,301 thousand)(AUD 72,340 thousand)(EUR 889,300 thousand)(BRL 1,007 thousand)(GBP 20,000 thousand)(MXN 9,000 thousand)(TRY 58,276 thousand)¥8,906,432

Thousands of U.S.
dollars

Interest
rates$58,943,476[—]

0.10%–
4.35%

Apr. 2021–

91,887[91,887]
10,113,672[1,804,587]

2.24%

Dec. 2020

0.22%–
5.30%

Apr. 2020–

2,997,174[—]

4.20%–
4.60%

Jul. 2022–
Mar. 2024

275,659[—]
9,416,159[2,293,633]

2.21%

Sep. 2025

0.00%–
51.60%

Apr. 2020–
Dec. 2059

Due$81,838,027*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance(Curaçao) N.V.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc, Mizuho Securities USA LLC, Mizuho Capital Markets LLC and Banco Mizuho do Brasil S.A.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2021 ¥456,009 million ($4,190,106 thousand)2022 ¥1,217,464 million ($11,186,849 thousand)2023 ¥936,038 million ($8,600,919 thousand)2024 ¥461,467 million ($4,240,264 thousand)2025 ¥1,041,730 million ($9,572,086 thousand)4. Bonds and Notes as of March 31, 2020 included subordinated bonds and notes of ¥3,594,804 million($33,031,379 thousand).
5. No collateral was provided for the above Bonds and Notes.

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Major components of Bonds and Notes as of March 31, 2019 were as follows:
IssuerDescription

Issue

MHFG

Straight Bonds

Jul. 2014–
Oct.2018

MHTB

Straight Bonds

Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Sep. 2018*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Sep. 2005–
May 2012
Jan. 2003–
Mar. 2019

Total

Millions of yen¥5,000,247[—](US$ 20,250,000 thousand)(EUR 2,000,000 thousand)(AUD 625,000 thousand)
10,000[—]1,968,205[790,842](US$ 9,581,244 thousand)(AUD 745,000 thousand)(SGD 190,000 thousand)(HKD 1,540,000 thousand)(CNY 500,000 thousand)
332,620[—](US$ 2,996,308 thousand)
41,000[—]998,998[219,536](US$ 2,694,224 thousand)(AUD 31,360 thousand)(EUR 725,400 thousand)(BRL 14,500 thousand)(GBP 20,000 thousand)(MXN 9,000 thousand)(TRY 59,076 thousand)¥8,351,071

Interest
rates

Due

0.10%–
4.35%

Apr. 2021–

2.24%

Dec. 2020

0.22%–
5.30%

Apr. 2019–4.20%–
4.60%

Jul. 2022–
Mar. 2024

1.30%–
2.21%
0.00%–
25.00%

May 2024–
Sep. 2025
Apr. 2019–
Mar. 2049*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) 2 Limited and Mizuho

Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance(Curaçao) N.V.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc and Mizuho Securities USA LLC.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2020 ¥1,010,378 million
2021 ¥354,732 million
2022 ¥1,139,615 million
2023 ¥896,522 million
2024 ¥261,906 million
4. Bonds and Notes as of March 31, 2019 included subordinated bonds and notes of ¥3,332,877 million.
5. No collateral was provided for the above Bonds and Notes.

172

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

24. Other Liabilities
Millions of yen
2020

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

¥

249,187
97,87368,556
72,702
5,622,875¥ 6,111,195

2019

Thousands of U.S. dollars
2020

282,576
105,598
58,68925,0194,040,440¥ 4,512,325$ 2,289,690
899,323
629,943
668,040
51,666,593$ 56,153,589¥. It is the weighted-average interest rate of debts*1 Average interest rate is 2.59% and 1.33% in the fiscal year ended March 31, 2020 and 2019, respectively

calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2021 ¥10,206 million ($93,788 thousand)
2022¥7,972 million ($73,255 thousand)2023¥6,205 million ($57,024 thousand)
2024¥4,013 million ($36,874 thousand)
2025¥3,092 million ($28,414 thousand)

25. Reserve for Employee Retirement Benefits(1) MHFG and its certain consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin
Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension Plans.
In addition, MHFG and certain consolidated subsidiaries have adopted Defined- Contribution Pension Plans other thanrisk-sharing corporate pension as a part of the Termination Allowance Plans while certain consolidated subsidiaries
have established employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Unrecognized Prior Service Cost incurred
Other
Balance of Retirement Benefit Obligations
at the end of the period

Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥1,462,237
44,797
4,013
3,352(74,766)
2,734(2,027)¥1,441,383
43,172
5,231
41,716(68,298)―(967)$13,435,982
411,629
36,87530,801(687,003)
25,126(18,630)¥1,440,341¥1,462,237$13,234,780

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.

173

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For the Fiscal Years ended March 31,

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Cancellation of Employee Retirement Benefit
Trust
Other
Balance of Plan Assets at the end of theperiodMillions of yen
2020

2019

Thousands of U.S. dollars
2020¥2,384,168
39,117(163,708)
18,207
1,199(52,314)¥2,378,667
37,08028,077
18,7801,228(52,066)$21,907,276
359,433(1,504,262)
167,300
11,026(480,701)―(27,534)―(1,659)(65)(15,249)¥2,225,010¥2,384,168$20,444,823(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheet
As of March 31,

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

As of March 31,

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥1,440,341(2,225,010)¥1,462,237(2,384,168)$13,234,781(20,444,823)¥(784,668)¥(921,930)$(7,210,042)

2019

Thousands of U.S. dollars
2020¥62,113(846,782)¥60,873(982,804)$570,743(7,780,785)¥(784,668)¥(921,930)$(7,210,042)

2019

Thousands of U.S. dollars
2020¥43,697
4,013(39,117)(60,477)
2,803
8,813

¥42,051
5,231(37,080)(30,036)69
3,055$401,519
36,875(359,432)(555,704)
25,76580,982¥(40,266)¥(16,709)$(369,995)―¥7,841―Millions of yen
2020(iv) Employee Retirement Benefit Expenses and the breakdown
For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Amortization of Unrecognized Prior Service Cost
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans
Gains on Cancellation of Employee
Retirement Benefit Trust

Millions of yen
2020

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
3. Gains on Cancellation of Employee Retirement Benefit Trust is included in Other Income.

174

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Change in Presentation of Financial Statements)
Other included within Amortization of Unrecognized Prior Service Cost for the previous consolidated fiscal year has been
separately presented from this consolidated fiscal year due to increased materiality. In order to reflect the change inpresentation of the financial statements, reclassification of the previous consolidated fiscal year has been madeaccordingly.
As a result, Other of ¥3,125 million presented in the consolidated statements for the previous consolidated fiscal year has
been reclassified as Amortization of Unrecognized Prior Service Cost of ¥69 million and Other of ¥3,055 million.
(v) Remeasurements of Defined Benefit Plans in Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Other Comprehensive Income (before deducting tax effect)
was as follows:
For the Fiscal Years ended March 31,

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2020¥227,368(69)¥227,299

2019

Thousands of U.S. dollars
2020¥51,915(69)¥51,846$2,089,212(639)$2,088,573(vi) Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income (before
deducting tax effect) was as follows:

As of March 31,

Unrecognized Actuarial Differences
Other
Total

Millions of yen
2020¥(138,808)
173¥(138,635)

2019

Thousands of U.S. dollars
2020¥(366,177)
243¥(365,934)$(1,275,465)
1,597$(1,273,868)(vii) Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31,

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

2020

2019

56.39%
14.77%
10.17%
10.44%
5.08%
3.15%
100.00%57.98%
13.48%
11.31%
9.20%
4.67%
3.36%
100.00%Note: The total amount of Plan Assets includes 56.59% and 58.59% of Employee Retirement Benefit Trust established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2020 and 2019,respectively.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets
In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan Assets
and current and expected future long-term rate of return from various assets constituting Plan Assets have been
considered.

175

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Major Basis of Actuarial Calculation
For the Fiscal Years ended March 31,

Discount Rate
Expected Long-term Rate of Return on Plan Assets

2020

2019

mainly (0.00)%- 0.62%
mainly 1.27%- 1.90%

mainly 0.00%- 0.70%
mainly 1.30%- 1.90%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its consolidated
subsidiaries was ¥3,140 million ($ 28,855 thousand) and ¥3,224 million for the fiscal years ended March 31, 2020 and
2019, respectively.

26. Acceptances and Guarantees(1) Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2,
Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31, 2007))
amounted to ¥1,548,136 million ($14,225,270 thousand) and ¥1,503,395 million as of March 31, 2020 and 2019,respectively.
(2) The principal amounts promised to be indemnified for money trusts which is entrusted to a domestic consolidated trust
banking subsidiary, was ¥883,781 million ($8,120,750 thousand) and ¥874,777 million as of March 31, 2020 and 2019,respectively.

176

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

27. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:

2019

Thousands of U.S. dollars
2020¥163,264
139,889¥167,755
120,564$1,500,175
1,285,398

139,748

96,544

1,284,103

200,851
181,041
191,484
1,016,280

193,875
205,171
205,732
989,643

1,845,549
1,663,526
1,759,484
9,338,235(144,829)(142,939)(1,330,785)(167,297)(143,619)(1,537,240)(312,127)¥704,152(286,559)¥703,083(2,868,025)$6,470,210¥(339,009)¥(450,796)$(3,115,033)(259,332)(126,468)¥(724,809)¥(20,656)(301,321)(98,979)¥(851,098)¥(148,014)(2,382,912)(1,162,074)$(6,660,019)$(189,809)

Millions of yen
2020

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Depreciation and Impairment
Other
Deferred Tax Assets Subtotal:
Valuation Allowance - Tax Losses
Carried Forward
Valuation Allowance - Deductible
Temporary Differences, etc.
Valuation Allowance Subtotal:
Total
Deferred Tax Liabilities:
Net Unrealized Gains on Other
Securities
Net Defined Benefit Asset
Other
Total
Net Deferred Tax Assets

Note1: MHFG and domestic subsidiaries are subject to a number of different income taxes.
Note2:Tax Losses Carried Forward and amounts according to expiration of carryforward of their Deferred Tax Assets:
As of March 31, 2020

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets

4-5 years Over 5 years

1-2 years

2-3 years

3-4 years

¥59
(47)
11

¥64
(64)
―

¥1,901
(19)
1,882

¥912
(21)
890

Within 1 year

1-2 years

2-3 years

3-4 years

¥151
(126)
24

¥62
(62)
―

¥69
(69)
―

¥3,447(21)
3,425

Within 1 year

1-2 years

2-3 years

3-4 years

Thousands of U.S. dollars
4-5 years Over 5 years
Total

$550
(440)
109

$591
(591)
―

$17,472(175)
17,297$8,384(200)
8,183$220 $1,472,958 $1,500,175(219) (1,329,160) (1,330,785)
2
143,798
169,389

¥23
(23)
0

¥160,302(144,652)
15,649¥163,264(144,829)
18,4344-5 years Over 5 years

Millions of yen
Total

As of March 31, 2019

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets
As of March 31, 2020

Tax Losses Carried Forward*
Valuation Allowance
Deferred Tax Assets*Tax Losses Carried Forward is the amount multiplied by the effective statutory tax rate.

177

Deferred Tax Assets and Liabilities

Millions of yen
Total

Within 1 year

¥846
(30)
816

¥163,177(142,628)
20,548¥167,755(142,939)
24,815

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) For the fiscal years ended March 31, 2020 and 2019, the reconciliation of the statutory tax rate of MHFG to the effective
income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Equity in Income from Investments in Affiliates
Other
Effective Income Tax Rate

2020

2019

30.62%

30.62%(0.15)(4.35)(1.24)(7.67)(1.52)(11.66)(1.50)(0.11)
26.10%(13.49)4.40(2.15)%(Change in Presentation of Financial Statements)
Change in undistributed earnings of subsidiaries and Change in unrecognized tax benefits which were separately
presented for the previous consolidated fiscal year have been included within Other for this consolidated fiscal year due todecreased materiality. In order to reflect the change in presentation of the financial statements, reclassification of theprevious consolidated fiscal year has been made accordingly.
As a result, Change in undistributed earnings of subsidiaries of (11.63)% and Change in unrecognized tax benefits of
8.10% presented in the consolidated statements for the previous consolidated fiscal year have been included within Otherof 4.40%.

28. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥47,148 million ($433,234 thousand) and ¥64,217 million as ofMarch 31, 2020 and 2019, respectively.

178

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

29. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2020 and 2019 were as follows:
Number of shares
As of March 31, 2020
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

48,000,000,000

25,392,498,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥―

With
Convertible Redemption
or notor notNo

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
3,622 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

179

Common Stock and Preferred StockNo2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Number of shares
As of March 31, 2019
Class of stock

Common Stock

Authorized*2

Issued andoutstanding*1

Interimcash
dividend

48,000,000,000

25,392,498,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥―

With
Convertible Redemption
or notor notNo

No

Notes: 1. Treasury Stock is included. The number is as follows:
Common Stock
6,520 thousand shares
2. Each total number of other shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

180

Common Stock and Preferred Stock2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

30. Stock Options
Outline of stock options and changes
For the fiscal year ended March 31, 2020
(1) Outline of stock options

As of March 31, 2020

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

181

Stock Options

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
12

71

6,808,000

August 26, 2010
The grantee may exercise theStock Acquisition Rights
which have been allottedbased on his or her capacity
as a Director or an Executive
Officer of MHFG, MHBK orMHCB immediately following
the date on which suchgrantee loses the status as a
Director or an Executive
Officer of MHFG, MHBK or
MHCB.
April 1, 2010
to March 31, 2011
August 27, 2010
to August 26, 2030

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
6
26

130

12,452,000

Fifth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
11
23

150

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of MHFG,MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2020

Number of grantees

Sixth Series of Stock
Acquisition Rights of MHFG

Directors

6

Executive
Officers

36

Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Common stock

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations

2
12
37

22

Directors of subsidiaries of
MHFG

32

134

Executive Officers ofsubsidiaries of MHFG

113

7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights
which have been allottedbased on his or her capacity
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

Common stock

9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer
as defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC immediately
following the date on which such grantee loses
the status as a Director, an Executive Officer as
defined in Companies Act or an Executive
Officer as defined in our internal regulations of
MHFG, MHBK, MHTB or MHSC.
April 1, 2014
to March 31, 2015
December 2, 2014
to December 1, 2034

*1: Shown in number of shares

182

Stock Options

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Size of stock options and changes(i) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2020

Non-vested
As of March 31, 2019
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2019
VestedExercised
Forfeited
Outstanding

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

52,000──52,000─

271,000──
169,000
102,000

847,000──
624,000
223,000

891,000──
681,000
210,000

2,184,000
──
1,442,000
742,000

─
52,00052,000───
169,000
169,000───
624,000
624,000───
681,000
681,000───
1,442,000
1,442,000──

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share¥172.50¥172.50¥172.50¥172.50¥171.58¥119.52
per share¥91.84per share¥113.25
per share¥192.61
per share¥186.99
per share

Note: The above table is shown in number of shares.
(ii) Price information

As of March 31, 2020

Exercise price
Average stock priceupon exercise
Fair value at grant date183

Stock Options

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(3) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.
For the fiscal year ended March 31, 2019(1) Outline of stock options

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,409,000

Second Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
14

71

5,835,000

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

4
4
12

71

6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
April 1, 2009
April 1, 2010
July 1, 2008
to March 31, 2010
to March 31, 2011
to March 31, 2009
August 27, 2010
February 17, 2009
September 28, 2009
to August 26, 2030
to February 16, 2029
to September 25, 2029

184

Stock Options

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2019

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period*1: Shown in number of shares

185

Stock Options

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
6
26

130
12,452,000

Fifth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6
11
23

150

Common stock

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

2
12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK, MHTB
or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

6
36
22

134
7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC.
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Size of stock options and changes(i) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2019

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Non-vested
As of March 31, 2018
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2018
VestedExercised
Forfeited
Outstanding

124,000──
124,000─

220,000──
220,000─

331,000──
279,000
52,000612,000──
341,000
271,000

1,474,000
──
627,000
847,000─
124,000
124,000───
220,000
220,000───
279,000
279,000───
341,000
341,000───
627,000
627,000──For the Fiscal Year ended
March 31, 2019

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

1,305,000
──
414,000
891,000

3,150,000
──
966,000
2,184,000

─
414,000
414,000───
966,000
966,000──

Non-vested
As of March 31, 2018
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2018
VestedExercised
Forfeited
Outstanding

Note: The above table is shown in number of shares.
(ii) Price information

As of March 31, 2019

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2019

Exercise price
Average stock priceupon exercise
Fair value at grant date

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share¥196.20¥196.20¥196.20¥196.20¥196.20¥190.91
per share¥168.69
per share¥119.52
per share¥91.84per share¥113.25
per share

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥196.20¥195.21¥192.61
per share¥186.99
per share

186

Stock Options

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.

31. Interest Income and Interest Expenses
For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses
Total
Net

Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥1,242,279
266,861
5,356
105,257¥1,253,970
302,768
5,510
123,545$11,414,865
2,452,098
49,223
967,171

251,830

229,637

2,313,980

18,779124,074¥2,014,440

25,081
115,813¥2,056,327

172,560
1,140,073$18,509,970¥607,219
8,686¥610,345
11,030$5,579,527
79,817351,012374,524

3,225,329

7,041
15,48433,949257,503¥1,280,897¥733,542

7,292
19,30435,522
235,826¥1,293,846¥762,480

64,703
142,277
311,948
2,366,105$11,769,706$6,740,264

2019

Thousands of U.S. dollars
2020¥221,563¥230,874$2,035,871

184,975¥406,539

68,481¥299,355

1,699,672$3,735,543

15,239¥15,239¥391,299

1,987¥1,987¥297,367

140,029$140,029$3,595,514

32. Trading Income and Trading Expenses
For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities
Total
Net

Millions of yen
2020

187

Stock Options、Interest Income and Interest Expenses、Trading Income and Trading Expenses

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

33. Other Operating Income
Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥29,538
224,830¥94,92172,682$271,421
2,065,885

23,969133,776¥412,114

11,214
133,996¥312,815

220,244
1,229,227$3,786,777

2019

Thousands of U.S. dollars
2020¥175,074
1,259
49,175¥225,509$949,377
20,086432,237$1,401,700

2019

Thousands of U.S. dollars
2020¥226,005
11,901¥351,049
10,395$2,076,682
109,363

2,239

3,438

20,582

―

7,841

―

―

4,357

―

78,291¥318,438

70,216¥447,300

719,392$2,926,019

2019

Thousands of U.S. dollars
2020¥161,005¥―$1,479,422

72,25841,69145,847
5,795

663,954
383,090

15,224

503,612

139,892

6,138

5,414

56,406―87,223¥383,542

24,542
127,714¥712,927―
801,469$3,524,233

For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Gains on Derivatives other thanfor Trading or Hedging
Other
Total

34. Other Operating Expenses
Millions of yen
2020

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Losses on Devaluation of Bonds
Other
Total

¥103,320
2,185
47,040¥152,547

35. Other Income
Millions of yen
2020

For the Fiscal Years ended March 31,

Gains on Sales of Stock
Recovery on Written-off Loans
Gains on Disposition of Fixed
AssetsGains on Cancellation of
Employee Retirement
Benefit TrustReversal of Reserves for
Possible Losses on Loans
Other
Total

36. Other Expenses
Millions of yen
2020

For the Fiscal Years ended March 31,

Provision for Reserves for Possible
Losses on Loans
Losses on Sales of Stocks
Impairment Losses of Stocks
Losses on Impairment of Fixed
Assets
Losses on Disposition of Fixed
AssetsStock-related derivatives expenses
Other
Total

188

Other Operating Income、Other Operating Expenses、Other Income、Other Expenses

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

37. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
Millions of yen
For the Fiscal Years ended March 31,

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive Income

189

Comprehensive Income

2020

Thousands of U.S. dollars
2019

2020

¥(218,565)(255,014)(473,580)
113,800(359,779)¥(44,354)(229,208)(273,563)
66,057(207,505)$(2,008,323)(2,343,237)(4,351,560)
1,045,673(3,305,887)

116,234
20,025
136,260(41,723)
94,53659,3006,032
65,333(19,942)
45,391

1,068,042
184,0031,252,045(383,381)
868,664(20,650)—(20,650)—(20,650)(23,882)—(23,882)—(23,882)(189,746)—(189,746)—(189,746)(166,891)(60,407)(227,299)
69,605(157,693)(13,638)(38,208)(51,846)
16,268(35,577)(1,533,508)(555,065)(2,088,573)
639,581(1,448,992)(5,961)¥(449,547)(7,730)¥(229,304)(54,774)$(4,130,735)

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38. Changes in Net Assets
For the fiscal year ended March 31, 2020(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2020
Remarks

As ofApril 1, 2019

Increase during
the fiscal year

Decrease during
the fiscal year

25,392,498
25,392,498

—
—

—
—

25,392,498
25,392,498

33,96233,962

12,14912,14914,00414,004

32,10632,106*1*1 Increases are due to acquisition of treasury stock by BBT trust account (9,030 thousand shares) and repurchase of shares constituting less than one unit andother factors (3,119 thousand shares). Decreases are due to distribution and sale of treasury stock through BBT trust account (8,311 thousand shares),exercise of stock acquisition rights (stock options) (2,968 thousand shares), and repurchase of shares constituting less than one unit and other factors(2,725 thousand shares). The number of shares as of March 31, 2020 includes the number of treasury stock held by BBT trust account (19,636 thousand
shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)
Balance asof March
31, 2020(Thousandsof
U.S.dollars)

As ofApril 1,
2019

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2020

Balance as ofMarch 31,
2020
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

$—
(—)

—

213

1,965

—

—
(—)

—
(—)

—

¥213
(—)

$1,965(—)

Remarks

MHFG

Total

—

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2020

Resolution

May 15,2019(

The Board of
Directors

Type)

November 14,
2019(

The Board of
Directors

)

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)Common Stock¥95,197$874,735

¥3.75

$0.03

Common Stock¥95,208$874,836

¥3.75

$0.03

¥190,405$1,749,571

/

/

Total

RecordDate

Effective
Date

March 31,2019

June 4,2019

September 30, December 6,
2019
2019

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2019 include ¥73 millionof cash dividends on treasury stock held by BBT trust account.
Cash dividends with record dates falling in the fiscal year ended March 31, 2020 and effective dates coming after the end of
the fiscal year

Resolution

May 15,
2020(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)¥95,208$874,835¥95,208$874,835

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)

Retained
Earnings

¥3.75

$0.03

/

/

Record Effective
Date
Date

March 31, June 8,
2020
2020

(Note) Cash dividends based on the resolution of the Board of Directors held on May 15, 2020 include ¥73 million of cash
dividends on treasury stock held by BBT trust account.

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For the fiscal year ended March 31, 2019(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Total
Treasury stock
Common stock
Total

Thousands of Shares
As ofMarch 31, 2019
Remarks

As ofApril 1, 2018

Increase during
the fiscal year

Decrease during
the fiscal year

25,389,644
25,389,644

2,854
2,854

—
—

25,392,498
25,392,498*1

24,82924,82915,78815,788

6,656
6,656

33,96233,962*2*1 Increases are due to exercise of stock acquisition rights (stock options) (2,854 thousand shares).
*2 Increases are due to acquisition of treasury stock by BBT trust account (10,676 thousand shares) and repurchase of shares constituting less than one unit

and other factors (5,112 thousand shares). Decreases are due to distribution and sale of treasury stock through BBT trust account (5,078 thousand shares),exercise of stock acquisition rights (stock options) (117 thousand shares), and repurchase of shares constituting less than one unit and other factors (1,460
thousand shares). The number of shares as of March 31, 2019 includes the number of treasury stock held by BBT trust account (18,917 thousand shares).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2018

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2019

Balance as ofMarch 31,2019
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

Remarks

MHFG

Total

—

—

707

—

—
(—)

—

¥707
(—)

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2019

Resolution

May 15,2018(

The Board of
Directors(

Cash
Dividends
per Share(Yen)

Common Stock¥95,186¥3.75

Common Stock¥95,197¥3.75¥190,384

/

Type

)

November 14,
2018
The Board of
Directors

Cash
Dividends(Millions of
yen)

)

Total

RecordDate

Effective
Date

March 31,2018

June 4,2018

September 30, December 6,
2018
2018

(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2018 include ¥49 million of
cash dividends on treasury stock held by BBT trust account.
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2018 include ¥71 millionof cash dividends on treasury stock held by BBT trust account.
Cash dividends with record dates falling in the fiscal year ended March 31, 2019 and effective dates coming after the end of
the fiscal year

Resolution

May 15,2019(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Dividends(Millions ofyen)¥95,197¥95,197

Cash
Resource Dividendsof per ShareDividends(Yen)

Retained
Earnings¥3.75

Record Effective
Date
Date

March 31, June 4,
2019
2019

/

(Note) Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of cash
dividends on treasury stock held by BBT trust account.

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39. Cash Flows
1. Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding duefrom Central Banks
Cash and Cash Equivalents

Millions of yen
2020

2019

Thousands of U.S. dollars
2020¥41,069,745¥45,108,602$377,375,225(1,206,141)¥39,863,604(853,728)¥44,254,874(11,082,799)$366,292,426

2. Significant non-fund transactions:
For the fiscal year ended March 31, 2019.
Trust & Custody Services Bank, Ltd. (“TCSB”), a consolidated subsidiary of MHFG, implemented joint share transfer withJapan Trustee Services Bank, Ltd. (“JTSB”) and incorporated “JTC Holdings, Ltd.” (“JTCHD”), a holding company whose
shareholders are TCSB’s and JTSB’s existing shareholders. As a result, TCSB and JTSB became wholly-owned
subsidiaries of JTCHD. During the fiscal year ended March 31, 2019, TCSB was excluded from the scope of consolidation
as a result of the aforementioned joint share transfer. Amount and breakdown of Assets and Liabilities decreased as aresult of the exclusion from the scope of consolidation are as follows:
As of March 31,

a. Assets

Total Assets
Cash and Due from Banksb. Liabilities Total Liabilities
Due to Trust Accounts

Millions of yen
2020

¥―
―
¥―
―

2019

Thousands of U.S. dollars
2020¥9,081,132
5,044,091¥9,022,063
3,620,825

$―
―
$―
―

40. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are
summarized as follows:
Lessees:
As of March 31,

Due in One Year or Less
Due after One Year
Total

Millions of yen
2020¥51,062
241,446¥292,508

2019

Thousands of U.S. dollars
2020¥51,329
175,386¥226,715$469,192
2,218,562$2,687,754

2019

Thousands of U.S. dollars
2020¥1,216
7,798¥9,015$7,26063,102$70,362

Lessors:
As of March 31,

Due in One Year or Less
Due after One Year
Total

Millions of yen
2020

¥790
6,867
¥7,657

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

41. Financial Instruments

1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments
Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans,stocks and bonds on the investment side, and also engages in trading business for certain financial products. Some
majority-owned consolidated subsidiaries and other subsidiaries conduct securities business and other financial
business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products
The main financial assets of the Mizuho group consist of loans to customers, government bonds and stocks. These
financial assets are subject to various types of risk that may cause the Group to incur losses due to a decline in, or total
loss of, the value of assets, as a result of deterioration in a counterparty’s and/or an issuer’s financial position (“creditrisk”), or due to a decline in the value of assets caused by fluctuations in interest rates, stock prices and foreignexchange rates and so on (“market risk”). The Group may also be exposed to the risk of incurring losses when it
becomes impossible to execute transactions in the market because of market confusion or losses arising fromtransactions at prices that are significantly less favorable than usual (“market liquidity risk “).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho Group uses derivative financial products for trading purposes and so on as well.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our Board of Directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.
More specifically, we allocate risk capital to core group companies, including their respective subsidiaries, tocontrol risk within the limits set for each company. We also control risk within managerially acceptable limits by

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working to ensure that the overall risk we hold on a consolidated basis does not exceed the Group’s financial
strength. To ensure the ongoing financial health of Mizuho Financial Group, we regularly monitor the manner inwhich risk capital is being used in order to obtain a proper grasp of the risk profile within this framework. Reports arealso submitted to the Board of Directors and other committees of each company.
(c) Credit Risk Management
The Board of Directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Risk Management Committee, as one of its Business Policy Committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Credit Risk Management Department and the Risk
Management Department jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”).Our
principal banking subsidiaries have established guidelines to manage “credit concentration risk,” which stems from
granting excessive credit to certain corporate groups.
The Board of Directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk management by establishing their respective basic policies in line with the basic
policies for credit risk management set forth by Mizuho Financial Group. Their respective Business Policy
Committees are responsible for discussing and coordinating overall management of their individual credit portfolios
and transaction policies towards obligors.
The Chief Risk Officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. Departments in charge of credit risk management are
responsible for planning and administering credit risk management and conducting credit risk measuring andmonitoring. Credit Departments determine policies and approves/disapproves individual transactions regarding
review and management of and collection from customers in accordance with the lines of authority set forth by eachprincipal banking subsidiary. In addition, each of our principal banking subsidiaries has also established internal audit
groups that are independent of the business departments in order to ensure appropriate credit risk management.
(d) Market Risk Management
The Board of Directors of Mizuho Financial Group determines basic matters pertaining to market risk management
policies. In addition, we have established the Risk Management Committee, as one of its Business Policy
Committees. The committee broadly discusses and coordinates matters concerning basic policy and operations inconnection with market risk management and market risk monitoring, and proposes measures to be taken in
emergencies such as sudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Department of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the department assesses and manages the overall market risk of
the Mizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries andother core group companies. The department also submits reports to the President & CEO on a daily basis and to
our Board of Directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
The Board of Directors of each of our principal banking subsidiaries and other core group companies determine
key matters pertaining to market risk by establishing their respective basic policies in line with the basic policies formarket risk management set forth by Mizuho Financial Group. Based on a common Mizuho Group risk capital
allocation framework, the above-mentioned companies manage market risk by setting limits according to the risk
capital allocated to market risk by Mizuho Financial Group. They have the same market risk management structure
as the Mizuho Financial Group, such as their Business Policy Committees being responsible for overall discussion
and coordination of the market risk management.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Banking Business
The following table shows the VAR figures relating to our banking activities for the fiscal years indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2020

2019

2020

¥361.4
361.4
167.9
215.7

¥194.4
298.5
194.4
255.5

$3,320,879
3,320,879
1,543,480
1,982,448[Definition of Banking Business]
The following transactions are categorized as banking business, with trading business and cross-shareholdings
being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding cross-shareholdings), bonds, investment trusts, etc. and hedges against related market
risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• VAR : historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of three years.

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ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen

Thousands of U.S. dollars

For the Fiscal Years ended March 31,

2020

2019

2020

As of fiscal year end
Maximum
Minimum
Average

¥8.3
11.8
2.3
3.8

¥2.6
9.2
2.4
3.4

$76,349
108,900
21,68235,103[Definition of Trading Business](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• VAR: historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of three years.
iii. Cross-shareholdings
For cross-shareholdings, we take the same market risk management approach as that for Banking and Tradingbusinesses with the use of VAR and risk indices.
The risk index for the cross-shareholdings (sensitivity of the portfolio to a 1% change in the equity index of
TOPIX) is ¥13.9 billion ($127,360 thousand) and ¥28.0 billion for the fiscal years ended March 31, 2020 and 2019,respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level neither takes account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The historical simulation method used as the measurement technique of VAR assumes that change in a market
movement follows an empirical distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. We check the validity of themarket risk measurement made by VAR approach periodically by the back-test which compares VAR with actual
profit and loss. In addition to VAR, we make a wide variety of management and controls such as risk indicesmonitoring, implementation of stress tests, loss limit monitoring in order to make strict risk management by
capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Department is responsible for monitoring and adjusting

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

the cash flow management situation and for planning and implementing cash flow management. Reports on the
cash flow situation are submitted to the Risk Management Committee, the Balance Sheet Management Committee,
the executive management committee and the President & CEO.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the Risk Management Committee, discussed further by the
executive management committee and determined by the President & CEO. We have established classifications forthe cash flow conditions affecting the Group, ranging from “normal” to “anxious” and “crisis,” and have establishedprocedures for dealing with cases which are deemed to fall into the “anxious” or “crisis” categories. In addition, we
have constructed a system under which we will be able to respond smoothly in the event of emergency situations
that affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others
Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

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2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31,
2020 and 2019. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).
Millions of yen
As of March 31, 2020

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥41,068,809
583,747
18,581,488¥41,068,809
583,747
18,581,488¥―――

2,243,161
2,688,031

2,243,161
2,688,141―
109

5,377,182
409,524

5,377,182
409,524――

860,233
33,118,544
83,468,185(386,686)
83,081,498¥188,012,223¥131,189,673
13,282,561
2,263,076
17,971,098

875,329
33,118,544

15,096―

84,254,484¥189,200,415¥131,196,960
13,281,929
2,263,076
17,971,098

1,172,985¥1,188,191¥7,287(632)――

1,108,255

1,108,255―

2,213,074
5,209,947
8,906,432
1,055,510¥183,199,631

2,213,074
5,148,053
8,847,784
1,055,510¥183,085,743―(61,894)(58,647)―¥(113,887)¥725,356¥―¥367,402
357,953¥725,356*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
As of March 31, 2019(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥45,106,880
647,711
12,997,628¥45,106,880
647,711
12,997,628¥―――

2,578,133
2,828,702

2,578,133
2,828,704―
1

5,968,848
349,897

5,968,848
349,897――

1,602,209
27,532,818
78,456,935(249,276)
78,207,658¥177,820,489¥124,311,025
13,338,571
2,841,931
14,640,439

1,609,588
27,532,818

7,378
―

79,261,612¥178,881,824¥124,307,964
13,338,148
2,841,931
14,640,439

1,053,954¥1,061,334¥(3,060)(423)――

1,484,584

1,484,584―

2,579,940
3,061,504
8,351,071
1,102,073¥171,711,141

2,579,940
3,054,910
8,459,713
1,102,073¥171,809,706―(6,594)
108,642―¥98,565¥441,593¥―¥216,790
224,803¥441,593*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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Thousands of U.S. dollars
As of March 31, 2020

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference$377,366,626
5,363,851
170,738,661$377,366,626
5,363,851
170,738,661$―――

20,611,611
24,699,366

20,611,611
24,700,371

―
1,005

49,409,014
3,762,976

49,409,014
3,762,976――

7,904,378
304,314,473
766,959,344(3,553,126)
763,406,218$1,727,577,174$1,205,455,051
122,048,718
20,794,599
165,130,010

8,043,094
304,314,473

138,716―774,184,365$1,738,495,042$1,205,522,010
122,042,904
20,794,599
165,130,010

10,778,147$10,917,868$66,959(5,814)――

10,183,368

10,183,368―

20,335,147
47,872,351
81,838,027
9,698,710$1,683,355,981

20,335,147
47,303,625
81,299,133
9,698,710$1,682,309,506―(568,726)(538,894)―$(1,046,475)$6,665,037$―$3,375,926
3,289,111$6,665,037*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since contractual terms of these items aremainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values
to be fair values.
(2) Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under
Securities Borrowing Transactions
Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items
approximate book values, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6) Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7) Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other
Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fairvalues.
The notes to Money Held in Trust based on holding purpose are stated in “42.Fair Value of Securities and Money
Held in Trust.”(8) Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting
the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss
and various risk factors by categories according to the internal ratings and terms.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably
calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices
based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method.
The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices
may not reflect the fair value, are based on the reasonably calculated prices as book value. In deriving the reasonably
calculated prices, we used the discount cash flow method as well as other methods. The price decision variables include
the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese
Government Bonds as underlying assets.
The notes to Securities based on holding purpose are stated in “42.Fair Value of Securities and Money Held in Trust.”(9) Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount of203

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Reserves for Possible Losses on Loans in the consolidated balance sheet as of the consolidated balance sheet date
and we thus deem such amount to be fair values.
Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans
to within the value of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1) Deposits (2) Negotiable Certificates of Deposit
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated byclassifying them based on their terms and by discounting the future cash flows. The discount rates used in suchcalculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months)
approximate book values, we mainly deem the book values to be fair values.
(3) Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under
Securities Lending Transactions
Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values
approximate book values, we deem the book values to be fair values.
(6) Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7) Borrowed Money
Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest ofsuch Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8) Bonds and Notes
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for
Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by
the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
(9) Due to Trust Accounts
Due to Trust Accounts of consolidated trust banking subsidiaries is used for transactions in which consolidated trust
banking subsidiaries manage fund entrusted to them in bank accounts of consolidated trust banking subsidiaries. As the
purpose is considered to approximate demand deposit, we deem the book values to be fair values.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 2) Consolidated balance sheet amounts of financial instruments whose fair values are deemed to be extremely
difficult to determine are indicated below, and are not included in “Assets (7) Money Held in Trust” and “Assets (8)Other Securities” in fair value information of financial instruments.

2020
Consolidated Balance
Sheet Amount2019
Consolidated Balance
Sheet AmountThousands of U.S.
dollars
2020
Consolidated Balance
Sheet Amount¥223,633
372,400
2,356¥598,390¥178,677
126,533
2,077¥307,288$2,054,884
3,421,859
21,654$5,498,397

Millions of yen
As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships and others *2(iii) Other
Total *3

*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.

*2 Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are

deemed extremely difficult to determine fair values as being subject to disclosure of fair values.

*3 During the fiscal years ended March 31, 2020 and 2019, the amounts of impairment (devaluation) were ¥2,221 million ($20,416 thousand) and ¥2,316

million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥40,014,084¥0¥―Call Loans and Bills Purchased
584,686――
Other Debt Purchased
2,424,118
79,12061,2679,470,526
5,932,9784,199,417
Securities *1
Bonds Held to Maturity―
100,000
380,000
Japanese Government Bonds―
100,000
380,000
Foreign Bonds―――
Other Securities with Maturities
9,470,526
5,832,9783,819,417
Japanese Government Bonds
5,868,042
3,000,800
1,908,920
Japanese Local Government
11,51078,84992,608
Bonds
Japanese Corporate Bonds
385,739
729,659
606,761
Foreign Bonds
3,190,027
1,957,887
1,167,700
Other
15,20665,781
43,42630,971,690
18,612,197
14,023,152
Loans and Bills Discounted *2
Total¥83,465,106 ¥24,624,297 ¥18,283,836¥――
12,1552,202,884―――
2,202,884
407,400¥――
9,337
2,731,895―――
2,731,895
1,254,700¥――
101,0105,284,320
359,242―359,242
4,925,077
45,00013,82470,7984,400

As of March 31, 2020
Types of Financial Instruments

205

Financial Instruments

Within 1 year

1-3 years

265,524
1,476,926
39,2086,589,499¥8,804,540

266,738
576,830
1,109,641
3,387,349
30,017
911,497
4,699,673
7,462,871¥7,440,906 ¥12,848,202

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3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥44,406,145¥0¥―Call Loans and Bills Purchased
648,254――
Other Debt Purchased
2,587,337
57,64958,456
12,495,355
4,481,569
1,277,419
Securities *1
Bonds Held to Maturity
640,000―
380,000
Japanese Government Bonds
640,000―
380,000
Foreign Bonds―――
Other Securities with Maturities
11,855,355
4,481,569
897,419
Japanese Government Bonds
7,832,924
2,308,100
10,220Japanese Local Government
7,217
66,73451,431
Bonds
Japanese Corporate Bonds
355,767
639,809563,669
Foreign Bonds
3,643,312
1,451,173
196,210
Other
16,13415,75275,88828,990,334
17,588,913
12,332,623
Loans and Bills Discounted *2
Total¥89,127,427 ¥22,128,133 ¥13,668,500

¥―
―
4,004
657,610100,000
100,000―
557,610105,200¥――
5,551
2,466,845―――
2,466,845
1,319,200¥――
114,741
2,450,426
454,614―454,614
1,995,812
245,000

14,96962,416

4,766

306,147
99,09732,195
6,127,745¥6,789,360

231,077825,986
28,1654,810,240¥7,282,638

578,595
1,099,720
67,7307,386,646¥9,951,814

As of March 31, 2019
Types of Financial Instruments

As of March 31, 2020
Types of Financial Instruments

Within 1 year

Within 1 year

1-3 years

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

Due from Banks$367,675,130
$1
$―
$―
$―
$―
Call Loans and Bills Purchased
5,372,476―――――
Other Debt Purchased
22,274,360
727,012562,961
111,697
85,798928,148
87,021,283
54,516,021
38,586,944 20,241,520 25,102,410
48,555,730
Securities *1
Bonds Held to Maturity―
918,864
3,491,684――
3,300,953
Japanese Government Bonds―
918,864
3,491,684―――
Foreign Bonds
―
―
―
―
―
3,300,953
Other Securities with Maturities
87,021,283
53,597,157
35,095,260 20,241,520 25,102,410
45,254,777
Japanese Government Bonds 53,919,343
27,573,279
17,540,384
3,743,453 11,528,990
413,489
Japanese Local Government
105,766
724,523
850,947
127,032
650,543
40,430
Bonds
Japanese Corporate Bonds
3,544,426
6,704,583
5,575,312
2,439,809
2,450,963
5,300,291
Foreign Bonds
29,312,024
17,990,326
10,729,583 13,570,952 10,196,096
31,125,147
Other
139,724
604,446
399,034
360,274
275,818
8,375,420
284,587,801 171,020,838 128,853,740 60,548,557 43,183,621
68,573,664
Loans and Bills Discounted *2
Total$766,931,050 $226,263,872 $168,003,645 $80,901,774 $68,371,829 $118,057,542*1 Securities include those of which fair values are extremely difficult to determine.
*2 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be

projected, of ¥416,117 million ($3,823,551 thousand) and ¥388,952 million, and loans with no maturities of ¥692,982 million ($6,367,573 thousand) and¥831,478 million as of March 31, 2020 and 2019, respectively.

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2020
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total¥127,327,062¥2,904,265¥742,661¥46,167¥42,651¥126,864

12,985,294
2,263,076
4,104,930
373,658
456,009
1,055,510¥148,565,541

232,271―376,271―
2,153,502―¥5,666,310

66,280―
192,518―
1,503,198―¥2,504,658――
220,485―
1,170,849―¥1,437,502――
112,980―
1,126,630―¥1,282,262――
202,761―
676,550―¥1,006,175

As of March 31, 2019
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥120,184,354¥3,166,200¥703,893¥61,692¥53,935¥140,948

12,964,482
2,841,931
970,310355,539
1,010,378
1,102,073¥139,429,069

377,476—
1,058,972—
1,494,347—¥6,096,997——
304,205—
1,158,429—¥2,166,528——
258,013—
1,014,681—¥1,334,388——
225,203—1,464,885—¥1,744,024——
244,798—
623,757—¥1,009,504

Within 1 year

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years$1,169,962,901$26,686,256$6,824,052$424,221$391,909$1,165,713

119,317,233
20,794,599
37,718,740
3,433,412
4,190,107
9,698,710$1,365,115,702

2,134,256—
3,457,422—
19,787,768—$52,065,702

609,023—
1,768,988—
13,812,350—$23,014,413——
2,025,960—
10,758,515—$13,208,696——
1,038,140—
10,352,205—$11,782,254——
1,863,101—
6,216,577—$9,245,391

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total
As of March 31, 2020
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Bonds and Notes with no maturities of ¥1,820,000 million ($16,723,330 thousand) and ¥1,585,000 million as of March 31, 2020 and

2019, respectively.

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42. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”
Millions of yen

As of March 31, 2020

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥860,233¥875,329¥15,096¥743,537
479,936
263,600¥759,004
493,293265,711¥15,467
13,356
2,110¥116,696―
116,696¥116,325―
116,325¥(370)―(370)
Millions of yen

As of March 31, 2019

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥1,602,209¥1,609,588¥7,378¥1,119,898
1,119,898―¥1,139,806
1,139,806―¥19,907
19,907―¥482,311―
482,311¥469,782―
469,782¥(12,528)―(12,528)

Thousands of U.S. dollars

As of March 31, 2020

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference$7,904,378$8,043,094$138,716$6,832,098
4,409,964
2,422,134$6,974,221
4,532,693
2,441,528$142,123
122,729
19,394$1,072,280―
1,072,280$1,068,873―
1,068,873$(3,407)―(3,407)

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

As of March 31, 2020

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

209

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥33,429,383¥32,256,623¥1,172,759*2¥19,735,511
2,021,965
5,670,266
4,029,441
73,9891,566,835
12,043,279
10,833,455
60,832
1,148,991¥18,188,232
854,061
5,640,229
4,022,901
73,3401,543,988
11,693,942
10,587,358
59,442
1,047,141¥1,547,278
1,167,903
30,0376,540
649
22,847349,337
246,097
1,389
101,850¥13,693,871
316,463
10,032,246
8,572,492
198,578
1,261,175
3,345,161
1,868,757
140,256
1,336,146¥14,068,390
418,007
10,116,384
8,623,055
199,072
1,294,256
3,533,999
1,913,900
140,407
1,479,690¥(374,519)(101,543)(84,137)(50,562)(494)(33,081)(188,837)(45,142)(150)(143,544)¥7,125¥7,125¥―

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Millions of yen

As of March 31, 2019

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥27,847,545¥26,157,679¥1,689,866*2¥17,628,160
2,960,189
9,221,413
7,535,858
156,467
1,529,088
5,446,557
4,855,723
72,221
518,612¥15,744,723
1,185,729
9,184,129
7,527,102
154,795
1,502,230
5,374,864
4,820,417
70,840483,606¥1,883,436
1,774,459
37,2848,755
1,671
26,857
71,69235,3061,380
35,005¥10,219,384
183,371
5,565,535
4,360,275
53,424
1,151,835
4,470,477
2,562,598
93,894
1,813,985¥10,412,955
234,169
5,597,550
4,363,110
53,512
1,180,927
4,581,235
2,574,210
94,084
1,912,940¥(193,570)(50,797)(32,014)(2,834)(87)(29,092)(110,757)(11,611)(190)(98,955)¥4,641¥4,641¥—210

Fair Value of Securities and Money Held in Trust2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

As of March 31, 2020

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference$307,170,663$296,394,596$10,776,067*2$181,342,566
18,579,117
52,102,054
37,025,103
679,859
14,397,092
110,661,395
99,544,754
558,970
10,557,671$167,125,176
7,847,667
51,826,051
36,965,001
673,895
14,187,155
107,451,458
97,283,454
546,198
9,621,806$14,217,390
10,731,450
276,00360,102
5,964
209,937
3,209,937
2,261,300
12,772935,865$125,828,097
2,907,873
92,182,729
78,769,574
1,824,665
11,588,490
30,737,495
17,171,349
1,288,771
12,277,375$129,269,420
3,840,921
92,955,842
79,234,175
1,829,205
11,892,462
32,472,657
17,586,151
1,290,154
13,596,352$(3,441,323)(933,048)(773,113)(464,601)(4,540)(303,972)(1,735,162)(414,802)(1,383)(1,318,977)$65,478$65,478$―*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.

The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains (losses) of ¥(5,191) million ($(47,699) thousand) and ¥38,000 million which were recognized in thestatements of income for the fiscal years ended March 31, 2020 and 2019, respectively, by applying the fair-value hedge method.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Millions of yen
Unrealized
gains (losses)

Unrealized
gains (losses)

Thousands of U.S. dollars
2020
Unrealized
gains (losses)¥(16,818)¥15,812$(154,543)
Thousands of U.S. dollars
2020
Unrealized
Fair value gains (losses)

2020
As of March 31,

Trading Securities

2019

Millions of yen
2020

2019

As of March 31,

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Money Held in Trust for
Investment¥404,721¥(2,031)¥347,247¥(175)* Fair values of trading securities as of March 31, 2020 and 2019 are described in “41. Financial Instruments.”

211

Fair Value of Securities and Money Held in Trust$3,718,845$(18,671)

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amountof losses
Proceedsof gains
on salesfrom sales
on sales

For the Fiscal Year ended March 31,
2020

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥306,902
21,039,917
20,354,622¥189,638
40,971
38,972¥47,389
11,757
11,754$2,820,013
193,328,287
187,031,361$1,742,522
376,469
358,104$435,442
108,036
108,012

51,191

747-

470,377

6,872-

634,103
27,028,303¥48,375,123

1,250
237,333¥467,943

2
112,126¥171,273

5,826,549
248,353,431$444,501,731

11,493
2,180,776$4,299,767

24
1,030,293$1,573,771

Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2019

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥398,587
19,662,280
18,749,068¥217,587
24,42020,981¥25,532
14,55814,287

108,7411,747

7

804,470
18,208,373¥38,269,240

1,691
208,878¥450,886

264
176,851¥216,942

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2020 and 2019 are as follows:

As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Non-controlling Interests
Amount Corresponding to Net Unrealized Gains (Losses) on
Other Securities Owned by Affiliated Companies, which is
attributable to MHFGNet Unrealized Gains (Losses) on Other Securities

2019

Thousands of
U.S. dollars
2020¥1,177,927
1,177,927(338,232)
839,695
18,922¥1,651,704
1,651,704(452,032)
1,199,672
16,592$10,823,556
10,823,556(3,107,893)
7,715,663
173,868

2,311

3,322

21,241¥823,085¥1,186,401$7,563,036

Millions of yen
2020*1 The difference between acquisition cost and fair value excludes ¥5,191 million ($47,699 thousand) and ¥(38,000) million which were recognized in thestatements of income for the fiscal years ended March 31, 2020 and 2019, respectively, by applying the fair-value hedge method.
*2 Other Securities includes translation differences regarding securities which do not have readily determinable fair value.

212

Fair Value of Securities and Money Held in Trust2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

43. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2020 and 2019 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Osaka Exchange, the Tokyo Financial
Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts and intercompany or internal transactions are based on the discounted value of future cash flows, option pricing models andothers.

(1) Derivative Transactions not Qualifying for Hedge Accounting
Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.
(a) Interest Rate-Related Transactions

As of March 31, 2020

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

213

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥5,529,634
5,887,309¥1,591,823
2,471,820¥(31,113)
35,315¥(31,113)
35,315419,803757,178

40,35329,771(1,901)
2,961

(767)
1,352

43,095,911
39,476,804

108,830
108,830(27,342)
29,903(27,342)
29,903444,709,861
431,142,776
121,038,451
329,536

336,523,057
326,305,878
95,223,531
313,093(9,755,139)
10,260,575
46,160(1,072)(9,755,139)
10,260,575
46,160(1,072)

13,056,382
12,156,026

7,542,710
7,821,714(255,511)
192,734(255,511)
192,734

4,718,469
13,413,792/

4,347,933
12,916,374/

131,693(273,174)¥354,090

131,693(273,174)¥353,615

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2019

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥5,271,028
4,937,314¥1,170,467
1,038,597¥(11,769)
10,720¥(11,769)
10,72068,982366,497

5,426
26,713

(88)
145

(49)
(11)

24,986,558
23,745,677

337,427
356,242(7,444)
4,439(7,444)4,439

437,805,612
432,199,871
96,243,012
490,281355,064,104
349,054,509
74,473,472
471,171

5,073,779(4,958,342)
27,9996,110

5,073,779(4,958,342)
27,9996,110

7,659,317
5,682,687

5,756,825
4,079,574(21,010)
21,875(21,010)
21,8755,728,950
11,983,010/

5,514,595
10,549,204/

179,713(185,847)¥140,280

179,713(185,847)¥140,163

214

Derivatives Information

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2020

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

215

Derivatives Information

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$50,809,834
54,096,384$14,626,699
22,712,672$(285,888)
324,499$(285,888)
324,499

3,857,421
6,957,445

370,799
273,559(17,470)
27,214(7,048)12,424395,992,941
362,738,257

1,000,000
1,000,000(251,244)
274,776(251,244)
274,776

4,086,280,083
3,961,616,988
1,112,179,097
3,027,996

3,092,190,185
2,998,308,169
874,975,020
2,876,909(89,636,489)
94,280,764
424,153(9,851)(89,636,489)
94,280,764
424,153(9,851)

119,970,434
111,697,389

69,307,269
71,870,943(2,347,799)
1,770,972(2,347,799)
1,770,972

43,356,334
123,254,552/

39,951,609
118,683,956/

1,210,086(2,510,107)$3,253,616

1,210,086(2,510,107)$3,249,248

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) Currency-Related Transactions

As of March 31, 2020

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

As of March 31, 2019

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥13,092
48,893¥329
14,608¥――¥――57,638,817

43,894,609

1,219(68,637)

75,494,594
37,624,376

3,175,535
1,697,421(199,399)
242,910(199,399)
242,910

5,145,203
4,805,185

1,383,542
1,114,200(82,922)67,035(36,588)
13,0262,858,190

1,991,772(151,891)

8,698

101
7,026
/

―
―
/

0
19
¥(123,027)

0
19¥(39,970)

Fair value

Millions of yen
Unrealized
gains (losses)

Contract value
Total
Over one year

¥14,389
56,061¥56
11,939¥――¥――51,184,817

37,680,355

169,30987,121

69,961,828
34,177,574

2,808,061
1,235,536(197,466)
210,658(197,466)
210,658

3,711,388
3,742,133

1,164,432
949,891(38,603)43,7579,808(8,809)2,980,292

2,126,659(132,328)

20,267―
10,465
/

―
―
/

―
84
¥55,411―84¥121,663

216

Derivatives Information

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2020

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$120,302
449,267$3,028134,230

$―
―

$―
―

529,622,507

403,331,889

11,201(630,690)

693,692,866
345,716,962

29,178,860
15,596,996(1,832,208)
2,232,020(1,832,208)
2,232,020

47,277,433
44,153,135

12,712,882
10,237,987(761,942)
615,965(336,202)
119,692

26,262,888

18,301,691(1,395,677)

79,930929
64,564
/

―
―
/

2
180
$(1,130,459)2
180$(367,276)

Fair value

Millions of yen
Unrealized
gains (losses)(c) Stock-Related Transactions

As of March 31, 2020

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

217

Derivatives Information

Contract value
Total
Over one year

¥251,436
425,430¥22,541
22,852¥(3,119)
10,721¥(3,119)
10,721

2,170,366
1,906,816

464,262
383,082(155,113)
146,827(49,255)
40,266471,137

374,198

91,88891,888476,111225,048

217,740
59,822(50,480)
57,065(50,480)
57,065

13,676429,384/

13,676
296,005/237
28,439¥126,467

237
28,439¥125,764

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2019

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

As of March 31, 2020

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥719,406
304,830¥――¥(8,846)971¥(8,846)971

1,564,602
1,520,734

550,466
387,167(72,756)
53,882

6,380(16,787)

332,369

295,630

27,124

27,124

494,539
201,329

340,842
116,343(52,538)
69,367(52,538)
69,367―
371,911/―257,348/―283¥17,487―283¥25,955

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$2,310,364
3,909,127$207,124
209,979$(28,660)
98,518$(28,660)
98,51819,942,722
17,521,056

4,265,944
3,520,011(1,425,283)
1,349,148(452,594)
369,991

4,329,117

3,438,380

844,335

844,335

4,374,822
2,067,887

2,000,742
549,690(463,844)
524,356(463,844)
524,356

125,668
3,945,461/

125,668
2,719,885/

2,179
261,320$1,162,069

2,179
261,320$1,155,601

218

Derivatives Information

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions
Millions of yen
2020

2019

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year

Total

Over
one year¥624,565
625,248¥――¥(11,223)
6,551

―
―

―
―

579,001
577,602―
15,585/¥(11,223)
6,551¥792,227
674,829¥――¥(6,496)
7,354¥(6,496)
7,354

―
―

―
―

129,948
252,433

―
―

(124)
189

(37)
(26)

145,808
145,808(2,593)
4,993

(851)
3,096

632,942
633,054

207,161
207,161(8,098)
7,455(7,291)
6,632

―
―
/

―
422
¥(1,848)―422¥(2,003)

139,680
129,465/――/(1,313)696¥(336)(1,313)696¥(482)

Thousands of U.S. dollars
2020
Contract value
As of March 31,

Total

Listed:Futures:Sold$5,738,908
Bought
5,745,182
Futures Options:
Sold―
Bought―Over-the-Counter:
Options:Sold
5,320,239
Bought5,307,386
Other:
Sold―
Bought143,214
Total
/

219

Derivatives InformationOver
One year

Fair
Unrealized
value gains (losses)$――$(103,131) $(103,131)
60,20460,204

―
―

―
―

―
―

1,339,784
1,339,784(23,827)
45,881(7,820)28,451

―
―
/

―
3,883
$(16,990)―
3,883$(18,413)

Unrealized
Fairvalue gains (losses)

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(e) Commodity-Related Transactions
Millions of yen
2020

2019

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
Over-the-Counter:
Options:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year

Total

Over
one year¥13,086
24,556¥6,097
13,371¥3,098(5,794)――

172,561
161,781/

73,05065,707/

Unrealized
Fairvalue gains (losses)¥3,098(5,794)¥9,482
15,634¥557
2,425¥(707)
1,996¥(707)
1,996

―

―

233

―

(11)

3

30,337(25,017)¥2,62330,337(25,017)¥2,623205,339
206,872/

50,214
48,150/(2,572)
3,898¥2,603(2,572)
3,898¥2,618

Thousands of U.S. dollars
2020
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
Over-the-Counter:
Options:
Sold
BoughtTotal

Fair
Unrealized
value gains (losses)

Total

Over
one year$120,248
225,642$56,031
122,866$28,469(53,245)$28,469(53,245)

―

―

―

―

1,585,601
1,486,548/

671,233
603,763/278,757(229,873)$24,108

278,757(229,873)$24,108

Note: Commodities include oil, copper, aluminum and others.

220

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions

As of March 31, 2020

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2019

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2020

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

Contract value
Total
Over one year

¥1,815,742
3,022,474/¥1,545,558
2,712,677/

Contract value
Total
Over one year

¥1,465,454
1,628,301/¥1,139,869
1,260,718/

Contract value
Total
Over one year

$16,684,210
27,772,434/$14,201,582
24,925,825/

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

221

Derivatives Information

Fair value

Millions of yen
Unrealized
gains (losses)¥(4,725)
13,821¥9,096¥(4,725)
13,821¥9,096

Fair value

Millions of yen
Unrealized
gains (losses)¥15,200(13,856)¥1,343¥15,200(13,856)¥1,343Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$(43,420)
127,002$83,582$(43,420)
127,002$83,582

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions
Millions of yen
As of March 31, 2020

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits,
borrowings, othersecurities and others

Contract valueOver one year
Total

Fair value¥18,151,743
6,140,649¥16,342,026
5,720,537¥293,030(133,511)

9,913
8,092

9,249
8,011

(136)
(69)

40,817/36,444/Loans and others

Loans and others
Note 2¥159,313
Millions of yen

As of March 31, 2019

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersContract value
Total
Over one year

Fair value¥22,394,730
7,569,787¥19,101,815
7,339,228¥289,554(206,003)

14,967―

14,382―

94―

69,176/37,388/Other securities and others

Loans and others
Note 2¥83,646

222

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2020

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Float / Pay Fixed
Total

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Loans, deposits,
borrowings, othersecurities and others$166,789,888
56,424,237$150,161,049
52,563,975$2,692,556(1,226,788)

91,09074,361

84,98773,612(1,253)(640)

375,057/

334,872/

Loans and others

Loans and others
Note 2$1,463,875

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24,
February 13, 2002).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of hedged items
such as loans, those fair values are included in fair values of such loans in “41. Financial Instruments.”(b) Currency-Related Transactions
Millions of yen
As of March 31, 2020

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersFair value¥6,925,267¥2,692,960¥173,713

7,026
101

―
―

(19)
(0)

2,167

2,167

(52)

4,242
4,242
/

3,690
3,690
/

25
(57)
¥173,609

Loans and other securities

Millions of yen
As of March 31, 2019

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

223

Derivatives Information

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersFair value¥6,492,483¥2,891,166¥148,252

10,465
―

―
―

(84)
―

―

―

―

―
―
/

―
―
/

―
―
¥148,167―

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2020

Primary Method :Swaps
Forwards:
Sold
BoughtFair Value Hedge Method :Swaps
Forwards:
Sold
BoughtTotal

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$63,633,814$24,744,650$1,596,193

64,564
929

―
―

(180)
(2)

19,914

19,914(479)

38,98738,987/33,911
33,911/231(528)$1,595,235

Loans and other securities

Note: Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25,
July 29, 2002).
(c) Stock-Related Transactions
Millions of yen
As of March 31, 2020

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

Primary
hedged items

Contract value
Total
Over one year

Fair value

Other securities¥148,913/¥148,913/¥25,031¥25,031
Millions of yen

As of March 31, 2019

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

As of March 31, 2020

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Total

Primary
hedged items

Contract value
Total
Over one year

Fair value

Other securities¥153,791/

Primary
hedged items¥143,123/¥(7,010)¥(7,010)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Other securities$1,368,312/$1,368,312/$230,001$230,001

224

Derivatives Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

44. Segment Information
Segment Information by Management Approach

1. Summary of Reportable Segment
MHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of thissystem is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking,trust and securities functions under a holding company structure, to speedily provide high-quality financial services thatclosely match customer needs.
Specifically, the company system is classified into the following five in-house companies, each based on a customer
segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company,
the Global Markets Company, and the Asset Management Company. The services that each in-house company is incharge of are as follows:
Retail & Business Banking Company:
Services for individual customers, small and medium-sized enterprises and middle market firms in Japan
Corporate & Institutional Company:
Services for large corporations, financial institutions and public corporations in Japan
Global Corporate Company:
Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.
Global Markets Company:
Investment services with respect to interest rates, equities and credits, etc., and other services
Asset Management Company:
Development of products and provision of services that match the asset management needs of its wide rangeof customers from individuals to institutional investors.
The reportable segment information, set forth below, is derived from the internal management reporting systems used bymanagement to measure the performance of the Group’s operating segments.
Management measures the performance of each of the operating segments in accordance with internal managerial
accounting rules and practices.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net
Gains or Losses Related to ETFs and Others, Net Business Profits or Losses (excluding the amountsof credit costs of trust accounts, before reversal of (provision for) general reserve for losses onloans) + Net Gains or Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
The following information of reportable segment is based on internal management reporting:Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others isthe total amount of Interest Income, Fiduciary Income, Fee and Commission Income, Trading Income, Other Operating
Income,and Net gains or losses related to ETFs and others.
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) + Net gains or losses related to ETFs and others is the amount of which General andadministrative expenses (excluding non-recurring expenses and others), Equity in income from investments in affiliates,
Amortization of goodwill and others (including amortization of intangible assets),and Others (consolidation adjustments) are
deducted from, or added to, Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses
related to ETFs and others.
Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others
relating to transactions between segments is based on the current market prices.
Fixed assets disclosed as asset information by segment are the total amount of tangible fixed assets and intangible fixed
assets. Fixed assets pertaining to Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd.
have been allocated to each segment.

225

Segment Information

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3. Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others, Net Business Profits or Losses (excluding the amounts of credit costs of trust
accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains or
Losses Related to ETFs and Others, and Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2020

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Fixed assets¥

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

673,572 ¥462,418 ¥

417,770 ¥

410,138 ¥48,361 ¥

60,563 ¥ 2,072,822

668,435

215,035

249,044

208,861

28,966

41,097

1,411,438

11,762

1,957

10,355

―

1,295

5,013

30,382

363
―

425
―

369
―

2,346
―

7,774
―

1,961
(5,942)

13,238(5,942)

16,536 ¥503,692 ¥

248,915 ¥
204,134 ¥

178,712 ¥173,023 ¥

198,931 ¥
91,459 ¥12,916 ¥93 ¥16,575 ¥672,585
767,361 ¥ 1,739,762

226

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2019

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others¥
General andadministrative
expenses(excluding NonRecurring Losses
and others)
Equity in income
from investments
in affiliates
Amortization of
goodwill andothersOthersNet businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others ¥Fixed assets¥

227

Segment Information

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

705,922 ¥473,393 ¥400,250 ¥

192,372 ¥

49,579 ¥6,205 ¥ 1,827,721

713,604

205,631

237,888

207,437

27,232

48,814

1,440,606

18,130

872

7,224

―

1,284

23,705

51,215

363
―

425
―

369
―

2,346
―

8,000
―

2,067
(16,386)

13,570(16,386)

10,085 ¥499,314 ¥268,209 ¥225,821 ¥169,217 ¥
176,921 ¥(17,411) ¥92,608 ¥

15,631 ¥111 ¥(37,357) ¥408,373
662,462 ¥ 1,657,237

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2020

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

Gross profits:(excluding theamounts of credit
costs of trust
accounts) + Net
gains or losses
related to ETFs
and others$ 6,189,212 $ 4,248,994 $General andadministrative
expenses(excluding NonRecurring Losses
and others)
6,142,011
1,975,880
Equity in income
from investments
in affiliates
108,077
17,982
Amortization of
goodwill andothers3,335
3,905
Others――Net businessprofits or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans) + Net gains
or losses related
to ETFs and others $151,943 $ 2,287,191 $Fixed assets$ 4,628,246 $ 1,875,714 $AssetManagement
Company

Others(Note 2)

Total

3,838,739 $ 3,768,612 $

444,372 $

556,499 $ 19,046,428

2,288,376

1,919,149

266,158

377,630

12,969,204

95,148―

11,89946,067279,173

3,390―

21,557―71,433―18,024(54,603)

121,644(54,603)

1,642,121 $ 1,827,906 $
1,589,847 $
840,384 $

118,680 $
152,309 $ 6,180,150
854 $ 7,051,008 $ 15,986,053

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others is reported
instead of sales reported by general corporations.Net gains or losses related to ETFs and others amounted to ¥ 10,602 millionand ¥14,984 million, of which ¥ 7,334 million and ¥ 7,280 million are included in the Global Markets Company for the fiscal year
ended March 31 2020 and 2019, respectively.
2.“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3.“Others” in Fixed assets includes assets of headquarters that have not been allocated to each segment, Fixed assets pertaining toconsolidated subsidiaries that are not subject to allocation, consolidated adjustments, and others. Among Fixed assets that havenot been allocated to each segment, some related expenses are allocated to each segment using the reasonable criteria of
allocation.
4.Following the change in allocation method for transactions between each segment and “Others” made in April, 2019,
reclassification was made on the above table for the fiscal year ended March 31 2019, to reflect the relevant change.

228

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related
to ETFs and others and that of Net business profits (excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others derived
from internal management reporting by reportable segment are different from the amounts recorded in Consolidated
Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to
ETFs and others of Segment Information and Ordinary Profits recorded in the Consolidated Statement of Income
Millions of yen
2020

Gross Profits(excluding the amounts of credit costs of trust accounts) + Net
gains or losses related to ETFs and others¥
Net gains or losses related to ETFs and others
Other Ordinary Income
General and Administrative Expenses
Other Ordinary Expenses
Ordinary Profits recorded in Consolidated Statement of Income ¥2,072,822 ¥(10,602)316,198(1,378,398)(362,142)
637,877 ¥2019

1,827,721 $(14,984)
436,019(1,430,850)(203,788)
614,118 $Thousands of
U.S. dollars
2020

19,046,428(97,426)
2,905,437(12,665,614)(3,327,599)
5,861,226(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others of Segment
Information and Income before Income Taxes Recorded in Consolidated Statement of Income
Millions of yen
2020

Net Business Profits(excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans) +Net Gains (Losses) related to ETFs and others¥
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loansand others
Net Gains (Losses) Related to Stocks- Net Gains (Losses) related
to ETFs and others
Net Extraordinary Gains (Losses)
OthersIncome before Income Taxes Recorded in Consolidated¥
Statement of Income

229

Segment Information

2019

Thousands of
U.S. dollars
2020

672,585 ¥—46,278408,373 $—
23,326

6,180,150—
425,234(183,308)(30,710)(1,684,360)

11,605

11,156

106,642

126,571(19,159)(35,854)259,879(497,858)(57,907)

1,163,018(176,052)(329,458)

618,717 ¥

116,259 $5,685,174

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Related Information(a) Information about Geographic Areas(i) Ordinary income
Millions of yen
2020

Ordinary Income

Japan

¥

2,362,597 ¥Americas809,986 ¥EuropeAsia/Oceania
excluding Japan

256,126 ¥

557,990 ¥Total

3,986,701
Millions of yen

2019

Ordinary Income

Japan

¥

2020

Ordinary Income

2,292,945 ¥

Japan

$

21,709,061 $Americas766,900 ¥Americas7,442,680 $EuropeAsia/Oceania
excluding Japan

276,061 ¥Europe589,742 ¥Total

3,925,649

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total

2,353,458 $

5,127,173 $

36,632,372

Notes: 1.The above table shows Ordinary Income instead of sales of non-financial companies.
2.Ordinary income is segmented by country and region based on the location of our group office inconsideration of geographical proximity, similarity of economic activities, and interrelationship of businessactivities.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2020 and 2019 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

230

Segment Information

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2020

Retail & BusinessBanking Company

Impairment Loss¥

4,095 ¥

Corporate &Institutional
Company

Global Corporate
Company

1,971 ¥

Global Markets
Company

5,261 ¥

Asset
Management
Company

659 ¥

2 ¥

Others3,236 ¥

Total

15,224

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2019

Retail & BusinessBanking Company

Impairment Loss¥

491,343 ¥Corporate &Institutional
Company

Global Corporate
Company

6,229 ¥

Global Markets
Company

2,469 ¥

6,844 ¥

Asset
Management
Company— ¥Others(3,272) ¥Total

503,612

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2020

Retail & BusinessBanking Company

Impairment Loss$

231

Segment Information

37,628 $Corporate &Institutional
Company

Global Corporate
Company

18,111 $Global Markets
Company

48,341 $6,055 $

Asset
Management
Company

18 $Others29,739 $Total

139,892

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2020

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

360 ¥

― ¥

2,670 ¥

1,032 ¥

4,062

¥

— ¥

— ¥

3,899 ¥

― ¥44,020 ¥13,357 ¥61,276

Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2019

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

360 ¥

— ¥

3,000 ¥

720 ¥

4,080

¥

— ¥

— ¥

4,427 ¥

— ¥46,688 ¥14,380 ¥65,495

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2020

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

$

― $

― $

3,308 $

― $24,533 $9,483 $

37,324

$

― $

― $

35,827 $― $404,484 $

122,737 $563,048

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
For the fiscal years ended March 31, 2020 and 2019
・There is no applicable information.

45. Related Party
For the fiscal years ended March 31, 2020 and 2019
・There are no material additions to the current scope subject to disclosure.

232

Segment Information、Related Party

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Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

46. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2020 and 2019 are calculated based on the following
information:
Yen
As of or for the fiscal years ended March 31,

Net Assets per Share of Common Stock
Profit Attributable to Owners of Parent per Share ofCommon Stock
Diluted Profit Attributable to Owners of Parent per
Share of Common Stock

2020

2019

U.S. dollars
2020¥337.29¥345.00

$3.10

17.68

3.80

0.16

17.68

3.80

0.16

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
As of March 31,

Total Net Assets
Deductions from Total Net Assets
Stock Acquisition Rights
Non-Controlling Interests
Net Assets (year-end) related to Common
StockYear-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
calculated

2020

2019

Thousands of U.S. dollars
2020¥8,663,847
109,876213
109,662¥9,194,038
445,232707
444,525$79,609,005
1,009,617
1,965
1,007,652

8,553,971

8,748,805

78,599,388

25,360,392 Thousand shares 25,358,536 Thousand shares/

2. Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Profit Attributable to Owners of Parent
Amount not attributable to Common Stock
Profit Attributable to Owners of Parent
related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)

2020

2019

Thousands of U.S. dollars
2020¥448,568—¥96,566—$4,121,738—

448,568

96,566

4,121,738

25,360,661 Thousand shares 25,362,375 Thousand shares/

3. Diluted Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Adjustment to Profit Attributable to Ownersof Parent
Increased Number of Shares of Common
Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Profit Attributable to Owners of
Parent per Share of Common Stock asthey have no Dilutive effects

233

Per Share Information

2020

2019

Thousands of U.S. dollars
2020

¥—

¥—

$—

1,582 Thousand shares
1,582 Thousand shares—

4,522 Thousand shares
4,522 Thousand shares

—

/
/

/

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

4. In the calculation of Net Assets per Share of Common Stock, MHFG shares outstanding in BBT trust account thatwere recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted fromthe number of issued shares. The number of such Treasury Stock shares deducted during the period is 19,636
thousand and 18,917 thousand as of March 31, 2020 and 2019, respectively.
In the calculation of Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit
Attributable to Owners of Parent per Share of Common Stock, such Treasury Stock shares are included in
Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during
the period. The average number of such Treasury Stock shares deducted during the period is 19,255 thousand
and 17,195 thousand as of March 31, 2020 and 2019, respectively.

47. Subsequent Events
The Board of Directors of the MHFG resolved in a meeting held on May 15, 2020 to include the following shareconsolidation in the agenda for the 18th Ordinary General Meeting of Shareholders to be held on June 25, 2020.
(1) Purpose of the share consolidation
MHFG’s current share price is significantly below the desirable Trading Unit range of 50,000 yen to 500,000 yen designatedby the Securities Listing Regulations of the Tokyo Stock Exchange.
In order to address this situation, we resolved to include the following share consolidation of common stock on the basis of
one post-consolidation share per ten pre-consolidation shares in the agenda for the Ordinary General Meeting of
Shareholders.
(2) Details of the share consolidation
i. Class of shares to be consolidated
Common Stock
ii. Consolidation rate
One post-consolidation share per ten pre-consolidation shares based on the shares owned by the shareholders
recorded in the shareholder register as of September 30, 2020.
iii. Effective date
October 1, 2020
iv. Total number of Authorized Shares
5,130,000,000 shares
To be changed on the effective date of the share consolidation pursuant to Article 182, Paragraph 2 of Japan’sCompanies Act
v. Number of shares to be reduced by the consolidation (Number of shares to be reduced could be changed)
Total number of issued shares before the consolidation as of March 31, 2020

25,392,498,945

Number of shares to be reduced by the consolidation

22,853,249,051

Total number of issued shares after the consolidation

2,539,249,894( Note) “Number of shares to be reduced by the consolidation” and “Total number of the issued shares after the
consolidation” are theoretical figures based on the total number of the issued shares before the consolidation and theconsolidation rate.

234

Per Share Information、Subsequent Events

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) Effect on per share information
Per share information would be as follows under the assumption that the share consolidation had taken place at the
beginning of the fiscal year ended March 31, 2019.
For the fiscal year ended
For the fiscal year ended
March 31, 2020
March 31, 2019
Net Assets per Share of Common Stock¥3,450.04¥3,372.96

Profit per Share of Common Stock

38.07

176.87

Diluted Profit per Share of Common Stock

38.06

176.86235

Subsequent Events

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

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

Mizuho Financial Group, Inc.
237

Non-Consolidated Balance Sheet

238

Non-Consolidated Statement of Income

Mizuho Bank, Ltd.
239

Non-Consolidated Balance Sheet

241

Non-Consolidated Statement of Income

Mizuho Trust & Banking Co., Ltd.
242

Non-Consolidated Balance Sheet

244

Non-Consolidated Statement of Income

Mizuho Securities Co., Ltd.
245

Non-Consolidated Balance Sheet

248

Non-Consolidated Statement of Income

236

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries-Index

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2020

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains ( Losses) on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets¥

Non-Consolidated Balance Sheet2019

90,273
43,23347,03912,733,504
67,3188,117
6,079,198
6,578,869¥ 12,823,777

176,648
100,367
76,281
11,460,467
222,738
11,072
6,074,549
5,152,106¥ 11,637,116

$

¥

¥

$

¥

893,384
860,000
33,384
6,567,949
7,461,334
5,362,232
2,256,767
1,196,659
1,196,659―
1,913,787
4,350
1,909,437
1,909,437(4,982)(3)(3)
213
5,362,442
12,823,777¥¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

237

Thousands of
U.S. dollars
2020

982,626
945,505
37,121
5,135,769
6,118,395
5,518,013
2,256,767
1,196,673
1,196,659
13
2,070,749
4,350
2,066,399
2,066,399(6,176)(0)(0)
707
5,518,720
11,637,116$$

829,487
397,260
432,227
117,003,623
618,569
74,59055,859,584
60,450,880
117,833,110

8,208,992
7,902,233
306,759
60,350,546
68,559,538
49,271,643
20,736,631
10,995,677
10,995,677―
17,585,114
39,97017,545,144
17,545,144(45,779)
(36)
(36)
1,965
49,273,572
117,833,110

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income
Millions of yen
2020

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

75,42436,673¥

2019

331,315
291,116

Thousands of
U.S. dollars
2020$

693,046
336,981

38,75038,951
38,951
36,472
135,156
131,631
39,99740,19840,67940,679290,635
196,744
116,300
371,078

356,065
357,909357,909335,137
1,241,904
1,209,516
367,525

29
5,912
34,056

22,606(6,104)
354,576267
54,326
312,932¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

238

Non-Consolidated Statement of Income

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

239

Non-Consolidated Balance Sheet

2019

Thousands of
U.S. dollars
2020¥42,044,263
516,085
4,226,040
100,501
491,276
3,708,952
503
29,475,876
76,047,363
2,043,874
5,897,245
729,129
252,623
396,379
21,68014,28744,159354,116
84,065
5,337
264,713481,875―
6,492,905(242,076)(370)¥172,367,564$356,824,719
8,806,024
79,021,092
1,121,028
3,954,149
46,066,466
4,629
315,839,061
743,097,207
18,070,328
74,464,076
7,746,567
2,248,597
4,734,579
115,407274,101
373,883
3,284,318
2,771,169
37,317475,832
5,111,399
339,52160,055,005(3,538,817)(22,592)$1,720,244,180

Millions of yen
2020¥38,833,234
958,3598,599,865
122,001430,330
5,013,413
503
34,372,765
80,871,269
1,966,593
8,103,925
843,058
244,714515,264
12,55929,83040,689357,432
301,586
4,061
51,784556,273
36,9506,535,786(385,129)(2,458)¥187,214,174

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet—(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2019

Thousands of
U.S. dollars
2020¥139,043,379
1,213,576
7,469,615¥132,323,772
1,308,045
5,162,334$1,277,619,953
11,151,123
68,635,627

276,869
411,089
3,795,423
11,394,924
716,394
1,100,670
8,018,493
19,841
765
637
1,770
25,943
18,672―
62,695
6,535,786
180,106,550

305,032
941,1812,577,856
7,998,715
925,879
1,968,205
5,169,812
22,362
1,100
630
100
16,98725,56628,33863,315
6,492,905
165,332,144

2,544,051
3,777,354
34,874,793
104,703,890
6,582,696
10,113,672
73,679,073
182,315
7,037
5,858
16,265
238,389
171,578―
576,090
60,055,005
1,654,934,769

6,163,034
1,404,065
2,286,328
655,418
1,630,910
2,472,640
315,177
2,157,463
2,157,463
944,588736,239
71,693
136,655
7,107,623

5,854,129
1,404,065
2,286,328
655,418
1,630,910
2,163,735
315,177
1,848,557
1,848,557
1,181,291
1,071,157(27,639)
137,772
7,035,420

56,629,921
12,901,452
21,008,261
6,022,403
14,985,858
22,720,208
2,896,051
19,824,157
19,824,157
8,679,490
6,765,045
658,768
1,255,677
65,309,411¥187,214,174¥172,367,564$1,720,244,180

Millions of yen
2020

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

240

Non-Consolidated Balance Sheet2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)

2019

Thousands of
U.S. dollars
2020¥1,642,866
1,113,358
258,265
476,787
150,596
238,043
255,2032,763,497¥1,678,702
1,126,596
281,807471,196
61,855
158,466
257,901
2,628,122$15,095,716
10,232,094
2,373,114
4,381,030
1,383,780
2,187,293
2,344,970
25,392,789

1,013,852
570,830
91,650809
97,383
789,552
356,673
2,349,922

1,028,946
577,801
90,934377
174,935
840,607
699,784
2,835,586

9,315,929
5,245,162
842,1467,439
894,819
7,254,920
3,277,348
21,592,601

413,574(207,463)

3,800,188

109,151(3,364)¥307,788

94,923(157,943)¥(144,444)

1,002,951(30,917)$2,828,154

Millions of yen
2020

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

241

Non-Consolidated Statement of Income

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets

2019

Thousands of
U.S. dollars
2020¥2,434,150
24,417332,116
6,692
111,667
4,641
841,6213,355,173
4,073
188,381
20,559
9,013
9,185
2,361
32,664
8,776
23,88755,766
16,885(2,324)¥7,426,486$16,234,487
134,876
1,819,847
298,568
1,559,779
65,4788,808,462
30,942,534
72,2753,305,637
796,705
75,522603,895
117,288
280,529
256,322
24,207604,243
135,587(33,897)$65,025,110

Millions of yen
2020¥1,766,799
14,678198,053
32,493
169,750
7,125
958,624
3,367,475
7,865
359,752
86,7058,219
65,721
12,76430,52927,8952,634
65,75914,755(3,689)¥7,076,682

242

Non-Consolidated Balance Sheet2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2019

Thousands of
U.S. dollars
2020¥3,761,075
807,706―¥3,819,608
947,104
22,198$34,559,182
7,421,727―

289,789
170,146
255,860
23
10,0001,055,510
142,457
2,153
368
1,907
3,220
14,755
6,514,977

362,246
107,096379,706―
10,0001,102,073
68,806
2,125
467
2,081
6,631
16,885
6,847,033

2,662,777
1,563,412
2,351,014
214
91,886
9,698,710
1,308,996
19,792
3,383
17,52529,594
135,587
59,863,799

516,339
247,369
15,505
15,505
253,465
41,484211,980
211,980
45,36549,981(4,615)561,705

504,764
247,369
15,505
15,505
241,889
36,719205,170
205,170
74,68776,295(1,608)579,452

4,744,463
2,272,992
142,472
142,472
2,328,999
381,186
1,947,813
1,947,813
416,848459,262(42,414)5,161,311¥7,076,682¥7,426,486$65,025,110

Millions of yen
2020

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

243

Non-Consolidated Balance Sheet2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2019

Thousands of
U.S. dollars
2020¥59,132
37,305
24,61910,65470,6101,526
24,31917,124210,019¥54,997
42,795
26,691
13,78670,3071,552
8,319
31,650209,621$543,350
342,791
226,217
97,899648,816
14,025
223,462
157,349
1,929,793

13,445665
35,02720
11,45881,211
18,967160,130

16,415
1,103
33,391－
6,037
82,39518,190156,430

123,547
6,115
321,852
188
105,287
746,225
174,283
1,471,382

49,88853,190458,411

10,342
4,147¥35,398

12,544
1,582¥39,063

95,036
38,110$325,265

Millions of yen
2020

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

244

Non-Consolidated Statement of Income

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Operating Investment Securities
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Less: Allowance for Possible Losses on Securities
Total Noncurrent Assets
Total Assets

245

Non-Consolidated Balance Sheet

2019

Thousands of
U.S. dollars
2020¥533,288
387,043
6,461,814
2,366,879
4,094,934
33,43022,055
20,172¥388,516
335,712
6,061,110
3,064,131
2,996,979
28,64034,162
23,975$4,900,202
3,556,403
59,375,308
21,748,414
37,626,894
307,178
202,663
185,355

1,883
4,296,231
2,131,439
2,164,792
579
544,402
12,97137,298275
3,080
10,75634,2743,040(7)12,380,536

10,187
3,871,953
2,353,557
1,518,395
488
387,042
9,613
52,652
733
3,208
7,082
35,006
1,410(3)
11,217,332

17,30839,476,539
19,585,034
19,891,505
5,322
5,002,320
119,192
342,7212,529
28,30998,838314,933
27,942(67)
113,760,332

11,196
61,637
302,584
237,673
10,572
21,27518,73918,308(3,435)(548)
375,419

12,52750,829315,137
244,677
10,966
18,616
19,79026,637(3,488)(2,062)
378,493

102,885566,365
2,780,343
2,183,897
97,144
195,491
172,189
168,232(31,571)(5,039)3,449,593¥12,755,956¥11,595,825$117,209,925

Millions of yen
2020

2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payables - unsettled trades
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Variation Margin Received
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Lease Obligations
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Variable Compensation
Provision for Bonus Point Redemption
Other Current Liabilities
Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Lease Obligations
Provision for Retirement Benefits
Other Noncurrent Liabilities
Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities
Total Statutory Reserves
Total Liabilities

2019

Thousands of
U.S. dollars
2020¥5,032,193
1,197,319
3,834,873
61,66847,395
7,427
39,9683,660,235
790,395
2,869,840
350,409
370,607
2,029
12,074
1,035,215
319,000
137,358―
127
1,789
38,9593,022
13,531816
487
514
11,087,436¥4,340,952
1,511,888
2,829,063
36,88853,591
10,77342,8183,575,497
914,264
2,661,233
308,251
297,4722,064
3,426
773,484
333,200
76,393
174
193
1,812
34,869
2,220
9,359
927
686
497
9,851,965$46,239,028
11,001,745
35,237,283
566,646435,500
68,245367,255
33,632,599
7,262,663
26,369,936
3,219,790
3,405,378
18,645110,953
9,512,223
2,931,177
1,262,141―
1,170
16,440357,985
27,774
124,334
7,506
4,481
4,727
101,878,497

620,079
135,600―
19,8282,111
777,618

679,688
173,000―
19,7992,263
874,751

5,697,688
1,245,980―
182,196
19,3987,145,262

2,509
2,509

2,473
2,473

23,06323,063¥11,867,565¥10,729,189$109,046,822

Millions of yen
2020

246

Non-Consolidated Balance Sheet2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholders’ Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets

2019

Thousands of
U.S. dollars
2020¥125,167¥125,167$1,150,118

285,831
95,817
381,649

285,831
95,817
381,649

2,626,403
880,437
3,506,840

371,261
371,261
878,078

346,585
346,585
853,401

3,411,390
3,411,390
8,068,348

20,066(9,754)
10,312

23,023(9,789)13,233

184,384(89,629)
94,755

Millions of yen
2020

888,390866,635

8,163,103¥12,755,956¥11,595,825$117,209,925

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

247

Non-Consolidated Balance Sheet2020/09/07 16:49:02 / 20635244_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues
Interest Expenses
Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sales of Investment Securities
Gain on Sales of Shares of Subsidiaries and Affiliates
Extraordinary loss
Loss on Sales of Noncurrent Assets
Loss on Disposal of Noncurrent Assets
Loss on Sale of Investment Securities
Loss on Impairment of Investment Securities
Loss on Liquidation of Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Special Retirement Benefits
Head Office Transfer Cost
Loss on Computer System Failure
Loss on Liquidation of Business
Provision of Allowance for Possible Losses on Securities
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes – current
Income Taxes – deferred
Total Income Taxes
Net Income

2019

Thousands of
U.S. dollars
2020¥149,514
23,881¥151,810
23,947$1,373,831
219,441

30,16636,912

277,190

31,52563,940111,981
2,621
90,075354,192
82,590271,602
237,737
57,92986,215
24,15142,322
19,702
4,436
(20)
3,000
33,864
4,744
179
38,429
1,110
23
607
480
2,860
8
253
17
41
151
4
1,262
720
132
―
96
134

27,772
63,177
93,5685,287
90,465341,131
77,794
263,337
236,229
53,157
86,66225,58543,374
18,931
5,452
2
3,064
27,1079,044
196
35,955
2,512
1
2,511
―
16,467
―
1,463
338
163
―
―
8,763
―
―
410
―
5,215

289,676
587,524
1,028,959
24,086
827,672
3,254,548
758,8942,495,654
2,184,485
532,297792,203
221,921388,883
181,039
40,765(192)
27,569311,169
43,596
1,653
353,112
10,207
212
5,581
4,414
26,287
82
2,327
163
381
1,396
42
11,598
6,621
1,218
―
885
1,238

36

112

336

36,679
5,158
2,310
7,468
¥29,21022,000
3,006
6,600
9,607
¥12,393

337,032
47,396
21,233
68,629$268,403

Millions of yen
2020

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥108.83=US$1.00, the foreign exchange rate on March 31, 2020, has been used for translation.

248

Non-Consolidated Statement of Income

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

249

白頁

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

251

Key Metrics

252

Status of Mizuho Financial Group's
Consolidated Capital Adequacy

252

Scope of Consolidation

253

Risk-based Capital

270

Summary of Risk Management and Risk-weighted
Assets (RWA)

272

Linkages between Financial Statements
and Regulatory Exposures

277

Credit Risk

297

Counterparty Credit Risk

306

Securitization Exposures

313

Market Risk

316

Investment or Equity Exposure

316

Operational Risk

317

Composition of Leverage Ratio

318

TLAC Regulations

323

Geographical distribution of credit exposures usedin the countercyclical capital buffer

323

Indicators for Assessing Global Systemically
Important Banks (G-SIBs)

324

Status of Sound Management of Liquidity Risk

324

Liquidity Coverage Ratio

326

Status of Major Liquid Assets

326

Status of Major Funding

327

Compensation of Directors and Employees

250

Basel Regulatory Disclosures2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Key Metrics

Under the capital adequacy ratio regulations agreed upon by the Basel Committee on Banking Supervision, banks are
required to meet certain minimum capital requirements. We calculate our capital adequacy ratio on a consolidated basis
based on “the criteria used by a bank holding company for deciding whether or not the adequacy of equity capital of thebank holding company and its subsidiaries is appropriate in light of the assets owned by the bank holding company and its
subsidiaries pursuant to Article 52-25 of the Banking Law” (Financial Services Agency, or FSA, Notice No.20 issued in2006).
We also calculate our leverage ratio on a consolidated basis according to “the criteria for evaluating the soundness of theleverage, prescribed as supplemental requirements of the criteria used by a bank holding company in deciding whether or
not the adequacy of equity capital of the bank holding company and its subsidiaries is appropriate in light of the assets
owned by the bank holding company and its subsidiaries, pursuant to Article 52-25 of the Banking Law” (FSA Notice No.12
issued in 2019.)
Liquidity standards agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio tosurpass certain minimum standards. We calculate our consolidated liquidity coverage ratio (the “Consolidated LCR”) in
accordance with the regulation “The Evaluation Criterion on the Sound Management of Liquidity Risk Defined, Based on
Banking Law Article 52-25, as One of Criteria for Bank Holding Companies to Evaluate the Soundness of Their
Management and the Ones of Their Subsidiaries and Others, which is also One of Evaluation Criteria on the Soundness of
the Banks' Management”(the FSA Notice No. 62 of 2014 (the “Notice No. 62”)).

■ Key Metrics
KM1: Key Metrics
Basel III
Template
No.

Capital1
Common Equity Tier 1 capital
2
Tier 1 capital3
Total capital
Risk weighted assets
4
Risk weighted assets
Capital ratio
5
Common Equity Tier 1 capital ratio
6
Tier 1 capital ratio
7
Total capital ratio
Capital buffer8
Capital conservation buffer requirement
9Countercyclical buffer requirement
10
Bank G-SIB/D-SIB additional requirements
11
Total of bank CET1 specific buffer requirements
CET1 available after meeting the bank's
12minimum capital requirements
Leverage ratio
13
Total exposures
14
Leverage ratio
Liquidity coverage ratio (LCR)
Total HQLA allowed to be included in the15
calculation
16
Net cash outflows
17
LCR
Note: Base Ⅲ Template No. from 15 to 17 are quarterly averages.

251

Key Metrics(millions of yen, except percentages)a
As ofMarch 31,
2020

b

c

As of
As of
December 31, September 30,
2019
2019

d

e

As of
June 30,
2019

As of
March 31,2019

¥7,244,776
9,024,404
10,722,278¥7,535,918
9,327,154
11,052,065¥7,383,281
9,161,779
10,864,818¥7,413,983
8,956,734
10,714,473¥7,390,058
9,232,160
10,917,507

62,141,217

63,219,955

60,599,128

59,928,686

57,899,567

11.65%
14.52%
17.25%

11.92%
14.75%
17.48%

12.18%
15.11%
17.92%

12.37%
14.94%
17.87%

12.76%
15.94%
18.85%

2.50%
0.01%
1.00%
3.51%

2.50%
0.04%
1.00%
3.54%

2.50%
0.05%
1.00%
3.55%

2.50%
0.05%
1.00%
3.55%

2.50%
0.05%
1.00%
3.55%

7.15%

7.42%

7.68%

7.87%

8.26%

220,977,568
4.08%

211,843,311
4.40%

210,901,420
4.34%

208,837,962
4.28%

208,557,401
4.42%

60,112,726

60,243,374

58,141,304

61,006,477

59,797,149¥43,816,756
137.3%¥41,800,058
144.1%¥41,230,070
141.0%¥42,792,200
142.5%¥41,447,805
144.3%

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the
Financial Services Agency Regarding Status of the Adequacy of Equity Capital Pursuant to Article 19-2, Paragraph 1, Item
5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law" (the FSA Notice No. 7 issued in 2014).

■ Scope of Consolidation(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements (the “Scope of Accounting Consolidation”)
None as of March 31, 2020 and 2019(b) Number of Consolidated Subsidiaries
Consolidated subsidiaries

As of March 31, 2020

As of March 31, 2019

126

117

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2020:

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ...........................................Japan
Mizuho Trust & Banking Co., Ltd. ...................Japan
Mizuho Securities Co., Ltd. .............................Japan
Mizuho Research Institute Ltd. .......................Japan
Mizuho Information & Research Institute, Inc. . Japan
Asset Management One Co., Ltd. .................. Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Realty Co., Ltd. ...................................Japan
Mizuho Factors, Limited ..................................JapanJapan
UC Card Co., Ltd. .................................
Mizuho Realty One Co., Ltd. .......................... Japan
Mizuho Business Service Co., Ltd .................. Japan
Defined Contribution Plan Services Co., Ltd. ..Japan
Mizuho-DL Financial Technology Co., Ltd. .....Japan

J.Score CO., Ltd. ........................................... Japan
Mizuho Trust Systems Company, Limited. ..... Japan

Mizuho Capital Co., Ltd. ..................................Japan

Main businessBanking
Trust and banking
Securities
Research andconsulting
Information technology
Investment
management
Consulting
Credit guarantee
Real estate agency
Factoring
Credit card
Holding company
Subcontracted
operations
Pension planrelated business
Application andSophisticationof Financial Technology
Lending
Subcontracted
calculation services,
software development
Venture capital

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
95.8
100.0

100.0%
100.0
95.8
100.0

100.0
70.0

100.0
51.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0

60.0

60.0

60.0

60.0

50.0
50.0

50.0
50.0

50.0

50.0

252

Scope of Consolidation

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Name

Country oforganization

Overseas
Mizuho Americas LLC .....................................U.S.A.
Mizuho Bank (China), Ltd. .............................. China
Mizuho International plc ..................................U.K.
Mizuho Securities Asia Limited .......................China
Mizuho Securities USA LLC ............................U.S.A.
U.S.A.
Mizuho Capital Markets LLC
Mizuho Bank Europe N.V. ............................... Netherlands
Banco Mizuho do Brasil S.A. .......................... Brazil
Mizuho Trust & Banking (Luxembourg) S.A. ...Luxembourg
Mizuho Bank (USA) ........................................U.S.A.
Mizuho Securities Europe GmbH ....................Germany
PT. Bank Mizuho Indonesia ............................Indonesia

Main businessHolding company
Banking
Securities and banking
Securities
Securities
Derivatives
Banking and securities
Banking
Trust and banking
Banking and trust
Securities
Banking

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

(c) Corporations Providing Financial Services for Which Article 9 of the FSA Notice No. 20 is Applicable
None as of March 31, 2020 and 2019.
(d) Companies that are in the Bank Holding Company’s Corporate Group but not Included in the Scope of
Accounting Consolidation and Companies that are not in the Bank Holding Company’s Corporate Group but
Included in the Scope of Accounting Consolidation
None as of March 31, 2020 and 2019.
(e) Restrictions on Transfer of Funds or Capital within the Bank Holding Company’s Corporate Group
None as of March 31, 2020 and 2019.
(f) Names of Any Other Financial Institutions, etc., Classified as Subsidiaries or Other Members of the Bank
Holding Company that are Deficient in Regulatory Capital
None as of March 31, 2020 and 2019.

■ Risk-based Capital(1) Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.

Maintaining a sufficient BIS capital ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining our capital above theminimum requirements of common equity Tier 1 capital ratio, Tier 1 capital ratio, total capital ratio, capital buffer ratio,
adequate leverage ratio and TLAC ratio.

Balancing risk and capitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the principal banking subsidiaries, etc., within the bounds of our capital,
and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we calculate the potential losses arising from assumed stress events and risk volumes, which
we assess whether they balance with the group’s capital. Stress events are based on risk scenarios that are formulated
based on the current economic condition and the economic outlook, etc. In addition, we examine whether an appropriate
return on risk is maintained in the assessments.

253

Scope of Consolidation、Risk-based Capital2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Composition of Capital, etc.
(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2

Common Equity Tier 1 capital: instruments and reserves
1a+2-1c-26(1)Directly issued qualifying common share capital plus related stock
surplus and retained earnings¥7,465,494¥7,207,427

1aof which: capital and stock surplus

3,393,235

3,395,217

2

of which: retained earnings

4,173,882

3,915,111

1cof which: treasury stock (-)

6,414

7,703

26

of which: national specific regulatory adjustments (earnings to
be distributed) (-)

95,20895,197

-

-

213

707

of which: other than above
1b

Subscription rights to common shares

3

Accumulated other comprehensive income and other disclosed
reserves

992,960

1,445,7705

Common share capital issued by subsidiaries and held by third
parties (amount allowed in group CET1)

7,549

6,460

6

Common Equity Tier 1 capital: instruments andreserves

8,466,218

8,660,365

8+9

Total intangible assets (net of related tax liability, excluding thoserelating to mortgage servicing rights)

469,463

459,991

8

of which: goodwill (net of related tax liability, including thoseequivalent)

68,24873,0039of which: other intangibles other than goodwill and mortgage
servicing rights (net of related tax liability)

401,215

386,987

10

Deferred tax assets that rely on future profitability excluding thosearising from temporary differences (net of related tax liability)

15,05336,566

11

Deferred gains or losses on derivatives under hedge accounting¥124,838¥(22,282)

Common Equity Tier 1 capital: regulatory adjustments

(A)

(a)

(2)

254

Composition of Capital Disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template
12

Shortfall of eligible provisions to expected losses

13

Securitization gain on sale

14

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2¥¥96,090
92-

Gains and losses due to changes in own credit risk on fair valued
liabilities

21,896

13,00615

Net defined benefit asset

587,912682,142

16

Investments in own shares (excluding those reported in the net
assets section)

2,185

4,792

17

Reciprocal cross-holdings in common equity

-

-

18

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the bank does not own more than
10% of the issued share capital (amount above the 10% threshold)--

19+20+21 Amount exceeding the 10% threshold on specified items

-

-

19

of which: significant investments in the common stock offinancials

-

-

20

of which: mortgage servicing rights

-

-

21

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

-

-

22

Amount exceeding the 15% threshold on specified items

23

of which: significant investments in the common stock offinancials

-

-

24

of which: mortgage servicing rights

-

-

25

of which: deferred tax assets arising from temporary differences(net of related tax liability)

-

-

-

-

(B)

1,221,441

1,270,307(C)¥7,244,776¥7,390,058

27

Regulatory adjustments applied to Common Equity Tier 1 due toinsufficient Additional Tier 1 and Tier 2 to cover deductions

28

Common Equity Tier 1 capital: regulatory
adjustments

Common Equity Tier 1 capital (CET1)
29

Common Equity Tier 1 capital (CET1) ((A)-(B))

255

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Template

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2

Additional Tier 1 capital: instruments

(3)

30

31a

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as equity under applicableaccounting standards and the breakdown

¥-

¥-

30

31b

Subscription rights to Additional Tier 1 instruments

-

-

30

32

Directly issued qualifying Additional Tier 1 instruments plus related
stock surplus of which: classified as liabilities under applicableaccounting standards

1,805,000

1,570,000

Qualifying Additional Tier 1 instruments plus related stock surplus
issued by special purpose vehicles and other equivalent entities

-

-

30
34-35

Additional Tier 1 instruments issued by subsidiaries and held by
third parties (amount allowed in group AT1)

20,27728,502

33+35

Eligible Tier 1 capital instruments subject to phase-out
arrangements included in Additional Tier 1 capital: instruments-

303,000

33

of which: directly issued capital instruments subject to phaseout from Additional Tier 1-

303,000

35

of which: instruments issued by subsidiaries subject to phase
out

-

-

1,825,277

1,901,502

1,700

2,900

¥-

¥-

36

Additional Tier 1 capital: instruments(D)

Additional Tier 1 capital: regulatory adjustments
37

Investments in own Additional Tier 1 instruments

38

Reciprocal cross-holdings in Additional Tier 1 instruments

256

Composition of Capital Disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2

39

Investments in the capital of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, netof eligible short positions, where the bank does not own more than
10% of the issued common share capital of the entity (amountabove 10% threshold)40

Significant investments in the capital of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation (net of eligible short positions)42

Regulatory adjustments applied to Additional Tier 1 due toinsufficient Tier 2 to cover deductions

43

Additional Tier 1 capital: regulatory adjustments¥-¥-

43,95056,500--(E)45,65059,400(F)

1,779,627

1,842,102(G)

9,024,404

9,232,160

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as equity under applicable accounting
standards and the breakdown

-

-

46

Subscription rights to Tier 2 instruments¥-¥-

Additional Tier 1 capital (AT1)44

Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)
45

Tier 1 capital (T1 = CET1 + AT1) ((C) + (F))

Tier 2 capital: instruments and provisions

257

Composition of Capital Disclosure(4)

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2019
31, 2020
CC2

46

Directly issued qualifying Tier 2 instruments plus related stock
surplus of which: classified as liabilities under applicableaccounting standards¥1,215,858¥1,002,257

46

Tier 2 instruments plus related stock surplus issued by special
purpose vehicles and other equivalent entities

130,184

166,150

5,955

7,777

337,412506,118

48-49

Tier 2 instruments issued by subsidiaries and held by third parties(amount allowed in group Tier 2)

47+49

Eligible Tier 2 capital instruments subject to phase-out
arrangements included in Tier 2:instruments and provisions

47of which: directly issued capital instruments subject to phaseout from Tier 2

74,725102,23749

of which: instruments issued by subsidiaries subject to phaseout

262,686

403,880

50

Total of general allowance for loan losses and eligible provisions
included in Tier 2

10,7824,377

50a

of which: general allowance for loan losses

4,228

4,377

50b

of which: eligible provisions

6,554

-

1,700,193

1,686,680

970

1,333

51

Tier 2 capital: instruments and provisions

Tier 2 capital: regulatory adjustments

(H)
(5)

52

Investments in own Tier 2 instruments

53

Reciprocal cross-holdings in Tier 2 instruments and other TLAC
liabilities

-

-

54

Investments in the capital and other TLAC liabilities of banking,financial and insurance entities that are outside the scope of
regulatory consolidation, net of eligible short positions, where thebank does not own more than 10% of the issued common sharecapital of the entity (amount above the 10% threshold)

¥-

¥-

258

Composition of Capital Disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2

54a

Investments in the other TLAC liabilities of banking, financial andinsurance entities that are outside the scope of regulatory
consolidation, where the bank does not own more than 10% of theissued common share capital of the entity: amount previously
designated for the 5% threshold but that no longer meets theconditions¥1,349¥-55

Significant investments in the capital and other TLAC liabilities ofbanking, financial and insurance entities that are outside the scopeof regulatory consolidation (net of eligible short positions)

-

-

57

Tier 2 capital: regulatory adjustments

(I)

2,319

1,333

(J)

1,697,873

1,685,347(K)

10,722,278

10,917,507

Tier 2 capital (T2)58

Tier 2 capital (T2) ((H)-(I))

Total capital (TC = T1 + T2)
59

Total capital (TC = T1 + T2) ((G) + (J))

Risk weighted assets
60

Risk weighted assets

Capital ratio and buffers (consolidated)
61

Common Equity Tier 1 capital ratio (consolidated) ((C)/(L))

259

Composition of Capital Disclosure

(6)
(L)

¥62,141,217 ¥57,899,567(7)11.65%

12.76%

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) CC1: Composition of Capital Disclosure(Millions of yen, except percentage)abcBasel III
Template

Reference
As of March As of March
to Template31, 2020
31, 2019
CC2
14.52%
15.94%

62

Tier 1 capital ratio (consolidated) ((G)/(L))

63Total capital ratio (consolidated) ((K)/(L))

17.25%

18.85%

64

Total of bank CET1 specific buffer requirements

3.51%

3.55%

65

of which: capital conservation buffer requirement

2.50%

2.50%

66

of which: countercyclical buffer requirement

0.01%

0.05%

67

of which: bank G-SIB/D-SIB additional requirements

1.00%

1.00%

68

CET1 available after meeting the bank's minimum capitalrequirements

7.15%

8.26%

Regulatory adjustments

(8)

72

Non-significant investments in the capital and other TLAC liabilitiesof other financials that are below the thresholds for deduction(before risk weighting)¥455,356¥540,695

73

Significant investments in the common stock of financials that are
below the thresholds for deduction (before risk weighting)

268,070

250,095

74

Mortgage servicing rights that are below the thresholds fordeduction (before risk weighting)

-

-

75

Deferred tax assets arising from temporary differences that are
below the thresholds for deduction (before risk weighting)351,227

233,628

Provisions included in Tier 2 capital: instruments andprovisions

(9)

76

Provisions (general allowance for loan losses)

4,228

4,377

77

Cap on inclusion of provisions (general allowance for loan losses)

43,991

43,521

78

Provisions eligible for inclusion in Tier 2 in respect of exposuressubject to internal ratings-based approach (prior to application ofcap) (if the amount is negative, report as "nil")

6,554

-

79

Cap for inclusion of provisions in Tier 2 under internal ratingsbased approach

302,928

278,991

416,627

624,941--

Capital instruments subject to phase-out arrangements

(10)

82

Current cap on AT1 instruments subject to phase-out arrangements

83

Amount excluded from AT1 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")

84

Current cap on T2 instruments subject to phase-out arrangements

337,412506,11885

Amount excluded from T2 due to cap (excess over cap after
redemptions and maturities) (if the amount is negative, report as"nil")¥1,270¥37,812

Notes: 1. The above figures are calculated based on the international standard applied on a consolidated basis under the FSA Notice No. 20.
2. As an external audit of calculating the consolidated capital adequacy ratio, we underwent an examination under the procedures agreed with by Ernst & Young ShinNihon
LLC, on the basis of "Practical guidance on agreed-upon procedures for the calculation of capital adequacy ratio and leverage ratio" (Practical Guideline for specialized
fields No. 4465 of the Japanese Institute of Certified Public Accountants). Note that this examination is not a part of the audit performed on our consolidated financial
statements or internal controls over financial reporting. Ernst & Young ShinNihon LLC does not give its opinion or conclusion concerning the capital adequacy ratio or ourinternal control structure regarding the calculation of the capital adequacy ratio. Instead, it performs an examination to the extent both of us agreed to and reports the results
to us.

260

Composition of Capital Disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

As of March 31, 2020 As of March 31, 2019
(Assets)
Cash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives other than for Trading Assets
Other Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances andGuarantees
Reserves for Possible Losses on Loans
Total Assets(Liabilities)
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for Trading Liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability
Reserve for Director and Corporate Auditor
Retirement Benefits
Reserve for Possible Losses on Sales of
Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities¥41,069,745
584,686
18,581,488¥45,108,602
648,254
12,997,628

2,243,161

2,578,133

2,688,273
13,248,734
411,847
34,907,234
83,468,185
2,044,415
1,944,060
5,206,121
1,103,622
636,139
846,782
32,493

2,828,959
12,043,608
351,889
29,774,489
78,456,935
1,993,668
1,328,227
4,229,589
1,037,006
620,231
982,804
37,9606,066,527

6,062,053(424,446)¥214,659,077(287,815)¥200,792,226¥131,189,673
13,282,561
2,263,076
17,971,098¥124,311,025
13,338,571
2,841,931
14,640,439

1,108,255

1,484,584

411,089
9,604,890
5,209,947
509,405
373,658
8,906,432
1,055,510
1,619,151
6,111,195
75,1752,559
62,113

941,181
8,325,520
3,061,504
669,578355,539
8,351,071
1,102,073
1,165,602
4,512,325
68,1172,867
60,873

944

1,389

637

630

6,443
27,851
18,672
2,509¥53,150

4,910
19,06825,5662,473¥185,974

261

Reconciliation of regulatory capital to consolidated balance sheet

6-a2-b, 6-b
6-c
6-d
6-e
2-a
3
4-a

6-f
8-a
8-b
6-g

4-b

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) CC2:Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
a

Items

b

Consolidated balance Consolidated balance
sheet as in published sheet as in publishedfinancial statements financial statementscdReference toTemplate CC1

Cross-reference toAppended template

As of March 31, 2020 As of March 31, 2019
Deferred Tax Liabilities for Revaluation
Reserve for Land
Acceptances and Guarantees
Total Liabilities(Net Assets)
Common Stock
Capital Surplus
Retained Earnings
Treasury Stock
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other
Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive
IncomeStock Acquisition Rights
Non-Controlling Interests
Total Net Assets
Total Liabilities and Net Assets¥62,695¥63,315

6,066,527¥205,995,229

6,062,053¥191,598,188

2,256,767
1,136,467
4,174,190(6,414)¥7,561,010

2,256,767
1,138,449
3,915,521(7,703)¥7,303,034

823,085

1,186,401

72,081
136,655(133,178)
94,317(22,282)
137,772(111,057)
254,936¥992,960¥1,445,770

213
109,662¥8,663,847¥214,659,077

707
444,525¥9,194,038¥200,792,226

4-c

1-a
1-b
1-c
1-d

5

(a)
7

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

262

Reconciliation of regulatory capital to consolidated balance sheet

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' Equity(1) Consolidated Balance Sheet(Millions of yen)

Ref.

Consolidated balance sheet items

As of March
31, 2020

1-a
1-b
1-c
1-d

Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity¥2,256,767
1,136,467
4,174,190(6,414)¥7,561,010(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Directly issued qualifying commonshare capital plus related stock
surplus and retained earnings
1a
2
1c

31a

of which: capital and stock surplusof which: retained earningsof which: treasury stock (-)
of which: other than above
Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as equity
under applicable accounting standards
and the breakdown

263

Reconciliation of regulatory capital to consolidated balance sheet

As of March
31, 2019¥2,256,767
1,138,449
3,915,521(7,703)¥7,303,034

Remarks(Millions of yen)
As of March
31, 2019

Remarks¥7,560,702¥7,302,625

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,393,235
4,173,882
6,414-

3,395,217
3,915,111
7,703
-

-

-

As of March
31, 2020

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2. Intangible Fixed Assets(1) Consolidated Balance Sheet(Millions of yen)
As of March
31, 2020

As of March
31, 2019

Ref.

Consolidated balance sheet items

2-a
2-b

Intangible fixed assets
Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥636,139
34,907,234¥620,231
29,774,489

6,971

7,508

Income taxes related to above¥(173,648)¥(167,749)(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Goodwill (net of related tax liability,
including those equivalent)
Other intangibles other than goodwill
9 and mortgage servicing rights (net of
related tax liability)
Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%
20
threshold on specified items
Amount exceeding the 15%
24
threshold on specified items
Mortgage servicing rights that are74
below the thresholds for deduction(before risk weighting)83

As of March
31, 2019¥68,248¥73,003401,215

386,987

-

-

-

-

-

-

-

-

15

Remarks

Software and other(Millions of yen)

Consolidated balance sheet items

As of March
31, 2020

As of March
31, 2019

Net defined benefit asset¥846,782¥982,804

Income taxes related to above¥(258,870)¥(300,661)(2) Composition of CapitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)
As of March
31, 2020

3. Net defined Benefit Asset(1) Consolidated Balance Sheet
Ref.

Remarks

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2020

As of March
31, 2019

Net defined benefit asset¥587,912¥682,142

Remarks264

Reconciliation of regulatory capital to consolidated balance sheet

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred Tax Assets(1) Consolidated Balance Sheet(Millions of yen)
As of March
31, 2020

As of March
31, 2019

Ref.

Consolidated balance sheet items

4-a
4-b

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥32,493
53,150¥37,960
185,974

62,69563,315

Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥173,648
258,870¥167,749
300,6614-c(2) Composition of CapitalBasel III
template

10

21
25

75

Composition of capital disclosure(Millions of yen)
As of March
31, 2020

As of March
31, 2019

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥15,053¥36,566

Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

351,227

233,628

-

-

-

-

351,227

233,628

Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Deferred tax assets arising from
temporary differences that are
below the thresholds for deduction(before risk weighting)265

Reconciliation of regulatory capital to consolidated balance sheet

Remarks

Remarks

This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.
This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Deferred Gains or Losses on Derivatives under Hedge Accounting(Millions of yen)
(1) Consolidated Balance Sheet
Ref.

5

Consolidated balance sheet items

Deferred gains or losses on hedges

As of March
31, 2020

As of March
31, 2019¥72,081¥(22,282)(2) Composition of CapitalBasel III
template

11

Composition of capital disclosure

Deferred gains or losses onderivatives under hedge accounting

Remarks(Millions of yen)
As of March
31, 2020¥124,838

As of March
31, 2019

Remarks¥(22,282)

Excluding those items whose
valuation differences arisingfrom hedged items arerecognized as "Total
accumulated othercomprehensive income"

6. Items Associated with Investments in the Capital of Financial Institutions(Millions of yen)
(1) Consolidated Balance Sheet
As of March
31, 2020

As of March
31, 2019¥13,248,734¥12,043,608

6-b Securities
6-c Loans and bills discounted
Derivatives other than for trading
6-dassets6-e Other assets

34,907,234
83,468,185

29,774,489
78,456,935

1,944,060

1,328,227

5,206,121

4,229,589

6-fTrading liabilities

9,604,890

8,325,520

6-gDerivatives other than for trading
liabilities

1,619,151

1,165,602

Ref.

Consolidated balance sheet items

6-a

Trading assets

Remarks

Including trading accountsecurities and derivatives for
trading assets
Including subordinated loans

Including money invested
Including trading accountsecurities sold

266

Reconciliation of regulatory capital to consolidated balance sheet

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in thecapital of banking, financial andinsurance entities
17
Common equity Tier 1 capital
38
Additional Tier 1 capital
Tier 2 capital and other TLAC
53
liabilities
Investments in the capital of banking,financial and insurance entities thatare outside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)18
Common equity Tier 1 capital
39
Additional Tier 1 capital
Tier 2 capital and other TLAC
54
liabilities
Investments in the other TLAC
liabilities of banking,financial andinsurance entities that are outside
the scope of regulatory
consolidation, where the bank does
54a
not own more than 10% of theissued common share capital of theentity: amount previously
designated for the 5% threshold butthat no longer meets the conditions
Non-significant investments in thecapital and other TLAC liabilities ofother financials that are below the72
thresholds for deduction (before risk
weighting)Significant investments in the capitalof banking, financial and insurance
entities that are outside the scope of
regulatory consolidation, net of eligible
short positions
Amount exceeding the 10%
19threshold on specified items
Amount exceeding the 15%
23
threshold on specified items
40
Additional Tier 1 capital
Tier 2 capital and other TLAC
55
liabilities
Significant investments in thecommon stock of financials that are73
below the thresholds for deduction(before risk weighting)
16
37
52

267

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2020

As of March
31, 2019¥4,855
2,185
1,700
970

¥9,026
4,792
2,900
1,333

-

-

-

-

-

-

456,706

540,695

-

-

-

-

1,349

/

455,356

540,695

312,020

306,595

-

-

-

-

43,95056,500--268,070

250,095

Remarks

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

7. Non-Controlling Interests(1) Consolidated Balance Sheet
Ref.

7(Millions of yen)

Consolidated balance sheet items

As of March
31, 2020

As of March
31, 2019

Non-Controlling interests¥109,662¥444,525(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Common share capital issued by
5 subsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1
instruments plus related stock surplus
30-31ab-32
issued by special purpose vehicles
and other equivalent entities
Additional Tier 1 instruments issued by
34-35 subsidiaries and held by third parties(amount allowed in group AT1)
Tier 2 instruments plus related stock
46 surplus issued by special purpose
vehicles and other equivalent entities
Tier 2 instruments issued by
48-49 subsidiaries and held by third parties(amount allowed in group Tier 2)(Millions of yen)
As of March
31, 2020

As of March
31, 2019¥7,549¥6,460After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

20,27728,502130,184

166,150

5,955

7,777

8. Other Capital Instruments(1) Consolidated Balance Sheet
Ref.

Consolidated balance sheet items

8-a
8-b

Borrowed money
Bonds and notes
Total

Remarks

Remarks

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)(Millions of yen)
As of March
31, 2020

As of March
31, 2019¥5,209,947
8,906,432¥14,116,380¥3,061,504
8,351,071¥11,412,575

Remarks

268

Reconciliation of regulatory capital to consolidated balance sheet

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalBasel III
template

Composition of capital disclosure

Directly issued qualifying additional
Tier 1 instruments plus related stock
32 surplus of which: classified asliabilities under applicable accounting
standards
Directly issued qualifying Tier 2
instruments plus related stock surplus
46
of which: classified as liabilities underapplicable accounting standards

269

Reconciliation of regulatory capital to consolidated balance sheet(Millions of yen)
As of March
31, 2020

As of March
31, 2019¥1,805,000¥1,570,000

1,215,858

1,002,257

Remarks

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Summary of Risk Management and Risk-weighted Assets (RWA)(1) Summary of Our Group’s Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 83 to 88 for a summary of our group’s risk profile and risk management policies, etc.
(2) Summary of RWA(A) OV1: Overview of Risk-weighted Assets (RWA)(Millions of yen)

a

b
RWA

Basel III
TemplateNo.

cdcapital requirements

As of March
31, 2020¥38,378,848

As of March
31, 2019¥37,656,623

As of March
31, 2020¥3,237,808

As of March
31, 2019¥3,177,419

1,943,907
34,895,880
1,539,061

1,738,523
34,352,032
1,566,067

155,5122,959,170
123,124

139,081
2,913,052
125,285

1
2
3

Credit risk (excluding counterparty credit risk)of which: standardized approach (SA)of which: internal rating-based (IRB) approachof which: significant investmentsof which: estimated residual value of lease transactions
others4
54,515,574

4,491,743

367,950

364,208

6

Counterparty credit risk (CCR)
of which: SA-CCR
of which: current exposure methodof which: expected positive exposure (EPE) methodof which: credit valuation adjustment (CVA) riskof which: central counterparty-related
Others

165,699
1,216,072
2,137,870
163,062
832,869

139,720
878,8452,457,535
190,997824,644

13,700102,437
171,029
13,04467,737

11,51873,961
196,602
15,27966,846

7

Equity positions in banking book under market-based approach

2,327,117

2,492,949

197,339

211,4028910Equity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach

5,104,213
588,916
93,0392,620,615
598,267
19,489431,577
49,9407,443

220,993
50,733
1,563

11

Settlement risk

12
13
14
15

Securitization exposures in banking bookof which: Securitisation IRB approach (SEC-IRBA) or internal assessment approach(IAA)of which: Securitisation external ratings-based approach (SEC-ERBA)
of which: Securitisation standardised approach (SEC-SA)of which: 1250% risk weight is applied

17,3801,050,808

2,705
1,050,204

1,462
84,064229
84,016

799,189242,645
8,973

735,081304,189
10,93363,935
19,411717

58,80624,335
874

16
17
18

Market riskof which: standardized approach (SA)of which: internal model approaches (IMA)

2,476,959

2,034,213

198,156

162,737

1,063,932
1,413,026

1,172,343
861,870

85,114
113,042

93,787
68,949

19
20
21
22

Operational riskof which: basic indicator approachof which: standardized approachof which: advanced measurement approach

3,355,977

3,236,495

268,478

258,919664,565
2,691,412

628,1102,608,385

53,165215,31250,248208,670

23

Exposures of specified items not subject to regulatory adjustments
Amounts included in RWA subject to phase-out arrangements
Floor adjustment
Total (after applying the scaling factor)

1,548,246¥62,141,217

1,209,277¥57,899,567

127,076¥4,971,297

99,743¥4,631,965

24
25

270

Overview of RWA

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) Credit Risk Weighted Assets by Asset Class and Ratings Segment(Billions of yen)
As of March 31, 2020

Internal ratings-based approach
Corporate, etc.
Corporate (except specialized
lending)
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Sovereign
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1Bank
Ratings A1-B2
Ratings C1-D3
Ratings E1-E2
Ratings E2R-H1
Specialized lending
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach
OthersStandardized approach
Equity investments in funds
Securitization exposures
CVA risk
Central counterparty-related
Total

As of March 31, 2019

EAD
¥198,839.2
182,320.4

RWA¥43,413.0
31,777.0

Risk
Weight(%)
21.83
17.42

EAD
¥188,866.1
171,471.5

RWA¥42,309.2
29,822.5

Risk
Weight(%)
22.40
17.39

93,791.9

29,262.6

31.19

87,608.9

27,339.1

31.20

70,774.5
21,307.8
1,004.3
705.2
81,438.2
81,340.6
95.8
1.7
0.0
6,852.8
6,327.0
524.7
0.0
0.9
237.4
10,528.8
8,403.2
618.7
1,506.7
3,599.3
2,809.8
789.4
2,390.5
5,226.3
2,647.1
4,669.0//¥211,381.7

14,921.1
12,738.3
1,326.2
276.9
792.7
722.0
67.8
2.8
0.0
1,480.7
1,136.0
344.2
0.1
0.3
240.8
3,324.1
2,241.0
496.6
586.5
6,270.8
3,707.2
2,563.6
2,040.8
3,431.4
6,112.0
1,050.8
2,137.8
163.0¥56,308.2

21.08
59.78
132.05
39.27
0.97
0.88
70.76
165.14
32.86
21.60
17.95
65.61
132.3232.85
101.40
31.57
26.66
80.26
38.92
174.22131.93324.7385.37
65.65
230.89
22.50
/
/
25.54

65,892.5
20,261.6
867.6
587.1
77,227.7
77,117.9
108.0
1.8
0.0
6,461.1
5,951.3
508.5
0.0
1.2
173.5
11,046.3
8,716.2
642.9
1,687.1
4,407.4
3,559.8
847.6
1,940.7
4,620.6
2,262.8
4,185.2//¥199,934.8

13,942.5
12,045.7
1,105.3
245.4
963.2
886.3
73.8
3.0
0.0
1,338.4
1,027.1
310.7
0.0
0.3
181.6
3,526.3
2,338.3
504.2
683.7
7,183.3
4,445.9
2,737.4
1,776.9
3,282.2
3,416.1
972.7
2,457.5
190.9¥52,628.8

21.15
59.45
127.39
41.81
1.24
1.14
68.33
169.08
40.96
20.71
17.25
61.10
153.4032.33
104.67
31.92
26.82
78.42
40.52
162.98124.89322.9591.56
71.03
150.96
23.24
/
/
24.99

Note1: "Specialized lending" is specialized lending exposure under supervisory slotting criteria.
Note2: "Equity investments in funds" is total of look-though approach, mandate-based approach, simple approach and fall-back approach.
Note3: "Equity investments in funds" and "Securitization exposures" as of March 31, 2019 are disclosed out of Internal ratings-based approach due to revision of FSA Notice No.20.

271

RWA by asset class and ratings segment

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Linkages between Financial Statements and Regulatory Exposures(A) LI1: Differences between Accounting and Regulatory Scopes of Consolidation and Mapping of Financial
Statement Categories with Regulatory Risk Categories(Millions of yen)a

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total assetsb

As of March 31, 2020def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥41,069,745
584,686
18,581,488¥41,069,745
584,686-¥18,581,488

2,243,161-

2,688,273
13,248,734
411,847
34,907,234
83,468,185
2,044,415

2,014,799
411,847
33,530,914
81,703,282
2,044,415

1,944,060gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,243,161---

7,871,551
1,097-

636,282
1,325,398
1,763,806-

13,248,734-

37,19150,921--

1,944,060---

5,206,121
1,103,622
636,139
846,782
32,493

1,406,740
1,103,622
173,648
258,870
17,4402,309,333
-

6,277
-

-

1,483,770
462,491
587,912
15,053

6,066,527

6,064,816

-

1,711

-

-

(424,446)¥214,659,077(424,435)¥169,960,395¥32,950,693¥3,733,474¥13,248,734(10)¥2,637,330

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

272

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

LI1-(Continued)(Millions of yen)ab

Carrying
values as
Carrying
reported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilities

As of March 31, 2020def
Carrying values of items:cSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥131,189,673
13,282,561
2,263,076

¥-

¥-

¥-

¥- ¥131,189,673
13,282,561
2,263,076

17,971,098-

17,971,098--

1,108,255-

1,108,255---

411,089
9,604,890
5,209,947
509,405
373,658
8,906,432
1,055,510-

7,391,816--

9,604,890-

411,089
5,209,947
509,405
373,658
8,906,432
1,055,510

1,619,151-

1,619,151---

6,111,195
75,1752,559
62,113-

165,027---

5,946,167
75,1752,559
62,113

944

-

-

-

-

944

-

637

-

-

-

-

637

6,443
27,851

1,770
-

-

-

-

4,672
27,851

18,672----

18,672

2,509
53,150

-

-

-

-

2,509
53,15062,695----62,695

6,066,527¥205,995,229¥1,770¥28,255,349¥-

6,066,527¥9,604,890 ¥175,525,035

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

273

Linkages between Financial Statements and Regulatory Exposures2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Millions of yen)a

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under
Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total assetsb

As of March 31, 2019def
Carrying values of items:cCarrying
Carrying
values as
valuesreported inunderpublished scope offinancial regulatory
statements consolidation

Subject tocreditrisk
framework¥45,108,602
648,254
12,997,628¥45,108,602
648,254-¥12,997,628

2,578,133-

2,828,959
12,043,608
351,889
29,774,489
78,456,935
1,993,668

2,205,129
351,889
28,542,167
77,017,297
1,993,668

1,328,227gSubject tothe market
risk
framework

Not subject tocapitalrequirements
or subject todeductionfrom capital

¥-

¥-

¥-

2,578,133---

6,074,759
456-

589,2111,168,312
1,439,181-

12,043,608-

34,61964,008--

1,328,227---

4,229,589
1,037,006
620,231
982,804
37,9601,465,349
1,037,006
167,749
300,661
1,393

1,557,007
-

6,724
-

-

1,200,507
452,482
682,142
36,566

6,062,053

6,060,193

7

1,852

-

-

(287,815)¥200,792,226(287,794)¥164,611,568¥24,536,221¥3,205,281¥12,043,608(20)¥2,470,306

Subject tocounterparty Subject to thecredit risk securitization
framework
framework

274

Linkages between Financial Statements and Regulatory Exposures2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

LI1-(Continued)(Millions of yen)ab

Carrying
values as
Carrying
reported in values underpublished scope offinancial regulatory
statements consolidation
Liabilities
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received under
Securities Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Accounts
Derivatives other than for trading
liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for variable compensation
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for possible losses onsales of loans
Reserve for contingencies
Reserve for reimbursement of deposits
Reserve for reimbursement ofdebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total liabilities

As of March 31, 2019def
Carrying values of items:cSubject tocreditrisk
framework

Subject tocounterparty Subject to thecredit risk securitization
framework
frameworkg
Not subject tocapitalrequirements
or subject todeductionfrom capital

Subject tothe market
risk
framework¥124,311,025
13,338,571
2,841,931

¥-

¥-

¥-

¥- ¥124,311,025
13,338,571
2,841,931

14,640,439-

14,640,439--

1,484,584-

1,484,584---

941,181
8,325,520
3,061,504
669,578355,539
8,351,071
1,102,073-

5,745,580--

8,325,520-

941,181
3,061,504
669,578355,539
8,351,071
1,102,073

1,165,602-

1,165,602---

4,512,325
68,1172,867
60,873-55,033---

4,457,291
68,1172,867
60,873

1,389

-

-

-

-

1,389

-

630

-

-

-

-

630

4,910
19,068

100
-

-

-

-

4,809
19,06825,566----25,566

2,473
185,974

-

-

-

-

2,473
185,974

63,315----63,315

6,062,053¥191,598,188¥100¥23,091,239¥-

6,062,053¥8,325,520 ¥165,926,908

Notes: 1. Since the scope of accounting consolidation and that of regulatory consolidation are the same, the column (a) and (b) have been combined.
2. Market risk includes foreign exchange risk and commodities risk in the banking book, but only those items in the trading book are recorded.

275

Linkages between Financial Statements and Regulatory Exposures2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) LI2: Main Sources of Differences between Regulatory Exposure Amounts and Carrying Values in Financial
Statements(Millions of yen)

a

Total
1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

As of March 31, 2020bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥212,021,746¥169,960,395¥32,950,693¥3,733,474¥13,248,734

30,470,193

1,770

28,255,349-

9,604,890

181,551,552
18,475,125

169,958,625
17,539,554

4,695,343-

3,733,474
935,570

3,643,844-

509,631509,631---2,193,674
14,196,805
37,306¥216,964,093(442,430)¥187,565,380

2,193,674
14,196,805¥21,085,824¥4,669,045¥3,643,844

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

(Millions of yen)

a

Total
1
2
3
4
5
6
7
8
9

Asset carrying value amount under scope of
regulatory consolidation (as per template LI1)
Liabilities carrying value amount under regulatory
scope of consolidation (as per template LI1)
Total net amount under regulatory scope of consolidation
Off-balance sheet amounts
Differences due to consideration of provision forloan losses and write-offs
Differences due to derivative transactions, etc.
Differences due to repurchase transactions
Other differences
Exposure amounts considered for regulatory purposes

As of March 31, 2019bcde
Items subject to:Counterparty
credit risk Securitization Market risk
Credit risk
framework
framework
framework
framework¥198,321,920¥164,611,568¥24,536,221¥3,205,281¥12,043,608

25,671,280

100

23,091,239-

8,325,520

172,650,640
18,704,303

164,611,467
17,707,842

1,444,982-

3,205,281
996,461

3,718,088-

372,837

372,837---

1,818,614
11,473,212(21,575)¥204,998,031(350,755)¥182,341,391

1,818,614
11,473,212¥14,736,809¥4,201,743¥3,718,088

Notes: 1. Column (a) is not necessarily equal to the sum of columns (b) to (e) due to assets being riskweighted more than once.
2. Differences between regulatory exposure amounts and carrying values in consolidated financial statements and the main sources of the differences are as follows.
･ Off-balance sheet amounts correspond to the differences produced mainly by adding exposures to undrawn commitments and by multiplying customer liabilities for
acceptances and guarantees by the credit conversion factor (CCF) assigned to off-balance sheet items under the regulatory capital requirements.
･ Differences due to consideration of provision for loan losses, and write-offs are produced mainly by adding general provisions for loan losses, specific provisions for loan
losses and partial direct bad debt write-offs to those assets subject to the advanced internal ratings-based approach.
･ Differences due to derivative transactions, etc. are produced mainly by incorporating future market value fluctuations and the effect of netting into regulatory exposureamounts. Derivative transactions, etc. include long-settlement transactions.
･ Differences due to repurchase transactions are mainly produced by adding the exposure amounts related to assets pledged as collateral and considering the effect of
netting and collateral.
･ Other differences are produced mainly by considering the offsetting of deferred tax assets against deferred tax liabilities and the regulatory recognized effectiveness ofhedging and making regulatory prudential adjustments.

276

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Credit Risk
(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
See pages 114 to 117 for a summary of our credit risk profile and credit risk management policies, etc.
(2) Summary of Provision for Loan Losses and Write-offs
See page 116 for a summary of provision for loan losses and write-offs.
(3) Quantitative Disclosure on Credit Risk
Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from theamount of credit risk exposures below.
(A) CR1: Credit Quality of Assets(Millions of yen)

As of March 31, 2020abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve
1
2
3
4
5
6
7
8

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dNet values(a+b-c)¥730,173
9,071
8,646
747,891¥80,974,338
28,171,768
44,692,354
153,838,461¥386,006
3,273
389,280¥81,318,505
28,180,839
44,697,726
154,197,072

19,68325,42845,111

6,047,710
26,659,617
32,707,327

30,80830,8086,036,585
26,685,045
32,721,631¥793,003 ¥186,545,789¥420,088 ¥186,918,703

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses(Millions of yen)

As of March 31, 2019abcGross carrying values of
NonDefaulted
defaulted
exposures
exposures
Reserve
1
2
3
4
5
6
7
8

On-balance sheet exposures
Loans
Debt securities
Other on-balance sheet debt exposures
Total on-balance sheet exposures (1+2+3)
Off-balance sheet exposures
Guarantees
Commitments
Total off-balance sheet exposures (5+6)
Total
Total assets (4+7)

dNet values(a+b-c)¥626,537
5,616
8,724
640,879¥76,391,257
22,665,487
49,282,616
148,339,361¥250,708
2,506
253,215¥76,767,086
22,671,103
49,288,834
148,727,025

18,741
15,21630,1686,043,311
26,990,138
31,247,288

30,71730,717

6,031,335
27,005,354
33,036,689¥674,836 ¥181,372,812¥283,933 ¥181,763,715

Notes: 1. Other on-balance sheet debt exposures include deposits, call loans, bills purchased, other debt purchased, money held in trust and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.
3. Reserve corresponds to the amount of reserves for possible loan losses

277

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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) Breakdown of Credit Risk Exposures(a) Breakdown by Geographical Area

(Billions of yen)

As of March 31, 2020
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Domestic¥67,436.7 ¥18,415.0
Overseas
45,712.5
12,818.0
Asia
11,547.1
2,185.8
Central and South America
4,026.1
69.4
North America
16,646.2
8,935.1
Eastern Europe
406.4Western Europe
8,790.0
1,170.4
Other areas
4,296.5
457.1
Total¥113,149.3 ¥31,233.0
Standardized approach portion//

As of March 31, 2019

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥36,438.8 ¥122,290.6 ¥65,407.9 ¥18,914.7
11,083.1
69,613.8
43,521.4
7,804.6
2,308.8
16,041.8
11,448.8
2,068.7
1,324.7
5,420.3
3,421.1
69.0
5,700.6
31,282.0
15,596.8
2,811.5
7.5
414.0
338.1
1,491.9
11,452.4
8,700.7
2,199.6
249.3
5,003.0
4,015.7
655.4¥47,522.0 ¥191,904.5 ¥108,929.4 ¥26,719.3///
3,744.5

OthersTotal¥40,872 ¥125,194.7
10,834.2
62,160.3
1,812.5
15,330.0
1,058.2
4,548.4
5,624.2
24,032.6
6.8
345.0
1,983.9
12,884.3
348.5
5,019.7¥51,706.3 ¥187,355.1/
3,446.8

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA
2. Exposure to non-Japanese residents is included in Overseas.
3. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.
4. Reclassification of Geographical Area type has been made on the above table as of March 31,2019 for consistency with current figures.

(b) Breakdown by Industry(Billions of yen)

As of March 31, 2020
Loans,
commitments
and other
non-derivative
off-balancesheet
exposures Securities
Manufacturing¥25,758.1¥1,666.1
Construction
1,961.4
205.9
Real estate
11,204.0
986.1
Service industries
6,032.6
390.3
Wholesale and retail
10,350.8
720.8
Finance and insurance
17,394.2
4,918.6
Individuals
11,216.9
Other industries
27,787.4
9,408.5
Japanese Government; Bank of Japan
1,443.5
12,936.3
Total¥113,149.3 ¥31,233.0
Standardized approach portion//

As of March 31, 2019

Loans,
commitments
and other
non-derivative
off-balancesheet
OthersTotal
exposures Securities¥496.4 ¥27,920.7 ¥24,675.1¥1,961.9
9.1
2,176.6
1,756.0
230.3
5.1
12,195.4
10,428.8
875.3
721.9
7,144.9
5,885.0418.9
553.0
11,624.8
10,295.8
702.8
11,332.9
33,645.8
16,254.0
2,957.2
7.6
11,224.6
11,684.0
2,650.5
39,846.5
26,385.9
6,574.3
46,124.9
31,745.0
1,564.4
12,998.3¥47,522.0 ¥191,904.5 ¥108,929.4 ¥26,719.3///
3,744.5

OthersTotal¥406.5 ¥27,043.6
5.3
1,991.7
5.8
11,310.0
34.4
6,338.3
699.7
11,698.4
11,432.5
30,643.8
10.2
11,694.3
2,728.2
35,688.5
50,946.2
36,383.5¥51,706.3 ¥187,355.1/
3,446.8

Notes: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA.
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.
3. Reclassification of Industry type has been made on the above table as of March 31,2019 for consistency with current figures.

278

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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)(c) Breakdown by Residual Contractual Maturity
As of March 31, 2020
As of March 31, 2019
Loans,
Loans,
commitments
commitments
and otherand other
non-derivative
non-derivative
off-balanceoff-balancesheet
sheet
exposures Securities
OthersTotal
exposures Securities
Others
Total
Less than one year
¥28,526.3¥9,030.5¥6,564.8 ¥44,121.7 ¥28,047.5 ¥12,158.2¥7,605.5 ¥47,811.3
From one year to less than three years
31,566.8
5,548.0
12.0
37,126.9
28,129.7
4,153.6
17.4
32,300.8
From three years to less than five years
23,188.8
3,980.3
5.9
27,175.0
23,229.0
1,252.1
13.8
24,495.0
Five years or more
29,260.8
9,475.9
108.6
38,845.5
29,160.9
4,980.4
38.1
34,179.5
44,635.2
48,568.3
Other than above
606.5
3,198.1
40,830.6
362.1
4,174.8
44,031.3
Total¥113,149.3 ¥31,233.0 ¥47,522.0 ¥191,904.5 ¥108,929.4 ¥26,719.3 ¥51,706.3 ¥187,355.1
Standardized approach portion
/
/
/
/
/
/
3,744.5
3,446.8
Notes: 1. Standardize1. d approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the
purpose of calculating credit RWA
2. Others include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets and other assets, etc.

(C) Exposure to Obligors Claims of Whom Meet the Stipulations in the Article 4 Paragraph 2, 3 or 4 of theOrdinance for Enforcement of the Act on Emergency Measures for the Revitalization of the Financial Functions
Enacted in Japan(a) Breakdown by Geographical Area

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other areas
Total
Standardized approach portion

As of March 31, 2020
Exposure
Reserve
Write-offs¥652.7¥147.8
¥18.4
229.7
77.4
3.2
67.6
28.0
0.4
25.9
4.5
0.1
70.9
5.9
2.5
32.7
12.6
0.0
32.3
26.3
0.0
¥882.5¥225.3
¥21.6
6.3
1.3
0.2

(Billions of yen)

As of March 31, 2019
Exposure
Reserve
Write-offs¥554.2¥110.0
¥15.9
211.0
61.0
9.4
64.7
28.3
8.9
33.2
2.9
0.5
78.1
19.5
0.2
0.2
22.2
4.0
0.0
12.3
5.7
¥765.2¥171.0
¥25.4
8.8
3.0
0.9

Note: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA
2. Reclassification of Geographical Area type has been made on the above table as of March 31,2019 for consistency with current figures.

(b) Breakdown by Industry

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Standardized approach portion(Billions of yen)

As of March 31, 2020
Exposure
Reserve
Write-offs¥214.1
¥73.1
¥2.1
24.1
7.0
0.2
58.4
4.0
0.1
114.4
39.5
2.4
191.3
46.6
11.6
26.8
4.2
74.1
9.3
2.6
178.9
41.4
2.3
¥882.5¥225.3
¥21.6
6.3
1.3
0.2

As of March 31, 2019
Exposure
Reserve
Write-offs¥151.3
¥48.2
¥3.2
21.5
6.3
9.4
51.6
2.2
0.0
92.9
15.3
0.9
148.8
29.3
8.3
26.4
3.9
0.0
78.5
10.2
3.0
193.9
55.3
0.4
¥765.2¥171.0
¥25.4
8.8
3.0
0.9

Note: 1. Standardized approach portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for the purposeof calculating credit RWA.
2. Reclassification of Industry type has been made on the above table as of March 31,2019 for consistency with current figures.

279

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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) Exposure by Past Due Period(Billions of yen)

As of March 31, 2020
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥364.1¥30.7¥17.4¥121.6

Total¥533.9Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

(Billions of yen)

As of March 31, 2019
From one month to less From two months to lessthan two months
than three months
Three months or more
Less than one month¥385.6¥117.3¥24.7¥119.5

Total¥647.3

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions as well as high risk claims stipulated in the Article 4 paragraph 3.

(E) Exposure to Obligors Claims of Whom have been Restructured for the Purpose of Corporate Restructuring or
Supporting the Customer(Billions of yen)

As of March 31, 2020

Exposure¥332.1

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥297.4

Others¥34.6

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

(Billions of yen)

As of March 31, 2019

Exposure¥263.2

Amount of exposure for which loss
reserve has increased as a result of
restructuring of lending terms¥225.4

Others¥37.7

Note: Excluding claims under bankruptcy or substantial bankruptcy stipulated in the Article 4 paragraph 2 of the Ordinance for Enforcement of the Act on Emergency Measures for
the Revitalization of the Financial Functions, high risk claims stipulated in the Article 4 paragraph 3 or claims overdue for more than three months stipulated in the Article 4paragraph 4.

280

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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(F) CR2: Changes in Defaulted Loans and Debt Securities(Millions of yen)No.
1

Exposure
Defaulted loans and debt securities as of March 31, 2019

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

56¥640,879

Defaulted

320,167

Returned to non-defaulted status

64,729Amounts written off

28,448Other changes(119,976)

Defaulted loans and debt securities as of March 31, 2020
(1+2-3-4+5)¥747,891

Note: Other changes corresponds to the amount of variation in defaulted exposures arising from debt recovery and additional credit to defaulted obligors, etc.

(Millions of yen)No.
1

Exposure
Defaulted loans and debt securities as of March 31, 2018

2
3
4

Breakdown of changes in loans
and debt securities during thisreporting period

56

224,717

Returned to non-defaulted status

85,190

Amounts written off

33,999Other changes
Defaulted loans and debt securities as of March 31, 2019
(1+2-3-4+5)

Note: Other changes corresponds to the amount of variation in defaulted exposures arising from debt recovery and additional credit to defaulted obligors, etc.

281

Quantitative Disclosure on Credit Risk

¥653,659

Defaulted(118,308)¥640,879

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(4) Credit Risk under Internal Ratings-Based (IRB) Approach(i) Summary of Internal Ratings-Based (IRB) Approach
We have adopted Advanced Internal Ratings-Based (AIRB) Approach as a method to calculate credit risk weighted
assets (RWA) since March 31, 2009. The following business units have adopted AIRB approach:Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Credit Guarantee Co., Ltd.,
Mizuho Trust Realty Company Limited, Mizuho Bank (China), Mizuho Bank (USA), Ltd., Mizuho Bank Europe N.V., andMizuho Capital Markets LLC., Mizuho Markets Cayman LP., and Mizuho Markets Americas LLC.
Note: Special purpose companies (SPCs) controlled by the above companies have also adopted the AIRB approach due to theirbusiness operations integrated with their parent companies.

The application scope of AIRB is determined through taking into account the importance for each business unit, such as
the ratio of its credit RWA to that of the entire group. AIRB is generally applied to those assets held by the business
units that have adopted AIRB except for some asset classes considered immaterial for the purpose of calculating credit
RWA .In addition, AIRB is used for all equity exposures regardless of what approach the business unit has adopted.
With respect to credit RWA exposures under Regarded-Method, AIRB is used for those of which the look-throughapproach is applied except for cases where it is difficult to accurately calculate credit RWA regarding their underlying
assets based on the IRB Approach and therefore reliability of credit RWA cannot be secured. The standardized
approach will be applied to any of those business units and asset classes that do not meet the above conditions.
(ii) Summary of Our Internal Rating System
See pages 114 to 116 for a summary of our internal rating system and rating assignment procedures.

Estimation of parameters and validation
We use our own estimates for the parameters indicated below in the calculation of credit RWA under the Basel
Framework. We generally validate the parameters by backtesting or other methods on an annual basis. Methods of
estimation and validation as well as results are approved by the Chief Risk Officer.
Probability of default (likelihood of default of an obligor over a period of one year)
PD
LGD
Loss given default
EAD
Exposure at default
The definition of default conforms to the Notice issued by Japan’s Financial Services Agency.

Details of Estimates:
We estimate PD of corporate, sovereign and bank exposures per obligor rating, and that of retail exposures per pool
allocations. In making estimations, we make conservative adjustments such as accounting for estimation error on thelong-term average of internal default records. We supplement estimations for low default portfolios with external data.
We apply the regulatory floor PD (0.03%) to A1-rated obligors in the measurement of credit RWA, except for sovereign
exposures. The estimated parameters in almost all the PD categories such as obligor rating or pool allocations
exceeded actual defaults in the last three years. The differences stemmed from such reasons as: actual defaults in thelast few years were lower than the long-term average of the defaults over the entire period, which was the basis for ourestimation; conservative adjustments have been made to estimated parameters.
We estimate LGD based on obligor classifications in our self-assessments or pool allocations, and protection coverage.
For LGD per obligor classifications, we estimate LGD under normal economic circumstances based on prior defaulted
obligor data, making adjustments in consideration of periods of economic downturn using stochastic methods. Ourestimation is based on validation of the time between the default event and the closure of the exposure as well as LGD
for low default portfolios etc. With regard to protection, we estimate LGD per type of collateral using some external data.
We estimate EAD based on prior defaulted obligor data.
(iii) Asset Class-based EAD Ratios to the Total EAD by Credit RWA Calculation Approach
Internal Ratings-based Approach
Corporate
RetailEquities
Purchase Receivables
OthersStandardized Approach
Total

As of March 31, 2020
98.18%
87.78%
5.70%
1.95%
1.45%
1.29%
1.81%
100.00%

As of March 31, 201998.08%
86.81%
6.12%
2.44%
1.62%
1.07%
1.91%
100.00%Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. As for any portfolio to which the standardized approach is applied, exposure instead of EAD is used for calculation.

282

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(iv) Quantitative Disclosure on Credit Risk under Internal Ratings-based Approach(A) CR6: IRB - Credit Risk Exposures by Portfolio and PD Range(Millions of yen, %, number in the thousands, year)

PD scale
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

a
b
c
d
e
f
g
h
Original
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2020

Sovereign¥66,112,950¥284,237
78.99 ¥67,508,131
0.00 to <0.15
0.15 to <0.25
2,460
2,980
0.25 to <0.50
0.50 to <0.75
131,986
4,897
75.00
87,5300.75 to <2.50
64,275
5,125
75.00
1,011
2.50 to <10.00
4,385
1,670
10.00 to <100.00
00
100.00 (Default)
66,316,058
294,260
78.85 67,601,324
Sub-total
Banks
3,973,105
698,395
69.81
4,864,573
0.00 to <0.15
0.15 to <0.25
173,975
33,42372.06
235,649
0.25 to <0.50
0.50 to <0.75
223,190
45,001
65.04
233,3510.75 to <2.50
63,182
19,94874.85
56,7842.50 to <10.00
10.00 to <100.00
991
991
100.00 (Default)
4,434,445
796,76869.76
5,391,351
Sub-total
Corporate (except SME and specialized lending)
44,317,396 24,501,726
73.90 63,304,761
0.00 to <0.15
0.15 to <0.25
7,892,615
2,151,506
73.83
9,062,547
0.25 to <0.50
0.50 to <0.75
5,063,138
1,051,317
75.99
5,676,328
0.75 to <2.50
1,969,104
338,000
69.57
1,619,745
2.50 to <10.00
491,111120,282
79.77
433,252
10.00 to <100.00
533,830
39,705
74.42
538,661
100.00 (Default)
60,267,197 28,202,538
73.95 80,635,297
Sub-total
SME
210,259
31,48575.08
233,3120.00 to <0.15
0.15 to <0.25
1,473,199
67,14574.51
1,500,923
0.25 to <0.50
0.50 to <0.75
1,248,134
39,86972.70
1,245,572
0.75 to <2.50
542,492
23,79778.15
550,519
2.50 to <10.00
182,839
1,633
79.07
175,400
10.00 to <100.00
139,341
569
78.49
131,649
100.00 (Default)
3,796,267
164,499
74.77
3,837,379
Sub-total
Specialized Lending
3,321,192
362,71376.59
3,076,754
0.00 to <0.15
0.15 to <0.25
700,504
293,804
76.59
791,4890.25 to <0.50
0.50 to <0.75
429,914169,232
75.79
348,6930.75 to <2.50
70,7095,836
90.14
48,8882.50 to <10.00
41,074
5,861
77.37
18,69710.00 to <100.00
28,492240
99.99
27,606100.00 (Default)
4,591,887
837,68876.54
4,312,130
Sub-total
Equities (PD/LGD approach)
2,396,268
2,396,268
0.00 to <0.15
0.15 to <0.25
97,112
97,1120.25 to <0.50
0.50 to <0.75
28,01328,0130.75 to <2.50
47,27247,2722.50 to <10.00
2,208
2,208
10.00 to <100.00
4,801
4,801
100.00 (Default)¥- ¥2,575,676¥2,575,676
Sub-total

283

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.33
1.21
3.25
14.88
100.00
0.00

0.2
0.0
0.0
0.0
0.0
0.0
0.3

37.86
32.66
37.83
37.83
34.49
96.38
37.85

1.7
4.4
1.0
1.4
1.1
1.0
1.7

¥542,559
1,680
57,127
1,000
2,623
0
604,991

0.80
56.38
65.26
98.87
157.03
31.00
0.89

¥776
3
402
12
85
0
1,280

¥/
/
/
/
/
/
/
/
1,133

0.05
0.38
0.99
3.06
100.00
0.16

0.3
0.0
0.0
0.0
0.0
0.5

37.61
36.96
36.65
40.51
96.38
37.58

1.6
1.6
0.9
2.2
5.0
1.6

745,059
95,667
153,226
66,961307
1,061,223

15.31
40.59
65.66
117.92
30.99
19.68

958
295
844
705
931
3,735

/
/
/
/
/
/
/
/
3,307

0.06
0.35
1.14
3.68
14.88
100.00
0.99

7.7
8.7
4.7
247.7
3.7
0.6
273.2

37.84
33.24
32.19
31.73
29.62
40.31
36.78

2.4
2.5
2.9
2.9
2.5
2.5
2.5

12,346,249
3,991,325
4,065,920
1,628,857
638,624
201,350
22,872,327

19.50
44.04
71.62
100.56147.4037.37
28.36

15,826
10,841
20,961
19,03919,109201,042286,822

/
/
/
/
/
/
/
/
253,974

0.08
0.37
1.13
3.23
14.88
100.00
5.09

0.0
7.1
5.6
89.0
1.7
0.8
104.5

34.11
24.71
21.95
21.90
18.57
37.19
24.13

3.0
3.1
3.3
3.6
3.3
2.3
3.2

46,542456,313514,452
305,964
137,401
41,547
1,502,221

19.94
30.40
41.30
55.57
78.33
31.55
39.14

63
1,370
3,092
3,939
4,851
45,64458,962

/
/
/
/
/
/
/
/
52,209

0.08
0.37
0.92
3.61
14.88
100.00
0.94

0.5
0.1
0.0
0.0
0.0
0.0
0.7

34.35
38.30
39.15
37.31
37.83
60.41
35.68

4.3
4.2
4.0
3.8
4.2
4.3
4.2

867,321528,996328,763
61,26437,678
14,698
1,838,722

28.18
66.83
94.28
125.31201.52
53.24
42.64

855
1,132
1,255
661
1,053
15,501
20,460

/
/
/
/
/
/
/
/
18,116

0.04
0.33
1.16
5.68
14.88
100.00
0.37

1.0
0.6
0.2
0.0
0.0
0.1
2.1

90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
2,405,221
5.0
164,235
5.0
74,961
5.0
205,930
5.0
14,294
5.0
54,016
5.0 ¥2,918,659

100.37169.11
267.58435.62647.35
1,125.00
113.31

/
/
/
/
/
/
/
/
¥/

/
/
/
/
/
/
/
/
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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CR6-(Continued)(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
k
l
Original
OffEADon-balance balance
post CRM
RWA
sheet
sheet Average
andAverage Number Averagedensitygross exposures CCF
PDofLGD Average
postProvisions
PD scale
exposure pre CCF
(%)
(%)
EL
CCF
(%)
obligors(%)
maturity RWA
As of March 31, 2020
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,180,942¥243,041
77.54 ¥2,369,298
0.06
0.7
38.12
1.4
¥299,332
12.63
¥581
¥/
1 0.00 to <0.15/
2 0.15 to <0.25
187,781
25,22380.65
208,126
0.32
0.2
37.83
1.9
87,92342.24
258/
3 0.25 to <0.50/
4 0.50 to <0.75
61,612
3,297
85.45
64,430
1.20
0.0
37.83
2.6
52,91782.13
294/
5 0.75 to <2.50
23,611
10,83886.30
32,966
3.23
0.0
37.83
1.8
33,954102.99403/
6 2.50 to <10.00
753
753
14.88
0.0
37.83
0.1
1,237
164.3042/
7 10.00 to <100.00
917
917
100.00
0.0
45.30
0.9
474
51.66
377
/
8 100.00 (Default)
2,455,620
282,399
78.25
2,676,492
0.19
1.0
38.09
1.5
475,839
17.77
1,959
1,734
9 Sub-total
Purchased receivables (Retail) - Default Risk Equivalent/
1 0.00 to <0.15/
2 0.15 to <0.25/
3 0.25 to <0.50/
4 0.50 to <0.75/
5 0.75 to <2.50/
6 2.50 to <10.00/
7 10.00 to <100.00/
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
1,100,298
36,485100.001,136,783
0.06
0.1
37.83
136,42212.00
295/
1 0.00 to <0.15/
2 0.15 to <0.25
89,397
11,380100.00100,777
0.32
0.0
37.67
34,19933.93
124/
3 0.25 to <0.50/
4 0.50 to <0.75
42,22942,229
1.52
0.0
37.83
32,24276.35
243/
5 0.75 to <2.50
42,26442,264
3.24
0.0
37.83
39,99894.63
519/
6 2.50 to <10.00
843
843
14.88
0.0
37.83
1,451
171.9847/
7 10.00 to <100.00
26,636
26,636100.000.0
51.23
15,21857.13
12,429/8 100.00 (Default)
1,301,669
47,865100.001,349,534
2.21
0.1
38.08
259,532
19.23
13,659/9 Sub-total
Retail – qualifying revolving retail exposures (QRRE)//
1 0.00 to <0.15
2
0.15
0.0
72.62
/
0
6.42
0
/
2 0.15 to <0.25
30
0.33
0.7
79.32
/
3
12.90
0
/
3 0.25 to <0.50
27
0.73
1.6
79.32
/
6
23.94
0
/
4 0.50 to <0.75
227,008
842,372
13.74
342,771
2.38
571.9
79.31
/
198,228
57.83
6,472
/
5 0.75 to <2.50
167,858
875,085
7.89
236,8444.24
2,044.5
79.32/
201,203
84.95
7,976
/
6 2.50 to <10.00
33,264
17,65329.19
38,417
18.69
207.4
79.32
/
68,507178.32
5,696/
7 10.00 to <100.00
507
1,239
10.86
639
100.00
1.9
72.11
/
572
89.50
415
/
8 100.00 (Default)
428,639
1,736,351
10.94
618,733
4.20
2,828.2
79.31/
468,52275.72
20,561
18,2069 Sub-total
Retail – Residential mortgage
1,802,107
1,837,359
0.08
217.3
28.77
/
107,5285.85
443/
1 0.00 to <0.15
1,069,410
1,071,224
0.20
100.6
31.92
/
138,852
12.96
696/
2 0.15 to <0.25
1,843,518
1,900,321
0.34
217.0
32.11
/
360,340
18.96
2,077
/
3 0.25 to <0.50
1,968,725
76,43996.76
1,947,361
0.63
278.1
34.38
/
611,736
31.41
4,210
/
4 0.50 to <0.75
1,458,221415
100.001,459,858
1.07
183.3
34.82
/
657,889
45.06
5,371
/
5 0.75 to <2.50
100,8612,131
100.00103,246
9.29
14.3
36.29
/
165,152
159.953,483/
6 2.50 to <10.00
20,2481,560
100.0021,814
50.21
3.3
39.32
/
39,824182.554,305/
7 10.00 to <100.00
60,942
1,178
100.0062,104100.005.0
44.12/
32,82952.86
24,779/8 100.00 (Default)
8,324,037
81,72496.97
8,403,291
1.43
1,019.2
32.51/
2,114,155
25.15
45,36840,1739 Sub-total
Other retail19
231,398
0.06
32.9
47.27
/
17,7187.65
69/
1 0.00 to <0.15
13
63,248
0.17
3.5
46.22
/
10,94517.30
52/
2 0.15 to <0.25
114,025
104
90.38
114,254
0.34
3.2
48.19
/
31,63427.68
188/
3 0.25 to <0.50
19,38984
75.00
19,518
0.65
0.9
18.72
/
3,047
15.61
24
/
4 0.50 to <0.75
890,961
3,053
77.88
838,185
1.34
102.7
44.61
/
396,337
47.28
4,595
/
5 0.75 to <2.50
329,655
1,551
64.73
147,700
6.50
16.0
18.32
/
39,839
26.97
1,331
/
6 2.50 to <10.00
77,356
7,855
53.54
40,363
17.97
14.0
34.30
/
28,552
70.73
2,696
/
7 10.00 to <100.00
64,1902,178
96.24
50,786100.002.6
47.82/
24,69248.61
22,313/8 100.00 (Default)
1,495,612
14,82866.38
1,505,455
5.29
176.0
42.27
/
552,767
36.71
31,271
27,6909 Sub-total
70.72 ¥178,906,668
0.73
4,406.4
37.7
2.2 ¥34,668,964
19.37 ¥484,080 ¥416,548
Total (all portfolios) ¥155,987,112 ¥32,458,925
Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.

284

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %, number in the thousands, year)

PD scale
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

a
b
c
d
e
f
g
h
Original
Offon-balance balance
EAD
sheet
sheet Average post CRM Average Number Averagegross exposures CCF
and
PD
of
LGD Average
exposure pre CCF(%)
post-CCF(%)
obligors(%)
maturity
As of March 31, 2019

Sovereign¥66,209,608¥413,709
79.43 ¥67,797,332
0.00 to <0.15
0.15 to <0.25
22,190
1,474
75.00
11,1240.25 to <0.50
0.50 to <0.75
138,214
4,995
75.00
85,5050.75 to <2.50
61,800
5,173
75.00
1,489
2.50 to <10.00
16,436
1,428
10.00 to <100.00
2
2
100.00 (Default)
66,448,251
425,35379.31 67,896,882
Sub-total
Banks
3,592,231
725,966
74.88
4,596,204
0.00 to <0.15
0.15 to <0.25
237,686
40,584
60.92
278,5220.25 to <0.50
0.50 to <0.75
219,123
29,303
84.78
216,764
0.75 to <2.50
21,103
22,332
74.21
21,9942.50 to <10.00
10.00 to <100.00
1,027
1,027
100.00 (Default)
4,071,173
818,186
74.53
5,114,513
Sub-total
Corporate (except SME and specialized lending)
40,813,958 24,147,753
73.81 59,581,637
0.00 to <0.15
0.15 to <0.25
7,720,193
2,298,649
74.72
8,953,178
0.25 to <0.50
0.50 to <0.75
4,813,838
1,175,144
75.42
5,206,907
0.75 to <2.50
1,460,606
388,260
66.82
1,284,345
2.50 to <10.00
528,967
156,905
78.38
439,761
10.00 to <100.00
427,003
27,531
75.69
428,303100.00 (Default)
55,764,567 28,194,244
73.88 75,894,134
Sub-total
SME
203,291
31,16673.21
229,1780.00 to <0.15
0.15 to <0.25
1,375,014
60,68674.30
1,398,157
0.25 to <0.50
0.50 to <0.75
1,354,712
45,02277.81
1,353,538
0.75 to <2.50
489,549
13,80880.96
483,191
2.50 to <10.00
173,990
3,889
70.49
169,776
10.00 to <100.00
134,811926
76.62
126,842100.00 (Default)
3,731,369
155,49975.61
3,760,684
Sub-total
Specialized Lending
2,709,198
333,675
76.43
2,561,400
0.00 to <0.15
0.15 to <0.25
683,188291,892
77.22
695,724
0.25 to <0.50
0.50 to <0.75
383,404
81,83974.89
326,4390.75 to <2.50
77,2696,208
92.47
44,5332.50 to <10.00
24,9186,265
77.55
16,30310.00 to <100.00
29,225363
100.0027,175100.00 (Default)
3,907,204
720,24476.74
3,671,578
Sub-total
Equities (PD/LGD approach)
3,123,409
11,603100.003,135,013
0.00 to <0.15
0.15 to <0.25
119,829
119,829
0.25 to <0.50
0.50 to <0.75
70,861
70,8610.75 to <2.50
11,93011,9302.50 to <10.00
1,164
1,164
10.00 to <100.00
4,084
4,084
100.00 (Default)¥3,331,279¥11,603100.00 ¥3,342,883
Sub-total

285

Quantitative Disclosure on Credit Risk under IRB approach

i

j

k

l

RWA

RWA
density(%)

EL

Provisions

0.00
0.34
1.11
3.91
14.89
100.00
0.00

0.3
0.0
0.0
0.0
0.0
0.0
0.3

38.03
36.76
37.97
38.01
33.77
30.41
38.03

1.3
3.9
1.1
1.4
3.0
1.0
1.3

¥671,312
6,566
55,620
1,573
2,429
0
737,504

0.99
59.03
65.04
105.67170.03
38.64
1.08

¥930
13
361
22
71
0
1,400

¥/
/
/
/
/
/
/
/
870

0.05
0.36
1.09
3.07
100.00
0.15

0.3
0.1
0.0
0.0
0.0
0.5

37.91
36.95
37.02
41.05
96.59
37.84

1.5
1.6
0.9
2.6
5.0
1.5

688,280
107,045
154,486
26,736313
976,862

14.97
38.43
71.26
121.56
30.50
19.09

919
326
882
277
967
3,372

/
/
/
/
/
/
/
/
2,097

0.06
0.36
1.15
3.55
14.89
100.00
0.88

7.4
8.8
4.9
325.4
3.1
2.7
352.5

37.97
33.72
32.17
30.88
28.10
45.25
36.94

2.4
2.7
2.8
2.8
2.5
1.7
2.5

11,710,662
4,145,489
3,721,758
1,217,196
605,761
172,313
21,573,181

19.65
46.30
71.47
94.77
137.7440.23
28.42

14,916
11,02919,267
14,174
18,409180,058
257,855

/
/
/
/
/
/
/
/
160,329

0.06
0.37
1.16
3.19
14.89
100.00
5.01

0.0
7.0
6.0
110.3
1.8
1.0
126.4

34.50
25.12
22.44
21.16
17.62
39.69
24.37

3.2
3.0
3.3
3.8
3.2
2.2
3.2

47,184427,172
580,133
261,443
126,925
42,527
1,485,386

20.58
30.55
42.86
54.10
74.76
33.52
39.49

49
1,298
3,600
3,316
4,456
46,94559,667

/
/
/
/
/
/
/
/
37,099

0.08
0.33
0.93
3.46
14.89
100.00
1.05

0.4
0.1
0.0
0.0
0.0
0.0
0.7

34.94
38.38
38.87
37.55
38.01
62.73
36.19

4.3
4.1
4.4
3.7
3.9
4.4
4.2

736,152
444,157
320,941
55,28432,615
14,536
1,603,687

28.74
63.84
98.31
124.13200.04
53.48
43.67

725
915
1,186
582
923
15,884
20,218

/
/
/
/
/
/
/
/
12,571

0.04
0.33
1.19
4.01
14.89
100.00
0.22

1.0
0.7
0.2
0.0
0.0
0.1
2.2

90.00
90.00
90.00
90.00
90.00
90.00
90.00

5.0
3,165,376
5.0
202,127
5.0
192,3215.0
45,342
5.0
7,520
5.0
45,9485.0 ¥3,658,637

100.96
168.67271.40380.06646.001,125.00
109.44

/
/
/
/
/
/
/
/
¥/

/
/
/
/
/
/
/
/
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2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CR6-(Continued)(Millions of yen, %, number in the thousands, year)

a
b
c
d
e
f
g
h
i
j
Original
OffEADon-balance balance
post CRM
RWA
sheet
sheet Average
andAverage Number Averagedensitygross exposures CCF
PDofLGD Average
postPD scale
exposure pre CCF
(%)
(%)
CCF
(%)
obligors(%)
maturity RWA
As of March 31, 2019
Purchased receivables (Corporate, etc.) - Default Risk Equivalent¥2,072,913¥550,531
78.15 ¥2,503,107
0.06
0.6
38.33
1.5
¥338,704
13.53
1 0.00 to <0.15
2 0.15 to <0.25
232,216
74,542
76.53
289,269
0.37
0.2
38.01
1.7
127,78744.17
3 0.25 to <0.50
4 0.50 to <0.75
83,73822,631
86.29
103,268
0.93
0.0
38.01
1.1
62,88360.89
5 0.75 to <2.50
18,3182,873
94.31
21,029
3.08
0.0
38.01
1.3
20,30396.55
6 2.50 to <10.00
0
17,891
75.08
13,434
14.89
0.0
38.01
1.0
23,247173.037 10.00 to <100.00
217
217
100.00
0.0
31.88
4.3
91
42.30
8 100.00 (Default)
2,407,405
668,47078.23
2,930,326
0.22
1.0
38.28
1.5
573,018
19.55
9 Sub-total
Purchased receivables (Retail) - Default Risk Equivalent
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables (Dilution Risk Equivalent)
1,039,561
80,631100.001,120,192
0.07
0.1
38.01
145,295
12.97
1 0.00 to <0.15
2 0.15 to <0.25
72,202
72,202
0.33
0.0
37.89
24,99234.61
3 0.25 to <0.50
4 0.50 to <0.75
94,637
94,637
1.37
0.0
38.01
65,98969.72
5 0.75 to <2.50
6,623
6,623
3.54
0.0
38.01
6,473
97.73
6 2.50 to <10.00
7 10.00 to <100.00
7,126
7,126
100.00
0.0
46.87
3,825
53.67
8 100.00 (Default)
1,220,150
80,631100.001,300,781
0.74
0.1
38.05
246,577
18.95
9 Sub-total
Retail – qualifying revolving retail exposures (QRRE)/
1 0.00 to <0.15
25
0.19
0.8
77.69
/
2
8.14
2 0.15 to <0.25
30
0.33
0.7
78.44
/
3
12.65
3 0.25 to <0.50/
4 0.50 to <0.75
237,551865,682
14.27
361,157
2.34
593.9
78.44
/
204,53956.63
5 0.75 to <2.50
170,152
892,9167.95
241,079
4.14
2,067.1
78.45/
199,358
82.69
6 2.50 to <10.00
34,125
17,631
33.62
40,054
19.89
205.0
78.45
/
71,273177.937 10.00 to <100.00
482
1,229
11.44
619
100.00
1.9
71.90
/
522
84.32
8 100.00 (Default)
442,3121,777,459
11.28
642,966
4.20
2,869.6
78.44/
475,700
73.98
9 Sub-total
Retail – Residential mortgage
1,944,487
1,979,064
0.08
248.9
28.72
/
115,4225.83
1 0.00 to <0.15
1,147,939
1,150,775
0.20
114.5
31.96
/
150,495
13.07
2 0.15 to <0.25
1,988,711
1,988,027
0.34
231.1
32.65
/
388,60719.54
3 0.25 to <0.50
1,880,714
88,38797.55
1,928,162
0.64
284.0
35.67
/
639,405
33.16
4 0.50 to <0.75
1,501,250629
100.001,503,498
1.09
198.7
35.64
/
703,10746.76
5 0.75 to <2.50
70,6802,380
100.0073,417
9.45
10.4
37.38
/
121,737
165.816 2.50 to <10.00
26,3062,136
100.0028,456
46.92
4.3
39.43
/
54,817
192.637 10.00 to <100.00
63,491
1,315
100.0064,871100.005.4
44.36/
32,38349.91
8 100.00 (Default)
8,623,582
94,84897.72
8,716,274
1.43
1,097.6
33.00/
2,205,975
25.30
9 Sub-total
Other retail22259,936
0.05
37.7
47.73
/
18,7167.20
1 0.00 to <0.15
668,228
0.18
4.8
46.76
/
12,32818.06
2 0.15 to <0.25
117,62232
100.00118,210
0.35
5.2
47.57
/
32,83627.77
3 0.25 to <0.50
94,978266
75.25
93,320
0.66
88.6
46.78
/
36,40939.01
4 0.50 to <0.75
953,276
3,252
80.96
890,437
1.36
27.1
46.54
/
443,075
49.75
5 0.75 to <2.50
352,855
1,980
61.13
156,726
6.46
11.1
19.31
/
44,90928.65
6 2.50 to <10.00
88,4199,336
52.40
45,890
17.80
15.0
32.98
/
31,23368.06
7 10.00 to <100.00
67,6292,590
90.22
53,369100.002.8
47.47/
25,17547.17
8 100.00 (Default)
1,674,812
17,45764.76
1,686,119
5.04
192.7
43.95
/
644,68438.23
9 Sub-total
70.89 ¥174,957,145
0.66
4,644.3
38.17
2.00 ¥34,181,215
19.53
Total (all portfolios) ¥151,622,109 ¥32,964,000

k

l

EL

Provisions

¥657
413
366
246
760
61
2,506

¥/
/
/
/
/
/
/
/
1,558

-

/
/
/
/
/
/
/
/
-

313
91
493
89
3,034
4,022

/
/
/
/
/
/
/
/
/

0
0
6,653
7,829
6,251
403
21,139

/
/
/
/
/
/
/
/
13,144

475
756
2,253
4,434
5,783
2,592
5,272
26,19247,762

/
/
/
/
/
/
/
/
29,697

73
60
197
287
5,181
1,593
2,940
23,32333,658¥451,605

/
/
/
/
/
/
/
/
20,927¥278,296

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. On-balance sheet exposures, pre-CCF and pre- CRM off-balance sheet exposures, and the average CCF are allocated to the PD ranges based on pre- CRM PD
estimates.
3. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.

286

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Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) CR8:RWA flow statements of credit risk exposures under IRB approach(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2018

Breakdown of changes during thisreporting period¥40,008.8
988.2(2,253.8)(224.1)294.4(29.9)¥38,783.5

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2019

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Asset size corresponds to the amount of variation in RWA arising from changes in book size and composition, increased assets resulting from origination of new
businesses, decreased assets due to matured receivables, etc.
3. Portfolio quality corresponds to the amount of variation in RWA arising from changes in obligor’s and facilities’ ratings, changes in collateral values and guarantees, etc.
4. Methodology and policy corresponds to the amount of variation in RWA arising from methodological changes in calculations driven by regulatory policy changes including
revisions to existing regulations.
5. Foreign currency fluctuations correspond to the amount of variation in RWA arising from the effect of fluctuations in foreign exchange rates involving exposures totransactions denominated in foreign currencies.

(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2019

Breakdown of changes during thisreporting period

RWA as of March 31, 2020

Asset size
Portfolio quality
Model updates
Methodology and policy
Acquisitions and disposals
Foreign currency fluctuations
Other¥38,783.5
1,240.6
106.2(433.4)(86.1)¥39,610.9

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Asset size corresponds to the amount of variation in RWA arising from changes in book size and composition, increased assets resulting from origination of new
businesses, decreased assets due to matured receivables, etc.
3. Portfolio quality corresponds to the amount of variation in RWA arising from changes in obligor’s and facilities’ ratings, changes in collateral values and guarantees, etc.
4. Methodology and policy corresponds to the amount of variation in RWA arising from methodological changes in calculations driven by regulatory policy changes including
revisions to existing regulations.
5. Foreign currency fluctuations correspond to the amount of variation in RWA arising from the effect of fluctuations in foreign exchange rates involving exposures totransactions denominated in foreign currencies.

287

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) CR9: IRB - Backtesting of Probability of Default (PD) per Portfolio(%, the number of data)ab

As of March 31, 2020decExternal rating equivalent

Portfolio

PD
Range
(%)

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
Retail –0.10 to<0.20
qualifying
torevolving retail 0.20
<1.00
exposures
1.00 to<5.00(QRRE)
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –to
Residential 0.20
<1.00
mortgage 1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00fghi
Number of
AverageArithmeticof which:
Weighted
obligors
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2018 31, 2019(%)

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.04

0.05

2,428

2,448

1

-

0.00

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.12

0.12

5,415

5,793

4

-

0.05

S&P

BBB+～BBB-

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.48

0.50

21,637

21,594

48

1

0.24

B+～B-

B+～B-

2.04

2.53

8,470

8,398

146

2

1.42

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC～C

12.53

13.08

1,949

1,949

139

3

7.47

-

-

-

-

-

-

-

-

-

-

-

-

-

-

B1～B3

B+～B-

B+～B-

-

-

-

-

-

-

-

2.75

2.94

331,852

310,140

6,405

475

1.89

13.19

9.12

146,854

149,075

11,657

743

9.13

0.06

0.06

87,23077,325

33

-

0.02

0.14

0.14

78,90078,259

46

1

0.06

0.50

0.51

385,619382,771

872

2

0.24

1.25

1.22

82,71882,274

338

-

0.47

20.37

21.31

9,024

10,757

1,050

-

10.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.79

0.67

400,105

306,402

1,268

24

0.31

2.72

3.14

80,66550,604

855

10

0.53

13.04

22.53

34,136

24,918

1,850

2

4.34

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they areincorporated with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 80%, QRRE: 1%,
Residential mortgage : 6%, Other retail : 2%
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2018 to September 30, 2019.

288

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(%, the number of data)ab

Portfolio

PD
Range
(%)

As of March 31, 2019
d
e

c

i
AverageArithmeticof which:
Weighted
historical
average
Defaulted
newaverageannual
PD byobligors defaulted
As of
As of
PD
default
obligors
March
March in the year obligors
(%)
rate
(%)
in the year
31, 2018 31, 2019(%)

External rating equivalent

0.00 to<0.10
0.10 to<0.20
Corporate, 0.20 to
<1.00
etc.
1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
Retail –0.10 to<0.20
qualifying
torevolving retail 0.20
<1.00
exposures
1.00 to<5.00(QRRE)
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Retail –to
Residential 0.20
<1.00
mortgage 1.00 to<5.00
5.00 to<100.00
0.00 to<0.10
0.10 to<0.20
Other
0.20 to<1.00
retail1.00 to<5.00
5.00 to<100.00f
Number ofobligors

g

h

S&P

Moody’
Fitch
s

R&I

JCR

AAA～A-

Aaa～A3 AAA～A-

AAA～A-

AAA～A-

0.05

0.05

2,404

2,381

-

-

-

BBB+～BBB-

Baa1～Baa3

BBB+～BBB-

BBB+～BBB-

0.13

0.14

5,295

5,295

2

-

0.03

BBB+～BBB-

BB+～BB- Ba1～Ba3 BB+～BB- BB+～BB- BB+～BB-

0.48

0.51

21,25921,605

44

1

0.22

B+～B-

2.24

2.15

9,037

8,453

115

2

1.29

B1～B3

B+～B-

B+～B-

B+～B-

10.79

13.08

2,144

1,882

140

2

7.77

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

2.40

2.81

376,296

363,146

7,834

913

1.88

/

/

/

/

/

10.75

6.73

109,372

115,560

11,704

709

8.95

/

/

/

/

/

0.06

0.06

96,887

87,230

38

-

0.02

/

/

/

/

/

0.15

0.15

78,36278,900

39

1

0.06

/

/

/

/

/

0.53

0.53

396,443

385,619

871

5

0.24

/

/

/

/

/

1.30

1.26

75,66482,718

363

-

0.51

/

/

/

/

/

21.24

22.41

8,551

9,024

961

-

10.77

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

-

-

-

-

-

-

-

/

/

/

/

/

0.77

0.67

389,084

273,543

1,343

25

0.32

/

/

/

/

/

2.38

3.20

273,668

207,228

1,508

12

0.48

/

/

/

/

/

18.47

22.85

47,23934,136

2,579

5

4.46

CCC+～CCC- Caa1～Caa3 CCC+～CCC- CCC+～CCC- CCC～C

Notes: 1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. Exposures to sovereign and bank is included in the category of corporate, etc. because their obligors can be presumably specified. Likewise, exposures to corporate(except specialized lending), specialized lending, equity and purchased receivables (corporate) is included in the category of corporate, etc. because the data of therespective portfolios is not separately used for PD estimation. Since purchased receivables (retail) account for a small portion of the entire exposure, they areincorporated with any one of QRRE, residential mortgage or other retail depending on the portfolio classification of the purchased receivables.
3. PD Range indicates the ranges of PD estimates for multiple consolidated internal ratings groups.
4. The following shows the percentages accounted for by the respective portfolios among the credit RWA calculated by the AIRB: Corporate, etc. : 75%, QRRE: 1%,
Residential mortgage : 7%, Other retail : 2%
5. The number of credits is disclosed as the number of data of obligors for QRRE, residential mortgage and other retail excluding credit for business purpose.
6. The back testing covers the period from September 30, 2017 to September 30, 2018.

289

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(D) CR10: IRB -Specialized Lending under the Slotting Criteria Approach and Equity Exposures under the Marketbased Approach etc.
(Millions of yen, %)As of March 31, 2020
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years¥¥- 50%¥¥¥¥Equal to or more
Strong25,007- 70%
25,007than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good
Satisfactory
Weak
Default
Total
Regulatory
categories
StrongGood

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is appliedl

RWA

Expected
losses¥-¥-¥-

25,007

17,505

100

-

-

70%

-

-

-

-

-

-

-

-

90%

-

2,635

-

-

2,635

2,371

21

3,838
8,657
6,525
46,662

23,370 115%
- 250%
23,370-HVCRE

21,3698,756
9,312
67,081--

21,3698,756
9,312
67,081

24,57521,89066,343

598
700
4,656
6,076

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
16,351- 70%

Satisfactory
Weak
Default
Total

Total

k

2,634

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

j113,965

31,991

95%

3,120

-

95%

6,369

8,250 120%

- 140%- 250%
139,80740,241Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount
511,441

170,264 300%

68,124

1,661 400%

-

-

-

579,566 171,925
Equity exposures to which a risk weight of 100% is applied

4,517- 100%

ExposureamountExpected
lossesRWA

16,35811,45065

137,982

131,083

551

3,122

2,965

12

12,56015,07250

170,023

160,572

680

ExposureamountRWA

681,705 2,045,116

69,370277,483--

751,076 2,322,599
4,517

4,517

Notes:1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

290

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %)As of March 31, 2019
a
b
c
d
e
f
g
h
i
Specialized lending under slotting criteria approach
Other than HVCRE
OnOffExposure amount
Regulatory
Remainingbalance balance
RW
categories
maturity
sheet
sheet
PF
OF
CF
IPRE
amount amountLess than 2.5 years¥¥- 50%¥¥¥¥Equal to or more
Strong24,983- 70%
24,983than 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good
Satisfactory
Weak
Default
Total
Regulatory
categories
Strong---Satisfactory
Weak
Default
Total

Categories
Exchangetraded
equityexposures
Privateequityexposures
Other
equityexposures
Total
Equity exposures towhich a risk weight of
100% is appliedl

RWA

Expected
losses¥-¥-¥-24,983

17,488

99

-

-

-

70%

504

-

90%

-

504

-

-

504

454

4

3,735
9,962
3,081
42,267

10,422 115%
- 250%
10,422-

HVCRE

11,553
10,1099,312
56,463--

11,553
10,1099,312
56,463

13,28625,27356,502

323
808
4,656
5,892

OnOffbalance balance
RW
sheet
sheet
amount amountLess than 2.5 years
8,449
- 70%

-

Total

k

-

Remainingmaturity

Equal to or morethan 2.5 years
Less than 2.5 years
Equal to or morethan 2.5 years

Good

-

j

ExposureamountExpected
losses

RWA

8,449

5,914

33

72,936

14,206

95%

83,601

79,421

334

2,010

-

95%

2,010

1,910

8

8,654

18,530 120%

22,55527,06690

116,618

114,313466

ExposureamountRWA- 140%- 250%
92,05032,736Equity exposures under the market-based approach etc.
Equity exposures under the market-based approach
OnOffbalance balance
RW
sheet
sheet
amount amount721,228

30,289 300%

751,517 2,254,553

57,192

1,694 400%

58,463233,852

-

-

-

-

-

778,420
31,984Equity exposures to which a risk weight of 100% is applied

4,543- 100%

809,980 2,488,405
4,543

4,543

Notes:1. Counterparty credit risk exposures, securitization exposures, and regarded-method exposures are excluded from the amount of credit risk exposures above.
2. PF, OF, CF and IPRE respectively stand for project finance, object finance, commodity finance and income-producing real estate.

291

Quantitative Disclosure on Credit Risk under IRB approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(5) Credit Risk under Standardized Approach(i) Status of portfolios to which the standardized approach is applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which thestandardized approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and S&P Global Ratings
overseas.
We apply a risk weight of 100% for all of our corporate exposure.
(ii) Quantitative disclosure on credit risk under standardized approach(A) CR5: Standardized Approach - Exposures by Asset Classes and Risk Weights(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

As of March 31, 2020
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

k
Total

¥80
508,644
107,321¥-¥63,522¥-¥151,255¥-¥46,736

¥1

¥-

¥-

¥80
508,644368,837

2,838
-

-

431

-

0

-

0

-

-

-

2,838
432

0
-

7

-

-

-

-

-

-

-

-

0
7

-

5,259
-

374,887-

63,908-77,204

-

-

-

5,259
516,000

-

-

-

-

232

- 1,623,973
12

28

-

- 1,623,973
272

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,747,926

¥30

¥-

¥- ¥3,026,345¥618,884¥5,267 ¥438,841¥- ¥215,395

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

292

Credit Risk under Standardized Approach2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Risk weight
Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central
banksBank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for
Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business
operators conducting the type I
financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporations, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

0%

As of March 31, 2019
b
c
d
e
f
g
h
i
j
Credit exposures amount (post CCF and post-CRM)
10% 20% 35% 50% 75% 100% 150% 250% 1,250%

Credit Risk under Standardized Approach

Total

¥116
465,728
46,903¥-¥39,562¥-¥123,316¥-¥55,915

¥-

¥-

¥-

¥116
465,728
265,699

1,043
-

-

1,103

-

61

-

28

-

-

-

1,043
1,194

6
-

1

-

-

-

-

-

-

-

-

6
1

-

2,328
-

238,960-

45,431-62,702

-

-

-

2,328
347,093

-

-

-

-

87

- 1,479,276
17

21

-

- 1,479,276
126

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥- ¥1,597,940

¥21

¥-

¥- ¥2,562,615¥513,798¥2,330 ¥279,627¥- ¥168,897

Note: Counterparty credit risk exposures, credit risk related to securitization transactions, and fund exposures are excluded from the amount of credit risk exposures above.

293

k2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(6) Credit Risk Mitigation Techniques(i) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor any concentration of risks in particular corporategroups including indirect credit exposure such as collateral issuers and guarantees. When calculating the credit risk
weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation through financial collateral(mainly deposits and securities), other collateral (mainly real estate) and guarantees by "sovereign, banks or
corporations above a certain credit rating" is reflected.
(ii) Quantitative Disclosure on Credit Risk Mitigation Techniques
Counterparty risk exposures, securitization exposures, and regarded-method exposures are excluded from the amountof credit risk exposures below.
(A) CR3: Credit Risk Mitigation Techniques - Overview(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥65,503,018
27,701,052
44,625,456¥137,829,527
279,426

As of March 31, 2020bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥15,815,487¥6,493,163¥7,043,960¥3,019479,786
303,452
81,134
72,2702,198
56,783¥16,367,544¥6,798,814¥7,181,879¥3,019254,343
135,921
43,523-

Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

(Millions of yen)

a

1
2
3
4
5

Loans
Debt securities
Other on balance debt assets
Total (1+2+3)
Of which defaulted

Exposures
unsecured¥60,910,902
22,289,542
49,191,702¥132,392,148
261,864

As of March 31, 2019bcde
Exposures secured Exposures secured
Exposures secured
by financial
by credit
Exposures secured
by collateralguarantees
derivatives¥15,856,184¥6,365,790¥7,169,389¥3,137
381,561
212,479
95,79097,131
3,037
78,503¥16,334,877¥6,581,306¥7,343,683¥3,137220,226
101,305
47,220-Notes: 1. Other on-balance debt assets include deposits, call loans, bills purchased, monetary claims bought, money held in trust, and foreign exchange assets, etc.
2. Defaulted exposures include restructured loans, loans past due for three months or more, loans to bankrupt borrowers and so on.

294

Credit Risk Mitigation Techniques2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(B) CR4: Standardized Approach - Credit Risk Exposure and Credit Risk Mitigation (CRM) Effects(Millions of yen, except percentages)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

a
b
Exposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥80¥508,644
368,837
2,838-

As of March 31, 2020cd
Exposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥80¥508,644
368,837
2,838
-

e

f

¥135,071-

RWA
density
0.00
0.00
36.62
0.00

RWA

432

-

432

-

87

20.14

80
7
5,259
-

-

0
7
5,259
-

-

0
525
-

0.00
10.00
10.00
-

455,861

131,306

453,575

62,425

184,13635.68

1,409,004-

270,006-

1,408,323-

215,650-

1,623,915
-

99.99
-

272

-

272

-

170

62.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,751,318¥401,312¥2,748,270¥278,075¥1,943,907

64.23(Millions of yen, except percentages)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Asset classes
CashJapanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs otherthan foreign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Mortgage housing loan
Real estate acquisition business, etc.
Claims past due for 3 months or more
(excluding mortgage housing loan)
Claims past due for 3 months or moreregarding mortgage housing loanBills in process of collection
With guarantee of Credit Guarantee
Corporation, etc.
With guarantee of Regional Economy
Vitalization Corporation of Japan
Investments, etc.(excluding significant
investments)
Total

295

Credit Risk Mitigation TechniquesabExposures before CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥116¥465,728
265,699
1,043-

As of March 31, 2019cdExposures post-CCF andCRM
On-balance
Off-balance
sheet amount sheet amount¥116¥465,728
265,699
1,043
-

e

f

¥125,486-

RWA
density
0.00
0.00
47.22
0.00

RWA

1,194

-

1,194

-

280

23.48

6
1
2,328
-

-

6
1
2,328
-

-

0
232
-

0.00
10.00
10.00
-

315,793

63,536315,325

31,768133,21038.37

1,274,106-

258,259-

1,274,106-

205,170-

1,479,220
-

99.99
-

126

-

126

-

93

73.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥2,326,144¥321,795¥2,325,677¥236,938¥1,738,523

67.84

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) CR7: IRB - Effect on RWA of Credit Derivatives Used as CRM Techniques(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2020ab
Pre-credit
derivatives RWA
Actual RWA¥¥517,251
517,251
1,005,223
1,005,223
24,415,292
24,414,538
2,169,388
2,169,388
468,522468,522
2,114,155
2,114,155
552,767
552,767
2,918,659
2,918,659
735,372
735,372¥34,896,634¥34,895,880

Portfolios
Sovereign - FIRB
Sovereign - AIRB
Banks - FIRB
Banks - AIRB
Corporate (except Specialized lending) - FIRB
Corporate (except Specialized lending) - AIRB
Specialized lending - FIRB
Specialized lending - AIRB
Retail - qualifying revolving retail exposures (QRRE)
Retail - residential mortgage exposures
Other retail exposures
Equity - FIRB
Equity - AIRB
Purchased receivables - FIRB
Purchased receivables - AIRB
Total

As of March 31, 2019ab
Pre-credit
derivatives RWA
Actual RWA¥¥640,973
640,973
906,425
906,425
23,135,521
23,133,739
1,866,300
1,866,300
475,700
475,700
2,205,975
2,205,975
644,684
644,684
3,658,637
3,658,637
819,595
819,595¥34,353,814¥34,352,032(Millions of yen)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

(7) Equity investments in funds(Millions of yen)

Equity investments in funds - Look-through approach
Equity investments in funds - Mandate-based approach
Equity investments in funds - Simple approach (subject to 250% RW)
Equity investments in funds - Simple approach (subject to 400% RW)
Equity investments in funds - Fall-back approach
Total

As of March 31, 2018
Exposure¥2,111,716
149,567
1,559¥2,262,842

As of March 31, 2019
Exposure¥2,492,474
147,229
7,443¥2,647,147

296

Credit Risk Mitigation Techniques、Equity investments in funds

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Counterparty Credit Risk
(1) Summary of Risk Profile, Risk Management Policies/ Procedures and Structure
In managing the risk pertaining to counterparty credit risk (including central counterparty) in derivatives transactions andrepurchase transactions etc., we generally allocate risk capital together with loans, etc., (we take into account wrong
way risk for derivatives transactions). For derivatives transactions and repurchase transactions, in cases in which abilateral netting agreement is valid in light of the legal system of the relevant jurisdiction, we take its effect into
consideration. As to derivatives transactions with financial institutions, etc., we periodically, where necessary, deliver
and receive collateral to and from the counterparty based on the replacement cost to mitigate credit risk (collateralized
derivatives transactions). In conducting such transactions, there is a risk in which we may be required to provide
additional collateral in cases where our credit profile deteriorates.
(2) Quantitative Disclosure on Counterparty Credit Risk
(A) CCR1: Analysis of Counterparty Credit risk (CCR) Exposure by Approach(Millions of yen)

1
2
3
4
5
6

SA-CCR
Current Exposure Method
Expected Positive Exposure Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

As of March 31, 2020cdAlpha used forcomputingregulatory
EEPE
EAD
／
1.4
／
／
2,567,614
1.4
／
／

a

b

Replacement
cost¥184,328／／

Potential
futureexposure¥259,484
／
／

／

／

／

／
／

／
／

／
／

e

f

EAD
post-CRM¥443,813
3,594,660
61,562¥165,699
1,216,072
33,887／

15,037,228

798,982／／／2,214,641

RWA(Millions of yen)

1
2
3
4
5
6

SA-CCR
Current Exposure Method
Internal Model Method
Simple Approach for credit risk mitigation
Comprehensive Approach for credit
risk mitigation
VAR for SFTs
Total

As of March 31, 2019cdAlpha used forcomputingregulatory
EEPE
EAD
/
1.4
/
/
¥1,994,045
1.4
/
/

a

b

e

f

Replacement
cost¥170,412//

Potential
futureexposure¥200,077
/
/

/

/

/

/

10,176,903

793,601

/
/

/
/

/
/

/
/

/

¥1,843,210

EAD
post-CRM¥370,490
2,791,664
41,823RWA¥139,720
878,845
31,043(B) CCR2: Credit Valuation Adjustment (CVA) Capital Charge(Millions of yen)

As of March 31, 2020a
EAD post-CRM
1
2
3
4
5

b
RWA

¥／
／
3,999,491¥3,999,491

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge¥2,137,870¥2,137,870(Millions of yen)

As of March 31, 2019a
EAD post-CRM
1
2
3
4
5

Total portfolios subject to the Advanced CVA capital charge(i) VAR component (including the 3×multiplier)(ii) Stressed VAR component (including the 3×multiplier)
All portfolios subject to the Standardized CVA capital charge
Total subject to the CVA capital charge

297

Risk Management of Counterparty Credit Risk、Quantitative Disclosure on Counterparty Credit Risk¥//
3,162,959¥3,162,959

bRWA¥2,457,535¥2,457,535

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(C) CCR3: Standardized Approach - CCR Exposures by Regulatory Portfolio and Risk Weights(Millions of yen)

As of March 31, 2020
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight
Regulatory portfolio
Japanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total

0%

i
Total

¥13,229
3,236
-

¥-

¥150
-

¥94
-

¥-

¥57
-

¥-

¥-

¥13,229
3,539
-

-

-

7,200

2,103

-

72

-

-

9,376

3,119
-

1,426
-

-

-

-

-

-

-

3,119
1,426
-

-

-

784,856

19,498-32,167--

836,523¥19,585¥1,426¥792,207¥21,696¥-

639,319¥671,617¥-

639,319¥- ¥1,506,532(Millions of yen)

As of March 31, 2019
b
c
d
e
f
g
h
Credit exposures amount (post CCF and post-CRM)
10%
20%
50%
75%
100% 150% Other

a

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Risk weight
Regulatory portfolio
Japanese sovereigns and Bank of Japan
Foreign central sovereigns and central banks
Bank for International Settlements,etc.
Japanese non-central governmental PSEs
Non-central governmental PSEs other thanforeign central sovereigns, etc.
International development banks
Japan Finance Organization for Municipalities
Japanese government institutions
Three regional public sectors of Japan
Financial institutions and business operators
conducting the type I financial instruments businessCorporates, etc.
Regulatory retail portfolios and individuals
Other assets
Total

0%

¥68,027
822
-

i
Total

¥-

¥8,120
-

¥532
-

¥-

¥697
-

¥-

¥-

¥68,027
10,173---25,043

3,945

-

19

-

-

29,008

7,933
-

819
-

-

-

-

-

-

-

7,933
819
-

-

-

499,625

16,438-31,460--547,524¥76,784¥819¥532,788¥20,916¥-

686,087¥718,265¥-

686,087¥- ¥1,349,574

298

Quantitative Disclosure on Counterparty Credit Risk

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) CCR4: IRB - CCR Exposures by Portfolio and PD Scale(Millions of yen, %, number in the thousands,year)

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total

As of March 31, 2020cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥13,420,020
30
4,360
14
13,424,426

0.00
0.26
0.99
3.06
0.00

0.0
0.0
0.0
0.0
0.0

37.83
37.83
37.83
37.83
37.83

4.6
2.9
4.5
1.0
4.6

¥85,889
14
4,236
13
90,153

0.64
46.64
97.14
93.01
0.67

1,408,013
28,5091,365
874
1,438,763

0.05
0.28
1.41
3.06
0.06

0.3
0.0
0.0
0.0
0.4

37.83
37.81
37.56
37.83
37.82

2.3
1.5
0.6
2.1
2.3

316,582
13,7261,031
929
332,269

22.48
48.14
75.53
106.2823.09

1,760,853
109,197
94,58842,656
12,3992,835¥2,022,530

0.05
0.35
1.27
3.32
14.88
100.00
0.43

2.5
2.0
1.2
0.4
0.1
0.1
6.5

37.75
35.89
36.20
35.65
36.14
54.25
37.54

3.2
2.3
2.5
2.4
1.5
2.9
3.1

403,040
49,17074,74645,307
20,834
1,221¥594,320

22.88
45.02
79.02
106.21
168.03
43.08
29.38

299

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density(%)

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2020cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥10,896
21,041
9,763
6,232
1,486
415
49,836

0.11
0.37
1.11
3.33
14.88
100.00
2.09

0.0
1.3
1.0
0.2
0.1
0.0
2.8

36.44
28.50
24.72
21.45
27.40
33.94
28.63

4.8
3.8
3.4
4.1
3.6
2.9
4.0

¥5,457
8,608
4,844
3,547
1,741
158
24,357

50.08
40.91
49.61
56.91
117.1738.06
48.87

453,862
140,746
90,386
5,287
4
3,184
693,472

0.09
0.36
0.98
4.27
14.88
100.00
0.75

0.2
0.0
0.0
0.0
0.0
0.0
0.3

38.92
37.83
37.83
37.83
37.83
53.28
38.62

4.4
4.2
4.5
3.3
1.0
4.8
4.4

164,800
92,83988,431
6,775
8
1,870
354,727

36.31
65.96
97.83
128.13171.98
58.74
51.15

-

-

-

-

-

-

-

1,233
6
81
4
1,328
¥17,630,357

1.88
3.88
13.71
100.002.96
0.09

1,007.0
12.0
65.0
14.0
1,099.0
11,416.0

33.09
4.46
34.25
41.31
33.08
37.80

／
／
／
／
／
521
／
0
／
51
／
2
／
577
4.2 ¥1,396,406

42.30
6.42
63.95
47.29
43.46
7.92

300

Quantitative Disclosure on Counterparty Credit Risk

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen, %, number in the thousands,year)

1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9

PD scale
Sovereign0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-totalBanks
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total
Corporate
0.00 to <0.15
0.15 to <0.25
0.25 to <0.50
0.50 to <0.75
0.75 to <2.50
2.50 to <10.00
10.00 to <100.00
100.00 (Default)
Sub-total

As of March 31, 2019cde
Number of
Average
Averagecounterparty LGD (%)
maturityaEAD
post-CRMb
AveragePD (%)¥8,930,341
500
3,527
43
8,934,414

0.00
0.27
0.91
3.06
0.00

0.0
0.0
0.0
0.0
0.0

38.01
38.01
38.01
38.01
38.01

4.6
2.9
4.5
1.3
4.6

¥118,295
240
3,388
42
121,967

1.32
48.11
96.04
97.12
1.36

1,290,871
22,216110794
196
1,314,189

0.05
0.29
1.07
3.06
100.00
0.07

0.3
0.0
0.0
0.0
0.0
0.4

38.01
37.98
37.74
38.01
96.59
38.01

2.3
1.5
1.2
0.5
5.0
2.3

266,984
10,872
73709
60
278,700

20.68
48.94
66.63
89.25
30.50
21.20

1,207,074
72,626
68,94022,183
3,476
1,436¥1,375,738

0.06
0.36
1.08
3.23
14.89
100.00
0.32

2.4
2.1
1.3
0.3
0.1
0.1
6.6

37.89
34.74
36.25
33.42
33.95
41.93
37.56

3.2
2.7
2.6
2.9
2.5
2.9
3.2

287,136
34,39752,73622,351
5,813
408¥402,844

23.78
47.36
76.49
100.75167.20
28.45
29.28

301

Quantitative Disclosure on Counterparty Credit Risk

f
RWA

g
RWA density(%)

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

CCR4-(Continued)

PD scaleSME
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Specialized Lending
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Purchased receivables
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Retails
1 0.00 to <0.15
2 0.15 to <0.25
3 0.25 to <0.50
4 0.50 to <0.75
5 0.75 to <2.50
6 2.50 to <10.00
7 10.00 to <100.00
8 100.00 (Default)
9 Sub-total
Total (all portfolios)(Millions of yen, %, number in the thousands,year)aEAD
post-CRM

As of March 31, 2019cde
Number of
Average
Averagecounterparty LGD (%)
maturityb
AveragePD (%)fg
RWA density
(%)

RWA

¥828
13,396
10,122
5,463
1,123
605
31,538

0.10
0.35
1.13
3.08
14.89
100.00
3.50

0.0
1.3
1.1
0.3
0.0
0.0
2.9

19.39
23.89
22.40
21.83
28.90
32.29
23.28

3.3
3.3
3.6
4.0
3.1
3.1
3.5

¥105
4,208
4,667
3,056
1,404
215
13,656

12.71
31.41
46.11
55.94
125.0435.54
43.30

230,919
104,070
34,753
1,057
606
2,530
373,938

0.09
0.35
1.04
3.77
14.89
100.00
0.96

0.1
0.0
0.0
0.0
0.0
0.0
0.3

40.54
38.01
38.01
38.01
38.01
54.96
39.68

4.5
4.6
4.4
3.9
3.8
4.9
4.5

86,486
71,49834,152
1,383
1,208
1,504
196,232

37.45
68.70
98.26
130.80199.35
59.45
52.47

-

-

-

-

-

-

-

951
8
38
3
1,001
¥12,030,820

1.85
3.95
14.57
100.00
2.69
0.08

0.9
0.0
0.0
0.0
1.0
11.4

28.36
4.41
23.05
53.05
28.04
37.97

/
/
/
/
/
343
/
0
/
16
/
1
/
361
4.2 ¥1,013,762

36.04
6.36
43.25
48.18
36.12
8.42

(E) CCR5: Composition of Collateral for CCR Exposure(Millions of yen)

As of March 31, 2020abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥29,677¥615,706¥41,232¥727,303¥1,225,770
18,064,321
705,469
528,893559,218
765,558
8,794,096
21,793
301,449
52,105324,936
8,826,034
62,98997,767
303,475
182,898
310,392
14,734－－－
827,85461
36,172
61
9,776
1,951,499－
162,332－
107,448
13,067－－－－¥834,725¥1,742,321¥956,094¥2,117,921 ¥40,013,036

Fair value of
postedcollateral¥10,143,540
10,573,454
2,563,951
14,569,644
72,823
1,425,685
1,425,996
531,918¥41,307,015

302

Quantitative Disclosure on Counterparty Credit Risk

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

As of March 31, 2019abcdCollateral used in derivative transactions
Fair value of collateral received Fair value of posted collateral

1
2
3
4
5
6
7
8
9

Cash – domestic currency
Cash – other currencies
Domestic sovereign debt
Other sovereign debt
Government agency debt
Corporate bonds
Equity securities
Other collateral
Total

e
f
Collateral used in SFTs

Fair value ofcollateral
Segregated Unsegregated Segregated Unsegregatedreceived¥11,079¥570,998¥4,056¥883,792¥1,704,049
14,465,337
336,654336,381260,207374,001
3,183,024
19,336324,357
106,721377,249
9,482,818
105,414
91,743306,088
118,358
206,703226
1,102,381
20
24,33120
5,077
1,645,752
93,877
86,874
13,411¥472,731¥1,441,690¥677,094¥1,845,353 ¥31,803,478

Fair value of
postedcollateral¥3,730,404
11,540,222
2,674,023
11,223,557
61,1301,777,925
1,311,029
433,352¥32,751,646(F) CCR6: Credit Derivatives Exposures(Millions of yen)

As of March 31, 2020a
Protection bought
Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)

1
2
3
4
5
6

b
Protection sold

¥1,561,051
1,084,242
243,973
1,100¥2,890,367¥1,273,329
750,676
33,314¥2,057,320

26,832(16,830)

12,933(16,264)(Millions of yen)

As of March 31, 2019a
Protection bought
Notionals
Single-name credit default swaps
Index credit default swaps
Total return swaps
Credit options
Other credit derivatives
Total notionals
Fair values
7 Positive fair value (asset)
8 Negative fair value (liability)

1
2
3
4
5
6

303

Quantitative Disclosure on Counterparty Credit Riskb
Protection sold

¥1,108,432
350,692
14,431
1,100¥1,474,656¥1,109,082
330,91323,471¥1,463,467

2,653(14,162)

16,814(1,969)2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(G) CCR7: RWA flow statements of CCR exposures under EPE method(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2018

Breakdown of changes during thisreporting period¥887.834.7(56.1)
12.1
0.2¥878.8Asset size
Credit quality of counterparties
Model updates (EPE only)
Methodology and policy (EPE only)
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2019

(Billions of yen)

No.
1
2
3
4
5
6
7
8
9

RWA
RWA as of March 31, 2019

Breakdown of changes during thisreporting period¥878.8376.8(7.5)(30.3)(1.7)¥1,216.0

Asset size
Credit quality of counterparties
Model updates (EPE only)
Methodology and policy (EPE only)
Acquisitions and disposals
Foreign currency fluctuations
Other

RWA as of March 31, 2020

(H) CCR8: Exposures to Central Counterparties(Millions of yen)

As of March 31, 2020a
EAD (post-CRM)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default
fund contributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions

／

b
RWA
¥163,062¥996,454¥15,025

328,996294,314373,143－
541,202658,624
289,075
－
／

2,262
7,818
4,944
－
／
13,581
134,454
－
－

－

－

－
－
－
－
－
－
－
－

－
－
－
－
／
－
－
－

304

Quantitative Disclosure on Counterparty Credit Risk

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)

As of March 31, 2019a
EAD (post-CRM)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exposures to QCCPs (total)
Exposures for trades at QCCPs (excluding initial margin and default fundcontributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions
Exposures to non-QCCPs (total)
Exposures for trades at non-QCCPs (excluding initial margin and default
fund contributions); of which(i) OTC derivatives(ii) Exchange-traded derivatives(iii) Securities financing transactions(iv) Netting sets where cross-product netting has been approved
Segregated initial marginNon-segregated initial margin
Pre-funded default fund contributions
Unfunded default fund contributions

305

Quantitative Disclosure on Counterparty Credit Risk

/

b
RWA
¥190,997¥654,350¥4,670145,239
83,138425,973
167,185
478,110
219,871
/

501
1,931
2,237
/
9,317
177,009
-

-

-

-

/
-

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Securitization Exposures
We classify transactions as securitization exposures based on two characteristics, “non-recourse” and“senior/subordinated structure,” pursuant to the definitions set forth in the FSA Notice No.20, etc.; provided that thetransactions do not include those which fall within specialized lending exposure.
(1) Summary of Risk Management Regarding Securitization Exposures

Our role in securitization transactions
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book.
(a) Securitization of our assets (“Securitization as originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to
the needs of our investors, etc., we engage in securitization transactions, the underlying assets of which include
mortgage loans and loans to our corporate customers. When conducting a securitization as an originator, we consider
such transactions from various aspects, including the effects of reduction of economic capital and improvement ofreturn on risk as well as the practical effects of risk transfers, and make a comprehensive judgment on the structure
and appropriateness of such transactions.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in the securitization of their account receivables and notes receivables, etc.,
we retain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions),
and providing asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to
special purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining
firm understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internalratings and make evaluations by assessing such transactions and carefully managing the exposure together withother direct loan assets.
(c) Investment in alternative credit risk assets (“Securitization Transactions as an Investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Risk Management
Committee, etc. set limits on the amount of investment for Securitization Transactions as an Investor, and we
maintain a stringent structure for management of such transactions. In addition, we implement stress tests based on
scenarios under the market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., asa means of financing for our customers. We endeavor to understand the actual risk profile, including the underlying
assets, and to appropriately disclose the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
One of our affiliated entities ,Mizuho Leasing Company, Ltd, holds securitization products in which we are involved asoriginators or sponsors.
The securitization conduits included within the scope of consolidation are as follows:ROCK FIELD CORPORATION, FANTASTIC FUNDING CORPORATION, ARTEMIS FUNDING CORPORATION,
N&M FUNDING CORPORATION, Denshi Saiken Kaitori Godo Kaisha, JAPAN SECURITIZATION CORPORATION,
Allstar Funding Co., Ltd, SPARCS FUNDING CORPORATION, PERPETUAL FUNDING CORPORATION,
Working Capital Management Co. L.P., ALWAYS CAPITAL CORPORATION, HORIZON CAPITAL CORPORATION
There are no securitization conduits that provide credit enhancement beyond what is provided in agreements.

Overview of risk profile of securitization transactions and monitoring system
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio. The structure of these products also contains
risks related to the originators, the administrators, trustees and managers of the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor
the ability, quality and operating performance of originators and managers in charge of controlling the underlying assets
as well as covenant information and credit status of the parties related to the program. In addition, for resecuritization
products, we pay attention to the underlying assets of the underlying securitization products. We also assign internalratings to all products and review the rating at least once a year. If there is a change in the credit situations, we will
review the internal rating as appropriate. As mentioned above, we have established a system to comprehensively
understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.

306

Summary of Securitization Exposure and Its Risk Management

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure, we apply the internal-ratings-based approach(“IRBA”) if we have sufficient information regarding all the underlying assets for IRBA. If IRBA cannot be applied to acertain asset and it has a rating obtained from an eligible external credit assessment institution, we apply the Externalrating-based approach (“ERBA”) We apply the standardized approach (“SA”) in other cases pursuant to the FSA NoticeNo. 20. We apply a risk weight of 1,250% under Basel III when neither IRBA, ERBA nor SA can be applied.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt thestandardized measurement method and calculate market risk equivalent amounts in connection with the specific risks of
securitization products based on risk weights according to ratings assigned by eligible external credit assessment
institutions pursuant to the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I),
Japan Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch
Ratings, Ltd. in determining securitization exposure risk weight.
(2) Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to "Accounting Standards Relating to Financial
Products"(Business Accounting Standards No. 10).
(3) Quantitative Disclosure on Securitization Exposures(A) SEC1: Securitization Exposures in the Banking Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2020
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥- ¥1,132,931¥- ¥1,132,931 ¥1,487,047¥- ¥1,487,047
1 Retail (total) - of which
2582,986
582,986
residential mortgage
3credit card
375,844375,844
72,24872,2484other retail exposures
757,087
757,087
831,812
831,812re-securitization
5
6 Wholesale (total) - of which
81,692
192,559274,252
258,517
258,517 1,516,295- 1,516,295
781,692
192,559274,252
18,145
18,145611,982
611,982loans to corporates
8commercial mortgage
1717
9lease and receivables
158,812
158,812745,358
745,358
10
other wholesale
81,56081,560158,937
158,93711
re-securitization(Millions of yen)

As of March 31, 2019
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥- ¥978,411¥- ¥978,411 ¥1,481,218¥- ¥1,481,218
1 Retail (total) - of which
2606,346
606,346
residential mortgage
3credit card
290,688
290,688
70,91070,9104other retail exposures
687,722687,722803,962
803,962
re-securitization
5
6 Wholesale (total) - of which
59,109341,145
400,254
201,905
201,905 1,139,953- 1,139,953
759,109341,145
400,254
538,872
538,872
loans to corporates
8commercial mortgage
184
184
9
lease and receivables
189,125
189,125
477,959
477,959
10
other wholesale
12,77912,779122,936
122,93611
re-securitization-

307

Summary of Securitization Exposure and Its Risk Management、Accounting Policies for Securitization Transactions、Quantitative Disclosure Items
for Securitization Exposure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(B) SEC2: Securitization Exposures in the Trading Book by Type of Underlying Assets(Millions of yen)

As of March 31, 2020
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥¥¥¥- ¥30,122¥- ¥30,122
1 Retail (total) - of which
2
7,414
7,414
residential mortgage
3credit card4other retail exposures
21,957
21,957
re-securitization
750
750
5
6 Wholesale (total) - of which
9,703
9,703
7
9,589
9,589
loans to corporates
8commercial mortgage
9lease and receivables
113
113
10
other wholesale
11
re-securitization(Millions of yen)

As of March 31, 2019
a
b
c
d
e
f
g
h
i
Bank acts as originator
Bank acts as sponsor
Banks acts as investor
type of underlying assets Traditional Synthetic Sub-total Traditional Synthetic Sub-total Traditional Synthetic Sub-total¥¥¥¥¥¥- ¥20,847¥- ¥20,847
1 Retail (total) - of which2
13,727
13,727
residential mortgage
3credit card
6,243
6,243
4
other retail exposures875
875
re-securitization
00
5
6 Wholesale (total) - of which
7,091
7,091
7
7,091
7,091
loans to corporates
8commercial mortgage
9lease and receivables
10
other wholesale
11
re-securitization-

308

Quantitative Disclosure Items for Securitization Exposure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(C) SEC3: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Originator or as Sponsor(Millions of yen)ab

As of March 31, 2020
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥1,419,244 ¥1,238,932 ¥1,238,932
1 ≤20% RW
2 >20% to 50% RW
127,480
127,480
127,480
3 >50% to 100% RW
36,00036,00036,0004 >100% to <1250% RW
82,29770,72970,7295 1250% RW
680
Exposure values (by regulatory approach)
1,665,022 1,473,142 1,473,142
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
427,656
394,705
394,705
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
34,212
31,576
31,576
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%
680
-

i

j

k

¥960,518
69,92733,24969,236-¥278,414
57,552
2,750
1,493
-

¥-

¥-

¥-

1,132,931-

340,210----

323,845-

70,860----25,907
-

5,668
-

-

-

-

As of March 31, 2020
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥180,311
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
11,5675 1250% RW
680
Exposure values (by regulatory approach)
191,879
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
32,951
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
2,636
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680

309

Quantitative Disclosure Items for Securitization Exposure¥180,311
11,567680¥-¥180,311
11,567
680

¥-

¥-

¥-

191,879680-

191,879
680

-

-

-

32,9518,500-

32,951
8,500

-

-

-

2,636
680

-

2,636
680

-

-

-

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Millions of yen)ab

As of March 31, 2019
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥1,183,396
1 ≤20% RW
2 >20% to 50% RW
324,215
3 >50% to 100% RW
36,795
4 >100% to <1250% RW
35,4835 1250% RW
680
Exposure values (by regulatory approach)
1,579,891
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)402,373
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
32,18914 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680

i¥922,808
262,437
36,795
17,383-¥922,808
262,437
36,795
17,383-¥735,148
193,235
34,918
15,108-¥187,660
69,202
1,876
2,275
-

¥-

¥-

¥-

1,239,426-

1,239,426-

978,411-

261,014----345,603-345,603-282,384-

63,219----27,648-27,648-22,590
-

5,057
-

-

-

-

j

k

As of March 31, 2019
l
m

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥260,587
1 ≤20% RW
2 >20% to 50% RW
61,777
3 >50% to 100% RW
4 >100% to <1250% RW
18,1005 1250% RW
680
Exposure values (by regulatory approach)
340,465
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%680
RWA (by regulatory approach)
56,76910 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
8,500
Capital charge after cap
4,541
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%680¥260,587
61,777
18,100680¥-¥260,587
61,777
18,100
680

¥-

¥-

¥-

340,465680-

340,465
680

-

-

-

56,7698,500-

56,769
8,500

-

-

-

4,541
680

-

4,541
680

-

-

-

310

Quantitative Disclosure Items for Securitization Exposure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) SEC4: Securitization Exposures in the Banking Book and Associated Regulatory Capital Requirements Bank Acting as Investor(Millions of yen)ab

As of March 31, 2020
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥2,731,147 ¥2,731,147 ¥2,731,147 ¥1,311,887 ¥1,419,260
1 ≤20% RW
2 >20% to 50% RW
143,760
143,760
143,760
76,525
67,234
3 >50% to 100% RW
95,644
95,644
95,644
95,494150
4 >100% to <1250% RW
32,75132,75132,751
3,139
29,6125 1250% RW
37
37
37
0
37
Exposure values (by regulatory
approach)
1,800,680 1,800,680 1,800,680
901,583
899,096
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
1,202,625 1,202,625 1,202,625
585,463
617,161
8 Standardised Approach (SEC-SA)
9 1250%
37
37
37
0
37
RWA (by regulatory approach)
371,532
371,532
371,532
207,709
163,823
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
242,645
242,645
242,645
66,877
175,767
12 Standardised Approach (SEC-SA)
13 1250%
473
473
473
0
473
Capital charge after cap
29,722
29,722
29,722
16,616
13,105
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
19,411
19,411
19,411
5,350
14,06116 Standardised Approach (SEC-SA)
17 1250%
37
37
37
0
37

i

j

k

As of March 31, 2020
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%

311

Quantitative Disclosure Items for Securitization Exposure

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

--

-

-

-

-

-

-

-

-

-

-

-

-

-

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Millions of yen)ab

As of March 31, 2019
d
e

c

f

g

h

Of which
Of which
Traditional
Of which
retailOf which
reOf which Of which
Total
exposures securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)¥2,407,832 ¥2,407,832 ¥2,407,832 ¥1,318,476 ¥1,089,355
1 ≤20% RW
2 >20% to 50% RW
20,04420,04420,04420,044
3 >50% to 100% RW
162,557
162,557
162,557
137,995
24,5614 >100% to <1250% RW
30,54230,54230,542
4,701
25,8405 1250% RW
194
194
194
0
194
Exposure values (by regulatory
approach)
1,462,952 1,462,952 1,462,952
867,244595,708
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
1,158,024 1,158,024 1,158,024
613,974544,050
8 Standardised Approach (SEC-SA)
9 1250%
194
194
194
0
194
RWA (by regulatory approach)332,708
332,708
332,708
216,665
116,042
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
304,189
304,189
304,189
123,610
180,579
12 Standardised Approach (SEC-SA)
13 1250%
2,433
2,433
2,433
0
2,433
Capital charge after cap
26,616
26,616
26,616
17,333
9,283
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
24,33524,33524,3359,888
14,44616 Standardised Approach (SEC-SA)
17 1250%
194
194
194
0
194

i

j

k

As of March 31, 2019
l
m

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

n

o

Of which
Of which
retailOf which
reOf which Of which
Synthetic Of which
securitization securitization underlying wholesale securitization senior non-senior
Exposure values (by RW bands)
1 ≤20% RW
2 >20% to 50% RW
3 >50% to 100% RW
4 >100% to <1250% RW
5 1250% RW
Exposure values (by regulatory
approach)
6 Internal Ratings-Based Approach (SEC-IRBA)
7 External Ratings-Based Approach (SEC-ERBA)
8 Standardised Approach (SEC-SA)
9 1250%RWA (by regulatory approach)
10 Internal Ratings-Based Approach (SEC-IRBA)
11 External Ratings-Based Approach (SEC-ERBA)
12 Standardised Approach (SEC-SA)
13 1250%
Capital charge after cap
14 Internal Ratings-Based Approach (SEC-IRBA)
15 External Ratings-Based Approach (SEC-ERBA)
16 Standardised Approach (SEC-SA)
17 1250%

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

312

Quantitative Disclosure Items for Securitization Exposure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Market Risk
See pages 118 to 120 for information regarding our market risk management structure, etc.
(1) Trading Activities
In the calculation of the market risk equivalent amounts under the regulatory capital requirements, the risk arising fromfluctuations in common factors across the market as a whole (e.g. foreign exchange and interest rates, etc.) is referred toas general market risk, and the risk arising from a deterioration in creditworthiness or market liquidity inherent in bonds
and stocks is referred to as specific risk. In principle, we calculate market risk equivalent amounts by determining bothgeneral market risk and specific risk by applying the Internal Models Approach (IMA) to the former and the standardized
approach to the latter, and by simply adding up both amounts. The Internal Models Approach is applied to tradingtransactions and calculated by adding up VAR and stressed VAR.
(A) MR1：Market risk under standardized approach

No.
1
2
3
4
5
6
7
8
9

(Millions of yen)
As of March 31, 2020
RWA
(Risk equivalent / 8%)

Interest rate risk (general and specific)
Equity risk (general and specific)
Foreign exchange risk
Commodity risk
Options
Simplified approach
Delta-plus method
Scenario approach
Securitization
Total

As of March 31, 2019
RWA
(Risk equivalent / 8%)¥428,815
312,525
47,344
182,860¥536,232
288,604
53,471
187,430

7,609
84,777¥1,063,932

37,307
69,297¥1,172,343(B) MR2:RWA flow statements of market risk exposures under IMA(Billions of yen)
A

No.
1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

313

Trading Activities

VAR

RWA as of March 31, 2019
Adjustment to RWA as of March 31, 2019
IMA values as of March 31, 2019
Change in risk levels
Model updates/changes
Breakdown of
Methodology and policychanges during
this reporting
Acquisitions and disposals
periodForeign currency fluctuations
Other
IMA values as of March 31, 2020
Adjustment to RWA as of March 31, 2020
RWA as of March 31, 2020

¥259.0
3.92
66.0
57.1
(4.9)
72.1
190.2
2.11
402.3

B
StressedVAR¥602.8
2.76
217.9
68.3
(100.6)
94.5
280.1
3.60
1,010.6

C

D

E

F

IRC

CRM

Other

Total

¥-

¥-

/
/
/
/
/
/
/
/
/
/
/
/

¥861.8
3.03
283.9
125.4
(105.5)
166.6
470.4
3.00
1,413.0

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen)
A

No.
1a
1b
1c
2
3
4
5
6
7
8a
8b
8c

VAR

RWA as of March 31, 2018
Adjustment to RWA as of March 31, 2018
IMA values as of March 31, 2018
Change in risk levels
Model updates/changes
Breakdown of
Methodology and policychanges during
this reporting
Acquisitions and disposals
periodForeign currency fluctuations
Other
IMA values as of March 31, 2019
Adjustment to RWA as of March 31, 2019
RWA as of March 31, 2019¥269.0
3.02
89.0
27.6
2.8
30.3
(83.9)
66.0
3.92
259.0

B
Stressed
VAR¥794.8
3.72
213.6
29.3
5.7
23.2
(54.1)
217.9
2.76
602.8

C

D

E

F

IRC

CRM

Other

Total

¥-

¥-

(C) MR3：IMA values for trading portfolios
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

(Millions of yen)
As of March 31, 2020

VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Stressed VAR (10 day 99%)
Maximum value
Average value
Minimum value
Period end
Incremental Risk Charge (99.9%)
Maximum value
Average value
Minimum value
Period end
Comprehensive Risk Capital Charge (99.9％)
Maximum value
Average value
Minimum value
Period end
Floor (standardized measurement method)/ ¥1,063.9
/
3.51
/
302.6
/
57.0
/
8.5
/
/
/
53.6
/
(138.0)
/
283.9
/
3.03
/
861.8

As of March 31, 2019¥21,317
8,038
5,022
15,218¥27,114
7,939
4,800
5,280

39,947
21,633
13,614
22,41561,302
21,544
12,623
17,434----

Notes: 1. The historical simulation method is used for the calculation of VAR and stressed VAR under the Internal Models Approach.
2. VAR is measured based on the observation period of 3 years (801 business days), a 99% confidence interval and a 1-day holding period. This 1-day VAR is scaled up to 10business day VAR using the square-root-of-time (√T) rule. We update historical data on a daily basis, in principle, and do not weight such data. When re-pricing instruments,
we use the full revaluation method, a sensitivity-based approach and the like. We consider change width or rate as market volatility of risk factors according to productattributes.
3. When measuring stressed VAR, the same measurement approach as VAR is used except for the observation period of 1 year (265 business days). As a stressed period,
we select a period which has an adequate length of time and is considered the most stressful under a certain set of criteria established based on the most recent portfolio.
4. When applying the internal model, we regularly verify the preconditions used for VAR measurement.

314

Trading Activities2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(D) MR4：Back testing results of IMA
As of March 31, 2020

As of March 31, 2019

Note: The number of cases where VAR on a particular day was exceeded by losses on the following business day for the past 250 business days was 3 in the fiscal year ended March
31, 2020 (0 in the fiscal year ended March 31, 2019). The following details information relevant to the excess incident:
VAR calculation date: August 1, 2019; Amount in excess: JPY 136 million; Primary cause of the excess: Foreign exchange rate fluctuations
VAR calculation date: March 16, 2020; Amount in excess: JPY 215 million; Primary cause of the excess: Interest rate fluctuations
VAR calculation date: March 17, 2020; Amount in excess: JPY 680 million; Primary cause of the excess: Stock price fluctuations(2) Banking Activities
To comply with Interest Rate Risk in the Banking Book (IRRBB) requirements, we are required to calculate expectedchanges in the economic value of equity (ΔEVE) arising from banking activities and expected changes in net interest
income (ΔNII) from the reference date until the date no later than 12 months from the reference date under interest rate
shock scenarios (i.e. parallel up and downwards shifts in the yield curve and the like). ΔEVE and ΔNII change according tochanges in the banking portfolio.
(A) IRRBB1：Interest rate riska

ΔEVE
As of March
As of March
31, 2020
31, 2019

No.
1
2
3
4
5
6
7

b

Parallel up
Parallel down
Steepener
Flattener
Short rate up
Short rate down
Maximum¥901,099
0333,766
102,550
329,962
41,523901,099¥673,609
0357,183
83,150229,43164,517
673,609e
As of March 31, 20208

Tier1 capital¥9,024,404(Millions of yen)d
ΔNII
As of March
As of March
31, 2020
31, 2019
c¥(343,258)
440,507////440,507¥(376,420)
459,808////459,808f
As of March 31, 2019¥9,232,160

Notes: 1. Decreased economic values and interest income are shown as positive values.
2. As for some of those current deposits and ordinary deposits whose interest rates are not changed at predetermined intervals and from which depositors can withdraw
money as desired on demand, we measure the interest rate risk associated with such deposits by applying an appropriate method after recognizing them as core deposits.
The average repricing maturities are 0.7 years for yen deposits and 0.1 years for dollar deposits respectively. The longest repricing maturities are 10.0 years for yen
deposits and 5.0 years for dollar deposits respectively. We measure interest rate risk associated with term deposits and loans in an appropriate manner by estimating theirearly redemption rates based on their historical prepayment and cancellation data.
3. When aggregating the respective ΔEVE of multiple currencies, we use the internal model that estimates the correlations between the key currencies based on historical
data. When aggregating the respective ΔNII of multiple currencies, we simply add their respective ΔNII.
4. For the calculation of ΔEVE and ΔNII, we set an appropriate interest rate and spread according to a certain discount rate and reference rate.
5. When making the calculations above, we use regulatory defined preconditions including an interest rate shock scenario.

315

Trading Activities、Banking Activities2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Investment or Equity Exposure(1) Summary of Risk Profile, Risk Management Policies/ Procedures and StructureWith regard to equities, we manage default risk through our credit risk management structure and price fluctuation risk
through our market risk management structure. With regard to subsidiaries and related companies in which we invest,
we manage their risks on a consolidated basis, and manage them appropriately in accordance with their managementclassification. In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted
market prices are valued based on the average quoted market price over the month preceding the consolidated balance
sheet date; other securities which have readily determinable fair values are valued at the quoted market price if
available, or otherwise based on their reasonable value at the consolidated balance sheet date (cost of securities sold is
calculated primarily by the moving average method); and other securities the fair values of which are extremely difficult
to determine are stated at acquisition cost or amortized cost and determined by the moving average method.

■ Operational risk
(1) Summary of Operational Risk Management and Procedures
See pages 122 to 125 for a summary of our operational risk management policies, etc.
(2) Approach Used for the Measurement of Operational Risk Equivalent
We use the Advanced Measurement Approach for the calculation of operational risk equivalent. See pages ●●● to ●●● a
for the outline of the Advanced Measurement Approach. In the measurement of operational risk equivalent, we do notrecognize the risk mitigating impact of insurance. The following entities have adopted the Advanced Measurement
Approach:Mizuho Financial Group, Inc.; Mizuho Bank., Ltd., Mizuho Trust & Banking Co., Ltd.; Mizuho Securities Co., Ltd.; Mizuho
Information & Research Institute, Inc.; Mizuho Operation Service, Ltd.; Mizuho Credit Guarantee Co., Ltd.; Mizuho
Business Service Co., Ltd.; Mizuho Trust Operations Co., Ltd.; Mizuho Trust Systems Co., Ltd.; Mizuho Trust Business
Operations Co., Ltd.; Mizuho Trust Retail Support Co., Ltd.; Mizuho Bank Europe N.V.; and Mizuho International plc.

316

Summary of Risk Profile, Risk Management Policies/ Procedures and Structure、Summary of Operational Risk Management and Procedures、Approach
Used for the Measurement of Operational Risk Equivalent

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Composition of Leverage Ratio(Millions of yen, except percentage)
Correspon Correspon
ding line # ding line #on Basel on Basel
As of March 31, As of March 31,
Item
III
III
2020
2019
disclosure disclosure
template
template(Table 2) (Table 1)(1)
On-balance sheet exposures
On-balance sheet exposures before deducting adjustment items¥176,472,143¥170,866,057
1
Total assets reported in the consolidated balance sheet
1
214,659,077
200,792,226
1a
The amount of assets of subsidiaries that are not included in
1b
2
the scope of the leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope
1c
7of the leverage ratio on a consolidated basis (except those includedin the total assets reported in the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
1d
3
38,186,933
29,926,169
consolidated balance sheet (except adjustment items) (-)
The amount of adjustment items pertaining to Tier1 capital (-)
27
1,120,264
1,338,983
Total on-balance sheet exposures(a) ¥175,351,879
3¥169,527,074(2)
Exposures related to derivative transactions
RC multiplied by 1.4 associated with derivatives transactions, etc.
4
Replacement cost associated with derivatives transactions, etc.
2,913,469
1,965,230
PFE multiplied by 1.4 associated with derivatives transactions, etc.
5
Add-on amount associated with derivatives transactions, etc.
6,853,455
6,846,996
The amount of receivables arising from providing cash margin885,366
1,480,143
in relation to derivatives transactions, etc.
The amount of receivables arising from providing collateral,
6
provided where deducted from the consolidated balance
sheet pursuant to the operative accounting framework
The amount of receivables arising from providing cash
266,007
130,942
margin, provided where deducted from the consolidatedbalance sheet pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising7
from providing cash variation margin) (-)
The amount of client-cleared trade exposures for which abank holding company acting as a clearing member is not//
8
obliged to make any indemnification (-)
Adjusted effective notional amount of written credit derivatives
1,827,558
1,469,165
9
The amount of deductions from effective notional amount of
10
1,655,992
1,350,813
written credit derivatives (-)(b)
Total exposures related to derivative transactions¥11,684,642¥9,946,886
11
4(3)
Exposures related to repo transactions
The amount of assets related to repo transactions, etc.
1220,824,650
15,575,762
13
The amount of deductions from the assets above (line 12) (-)
5,439,650
4,961,226
The exposures for counterparty credit risk for repo
14836,282
457,242transactions, etc.
The exposures for agent repo transactions
15//
Total exposures related to repo transactions, etc.
(c)16
5¥16,221,282¥11,071,778(4)
Exposures related to off-balance sheet transactions
Notional amount of off-balance sheet transactions
17
41,023,520
41,344,892
The amount of adjustments for conversion in relation to off18
23,303,756
23,333,230
balance sheet transactions (-)
Total exposures related to off-balance sheet transactions(d)19
6¥17,719,764¥18,011,661(5)Leverage ratio on a consolidated basis
The amount of capital (Tier1 capital)(e)20
9,024,404
9,232,160
Total exposures ((a)+(b)+(c)+(d))(f) ¥220,977,568
21
8¥208,557,401
Leverage ratio on a consolidated basis ((e)/(f))
22
4.08%
4.42%
Note: As an external audit of calculating the leverage ratio on a consolidated basis, we underwent an examination under the procedures agreed with by
Ernst & Young ShinNihon LLC, on the basis of "Practical guidance on agreed-upon procedures for the calculation of capital adequacy ratio andleverage ratio" (Practical Guideline for specialized fields No. 4465 of the Japanese Institute of Certified Public Accountants). Note that thisexamination is not a part of the audit performed on our consolidated financial statements or internal controls over financial reporting. Ernst & Young
ShinNihon LLC does not give its opinion or conclusion concerning the leverage ratio or our internal control structure regarding the calculation of theleverage ratio. Instead, it performs an examination to the extent both of us agreed to and reports the results to us.

317

Composition of Leverage Ratio

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ TLAC Regulations(1) TLAC1: TLAC composition for G-SIBs (at resolution group level)(Millions of yen, except percentage)ab
Basel III
Template
Items
As of March 31, As of March 31,
No.
2020
2019
(1)
Preferred resolution strategy
The SPE (Single Point of Entry) resolution strategy is considered to be the preferred resolution
strategy for Mizuho Financial Group, Inc. (MHFG) and its subsidiaries.
More concretely, at the time of a stress, following the relevant authority's determination that one
or more of the material sub-groups, i.e. Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd.
and Mizuho Securities Co., Ltd. have reached the point of non-viability, losses incurred to themwould be passed to MHFG, the ultimate holding company. While this could lead to a resolutionof MHFG, the material sub-groups are expected to continue their business as usual under theSpecified Bridge Financial Institution, etc. incorporated by the Deposit Insurance Corporation ofJapan (DICJ) to which MHFG transfers its business.
(2)
Regulatory capital elements of TLAC and adjustments(A)
1
Common Equity Tier 1 capital (CET1)¥7,244,776¥7,390,058
Additional Tier 1 capital (AT1) before TLAC adjustments
2(B)
1,779,627
1,842,102
3
AT1 ineligible as TLAC as issued out of subsidiaries to third parties (C)Other adjustments
4(D)
5
AT1 instruments eligible under the TLAC framework ((B)-(C)-(D))
1,779,627
1,842,102(E)(F)
6Tier 2 capital (T2) before TLAC adjustments
1,697,873
1,685,347(256,731)(189,764)
Amortised portion of T2 instruments where remaining maturity > 1 year (G)7
T2 capital ineligible as TLAC as issued out of subsidiaries to third parties(H)
8
9
Other adjustments
210,907
189,401(I)(J)
10
T2 instruments eligible under the TLAC framework ((F)-(G)-(H)-(I))
1,743,698
1,685,711(K)
11
TLAC arising from regulatory capital ((A) + (E) + (J))
10,768,102
10,917,871(3)
Non-regulatory capital elements of TLAC
External TLAC instruments issued directly by the bank and(L)
123,506,196
2,537,990
subordinated to excluded liabilities
External TLAC instruments issued directly by the bank which are not subordinated//13
to excluded liabilities but meet all other TLAC term sheet requirements
14of which: amount eligible as TLAC after application of the caps//
External TLAC instruments issued by funding vehicles prior to 1 January 2022
/
/
15
(M)
16
Eligible ex ante commitments to recapitalise a G-SIB in resolution
1,553,530
1,447,489(N)
TLAC arising from non-regulatory capital instruments before
5,059,726
3,985,479
17
adjustments ((L) + (M))(4)
Non-regulatory capital elements of TLAC: adjustments(O)
18
TLAC before deductions ((K) + (N))
15,827,828
14,903,350
Deductions of exposures between MPE resolution groups that(P)
19
correspond to items eligible for TLAC (not applicable to SPE G-SIBs)(Q)
20
Deduction of investments in own other TLAC liabilities
3,441
2,587
(R)
21
Other adjustments to TLAC
(S)
22
TLAC after deductions ((O)-(P)-(Q)-(R))
15,824,386
14,900,763(5)
Risk-weighted assets and leverage exposure measure for TLAC purposes(T)
23
Total RWA
62,141,217
57,899,567(U)
24
Leverage ratio exposure measure
220,977,568
208,557,401(6)
TLAC ratios and buffers
TLAC before deduction of CET1 specific buffer requirement (as a2525.46%
25.73%
percentage of RWA) ((S)/(T))
TLAC as a percentage of RWA
21.95%
22.18%
25a
26
TLAC as a percentage of leverage ratio exposure measure ((S)/(U))
7.16%
7.14%
CET1 available after meeting the bank's minimum capital requirements
7.15%
8.26%
27
28
3.51%
3.55%
Total of bank CET1 specific buffer requirements
29of which: capital conservation buffer requirement
2.50%
2.50%
of which: countercyclical buffer requirement
30
0.01%
0.05%
of which: bank G-SIB/D-SIB additional requirements
31
1.00%
1.00%

318

TLAC Regulations

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) TLAC2:Material subgroup entity – creditor ranking at legal entity level(Millions of yen)Mizuho Bank (Non-consolidated)
As of March 31, 2019
Creditor ranking
Basel III
Items
Template
1
Is the resolution entity the creditor/investor?
2

Description of creditor ranking

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 6 that is perpetual securities

10
11

1
most junior
✓
-

2

3

4

✓
Eligible Tier 2 capital
Other internal
Additional Tier 1 Tier 2 capital instruments subject
Common
TLAC eligible
capital instruments instruments
to phase-out
equityinstruments
arrangements
3,690,389- 1,873,004- 1,168,772- 166,515 601,000 2,537,990- 10,037,671
3,690,389- 1,873,004- 1,168,772- 166,515 601,000 2,537,990- 10,037,671
3,690,389- 1,570,000- 1,002,257- 2,537,990- 8,800,637- 1,480,946- 1,480,946- 907,257- 946,034- 1,853,291

3,690,389-

Sum of
1 to 55
most senior
✓
-

✓

-

-

✓

-

-

95,000---111,010- 1,570,000

-

-

-

-

-

-

-

206.010- 5,260,389*1 : Additional Tier1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements issued by SPC (303,000 million yen)

(Millions of yen)Mizuho Bank (Non-consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Items
Template
1
Is the resolution entity the creditor/investor?
2

Description of creditor ranking

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 6 that is perpetual securities

10
11

319

TLAC Regulations

1
most junior
✓
-

2

3

4

✓
Eligible Tier 2 capital
Other internal
Additional Tier 1 Tier 2 capital instruments subject
Common
TLAC eligible
capital instruments instruments
to phase-out
equityinstruments
arrangements
3,690,389- 1,805,004- 1,391,867- 163,245 393,000 3,506,196- 10,949,702
3,690,389- 1,805,004- 1,391,867- 163,245 393,000 3,506,196- 10,949,702
3,690,389- 1,805,000- 1,228,622- 3,506,196- 10,230,208- 864,017- 864,017- 105,000- 1,317,283- 1,422,283- 1,023,622- 1,044,705- 2,068,327

3,690,389-

Sum of
1 to 55
most senior
✓
-

✓

-

-

✓

-

-

100,000---

280,190- 1,805,000

-

-

-

-

-

-

-

380,190- 5,495,389

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
As of March 31, 2019
Creditor ranking
Basel III
Template
1

Items
Is the resolution entity the creditor/investor?

1
most junior✓-

2✓
Eligible Tier 2 capital instruments
subject to phase-out arrangements
10,00010,000-Sum of 1
to 3
3
most senior✓
Other internal TLAC eligible
instruments- 272,874- 272,874- 262,874-

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity , but
excluding perpetual securities
Subset of row 6 that is perpetual securities

262,874
262,874
262,874
-

-

-

-

-

-

-

-

-

262,874

-

-

-

-

-

262,87410
11(Millions of yen)Mizuho Trust & Banking (Non-consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Template
1

Items
Is the resolution entity the creditor/investor?

1
most junior✓-

2✓
Eligible Tier 2 capital instruments
subject to phase-out arrangements
10,00010,000-Sum of 1
to 3
3
most senior✓
Other internal TLAC eligible
instruments- 272,874- 272,874- 262,874-

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity , but
excluding perpetual securities
Subset of row 6 that is perpetual securities

262,874
262,874
262,874
-

-

-

-

-

-

-

-

-

262,874

-

-

-

-

-

262,874

10
11

320

TLAC Regulations

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Millions of yen)Mizuho Securities (Non-consolidated)
As of Mrach 31, 2019
Creditor ranking
Basel III
Template
1

Items
Is the resolution entity the creditor/investor?

1
most junior✓-

Sum of 1
to 3
32
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
90,000- 596,816
90,000- 596,816- 506,816-

2

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity, but
excluding perpetual securities
Subset of row 6 that is perpetual securities

485,530
485,530
485,530-

21,286
21,286
21,286
-

-

-

-

-

-

-

-

485,530

21,286----

506,816

10
11(Millions of yen)Mizuho Securities (Non-consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Template
1

Description of creditor ranking

Common equity

3
4
5
6
7
8
9

Total capital and liabilities net of credit risk mitigation (A)Subset of row 3 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) -(B) )Subset of row 5 that are eligible as TLAC
Subset of row 6 with 1 year ≤ residual maturity < 2 years
Subset of row 6 with 2 years ≤ residual maturity < 5 years
Subset of row 6 with 5 years ≤ residual maturity < 10 years
Subset of row 6 with 10 years ≤ residual maturity, but
excluding perpetual securities
Subset of row 6 that is perpetual securities

485,530
485,530
485,530-

21,286
21,286
21,286
-

-

-

-

-

-

-

-

485,530

21,286----

506,816

11

TLAC Regulations

Is the resolution entity the creditor/investor?

Sum of 1
to 3
32
most senior✓✓Long-term subordinated
Other internal TLAC
debt/Short-term subordinated debt
instruments
90,000- 596,816
90,000- 596,816- 506,816
-

2

10

321

Items

1
most junior✓-2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(3) TLAC3:Resolution entity – creditor ranking at legal entity level(Millions of yen)Mizuho Financial Group (Non-Consolidated)
As of March 31, 2019
Creditor ranking
Basel III
Template

Items

1

Description of creditor ranking

2
3
4
5
6
7
8

Total capital and liabilities net of credit risk mitigation (A)Subset of row 2 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) - (B))
Subset of row 4 that are eligible as TLAC
Subset of row 5 with 1 year ≤ residual maturity < 2 years
Subset of row 5 with 2 years ≤ residual maturity < 5 years
Subset of row 5 with 5 years ≤ residual maturity < 10 years
Subset of row 5 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 5 that is perpetual securities

9
10

1
2
most junior
Additional Tier 1
Commoncapital instruments
equity3,453,440
1,873,000
3,453,440
1,873,000
3,453,440
1,873,000-

Tier 2 capital
instruments
1,335,287
1,335,287
1,335,287
333,030
907,257

4
most senior
Unsecuredsenior debts
2,542,714
4,724
2,537,990
2,537,990
1,480,946
946,0343

Sum of 1 to 4

9,204,443
4,724
9,199,718
9,199,718
1,813,976
1,853,291--

95,000111,010206,010

3,453,440

1,873,000--

5,326,440*1 :Additional Tier1 capital instruments include eligible Tier 1 capital instruments subject to phase-out arrangements issued by SPC (303,000 million yen)
*2 :Tier2 capital instruments include eligible Tier 2 capital instruments subject to phase-out arrangements issued by SPC (166,515 million yen)
*3 :Internal transactions are excluded from unsecured senior debts*4 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts(Millions of yen)Mizuho Financial Group (Non-Consolidated)
As of March 31, 2020
Creditor ranking
Basel III
Template

Items

1

Description of creditor ranking

2
3
4
5
6
7
8

Total capital and liabilities net of credit risk mitigation (A)Subset of row 2 that are excluded liabilities (B)Total capital and liabilities less excluded liabilities ((A) - (B))
Subset of row 4 that are eligible as TLAC
Subset of row 5 with 1 year ≤ residual maturity < 2 years
Subset of row 5 with 2 years ≤ residual maturity < 5 years
Subset of row 5 with 5 years ≤ residual maturity < 10 years
Subset of row 5 with 10 years ≤ residual maturity,but
excluding perpetual securities
Subset of row 5 that is perpetual securities

9
10

1
2
most junior
Additional Tier 1
Commoncapital instruments
equity3,453,427
1,805,000
3,453,427
1,805,000
3,453,427
1,805,000-

3Tier 2 capital
instruments
1,555,112
1,555,112
1,555,112
431,490
1,023,622

Sum of 1 to 44
most senior
Unsecuredsenior debts
3,511,476 10,325,015
5,280
5,280
3,506,196 10,319,735
3,506,196 10,319,735
864,017864,017
1,317,283
1,748,773
1,044,705
2,068,327--

100,000

280,190

380,190

3,453,427

1,805,000--

5,258,427*1 :Tier2 capital instruments include eligible Tier 2 capital instruments subject to phase-out arrangements issued by SPC (163,245 million yen)
*2 :Internal transactions are excluded from unsecured senior debts*3 :Excluded liabilities are recognized on a conservative basis in consideration of the materiality of the amounts

322

TLAC Regulations

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer(1) CCyB1: Geographical distribution of credit exposures used in the countercyclical buffer(Millions of yen, except percentage)
As of March 31, 2020abcd
Risk-weighted assets
GeographicalCountercyclicalused in the computation CountercyclicalCountercyclicalbreakdown
buffer rateof the countercyclicalbuffer requirements
buffer amountbufferFrance0.25%
235,298//
Hong Kong SAR
1.00%
525,507//
Luxembourg
0.25%
252,773//
Subtotal/
1,013,578
/
/
Total
/
49,862,640
0.01%
6,214
Notes: Credit risk-weighted assets used in the computation of the countercyclical buffer of each country or region are calculated based on wherecounterparties are located.
Some equity exposures, regarded-method exposures, securitization exposures and standardized approach portion which are difficult to calculate
based on the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

(Millions of yen, except percentage)
As of March 31, 2019aGeographicalbreakdownCountercyclicalbuffer rate

Hong Kong SAR
SwedenUnited Kingdom
Subtotal
Total

2.50%
2.00%
1.00%
/
/

b
Risk-weighted assets
used in the computationof the countercyclicalbuffer506,90338,767
1,294,630
1,840,301
46,499,620cdCountercyclicalbuffer requirements

Countercyclicalbuffer amount

/
/
/
/
0.05%

/
/
/
/
28,949Notes: Credit risk-weighted assets used in the computation of the countercyclical buffer of each country or region are calculated based on wherecounterparties are located.
Some equity exposures, regarded-method exposures, securitization exposures and standardized approach portion which are difficult to calculate
based on the locations of counterparties, are calculated based on the country or region in which the reporting office is located.

■Indicators for Assessing Global Systemically Important Banks (G-SIBs)(1) GSIB1:Disclosure of G-SIB indicators
Category
1
2
3
4
5
6
7
8
9
10
11
12

Cross-jurisdictional
activity
SizeInterconnectedness
Substitutability /Financial institution
infrastructure
Complexity

Individual indicator
Cross-jurisdictional claims
Cross-jurisdictional liabilities
Total exposures
Intra-financial system assets
Intra-financial system liabilities
Securities outstanding
Assets under custody
Payment activity
Underwritten transactions in debt and equity markets
Notional amount of over-the-counter derivatives
Level 3 assets
Trading and available for sale securities(Millions of yen)
As of March 31, As of March 31,
2020
2019
57,180,192
50,199,293
40,186,448
32,082,253
222,097,832
209,896,384
14,160,806
12,963,646
18,733,603
17,843,309
26,108,286
27,330,280
80,709,479
74,795,019
4,997,671,697 4,597,783,411
15,291,594
15,764,776
1,366,796,397 1,325,053,254
2,245,462
1,941,045
11,063,839
10,073,336

323

Geographical Distribution of Credit Exposures Used in the Countercyclical Buffer、Indicators for assessing Global Systemically Important Banks(G-SIBs)

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

■Liquidity Coverage Ratio
The information disclosed herein is in accordance with "The matters pertaining to the criteria to determine the soundness ofliquidity risk among the matters separately prescribed by the Commissioner of the Financial Services Agency regarding the status
of sound management, pursuant to Article 19-2, Paragraph 1, Item 5, Sub-item (e) , etc. of the Ordinance for Enforcement of the
Banking Law " (the FSA Notice No. 7 of 2015).

(1) Disclosure of quantitative information regarding Liquidity Coverage Ratio(In million yen, the number of data)
Item

For the three months ended March 31, 2020

High-Quality Liquid Assets
1

Cash Outflows
2
3
4
5
6
7
8
9
10
11

(1)

Total high-quality liquid assets (HQLA)(2)Cash outflows related to unsecured retail fundingof which, Stable depositsof which, Less stable deposits
Cash outflows related to unsecured wholesalefundingof which, Qualifying operational deposits

For the three months ended December 31, 2019//¥60,112,726¥60,243,374

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

48,616,795

3,859,023

48,279,023

3,833,296

14,361,294

430,838

14,246,898

427,406

34,255,501

3,428,184

34,032,125

3,405,889

72,817,754

40,494,663

69,709,084

37,607,713

0

0

0

0

of which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securities

66,075,405

33,752,315

64,728,667

32,627,296

of which, Debt securities

6,742,348

6,742,348

4,980,416

4,980,416/

1,203,274/

1,126,131

26,238,200

7,515,673

26,615,223

7,514,326

1,833,817

1,833,817

1,767,441

1,767,441

24,88824,88825,001

25,001

Cash outflows related to secured funding, etc
Cash outflows related to derivative transactions,etc. funding programs, credit and liquidity facilitiesof which, Cash outflows related to derivatives
transactions, etc

12of which, Cash outflows related to funding
programs

13of which, Cash outflows related to credit andliquidity facilities

24,379,494

5,656,967

24,822,780

5,721,883

14

Cash outflows, etc. related to contractual funding
obligations

6,589,594

1,613,664

5,798,066

1,736,961

15

Cash outflows related to contingencies

73,458,163

616,388

75,502,091

689,283

16

Total cash outflows/

55,302,688/

52,507,712

TOTAL UNWEIGHTEDVALUETOTAL WEIGHTEDVALUETOTAL UNWEIGHTEDVALUETOTAL WEIGHTED
VALUE

Cash inflows related to secured lending andinvestments, etc.

15,790,776

1,429,714

14,852,485

1,229,494

18

Cash inflows related to collections of loans, etc

11,389,660

7,802,354

10,643,373

7,384,318

19

Other cash inflows

8,311,483

2,253,862

6,885,131

2,093,841

20

Total cash inflows

35,491,920

11,485,932

32,380,991

10,707,654

Cash Inflows
17

Consolidated liquidity coverage ratio

(3)

(4)

/

/

21

Total HQLA allowed to be included in thecalculation/

60,112,726/

60,243,374

22

Net cash outflows/¥43,816,756/¥41,800,058

23

Consolidated liquidity coverage ratio/

137.3%/

144.1%

24

The number of data used to calculate the average
value

58

62

324

Liquidity Coverage Ratio

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory Disclosures

Status of Sound Management of Liquidity Risk

(2) Disclosure of qualitative information regarding Liquidity Coverage Ratio(A) Chronological changes in Liquidity Coverage Ratio
Our Consolidated LCR has remained stable over the past two years.
(B) Evaluation of the consolidated Liquidity Coverage Ratio Level
Our Consolidated LCR surpasses the final regulatory standard (100%), with no issues. Our Consolidated LCR disclosed
herein does not differ significantly from our original expectations, and we do not expect our Consolidated LCR to deviatesignificantly from the current level in the future.
(C) Composition of the total HQLA allowed to be included in the calculation
There are no significant changes in the composition, such as by currency or type, and geographic distribution of the HQLA
allowed to be included in the calculation. In addition, there is no significant currency mismatch between total amount of the
HQLA allowed to be included in the calculation and net cash outflow regarding main currencies (those currencies of which
the aggregate liabilities denominated amount to 5% or more of our total liabilities).
(D) Other matters regarding the Liquidity Coverage Ratio
We do not apply the "exception regarding qualifying operational deposits" in Article 28 of the Notice No. 62 and "theamount of additional collateral required due to market valuation changes to derivatives transactions estimated by the
scenario approach" in Article 37 of the Notice No. 62. "Cash outflows from other contracts" in Article 59 of the Notice No.
62 incluedes "cash outflows related to small consolidated subsidiaries." There are no material items that require detailed
explanation of "cash outflows from other contingent events" in Article 52 of the Notice No. 62 and "cash inflows from othercontracts" in Article 72 of the Notice No. 62. Monthly or quarterly data is used for our consolidated subsidiaries.

325

Liquidity Coverage Ratio

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Status of Major Liquid Assets(Billions of yen)
Item

As of March 31, 2020 As of March 31, 2019

Cash and Due from Banks (including Due from Central Banks)
Trading Securities
Securities
Bonds Held to Maturity
Other Securities
Japanese Stocks
Japanese Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other¥41,069.7
5,377.1
33,978.7
860.2
33,118.5
2,338.4
15,702.5
12,601.9
272.5
2,828.0
15,077.6
12,702.2
2,375.3

Total¥45,108.6
5,968.8
29,135.0
1,602.2
27,532.8
3,143.5
14,786.9
11,896.1
209.8
2,680.9
9,602.3
7,418.3
2,183.9

80,425.7

80,212.4

Portion pledged as collateral(9,478.3)(9,691.9)

Total after the deduction above¥70,947.3¥70,520.5

Notes: 1. All securities included in the above table have fair value.
2. Portion pledged as collateral mainly consists of securities and others collateralized for borrowed money, foreign and domestic exchange transactions or derivatives
transactions,or substituted for margins for futures transactions.
3. Figures in the above table do not represent high quality liquid assets.

■ Status of Major Funding(Billions of yen)
As of March 31, 2020
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years Over 10 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥127,327.0
12,985.2
2,263.0
4,104.9373.6
456.0
1,055.5¥2,904.2
232.2
376.2
2,153.5-¥742.666.2
192.5
1,503.1
-

¥46.1
220.4
1,170.8
-

¥42.6
112.9
1,126.6-¥126.8
202.7
676.5
-

Total

¥148,565.5¥5,666.3¥2,504.6¥1,437.5¥1,282.2¥1,006.1(Billions of yen)

As of March 31, 2019
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years Over 10 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥120,184.3
12,964.4
2,841.9970.3
355.5
1,010.3
1,102.0¥3,166.2
377.4
1,058.9
1,494.3-¥703.8304.2
1,158.4
-

¥61.6
258.0
1,014.6
-

¥53.9
225.2
1,464.8-¥140.9
244.7
623.7
-

Total

¥139,429.0¥6,096.9¥2,166.5¥1,334.3¥1,744.0¥1,009.5

Notes: 1. Regarding Deposits, Demand deposits are included in "Within 1 year"
2. Borrowed money or issued bonds with open ended, 0.0 billion, 1,585.0 billion, respectively, at March 31, 2019, and 0.0 billion, 1,820.0 billion, respectively, at March 31,
2020, are excluded.

326

Liquidity Coverage Ratio

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory DisclosuresCompensation of Directors and Employees■ Compensation of Directors and Employees(1) Qualitative Disclosure(A) State of the Organizational System Relating to Compensation of "Subject Directors and Employees" of Mizuho
Group
1. Scope of "Subject directors and employees""Subject directors, etc." and "Subject employees, etc." subject to disclosure as provided for in the FSA Notice(collectively, "Subject directors and employees") are as follows:(1) Scope of "Subject directors, etc.""Subject directors, etc." are directors and executive officers as defined in the Companies Act of Mizuho Financial
Group, Inc. ("MHFG"). Outside directors are excluded.
(2) Scope of "Subject employees, etc.""Subject employees, etc." who are subject to disclosure are executive officers (as defined in our internal regulations),
specialist officers and employees of MHFG and directors and employees of its "Major consolidated subsidiaries",
who are "persons who receive large amounts of compensation" and "materially affect the operation of business or
the state of assets of Mizuho group or its major consolidated subsidiaries."(a) Scope of "Major consolidated subsidiaries"
A "Major consolidated subsidiary" is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. ("MHBK"), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
("MHTB"), Mizuho Securities Co., Ltd. ("MHSC"), Mizuho Securities USA Inc. and Mizuho International Plc.
(b) Scope of "Persons who receive large amounts of compensation"
A "Person who receives large amounts of compensation" refers to a person who receives compensation thatexceeds the base amount from MHFG or its "Major consolidated subsidiaries." The base amount at MHFG has
been set at ¥60 million. Such base amount has been set based on the average amounts of the compensation of
directors and executive officers (as defined in the Companies Act) of MHFG, MHBK and MHTB for the last threefiscal years (excluding persons who resigned or retired during each of such fiscal years), taking into accountfluctuations in amounts of compensation over past fiscal years. The preceding base amount has been adopted
as the common base in order to unify the selection criteria of persons who receive large amounts ofcompensation at each of the companies in this paragraph.
(c) Scope of "Persons who materially affect the operation of business or the state of assets of Mizuho group"
A "Person who materially affects the operation of business or the state of assets of Mizuho group" means aperson who exerts significant influence on the operation of the business of MHFG or a "Major consolidated
subsidiary" through his or her work in conducting transactions or management, or who materially affects the stateof assets by incurring losses on transactions. Specifically, it includes executive officers (as defined in our internal
regulations) and specialist officers of MHFG and directors, executive officers (as defined in our internal
regulations), specialist officers and market department employees of "Major consolidated subsidiaries."
2. Decisions on compensation of "Subject directors and employees" and the name, composition and duties of thecommittee to supervise business execution and other major organizations relating to payment of compensation andother compensation, etc.
(1) State of maintaining and ensuring the Compensation Committee, etc.
MHFG is a Company with Three Committees, and has established the Compensation Committee as a statutory
committee.
The chairman of the statutory Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least non-executive directors) in order to ensure
objectivity and transparency in director and executive officer compensation. As of March 2020, all four members of
the Compensation Committee, including the chairman, were outside directors. The Compensation Committee shalldetermine the basic policy and compensation system for directors and executive officers of MHFG, MHBK, MHTB
and MHSC, determine the compensation for each individual director and executive officer (as defined in the
Companies Act) of MHFG, and exercise approval rights in MHFG for compensation for each individual director of
MHBK, MHTB and MHSC.
In addition, the president of each of MHBK, MHTB and MHSC determines the amount of compensation for each of
its executive officers and specialist officers.

327

Qualitative disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Decisions on compensation of "Subject employees, etc."
Matters relating to executive officers (as defined in our internal regulations) and specialist officers of MHFG anddirectors, executive officers (as defined in our internal regulations) and specialist officers of MHBK, MHTB and
MHSC are as set out in (1) State of maintaining and ensuring the Compensation Committee, etc.. With regard to thecompensation of directors of MHBK, MHTB and MHSC, it is determined through approval by the Compensation
Committee, pursuant to each statutory procedure for directors who are Audit & Supervisory Committee Members
and for directors who are not Audit & Supervisory Committee Members, and set within the scope of the total amountof compensation of directors resolved at the ordinary general meeting of shareholders.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the "Major consolidated subsidiaries." Such system is designed and put into writing by thehuman resources departments of MHFG and the "Major consolidated subsidiaries" which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee
Number of meetings held
(April 2019 – March 2020)
Compensation Committee(MHFG)

3

Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the execution of duties by thecompensation committee.

(B) Evaluating the Appropriateness of the Design and Operation of the System Relating to Compensation of"Subject Directors and Employees" of Mizuho Group
1. Policies relating to compensation(1) Policies relating to compensation of "Subject directors, etc. "MHFG set out the “Mizuho Financial Group Compensation Policy” concerning the determination of compensation foreach individual director, executive officer and specialist officer (“Officers, etc.”) of MHFG as well as MHBK, MHTB
and MHSC (the “Three Core Companies”).
a. Philosophy and objectives
Executive compensation for MHFG and the Three Core Companies pursuant to such policy is determined based on
appropriate governance and control, and aims to function as incentive and compensation for each Officer, etc., toexercise their designated function to the fullest in our efforts to realize management that contributes to value creationfor various stakeholders and improve corporate value through continuous and stable corporate growth based on ourbasic management policies under our Corporate Identity.
b. Basic Policy
The basic policy with respect to the determination concerning the individual compensation of Officers, etc., of MHFG
and the Three Core Companies is set forth below:(i) The executive compensation shall be determined based on appropriate governance and control, and function as an
appropriate incentive in order to realize management that contributes to value creation for various stakeholders andimprove corporate value through continuous and stable corporate growth based on our basic management policies
under our Corporate Philosophy.
(ii) The executive compensation shall be based on the function and responsibility assigned to and the performance ofeach Officer, etc.
(iii) The executive compensation shall contribute to suppressing excessive risk-taking, improving corporate value andcreating value for various stakeholders not only in the short-term, but also over the medium- to long-term.
(iv) The executive compensation shall reflect the management environment and business performance of our group.
(v) The executive compensation shall enable compensation for securing expert personnel such as professionals witha competitive edge in the market.

328

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Basel Regulatory DisclosuresCompensation of Directors and Employees(vi) The compensation system and standards shall be timely and appropriately reevaluated and set at a competitive
and appropriate standard based on such factors as the economic and social conditions and survey data withrespect to management compensation provided by external specialized organizations.
(vii) Regulations and guidelines, etc., concerning executive compensation, both in Japan and overseas, shall becomplied with.
c. Compensation System
I. Compensation for Officers, etc., shall, in principle, consist of a “Basic Salary,” “Performance Payment” and “Stock
Compensation.”(i) “Basic Salaries” shall factor in the function and responsibility of each Officer, etc., in addition to the standard
amount for each position and payment will be made monthly in cash.
(ii) “Performance Payments” shall be made as a monetary incentive for Officers, etc., to achieve the annual budget
and as compensation for their achievement. The payment thereof shall reflect the results of organizations (our inhouse companies and units, etc.) that each Officer, etc., is in charge of and the performance of each Officer, etc., inaddition to the standard amount for each position. A system shall be adopted which, based on resolution by theCompensation Committee, etc., enables certain amount of deferred payments of the performance payments overthree years, as well as a decrease or forfeiture of the deferred amount depending on performance, etc., of thecompany or the individual.
(iii) “Stock Compensation” shall be paid in the form of shares of common stock of MHFG consisting of “Stock
Compensation I” and “Stock Compensation II,” (together “Stock Compensation I and II”) acquired from the stock
market through a trust with an aim to align the interests of Officers, etc., with those of the shareholders andincrease the incentive to enhance corporate value.
(a) “Stock Compensation I” shall be paid at the time of retirement of each Officer, etc., in the form of shares ofcommon stock of MHFG calculated based on each position. A system shall be adopted which enables a decreaseor forfeiture of the amount by resolution of the Compensation Committee, etc., depending on performance of thecompany or the individual.
(b) “Stock Compensation II” shall be paid in accordance with the status of achieving our 5-Year Business Plan in
addition to the standard amount for each position. A system shall be adopted which enables the entire amount ofdeferred payments over three years, as well as a decrease or forfeiture of the deferred amount by resolution of theCompensation Committee, etc., depending on performance of the company or the individual.
II. Within the Officers, etc., the compensation system for the executive officers as defined in the Companies Act, thedirectors, the executive officers as defined in our internal regulations and the specialist officers responsible forbusiness execution (the "Officers Responsible for Business Execution") shall be separate from the compensation
system for the directors responsible for management supervision ("Non-Executive Officers Responsible forManagement Supervision").
(i) The basic compensation system for "Officers Responsible for Business Execution" shall be a “Basic Salary,”“Performance Payment” and “Stock Compensation I and II.”(a)The composition of the compensation shall, in principle, be 50%, 17.5% and 32.5% for “Basic Salary,”“Performance Payment” and “Stock Compensation I and II” respectively.
(b) “Performance Payment” shall be paid, in principle, within the range of 0% to 170% of the standard amount foreach position.
(c) “Stock Compensation II” shall be paid, in principle, within the range of 0% to 130% of the standard amount foreach position.
(ii) The compensation for Non-Executive Officers Responsible for Management Supervision, in principle, shall be in
the form of fixed compensation from the perspective of ensuring the effectiveness of the supervisory function. The
compensation system shall consist of “Basic Salaries” and “Stock Compensation” and the composition shall, in
principle, be 85% and 15% for “Basic Salaries” and “Stock Compensation,” respectively.

329

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III. There are cases where compensation for some personnel, including those officers recruited locally in countries
other than Japan, may be designed individually in compliance with local compensation regulations while taking into
consideration local compensation practices and the responsibilities, business characteristics and market value, etc.,
of each respective officer.
For cases where compensation is designed individually, payment of compensation is also made in accordance withthe performance of the company or the individual. Payment of compensation is designed to avoid excessive risktaking through a system which enables certain amount or a portion of deferred payments and non-monetary
payments such as stock, as well as a decrease or forfeiture of the deferred amount depending on the performance,
etc., of the company or the individual.
d. Compensation Determination Process
I. The Compensation Committee shall determine the determination policy of executive compensation for MHFG and
the Three Core Companies and the executive compensation system including the compensation system set out in“Compensation System” in order to effectively secure the transparency and objectivity of compensation, etc., forindividual Officers, etc. In addition, the Compensation Committee shall determine the compensation for eachindividual director and executive officer, as defined in the Companies Act, of MHFG and approve at MHFG thecompensation of each individual director of the Three Core Companies.
II. The President & CEO, pursuant to this policy and regulations and detailed rules, etc., shall determine thecompensation for each executive officer, as defined in our internal regulations, and specialist officer of MHFG andapprove at the MHFG the compensation of each individual executive officer and specialist officer of the Three Core
Companies.
III. The Compensation Committee will verify the validity of the compensation system and standards based on
economic and social conditions and survey data with respect to management compensation provided by external
specialized organizations.
IV. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the Chairman thereof shall be an outside director.
V. The Compensation Committee may have officers who are not members of the committee (including officers of theThree Core Companies) such as the President & CEO and external experts, etc., attend its meetings and provide
their opinion in order to facilitate adequate and appropriate discussions and determinations.
(2) Policies relating to compensation of "Subject employees, etc."
The policies relating to compensation for executive officers (as defined in our internal regulations) and specialist
officers of MHFG and directors, executive officers (as defined in our internal regulations) and specialist officers of
MHBK, MHTB and MHSC are also the same as the policies described in (1) Policies relating to compensation of"Subject directors, etc." above. Compensation for other employees, etc., is determined in accordance with theirduties and responsibilities. Some bonuses that are linked to performance are determined after comprehensively
evaluating the employee’s contribution to business, including any qualitative contributions to the organization, in amanner that does not place an excessive emphasis on results.
2. The effect of the overall level of compensation, etc., on equity capital
The Compensation Committee of MHFG receives reports on the amount of compensation paid to directors, executive
officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist
officers of MHFG, MHBK, MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on
the Mizuho group’s performance or the adequacy of equity capital.

330

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Basel Regulatory DisclosuresCompensation of Directors and Employees(C) Compatibility between System for Compensation of "Subject Directors and Employees" of Mizuho Group and
Risk Management and Matters Relating to Linking Compensation with Performance
1. Compatibility between system for compensation of "Subject directors and employees" and risk management
The compensation of employees in risk management department, compliance department and internal audit department
is decided in accordance with the salary and bonus system, and specific payment amounts are conclusively determinedin accordance with employee performance evaluations made by the relevant department and the human resources
department, independent from departments furthering business.
Each employee of the risk management department, the compliance department and the internal audit department sets
their own objectives in the employee performance evaluations, subject to the approval of their superiors. The degree towhich the objectives are achieved is evaluated by taking into account the degree of the employee's contribution to theestablishment of a system for risk management, compliance and internal audit.
2.Linking compensation of "Subject directors and employees" with performance
The performance payments and performance-based stock compensation for "Officers Responsible for Business
Execution" shall be made or paid in accordance with each officer’s performance, the result of organizations (our inhouse companies and units, etc.) that each Officer, etc., in charge of, and the status of achieving our 5-Year Business
Plan etc., against the annual business plan in addition to the standard amount of each positon. A certain amount of theperformance payments and the entire amount of the performance-based stock compensation shall be made or paid indeferred payments over three years, and a decrease or forfeiture of the deferred amount may be made depending on
the performance, etc., of the company and such officer. It should be noted that certain "Subject directors andemployees" have entered into compensation-related contracts. Stock compensation for "Non-Executive Officers
Responsible for Management Supervision" shall be made in accordance with the standard amount set for each position,and the payment level shall not change based on the performance of each officer. With regard to compensation forother employees, salary is determined according to their job duties and responsibilities. In addition, the proportion linked
to the performance bonus is determined through appropriately and comprehensively evaluating the contribution to
performance, including the degree of contribution to the organization, etc., so as not to become excessively
performance based.

331

Qualitative disclosure2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(2) Quantitative Disclosure Items(A) REM1：Compensation Assigned to the Relevant Fiscal Year

(Millions of yen, except people)

No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

a

b

“Subjectdirectors, etc.”“Subject
employees, etc.”

13
¥612
490
121
1
9
58
28
29
29
¥671

250
¥9,947
8,454
8
1,484
244
12,15911,312
3,717
842
442
4
1
355
181
1,323
470
¥23,785

Number of “Subject directors, etc.” and “Subject employees, etc.”
Fixed compensation amount (3+5+7)
Cash compensation amount
Of which, deferred amountFixedcompensation
Stock compensation amount or stock-based type compensation amount
Of which, deferred amount
Other compensation amount
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Variable compensation amount (11+13+15)
Cash compensation amount
Of which, deferred amount
Variablecompensation
Stock compensation amount or stock-based type compensation amount
Of which, deferred amount
Other compensation amount
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Retirement
Retirement benefits amountbenefits
Of which, deferred amount
Number of “Subject directors, etc.” and “Subject employees, etc.”
Other
Other compensation amountcompensation
Of which, deferred amountCompensation amount (2+10+18+21)

Notes: 1. Amounts of compensation of “Subject directors, etc.” include amounts of compensation received for duties performed as a director or executive officer of a "Major
consolidated subsidiary."
2. The number of employees is the actual number of persons (a) for the compensation for the fiscal year ended March 31, 2020 and (b) for the compensation for the fiscal year
ended March 31, 2019 for the payments made or anticipated payments for which the amount became clear during the fiscal year ended March 31, 2020 are stated.
3. The stated amount is the total amount for the fiscal year ended March 31, 2020 and the fiscal year ended March 31, 2019.
4. No. 7, “Fixed compensation,” “Other compensation amount,” includes condolence money insurance premiums, based on the decision of our Compensation Committee.
5. No. 11, “Variable compensation” “Cash compensation amount,” includes the recorded performance payment for the fiscal year ended March 31, 2019 for directors,
executive officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC.
For portions that exceed a certain amount, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2021.
6. No. 13, “Variable compensation” “Stock compensation amount or stock-based type compensation amount” includes the amount obtained by multiplying the stockcompensation and performance-based stock compensation ownership points (with one point to be converted into one share of MHFG stock) granted to the directors,
executive officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC for
the fiscal year ended March 31, 2019 by the book value of MHFG's shares (158.2734 yen per share). For stock compensation and performance-based stock compensation
for the fiscal year ended March 31, 2019, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2021.
7. Because the amounts of the stock compensation, performance payment and performance-based-type stock compensation for the directors, executive officers (as defined in
the Companies Act), executive officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC for the fiscal year ended March 31,
2020 have not been determined at this time, they are not included in the above compensation. However, we have recorded the required reserves for accounting purposes.
8. The exercise periods for the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of theoptions is postponed, even during the exercise period, until the time of retirement of the director or employee.
Exercise period
First Series of Stock Acquisition Rights of MHFG

February 17, 2009 to February 16, 2029

Second Series of stock Acquisition Rights of MHFG

September 28, 2009 to September 25, 2029

Third Series of stock Acquisition Rights of MHFG

August 27, 2010 to August 26, 2030

Fourth Series of stock Acquisition Rights of MHFG

December 9, 2011 to December 8, 2031

Fifth Series of stock Acquisition Rights of MHFG

September 3, 2012 to August 31, 2032

Sixth Series of stock Acquisition Rights of MHFG

February 18, 2014 to February 17, 2034

Seventh Series of stock Acquisition Rights of MHFG

December 2, 2014 to December 1, 2034

332

Quantitative Disclosure Items

2020/09/07 16:50:34 / 20635245_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Basel Regulatory DisclosuresCompensation of Directors and Employees(B) REM2：Special Compensation(Millions of yen, except people)abc“Subject directors, etc.”“Subject employees, etc.”

JPY

-

e

Lump sum payments
at the time of recruitment

Bonus guarantees
PeopledPeople¥-Additional retirement benefits

JPY

1

f

People¥47024(C) REM3：Deferred Compensation¥1,388(Millions of yen)

a

b

c

d

e

Of which, thedeferredcompensation
amount subject
to adjustment orvariation

Regardingcompensation
after allocation,
variable amounts
adjusted but notlinked tovariations for the
relevant fiscal
year

Regardingcompensation
after allocation,
variable amounts
adjusted andlinked tovariations for the
relevant fiscal
year

Amount ofdeferredcompensation
paid in the
relavent fiscal
year

¥1

¥1

¥-

¥-

¥1

212

135

-

(59)

76

-

-

-

-

-

6,015

187

50

-

2,506

888

175

50

(0)

233

-

-

-

-

-

¥7,118

¥501

¥100

¥(60)

¥2,818Deferredcompensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockdirectors,
based type
etc.”
compensation
amountOther
compensation
amountCashcompensation
amountStockcompensation“Subjectamount or stockemployees,
based type
etc.”
compensation
amountOther
compensation
amountTotal amount

JPY(D) Other Relevant Matters Relating to Our System of Compensation for "Subject Directors and Employees" ofMizuho GroupNot applicable, other than those covered in the above.

333

Quantitative Disclosure Items

Disclosure Policy
1. Basic principles
We are committed to growing together with our customers
in a stable and sustainable manner and bringing together
our group-wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading
Japanese financial services group with a global presence
and a broad customer base. For this reason, we place one of
the highest management priorities on continuing to disclose
information to our customers, shareholders, and investors bothin and outside Japan in a fair, timely and appropriate manner,in order that they may form proper judgments and appraisalsof the group. To achieve this aim, we observe applicable
domestic and international laws and regulations as well as
stock exchange rules relating to corporate disclosure, and weestablish and implement appropriate Disclosure Controls andProcedures.
2. Disclosure Controls and Procedures(1) Establishment and implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws andregulations as well as stock exchange rules and to implement
fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carriedout by directors, officers and employees of Mizuho Financial
Group and include Internal Controls over Financial Reporting
designed to provide reasonable assurance regarding
the reliability of Financial Reporting and the Preparationof Financial Statements. We have established the basic
principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls andProcedures that govern the management framework for theentire Mizuho Financial Group including group companies,
and we endeavor to establish, implement and continuously
improve our Disclosure Controls and Procedures. Our
Disclosure Committee is the Business Policy Committeethat is responsible for discussing and coordinating mattersrelating to Disclosure Controls and Procedures.
(2) Evaluation of effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly byreviewing the contents of such documentation and theirimplementation. In addition, evaluation of the effectivenessand appropriateness of Disclosure Controls and Proceduresis conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial Professionals”
to be observed by all directors and executive officers, as well
as all managers and other employees within Mizuho Financial
Group who engage in financial reporting, accounting or
disclosure. We have also developed the “internal control andaudit hotline”, a system designed for reporting questionableaccounting, internal control, or auditing matters from both
inside and outside Mizuho Financial Group.

laws and regulations as well as stock exchange rules, wefollow the defined disclosure procedures such as publishingsuch information in business reports (Jigyo–Hokoku),
annual securities reports (Yukashoken–Hokokusho),Integrated Report (Annual Review) and other disclosure
publications, as well as providing such information throughthe information distribution systems of domestic andinternational stock exchanges and through press releases.
We also endeavor to disclose other information in a fair,timely and appropriate manner. When we disclose suchinformation, we basically publish on our website theinformation we disclose. In addition, we endeavor to utilize
the latest disclosure methods and tools to provide more fair
and widespread disclosure.
(2) Investor relations activities
Investor relations activities to market participants both inand outside Japan such as shareholders, investors andsecurities analysts are conducted by the President & Group
CEO, Group CFO, Chief IR Officer, and executives andemployees designated by them. In accordance with ourbasic principles described in section 1 above, and with due
attention to two–way communication, we endeavor sincerely
to facilitate a proper understanding of our management
strategies, financial condition and other matters. In thisway, we aim to earn the trust of the market and obtain an
appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations aswell as stock exchange rules, we endeavor to grasp
properly the types of information desired by the market
and to disclose useful and appropriate information
voluntarily and proactively, in accordance with the socalled Fair Disclosure Rule (“FDR”). Regarding disclosureof information we consider particularly important, we
communicate such information on an ad hoc basis as andwhen necessary, even if a press release has already been
issued, through such means as special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor tolimit carefully our explanations to matters already disclosed
and facts commonly known.
Should we happen to disclose important information suchas information subject to insider trading regulations and/or
undisclosed financial results that might have a significant
influence on stock prices, we endeavor to take necessary
action such as officially announcing the information as soon
as possible, in accordance with FDR.
(3) Correction of misconceptions in the markets
If we identify significant misconceptions regarding Mizuho
Financial Group in the market due to the spread of rumors
or otherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.

3. Disclosure methods, other(1) Disclosure methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international

2020 Integrated Report334

Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
www.mizuho-fg.com

This PDF version of the Integrated Report is a digital version of the Forest StewardshipCouncil (FSC)-certified published version, which is printed on FSC-certified paper.