Mizuho Financial Group

2016 Integrated Report–Annual Review–
April 2015 – March 2016

Building the future with you

The most trusted financial services
a broad customer base, contributing
and Japan.

The most trusted
financial services
group

To be our customer’s most trusted partner with innovative thinking and the extensive financial experience andexpertise accumulated from relationships with wideranging customers.

The best financial
services provider

To continuously provide the best leading-edge financial
services to each of our customers, the related economies
and societies we serve, by anticipating changes on both
the global and local stages.

The most cohesive
financial services
group

To maximize our extensive expertise and collective capabilities as experienced financial services professionals inorder to meet the diversified and changing needs of ourcustomers, economies and societies.

Mizuho Financial Groupgroup with a global presence andto the prosperity of the world, Asia,

2016 Integrated Report1Contents
4 Value Creation Process
6 Business Domain
8 Mizuho’s Strengths
10 Financial Highlights
11 ESG Highlights
14 Mizuho in Fiscal 201518 Message from the Group CEO

16 Board of Directors

24 Message from the Group CFO

Who We Are

What We Aim to Do

Our Strategies for Value Creation
26 New Medium-term Business Plan:
Progressive Development of “One MIZUHO”—The Path to a Financial Services Consulting Group32 Retail & Business Banking Company
36 Corporate & Institutional Company
40 Global Corporate Company
44 Global Markets Company
48 Asset Management Company
52 Global Products Unit
56 Research & Consulting Unit
60 Proactive Initiatives for New Technology
62 Initiatives for Responsible Investment and
Financing
64 Management Support for SME Customers andRegional Revitalization

Editorial Policy
Besides financial information, this Integrated Report includes information regarding such subjects as corporate identity, corporate strategies, and ESG (environment,
society, and governance). The report presents information on Mizuho’s efforts related to strategies, governance, corporate culture, and other subjects along withinformation on how those activities are leading to the creation of value for Mizuho and the society 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.
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 abroad customer base, contributing to the prosperity of the world, Asia, and Japan.”

Guidelines Referred To

Scope of the report

Publication Information

Definition

International Integrated Reporting
Council’s International Integrated
Reporting Framework(published on December 2013)

Period covered:
From April 1, 2015 to March 31,
2016
Also includes some information

Date of issue: September 2016

MHFG:
Mizuho Financial Group
MHBK:
Mizuho Bank
MHTB:
Mizuho Trust & Banking
MHSC:
Mizuho Securities
TCSB:
Trust & Custody Services Bank
MHAM:
Mizuho Asset Management
DIAM:
DIAM
MHRI:
Mizuho Research Institute
MHIR:
Mizuho Information & Research Institute
MHPW:
Mizuho Private Wealth Management
The Group: MHFG and its subsidiaries and affiliates

after April 2016
Scope covered:
In principle, MHFG and its
subsidiaries and affiliates

2

Mizuho Financial GroupFoundations for Our Corporate Value
66 Corporate Governance
74 Message from the Chairman of		 the Board of Directors

Financial Review
100 Six-Year Major Financial Data
		(FY2010-2015)
101 Review and Analysis for Fiscal 2015

Company Information
106 Office Network
108 Group Companies
112 Corporate Profile

76 Risk Appetite Framework (RAF)
78 Mizuho’s Definition of the Three Lines of Defense

Appendix

79 Internal Audit Structure
80 Risk Management
82 Compliance

114 Compliance Contacts

84 Management of Customer Protection

115 Risk Management Structure

86 Activities to Fulfill Fiduciary Duties

132 Business Continuity Management

88 IT Strategy

133 Senior Executive

90 Human Resources Strategy

134 Location of Overseas Offices

94 Measures to Form a Common Culture		 throughout the Group
95 Initiatives to Improve Customer Satisfaction (CS)		and Be the Best Financial Services Provider
96 Initiatives for Reducing the Environmental Burden
97 Social Contribution Initiatives
98 Stakeholder Communication

137 Investor Information
139 Disclosure Policy
140 Privacy Policy Regarding Customer
		Information
141 Financial Analysis [Under Japanese GAAP]
149 Financial Data of Mizuho Financial
		 Group, Inc. [Under Japanese GAAP]
251 Non-Consolidated Financial Statements
		 of Mizuho Financial Group, Inc. and		 Three Subsidiaries [Under Japanese GAAP]
265 Status of Capital Adequacy
345 Websites

All figures contained in this report are calculated using accounting principles generally accepted in Japan (“Japanese GAAP”).
Forward-Looking Statements
This Integrated Report contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including
estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,”“should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussionsof 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:
increase in allowance for loan losses and 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 our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions enteredinto for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to
implement our Medium-term Business Plan and other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect ofchanges in general economic conditions in Japan and elsewhere; and amendments and other changes to the laws and regulations that are applicable to us. Further information regarding factorsthat could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our
most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on July 29, 2016, both of which are available in the
Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC's website at www.sec.gov.
The contents of this Integrated Report were prepared prior to the announcement of our financial results for the first quarter of fiscal 2016.
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 resultof new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

2016 Integrated Report3Who We Are
Value Creation Process
Mizuho’s Corporate Philosophy, which is contained in its
Corporate Identity statement, includes “bringing fruitfulness
for each customer and the economies and the societies inwhich we operate. Mizuho creates lasting value. It is whatmakes us invaluable.”
To implement this Corporate Philosophy, Mizuho, drawing
on its strengths and taking account of changes in the businessenvironment in Japan and overseas, is structuring a new business model, a “financial services consulting group” by taking
the “One MIZUHO Strategy” to the next stage. Specifically,
based on the foundations of the “customer first” principle

4

Mizuho Financial Group(customer-focused perspective) and “operational excellence”
and through its sophisticated risk-taking capability and financial intermediary functions, Mizuho is fundamentally committed to maintaining close relationships with its customers andto building the future of economies and societies as the mosttrusted financial partner in providing solutions for its customers
and communities.
Seeking to establish competitive advantage and to increase its corporate value by securing sustainable and stableprofits, Mizuho will fulfill even greater social missions thanever before.

Who We Are

What We Aim to Do

Our Strategies for Value Creation

Foundations for Our Corporate Value

Financial Review

52016 Integrated ReportWho We Are

Business Domain
Mizuho Financial Group (”the Group”) is composed of MHFG (holding company) and its
subsidiaries and affiliates and provides banking, trust banking, securities and otherfinancial services.
Since April 2016, Mizuho has introduced an in-house company structure based on
customer segments. The aim of this structure is to utilize Mizuho’s strengths and competitive advantage, under a holding company which integrates the banking, trust banking and securities functions, to responsively provide highest-quality financial services
that closely match customer needs.
Two units independent from the in-house companies were established to further
enhance expertise and support all of the in-house companies.

Group Structure of Mizuho
Holding Company

Mizuho Financial Group (MHFG)

Banking

Trust Banking

Securities

Core Group Companies
Trust and Custody Services Bank(TCSB)

Mizuho Bank(MHBK)

MizuhoTrust & Banking

MizuhoSecurities(MHTB)(MHSC)

Mizuho Asset Management (MHAM)
DIAM*1
Mizuho Research Institute (MHRI)
Mizuho Information &Research Institute (MHIR)
Mizuho Private Wealth Management(MHPW)*1. An affiliate under the equity method*2. U.S. bank holding company (launched on July 1, 2016)

Core Group Company

Mizuho Americas*2

6

Mizuho Financial Group

Note: In July 2016, DIAM, the asset management function of
MHTB, MHAM and Shinko Asset Management enteredinto a definitive integration agreement. The effective
date of integration will be October 1, 2016, subject tocertain conditions precedent, and the name of the newcompany will be “Asset Management One.”In-house Company Structure

Middle Market
Corporations

Financial Institutions

P36

Public-Sector Entities

Global Corporate Company

East Asia
Asia & Oceania

Investors

P40
Our Strategies for Value Creation

Global Markets Company

Americas
EMEA

What We Aim to Do

Large Corporations

P32

Who We Are

Corporate & Institutional
Company

SMEs

Research & Consulting Unit

Individual Customers

Global Products Unit

Retail & Business Banking
Company

P44
Transaction

Asset Management Company

Investors

P52

P48

Foundations for Our Corporate Value

Investment
Banking

P56[Reference] Net Business Profits in Fiscal 2015
Calculated taking account of the in-house company system based on results by divisionin fiscal 2015

(billions of ¥)FY2015 Results

Retail & Business Banking Company

16

87

Corporate & Institutional Company

253

276

Global Corporate Company

170

192

Global Markets Company

398

428

Asset Management Company

22

22

Financial Review

Before head office
expense deduction(Exchange rate: US$1=¥123)
2016 Integrated Report7Who We Are

Mizuho’s Strengths
Broad Customer Base(As of June 30, 2016 excluding ATM network)Japan
Mizuho is the sole megabank to have branches in all 47 prefectures, and has the No. 1
ATM network*1 in Japan800
approximately190

Branches in Japan: approximately
Of which joint branches among MHBK, MHTB and MHSC:

ATMs*2: approximately

6,700*1. Mizuho is No.1 in terms of the number of proprietary ATM locations along with the number of other ATM locations offering the similaruser fees through its own membership service.
*2. Approximately 1,800 MHBK ATM locations and 4,900 Aeon Bank ATM locations (as of March 31, 2016)

Individual
Customers:

Comprehensive
Securities Accounts:

SME & Middle
Market Borrowers, etc.

Coverage of Listed
Companies in Japan:

24 million

1.65 million

100,000

70%

GlobalBroad global network with a focus on Asia, where economic growth is continuing

117

offices worldwide, covering

Europe, Middle East,
and Africa:

24

38

countries and regions

Americas:
Asia & Oceania:

54

39

Coverage of Forbes
Global 200*
(Non-Japanese Corporate
Customers)

80%*Top 200 corporations fromForbes Global 2000
(excluding financial institutions)

Location of Overseas Offices, See P134

8

Mizuho Financial GroupProducts Capability
Who We Are

Outstanding performance in each field achieved through offering optimal solutions

What We Aim to Do
Our Strategies for Value Creation

Mizuho’s Industry Research Department has amassed in-depth understanding andexpertise on industries and corporations, and, by combining its analyst functions, strategist function, and corporate finance support function, offers global and comprehensive
solution.
Since April 2016, as part of Mizuho’s “One Think Tank,” the department has
strengthened cooperation with the group’s research and consulting functions to contribute to tackling customers’ diverse business issues.
Research & Consulting Unit, See P56

Foundations for Our Corporate Value

No. 1 in Industry Expertise among Japanese Banks
Disseminating Information
Mizuho releases reports including Mizuho
Industry Research, which analyzes industry
from a broad perspective, and MIZUHO
Research & Analysis, which surveys areasfrom macroeconomic trends to industry
structure changes and developments inindividual business fields.

Strategist function

Corporate financesupport function

Provides a wide range
of industry expertise regarding industry trends
in Japan and overseas

Provides business strategy
development support
and policy advice basedon a solid background ofindustry expertise

Supports the formulation of customers’
financial and management strategies

Financial Review

Analyst function2016 Integrated Report9Who We Are

Financial Highlights
Cash Dividend per Share of Common Stock
(¥)

8

800

600

6

400

4

200

2

0

0

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016(Estimate)

7.5
6.0

6.0

7.5

7.5

6.5

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016(Estimate)

BIS Capital Ratio
Common Equity Tier 1 Capital Ratio
Tier 1 Capital Ratio
Total Capital Ratio

(%)

80

6.0

20

60

4.5

15

11.35
40

3.0

10

20

1.5

5

0

0

0

FY2011FY2012FY2013

FY2014FY2015*1. Excluding loans to MHFG. “Overseas Offices” is calculated based on an aggregate
of banking and trust account basis and represents loans booked at overseas
offices, including the impact of foreign exchange translation*2. Aggregate figures for MHBK and MHTB on a non-consolidated basis

10

Mizuho Financial Group

8.80

March 31,
2014

15.41

14.58

14.36

11.50
9.43

March 31,
2015

12.64
10.50

March 31,2016

ESG Highlights
Mizuho addresses environmental, social and governance (ESG) issues to contribute to thesustainable development of society and to create corporate value
For more details, please access MHFG’s websites. http://www.mizuho-fg.co.jp/english/csr/index.html
Who We Are

Environment
Environment-related Funding
Drawing on its knowledge as a global financial group, Mizuho will develop and offer financial products and services that encourage society to promote environmental considerations.

What We Aim to Do

Environment-related Awards
800

600

400

200

0

FY2013

FY2014

Our Strategies for Value Creation

Finance for solar photovoltaic (PV) power plant project
located in Jordan which was arranged by MHBK was awarded
Environmental Finance of the Year (Solar Category) from
Environmental Finance in March 2016. With an expected
output of 52.5 megawatts, this is one of the largest solar
PV power plant projects in the Middle East. It is also the firstsolar power project in the Middle East financed by commercial banks.

FY2015Initiatives for Smart City ProjectFoundations for Our Corporate Value

Mizuho’s goal is to support growth strategies of Japanese industries and promote the development of high-quality, sustainable infrastructure from a financial standpoint using our smart city project management expertise with Japanese environmental technology.
Smart City Projects with Mizuho’s Involvement
Smart community demonstration
project in Greater Manchester, UK
Smart community development
plan in Haryana State, India

Environmental city project in
Economic-Technological
Development Area in Tianjin, China
Environmental city development
project in Nansha, Guangzhou, China

Integrated township developmentwith eco-friendly infrastructure
project in Chennai, India

Financial Review

Smart community demonstration
project in Slovenia
Smart grid demonstration projectin Hawaii, U.S.A.

Environmental monitoring of industrial
park project in Saudi Arabia

2016 Integrated Report11Who We Are

Society
Revitalizing Local Communities
Mizuho has invested a total of around ¥10.2 billion in 17 funds and is providing industry knowledge and capital with the aim of contributing to the development of Japan’s economy and society, strengthening the competitiveness of Japanese industries through the collaboration with regional banks, national and local public entities, and investing in Sixth Industry Funds and regional vitalization funds.
Regional Revitalization-related Funds Invested by Mizuho
LegendThe Agriculture, Forestry, andFisheries Sixth Industry Fund

Hokkaido Bank
Agribusiness Fund:¥3.0 billion (¥300 million)

Name of Fund
Amount (MHBK investment)
Other regional vitalization funds

Revitalization Fund forCore Regional Businesses(Throughout Japan):¥29.05 billion (¥1.5 billion)

Name of Fund
Amount (MHBK investment)

Tomato Sixth Industry
Support Fund:¥1.0 billion (¥100 million)

Tajima and Yabu Sixth
Industry Support Fund:¥200 million (¥48 million)

Mizuho Tohoku
Industrial Development
Fund: ¥6.1 billion (¥6 billion)
Tohoku Future
Support Fund:¥2.0 billion (¥180 million)

Hack Osaka Fund:¥4.8 billion (¥500 million)

Gogin Agriculture,
Forestry, and Fisheries
Support Fund:¥1.0 billion (¥100 million)

Fukushima Regional
Sixth Industry Recovery Fund:¥2.0 billion (¥250 million)

Hiroshima Agriculture,
Forestry, and Fisheries
Growth Support Fund:¥1.0 billion (¥100 million)

Tochimaru Sixth Industry
Growth Support Fund:¥2.0 billion (¥230 million)

Aichi Local Agriculture,
Forestry, and Fisheries
Growth Support Fund:¥1.08 billion (¥80 million)

Hiroshima Innovation
Fund II:¥6.52 billion (¥500 million)
Shigin Sixth Industry
Support Fund:¥1.0 billion (¥100 million)

Kiyo Sixth Industry
Support Fund:¥1.0 billion (¥100 million)

Towa Fund for the
Support of Agriculture,
Forestry and Fisheries as
Sixth Industries:¥1.0 billion (¥100 million)

Hyakugo Sixth
Industry Fund:¥500 million (¥50 million)(As of March 31, 2016)

Governance
As a Company with Three Committees, MHFG has built a corporate governance framework centering on the Board of Directors.
Corporate Governance, See P66-73

Board of Directors

Audit Committee

Outside Director

Outside Director

Outside Director

Internal Non-executive
Director

Percentage of Outside Directors*1

46%*2

100%

100%

60%

Number of Meetings Held in FY2015(Average Attendance Rate)*3

13(100%)

6(100%)

8(95%)

18(100%)

Chairman*1*1. As of June 24, 2016
*2. Over half of members (61%) are Non-Executive Directors.
*3. Average attendance rate for Directors as of March 31, 2016

12

Nominating Committee Compensation Committee

Mizuho Financial GroupESG Highlights

Society

Initiatives to Promote Diversity and Work-life Balance
Who We Are

Mizuho strives to improve its work environments and change mindsets within the company so that each and every employee in
the Group can work without difficulty, feel motivated by their work and exercise their abilities to their maximum potential.
Human Resources Strategy, See P90-93

Percentage of Management Positions Filled by Women(Domestic)
Goal: around 17%

(%)

20
15

13.0

10
5
0

8.1

9.2

14.3

10.5

35
30

12.0

13.7

Goal: around 13%

What We Aim to Do

11.6

18.0

15.9

25
20

March 31, March 31, March 31, March 31, March 31,
2012
2013
2014
2015
2016

0

March 31,2013

March 31,2014

March 31,2015

March 31,2016

 Banking division (MHBK + MHTB)Childcare Support

In March 2016, MHFG was awarded as a “New Diversity
Management Selection 100” company for actively engaging indiversity management by the Ministry of Economy, Trade andIndustry (METI). Also it was chosen as “Nadeshiko Brand” forinitiatives related to promoting women’s participation in theworkforce by METI, and Tokyo Stock Exchange.

In March 2016, our six groupcompanies* were certified as“Platinum Kurumin” by the
Minister of Health, Labour andWelfare, a special certified
company that provides superiorchildcare support for its employees
based on “Act on Advancementof Measures to Support Raising
Next-Generation Children.”

New Diversity Management
Selection 100

Nadeshiko Brand

Foundations for Our Corporate Value

Diversity-related Awards

Our Strategies for Value Creation

 Securities division (MHSC)*MHFG, MHBK, MHTB, MHSC, MHIR and TCSBESG Evaluation
The ESG initiatives that have been carried out by Mizuho thus far have received high evaluations, and Mizuho has been a part ofsocial responsibility investment indices both inside and outside Japan.

Social Responsibility Indices which include Mizuho (as of June 2016)
Financial Review

2016 Integrated Report13

Who We Are

Mizuho in Fiscal 2015
We positioned fiscal 2015 as the year in which the Group would do its utmost to establish competitive advantages, and together
strived to further promote the evolution of the integrated strategy among banking, trust banking and securities functions andenhance its corporate governance.
Organization

Governance

Strategy

Strategy and Management BaseJune 1, 2015

July 24, 2015

September 30, 2015

Filing of Corporate Governance Reportwith Tokyo Stock Exchange, describing ouractions in response to all of the principles of
the Corporate Governance CodeEstablished the “Incubation PT” asan independent team under theholding company (MHFG) withthe objective of strengthening
group-wide initiatives to create
new businesses using cutting-edge
P60
technologies

Signed a memorandum of understanding on integration of asset management
P48
companies

Tokyo 2020

September 30, 2015
Entered into a capital and business alliancewith Matthews Asia to strengthen asset
P51
management business

April 14, 2015
Became Tokyo 2020 Gold Partner tosupport the Tokyo 2020 Olympic andParalympic Games*

Strategy
August 24, 2015
Began to provide bank agency
services at all domestic branches inJapan and some of the head officebusiness divisions of MHSC

Apr. 2015

May

Jun.

Jul.

Transaction banking
May 15, 2015

Products and Services

Commenced to provide supply chain
finance using IT to meet cashflow improvement needs of overseas companies
P54

Corporate banking
August 5, 2015 (Tokyo)
December 4, 2015 (Osaka)
Held business matching forum(Promoting tourism to Japan)

Research
July 6, 2015
Announced policy proposal regarding“Promoting Overseas Development of
the Medical Industry Using ICT”

Aug.

Sep.

Research
August 28, 2015
Published research report entitled,“Internet of Things (IoT): Current
Status and Outlook Based on Researchon IoT and Artificial Intelligence”

MarketSeptember 7 to 11, 2015
Held “Mizuho Investment Conference,” one of
the largest seminars in Japan on Japanese stocks

International banking
September 28, 2015
Issued Thai baht-denominated bonds under
AMBIF (ASEAN+3 Multi-Currency Bond
Issuance Framework) (worth approx. ¥10
P43billion)*Mizuho Financial Group is a Tokyo 2020 Gold Banking Partner

14

Mizuho Financial GroupWho We Are

Strategy

GovernanceFebruary 12, 2016

May 13, 2016

Published Policies regarding
Mizuho’s Fiduciary Duties
P86-87

Announced new medium-term business plan:
Progressive Development of “One MIZUHO” – The Path
P26-31
to a Financial Services Consulting Group

Strategy

Designated as “Nadeshiko Brand” by the
Ministry of Economy, Tradeand Industry (“METI”) andthe Tokyo Stock Exchange
P13

What We Aim to Do

March 16, 2016

Announced acquiring shares of Simplex
Real Estate Management and Simplex
REIT Partners to enhance its asset
P55
management business

June 9, 2016
Selected as “Competitive IT
Strategy Company 2016” by
METI and the Tokyo Stock
Exchange

External evaluation

October 28, 2015

External evaluation

Strategy
July 1, 2016

Oct.

Nov.

Jan. 2016

Feb.

Personal banking

Mar.

Apr.

May

Jun.

Jul.

Corporate banking & investment banking

October 30, 2015

November 2, 2015

March 1, 2016

Commenced “SMART FOLIO”
advisory service by asset manP61
agement robots

Commenced MHBK cardloans, “Executive Plan”

Arranged project financing for the concessionof Kansai International Airport and Osaka
International Airport, the largest airport
concession in Japan

Personal banking

Foundations for Our Corporate Value

Personal banking

Dec.

Our Strategies for Value Creation

Launched Mizuho
Americas, a US bankholding company

Corporate banking
March 3, 2016

Banking services for wearable smartphones won a “Security Committee
Special Award in MCPC* 2015”

Established private equity fund “Gulf Japan
Food Fund” to promote export of agricultural,
forestry and fishery products to the Middle
East from Japan

Financial Review

December 3, 2015

P39
*MobileComputing
Promotion
Consortium(Contains some information dated after April 1, 2016.)

2016 Integrated Report15

Who We Are

Board of Directors

⑬

⑦

⑪

⑤

Yasuhiro Sato ①

③

⑧

⑩

①

Managing Executive Officer
Head of Risk Management Group / Group CRO

Mar. 2003 Executive Officer / Senior Corporate Officerof International Banking Unit of Mizuho
Corporate Bank (MHCB)

Apr. 2010 General Manager of Risk Management
Division of MHCB

Mar. 2006 Executive Managing Director /Head of Corporate Banking Unit
Apr. 2007 Deputy President / Chief Auditor
Apr. 2009 President & CEO (until Jul. 2013)
Jun. 2009 Member of the Board of Directors of MHFG
Jun. 2011 Member of the Board of Directors of MHBK		President & Group CEO of MHFG
(until Jun. 2014)
Jul. 2013 President & CEO of MHBK*
Apr. 2014 Member of the Board of Directors (current)		Member of the Board of Directors of MHTB
(current)
		Member of the Board of Directors of MHSC
(current)
Jun. 2014 Member of the Board of Directors,
President & Group CEO of MHFG (current)

Shusaku Tsuhara ⑩

Senior Managing Executive Officer
Head of Compliance Group / Group CCO
Apr. 2010 Executive Officer / General Manager of
Executive Secretariat of MHFG②

Ryusuke Aya ⑪

President & Group CEO(Representative Executive Officer)

Apr. 2004 Managing Executive Officer /In charge of business promotion

16⑨

Apr. 2012 Executive Officer / General Manager of
Risk Management Division of MHFG
(until Nov. 2013)
		Executive Officer / General Manager of
Risk Management Division of MHBK		Executive Officer / General Manager of
Risk Management Division of MHCB
Jul. 2013 Executive Officer / General Manager of
Risk Management Division of MHBK*
Nov. 2013 Managing Executive Officer / Head of
Risk Management Group of MHFG
(until Jun. 2014)
		Managing Executive Officer / Head of
Risk Management Group of MHBK		Managing Executive Officer / In charge of
Risk Management Group of MHTB		Managing Executive Officer / In charge of
Risk Management Group of MHSC
Apr. 2014 Executive Managing Director / Head of
Risk Management Group of MHBK (current)
Jun. 2014 Member of the Board of Directors,
Managing Executive Officer / Head of
Risk Management Group of MHFG (current)

Koji Fujiwara ⑫

Managing Executive Officer
Head of Strategic Planning Group / Group CSO

Apr. 2012 Managing Executive Officer / In charge ofBranch Banking Group of MHBK

Apr. 2010 General Manager of Investor Relations
Division of MHFG

Jul. 2013 Managing Executive Officer /In charge of Corporate Banking of MHBK*

Apr. 2012 Executive Officer / General Manager of
Investor Relations Division

Apr. 2015 Senior Managing Executive Officer / Headof Compliance Group of MHFG
		Senior Executive Managing Director / Headof Compliance Group of MHBK (current)

Apr. 2014 Managing Executive Officer /Head of Strategic Planning Group		
Executive Managing Director / Head of
Strategic Planning Group of MHBK (current)

Jun. 2015 Member of the Board of Directors, Senior
Managing Executive Officer / Head ofCompliance Group of MHFG (current)

Jun. 2014 Member of the Board of Directors,
Managing Executive Officer / Head of
Strategic Planning Group of MHFG (current)

Mizuho Financial Group

⑫

④

⑥

Koichi Iida ⑬

Managing Executive Officer
Head of Financial Control & Accounting Group /Group CFO
Apr. 2011 General Manager of Syndicated Finance
Structuring Division of MHCB
Apr. 2012 General Manager of Corporate Banking
Division No.10
		Head of Corporate Coverage Department I
of MHSC (until Apr. 2016)
Jul. 2013 General Manager of Corporate Banking
Division No.10 of MHBK*
Apr. 2015 Executive Officer, General Manager ofCorporate Banking Division No.10
Apr. 2016 Managing Executive Officer, Head ofFinancial Control & Accounting Group of
MHFG
		Executive Managing Director, Head ofFinancial Control & Accounting Group of
MHBK (current)
Jun. 2016 Member of the Board of Directors,
Managing Executive Officer / Head ofFinancial Control & Accounting Group of
MHFG (current)

Hideyuki Takahashi ⑧

Deputy Chairman of the Board of Directors
Member of the Audit Committee (Chairman)
Apr. 2007 Executive Officer / Senior Corporate Officerof Strategic Planning Group of MHCB
Apr. 2009 Managing Executive Officer / Head of Global
Portfolio Management Unit, Head ofFinancial Institutions & Public Sector
Business Unit, Head of Global Alternative
Investment Unit
Apr. 2010 Managing Executive Officer / Chief Financial
Officer and Chief Portfolio Management
Officer
Apr. 2011 Managing Executive Officer / Chief Financial
Officer, Chief Portfolio Management Officer
and Chief Information Officer

Jun. 2012 Executive Managing Director /Head of Financial Control & Accounting
Group of MHFG

Apr. 2014 Member of the Board of Directors of MHFG
(current)
Jun. 2014 Member of the Board of Directors of MHBK
(current)

Tatsuo Kainaka ⑤ g

Apr. 1963 Joined Yawata Iron & Steel Co., Ltd.

Member of the Nominating Committee
Member of the Compensation Committee (Chairman)
Member of the Audit Committee

Jun. 1993 Director of Nippon Steel Corporation

Apr. 1966 Appointed as Public Prosecutor

Apr. 1997 Managing Director

Jan. 2002 Superintending Prosecutor of the Tokyo
High Public Prosecutors Office

Apr. 2000 Representative Director and Executive Vice
President

Oct. 2002 Justice of the Supreme Court

Jun. 2003 Executive Advisor

Mar. 2010 Admitted to the Tokyo Bar Association

Jun. 2004 Senior Corporate Auditor

Apr. 2010 Joined Takusyou Sogo Law Office (current)

Jun. 2006 Independent Director of Terumo
Corporation (until Sep. 2008)

Jan. 2011 President of the Life Insurance Policyholders
Protection Corporation of Japan (current)

Mar. 2007 Outside Director of Sapporo Holdings
Limited (until Sep. 2008)

Nov. 2013 Member of the Board of Directors(Outside Director) of MHBK (until Jun. 2014)

Jun. 2007 Outside Director of Tokyo Financial ExchangeInc. (until Sep. 2008)

Jun. 2014 Member of the Board of Directors(Outside Director) of MHFG (current)

Oct. 2007 Chairperson of the Japan Corporate
Auditors Association (until Oct. 2008)
		Outside Director of Japan Post Holdings
Co., Ltd. (until Sep. 2008)

Hirotake Abe ⑥ gMember of the Audit CommitteeJan. 1970 Joined Tohmatsu Awoki & Co.

Jun. 2008 Executive Advisor to Nippon SteelCorporation (until Sep. 2008)

Jun. 1985 Temporarily transferred to Deloitte &Touche New York Office (until Oct. 1992)

Oct. 2008 President (Representative Director) of the
Shoko Chukin Bank, Ltd.

Jul. 1990 Senior Partner of Tohmatsu & Co.

Jun. 2013 General Advisor (current)
Jun. 2015 Member of the Board of Directors (Outside
Director) of MHFG (current)
Mar. 2016 Audit & Supervisory Board Member of
Sapporo Holdings Limited (current)

Takashi Kawamura ④ g

Member of the Nominating Committee
Member of the Compensation Committee
Apr. 1962 Joined Hitachi, Ltd.

Jun. 2001 CEO (until May 2007)
Jun. 2004 Executive Member of Deloitte Touche
Tohmatsu Limited (until May 2007)
Jun. 2007 Senior Adviser of Deloitte Touche Tohmatsu(until Dec. 2009)
Jan. 2010 Established the Certified Public Accountant
Hirotake Abe Office (current)
Jun. 2015 Member of the Board of Directors(Outside Director) of MHFG (current)

Hiroko Ota ⑦ g

Nobukatsu Funaki ⑨

Jun. 1995 Director

Member of the Audit Committee

Jun. 1997 Executive Managing Director

Chairman of the Board of Directors
Member of the Nominating CommitteeMar. 2010 Audit & Supervisory Board Member of
MHCB (until Jun. 2013)

Apr. 1999 Executive Vice President and Representative
Director

Apr. 1996 Associate Professor, the Graduate School of
Policy Science, Saitama University

Apr. 2013 Audit & Supervisory Board Member (Outside
Member) of MHSC (until Jun. 2014)

Apr. 2003 Director (until Jun. 2007)

Oct. 1997 Associate Professor, National Graduate
Institute for Policy Studies

Jun. 2014 Member of the Board of Directors (current)

Mitsuo Ohashi ② g

Jun. 2005 Chairman of the Board, Hitachi Plant
Engineering & Construction Co., Ltd. (until
Jun. 2009)

Mar. 1959 Joined Mitsui Bank, Ltd.

Jun. 2006 Chairman of the Board, Hitachi Software
Engineering Co., Ltd. (until Jun. 2007)

Member of the Nominating Committee (Chairman)
Dec. 1961 Joined Showa Denko K.K.
May 1988 General Manager of Corporate Planning
DivisionMar. 1989 Director / General Manager of Corporate
Planning Division
Mar. 1993 Managing Director
Mar. 1995 Senior Managing Director
Mar. 1997 President and Chief Executive Officer

Jun. 2005 Member of the Board of Directors(Outside Director) of MHFG (current)
Mar. 2007 Director and Chairman of the Board of
Directors of Showa Denko K.K.
Mar. 2010 Senior Advisor

Apr. 2009 Representative Executive Officer, Chairman,
President and Chief Executive Officer,
Hitachi, Ltd.
Jun. 2009 Representative Executive Officer, Chairman,
President and Chief Executive Officer andDirector
Apr. 2010 Representative Executive Officer, Chairman
and Director
Apr. 2011 Chairman of the Board

Apr. 2001 Professor, National Graduate Institute for
Policy Studies
Apr. 2002 Director for Economic Research, Cabinet
OfficeMar. 2003 Deputy Director General for Economic
Research, Cabinet Office
Apr. 2004 Director General for Economic Research,
Cabinet Office
Aug. 2005 Professor, National Graduate Institute for
Policy Studies
Sep. 2006 Minister of State for Economic and Fiscal
PolicyAug. 2008 Professor, National Graduate Institute for
Policy Studies (current)
Apr. 2009 Vice-President, National Graduate Institutefor Policy Studies (until Mar. 2011)
Jun. 2014 Member of the Board of Directors (Outside
Director) of MHFG (current)

Financial Review

Jan. 2005 Representative Director and Chairman of
the Board of Directors

Jun. 2007 Chairman of the Board, Hitachi Maxell, Ltd.
(until Jun. 2009)

Foundations for Our Corporate Value

Jun. 2013 Audit & Supervisory Board Member of MHFG

Jun. 2003 Chairman of the Board and Representative
Executive Officer, Hitachi Software
Engineering Co., Ltd.

Our Strategies for Value Creation

Jul. 2013 Deputy President & Executive Officer / Headof Financial Control & Accounting Group of
MHBK*Member of the Compensation Committee
Member of the Audit Committee

What We Aim to Do

Apr. 2013 Deputy President / Head of Financial Control& Accounting Group (until Apr. 2014)
		Deputy President & Executive Officer / Headof Financial Control & Accounting Group of
MHBK		Deputy President & Executive Officer / Headof Financial Control & Accounting Group of
MHCB		Managing Executive Officer / In charge ofStrategic Planning, Financial Control &Accounting Group of MHTB (until Apr. 2014)
		Managing Executive Officer / In charge ofFinancial Control & Accounting Group of
MHSC (until Apr. 2014)

Tetsuo Seki ③ g

Who We Are

Apr. 2012 Managing Executive Officer / Head ofFinancial Control & Accounting Group of
MHFG
		Managing Executive Officer / Head ofFinancial Control & Accounting Group of
MHBK (until Apr. 2013)
		Managing Executive Officer / Head ofFinancial Control & Accounting Group of
MHCB (until Apr. 2013)		Managing Executive Officer / In charge ofStrategic Planning, Financial Control &Accounting Group of MHTB (until Apr. 2013)
		President & CEO of Mizuho Financial
Strategy (until Apr. 2014)

Apr. 2014 Director
Jun. 2014 Advisor (until Jun. 2016)
		Member of the Board of Directors (Outside
Director) of MHFG (current)

Mar. 2014 Senior Counselor (current)Internal director who cocurrently serves as executive officer* The former MHBK and the former MHCB conducteda merger on July 1, 2013, whereby the former
MHCB was the surviving company in an absorptiontype merger, and the former MHCB changed its
trade name to MHBK.
Internal non-executive director

Outside director

2016 Integrated Report17

What We Aim to Do
Message from the Group CEO
As a “financial services consulting group,” we aim tobe the most-trusted partner in solving problems andsupporting the sustainable growth of customers andcommunities.

Yasuhiro Sato
President & Group CEO
Member of the Board of Directors
Mizuho Financial Group, Inc.

18

Mizuho Financial GroupAlthough the world economy is likely to continue to grow, theslowdown in the rate of growth in the United States and in theemerging countries, such as China, will limit the overall economic growth going forward, and uncertainty about its future
course is growing. While paying careful attention to the development of regulatory reforms of the global financial system, we areaware of the necessity for establishing a financial base supported
by a balance sheet that is resilient against the uncertainties in theworld economy, and by a sustainable and stable profit structure.
Also, in view of structural changes in the economic andsocial environment in Japan and overseas, including Japan’s
declining birthrate and the aging and shrinking population, theglobalization of business activities, continuing technologicalinnovation, climate change and other factors, as a global financial services group with its base in Japan, we will help addressand contribute to the solutions of a wide range of social issues.
Consideration of these factors has given us a renewed awareness of the necessity of creating new business opportunities.
Especially, in the midst of technological progress, the accelerating financial innovation, as exemplified by Fintech, has madeclear the need to create new value for our customers by working together with selected third parties, and thereby establish
unique competitiveness.

What We Aim to Do
Our Strategies for Value Creation

First, let us take a look at the business model transitions
that have been made in the financial industry. What wehave positioned as Phase IV, or the decade of the 2010s, isa time of exploring a new business model after the Lehman
Crisis. In the previous medium-term business plan, Mizuho
presented a progressive business model, the “One MIZUHOStrategy,” which promoted the integrated strategy amongbanking, trust banking and securities functions. In preparing
our new medium-term business plan, we gave consideration
to creating a new business model that would take accountof the management environment, the accomplishments andchallenges under the previous medium-term business plan,
the unchanging value as a financial institution and Mizuho’s
Corporate Identity.

Understanding of Management Environment
Who We Are

As President & Group CEO of MHFG, I would like to express
our deep appreciation for your continued interest in andsupport of our Group.
We announced a new medium-term business plan for
the next three-year period starting from fiscal 2016, entitled
Progressive Development of “One MIZUHO”—The Path to a
Financial Services Consulting Group.
To enable you to gain a more in-depth understanding ofMizuho, including the spirit of the new medium-term business plan, I would like to provide an explanation of our plans.

Transition of the Business Model for the Financial Industry, Our Corporate Philosophy and Unchanging Value as a Financial Institution

Foundations for Our Corporate Value
Financial Review

2016 Integrated Report19What We Aim to Do

Accomplishments and Challenges to be Addressed
under the Previous Medium-term Business Plan
Under the previous medium-term business plan, One MIZUHONew Frontier Plan— Stepping Up to the Next Challenges,
we focused on the actual needs of our customers, and,to respond effectively to their diverse and differing needs,
we introduced a group management structure by whichgroup-wide business units took the lead in formulating andpromoting business strategies and initiatives for banking, trust
banking, securities and other functions. Over the three yearsof the previous plan, under the banner of One MIZUHO, wepositioned the “customer first” principle (customer-focused
perspective) as a cornerstone of the plan and implemented
our “One MIZUHO Strategy.” As a result, we met almost allof our financial targets and made progress toward reforming
to a sustainable and stable profit structure. We also successfully enhanced our corporate governance by shifting to a“Company with Three Committees” and by strengthening thefunctions of the holding company.
On the other hand, as one of the Global Systemically
Important Financial Institutions (G-SIFIs), we believe that it isnecessary for us to further strengthen our capital base andestablish a sustainable and stable profit structure throughsuch measures as further cost structure reforms.

New Medium-term Business Plan
From the implications gained from our views of the management environment, we concluded that we would formulate a
new medium-term business plan for creating a new businessmodel as a “financial services consulting group” in order for us toeffectively respond to possible changes in the business environment, maintaining and continuing the core value of the previous
medium-term business plan, the “customer first” principle.
This new plan will further perfect and move our “OneMIZUHO Strategy” to the next stage upward, which will lead
us to support the sustainable growth of our customers andcommunities. This is the fundamental idea of the new plan.
Defining our objectives as being “a financial services consulting group – The most trusted partner in solving problems
and supporting the sustainable growth of customers andcommunities,” we set five basic policies in the new plan, basedon our risk appetite policy for the medium-term and businessportfolio analysis. These policies were further specified as 10
basic strategies relating to business strategies, financial strategies and management foundations.
Furthermore, we set “fully implementing the ‘customer
first’ principle” and “pursuing ‘operational excellence,’” asthe two fundamental requirements for becoming a “financial
services consulting group.”

Achievements of Principal Financial Targets under the Previous Medium-term Business Plan

20

Mizuho Financial GroupMessage from the Group CEO

Fully Implementing the “Customer First”
Principle (Customer-Focused Perspective)

Who We Are
What We Aim to Do

Accompanying changes in the economy and society, customer
needs are becoming increasingly diverse and more sophisticatedyear by year. To respond to these needs, we must forecast
future trends in the economy and society from many different
perspectives, and, as a partner of our customers in the medium-to-long term, we must always move with them and identify
not only the needs and problems that are already apparent but
also discover latent needs and problems that customers have
not yet noticed. By offering customers appropriate and timely
solutions, we will realize our objective of implementing the“customer first” principle. To put this into action, in addition
to the three pillars of banking, trust banking and securities
functions, we will fully deploy the consulting capabilities of
the Group’s asset management function as the fourth pillar
and research & consulting functions as the fifth pillar. With the
top-quality services provided by these five pillars of our businessactivities, we will be positioned to offer a superior selection of
consulting services.
Regarding the fourth pillar, on October 1, 2016, Mizuho
plans to consolidate the asset management functions ofseveral existing group entities into a new company, which
will be named “Asset Management One.” The new company
will fulfill its fiduciary duties* and, by strengthening its asset
management and product offering capabilities through themerger, it will deliver solutions of the highest level that are inits customers’ best interests and aim to become the number
one asset management company in Asia.
For the fifth pillar, we have brought together the fullcomplement of our research and consulting functions to forma newly established Research & Consulting Unit as “One Think
Tank.” By structuring think tank functions that are the best inJapan, we have differentiated our services in this field and will
work to become the most trusted partner in solving the various challenges of our customers and communities.

Formulation of the Medium-term Business Plan
Our Strategies for Value Creation
Foundations for Our Corporate Value
Financial Review

2016 Integrated Report21

What We Aim to Do*Fiduciary duties is a general term for the broad range of various roles andresponsibilities that fiduciaries are expected to fulfill when engaging in certain
business activities in order to live up to the trust that is placed in them by
their customers. The term appears—as a loan word in Japanese—in the
Financial Service Agency’s Strategic Directions and Priorities.

Pursuit of “Operational Excellence”
The term “operational excellence” in some companies isused to mean primarily cost reduction and improvement inproductivity. At Mizuho, however, we use the term to mean
simplifying and streamlining daily activities, speeding-up ofdecision-making, reviewing the cost structure, and otheractivities to improve overall business efficiency. In addition,
we have defined “operational excellence” to mean actively
incorporating financial innovation, including Fintech, thatwill enhance the added value of customer services. To realize
these objectives, we have recently formed an Operational
Excellence Promotion Committee which I chair, and we are
pursuing operational excellence on a group-wide basis.

Introduction of the In-House Company System
To thoroughly strengthen our “customer first” approach (customer-focused approach) and, to realize our goal of becoming
a “financial services consulting group,” we have introduced a
new in-house company system based on customer segments.
This organizational reform has three objectives.
The first objective is to ensure consistency of strategy.
The new in-house company structure, which will provide
integrated banking, trust banking and securities functions
seamlessly through the same in-house companies, will allow
us to take more-consistent actions according to the attributesof each customer during all processes from the formulationof strategy at head office to its execution on the front lines.
The second objective is to speed up our decision-making
processes and enhance the Group’s front-line capabilities. To
this end, we reorganized our ten existing units into five inhouse companies and two units. By making the organization
simpler, we will realize streamlining of head office operations
and faster decision-making, and by shifting more head officepersonnel to the front lines, we are aiming to further enhance the front-line capabilities.

22

Mizuho Financial Group

The third objective is to clarify responsibility for profits.
Having introduced in-house company ROE, we have clearly
defined the responsibility of the heads of the in-housecompanies for profits. At the same time, we have delegatednecessary authority to these heads of the companies forformulation of strategy, and allocation of managerial andhuman resources, etc.
We introduced the in-house company system to accomplish these three objectives, but the ultimate goal is to fully
implement the “customer first” principle and effectively
respond to the needs of our customers. Under a holding
company structure, each in-house company will commit itself
to deliver the best possible services to our customers to meettheir actual needs in an integrated manner between the head
office and front lines, among banking, trust banking andsecurities functions, and also along with asset management
and research & consulting functions.

Embedding a Corporate Culture that
Encourages the active participation of ourworkforce to Support a Stronger Mizuho
One essential element for creating a strong organization thatcan realize the goal of being a “financial services consulting
group” is to take initiatives to embed a corporate culture thatencourages active workforce participation.
To promote the active participation of the workforce, wewill conduct a fundamental reform of our human resource
management in order to motivate all employees to step
forward in their own careers and to contribute to our organization, and to have them fully demonstrate their capabilities
as much as possible by continuously helping them develop
their expertise.
As for our efforts to establish and strengthen our corporate culture that is now putting down its roots as a result ofour past initiatives, we will continue to encourage all employees to put the Mizuho Values* into practice, and to further
promote internal communication.
*The values and principles shared by all of Mizuho’s internal stakeholders to
pursue the “Vision”: Customer First, Innovative Spirit, Team Spirit, Speed andPassion.

Message from the Group CEOGroup Management Policy in Fiscal 2016of rapid development of financial innovations.

Our Strategies for Value Creation

During the three years under the new medium-term businessplan, in addition to an uncertain regulatory environment,
financial institutions face a number of challenges affecting
the management environment. These include an approachingparadigm shift marked by instability in the economic structure
under which emerging markets were the drivers of growth,and by prolonged stagnation in natural resource prices, as wellas the appearance of game-changing factors such as a newcompetitive environment in all financial services fields as a result

What We Aim to Do

In Conclusion

Amid this environment, Mizuho is determined to fulfill its
social responsibilities with a view to its unchanging value as afinancial institution. This means that we must contribute to theeconomic and social development of the world, Asia and Japan,
and that we must also proactively respond to the expectationsof all our stakeholders, including our shareholders as well as
our customers, our communities, our own management, staff
and their families.
To rise to this task, we will continue to perfect the “OneMIZUHO Strategy” by creating a new business model as a“financial services consulting group.” We will be fundamentallycommitted to maintaining close relationships with our customers through our sophisticated risk taking capability and financial
intermediary function and build the future of economies andsocieties as the most trusted financial partner in providing solutions for our customers and communities. Moreover, we will
work to establish a sustainable competitive advantage, increase
our corporate value and fulfill even greater social missions thanever before.

Who We Are

To further pursue the “customer first” principle in fiscal
2016, as we give due attention to the uncertainties arisingfrom changes in the management environment, we will beworking to initiate the in-house company system and move iton track. At the same time, by promoting specific measures
to attain “operational excellence,” we will endeavor to
realize our objective of being a “financial services consulting
group” as we steadily implement the ten basic strategies set
in the new medium-term business plan.

Note: The above contains statements that constitute forward-looking statements
within the meaning of the United States Private Securities Litigation ReformAct of 1995. See the disclaimer at the bottom of page 3 of this Integrated
Report for information regarding factors that could cause actual results todiffer from those in the forward-looking statements.

Foundations for Our Corporate Value

July 2016

Financial Review

Yasuhiro Sato
President & Group CEO
Member of the Board of Directors
Mizuho Financial Group, Inc.

2016 Integrated Report23What We Aim to Do

Message from the Group CFO
We aim to contribute to the sustainable growthof our stakeholders as a “financial services
consulting group” through establishing a stableprofit structure and a robust financial base,while engaging in sound risk-taking.
Member of the Board of Directors
Managing Executive Officer
Head of Financial Control & Accounting Group (Group CFO)

Koichi Iida

Mizuho’s Financial Management Principles
Mizuho aims to contribute to the sustainable growth of its
diverse range of stakeholders, particularly its customers, theeconomies and industries of Japan and countries around theworld, and its shareholders.
To achieve this, our fundamental approach to financial
management is to establish a stable profit structure and a robust financial base that can withstand changes in the businessenvironment, and to fulfill our sound risk-taking function to
help our customers, economies, and industries realize growth.

Summary of Fiscal 2015
As a result of the challenging business environment including
increased uncertainties in the domestic and overseas economic
environment during the second half of fiscal 2015, Consolidated
Net Business Profits amounted to ¥852.8 billion (year-on-year
decrease of ¥24.1 billion). On the other hand, Credit-related
Costs amounted to ¥30.4 billion, which remained below theplanned level, and as a result of progress in cross-shareholdings
disposal, Net Gains Related to Stocks amounted to ¥205.6
billion (year-on-year increase of ¥73.7 billion). Therefore,
Consolidated Profit Attributable to Owners of Parent was¥670.9 billion (year-on-year increase of ¥59.0 billion).
Regarding our capital, Consolidated Common Equity Tier
1 Capital Ratio (CET1 Capital Ratio)*1 was 10.85% on a fullyeffectives basis*2, maintaining a sufficient level.
*1. Calculated by Mizuho including Eleventh Series Class XI Preferred Stock(balance as of March 31, 2015 : ¥213.1 billion, balance as of March 31, 2016:¥98.9 billion, mandatory conversion date: July 1, 2016)*2. Calculated by Mizuho based on fully-effective Basel III Rule as of March
2019, deducting total amount of regulatory adjustments

24

Mizuho Financial Group

Mizuho’s View of the Business Environment
and Financial Targets under the
New Medium-term Business Plan
View of the Business Environment
During the term of the new medium-term business plan entitled “Progressive Development of ‘One MIZUHO,’” which wasannounced in May 2016 and will cover the three-year period
ending in fiscal 2018, we cannot look forward to economic
growth at the same levels as in the past. Factors accounting
for this will be the less favorable growth in the emerging
countries, including China, which was a driving force for
global economic growth, the stagnation in crude oil and othernatural resource prices, and absence of strong growth momentum in the industrialized countries. In Europe and Japan,
negative interest rate policies have been introduced, and thebusiness environment for financial institutions is expected toremain challenging. In addition, continuous consideration is
being given to strengthen global financial regulations.

Financial Targets
As we work steadily to implement our new medium-termbusiness plan, we will also move forward with reforms in ourbusiness structure with a view to the next generation, andbuild a stable profit structure and a robust financial base and,
thereby, establish a resilient financial structure.
Specific financial targets of the New Medium-TermBusiness Plan include attaining CET1 Capital Ratio*1 of approximately 10%, Consolidated ROE*2 of approximately 8%,
RORA (Profit Attributable to Owners of Parent on Riskweighted Assets) of approximately 0.9%, Group Expense

Ratio*3 of approximately 60% (high 50% level, excluding
expenses related to the next-generation IT systems, etc.), andCross-shareholdings Disposal of ¥550.0 billion*4.

and pursue “operational excellence” and proceed with activities to improve productivity and reform the cost structure.
Who We Are

Establishing a Robust Financial Base
Disposal of Cross Shareholdings
To minimize the potential impact on our financial position
due to fluctuations in stock prices, we will reduce book valueof such shares by ¥550.0 billion between March 31, 2015
and March 31, 2019, the final year of the new medium-termbusiness plan.
Cross-Shareholdings Disposal Plan

What We Aim to Do

Aggregate of the necessary reduction amount isapproximately 40% of the total Japanesestock portfolio (as of March 31, 2015)
Disposal planby March 31, 2019
Holdings ofJapanese stocks:¥1,962.9 billion*(as of March 31, 2015)

Establishing a Stable Profit Structure

Reforming Productivity and Cost Structure by Pursuing
Operational Excellence
Transcending the framework of in-house companies and head
office, we will conduct a thorough review, without exception,of issues faced by the front-lines and existing work procedures*Other securities which have readily determinable fair values. Acquisition cost basis

Maintaining an Optimal Balance between Strengtheninga Stable Capital Base and Providing Steady Returns toShareholders
To strengthen Mizuho’s capabilities for coping with changes
in the business environment, including trends in global financial regulations, Mizuho will work to build a stable capitalbase to a level that is comparable with competing financialgroups. In addition, we will continuously aim to make steady
dividend payouts with a dividend payout ratio on a consolidated basis of approximately 30% as a guide for our consideration, in order to realize steady returns to shareholders.
In addition, as we maintain a grasp of changes in thebusiness environment, we will work to strengthen control
over our balance sheets in order to optimize risk and returnby managing risk-weighted assets and controlling liquidity
proactively and flexibly.

Financial Review

Strengthen Income from Customer Groups Centering on
Non-interest Income Business through a Major Shift ofManagement Resources
Through fully implementing the “customer first” principle,
we will make a major shift of management resources, including risk assets and personnel, to business areas where highprofitability and growth are expected, and aim to strengthen
profitability in Customer Groups mainly through developmentof non-interest income business.

Aim to achieve 40% to 50% of the above disposal plan by March 31, 2017
through accelerating dialogue and negotiation with customers

Foundations for Our Corporate Value

To increase risk and cost return, we will establish a stableprofit structure and robust financial base to establish a
resilient financial structure through implementing the following financial strategies.

Our Strategies for Value Creation

Financial Strategy in the New Medium-term
Business Plan

Dispose of at least approximately 70% of the necessary reduction amountby March 31, 2019

Note: The above contains statements that constitute forward-looking statements
within the meaning of the United States Private Securities Litigation ReformAct of 1995. See the disclaimer at the bottom of page 3 of this Integrated
Report for information regarding factors that could cause actual results todiffer from those in the forward-looking statements.

2016 Integrated Report25

Our Strategies for Value Creation
New Medium-term Business Plan: Progressive Development of “OneOutline of the New Medium-term Business Plan
Beginning in fiscal 2016, Mizuho began to implement its newSpecifically, we will further reinforce the “customer first”

three-year medium-term business plan, entitled Progressive

principle (customer-focused perspective) that we promoted in theDevelopment of “One MIZUHO”—The Path to a Financial

previous medium-term business plan. At the same time, in re-Services Consulting Group.

sponse to the challenging business environment, we will pursue

In addition to an uncertain regulatory environment, financial institutions face a number of challenges affecting the busi-“operational excellence” as part of a project to promote greater
improvements and efficiency of our operational processes.

ness environment. These include approaching a turning point

Under the new medium-term business plan, Mizuho willin the global economy marked by instability in the economic

perfect the “One MIZUHO Strategy” by creating a new busi-

structure under which emerging markets were the drivers

ness model as a “financial services consulting group” basedof growth and by prolonged stagnation in natural resourceon the foundations of the “customer first” principle andprices, as well as the appearance of game-changing factors

operational excellence. The new medium-term business plansuch as the rapid development of financial innovations. The

sets forth what Mizuho aims to become in the medium-term

new medium-term business plan seeks to establish a new busi-

through the implementation of 5 basic policies and 10 basic

ness model for the financial industry in light of these businessstrategies in three areas. In the 10 basic strategies, the plan

environment changes.

indicates what must be implemented with a focus on businessstrategy, financial strategy and management foundations.

26

Mizuho Financial GroupMIZUHO” —The Path to a Financial Services Consulting GroupOperational Excellence
operations supporting the integrated management of banking,goals of the “One MIZUHO Strategy.” By pursuing “opera-

trust banking and securities functions as well as both domestic

tional excellence,” we will make our operations more efficient,and overseas operations. In addition, we will incorporate techno-take the four elements of operation, namely: speed, quality/

logical innovation such as Fintech and new ideas. Through theseaccuracy, cost and sustainability, to a higher level, differentiate

processes, Mizuho will aim for improving operational efficiency

our “customer first” strategy from those of our competitorsand enhancing value for customers through raising the sophisti-

and enhance the added value of our services, which will leadcation of its operations.

to establishing a sustainable competitive advantage.

Who We Are

Mizuho’s operations are the actions that we take to fulfill the

Accordingly, we have newly formed our Operational Excellence Promotion Committee, which is chaired by the Group
CEO, and will promote these initiatives across the Group.

What We Aim to Do

To accomplish this, we will thoroughly review our existing business processes, and will work to share and standardize

Our Strategies for Value Creation
Foundations for Our Corporate Value
Financial Review

2016 Integrated Report27

Our Strategies for Value Creation

Five Basic Policies
1. Introduction of the In-House Company System
To further strengthen our “customer first” approach, on April

This new structure strengthens our “customer first” (the1, 2016, we introduced an in-house company system based

market-driven) approach.

on customer segments. The aim of this system is to lever-In addition, we reorganized our product and research func-

age Mizuho’s strengths and competitive advantage, which istions into two independent units, to enhance expertise and pro-the seamless integration of Mizuho’s banking, trust banking

mote the group-wide utilization of these functions. The Group’s

and securities functions under a holding company structure,research & consulting functions have been consolidated intoto speedily provide high-quality financial services that closely

the Research & Consulting Unit as “One Think Tank,” thereby

match customer needs. Previous to this transition, undercreating an ensemble of experts dedicated to helping customers

the former business unit structure, the units were organizeddevelop solutions to any issue they may be dealing with.

across several entities and each specialized in serving specific

From the view of implementing an effective management

segments of customers. Further pursuing this concept, thestructure based on customer segments, we have introduced ROE

in-house company system allows for the organization to takeas a performance indicator for each in-house company and havestronger, faster, and more consistent action according to themade it clear that the heads of these companies have responsibility

attributes of each customer during all processes from thefor profits and have delegated necessary authority for this purpose.

formulation of strategy to its execution.

28

Based on the Group’s risk appetite policies (basic poli-

Specifically, Mizuho has established the following five in-cies regarding the Group’s risk-taking), Mizuho is working tohouse companies, each covering a different customer segment:

increase profitability and reform its risk-return structure. We

the Retail & Business Banking Company, the Corporate & Insti-

are also endeavoring to streamline our head office operations

tutional Company, the Global Corporate Company, the Global

and implement speedy decision-making processes to further

Markets Company, and the Asset Management Company.

enhance the Group’s front-line business and sales capabilities.

Mizuho Financial GroupNew Medium-term Business Plan: Progressive Development of “One MIZUHO”—The Path to a Financial Services Consulting Group

2. Selecting and Focusing of Business Area
Mizuho has clarified areas of focus and areas to streamline based on attractiveness of the respective markets and its competitive adWho We Are

vantages. With a view to improving profitability, becoming even more customer focused, and optimizing business promotion, we areworking to improve profitability by streamlining and revisiting strategies and reallocating management resources into areas of focus.

What We Aim to Do
Our Strategies for Value Creation

3. Establishment of a Resilient Financial Base
We are endeavoring to strengthen profitability by improving risk-return and controlling expenses and, to achieve a stable profit
structure and create a robust financial base, Mizuho is accumulating additional capital and aiming for reforms that will establish a
resilient financial structure.

Related page: Message from the Group CFO, P24-25
Foundations for Our Corporate Value
Financial Review

2016 Integrated Report29Our Strategies for Value Creation

4. Active Involvement in Financial Innovation
Technological advances such as “Artificial Intelligence” and “Big Data” are opening up new opportunities that may be game changing for a wide range of financial service fields. Working together with selected third party Fintech companies, Mizuho looks to offer
products delivering improved and new customer value.

Related page: P60-61

5. Embedding a Corporate Culture that Encourages the Active Participation of Our Workforce toSupport a Stronger Mizuho
With objective of creating a sustainable competitive advantage, Mizuho is continuing its initiatives to make major reforms in its human resource management and strengthening its activities to establish a strong corporate culture.

30

Mizuho Financial Group

Related page: P90-93 ,94

New Medium-term Business Plan: Progressive Development of “One MIZUHO”—The Path to a Financial Services Consulting Group

Financial Targets for Fiscal 2018
Under the new medium-term business plan, Mizuho has established the following financial targets for fiscal 2018, which will be the
Who We Are

plan’s final year. These are to establish a stable profit base, create a robust financial base, and transform into a resilient financial structure.

What We Aim to Do
Our Strategies for Value Creation
Foundations for Our Corporate Value
Financial Review

2016 Integrated Report31

Our Strategies for Value Creation

Retail & Business Banking Company

We will become a financial services consulting
company which grows along with our customers
by providing the most suitable solutions fora variety of individual and corporate customer
needs.
Head of Retail & Business Banking Company

Toshitsugu Okabe

Offering more sophisticated and speedier services than before spanning seamlessly the range from banking, trust banking, securities to asset management
and research & consulting to a wide variety of customers
The Retail & Business Banking Company was formed through theservices. Mizuho is also working to increase customer convenience

consolidation of the Personal Banking Unit, Retail Banking Unit,

through initiatives that include further developing and increasing

and Corporate Banking Unit. This Company provides services tothe sophistication of its Internet and smartphone banking services.

individual customers, small to medium-sized enterprises (SMEs)
and middle-market corporations.

32

For SMEs and middle-market corporate customers, theCompany provides the best solutions swiftly for their management

For individual customers, drawing on the Group’s capabili-

issues such as growth strategies, dealing with business inheritanceties, the Company offers optimal products and services, in ways

issues, launching overseas operations, and others. For corporatethat comprehensively satisfy customer needs in the fields of asset

owners and others, the Company responds to the wide range ofmanagement and asset succession. Moreover, Mizuho has banking

needs of customers for assistance in asset succession, asset manage-

branches in every prefecture in Japan and stands No. 1 among

ment, and other matters by formulating optimal solutions in an

Japanese megabanks in ATM network and number of joint branch-integrated manner among banking, trust banking, securities, asset

es through which it provides banking, trust banking and securities

management, and research and consulting functions in the Group.

Mizuho Financial GroupKey Aspects of the Company







Concerns about the slowdown in
the global economy, changes in thebusiness environment resulting fromnegative interest rate policies
Increasing prominence of the shift
from savings to investment and thebusiness inheritance issues







Mizuho’s Strengths

Accelerate integrated strategies forbanking, trust banking, securities,
asset management, and researchand consulting as well as integrated
strategies for corporations and theirownersGroup’s areawide strategy promotion structure
Customer base and channel network• Corporates: About 600,000 customers• Individuals: About 24 million

Structuring efficient front-line systems
and optimizing service channels• Staffed locations: 790 locations

Expansion of services for beginnerand early-stage investors

What We Aim to Do

The greater entry into financial
sector by companies in otherbusinesses utilizing Fintech

Issues for Mizuho

Who We Are

Conditions in the External Environment

New Medium-term Business Plan for the Company (FY2016 through FY2018)

Pursuing optimal solutions to a variety of customer needs and realizing reforms
in the profit structure with balance sheet control
strategies based on our comprehensive financial services consult-ress in financial innovation, customer needs are becoming moreing capabilities while also strengthening our initiatives related

and more diverse, sophisticated, and global in scope. By demon-to business inheritance, initial public offerings (IPOs), and otherstrating comprehensive financial services consulting capabilities,

activities. Through these initiatives, the Group is working together

with the group companies working together as a whole, Mizuho

to provide optimal integrated solutions to meet the needs of bothwill not only respond to emerging customer needs but also iden-

corporations and their owners.

tify latent needs and issues that customers have yet to realize, andthen offer optimal services.
The Group is steadily expanding its transactions base by sup-Our Strategies for Value Creation

Along with changes in the financial environment and rapid prog-

Net Business Profit for Fiscal 2018 (Plan)100

porting individual customers in encouraging their shift from “savto their needs for asset management, asset succession, and other75
Foundations for Our Corporate Valueings to investment” by providing optimal proposals for responding

50

services. We are also developing new business domains by innovating businesses that make use of new financial technologies,

25

such as Fintech, and big data.

0

For small to medium-sized enterprises (SMEs) and middle-

FY2015 (Results)

FY2018 (Plan)

market corporations, we are providing support for their growth

50

4.0

500

3.5

400

3.0

300

2.5

200

0

0

1.7

+

+¥10

trillion40+0.24
million

20
0
FY2015 (Results)

FY2018 (Plan)

Financial Review

30

times

FY2015 (Results)

FY2018 (Plan)

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report33

Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Provide financial services consulting in an inte-

Value for customers

grated manner among banking, trust banking,gsecurities, asset management, and research andconsulting functions

Pursue the provision of optimal solutions
to wide ranging customer needs in an
integrated manner among banking, trust

4Accelerate initiatives for encouraging the shift
from savings to investmentsbanking, securities, asset management,
and research and consulting functions

4Establish new business domains by expanding thetransactions base through alliances with othercompanies and adding channels not requiring
face-to-face contact

4Establish overwhelming competitive advantage

Key strategies

Value for societyggrowth in individual monetary assets andin our business inheritance-related services

enabling sustainable growth in the Japa-

4Meet the needs for corporations and their own-

ers by supporting growth strategies, drawing on
Mizuho’s consulting capabilities

4S trengthen support for innovative start-ups

Facilitate flow of funds for supporting

nese economygContribute to sustainable growth in theJapanese economy by offering support for
growth strategies of SMEs and middlemarket corporations

Providing Solutions that Support Sustainable Growth of Customers and Society

The new Area One MIZUHO Promotion Project
To provide the highest quality integrated financial services to customers,
drawing on Mizuho’s banking, trust banking and securities capabilities,
Mizuho initiated its Area One MIZUHO Promotion Project in fiscal 2014.
The banking, trust banking and securities functions in each region convene
meetings to identify, from a wide perspective, and then implement what
will be necessary to become “the most trusted financial services group.”
Beginning in fiscal 2016, Mizuho newly launched its Area One MIZUHO
Promotion Project with the aim of growing together with regional economies and societies, confront the issues that must be addressed in each region
through integrated banking, trust banking and securities functions, and thenimplementing initiatives to solve various issues in collaboration with regional
governments, regional financial institutions, local businesses, members ofregional communities, and others. By building cooperative relationships withlocal cities, towns, and villages as well as regional banks, local chambersof commerce and others, Mizuho will be able to take active initiatives incounteracting the decline in local regions due to shrinking population, therise in welfare and medical needs along with the demographic aging of the
population, and, thereby contribute to regional economies and societies.

34

Mizuho Financial GroupRetail & Business Banking Company

Review of Fiscal 2015
Who We Are

Responding to wide-ranging customer financial needs and steadily expanding
the transactions base for asset management, corporate lending, etc.
Individual Customers

SME and Middle-market Corporations

2.5

0
FY2013

FY2014FY2015

March 31,2014

March 31,2015

March 31,2016

March 31,2014

March 31,2015

March 31,2016

40,00037,500Our Strategies for Value Creation

031Foundations for Our Corporate Value

In addition to responding actively to fund-raising needs, weoffered a wide range of solutions for corporations and theirowners that include solving management issues, helping
asset succession arrangements and managements for business owners and other customers, and, thereby, worked to
expand our customer base.
We also provided support for corporate growth strategies
from a “market-in” standpoint, offering assistance in M&A,
formulating corporate strategy and financial strategy in entering
overseas markets, while also offering support for businessinheritance and other related matters appropriate to the growthstage of each customer. Through these activities we endeavoredto assist customers in increasing their corporate value.

2.6

What We Aim to Do

Offering each and every customer optimal products andservices, providing in-depth responses to the financial needsof individual customers, we widened the customer base forasset management.
In addition, through the introduction of asset management roboadvisors utilizing Fintech, strengthening smartphone and SNS services, etc., we took initiatives to increasecustomer convenience. As a result, Mizuho has been awarded the Mobile Computing Promotion Consortium (MCPC)
award for five consecutive years.

30

0

ess developme
sin
nt
Bu
Business

Initiatives to support innovative start-ups
For innovative start-ups that have superior technology and ideas, Mizuho provides both loans

matchingIndustry, academia,
Matching services
and government
for large
collaboration
corporations [Operation]and equity financing, while also actively offering business development opportunities such as

MHBK

Training/education
Innovative Start-ups
Finance forprograms forventure businesses Coordination Department venture businessesingand creation of new jobs.

Mentoring network
Limited partnership for new business(LP) investments
divisions oflarge corporations

nt o rin g

MHSC
Strategic Research
Department

Seminarsmendaims to provide financial support that will lead to sustainable growth in Japanese economy

Fu

ing and strengthening its activities to support start-ups. Through these activities, MizuhoGroup
Venture Capitaln,

In April 2016, MHBK newly established its Innovative Start-ups Coordination
Department, and MHSC formed a Strategic Research Department with the aim of improv-

Financial Review

ministries. Other assistance includes holding seminars for training and mentoring.

iobusiness matching as well as through collaboration with industry, academia, and governmentat

TOPICSEd

uc

2016 Integrated Report35

Our Strategies for Value Creation

Corporate & Institutional Company

We will become our customers’ most “Trusted
Global Partner” by drawing on all our comprehensive capabilities to offer solutions that
respond to customers’ diverse issues and needs.
Head of Corporate & Institutional Company

Kosuke Nakamura

As its customers’ “Trusted Global Partner,” Mizuho offers a full lineup offinancial solutions
The Corporate & Institutional Company was formed and commenced
operations following the combination of the Corporate Banking Unit
(Large Corporations) and the Financial Institutions & Public Sector Business
Unit. This Company is in charge of providing services to large corporations,financial institutions, and public-sector entities in Japan.
In the large corporate customer market, based on its strong andlong-standing relationships with large corporate customers in Japan, theCompany offers a full lineup of financial solutions that combine its specialized functions in banking, trust banking and securities to meet customer
needs for fund-raising and fund-management as well as for formulationof corporate management and financial strategies.
In the financial institutions market, requirements of customers for formulation of capital policies and the sophistication of asset management
are rising, and the Company offers optimal solutions to meet their needs
based on collaboration among group companies.
For public sector entities, the Company provides comprehensive financial services including supporting for fund-raising through underwriting
public bonds and performing services as a designated financial institution.
Also, as one of the important issues in the Japanese economy is revitalizing regional economies, the Company is working to transform agriculture, forestry, and fisheries industries into growth sectors and is actively
introducing PPP and PFI arrangements* to facilitate financing of airportand public facilities projects.
*PPP, or Public Private Partnership is a scheme that enables collaboration between the
public and private sectors in projects that offer public services. PFI, or Private FinanceInitiative, is a typical form of PPP under which private-sector funds and knowhow
are used in the maintenance and operation of public facilities and the private-sector
participants in PFI projects take the initiative in supplying public services.

36

Mizuho Financial GroupKey Aspects of the Company
Conditions in the External Environment

g

g

g

g

Globalization of customers’ businessactivities, and a trend toward strategicemphasis on the interests of shareholdersgTrends toward convergence in someareas of strategies with competitors
More active initiatives in the public andprivate sectors for growth industries including
agriculture and revitalize regional economiesgMizuho’s Strengths

Further integration of managementof banking, trust banking andsecurities functionsg

Restructuring the business portfolio
through selectivity and concentrationgStrengthen responsiveness to projects
requiring a high level of sophistication, including equity finance, crossborder M&A, and other functions

g

Building an efficient front-officesystem and business processes

Strong relationships with its customers and customer base in eachmarketAhead of competitors in integratingbanking, trust banking and securities
functions
Sophisticated risk-taking capabilities
accumulated through developing
new financial businesses and knowhow

What We Aim to DogIssues for Mizuho

Concerns about the slowdown in the
global economy, changes in thebusiness environment resulting fromnegative interest rate policies

Who We Areg

New Medium-term Business Plan for the Company (FY2016 through FY2018)

Further evolving the “One MIZUHO Strategy” and restructuring the businessportfolio through rebalancing management resources
ticated, and global in scope. In addition, regulations regarding therisk-weighted assets and balance sheets of financial institutions arebeing tightened.
The Company aims to pursue the further development of the“One MIZUHO Strategy,” create the highest-level operating systems in Japan, and become the most “Trusted Global Partner” of
its customers. At the same time, the Company is transforming its

Our Strategies for Value Creation

The needs of customers are becoming increasingly diverse, sophis-

Net Business Profit for Fiscal 2018 (Plan)
300
250
200
150

business model through the rebalancing of management resources,build a robust and profitable business portfolio.

0
FY2015 (Results)

Foundations for Our Corporate Value

including organizational units, human resources, and assets, toFY2018 (Plan)

In specific terms, this means realizing business synergies throughalliances and collaborative arrangements with parties within andoutside the Company and rebalancing of management resources.
Moreover, the Company will accelerate its activities to achieve collaboration of banking, trust banking, and securities functions andbuild teamwork among its operating bases in Japan and overseas.
Through the implementation of these strategies, the Company isworking to increase profitability and raise its presence in league tables.

Domestic Straight Bonds and Municipal
Bonds (Underwriting amount)
Total Equity Underwriting Worldwide(Underwriting amount)
M&A (Any Japanese involvement)(Number of transactions)

FY2015(Results)

FY2018(Plan)

No. 1

No. 1

No. 3

No. 2

No. 1

No. 1

Financial Review

League Tables

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report37

Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan
Value for customers
g

4Realize business synergies among large

corporations, financial institutions, andcustomers’ diverse issues and needs

public-sector entities and collaborate further
with other in-house companies/unitsg

4Strategic and flexible staffing in focus areasgP rovide support for financial and business strategy that help customers’ sustainable growth
wheregrowth and profitability are expected

4Increase profitability through asset rebalancing
4Progressive measures for integration of man-O
 ffering optimal solutions to respond quickly toP rovide risk money based on sophisticatedrisk-taking capabilities

Key strategies

agement in banking, trust banking and securities functions and acceleration of borderless
response in Japan and overseas

Value for societygdevelopment through providing stable and steadyflows of funds to large corporations, financial institutions, and public sector entities

4Structure business systems and operatingprocesses to improve execution and successfully implement the Company’s strategyC ontribute to Japanese and global economicgH elp revitalize Japanese economy throughcontributing to nurturing new industries, realigning existing industries, and revitalizing regional
economies

Providing Solutions that Support Sustainable Growth of Customers and Society

Arrangement of risk money investment program responding to growth funding needs ofJapanese companies
Financial institutions are expected to play roles in supporting companies from a
broad perspective by sharing risk, providing industry and business knowledge,
and supporting the creation of corporate governance frameworks.
MHBK has arranged a joint investment program, “Blue Partners Fund,” inRisk Money
Joint Investment

TargetedCompany

Funds• Risk sharing throughJapanese companies need funding for business growth. By supporting corporate
provision of equity capital, MHBK is contributing to strengthening the competi-

Investment

MHBK• Capital enhancement

cooperation with the Development Bank of Japan. In a wide range of situations,
growth and providing risk money through joint investments with companies andCorporations, etc.

joint investments

TargetedCompany

Risk Money• Carve out support• Support for businessinheritance

Investment(DBJ)
Development
Bank of Japan
Blue Partners

tiveness of Japan’s economy and society.

Support for transforming agriculture, forestry, and fisheries into the sixth industrial sector
through collaboration with regional financial institutions and central/regional governments
MHBK has invested in 13 agriculture, forestry, and fisheries sixth industry funds
nationwide in collaboration with regional financial institutions and central/regional governments, and these funds have invested in 15 related projects.
Looking forward, by drawing on its customer base throughout Japan, MHBK
is supporting the transformation of Japan’s agricultural, forestry, and fisheries
industries into growth sectors and working to contribute to the revitalization ofJapan’s economy and society through regional revitalization.

38

Mizuho Financial GroupCorporate & Institutional Company

Review of Fiscal 2015
Who We Are

Working to Steadily Realize Increased Profits through Building a Strong Presencein Each Customer Segment
Large Corporations

4

280

+ %

270
260
250

What We Aim to Do

We worked to meet customer needs for fund-raising and asset
management as well as for financial and management strategies, and took the initiative in assisting in the development of
new industries and growth sectors by providing a wide rangeof solutions and drawing on our industrial expertise.
In addition, MHSC realigned its systems for serving large
corporations and increased its customer relationship managers.
MHBK and MHTB stepped up their collaboration in the areasof real estate and pension funds and strengthen their marketing capabilities.

0
FY2014FY2015

Financial Institutions and Public Sector Entities

55

Our Strategies for Value Creation

13%

+

50
45
40
0
FY2014FY2015

Foundations for Our Corporate Value

In view of the overseas M&A initiatives of major insurancecompanies and their moves to step up their overseas businessdevelopment as well as the needs of regional financial institutions for formulating capital policies and increasing the sophistication of their asset management, we won the mandates asfinancial advisor and lead arranger, and took the initiative in
proposing a wide range of asset management products.
For public sector entities, we maintained our leading sharein underwriting public sector bonds and offered services asa designated financial institution for such customers as theTokyo metropolitan government.
In addition, in collaboration with financial institutions andpublic-sector entities, we expanded our investments in agriculture, forestry, and fisheries sixth industry funds and undertook other active initiatives to promote regional revitalization.

TOPICS

Establishment of private equity funds for promoting exports to the Middle East
Mizuho established the Gulf Japan Food Fund and launched its investment activities. This is a
private equity fund which aims to provide support on the financing side for expanding exportsof Japanese agricultural, forestry and fisheries products, while, at the same time, working to

Financial Review

improve food security in the six nations of the Gulf Cooperation Council (GCC)*.
The objective of this fund is to invest in joint ventures newly established by Japanese andMiddle Eastern companies in the food and agriculture related businesses with the aim ofpromoting their growth. This fund is also working to add value and create markets that match
Japanese corporations with those in the Middle East.
*A total of six countries are member states of the Gulf Cooperation Council: Saudi Arabia,
the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait.

Gulf Japan Food Fund Signing Ceremony

2016 Integrated Report39Our Strategies for Value Creation

Global Corporate Company

We aim to be a company that achieves sustainable growth backed by in-depth understandingof our customers’ businesses and strengths in
the field of corporate finance. We provide solutions to customers, adapting to major changes
in world economic trends and the regulatoryenvironment.
Head of Global Corporate Company

Akira Sugano

Offering optimal solutions to Japanese companies entering new markets andblue-chip companies around the world
The Global Corporate Company mainly serves Japanese companies
operating overseas and non-Japanese companies, focusing on bluechip customers with international business operations.
For Japanese corporate customers, we support their businessexpansion beyond the borders through financial solutions andconsulting services ranging from providing information for customers considering entry into new markets to advising on business andfinancial strategies.
For non-Japanese corporate customers, we focus our resources
on selected companies, responding to a broad range of needs
while working to expand our business with them through building
long-term relationships. We support their business and financial
strategies in an integrated manner through collaboration amongbanking, trust banking, and securities functions, providing themnot only with financing but also with M&A advisory, bond underwriting (i.e. debt capital market (DCM) origination), transaction
banking, and other solutions.
In addition, in order to enhance our support for these companies, we are establishing more new offices around the world andare actively forming business alliances with financial institutions
and government-affiliated institutions of various countries.

40

Mizuho Financial GroupKey Aspects of the Company
Conditions in the External Environment

g

g

g

Trend among U.S. and European banks tofocus on their home markets or specializein the regions and fields where they havecompetitive advantagesgIncrease in funding costs denominatedin non-yen currencies, increase in
scarcity of liquidity and capital due totightening regulations

g

Mizuho’s Strengths

Sustainably expanding the blue-chipcustomer base on a global scaleg

Improving profitability throughcross-selling of securities and market
products, transaction services, etc.

ggUpgrading of product and service
offerings as well as strengthening
capabilities for making proposals tocustomersg

Further enhancement of non-yen
currency-denominated deposits anddiversification of non-yen currency
funding sourcesBlue-chip customer base and strong
portfolio
Strong presence in Asia andNorth America
Strong capabilities to provide solutions backed by integrated banking
and securities functions
Broad office network in Asia andaccess to information on local
companies and regulations

What We Aim to DogIssues for Mizuho

Uncertainty in the European economies,
the slowdown of growth in China andother emerging economies, prolonged
stagnation in natural resource prices,and rising geopolitical risks

Who We Areg

New Medium-term Business Plan for the Company (FY2016 through FY2018)

Developing a sustainable customer, service, and business base withgrowth potential for realizing our objectives
deposits and diversify its funding sources through the issuance of non-of tightening regulations continues, the Company works to strongly

yen currency-denominated bonds.

and sustainably support customers’ businesses to become their mostreliable business partner.

Our Strategies for Value Creation

As the world economy becomes increasingly uncertain and the trend

Moreover, the Company is actively pursuing operational excellence
to improve its business processes.

As for non-Japanese companies, we have selected about 300

Net Business Profits for Fiscal 2018 (Plan)

corporate groups on a worldwide basis for focus and are developing
long-term relationships with them for mutual sustainable growth.

250

Furthermore, we adopt the industry sector-based approach to thesecompanies, focusing on sectors where we have an in-depth underwe offer solutions based on our Group-wide services reinforced bytransaction banking, which we are working to strengthen in order toprovide enhanced services and generate more profits.
Meanwhile, in order to secure the liquidity in non-yen currencies, the

192*
170

190±
Foundations for Our Corporate Valuestanding and a record of accomplishments. Along with this approach,

200
150
100
0

FY2015 (Results)

FY2018 (Plan)

Company is working to strengthen its non-yen currency-denominatedOverseas Non-interest Income*Non-yen Currency-denominated Deposits*

10%

30%

+

+

FY2018 (Plan)

FY2015 (Results)

Financial Review

FY2015 (Results)* Global Corporate Company managerial basis,
excluding commitment fees and guarantee fees, etc.

FY2018 (Plan)* Major overseas subsidiaries including MHBK, Global Corporate Company managerial basis,
non-yen currency-denominated customer deposits, planned amount versus FY2015 estimate

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report41

Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Improving the business portfolio• Concentration of capital and liquidity in portfolios

Value for customers

with high profitability• Expanding the Super 30 (50) Strategy to Global 300
Strategygbusinesses by offering optimal solutions for their

4Maximizing cross-sellingbusiness and financial strategies• Maintain the top 10 positions in DCM in the Americas
and use our presence in the U.S. to strengthen
DCM business on a global basis• Enhance capabilities for offering proposals for customers’
business and financial strategies, using the industry
sector-based approach• Strengthen transaction banking to secure stable noninterest income and non-yen currency baseSupport the global development of customers’

Key strategies

4Reinforcing the business and management base• Enhance non-yen currency funding capabilities

Value for societygContribute to realignment of industries on a
global scale and industrial development inemerging economiesgContribute to further development of financial
markets in countries around the world andhuman resources development• Pursue operational excellence

Providing Solutions that Support Sustainable Growth of Customers and Society

Development of the Non-Japanese Focus Strategy:
From the Super 30 (50) to Global 300
Previously, Mizuho selected around 30 to 50 corporate groups for focusedbusiness promotion, in each of the following four regions: the Americas, EMEA,
Asia & Oceania, and East Asia. However, since economic sizes, growth rates,
and market maturity, etc., vary by region, we now select targeted corporategroups on a global basis and pursue what we renamed Global 300 Strategy. Asof fiscal 2015, we had selected more than 250 such global corporate groups,
and we are aiming to expand the list to about 300 corporate groups by fiscal
2018 to ensure sustainable growth of our customer base.
We are working to build long-term relationships with our Global customer
groups, including their top management. Backed by our strengths in analyzing
fundamentals and trends in addition to our know-how and expertise in businessand finance in making proposals, we will offer a broad range of products andservices to address our customers’ needs and thereby contribute to the development of industries worldwide.

42

Mizuho Financial GroupFY2015More than250

groups

FY2018
Approximately

300
groupsGlobal Corporate Company

Review of Fiscal 2015
Who We Are

Steadily raised Mizuho’s global presence by expanding our non-Japanese customer baseand our office network around the world
Accelerated our focus strategy for non-Japanesecompanies (Super 30 and Super 50 Strategy)

120

14th
(2.5%)

13th(2.9%)

9th(3.5%)

4

3

90

2

60

1

0

0
FY2013

FY2014FY2015* Bonds with issuance amount of US$250 million and above
issued by investment grade corporations in the Americas.
Source: Dealogic

Foundations for Our Corporate Value

To provide in-depth support to companies entering new markets
and expanding their businesses abroad, we are continuing toaugment our global office network. In fiscal 2015, we opened abranch in Yangon and a front office in Thilawa in Myanmar. We
also opened a branch in Ahmedabad in India and a representative
office in San Francisco in the U.S. More recently, we opened a
new branch in Vienna, Austria. In addition, to provide support forJapanese companies entering new markets, we proactively concluded memorandums of understanding for business cooperation
with government-affiliated institutions and financial institutions
around the world.

150

Our Strategies for Value Creation

Expanded Our Network and Alliances(millions of US$)

What We Aim to Do

In addition to supporting the global business expansion of ourJapanese corporate customers, we have selected approximately
30 to 50 non-Japanese customers for focused business promotion
at each of the four regional units: the Americas, EMEA, Asia &Oceania, and East Asia. In North America, we acquired the wholesale asset portfolio from the Royal Bank of Scotland and hired morethan 100 staff from their operations, thus further strengthening ourbanking and securities collaboration and expanding our blue-chipcustomer base. In fiscal 2015, we ranked within the top 10 in the
U.S. DCM league table ranking, reflecting our increasing presence
beyond the borders.

Opening ceremony for the Ahmedabad Branch

TOPICS

Responding to medium- to long-term funding needs in Asian currencies and initiatives to nurture
the growth of Asian bond markets* AMBIF: The ASEAN+3 Multi-Currency Bond Issuance Framework is part of the Asian Bond Market Initiative,
which has been jointly established by the finance ministries and central banks of the ASEAN+3 countries.
The framework aims to standardize documentation and procedures related to bond issuance among thesecountries to promote cross-border bond transactions.

Financial Review

In July 2015, MHBK issued bonds denominated in offshore renminbi. In addition, in September
2015, MHBK issued Thai baht (THB) denominated bonds in the Thai domestic market basedon the ASEAN+3 Multi-Currency Bond Issuance Framework (AMBIF)*, which was the first issuance of bonds under this framework. Both of these issues were listed on the Tokyo Pro-Bond
Market. Going forward, Mizuho will actively respond to the needs of its customers for funding
denominated in Asian local currencies and work to contribute to the development of bondmarkets in Asia. (The issuance of THB-denominated bonds was selected by the Thai Bond Market
Association as the Deal of the Year 2015.)

Ceremony for presentation of the Best Bond
Award by the Thai Bond Market Association

2016 Integrated Report43Our Strategies for Value Creation

Global Markets Company

By drawing on the broad range of products andservices of Mizuho’s banking, trust banking, andsecurities functions, we will provide comprehensive
solutions to effectively meet customer needs while
generating high and stable profits, and are aiming tobecome a top-class Asian player in the global market.
Head of Global Markets Company

Junichi Kato

Providing solutions using market products to customers and managing
a stable portfolio in ALM / Investment businesses
The Global Markets Company conducts sales & trading by offeringsolutions to customers through providing market products, andengages in ALM* and investment businesses through asset management and fund-raising.
In the Sales & Trading business, the Company responds to therisk hedging and asset management needs of a wide range of customers in Japan and overseas. It has an in-depth understanding ofcustomers’ needs and draws on detailed analysis and forecasts offinancial market trends. It also takes advantage of its sophisticatedknowledge and experience, etc., in various financial products andits expertise to offer optimal solutions to each customer.
In the ALM / Investment business, it identifies changes in themarket quickly through early warning control, and implements
diversified investment suited to the market environment and theoutlook. In this way, it works to conduct portfolio managementthat achieves a high and stable performance.
*Asset liability management (ALM): Comprehensive management of assets andliabilities

44

Mizuho Financial GroupKey Aspects of the Company

ggHigher volatility in each market due
to uncertainty about the future
outlook, declining risk appetite ofmarket participants, and increasing
geopolitical risks

Issues for Mizuhogg

Mizuho’s Strengths

Responding to the needs of investors
including hedge funds, overseas
management companies, etc.

gEnhancement of portfolio
managementg

Growing needs among customers forrisk hedges and asset managementg

Who We Are

Conditions in the External Environment

Sophisticated product capabilities basedon collaboration among banking, trust
banking and securities functions
Sales & Trading structure thatprovide customized solutions for awide variety of needs by customer
segment and individual company

What We Aim to Do

Portfolio management structure that
optimizes asset allocation and adjusts
risks by diversified investment depending on market environment

New Medium-term Business Plan for the Company (FY2016 through FY2018)

Achieve the aims of Mizuho’s market business model by pursuing“Customer First” Principle (Customer-focused Perspective)
Our Strategies for Value Creation

The Company responds to various kinds of risk hedging and

Net Business Profit for Fiscal 2018 (Plan)

asset management needs of customers related to interest rates,
foreign exchange, equities, etc., by offering market products. The
Company’s basic strategy under its new medium-term businessplan is to achieve Mizuho’s market business model by offering
products and solutions that meet the needs of each customer

600
450

398 428*

330±

300

segment and individual company through the “customer first”
approach.

0
FY2015 (Results)

tions to meet customer needs through collaboration between

Foundations for Our Corporate ValueIn the Sales & Trading business, it works to offer optimal solu-

150

FY2018 (Plan)banking and securities functions. It places a particular focus on
its business for global investors, expanding its product line-up
and upgrading its capabilities.
In the ALM / Investment business, it is enhancing portfolio
management through emphasis on early warning control anddiversified investment, aiming to generate stable profits.
With Sales & Trading and ALM / Investment as its two pillarsof business, the Global Markets Company aims to establish abase for generating stable profits and enhance its capabilities forproviding high quality services to its customers.

(billions of ¥)

400

375

25%

+

350
300

300

250
Financial Review

0
FY2015 (Results)

FY2018 (Plan)*Global Markets Company managerial basis

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report45

Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Make further progress in Sales & Trading

toward providing customized solutions for a

Value for customers

wide variety of needs by customer segment
and individual company

gproducts that respond to a wide range of risk

4Strengthen business with investors4Enhance portfolio management based on early

Provide optimal solutions based on market
hedge and management needs

Key strategies

warning control and diversified investment

4Respond to new technologies, including
artificial intelligence

4Increase productivity by pursuing operational
excellence

Value for societyg

As global financial professionals, provide market
liquidity and contribute to the sound development of financial markets through participation
in industry groups

Providing Solutions that Support Sustainable Growth of Customers and Society

Initiatives to help customers attain sustainable growth and contribute to the sound development of financial markets through responding to risk hedge and asset management needs
Mizuho provides support for customers’ business and financial
strategies by offering high-quality solutions that make use of market
products and answers to customer needs for risk hedges and asset
management, through collaboration among its banking, trust banking and securities functions.
We also cover a wide range of business domains, and among
companies providing clearing services of Japan Securities Clearing
Company (JSCC), MHBK stands No.1 in such services for yen interest
rate derivatives.
In addition, we are an active participant in the International Swaps
and Derivatives Association (ISDA) and other industry groups. Withinthese associations, we provide support to our customers for responding to regulations and contribute to the sound development of financial markets by making proposals based on our abundant knowledge
and know-how accumulated through various businesses.

46

Mizuho Financial Group

Dealing room in the Head Office of MHBKGlobal Markets Company

Review of Fiscal 2015

Sales & Trading Business

Trends in Sales & Trading-related Income*1,2
145

6

+ %

136
128

130
115

100

100
0

FY2013

FY2014

What We Aim to Do

In the Sales & Trading business, MHBK worked to further
develop its business by offering proposals for optimal market
products, such as foreign exchange, interest rate, commodities, etc., responding to changes in the market environment.
Meanwhile, MHSC took steps to strengthen its capabilities foroffering products in the equity and fixed income businesses.
In addition to these initiatives, in Japan and overseas, we
focused on further advancing the collaboration between
our banking and securities functions, and thereby steadily
expanded our customer business.

Who We Are

Provided effective portfolio management and strengthened capabilities forproviding services to customers

FY2015*1. Index with FY2013 results defined as 100*2. Transaction Banking Unit managerial basis

ALM / Investment Business
Trends in ALM / Investment-related Income*1,2

4

+ %

130

Our Strategies for Value Creation

In the ALM / Investment business, business environment wasquite challenging as investment yields dropped substantiallyalong with the global decline in interest rates and shrinkage in the spreads between short-term and long-term. We
worked to identify changes in the market at an early stage,
and then conduct operations that timely capture market
movements. In addition, we took sufficient account of risk
and return, and, through optimal allocation among bonds,
equities, credit instruments, etc. worked to manage portfolios based on diversified investment.

119

120

114

110
100
0

100

FY2013

FY2014FY2015

Foundations for Our Corporate Value*1. Index with FY2013 results defined as 100*2. Transaction Banking Unit managerial basis

TOPICS

Issuance of U.S. dollar-denominated Formosa Bonds (offshore bonds issued in the Taiwan market)
To support customers’ business in non-yen currencies, Mizuho
issues non-yen currency denominated bonds not only in U.S.
dollars but also Hong Kong dollars, Singapore dollars, etc., toprovide a stable non-yen currency funding base.
In fiscal 2015, we newly issued Formosa Bonds denominatedFinancial Review

in U.S. dollars. In this way, Mizuho is working to further diversify
its non-yen currency funding sources and follow on from this toexpand opportunities for offering products to large investors in
the Taiwan market.

2016 Integrated Report47

Our Strategies for Value Creation

Asset Management Company

Contribute to activating domestic financial assets
through asset management business by fulfillingthe highest level of fiduciary duties* and satisfying customer needs.
*Fiduciary duties is a general term for the broad range of various roles and responsibilities thatfiduciaries are expected to fulfill when engaging in certain business activities in order to live up to
the trust that is placed in them by their customers.

Head of Asset Management Company

Katsunobu Motohashi

Newly established Asset Management One* will work together with Mizuho’sbanking, trust banking, and securities functions to provide customers with products and services that will respond to a broad range of their needs* Newly formed Asset Management One will commence operations in October 2016 and bring together the asset management functionsof the Group in a single company.

The Asset Management Company works together with its banking, trust banking, securities, and companies providing asset

Assets under Management as of March 31, 2016

management to serve the needs of a wide range of customers,from individuals to institutional investors (pension funds, financial¥39 trillion

institutions, business corporations, etc.) by providing products and(75.0%)¥13 trillion(25.0%)

services of the highest quality.
A new asset management company will be formed from theintegration of DIAM, the asset management functions of MHTB,
MHAM, and Shinko Asset Management and will play a central role¥52

trillionin the Company. This company will be established and begin operations in October 2016, named as “Asset Management One.”
Asset Management One will bring together their asset manage-

 Investment Trusts
 Investment Advisory

ment know-how in the domains of investment trusts, investment
advisory, trust banking, and life insurance. It will offer products
and services that will aim to substantially increase customer
satisfaction.
In addition, MHBK and MHTB are in charge of management andadministration for DC pension plans*1, which are long-term andtax-exempt asset formation scheme.
Furthermore, MHTB will administer DB pension plans*2, while
MHSC is responsible for management of wrap accounts*3.

48

Mizuho Financial Group*1. Defined Contribution Pension Plan
*2. Defined Benefit Pension Plan
*3. Under wrap accounts, individual customers sign discretionary asset
management contracts with securities companies or trust banks, and they
provide services covering from asset management to administration services.

Key Aspects of the Company

g

g

g

Ongoing shift from savings to investments
Possibility that public pension payments may be cut in the future dueto the decline in the birthrate anddemographic aging of the populationgg

Mizuho’s Strengths

Strengthen its capabilities for providing products and services to accelerate the shift “from savings toinvestments” among individual
customersgStrengthen the offerings of highvalue-added products and services,
as well as its consulting functions,for institutional investors

Strong capabilities for asset management and product offerings of AssetManagement One in which Mizuho’s
asset management know-how ininvestment trusts, investment
advisory, trust banking, and life
insurance were integrated

What We Aim to DogExpansion of the range of tax-exempt asset formation scheme,
including introduction of NISA* andDC pension plan reforms

Issues for Mizuho

Who We Are

Conditions in the External Environment

Introduction of a negative interest
rate policy by the Bank of Japan*NISA: Small-lot, tax-exempt investment accounts

New Medium-term Business Plan for the Company (FY2016 through FY2018)

The Company will contribute to the vitalization of household

Our Strategies for Value Creation

Developing product capabilities, which is the driver for the asset managementbusiness
Net Business Profit for Fiscal 2018 (Plan)

financial assets through providing high-quality products andservices that draw on the strengths developed in a variety ofbusiness lines of the companies to be integrated into AssetManagement One, and develop investment products which will
be suitable to medium- to long-term asset building for individual

40
30
20

coping with negative interest rate as well as products which cansubstitute for deposits, thus encouraging a shift “from savings toFoundations for Our Corporate Valuecustomers who need stable asset formation and solutions for
100
FY2015 (Results)

investments.”

FY2018 (Plan)

For institutional investors who have sophisticated asset management needs such as further portfolio diversification and stabilization and identifying alternatives to investments in government
bonds, the Company will make full use of the management
know-how of Asset Management One.
In addition, in the pension business, it is expanding its service(billions of ¥)

1,500

50%

1,200

1,200

+

offerings along with its consulting functions.
900

800
Financial Review

600
0FY2015 (Results)

FY2018 (Plan)*Exchange Traded Funds
Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report49Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Developing product capabilities• Offer products that respond to the needs of depositors under a negative interest rate environment andthat meet the requirements of institutional investors
for ESG*1 and engagement*2*1. An abbreviation for environment, society, and governance,
which is one of the criteria used by investors for selecting
investees*2. “Having constructive dialogue” with investee companies toencourage them to increase their corporate value and attainsustainable growth

4Focusing on investment trust business• Provide optimal asset management services that
respond to customer needs through group-wide
collaboration

Value for customersg

Respond to the increasingly diverse and sophisticated needs of institutional investors andprovide proactive asset management support
for individuals’ asset formation efforts

Key strategies

Value for societygContribute to future expansion of national
wealth, supply funds for growth to companies,
and work toward realizing a virtuous circle in

4Expand services for the pension business• Strengthen consulting functions for pension funds

the economy by promoting the shift “fromsavings to investments”• Address reforms in the pension systems, including
the DC pension system for individuals

Providing Solutions that Support Sustainable Growth of Customers and Society

Develop and offer asset formation products that will provide a bridge for individual customers
to shift “from savings to investments”
In view of the declining birthrate and aging of the population,

In addition, through these initiatives, we will contribute to vitalizing

there is a strong possibility that the level of payments from publicdomestic financial assets.

pensions may erode. Accordingly, it will become increasingly im-* This ratio shows the amount of public pension payments that pensioners
receive when they begin to receive pensions at age 65, compared with the
cash salaries received (including bonuses) of persons of working age.

portant for individuals to build their asset portfolios through asset
management on their own initiative.
According to the “2014 Actual Valuation of the Employees’
Pension Insurance and the National Pension,” prepared by Japan’s
Ministry of Health, Labour and Welfare, the income replacement
ratio* was 62.7% in fiscal 2014, but the outlook is for a gradualdecline to 50.6% by fiscal 2043. In addition, it is necessary toconsider the possibility that cash and deposits set aside by individuals for their retirement would be eroded by inflation.
In view of this pension market environment, to meet the medium- to long-term asset formation needs of individual customers,
Mizuho is working to develop and offer asset management products that will lead to the shift “from savings to investments.”

50

Mizuho Financial GroupAsset Management Company

Review of Fiscal 2015
For individual customers, we offered investment trust, fundwrap, and other products to meet their needs for medium- tolong-term asset formation. For institutional investors, we offered advice on asset allocation and the combination of asset
management strategies based on analysis and evaluation of
their portfolios.
Also in the DC pension plan business, Mizuho is in the top
ranks in terms of the number of subscribers and assets undermanagement in corporate-type DC pension plans.

Number of Corporate DC Subscribers(thousands)

960

1,000

+ %

1,024

813

800
600
0

May 31,
2013

May 31,
2014

What We Aim to Do(Source)
Newsletter on Pension &Investments

May 31,
2015

Decided to Integrate Group Asset Management Functions:
Birth of a Leading Asset Management Company in Asia
As of March 31, 2016
MHFG
MHBK

Dai-ichi Life Insurance

MHTB(Asset management function)

MHSC

MHAM

DIAM

ShinkoAsset Management

Our Strategies for Value Creation

The company’s name, “Asset Management
One,” represents our vision of becoming thenumber one asset management company
in terms of customer trust by providing ahigher level of satisfaction through the collaboration among the four companies integrated into the new company. Furthermore,
the new name also represents our aim tobecome the number one asset managementcompany in Asia and become competitive
with the largest global asset managementcompanies.

Who We Are

7

1,200

After integration
MHFG
MHBK

*1. Government Pension Investment Fund
*2. As of March 31, 2015 (Source) GPIF

MHTB

Asset Management One

Re-outsource asset management

Assets Under Management(trillions of ¥)

60
50

53

52

March 31,2015

March 31,2016

Foundations for Our Corporate Value

The establishment of Asset Management One will mark thebirth of an asset management company that is outstanding
quality and quantity. In terms of quality, in the public investment
trust and investment advisory, it will offer various funds that havebeen highly regarded by third parties. In terms of quantity, AssetManagement One will have assets under management (AUM) of¥52 trillion, which will make it a top-class AUM in Asia. It will also
result in the top ranks in terms of funds entrusted from Japan’s
GPIF*, which is the largest public pension fund in the world.

MHSC

Dai-ichi Life Insurance

47

40
30
0

March 31,2014

TOPICS*Brand name for Matthews International Capital Management

Financial Review

Capital and business alliance with Matthews Asia*

Mizuho entered into a strategic capital and business alliance with Matthews Asia, which isan independent, privately owned firm and the largest dedicated Asia investment specialist
in the United States. The alliance will enhance Mizuho’s capabilities to respond to customers’ needs as well as expand Mizuho’s global asset management platform. Mizuho will work
to expand the lineup of competitive investment products that cover the pan-Asia region.

2016 Integrated Report51

Our Strategies for Value Creation

Global Products Unit

By providing optimal solutions for customers,
drawing on Mizuho’s capabilities across its banking, trust banking, and securities functions aswell as in-house companies, we aim to become aprofessional group that realizes the developmentof “financial services consulting group.”
Head of Global Products Unit

Daisuke Yamada

Offering sophisticated optimal solutions through the fusion of
investment banking and transaction banking functions
The Global Products Unit was formed from the integration of

global custody, fund management, securities transfer agency

Mizuho’s Investment Banking Unit and Transaction Banking Unit.

services, and securities administration.

In the investment banking business, the Unit offers optimalThis Unit acts as the functional product platform for thesolutions through collaboration across the banking, trust banking

Group as a whole and endeavors to further increase Mizuho’s

and securities functions, focusing on the five areas of M&A, reallevel of professionalism and the usage of functions across cus-

estate, asset finance, project finance, and corporate finance.

tomer segments. Adhering to the market-driven approach that

For the transaction banking business, services provided include

in financial products and to offer solutions for a wide range of

trade finance, correspondent bank yen settlements, yen custody,

customers across the in-house companies in Mizuho.

MHBK
Acquisition FinanceReal Estate Finance

Customers

Asset Finance
Project Finance
Syndicated Loans
Domestic and overseas transactions• Cash Management• FX/Global Transaction• Trade Finance

Custody (for overseas customers)

52

Mizuho is aiming for, this Unit is working to enhance its expertise

domestic remittances, foreign exchange, cash management,

Mizuho Financial Group

Main Product Lineups
MHTB

MHSC

Real Estate Brokerage

M&A Advisory

Real Estate Trust/
Asset Management

Real Estate Private Fund Arrangements

Trust Solutions
Securitization Business
Using Individuals’ Funds
Transfer Agency
Custody (for domestic customers)

Asset Finance Arrangements
Debt Capital Markets (Bond Underwriting)
Equity Capital Markets (Equity Underwriting)Key Aspects of the Unitgg

Increasing risks of price fluctuations
in equities, bonds, real estate,natural resources, and other assets
caused by growing uncertainty inthe global economy
Expansion of new settlement businesses as a result of advancements
in settlement methods and technological innovation such as Fintech

Issues for MizuhogggStrengthening our service capabilities through accelerating seamless
operation of banking, trust banking,and securities functions
Strengthening our global operations
in line with product lineup
Developing products responding to
new technologies and changes inthe business environment
Structuring front-line systems topromote efficient businessesggStructures that enable organic
combinations of the expertise ofMizuho’s group companies
Best-in-class record of accomplishments in M&A advisory, project
finance, asset-backed securities(ABS), syndicated loans, DCM (bondunderwriting), custody, cash management systems (CMS), and otherareas

What We Aim to Dog

Mizuho’s Strengths

Who We Are

Conditions in the External Environment

New Medium-term Business Plan for the Unit (FY2016 through FY2018)

Offer optimal solutions for customer needs as a professional group offinancial products
integrated manner among banking, trust banking, and securities

approach, Mizuho need to respond to constantly changing cus-

functions on a global basis and to enhance its expertise, in order

tomer needs, by identifying changes in the external environment

to continuously provide optimal products and services.

and various risks that may emerge from them.
With customers’ needs increasingly sophisticated and diversified, the Unit will advance the management system in an
Offering seamless solutions of banking, trust banking
and securities functions (Investment banking)

Our Strategies for Value Creation

To realize Mizuho’s aim of being customer first (the market-in)

In addition, by strengthening its initiatives in new businessdomains, the Unit will work to contribute to improving customer
convenience.
Offering solutions for each customer at each stage ofcash management (Transaction banking)Foundations for Our Corporate Value
Financial Review

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report53Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Strengthen capabilities for providing
products seamlessly among banking,

Value for customers

trust banking and securities functions

g

4Strengthen proactive initiatives in new
business domains

cial strategies as their needs become morediversified and sophisticated through providing• Offer new fund-raising solutions that make use offunds of individual investors, etc.
• Offer new settlement solutions using Fintech

Contribute to customers’ businesses and finan-

optimal solutions globally
Key strategies

4Promote Operational Excellence, structuresystems for supplying optimal products, andValue for societygstrengthen the human resource and operational base
• Expand comprehensive business promotions on a
global basis• Rebalance organizations and personnel, etc.

Offer solutions on a global basis, taking advantage of sophisticated expertise, and contributeto the development of the social infrastructuregContribute to the development of global settlements system through participating in activities
of industry groups, etc.

Providing Solutions that Support Sustainable Growth of Customers and Society

Started providing supply chain finance that supports improvements in customer’s cashflows
Mizuho has begun to provide supply chain finance systems for large corporations that contribute to improving the cash conversion cycle* by improving
the efficiency of cash settlements with suppliers in Japan and overseas andthe efficiency of cashflow management. These systems improve the efficiency
of cash usage for customers, and, at the same time, help to facilitate the cash
inflow and outflow for suppliers, thus making it possible to strengthen theirties with suppliers.
*Number of days it takes a customer to collect cash used for procurements from salesof its products

Mizuho

6. Payment before
the due date 3. Request forof purchasepurchase ofof receivables receivables
2. Request forpurchase ofreceivables

Supplier• Shorten Cash

Conversion Cycle

4. Approval ofpurchase ofreceivables

SupplyChain Finance
1. Invoice upload

7. Due date ofpayment ofreceivables

5. Notice of transfer ofreceivables/approval

Buyer(Customer)• Strengthen

Relationships with
Supplier

Providing of new fund raising methods aimed at wider use of renewable energy sources
To assist in the development of a sustainable society, Mizuho is providing
various types of support to expand the use of renewable energy. In June
2016, Takara Leben Infrastructure Fund, which is investing mainly in mega
solar power plants, became the first fund to list on the Infrastructure Fund
Market of the Tokyo Stock Exchange. At that time, Mizuho provided its full
support with MHSC acting a listing lead manager, MHTB performing the roleof Administrator of the Investors’ Registry, and MHBK taking the lead role inarranging the financing.

54

Mizuho Financial Group

Leben Solar ShioyaGlobal Products Unit

Review of Fiscal 2015

Investment Banking Business*Arrangements under which the operation of public facilities, etc., is assigned
to a private sector business, while the ownership of the facilities remains withthe public sector.

Transaction Banking Business

FY2015Results

M&A Advisory for Announced Deals(Japan Corporations)*1

No. 1

Project Finance (Japan)*2

ABS Lead Manager*4

No. 1
No. 1
No. 1

Japan Publicly Offered Bonds(Industrial Bonds & Electric Power Bonds)*5

No. 1

Syndicated Loans (Japan)*3*1. Number of deals basis, excluding real estate deals*2. Amount basis, bookrunner basis*3. Amount basis, bookrunner basis*4. Amount basis, Asset Backed Securities*5. Underwriting amount basis, excluding own bonds

Principal Accomplishments inTransaction Banking

FY2015Results

CMS*1

No. 1
No. 1

Custody (Sub-Custodian)*2

Our Strategies for Value Creation

We have strengthened consulting functions that include
establishing a dedicated team to provide “one stop” services,
responding to increasing customers’ requirements for efficient global cash management, and the formation of a dedicated team to provide services in the stock transfer businessfor newly listed companies.
In addition, we expanded services to increase conveniencefor customers, including the introduction of a supply chain
finance system to help customers increase the efficiency of
their cash management and provide support for strengthening relationships with suppliers, and services that allow corporate customers to open new accounts via the Internet.

Principal Accomplishments in theInvestment Banking

What We Aim to Do

We arranged various deals, including major acquisition deals
overseas and business succession deals as financial advisor(FA), and the first project financing for the concession business* in Japan.
In addition, in order to establishing competitive advantage,
we expanded our bond underwriting divisions and strengthened our capabilities to respond to real estate investors.

Who We Are

Compiling a top-class list of accomplishments in each of its business lines and put inplace frameworks for promoting further business development

Foundations for Our Corporate Value*1. Cash Management Service
Mizuho won the first place in terms of customer satisfaction in the CMS
ranking survey of Asia Money magazine (in the Japanese market, covering
companies with large sales).
*2. Securities custody and administration for securities investments
Mizuho won the first place in custody bank survey rankings in Japan inboth Global Custodian magazine and Global Investor magazine.

TOPICS

Acquisition of shares of Simplex Real Estate Management and Simplex REIT Partners
In order to enhance its asset management capabilities andexpand its business areas, which are expected to show further
development and expansion, MHTB made Simplex Real Estate

MHTB
100%

Management, an asset management company for privateFinancial Review

placement real estate funds, and Simplex REIT Partners, an asset management company of REIT, its subsidiaries through theestablishment of Simplex Investment Advisors. Mizuho will offer
high-quality and professional services by utilizing the abundant

100%

expertise of these two companies.

2016 Integrated Report55

Our Strategies for Value Creation

Research & Consulting Unit

Through the establishment of “One Think Tank,”
which is the first full-scale research and consulting
unit to be established by a Japanese bank, we aim
to create a team of experts dedicated to addressing
the various challenges our customers may face.
Head of Research & Consulting Unit

Keiichiro Ogushi

Offering optimal solutions to the issues customers are facing and issues
they may face as “One Think Tank”
The Research & Consulting Unit was launched by gathering to-

The Unit’s research functions cover a range of fields fromgether all the Group’s research and consulting functions into a

industries to the macroeconomy, and its consulting functions are

single unit of experts that is dedicated to addressing the various

spread over many fields that are of general interest to customers,

challenges our customers may face.

ranging from management and financial strategy to highly spe-

The Unit is comprised of the MHBK Industry Research

cialized areas such as the environment, social security, and IT. The

Department, the MHTB Consulting Department, the MHSC

companies and departments within the Unit act as “One Think

Research & Consulting Unit, MHIR, MHRI, and Mizuho-DL

Tank” and collaborate seamlessly, to formulate and offer compre-

Financial Technology.

hensive solutions based on sophisticated expertise and know-how.

Three Areas to Strengthen

Selection andconcentrationof functions

56

Advance the globalization of ourresearch and consulting functions
to support the growth strategies
of our wide range of customers
both inside and outside Japan

Eliminate duplicated functions andrebalance resources toward
growth areas where customer
needs are concentrated

Mizuho Financial Group

Industry

MHBK Industry Research
Department

Macroeconomy
MHRI

Offer optimal

MHTB
Consulting Department

a broad range ofsolutions toConsulting

Globalization

One Think Tank
Coordinate with all in-housecompanies as a utility (support)function

Research

Formation of
independent
unit

Research & Consulting UnitManagerial/
Financial
Strategies
Environment, social
welfare, IT consulting/development, etc.
< Public sector >Securities markets

Mizuho-DL
Financial Technology

customers in
the private andpublic sectors

MHIR
MHSC
Research & Consulting Unit

Key Aspects of the Unit

g

g

g

Rapidly-changing, difficult to forecast economic, financial, and social
environment

Issues for MizuhogIncreasingly diverse, complex andglobal issues faced by customersg

Homogenization of strategies implemented by competitors, including
collaboration of banking, trust
banking and securities functions

g

Mizuho’s Strengths

Creating further business opportunities that draw on the specialties ofgroup companies
Strategic reconfiguration of research& consulting functions and rebalancing of human resources
Expanding opportunities for offeringresearch and consulting functions

g

g

g

Who We Are

Conditions in the External Environment

Research function that has broad
coverage of trends ranging from themacroeconomy to industry
Consulting functions that cover awide range of fields from management and financial strategy to theenvironment, social security, and IT
Top-class team in Japan with about
3,500 professionals

What We Aim to Do

New Medium-term Business Plan for the Unit (FY2016 through FY2018)

Fuse research and consulting functions and contribute broadly to addressing
issues as “One Think Tank”
this information with many customers, the Unit will structure aa utility (support) function, increase its brand value, strengthen

system that better reflects customer feedbacks.

capabilities for responding globally, and contribute to businessTo strengthen its capabilities for responding globally, the Unit

expansion by the market-driven approach. Implementation ofwill expand its systems on a global basis to respond to the needs

these strategies will strengthen the Unit’s research and consultingof customers in Japan and overseas, which are becoming increas-functions.

ingly global in scope, diverse, and complex.

To establish its position as a utility (support) function, the Unit

To contribute to business expansion by the market-driven

must concentrate its expertise and offer seamless information

approach, the Unit must move closer to its customers to under-and solutions to the in-house companies to help customers ad-

stand their needs and create customer support systems that will

dress a diverse range of issues.

enable the provision of optimal solutions to a diverse range ofcustomer needs.

Foundations for Our Corporate Value

To increase its brand value, the Unit must communicate the

Our Strategies for Value Creation“One Think Tank” has four key strategies: establish its position as

accomplishments of “One Think Tank.” In addition to sharing
Offering solutions as “One Think Tank”

Financial Review

Note: The above contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See thedisclaimer at the bottom of page 3 of this Integrated Report for information regarding factors that could cause actual results to differ from those in the forward-looking statements.

2016 Integrated Report57

Our Strategies for Value Creation

Major Strategies under the New Medium-term Business Plan

4Offer the Unit’s expertise seamlessly andsupport across in-house companies

Value for customers

4Increase Mizuho’s brand value by actively
communicating accomplishments ofgby addressing their increasingly complex issues“One Think Tank”

with comprehensive solutions offered in an

4Improve business capabilities on a global basis
and support the strategies of customers
broadly in Japan and overseas

4Create new growth areas drawing on theC ontribute to its customers’ growth strategies

integrated manner among group companies
under “One Think Tank”
Key strategies

Group’s network

4Strengthen support for growth of innovativecompanies

4Establish overwhelming superiority inconsulting function for customers’ growthstrategies and business inheritance for theupper middle segment of companies

Value for societygContribute to the vitalization of regional areas
and the fostering of next-generation growthindustries by making use of the industry expertise of the MHBK Industry Research Department,
the expertise of MHIR, and the research functionof the MHRI to offer policy recommendations

Providing Solutions that Support Sustainable Growth of Customers and Society

Providing growth support through comprehensive and optimal solutions to the issues
customers are facing and issues they may face
In economic, financial, and social environments that are constantly undergoing severe changes, the issues that customers face are becoming increasingly
diverse. Through the market-driven approach, in addition to the issues customers currently face, Mizuho brings together the expertise of “One Think
Tank” to prepare comprehensive and optimal solutions for latent issues that
customers are not currently aware of. Through these activities, Mizuho supports the growth strategies of its customers.

Fostering next-generation growth fields based on
in-depth knowledge of industry trends
In an external environment where changes in the economic and the industrial
structure as well as technological progress are accelerating, Mizuho endeavors to understand the directions of change in society from an industrial
perspective through promoting solutions to customers’ medium- to longterm issues. Drawing on its in-depth expertise about industrial trends and thecapabilities for providing support for formulating corporate strategy as wellas its capabilities for making policy proposals, Mizuho takes active initiatives
in creating and fostering next-generation growth fields.

58

Mizuho Financial Group×Research & Consulting Unit

Composition of the Unit

MHTB Consulting Department

With a focus on large companies that havedistinctive features, this department offers (1)industry analyst functions, offering a wide rangeof expertise regarding industry trends in Japanand overseas, (2) strategist functions that include
providing business strategy development support
and policy advice based on a background of solidindustry expertise, and (3) corporate financesupport function for the formulation of customers’ financial and management strategies.

As the consulting department of a trust andbanking company with extensive experiences inthe trust business and real estate, this department offers a range of consulting functions
focusing on business and asset inheritanceand formulation of financial solutions tocustomers which include high-net-worth
individuals and business owners, as well as awide range of companies from SMEs to large
corporations.

This unit has a large staff of analysts that havereceived high appraisals in Japan from Nikkei
Veritas and other magazines. As the publicresearch department for equities and bonds in
MHSC, this unit offers information to institutional investors in Japan and overseas incollaboration with its overseas offices.

One Think Tank

MHIR

MHRI has in-depth research functions fordomestic and overseas macroeconomic,
financial, and policy matters. In addition, theinstitute, as a comprehensive think tank withmore than 20,000 membership companies,
provides Mizuho’s broad customer base inJapan and overseas with a diversity of information and solutions.

Having strengths in five fields, namely: theenvironment and energy, social security,
management and IT strategy, information andtelecommunications, and science, MHIR offers
research and consulting functions for strategy
formulation and implementation as well as
system solutions for customers that include
industrial corporations, financial institutions,central government organization, and research
institutes.

2016 Integrated Report

Financial Review

MHRI

Foundations for Our Corporate ValueMHSC Research & Consulting Unit

Mizuho-DL Financial Technology is a joint
venture founded by MHBK, Dai-ichi Life Insurance, and Sompo Japan Nipponkoa Insurance.
For its broad customer base, which includes
financial institutions as well as corporations,institutional investors and public-sector organizations, this company provides research anddevelopment services on financial technologies
focused around actuarial sciences as well as
consulting and investment advisory services.

Our Strategies for Value Creation

Mizuho-DL Financial Technology

What We Aim to Do

MHBK Industry Research Department

Who We Are

Concentrate research functions and consulting functions in “One Think Tank”

59

Our Strategies for Value Creation

Proactive Initiatives for New Technology

Along with the progress in information technology, the diversification of communication methods
accompanying the expansion in the use of social media, and the penetration of electronic settlements
into our daily lives, financial technology is evolving at a dramatic pace. Amid this operating environment, through collaborating with external organizations and making use of cutting-edge technology,
Mizuho is endeavoring to create new businesses and provide highly convenient services for ourcustomers more so than before, so as to create an advanced brand image as a financial institution.

Technology Policy
Improve our products and services and implement business process reforms byutilizing outside expertise and technologies

Promotion Structure
Established Incubation PT as an independent organizational unit across the Group• To strengthen new business creation and initiatives acrossthe Group, Mizuho established “Incubation PT,” an independent and specialized team, in July 2015.

Other Group Companies

Mizuho Financial Group

MHSC

60

MHTB

• In addition, the director in charge of Incubation PT as
Chief Digital Innovation Officer is in overall charge of the
management of creating new business and makes decisions flexibly and quickly.

Incubation PT
MHBK• “Incubation PT,” by drawing on expertise and technology from outside the Group, is working to create new
businesses that cause “disruptive innovation” and are notbound by prevailing notions and ideas.

Mizuho Financial GroupSpecific Initiatives to Date
Who We Are

Incubation PT is drawing on cutting-edge component technologies and actively collaboratingwith other companies through open innovation* with the aim of providing new services*Open innovation: An approach to creating innovative services and businesses by not relying exclusively on internal resources but also bringing in technology andideas from external organizations.

Principal component technologies: Artificial Intelligence (AI), Big Data, Blockchain, and Robotics, etc.

This service is provided over the Internet and gives suggestions for investment trust portfolios based on customers’ risk appetite for free of charge.
For customers who use Mizuho Direct, the SMART
FOLIO service has value-added functions that aim
to help customers reach their investment objectives
through goal approach analyses, and support themto select savings-type insurance products.

To provide support for corporate customers in raising efficiency intheir accounting operations, Mizuho has introduced its automatedservices incash receipt reconciliation and salary payment. These services combine the cloud computing services of Money Forward,
and Mizuho’s bank settlement
services.

Simple Balance Checking Services through LINE

Collaboration with Money TreeOn the LINE service for balance checking, customers
with MHBK accounts can confirm their balance andactivities on account simply by sending a stamp of theofficial character of MHBK.

Through collaboration with Money Tree, which provides personal financial management services, Mizuho provides
its “Mizuho Direct” application platform with
the Lifetime Financial Record service, whichenables viewing customers’ account activities
on smartphones over the customers’ lifetime.

Our Strategies for Value Creation

Collaboration with Money Forward
What We Aim to Do

SMART FOLIO (Robo-Advisor)

Medium- to Long-term Initiatives
Fusion of AI and Robotics

Foundations for Our Corporate Value

The humanoid robot “Pepper,” which combines AI and robotics, joined MHBK in July 2015.
Pepper provides a new kind of hospitality for customers by making small talk about financeand giving them guidance. In addition, in May 2016, Mizuho took up the next challenge ofcombining Pepper with IBM’s Watson technology to provide more sophisticated services.
Welcoming Ceremony held for Pepper to MHBKOpen Innovation Initiatives
In October 2015, Mizuho held a Fintech Forum, and more than 200 persons attended, mainly
from start-up companies. Going forward, Mizuho will continue these initiatives to actively
bring in expertise and technology from the outside, and endeavor to create new businesses
and improve services for customers.
Mizuho Fintech Forum

Financial Review

Blockchain-related Technology
Blockchain* technology holds the promise of making the system faster, safer and lower-cost. Mizuho participates in the international consortium led by U.S. start-up company R3 CEV and is conducting testing of a number of original technologies in collaboration with outsidecompanies and taking other initiatives with the aim of commercializing Blockchain technology at an early date.
*Blockchain: A distributed database that contains a growing list of data records that is secured from tampering and revision2016 Integrated Report61Our Strategies for Value Creation

Initiatives for Responsible Investment and Financing
Finance: Initiatives for Applying the Equator Principles
As a global financial institution, Mizuho is committed to meet

management through Equator Principles creates value for our

the banking needs of the communities in Japan and around theworld, where it operates. To deliver on its responsibilities as a

stakeholders by reducing the credit risk and by ensuring environmentally and socially responsible development of projects.

bank, and for the sound development of economies and societies, Mizuho draws on its sophisticated risk taking capabilities

Through the implementation of Equator Principles, Mizuho
serves to fulfill its social responsibilities as a financial institution

structured within its firm risk management framework.

by taking a responsible approach

MHBK recognizes that large scale development projects
may have adverse impacts on the environment and local

to financing that leads to both
economic development as well as

communities. To minimize and/or mitigate the environmental

environmental preservation.

and social risks associated with such large scale developments, MHBK, in collaboration with the project proponents* The Equator Principles are a set of voluntary guidelines adopted by private
financial institutions to ensure that large-scale development or construction projects appropriately consider the associated potential impacts on thenatural environment and the affected communities.
For further details, please access the following URL:
http://www.mizuho-fg.co.jp/english/csr/environment/equator/index.html(customers), conducts appropriate environmental and social
risks assessment/due-diligence as required under Equator
Principles*. Mizuho believes that environmental and social risk

Overview of Environmental and Social Risk Management/Assessment Process Required under Equator Principles (EP)Closed transactions* Screened for EP Compliance(By region)

Activities to promote awareness of environmental andsocial risk management(Number of Projects)

90

67
60

9

49
10

30

0

30

8

28

22

FY2014FY201516
FY201347
17

23

Europe/Middle East/Africa

Asia/ Oceania

Americas*The figures above have been confirmed by the third party.

62

Mizuho Financial Group

TOPICS

MHBK, together with the Bank of Tokyo-Mitsubishi UFJ and Sumitomo
Mitsui Banking Corporation, published a practitioners’ guidebook on
the Equator Principles in March 2016. MHBK believes that this publication, which is the first such publication on the Equator Principles inJapan, will help promote awareness regarding the Equator Principles
and other significant environmental and social risk management guidelines and frameworks, and will lead to enhanced information sharing
among the various industries and financial institutions in Japan.

Investment: Initiatives for Fulfilling the Stewardship Responsibilities as Institutional Investors
version of the Stewardship Code for “responsible institutional

companies’ enterprise value and its sustainable growthinvestors” to fulfill their stewardship responsibility as respon-through constructive engagement (involving purposeful dia-sible institutional investors.

Who We Are

Mizuho believes that improving and fostering the investee

Asset Management One, the asset management company

logue) will enhance the medium- to long-term investmentthat Mizuho is scheduled to form in October 2016 throughreturn for its customers.
MHTB, MHAM, Shinko Asset Management, and DIAM
accept and are implementing the principles of the Japaneseconsolidation of the group asset management companies, will
also work to fulfill its stewardship responsibilities.

for these matters is organized into two sections, one for ac-enterprise value and capital efficiency in the medium-to-longtive management and the other for index management. The

term, and has pursued the objective of promoting sustainable

Responsible Investment Committee deliberates and reviews

growth through constructive engagement based not only on

progress on stewardship activities, including the exercise offinancial information of the investee companies but also thesevoting rights, and conducts dialogues with investee compa-

companies’ non-financial information, including corporate

nies, while striving at all times to refine and improve Mizuho’s

governance and how investee companies address social andstewardship initiatives. In addition, the Secretariat prepares

environmental issues. In July 2014, a Responsible Investment

records of dialogues between analysts and investee compa-

Committee was newly formed to strengthen the framework

nies, keeps these in good order, and shares this information

for fulfilling stewardship responsibilities, and the Secretariat

with the Responsible Investment Committee.

Our Strategies for Value Creation

MHTB has worked actively to increase the investee companies’

What We Aim to Do

Examples of Specific Initiatives

Stewardship Framework Chart
Investee Companies

MHTB
Responsible Investment Committee
Decision maker: Chief Investment Officer
Roles• Guidelines for executing voting rights• Agenda items requiring careful consideration (major items)
before implementation
Secretariat

Foundations for Our Corporate Value• Deliberation and reporting on the status of stewardship

Dialogue with Investee
Company (Engagement)• Active management section• Index management section

Exercise of Voting
RightsPrincipal Items for Engagement (Fiscal 2015)
2%
5%

61%

 Business Strategies

Management strategies and business plans that contribute to increasing corporate value in the medium-to-long term

 Business Performance

Changes in corporate performance and causal factors

 Capital Structure

Financial strategies, capital policies, and other matters that contributeto increasing capital efficiency and sustainable growth

Financial Review

27%

5%

 Corporate Governance Management systems and related matters, corporate governance
Responding to risk factors that may have a major impact on management

 Risks and others

Responding to other matters that may have a major impact on management (anti-social behavior, etc.)

2016 Integrated Report63

Our Strategies for Value Creation

Management Support for SME Customers and Regional Revitalization
Management Support for SME Customers
Mizuho shares information on the needs and issues of its customers at various stages intheir development, offers them proposals for solutions, and supports their implementation.
Mizuho will strive to strengthen its follow-up measures after
consultations and applications regarding financing, the adjust-good understanding of customers’ perspectives
The specialized section to support the business revitaliza-

ment of loan conditions and other items and to proactively

tion within the credit group in Mizuho works intensively tooffer consulting services regarding management challenges

provide support for SME customers’ business improvement

aimed at providing problem resolution proposals. Thereby weand business revitalization. In addition, Head Office and front-

fulfill our responsibilities as a financial institution to provide

lines cooperatively provide consultation and support for the

support for customers’ business expansion, business improve-customers, collaborating with external organizations, externalment, business revitalization, and other efforts based on a

specialists, and other financial institutions.

Support for Business Establishment and Business Expansion

Mizuho Growth Support Fund

Support for Overseas Business Activities

MHBK and Mizuho Capital jointly set up the “Mizuho Growth

Mizuho actively provides support for its customers who are

Support Fund,” which provides risk money for diverse purposes,

entering other countries in Asia and other parts of the world.

including business start-ups, mezzanine funding, and MBO-

Specialized departments within Mizuho and its offices in Japan andrelated needs.

overseas come together to offer a range of solutions. In addition,
Mizuho uses external

Investment Track Records of Mizuho Growth Fund
Cumulative Total of Investments
122 companies¥5.9 billionorganizations to provide
information, including
the holding of seminars,
for its customers entering

Cumulative Total of Investments
64 companies¥3.4 billion
Cumulative Total of Investments
31 companies¥1.2 billion

FY2013

FY2014overseas markets.

Support for Business Revitalization and Shifting to Other Industries
Mizuho collaborates with external organizations and other finanFY2015

cial institutions to provide assistance to its customer for revitalizing
their businesses and shifting to other lines of business.
Case 1Business Matching
To support its customers’ corporate growth strategy, Mizuho
actively engages in business matching to provide opportunities
for its customers to meet with one another and discover opportunities for business expansion. In addition to individual matching on the request from our customers or our proposal, Mizuho
also sponsors business discussion forums from time to time inplaces throughout Japan.
Forums Held in Fiscal 2015
Number of forums held:64

8 times

Themes: Manufacturing, inbound tourism,
innovation, revitalization of regional areas, etc.

Number of companies participated:
Cumulative total of 740

Number of business discussions:
Approximately 1,700

Mizuho Financial GroupFor a business customer intending to close its current business (wholesaler of marine products), Mizuho utilized the Regional Economy
Vitalization Corporation ofJapan (REVIC), which offer
special assistance for tacklingbusiness challenges once more
to work out the customer’s
obligations and the guaranteesof their management.

Case 2For a customer (in the lodging business) burdened with excessive
debt, MIZUHO collaborated with the revitalization support associations, credit guarantee associations and others to provide thoroughgoing revitalization support through the use of the secondary
corporations method.

Regional Revitalization Initiatives
Utilizing its network of branches in each of Japan’s prefec-

nesses and other activities sole in Tokyo, regional populations aretures, Mizuho is striving to promote the revitalization of regional

expected to decline and their economies to shrink in the future.

economies and industries by providing its customers with smooth

Revitalization of regional towns is an urgent task, through a virtu-

supplies of funding, engaging in management consultations, andous circle in which people and jobs return to regional areas.

supplying various other kinds of management support.

Who We Are

As a result of the trend in Japan toward concentration of busi-

Case Examples
What We Aim to Do

Aiming for Recovery following the earthquake disaster in Fukushima Prefecture
In March 2016, MHFG and Fukushima Prefecture signed a collaborative agreement. This agreement
looks to the holding of the Tokyo 2020 Olympic and Paralympic Games when Mizuho, as a Gold
Banking Partner* will work with Fukushima Prefecture, to generate a positive mood in the prefecturewith the objective of hastening recovery from the Great East Japan Earthquake.
With the goal of recovery from the megaquake, Mizuho and Fukushima have collaborated in many
ways, and will work to step up these activities, including sponsoring sporting events jointly in Fukushima.
* Mizuho is a Tokyo 2020 Gold Bank Partner

In April 2015, MHBK concluded a comprehensive agreement on industrial promotion and other activities
with Ehime Prefecture. Under this agreement Mizuho and Ehime Prefecture are creating frameworks forrevitalizing local industries, including Ehime’s traditional arts, crafts and regional brands.
In addition to a wide range of activities aimed at regional revitalization, Mizuho moves forward on
specific initiatives to contribute to what the government has specified as “creating towns, people andjobs” through making various proposals and suggestions based on Mizuho’s industry expertise. Those
include the transformation of agriculture, forestry and fisheries into sixth industries, building industrial
clusters, and so on.

Our Strategies for Value Creation

Signing of the collaborative agreement

Revitalizing local industry in Ehime Prefecture

Signing of the comprehensive agreements

Foundations for Our Corporate Value

Finance Facilitation and Management Guarantee Guideline Initiatives
Finance Facilitation Initiatives
Earnestly determined to fulfill a financial institution’s social role

by appropriately responding to such customer requests asof facilitating finance, Mizuho works to promote facilitating

those for new loans and loan condition adjustments, and by

finance in accordance with the Group’s fundamental policies

striving to utilize its consulting functions.

Initiatives Related to “Guidelines for Management Guarantee”
Accomplishments in Fiscal 2015 Related to Management Guarantees

is working to establish and maintain good relationships of trust(MHBK+MHTB)

with its customers.

Items

Financial Review

Mizuho, in line with “Guidelines for Management Guarantees,”

NumberNumber of new loans without guarantees

29,634

Number of loans using alternatives* to management guarantees

28

Number of loans for which existing guarantees were removed

1,640*Asset Backed Loans, Guarantee with suspensive condition, Guarantee withcondition subsequent

2016 Integrated Report65Foundations for Our Corporate Value
Corporate Governance
MHFG, as the Group’s holding company, is taking continuing

growth, and contributing to economic and industrial devel-

initiatives to realize “what we aim to be” with regard to ouropment and prosperity of society inside and outside of Japan,

Board of Directors and corporate governance. To fulfill our

we have established our corporate governance system con-social role and mission by giving due regard to creating value

sisting with the Board of Directors at its core, and endeavor

for shareholders and other stakeholders, realizing improved

to further enhance our corporate governance.

corporate value through continuous and stable corporate

Basic Policy and Principal Features regarding MHFG’s Corporate Governance System
Basic Policy regarding MHFG’s Corporate Governance System
The basic policy regarding MHFG’s corporate governance system is as follows.

Principal Features of MHFG’s Corporate Governance System
The principal features of MHFG’s corporate governance system are stated below. These include the fact that non-executive directors account for a majority of the Board of Directors.

66

Mizuho Financial GroupCorporate Governance System
We have adopted a “Company with Three Committees” with the belief that, under the current legal system, a “Company with
Who We Are

Three Committees” is the most effective as a system to realize the basic policy regarding MHFG’s corporate governance system.

What We Aim to Do
Our Strategies for Value Creation

Outside Directors
to get an overview and understanding of the overall man-extensive experience in areas such as corporate management,

agement of Mizuho, the ability to grasp essential issues andrisk management, compliance with laws and regulations,risks, and the ability to appropriately interview management

crisis management, financial accounting, internal control,and express opinions to and persuade management, etc. In

macroeconomic policy, organizational and cultural reform, or

addition, all the outside directors satisfy the Independence

global management. Each outside director also has the ability

Standards of Outside Directors of MHFG.

Foundations for Our Corporate Value

Each outside director has deep insight and knowledge and

For MHFG’s “Overview of Independence Standards of Outside Directors,” please refer to our website
http://www.mizuho-fg.co.jp/english/company/structure/governance/g_report.html#director
Name

MitsuoOhashi
TetsuoSeki

TatsuoKainaka
Hirotake
Abe
HirokoOta

2016 Integrated Report

Financial Review

Takashi
Kawamura

Reason for Selecting Him/Her

Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of
Directors, leveraging his extensive experience and deep insight as a top executive.
Expected to contribute to (i) strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of
Directors, (ii) MHFG’s effort to further enhance internal control systems and group governance, etc., leveraging his extensive experienceand deep insight as a top executive, etc.
Expected to contribute to (i) strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of
Directors, (ii) MHFG’s effort to enhance group governance, etc., leveraging his extensive experience and deep insight.
Expected to contribute to (i) strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of
Directors and (ii) the further enhancement of the corporate governance, compliance and risk management system of MHFG, leveraging
his extensive experience, deep insight and high level of expertise as a prosecutor, judge and attorney-at-law.
Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of
Directors, leveraging his extensive experience, deep insight and high level of expertise as a certified public accountant.
Expected to contribute to strengthening the effectiveness of both the decision-making and supervisory functions of MHFG’s Board of Directors, leveraging her extensive experience and deep insight as a university professor and a former Minister of State for Economic and Fiscal
Policy, which includes, among other things, the ability to see things from macroeconomic perspective (e.g., from a public policy and economic policy perspective) as well as a high level of awareness of the problems that must be resolved for the revival of the Japanese economy.

67

Foundations for Our Corporate Value

Board of Directors

The main roles of the Board of Directors of MHFG are making decisions on businessexecution such as basic management policies, which are legally-specified matters to be
determined solely by the Board of Directors, and supervising the execution of duties bydirectors and executive officers.

How the Board of Directors Meetings Are Operated
The Board of Directors has delegated decision-making, inoutside directors.

principle, to the President & Group CEO for items other than

The Board of Directors held 13 meetings during fiscal

those legally specified as matters to be determined solely

2015 and had high-quality discussions regarding medium-by the Board of Directors. The Chairman of the Board ofterm issues in preparation for the new medium-term busi-

Directors plays a central role in narrowing down the agendas

ness plan. In addition, to realize such objectives as providing

to enable concentration on truly necessary proposals and,directors with a good understanding of the overall manage-

regarding proposals associated with core management is-ment from a panoramic perspective, the Board of Directors

sues, the Board of Directors promotes comprehensive discus-

received reports on such topics as the execution of priority

sions of essential points in a free and vigorous manner withstrategies, business performance and other important issues.

the inclusion of high-quality opinions and suggestions from

Evaluating the Effectiveness of the Board of Directors
As a front runner in the area of corporate governance,

For the evaluation of the effectiveness of the Board of

Mizuho is aiming to increase its corporate value throughDirectors for fiscal 2015, self-evaluation was made regard-

pursuing “growth-oriented” governance reforms designed to

ing the gap between present conditions and “what we aim

foster “earning potential.”

to be” in terms of the Board of Directors and corporate

In order to confirm the progress and results of the reforms

68

governance and issues to be addressed and measures toand to identify issues to be addressed going forward, we

be taken going forward were discussed, after considering

conduct the evaluation of the effectiveness of the Board of

inputs from the standpoints of an independent third party

Directors as a whole.

institution.

Mizuho Financial GroupCorporate Governance

Summary of Evaluation
It was confirmed that “what we aim to be” with regard to MHFG’s Board of Directors and corporate governance was largely
realized and that the Board of Directors is exerting their supervisory function to foster “earning potential.” Based on the
Who We Are

following points, it was also evaluated that the effectiveness of the Board of Directors was reasonably secured:(1) The Board of Directors as a whole kept promoting corporate governance reform, under the leadership of the Group CEO(2) The Board of Directors exercised the supervisory function that contributes to fostering “earning potential” by continuously encouraging executive officers to try new ways to increase corporate value(3) Especially, for fiscal 2015, high-quality discussions were made at the Board of Directors meetings in preparation forformulating the new medium-term business plan

What We Aim to Do

Efforts Going Forward
For the evaluation of fiscal 2015, it was also confirmed and shared that in order to take the effectiveness of the Board of
Directors to the next level, additional efforts are necessary and we continually make further efforts on the following three points:(1) To further make deliberations at the Board of Directors meetings more fulfilling and efficient
Efforts are to be made to further make deliberations more fulfilling and efficient, in ways such as clarifying key issues to bedeliberated on a proposal and narrowing down agenda items.

Our Strategies for Value Creation(2) To further utilize outside directors’ insights and reflect them on business execution
In order to reflect outside directors’ insights on business execution in a more effective manner and to strengthen “earningpotential,” efforts are to be made to deepen mutual understanding between the outside directors and the executive officers, suchas exchanging outside directors’ objective views and the executive officers’ information on actual business as well as circumstances
particular to financial institutions, etc.
(3) To agree on how the Board of Directors should be engaged in dialogue with stakeholders
How the Board of Directors should be engaged in dialogues with stakeholders are to be discussed and shared as medium- to longterm issues.

 Method of Evaluating the Effectiveness of the Board of Directors in Fiscal 2015
views given to all directors, as well as hearings of certain
executive officers, the Corporate Secretariat supporting theBoard of Directors and the Audit Committee office; and(3) The Board of Directors in the April 2016 meeting took into account the evaluations mentioned above, and discussed issues
to be addressed and measures to be taken going forward

Foundations for Our Corporate Value

The Board of Directors conducted self-evaluation through thefollowing procedure:(1) The Outside Director Session (where only outside directors
attended) conducted an interim evaluation;(2) A third party evaluation with inputs from a third party
institution was made, based on questionnaires and inter-

Nominating Committee
and MHSC) and exercise the approval rights held by MHFG

mine the contents of proposals regarding the appointment

with respect to the appointment and removal of representa-

and dismissal of directors of MHFG to be submitted to thetive directors and senior directors of the core subsidiaries.

general meeting of shareholders, exercise the approval rights
held by MHFG with respect to the appointment and dismissal

Financial Review

The role of the Nominating Committee of MHFG is to deter-

Currently, the Nominating Committee is comprised of four
outside directors.

of directors of each of the core subsidiaries (MHBK, MHTB,

2016 Integrated Report69Foundations for Our Corporate ValueHow the Nominating Committee Meetings Are Operated
Regarding appointment of directors and other issues of MHFG

specialized expertise gained through work experience andand the core subsidiaries, the President & Group CEO drafted

other factors. They also undertook such measures as those toproposals in accordance with the Nominating Committee

ensure opportunities to obtain information from individual per-Chairman’s instructions and the Nominating Committee

sonal interviews and reports presented by officers to the Board

engaged in repeated deliberations regarding those proposals.

of Directors. Through these activities, the Committee worked

During this process, the Human Resources Review Meeting,to create a highly transparent process of appointing directors,

which consists of the President & Group CEO and outsideprincipally by outside directors to ensure its effectiveness.

directors who serve as members of the Nominating Committee

The Committee held six meetings in fiscal 2015 andand Compensation Committee, undertook deliberations based

decided on the candidates for directors and approved theon consideration of objective indicators of external evaluations,selection of directors of core subsidiaries.

Compensation Committee
The role of the Compensation Committee is to determine

compensation system for directors and executive officers of

the compensation for each individual director and execu-

MHFG and the core subsidiaries.

tive officer of MHFG, exercise the approval rights held by
MHFG regarding compensation of each individual director of

Currently, the Compensation Committee is comprised ofthree outside directors.

the core subsidiaries, and determine the basic policies and

How the Compensation Committee Meetings Are Operated
Considering such factors as MHFG’s medium- to long-termcompensation more appropriately reflect the performance ofbusiness performance and economic and social circum-

each of directors and executive officers, etc. by setting morestances, the President & Group CEO drafted proposals withappropriate ratios of variable compensation by lowering therespect to the compensation policy based on the role andfixed compensation portion, introducing performance pay-

responsibility assigned to and the performance of each of thements and performance stock compensation.

Directors, in accordance with the Compensation Committee

The Committee held eight meetings in fiscal 2015 andChairman’s instructions, and the Compensation Committee

made decisions regarding the revision of the compensation

engaged in repeated deliberations regarding those proposals.

system for directors and executive officers of MHFG and

To properly incentivize members of management to work

the core subsidiaries. The Committee also decided on the

toward sustainable growth and restrain excessive risk tak-compensation of individual directors and executive officers

ing, MHFG has established a highly transparent and objec-

of MHFG and the compensation of individual directors of thetive process for reviewing the compensation system that iscore subsidiaries.

conducted mainly by outside directors. This system makes

Audit Committee
The Audit Committee of MHFG audits the execution of duties

porate management of subsidiaries and others by executiveby the directors and executive officers, monitors and inspects

officers, and prepares audit reports.

the establishment and management of the internal control

Currently, the Audit Committee is comprised of two

system of MHFG and its subsidiaries, monitors and inspects

internal non-executive directors and three outside directors.

the condition of the execution of duties with respect to cor-

70

Mizuho Financial GroupCorporate GovernanceHow the Audit Committee Meetings Are Operated
meetings held by the business execution departments, ex-tive officers’ performance of duties, the Audit Committee ob-amine important decision-related documents, obtain reports

tained timely and appropriate reports and explanations fromfrom directors, etc., and coordinate operations with thedirectors, executive officers, employees, and the accounting

Internal Audit Group and other group units.

auditor (hereinafter, “directors, etc.”) and gave instructions
and recommendations when necessary.

Who We Are

Regarding items necessary for audits of directors’ and execu-

In fiscal 2015, the Audit Committee held 18 meetings andpassed resolutions concerning such matters as the formula-

In addition, the Audit Committee has ensured the effec-

tion of audit plans and agreement on the basic audit plans oftiveness of its audits by confirming the processes and con-the Internal Audit Group. It also confirmed such matters as thetents of decision making by the business execution depart-

situation regarding the execution of duties by directors and byments through such measures by full-time Audit Committee

executive officers, etc.
What We Aim to Do

members as those to arrange for the attendance at important

Human Resources Review Meeting
officers as defined in the Companies Act, and executive offi-

consists of the President & Group CEO and outside directors

cers as defined in our internal regulations with title of MHFG,

who serve as members of the Nominating Committee andand executive officers as defined in our internal regulations

Compensation Committee as a deliberative body that mainlywith title of core subsidiaries, as well as assessment of execu-

conducts the deliberation of proposals to appoint executive

tive officers.

Our Strategies for Value Creation

We established the Human Resources Review Meeting that

Risk Committee
We established the Risk Committee that in principle fully

with respect to the supervision of the determination and theconsists of non-executive directors or external experts as

implementation relating to risk governance.

an advisory body that mainly advises the Board of Directors

Foundations for Our Corporate Value

Outside Director Session
We established the Outside Director Session that consists

rectors’ understanding of Mizuho and share the top manage-of all outside directors and the President & Group CEO as ament’s awareness of issues through communication among

forum for free discussions with an aim to deepen outside di-directors.

Financial Review

2016 Integrated Report71Foundations for Our Corporate Value

Senior Executives
Members of the Board of Directors/
Executive Officers as Defined in the
Companies Act

Junichi Kato

Akihiro Nakanishi

Senior Managing Executive Officer

Managing Executive Officer

Head of Global Markets Company

In charge of Specific Business of Retail & BusinessBanking Company

Yasuhiro Sato

Senior Managing Executive Officer

Kazuya Kobayashi

President & CEO(Representative Executive Officer)
Member of the Board of Directors

Head of Asset Management Company

Managing Executive Officer

Masayuki Yonetani

In charge of Specific Business of Global Corporate
Company

Group CEO

Head of Internal Audit Group (Group CA)

Kouji Arita

Keiichiro Ogushi

Managing Executive Officer

Shusaku Tsuhara
Senior Managing Executive Officer
Member of the Board of Directors
Head of Compliance Group (Group CCO)

Ryusuke Aya
Managing Executive Officer
Member of the Board of Directors
Head of Risk Management Group (Group CRO)

Koji Fujiwara
Managing Executive Officer
Member of the Board of Directors
Head of Strategic Planning Group (Group CSO)

Koichi Iida
Managing Executive Officer
Member of the Board of Directors

Senior Managing Executive Officer

Senior Managing Executive Officer

Akira Nakamura

Daisuke Yamada

Managing Executive Officer

Managing Executive Officer
Head of Global Products Unit / In charge ofIncubation Project Team

Satoshi Ishii
Managing Executive Officer
Head of Human Resources Group (Group CHRO)In charge of Specific Business of Corporate &Institutional Company

Teiji Teramoto
Managing Executive Officer
Head of Europe, Middle East and Africa

Masahiro Otsuka
Managing Executive Officer

Executive Officers as Defined in Our
Internal Regulations and Specialist
Officers
Satoshi Miyazaki

Hideyuki Takahashi

Deputy President (Western Japan (Kinki, Chugoku,
and Shikoku regions))

Nobukatsu Funaki

Joint Head of Operations Group

Head of Research & Consulting Unit

Head of Financial Control & Accounting Group(Group CFO)

Member of the Board of Directors

Deputy President & Executive Officer

Yasuo Agemura

Deputy Head of Retail & Business Banking
Company

Takashi Saito
Managing Executive Officer
Deputy Head of Global Markets Company

Seiji ImaiManaging Executive Officer
Head of Asia & Oceania excl. East Asia

Senior Managing Executive Officer

Takahiko YasuharaManaging Executive Officer

Mitsuo Ohashi

In charge of Specific Business of Global Markets
Company

Head of East Asia

Member of the Board of Directors

Hiroshi Suehiro

Motonori Wakabayashi

Tetsuo Seki

Senior Managing Executive Officer

Managing Executive Officer

Head of the Americas / In charge of Compliancewith US FBO Regulation

Deputy Head of Research & Consulting Unit

Shuji Kojima

Member of the Board of Directors

Takeshi Watanabe

Managing Executive Officer

Tatsuo Kainaka

Senior Managing Executive Officer

Deputy Head of Internal Audit GroupIn charge of Specific Duties

Kazuhisa Sawa

Tetsuhiko Saito

Managing Executive Officer

Member of the Board of Directors

Member of the Board of Directors

Takashi Kawamura

Member of the Board of Directors

Hirotake Abe
Member of the Board of Directors

Hiroko Ota

Senior Managing Executive Officer
In charge of Specific Business of Retail & BusinessBanking Company

Member of the Board of Directors

Tetsuo Iimori

Toshitsugu Okabe

Managing Executive Officer

Deputy President & Executive Officer(Representative Executive Officer)

In charge of Specific Business of Retail & BusinessBanking Company

Head of Retail & Business Banking Company

Haruki Nakamura

Daisaku Abe

Managing Executive Officer

Deputy President & Executive Officer

Joint Head of IT & Systems Group

Head of IT & Systems Group / Head of Operations
Group (Group CIO / Group COO)

Yuusei Matsubara

Kosuke Nakamura

In charge of Specific Business of Corporate &Institutional Company

Deputy President & Executive Officer

Managing Executive Officer

Head of Corporate & Institutional Company

Amane Oshima

Akira SuganoManaging Executive Officer

Senior Managing Executive Officer
Head of Global Corporate Company

72

Katsunobu Motohashi

Mizuho Financial Group

Deputy Head of Global Markets Company

Deputy Head of Strategic Planning Group / Deputy
Head of Financial Control & Accounting Group /Deputy Head of IT & Systems Group / Deputy Headof Operations Group

Nobumitsu Watanabe
Managing Executive Officer
Deputy Head of Global Corporate Company /Deputy Head of Global Markets Company /Deputy Head of Global Products Unit

Takashi Kamada
Managing Executive Officer
Deputy Head of Retail & Business Banking
Company

Yoshihito BandoManaging Executive Officer
Deputy Head of Asset Management Company

Masashi Hara
Managing Executive Officer
Deputy Head of Global Products Unit

Corporate Governance

Masamichi Ishikawa

Managing Executive Officer

Executive Officer

Deputy Head of Corporate & Institutional Company/ Deputy Head of Research & Consulting Unit

General Manager for Asset Management Company

Toshio Sobue

Executive Officer

Makoto Umemiya

Managing Executive Officer

General Manager of Financial Planning Department

Deputy Head of Risk Management Group /Deputy Head of Compliance Group

Naoto Takahashi

Keisuke Saito

General Manager of Next-Generation IT Systems
Coordination Project TeamManaging Executive Officer
Deputy Head of Global Products Unit

Hiroaki Ehara

Executive Officer

Kazushi Takeda
Executive Officer
Co-General Manager of East Asia Department

Deputy Head of Human Resources Group /Deputy Head of Internal Audit Group

Asashi Katou

Hiroto Koda

General Manager of IT & Systems Promotion
Department

Deputy Head of Human Resources Group

Masahiro Miyamoto

Executive Officer

Eishi Shimizu
Executive Officer

Managing Executive Officer

General Manager of Channel Strategy Department

Deputy Head of Corporate & Institutional Company

Masahiko Abe

Naofumi Fuke
Deputy Head of Retail & Business Banking
Company

Hidefumi Kobayashi

Executive Officer
General Manager of Corporate & Institutional
Coordination Department

Hisashi Kikuchi
Executive Officer

Managing Executive Officer

General Manager of Corporate Secretariat

Deputy Head of Research & Consulting Unit /Deputy Head of Financial Control & Accounting
Group / Deputy Head of Risk Management Group

Yuzo Kanamori

Masaya Usuha
Managing Executive Officer

Executive Officer
Deputy Head of Global Corporate Company /Deputy Head of Global Products Unit

Deputy Head of Internal Audit Group

Masahiko Katou

Tatsuya Yamada

General Manager for IT & Systems Group

Deputy Head of IT & Systems Group /Deputy Head of Operations Group

Kenji Tsujitsugu
Managing Executive Officer
Deputy Head of Corporate & Institutional Company

Masaya Oishi
Managing Executive Officer
Deputy Head of Asset Management Company

Taiji KumagaiManaging Executive Officer
Deputy Head of Compliance Group

Atsushi Takahashi

Specialist Officer
Foundations for Our Corporate ValueManaging Executive Officer

Our Strategies for Value Creation

Managing Executive Officer

What We Aim to Do

Managing Executive Officer

Managing Executive Officer

Who We Are

Isao Nakamura

Yasumasa Mukai
Specialist Officer
General Manager for IT & Systems Group
Notes:
1. Mr. Mitsuo Ohashi, Mr. Tetsuo Seki, Mr. Takashi
Kawamura, Mr. Tatsuo Kainaka, Mr. Hirotake Abe
and Ms. Hiroko Ota are “outside directors” as provided for in Article 2, Item 15 of the Companies Act.
2. Mr. Tetsuo Seki, Mr. Takashi Kawamura, Mr. Tatsuo
Kainaka, Mr. Hirotake Abe and Ms. Hiroko Ota, whoare “outside directors” are “independent directors”
required by the Tokyo Stock Exchange, Inc.
(As of June 24, 2016)

Managing Executive Officer
Financial Review

Deputy Head of Global Corporate Company /Deputy Head of Global Products Unit /Deputy Head of Strategic Planning GroupKouji Yonei
Executive Officer
General Manager of IT & Systems Planning
Department

Shinji Taniguchi
Executive Officer
General Manager of Global Products Coordination
Department
2016 Integrated Report73Foundations for Our Corporate Value

Message from the Chairman of the Board of Directors

As a front-runner in the area of corporate
governance, Mizuho is aiming to increase
its corporate value through pursuing“growth-oriented” governance reforms
designed to foster “earning potential.”

Hiroko Ota
2004
2005
2006
2008
2014

Director General, Cabinet Office
Professor, National Graduate Institute for Policy Studies
Minister of State for Economic and Fiscal Policy
Professor, National Graduate Institute for Policy Studies (current)
Director of MHFG (Chairman of the Board of Directors) (current)

How the Board of Directors Meetings Are Operated
Mizuho began the full-scale corporate governance reforms

depth what will be necessary for Mizuho to overcome its

in fiscal 2014 and transformed the holding company into aweaknesses and acquire new strengths as well as what risks

Company with Three Committees. This form of governance

Mizuho will face over the coming three years.

enables both the supervisory functions of the Board (defensive governance) and its advisory functions (growth-oriented

discussions at each of these sessions were quite lively.

governance) to be strengthened, while the Board delegates

Frequently, discussions lasted for close to four hours. As ato the management substantially more decision-making

result of the participation of outside directors with experi-

power on business execution. As a result, the speed ofences in various fields, their ideas provided new perspectives

decision-making increases, and the Board is able to engage

on management issues. In addition, the presence of outside

in discussions regarding substantive corporate management

directors helps the management to have stronger commit-

issues.

ment to leading Mizuho for creating value for various stake-

The most significant theme for the Board in fiscal 201574

The Board held 13 meetings during the fiscal year, andholders. I believe the functions of the Board, both growth-

was the formulation of the medium-term business plan,oriented and defensive, have become more effective over thewhich would begin in fiscal 2016. The Board discussed inpast year.

Mizuho Financial GroupAs the Chairman of the Board of Directors
is delivered from the management and shared with outside

is to make discussions more lively and productive at thedirectors, the directors cannot perform their role properly.

meetings. It is necessary to narrow down the matters to be

Regarding this aspect, the Deputy Chairman of the

discussed to ensure that enough time can be devoted to theBoard, who holds the position of the Chairman of theitems on the agenda, and clarify the issues to be discussed on

Audit Committee concurrently, plays an important role.

the matters to ensure substantive discussions. To do this, it is

Mr. Takahashi, who holds this position, is a non-executive

also necessary to make sure that concise and well-prepareddirector. He formerly held the position of CFO and has

materials are submitted, and I work with the Corporate

in-depth familiarity with management matters. Similarly, theSecretariat to prepare these documents in advance.

Corporate Secretariat also plays important roles as a dediWhat We Aim to Do

I feel it is important for effective governance that an

Who We Are

The biggest role of the Chairman of the Board of Directors

cated organization. The Corporate Secretariat is responsible

outside director serves as Chairman of the Board. I set thefor preparations for each Board meeting and for sharing

agenda from an outsider’s perspective, and this makes it pos-

information with the outside directors. Looking ahead,sible to conduct persuasive discussions. On the other hand,

the Chairman, the Deputy Chairman, and the Corporate

it is important that company information is properly commu-

Secretariat will keep working as a team to realize what the

nicated to the outside directors. Unless correct information

Board aims to be.

Our Strategies for Value Creation

Issues to Be Addressed Going Forward
on the evaluations they have accumulated since joining thethe Board has worked together to implement governanceorganization, and there are concerns that personnel may bereforms. However, these reforms are not finished yet, and wemarked down disproportionately for the mistakes they haveare still on the way to further improving ourselves throughmade. I believe this leads personnel to avoid taking up thetrial and error. In the evaluation of the effectiveness of thechallenges of addressing difficult issues and making reforms.

Board in fiscal 2015, an interim evaluation was made at

To overcome this tendency, at present, Mizuho is proceeding

the Outside Director Session; a third-party evaluation with

with a major reform of human resource management. It will

inputs from an outside institution was made; and the Board

take time for this reform to be felt and understood by each

took into account the foregoing and discussed issues to be

and every employee, but this is the most important. I will be

addressed.

paying close attention to how well the new human resource

Moreover, not only the members of the Board but alsoeach and every Mizuho employee must understand the per-Foundations for Our Corporate Value

As is appropriate for a front-runner in corporate governance,

management approaches take root in Mizuho.
In fiscal 2016, the most important issue will be strengthening profitability. Because the strategic direction was set

they must also make judgments and take proper action. Thisup, it is essential for the management to set high targets andis what real governance reform means. I feel there is a ten-insist that the targets be met. The progress toward the objec-

dency among people at Mizuho that they stay in organiza-

tives of the newly introduced medium-term business plantional silos and that they do not care about outside matters,

and the results of introducing the in-house company system,

maybe because they came to lose confidence after experienc-

which is a key aspect of the new plan, must be reviewed ining failures several times in the past. Under Mizuho’s tradi-

depth and subjected to full discussion, in order to realize antional human resource management, personnel are selectedeven stronger Mizuho.

Financial Review

spectives of shareholders, customers, and other stakeholders;according to the year-group of entering the company based

2016 Integrated Report75Foundations for Our Corporate Value

Risk Appetite Framework (RAF)
Role of Risk Appetite Framework
The purpose of our risk appetite framework (RAF) is to (1)be the basis for establishing our business strategy, resource

maximize our corporate value by securing sustainable andallocation and budget thus integrating risk management andstable profits and (2) fulfill our social responsibilities. Based on

business strategy in order to maximize our risk-return.

such purpose, our core risk appetite is to take appropriate risk

The RAF is the cornerstone of Mizuho’s risk governance,and providing solutions based on our customers’ actual needs,

and the Board of Directors is responsible for determining ourestablishing our competitive advantage against our peers.

risk appetites and other fundamental matters including the

In order to achieve this core risk appetite, we will further
concretely define our risk appetite in establishing our medi-

governance structure of RAF and the documentation of the
Risk Appetite Statement (RAS).

um-term and fiscal year business plan. The risk appetite will

Operation of Risk Appetite Framework
Formulation of Risk Appetite
Mizuho’s risk appetite consists of a risk appetite policy thatawareness of these external environments, create specificserves as the fundamental policy regarding our risk-taking

strategies and measures according to this policy and deter-

activities and risk appetite metrics that serve as means ofmine corporate resource allocation and profit plans. Our risk

quantifying the level of risk-taking based on the risk appe-

appetite metrics is expressed in terms of capital strength,tite policy.

profitability and liquidity utilizing measures such as CET1

Formulation of our risk appetite begins with discussions
among management regarding our footing in external

Further, quantitative level of risk appetite metrics areenvironments such as the macroeconomic environment, thecascaded down into our in-house companies, which are

regulatory environment and the competitive environment,

established according to the customer segments and are theand our future prospects. Main scenarios are then devised

driving forces of our strategies, to ensure the effectiveness of

to be shared through the organization. Management also

our RAF.

discusses risks that may adversely affect the Group, such as a

The companies formulate their own business plans andrecession or disturbances in the financial market, and devises

carry out their business activities based on the Group’s

risk scenarios.

general risk appetite policy and the company’s specific risk

We then formulate a risk appetite policy based on our

76

Capital Ratio, ROE and LCR.

Mizuho Financial Groupappetite level.

Monitoring of Risk Appetite
and risk appetite level. This monitoring enables timely andGroup monitors progress on a quarterly basis, with additional

appropriate actions, including revisions of our risk appetite

monitoring carried out as necessary. Specifically, we monitor

and strategies, to be discussed and carried out in the event ofchanges in external environments compared to the scenarios

environmental changes that increase risk or impede our risk

we set initially, and progress in implementing our strategies

appetite and strategies.

Who We Are

To ensure that the formulated risk appetite is achieved, theand level of our capital compared to the risk appetite policy

Verification of Risk Appetite by Stress Testing
We assess the suitability of our risk appetite and the validityof our business plans through stress testing that assesses theappetite and business plans.
Our stress testing also serves as a foundation for understanding the characteristics of our business portfolio andprofitability. The results are analyzed and verified to confirm

enables planning in advance about the course of action thatthat the required capital ratio and business results can beshould be taken if the risk scenario occurs, which will en-achieved even if the risk scenarios occur. If those cannot be

hance our risk management.

What We Aim to Do

financial effect of the set risk scenarios on our capital andachieved, we discuss and then carry out a revision of our risk

Our Strategies for Value Creation
Foundations for Our Corporate Value

Mizuho’s Risk Culture
By embedding sound risk culture, every director and em-

out so that these guidelines become ingrained in the minds

ployee maintains a high level of sensitivity and knowledgeof every director and employee.

regarding risk and endeavors to make correct decisions andThese guidelines provide foundation for appropriate values
and courses of action that should be employed by Mizuho’s

appetite and strategies and maintain and improve our corpo-

directors and employees when approaching risks. Each direc-

rate value.

tor and employee can refer back to these guidelines if theyMizuho has established Behavioral Guidelines for a Sound

Financial Review

take appropriate actions. This enables us to achieve our risk

are unsure of a judgment that needs to be made in their daily

Risk Culture to heighten directors’ and employees’ risk

work. This improves their responses and countermeasures

sensitivity and improve their responses and countermeasures

to risk and fosters a sound risk culture. These initiatives also

in the event of risks. Measures such as training are carried

prevent inappropriate behavior by directors and employees.
2016 Integrated Report77Foundations for Our Corporate Value

Mizuho’s Definition of the Three Lines of Defense
Basic Approach
Following the concept of the “three lines of defense,” astion divisions to ensure autonomous control with respect toshown in the Basel Committee on Banking Supervision’s

the business promotion division and divisions in charge of“Corporate governance principles for banks” as revised andcompliance and risk monitoring by the internal audit group is

published in July 2015, we have established the Internal

conducted appropriately and effectively.

Audit Committee that is separate from the business promoMHFG’s Framework of Operations and Audit and Internal Control Framework

Mizuho’s Definition of the Three Lines of Defense
Autonomous Control Function
First
line

Second
line
Third
line

78

Based on the rules, procedures and risk appetite, conduct daily operations and has a primary responsibility for risks
and compliance matters identified in their section, banking offices, or head office as a risk owner, and for performing
autonomous control activities (to identify, assess, and manage/control risks)
Risk Management and Compliance Function
Oversee (monitor), measure and assess the first line’s autonomous control activities for risks and compliance, and be
responsible for establishing and promoting basic policies for risk compliance control
Internal Audit Function
Independent of the first and second lines, conduct assessment and examination of the operations of the first and second lines and be responsible for providing advice and rectification recommendations to settle issues

Mizuho Financial GroupInternal Audit Structure
Basic Approachprocess, internal audits assist the Boards of Directors of eachpendent from other business operations, for evaluating theof our group companies to fulfill their managerial duties

extent to which internal control achieves its objectives in key

efficiently and effectively.
In line with the Basic Policy for Internal Audit establishedeffective business operations, reliable financial reporting andby MHFG, our core group companies conduct internal audits,

compliance with laws, regulations and internal rules. We

which include the auditing of their respective subsidiaries. In

conduct internal audits from an objective and comprehensive

addition, with respect to the management of risks applicablestandpoint, independent of operational reporting lines, andacross the Group, we coordinate internal audits throughout

offer advice and remedial recommendations in connection

the Group to assess the risk management status of thewith any problems that may be identified. Through thisGroup as a whole.

What We Aim to Do

areas, including appropriate risk management, efficient and

Who We Are

Internal audits are designed as an integrated process, inde-

Internal Audit Management Structure
Other Core Group Companies

Our Internal Audit Committee determines all important mat-

Other core group companies have also established effective

ters concerning internal audits. The committee is chaired byand efficient internal audit structures adapted to the charac-

the President & Group CEO and is independent of our otherteristics of their respective businesses.

Our Strategies for Value Creation

MHFG

business operations. Our Internal Audit Committee monitorsand manages internal audits at our core group companies

Internal Audit Management Structure

through internal audit reports submitted by such subsidiaries.
Our Internal Audit Committee discusses and makes decisions
regarding internal audits at our core group companies andsubmits the results, together with the results of their examination of the internal audit reports, to our Board of Directors.

Foundations for Our Corporate ValueMHBK and MHTBMHBK and MHTB have also established Internal Audit
Committees that are independent of their other business
operations. The two banks have established internal audit departments and credit review departments (Credit Assessment
and Auditing Office at MHTB) to conduct internal audits attheir respective domestic and overseas business offices, head
office departments and group companies. Specifically, theinternal audit departments assess the suitability and effectiveness of business activities associated with compliance andrisk management. The credit review departments (Credit

Financial Review

Assessment and Auditing Office at MHTB) audit credit ratings
and the status of credit management in addition to auditing
the self-assessment of assets to verify the accuracy and suitability of matters deemed necessary to assure the soundnessof assets.
(As of June 24, 2016)2016 Integrated Report79Foundations for Our Corporate Value

Risk Management
Basic Approach
Mizuho recognizes the conducting of operations tailored to var-

MHFG maintains basic policies for risk management thatious types of risk and managing such risks as a key issue relat-

are applicable to the entire Group. In line with these basic

ing to overall management. In order to implement our business

policies, we endeavor to strengthen and enhance the sophis-

strategy while maintaining our financial stability, we maintaintication of our risk management system.

comprehensive risk management and control measures.

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management
measures, while MHFG controls risk management for the80

Mizuho Financial Group

Group as a whole.
At MHFG, the Risk Management Committee chaired

by the Group CRO provides integrated monitoring anding risk management.
Our core group companies each maintains its systems

CRO reports the risk management situation to the Board offor managing various types of risk, receiving reports on the

Directors, etc. MHFG receives reports and applications con-status of risk at their respective subsidiaries, and gives themcerning the risk management situation from our core group

appropriate instructions concerning risk management.

Who We Are

management of the overall risk for the Group. The Group

companies and gives them appropriate instructions concern-

General Concept of Risk Management
Basic Approach
In line with the basic policies relating to overall risk man-of risk, including credit risk, market risk, liquidity risk andagement laid down by MHFG, companies within the Group

operational risk, and manage them.

identify risk broadly and take a proactive and sophisticated

In addition to managing each type of risk individually, we

approach to risk management, including methodologies forhave established a risk management structure to identify andoperations that involve exposures to multiple categories of

evaluate overall risk and, to keep risk within limits that arerisk such as settlement and trust businesses.

What We Aim to Do

We classify our risk exposures according to the various kinds

managerially acceptable.

Definition

The Group’s exposure to the risk of losses that may be incurred due to a decline in, or total loss of, the value of
assets (including off-balance-sheet instruments), as a result of deterioration in obligors’ financial position.

Market risk

The risk of losses incurred by the Group due to fluctuations in interest rates, stock prices and foreign exchange
rates. Our definition includes the risk of losses incurred when it becomes impossible to execute transactions in themarket because of market confusion or losses arising from transactions at prices that are significantly less favorable than usual.

Liquidity risk

The risk of losses arising from funding difficulties due to a deterioration in our financial position that makes it difficult for us to raise necessary funds or that forces us to raise funds at significantly higher interest rates than usual.

Foundations for Our Corporate Value

Credit risk

Operational risk

Our Strategies for Value Creation

Risk Category

The risk of losses that the Group may incur resulting from inadequate or failed internal processes, people andsystems, or from external events. Operational risk consists of several components such as information technology
risk, operations risk, etc.
Refer to page 115 of Risk Management Structure in the Appendix for specific components of operational risk.

Risk Capital Allocation
ongoing financial health of the Group, we regularly monitor

risk exposure and have implemented measures to keep suchthe manner in which risk capital is being used in order torisks within the Group’s financial base in accordance with theobtain a proper grasp of the risk profile within this frame-risk capital allocation framework.

work. Reports are also submitted to the Board of Directors

More specifically, we allocate risk capital to our core

Financial Review

We endeavor to obtain a clear grasp of the Group’s overall

and other committees of each company. Risk capital isgroup companies, to control risk within the limits set for each

allocated to MHBK, MHTB, MHSC and Mizuho Americas bycompany. We also control risk within managerially acceptablerisk category, and is further allocated within their respective

limits by working to ensure that the overall risk on a consoli-

business units.

dated basis does not exceed financial strength. To ensure the2016 Integrated Report81Foundations for Our Corporate Value

Compliance
Basic Approach
As the leading Japanese financial services group with a global

activities that conform to the norms accepted by society” andpresence and a broad customer base, we remain conscious

view ongoing compliance as one of the basic principles ofof the importance of our social responsibilities and public

sound business management. Each of our group companies

mission at all times.

maintains its own compliance structure in line with the basic

We define compliance as “the strict observance of all laws

policies established by MHFG.

and regulations and the pursuit of fair and honest corporate

Compliance Structure
The President & CEO of MHFG, MHBK, MHTB and MHSC

Compliance Structureeach generally oversees compliance matters of the respective company, and also heads their respective Compliance
Committees at which important matters concerning compliance are discussed. The four companies also have individualcompliance departments* under a chief compliance officer.
These departments are responsible for compliance planningand implementation and control overall compliance management at the respective companies.
At each organizational unit (such as branches and departments) at the four companies, the head of the unit is responsible for guidance and implementation related to compliancematters, and compliance officer or compliance administrator
at each unit reviews the status of compliance.
MHFG monitors the status of compliance of the Groupthrough reports submitted by our core group companies andadopts appropriate responses when necessary. Complianceat subsidiaries of our core group companies is monitored andmanaged by their respective parent.
*The functions and responsibilities of the department in charge based on the three lines of defense
The department in charge works as the second line, oversees (monitors), measures, and assesses the first line’s autonomous control activities for risks and compliance, and is responsible for establishing and promoting basic policies for risk compliance control.

Compliance Activities
We have established the Mizuho Code of Conduct, which

fully acquainted with the contents of the compliance manual.

sets forth clear and concrete standards of ethical behavior,

We monitor the status of compliance levels through self

and distributed it to all managements and employees of theassessments and monitoring conducted by the complianceGroup. Furthermore, each of our group companies has also

department of each company. In addition, every fiscal year,

prepared a compliance manual, which serves as a practicaleach of our group companies establishes a complianceguidebook for rigorous compliance enforcement and clarifies

program, which contains concrete measures for compliancethe laws and regulations that we must observe in pursuingenforcement such as management of the compliance frame-

our business activities and the compliance activities required

work, training and assessments. Progress of the complianceto follow. Each group company also conducts complianceprogram is monitored every six months.

training for managements and employees so that they are82

Mizuho Financial GroupEfforts to Prevent Money Laundering, etc.
In response to an increase in international demands for

We take various measures on a global basis, such as
performing customer due diligence/Know Your Customer

recent years, the Group has made the prevention of money(KYC) practices when establishing business relationships withlaundering and terrorist financing a top management prior-customers, preventing transactions with subjects to asset

ity, and implements measures based on common policies

freeze such as terrorists, and using monitoring systems etc. tothroughout the Group.

detect and report suspicious transactions.

Who We Are

anti-money laundering and countering terrorist financing in

Severing Transactions with Anti-Social Elements
anti-social elements through group-wide cooperation.

porate management and to avoid any harm caused by them,Furthermore, major group companies maintain central-

MHFG established the “Mizuho Code of Conduct” which

ized departments or appoint an officer to manage anti-social

sets out a policy to sever any ties with anti-social elements

element issues and make efforts to maintain effectivethat threaten the rule of law, public order, and safety.

frameworks, for example, by establishing a manual on how

MHFG, MHBK, MHTB and MHSC have each established an

What We Aim to Do

In order to prevent anti-social elements from influencing cor-

to manage such issues and conducting training sessions. If
required for specific cases, we consult with third-party ex-

President & CEO), which takes action to sever relations with

perts and authorities to handle the cases.

Our Strategies for Value Creation

Anti-Social Elements Elimination Committee (chaired by theInitiatives under the “One MIZUHO Strategy”
Within the “One MIZUHO Strategy,” initiatives are being
taken to raise the sophistication of compliance management
to smoothly advance expanding and deepening collaboration
among banking, trust banking, and securities businesses.

ters in promoting collaboration among group companies.
For senior executives, joint compliance training is provided
among MHFG, MHBK, MHTB and MHSC.
To provide optimal solutions for customers responsively,
as a “financial services consulting group,” our ComplianceGroup is working to further increase the sophistication ofof interest, and strictly confidential handling of customer

compliance management on a group-wide basis.

Foundations for Our Corporate ValueOur compliance training program includes information on
preventing misuse of superior positions, managing conflicts
information, to make all employees fully aware of these mat-Mizuho’s Internal Reporting Systems

Financial Review

When the Group becomes aware of compliance issues, the compliance manual requires that such matters bereported immediately to department and branch managers, and consultations are held.
In addition, we have established a compliance hotline that links to the Compliance Department and external
law office for direct reporting by employees.
Also, in light of internal and external conditions related to the internal reporting systems, MHFG is working toincrease the effectiveness of these systems by establishing group-wide external reporting channels that are available in the evenings, on Saturdays and Sundays, and makes such services available in foreign languages. Each of
the group companies is also working to make all employees fully acquainted with these systems by including suchinformation in the Compliance Manual, conducting training programs as well as by hanging posters and distributing pocket cards with contact points indicated to each and every employee.

Internal poster to makeemployees aware of theinternal reporting systems“Internal Controls and Audit Hotline” for Accounting or Auditing Matters
In addition to these reporting systems, MHFG has established a hotline within an external law office to receive reports from in and outside
the company in connection with problems concerning internal controls and audits of accounts and financial reports. Refer to “ComplianceContacts” on page 114 for details.

2016 Integrated Report83Foundations for Our Corporate ValueManagement of Customer Protection
Basic Approach
Mizuho gives first priority to our customers, and, based on

the operations of the Group from the perspective of custom-

the policy that earning the trust of our customers is the basis

ers in order to ensure adequacy of operations and improvefor ensuring sound management and earning the trust ofcustomer convenience as well as compliance, and manageother stakeholders, we will continuously verify and improvecustomer protection uniformly in the Group.

Overview of Management of Customer Protection Structure
Mizuho defines management of customer protection as de-Management of customer protection refers to the man-scribed below, clarifying the group management structure asagement required for achieving the following from thewell as management methods, and ensuring that each com-

perspective of improving the protection of our customers andpany draws up customer protection management regulations.

improving customer convenience.

1. Ensuring the adequacy and sufficiency of the explanation of transactions, products, etc. as well as the provision of information (explanationof products, etc.) to customers.
2. Ensuring the adequacy and sufficiency of handling customer consultations and complaints, etc. (customer service).
3. Ensuring the adequacy of the management of customer information (management of customer information).
4. Ensuring the adequacy of managing customers and handling of customer information in the event that group operations are outsourced(management of outsourcing).
5. Ensuring the adequacy of the management of the measures to be taken in order to appropriately address various situations of conflicts ofinterest that have stemmed from transactions with customers (management of conflicts of interest).

In addition to designating the compliance department
as the customer protection general management division ineach group company, the group companies establish theirown management structure by stipulating which divisions
are in charge of management of explanation of products,
management of customer service, management of customer
information, management of outsourcing, and managementof conflicts of interest (hereinafter, customer managementtasks).
The President & Group CEO of MHFG generally oversees
management of customer protection, and also heads theCompliance Committee in which related important matters
are discussed. The President & Group CEO also appoints
officers responsible for the general management of customer
protection in order to promote the Group’s appropriate
management. The Compliance Department is in charge ofgeneral management and monitors management of eachcustomer management task.
The division responsible for each customer managementtask draws up and implements proposals concerning thetasks under their jurisdiction. MHFG also provides centralized
monitoring and customer protection management activities
at the core group companies. The core group companies
84

Mizuho Financial Groupalso manage customer protection management at their owngroup companies.

Information Management
assets is of the highest importance. In our Group, we clarify

increased substantially, but, on the other hand, cyberattacks

our management systems for information assets, security

have risen in number. This has led to closer scrutiny of the

management measures and information administration

protection of personal information from a social standpoint.

methods. Also, we train and raise the level of awareness ofMizuho, which provides comprehensive financial services

each and every employee regarding the proper protection of

in Japan and overseas, is aware information management

information assets, and work to strengthen our informationthat aims to appropriately protect and use information

management systems.

Who We Are

Accompanying progress in IT, the usage of information has

In order to deal expeditiously, fairly, and appropriately with

Companies Association of Japan, and MHSC has conductedcomplaints, etc., from customers, each group company has con-such a contract with the Financial Instruments Mediation

cluded basic contracts for the implementation of dispute reso-

Assistance Center (FINMAC) respectively. The designated dis-lution procedures with various dispute resolution institutions.

pute resolution institutions take steps toward resolution froma fair and neutral perspective in cases where the solutions toJapanese Bankers Association, which is a designated disputecustomers’ complaints adopted by our group companies areresolution institution as defined in Japan’s Banking Act. In

not accepted.

Our Strategies for Value Creation

MHBK and MHTB have concluded such contracts with theWhat We Aim to Do

Approaches to the Financial Alternative Dispute Resolution (ADR) System

addition, MHTB has concluded such a contract with the TrustManagement of Customer Service
Our Group, which has transactions with a wide range ofcentralized supervision and management of customer service

customers, insists on responding appropriately to customer

and verify the appropriateness of responses to complaints

complaints and continues to work toward protecting andincluding whether complaints have been solved to custom-

increasing convenience for its customers.

ers’ satisfaction and understanding. In cases where the same
complaints are recurring, the related divisions are required toquickly and politely and always require appropriate reports

formulate response policies, and the progress toward im-

on such matters.

provement is monitored. In addition, education and training

Furthermore, we regard customer feedbacks as importantmanagement assets and work continuously to improve ourFoundations for Our Corporate Value

Regarding complaints, we also insist on responding

courses are planned and implemented to ensure that employees observe matters related to customer service management.

operations and prevent recurrences of issues for increasing
Customers

customer satisfaction.
The Group establishes its own management structure
by stipulating which divisions are in charge of drawing up
and implementing proposals related to the supervision ofcustomer service management. The divisions specified arecustomer service in core group companies, and they report tomanagement via the Compliance Committee, etc.
Each of the group companies has specified procedures for

Reception
Reports

Branches andcall centers

Analysis
Improvement

Division(s) in charge
Related divisions

WebsitePostcards

Externalorganizations
Financial Review

responsible for centralized supervision and management ofGroup companies

Management

hearing complaints and related matters, preparing reports andrecords, and monitoring the administration of reports and

MHFG

responses. In addition, the divisions in charge also conduct2016 Integrated Report85Foundations for Our Corporate Value

Activities to Fulfill Fiduciary Duties
Basic Approach
Strong capabilities in product development, sales, asset

Each of Mizuho’s group companies specializes in a different

management, and asset administration are indispensable tofunction, and in providing appropriate products and services thatthe successful conduct of asset management-related business.

are in our customers’ best interests, MHFG has established andOur Group is dedicated to speed and flexibility in our respons-announced its Policies Regarding Mizuho’s Fiduciary Duties.*

es to the constantly changing, diverse needs of our broad

Each of Mizuho’s group companies announced its action

range of customers—from individual investors to pension

plan in compliance with the group management policies andfunds, regional financial institutions, and other institutional

each function, and is taking customer-oriented measures toinvestors—which are made possible by our full complement of

implement these policies.

group companies with the expertise in banking, trust banking,* Fiduciary duties is a general term for the broad range of various roles andresponsibilities that fiduciaries are expected to fulfill when engaging incertain business activities in order to live up to the trust that is placed inthem by their customers.

securities, and asset management required to provide top-tierasset management-related products and services.

Group Companies that Have Established and Disclosed Action Plans
Policies by Function:
Sales

Asset Management and Product Development

Asset Administration

Group Management Policies

MHBK
MHTB
MHSC

TCSB
DIAM
MHAM
Shinko Asset Management

Please refer to the respective websitesof each company for details.

Note: With October 1, 2016, as the target date for consolidation of asset management activities, a new company, Asset Management One, is scheduled to take overthese action plans for DAIM, MHTB, MHAM, and Shinko Asset Management.

Policies Regarding Mizuho’s Fiduciary Duties
Policies Regarding Mizuho’s Fiduciary Duties consist of the group management policies and policies by function. These are summarized as follows.

Group Management Policies

Corporate
Governance• Build governance systems to ensure the appropriate levels of independence between the holding company and the group’s
asset management companies, and between the group’s sales companies and asset management companies• Establish and disclose specific plans of action on the part of each group company• Report to the board of directors and other relevant parties the state of compliance pursuant to the Policies Regarding
Mizuho’s Fiduciary Duties

Evaluating
Performance• Establish an appropriate performance review system to evaluate initiatives which meet our customers’ needs and are in
their best interests

The Rationality• Set rational levels of remuneration, fees and commissions according to the nature of the products and services providedof Remuneration,
to customers
Etc.
Monitoring
Conflicts ofInterest

86• Enhance monitoring of intra-group conflicts of interest

Mizuho Financial GroupPolicies by Function:
Function

Policies
Who We Are

1. Building Appropriate Product Lines in Response to Customers’ Needs(1) MHBK, MHTB and MHSC aim to provide customers with excellent investment opportunities on a group basis(2) Based on our customers’ investment objectives, thoroughly review our existing products and consider adopting
new products which help customers to steadily build their assets
2. Providing Investment Products to Customers via Consulting Services(1) Accurately assess the state of our customers’ assets and liabilities and their tolerance for risk
(2) Provide consulting services to improve our customers’ understanding of the characteristics of various products
Sales(3) Enhance our consulting capabilities and pursue new methods of making proposals using the latest technologies(4) Promote a high degree of transparency in setting fees and commissions
What We Aim to Do

3. Attentive Follow-Up Service to Help Customers Achieve Their Goals(1) Provide information and advice to assist customers in making appropriate investment decisions through attentive follow-up services(2) Reliably execute and improve our business activities so that customers can invest with confidence
4. Laying Foundations to Help Customers Invest with Confidence and Steadily Build Their Assets(1) Enhance useful services which help to improve the financial and investment knowledge of our customers(2) Enhance personnel development as an organization in order to provide consulting services of the highest standard
1. Enhancing Asset Management

Our Strategies for Value Creation(1) Enhance investment analysis and decision-making capabilities through further reinforcements to our personnel
base and asset management foundations(2) Pursue improvements in existing asset management methods and new methods and investment opportunities
2. Initiatives to Continuously Improve Product Quality and Develop New Products Based on Customers’ Needs(1) Improve the quality of our products through appropriate risk management and checking of products(2) Develop products with our understanding of our customers’ needs and our expertise as asset management
Asset
Management &Product

3. Enhancing the Provision of Information and Services from the Customer's Perspective
Foundations for Our Corporate Value

Development

professionals(3) Promote a high degree of transparency in setting management fees
(1) Practice the highest quality of service(2) Prioritize convenience and ease of understanding in providing customers with the most appropriate information(3) Enhance useful services which help to improve the financial and investment knowledge of our customers
4. Strengthening Corporate Governance(1) Build a corporate governance system that is of the highest standard in its industry and ensure the independence of the asset management entities(2) Make decisions pertaining to new product development based on objective evaluations and highly
transparent processes
1. Strengthening the System for Providing Asset Administration Services(1) Advance initiatives to enhance our operational and IT infrastructure and develop personnel with a high degreeof specialized expertise

Administration

2. Initiatives to Improve Service Quality and Develop New Services

Financial Review

Asset(1) Develop new services with the ultimate aim of providing optimal solutions(2) Regularly examine the processes for setting asset administration fees to ensure that they reflect the natureof services
3. Enhancing the Provision of Information in Support of Customers’ Investment Activities(1) Enrich our various services for providing information to investors to enhance their investment management efforts

2016 Integrated Report87Foundations for Our Corporate Value

IT Strategy
Basic Approach
IT systems are crucial elements of financial institutions’management and business strategies, and high-quality IT

among our banking, trust banking and securities functions.
Under the new medium-term business plan, Mizuho will

strategies are key means of differentiating an institution fromaim for “strong IT systems” that are efficient and stableits competitors and establishing superior competitiveness.

and will support its “One MIZUHO Strategy.” Mizuho will

Based on this understanding and the lessons learned fromcontinue to develop IT systems that will also mobilize thepast system failures, we are engaged in risk management

Group’s comprehensive capabilities to establish superior com-designed to ensure the stable operations of IT systems which

petitiveness, meet customer needs, and give a solid responseis required for us to play important roles in the settlement

to progress in IT, tighter financial regulations and otherinfrastructure. Amid a changing societal environment with thetrends, while also providing global IT services in an integrated

globalization of economy, the tightening of supervisory regula-manner among banking, trust banking and securities func-

tions, and the emergence of Fintech, we are striving to meettions. Moreover, from a systems perspective, we will pursue

diversified customer needs by leveraging our IT systems to pro-

operational excellence and is continue to take initiatives tovide secure, safe and seamless services in an integrated mannerstrengthen IT governance.

Apr. 2002~

Dec. 2004

Apr. 2010 to Mar. 2013

Apr. 2013~

from May 2016~

Dec, 2016 (Plan)

Efforts to Strengthen IT Governance to Support Our Businesses

88

We will continually make efforts to ensure stable systems op-

agement and measures for assuring cyber security on a group-

erations by establishing frameworks for the safe and reliablewide basis, we are striving to strengthen IT governance.

development of IT systems and implementing such IT invest-

Based on this unified group-wide IT governance, we arements as those that promote common system infrastructure,

implementing efficient and optimal IT investments to support

strengthen management and increase the stability of systems

its in-house companies by customer segment for speedilyalready in operation. Furthermore, by promoting data man-planning and strongly implementing their business strategies.

Mizuho Financial Group

Cyber Security
Threats due to cyberattacks are forecast to further increase.
CIRT*1 as the core, Mizuho is taking the initiative in collaborating with specialized institutions outside the Group tostrengthen its capabilities for rapidly and effectively dealing
with cyberattacks through creating an integrated SOC*2,
upgrading multilayer defense systems, and other measures.
*1. Cyber Incident Response Team
*2. Security Operation Center

Externalorganization

Mizuho-CIRT
Collaborate

Integrated SOC
Forensics

Gather information/
implement countermeasures/investigate

Who We Are

To protect the safety of its customers, with the Mizuho-

Rescue/support
Monitor/respond

Assets/services to be protected

Attacker
Targeted cyberattack
Website alteration
DDoS attack
Hacking

Information
assetsCustomer
information

Multilayer defense systems

What We Aim to Do

Illegal money transfer

Protect

Data Management
As “data management” for data collection and analysis to be
used in management and business become more importantto respond to global financial regulations and sophisticationof MIS*3, we have prepared a data base to centralize man-

Our Strategies for Value Creation

agement of collected and analyzed data relating to risks andprofits, etc. In addition, with the aim of using big data for
more sophisticated marketing, we will promote the development of a data analysis platform.
*3. Management Information System

Transition to Next-Generation IT Systems
Foundations for Our Corporate Value

Regarding the next-generation IT systems, the design and programming stages have been completed, and start-up tests are in progress. The
next-generation IT system will unify the current three core banking account systems, and this will result in downsizing and streamlining IT systems. By developing independent components for each business and function, it will be possible to adapt flexibly to the introduction of newservices and to reduce the development time and costs, and, by structuring cutting-edge core banking systems, we will be able to strengthen
the infrastructure for providing services to customers and improve the processing speed of our operations. Going forward, looking to thecompletion of the system development, we will conduct thorough start-up tests, and, to make the transition to the new system smooth, wewill specify the steps in the procedure. At the same time, we will conduct thorough training in our front offices, keep customers informed
with notices. As one of our most important projects, we will take a thoroughgoing approach and work to transit our next-generation IT
systems ahead of our competitors.

Financial Review

2016 Integrated Report89Foundations for Our Corporate Value

Human Resources Strategy
Supporting Business Strategy Execution from the Human Resources (HR) Side
Under Mizuho’s new medium-term business plan, entitledfore, Mizuho is committed to developing each and every one

Progressive Development of “One MIZUHO”: The Path to aof our employees and helping them reach their full potential.

Financial Services Consulting Group, Mizuho has entered a

We also recognize the importance of developing strong lead-

new stage where we will take on the challenge of building aers who are capable of leading Mizuho in the future.

new business model for a new era.

As we enter this new stage, it is essential that we embed

Achieving this new business model and thoroughly dif-a robust corporate culture throughout the Group. In terms offerentiating Mizuho from our competitors requires not only

HR, this means reforming our HR management systems anda strong business strategy, but also a dedicated, talented

practices and encouraging changes in employee mindsets

workforce who can implement the strategy effectively. There-

and behaviors.

Our HR Vision and Primary Aim for HR Management
In order to realize the tenets of Mizuho’s Corporate Identity,

force. Therefore, Mizuho’s HR management is designed toMizuho has established an HR Vision to encourage all em-

encourage employees to exercise their abilities to their maxi-

ployees to take initiative and develop themselves.

mum potential, and to continuously expand their capabilities

To realize this HR Vision, Mizuho aims to continuously

and expertise and enjoy long and fulfilling careers at Mizuho,

increase employee engagement, creating a virtuous circle ofby motivating them to both advance their own careers andgrowth between employees and the organization, and estab-

contribute to the organization.

lish competitive advantage for Mizuho in terms of its work-

HR Vision
Mizuho Financial Group firmly believes that the personal development of individual employees contributes to the stable and sustainable growth of Mizuho as a whole.
Mizuho recognizes those employees who make an effort to put the Mizuho Values into practice and helps employees to createa more fulfilling life through their work.
• Mizuho encourages employees to utilize their strengths, and provides opportunities for them to use their skills and to develop their abilities.
• Mizuho encourages employees who differ in terms of gender, country of origin, cultural background, and values to understand, respect,and inspire each other.
• Mizuho works with its employees to create a corporate culture that encourages people to be passionate about and to take pride in their work.

Fundamental Reform of HR Management
Valuing the Individuality of Each Employee
In developing employees’ capabilities, Mizuho will put a focus

exercise their abilities to their maximum potential.

on each employee’s particular characteristics, ways of think-Mizuho will support all employees’ active participation

ing and behaviors (inherent qualities), and employees will beand expanding their areas of specialization depending on

assessed on what they learn from all their experiences includ-

their career goals, by providing them with job assignments

ing mistakes. Employees also will be encouraged to apply

and opportunities to actively use their experience, skills andtheir strengths to build up specific areas of specialization toexpert knowledge.

develop their capabilities and to achieve continual growth toTalent Acquisition and Employee Development Aligned with the Business Strategies for Each Customer Segment

90

Mizuho’s talent acquisition and employee development is

ing our business strategies for each customer segment andhighly strategic and competitive, with the aim of support-

achieving competitive advantage.

Mizuho Financial Group

Some of the specific actions we will take are (1) to clarify

order to effectively develop employees.

the qualities and expertise (business experience, abilities,

In addition to developing internal candidates, we will
actively acquire new talent who are experienced, market-

that we can realize the business strategies and (2) conduct

valued professionals and appoint them to posts where theystrategic, cross-entity employee rotations and assignments incan contribute to enhancing Mizuho’s competitiveness.

Who We Are

knowledge and skills, etc.) that are required of employees so

Future Executive Leaders Development Program
within the organization through a combination of (1) gaining

tive leaders who have the necessary strength and passion toexperience in challenging posts which require a high level

unite and lead a top-tier financial group and who can contin-of strategic planning and organizational management capa-ually drive change at Mizuho, selflessly lead the organization

bilities and (2) a training program (seminars and individualand overcome difficult situations or times of crises.

coaching) provided in partnership with external educational

In order to cultivate the necessary competencies of theinstitutions.

future executive leader candidates, we will focus on strength-

Candidates for this development program will be selectedening (1) their ability to envision the future of the organiza-

from a diverse pool of employees throughout the Grouption, (2) their ability to broadly unite and lead the organiza-(banking, trust banking, securities, asset management andtion and (3) a high level of integrity, including strong ethics,

research & consulting) and throughout the world. Selection

morals and sense of propriety.

will take into consideration their recent performance, and beSpecifically, this program seeks to prepare and motivate

based on the fields where they have the potential to play animportant role.

Our Strategies for Value Creation

candidates to take on the responsibility of the top roles

What We Aim to Do

Mizuho will implement a program to develop future execu-

Globalization of Mizuho’s Talent and HR Management
To enhance Mizuho’s global business, Mizuho will build an

global talent who will play key roles in Mizuho’s global

integrated HR management framework for all nationalities

business, and actively and systematically appoint capableand cultures to ensure that the right person is placed in theemployees, irrespective of nationality or ethnicity, to upper

right position on a global basis. We will acquire and develop

management posts.

Promoting Diversity and Inclusion (D&I)
tions and decision-making. In doing so, we aim to bothdiversity. We need to be progressive in the implementation ofenhance employee engagement, motivate employees tothe next stage of our D&I initiatives in order to achieve a great-achieve personal growth, and create new value and innova-

er degree of inclusion, and thus encourage the growth andtion. Mizuho will therefore implement a variety of initiatives

active participation of all members of our diverse workforce.

on a global basis and has established numerical targets with

We will proactively incorporate the diverse perspectives,

the aim of being at the forefront of diversity and inclusion inthinking and values of all employees into day-to-day opera-

Foundations for Our Corporate Value

We recognize that Mizuho must go beyond simply promoting

every country in which we have a presence.

Numerical Targets (MHFG, MHBK, MHTB, MHSC)
Area
Outside Japan(MHBK)

Achieve by

Current

50%

Percentage of management positions filled by women

10%

Percentage ofmanagement
positions filled by
women

General manager equivalent and above

10%

Manager equivalent and above

20%

10%

Assistant manager equivalent and above

30%

22%

Percentage of new graduates hired for generalist track jobs
who are female

30%

FY2019Percentage of paid annual leave taken by employees

70%

Percentage of eligible male employees who take childcare leave

100%

Percentage of employees who are persons with disabilities

2.3%

33%
7%
July 20193%

July 2016(Outlook)

34%

FY2016FY201864%

FY2015FY20181.5%

FY2015June 2019

2.2%

March 20162016 Integrated Report

Financial Review

Japan(total for theabove four
companies)

TargetPercentage of Management positions filled by employees
hired outside Japan91

Foundations for Our Corporate Value

Mizuho’s HR Policy and D&I Statement
Mizuho has established and externally released Mizuho’s

HR strategy, HR system and HR management and the D&I

HR Policy and a D&I Statement as a means of affirming

Statement outlines Mizuho’s fundamental thinking, strategy

our strong commitment to transparent HR management.

and initiatives for fostering growth and promoting the active

Mizuho’s HR Policy stipulates guiding principles for Mizuho’s

involvement of Mizuho’s diverse workforce.

Mizuho’s Corporate Identity
Corporate Philosophy

VisionMizuho Values

HR Vision
Mizuho’s commitment to its employees in line with Mizuho’s Corporate Identity

D&I Statement

Mizuho’s HR Policy
Guiding Principles for Mizuho’s HR management under its HR Vision

The fundamental strategy, areas of focus, and primary initiatives to foster growthand promote the active involvement of all members of Mizuho’s diverse workforce

HR Strategy/HR System/HR Management

Mizuho’s HR Policy

http://www.mizuho-fg.co.jp/english/csr/employee/index.html

Primary Aim for Mizuho’s HR Management
Mizuho aims to continuously increase employee engagement, creating a virtuous circle of growth between employees and the organization, and establish competitive advantage for Mizuho in terms of our workforce. Therefore, Mizuho’s HR management is designed toencourage employees to exercise their abilities to their maximum potential, and to continuously expand their capabilities and expertise andenjoy long and fulfilling careers at Mizuho, by motivating them to both advance their own careers and contribute to the organization.

Policy Summary
Based on its medium- to long-term talent acquisition strategy, Mizuho is seeking to raise its brand value in the
global recruitment market to attract and retain top-quality talent. Mizuho seeks to acquire both new graduateswith high potential as well as more experienced professionals who can enhance Mizuho’s competitiveness.
Employees are encouraged to identify specific fields where they have particular potential based on their areas
Employee developmentof specialization, and to develop the expertise required in order to better contribute in the fields they identify.
In line with the employee’s career development stage, employees will be compensated in a fair and transparent
Evaluation, remuneration,manner based on an evaluation of their performance and contribution to the organization, an assessment of what
and rewards
they learn from all their experiences, including mistakes, and the degree to which they expand their capabilities.
Mizuho implements strategic employee job assignments, appointments and transfers throughout the Group
with a focus on putting the right person in the right position, building employees’ work experience, capabiliEmployee appointments
ties and expertise, and strategically allocating personnel in order to maximize the effectiveness of our businessand transfers
strategies. This also includes developing executive leader candidates as a means of succession planning for key
roles within the organization.

Talent acquisition

Promotions

Promotions shall be based on primary business competency standards aligned with the requirements for eachjob level. For employees in a more advanced stage of their career and who possess organizational leadershipcapabilities, promotion shall be based on which field they will be able to maximize their performance in.

This program seeks to identify future executive leader candidates at an early stage from a diverse pool ofcandidates throughout the Group and to prepare them to lead the organization through a rigorous development program.
Mizuho promotes and implements diversity and inclusion initiatives in order to ensure that all employees, regardless of their personal attributes and background, can perform to their full potential, continually contribute
Diversity and inclusion
to the organization and achieve personal growth.
Globalization of Mizuho’s To promote Mizuho’s global business strategies, Mizuho will strengthen its HR management structures andtalent and HR management capabilities.

Future Executive Leaders
Development Program

92

Mizuho Financial GroupHuman Resources Strategy

D&I Statement

http://www.mizuho-fg.co.jp/english/csr/employee/index.html

Outline of Mizuho’s D&I
Who We Are

By proactively incorporating the diverse perspectives and thinking of our workforce into day-to-day operations and decision-making,Mizuho aims to create new corporate value as employees continually develop innovative products and transform service and operational
processes, both of which are key to remaining competitive in the financial industry and in this fast-paced business environment.

Areas of Focus in Promoting D&I

What We Aim to Do

Transforming HR management to maximize diversity and inclusion• Mizuho is committed to carefully reviewing and fundamentally reshaping its HR management as necessary in order to actively reflect
the different perspectives, thinking, and values of our diverse workforce into daily work and organizational decision-making, and toensure that every employee can exercise their abilities to their maximum potential, continually contribute to the organization, experience personal growth, and feel motivated and proud to be working at Mizuho.

Our Strategies for Value Creation

Transforming “work-life balance management”• Mizuho is committed to creating an engaging work environment which will encourage long-term retention and contribution. To that
end, where appropriate, Mizuho will provide flexible work arrangements to accommodate significant changes in employees’ personal
circumstances (such as the birth of a child), allowing them to choose the most effective option at the time to achieve a good work-lifebalance.

Ensuring employee and executive officer mind-sets and behavior are in line with stated goals• Mizuho is committed to ensuring that all employees and executive officers have a good understanding of the purpose of Mizuho’s
promotion of D&I initiatives, and to encourage and support them to always demonstrate the right mind-set and behavior.

Foundations for Our Corporate Value

Key Strategic Initiatives
Accelerate merit-based appointment of deserving employees regardless of nationality, ethnicity or gender, etc.

Create a supportive work environment that responds to employees’ issues and concerns

Create a work environment that enables employees to achieve more flexible work arrangements

Financial Review

Build an organizational framework to recognize and reward employees who provide support for colleagues who need to work more flexibly to balance their work with childcare or care for other family members (“family care responsibilities”)

Monitoring the progress status of D&I at Mizuho through utilization of a “D&I Index”

2016 Integrated Report93Foundations for Our Corporate Value

Measures to Form a Common Culture throughout the Group
Basic Approach
One of the 10 Basic Strategies set in Mizuho’s new medium-the minds of everyone in the Group, as well as carrying out

term business plan is continued initiatives toward embedding

initiatives to support every employee in putting the Mizuho

a corporate culture to support the creation of a stronger

Values into practice to build a strong corporate culture. Spe-organization.

cifically, we will strengthen our initiatives to encourage all

The One MIZUHO Promotion Project Team works to share
Mizuho’s Corporate Identity and the new medium-term busi-

employees to put the Mizuho Values into practice and further
promote internal communication.

ness plan among directors and employees and ingrain it in

Measures to Form a Culture
Strengthening Our Initiatives to Encourage All Employees to Put the Mizuho Values into Practice
To strengthen our initiatives to encourage all employees to put the Mizuho Values into practice, each
office formulates a ”Vision of Individual Offices” containing that office’s aims, and the staff members ofeach office are striving to effectively promote progress toward the realization of their respective visions.
And, each office organizes the “One Mizuho Day” meetings to evaluate the actions taken in the previous fiscal year and deliberate about the initiatives that should be implemented in the current fiscal year.
Various support initiatives are carried out to help deepen understanding of Mizuho’s Corporate
Identity and encourage employees to put the Mizuho Initiatives into practice, such as General Managers Off-site Meetings for the GMs of our domestic and overseas offices, who are the driving force in theestablishment of culture, and other various forms of training for employees.

A General Managers Off-site Meetingin overseas department

Further Promoting Internal Communication
Mizuho carries out various initiatives to promote group solidarity and communication among employees.
In addition to events for employees such as the Mizuho Festival and Live Viewing of Japan’s national soccer team playing in a match, these include the Mizuho Volunteer Day, in which employees in each region
or office carry out activities to contribute to society, and the One Mizuho Culture Prize, in recognition ofoutstanding examples of putting the Mizuho Values into practice.

94

Mizuho Financial Group

The Mizuho Festival

Initiatives to Improve Customer Satisfaction (CS) and Be the Best Financial Services Provider
Basic Approachwith our customers and work to build a trust relationship in

the highest possible standard of financial services that meetthe medium-to-long term, with an awareness that every ac-

our customers’ needs on a global basis.

tion by every employee has a bearing on the satisfaction and

We also place great importance on emotional connections

Who We Are

Adopting “customer first” principle, Mizuho aims to provide

trust of our customers.

Improving CS by Providing Products and Services that Meet Customers’ Needs
are paying close attention to the information this feedback

financial services provider. We continued to receive feedback

provides about the diverse and ever-changing needs of ourfrom customers through various channels in fiscal 2015,

customers, such as an extensive range of good-value prod-

including around 200,000 customer feedback cards and sur-ucts, security features and expansion of convenient channels,

veys for corporate customers both in Japan and overseas. We

to improve our level of services.

Cycle of CS Improvement

What We Aim to Do

Mizuho is working to achieve its vision of being the best

Customers

Providing Products andServices Approved by Customers

Systems for Obtaining
Customer Feedback• Customer Feedback Cards• Call Center• CS Surveys

Our Strategies for Value Creation• Prompt proposals and information provision• Highly professional consulting• Extensive solution function

Grasp the Needs andExpectations ofEach Customer

Each Group Company

MHFG
Improvement of CS Awareness among All Employees in the Group

Foundations for Our Corporate Value• Building of Systems for Cross-Sectional Promotion of CS throughout the Group• Use of Common CS Improvement Tools among the Group • Extensive Education and Training for CS

Main Achievements in Fiscal 2015’s Efforts to Be the Best Financial Services Provider
3-Star in Banking Industry Support Portal Rankings

No.1 in Retail Banking Survey on Product Offering Adequacy

MHBK received a top ranking of three stars in the Banking

MHBK is No. 1 for two consecutive years in the Retail Banking

Industry Support Portal Rankings hosted by HDI-Japan*, for

Survey on Product Offering Adequacy, a survey carried out

three consecutive years because of its stance addressing cus-

jointly by Nikkei and Nikkei Research.

tomers’ inquiries, including the improvements to its website,
such as the improvement of its structure, navigation flow andextensive FAQs, based on feedback from its call center, web

One-time Password Card
MHBK was the first Japanese retail bank to introduce a one-

troduction of Mizuho Messenger to increase inquiry channels.

time password card with electronic transaction signing that

* A support portal and inquiries service
ranking event in which companies’
support centers in various industries areranked every year by HDI-Japan, theJapanese branch of the HDI (Help Desk
Institute).

provides protection against all financial

Financial Review

inquiries page and customer feedback cards, as well as the in-crimes that have been discovered at
this point.

2016 Integrated Report95Foundations for Our Corporate Value

Initiatives for Reducing the Environmental Burden
Mizuho has established its “Policies for Environmental Initia-

enacted more broadly. Also, the paper used by the Group istives,” which include its policies for offering financial services

required to be made from wood that has been produced in

to promote environmental consciousness, for promoting

accord with legal regulations in terms of the ecosystem andits environmentally conscious businesses, and for support-

human rights.

ing other environmentally conscious activities, through joint

Along with these changes in the external environment,

initiatives among the group companies for preserving theMizuho has set targets to reduce the environmental impact

earth’s environment.

from its own business activities, is reviewing them periodical-

As climate change issues become more serious, local

ly, and is continuously making efforts to improve its perfor-

government regulations related to reductions in emissions ofmance. In addition, Mizuho conducts various enlightenment

greenhouse gases and requirements for disclosure of suchactivities to raise the awareness of its management and staff

emissions have been tightened. In view of the adapting thefor global environmental issues and to encourage environ-

Paris Agreement, it is expected that such restrictions will bementally conscious behavior.

Initiatives and Targets for Reducing the Environmental Burden
Taking account of the external environment, Mizuho has set

tained from properly managed forests. Also, at the disposal

goals for and is engaging in initiatives for reduction in CO2stage, Mizuho is endeavoring to arrange for separation ofemissions and procurement/recycling of paper.

used paper products by type for recycling, while also reduc-

Regarding CO2 emissions, in February 2016, Mizuho newly
established a long-term target for reducing emissions by fis-

ing the volume of paper used by introducing tablet computers to move toward paperless office operations.

cal 2030. To attain this target, Mizuho is promoting energy
conservation through making investments, including intro-

Targets and Results in Fiscal 2015

duction of LED lighting and replacement of existing equipment with more energy-efficient ones, in addition to its daily
efforts to reduce electricity usage.

CO2*1

For the more environmentally conscious usage of paper,
Mizuho has established its “Administrative Guidelines for Environmentally Responsible Procurement of Supplies, Goods,
and Contracted Services,” and, based on these guidelines,
Mizuho is actively working to procure paper products madefrom recycled paper and products made from wood pulp ob-

Actual resultfor FY2015

Targets

Paper

FY2020: 10.5% reduction
FY2030: 19.0% reduction
Maintain green purchasing ratio of 85%
or more*2
Paper recycling ratio of 95% or more for
FY2020*3

17.9%
reduction
99.8%
94.7%

*1. CO2 emissions stemming from electricity usage in the domestic facilities of
the Group (compared with fiscal 2009)*2. For ten group companies*3. For major domestic offices

Environmental Enlightenment for Employees
Since fiscal 2008, Mizuho has conducted environmental campaigns for all domestic employees of the Group.
Through fiscal 2015, an accumulated total of more than
310,000 employees have pledged participation in environmentally conscious activities. Based on these pledges, Mizuho
has donated 15,690 seedlings to 116 local schools and hospitals and other locations in Japan.

Planting of the seedlings donatedby Mizuho

Poster for increasing environmental awareness96

Mizuho Financial GroupSocial Contribution Initiatives
Mizuho believes that contributing to sustainable social devel-

contribution initiatives.
We are specifically focusing on (1) initiatives that take fullto realize the vision of Mizuho’s Corporate Identity and build

advantage of our management resources and contribute to

the foundation for creating its corporate value and its devel-

regional and social development, and (2) initiatives in collabo-

opment. Participation in these initiatives also helps our staff

ration and cooperation with regional societies that form theto grow and develop their sense of being members of society.

foundation for the activities of the Group as well as govern-

We have established Policies for Social Contribution Initia-

ment organizations, NPOs, regional communities and others.

Who We Are

opment through our social contribution initiatives enables us

tives, and the Group is working together to implement social

Support for Financial Education
financial education programs implemented by Mizuho has

as a provider of comprehensive financial services to movereached approximately 48,000.

ahead with the provision of support for financial education

We are working to draw at least 20,000 people to ourat two levels—elementary and secondary level and the higher

financial education programs between fiscal 2016 and fiscal

education level. In fiscal 2005, we clarified our policy regard-

2018 to meet the social needs of improving financial literacy

ing the proactive promotion of support for financial educa-

and providing career education, as well as to contribute to fos-tion and, as a result of our progressive efforts in this regard,

tering the next generation of people in the finance industry.

What We Aim to Do

Mizuho has drawn on its practical knowledge and know-how

the aggregate number of people who have participated in
Our Strategies for Value Creation

Activities in Elementary and Secondary Education
Mizuho has been conducting a joint research on financial education with Tokyo Gakugei University since fiscal 2006. By leveraging the special strengths and networks of each of the two parties, the research project has developed financial education tools as well as taken diverse
initiatives designed to promote the implementation of financial education programs on a broader scale.
Based on the results of the research, Mizuho has arranged for its employees to visit schools and teach finance-related classes as guest
instructors, and provided opportunities for school children and students for work experience.

Activities in Higher Education
Foundations for Our Corporate ValueIn the area of higher education, as an effort to develop human resources with high-level financial
knowledge who will be responsible for the next generation, we have offered full-scale, donated lectures and courses at universities on an ongoing basis since fiscal 2006.
Employees with hands-on expertise are deployed to give lectures and courses that leverage knowledge Mizuho has acquired through the comprehensive financial services. Furthermore, we endeavor
to establish themes to take into account the latest economic and financial environment and businesstrends and other issues to make the lectures and courses more practical.

A lecture at a university

Volunteer Activities by Employees
Since fiscal 2006, “Mizuho Volunteer Day” has been desigFinancial Review

nated each year for management and employees to focus on
engaging actively in substantive volunteer activities. Employees are engaged in a wide range of activities that were
designed to meet community needs.
In fiscal 2015, a total of approximately 6,000 Mizuho employees, their families, and others in 21 countries participated in it.

An activity at a domestic office

An activity at an overseas office2016 Integrated Report97Foundations for Our Corporate Value

Stakeholder Communication
Having articulated its fundamental ethical posture toward its stakeholders in the Mizuho Code of Conduct, Mizuho proactively
undertakes communication activities and strives to ensure that its corporate activities are in harmony with common sense as well
as being fair and transparent.

Mizuho’s Stakeholder Communication• Dialogue at branches and through our sales staff• Customer feedback cards• Call centers• Website• Questionnaires for customers andcustomer satisfaction surveys• PR activities• General meeting of shareholders,brochure entitled “Report to Our
Shareholders”• Investor brieﬁngs, IR contact website page
• Dissemination of information throughwebsites and disclosure materials• PR activities• Responding to socially responsible
investment surveys, etc.

P 84, 95
• Appropriate responses tosupervisory authorities• Activities through industry
groups• Public-private partnershipinitiatives• Policy recommendations

Customers

P 99
Government
Authorities

Shareholders

Mizuho• Education and training• In-house communication
activities• Employee opinion surveys• Labor-management
consultations• Arrangement for responding toconsultations and complaints

P 90

Suppliers andcompetitors

Employees

Regional/Local
communities• Social contribution activities• Support for ﬁnancial education• Stakeholder dialogue• PR activities

P 97

98

Mizuho Financial Group• Purchasing activities andoutsourcing contracts basedon the Mizuho Code of
Conduct as well as oncompliance regulations,outsourcing regulations, etc.
• Coordination andcooperation in businessactivities• Cooperation through industry
groups and diverse initiatives

P 99

Communication Activities Example (1): Communication with Shareholders
In addition, Mizuho holds meetings for explaining thecontinuing to disclose information to our shareholders and in-management strategy of its operating areas and participates

vestors in a fair, timely, and appropriate manner, in order forin conferences arranged by securities companies for investors.

Who We Are

Mizuho places one of its highest management priorities onthem to form relevant judgments and appraisals of the Group.
For individual investors, we participate in Investor Relations(IR) events and convene investor information meetings in various locations in Japan. In September 2015, we also held an
online IR meeting (live over the Internet) for individual investors, led by the executive officer in charge of IR.

What We Aim to Do

For analysts and institutional investors, following periodic
announcements of financial results, Mizuho holds Internet
conferences and IR meetings where members of management give presentations on management strategy, financial
position, and other topics.

Investor briefings for institutional and individual investors
Six briefings were held in fiscal 2015
Participants: approximately 1,500 investors in total

Ordinary General Meeting of Shareholders
We endeavor to improve accessibility to the Ordinary Generaltion and answer session.
In addition, we post business reports and the summary of the

by avoiding the day many companies hold their sharehold-

Q&A session at the shareholders’ meeting on MHFG’s website.

Our Strategies for Value Creation

Meeting of Shareholders held each year at the end of Juneers’ meeting so that our shareholders are able to attend ourmeeting.
The most recent meeting, the 14th ordinary general
meeting of shareholders, was held on June 24, 2016 at
the Tokyo International Forum, and was attended by 2,797
persons. At the shareholders’ meeting, we used a large
possible, and shareholders participated actively in the ques-Foundations for Our Corporate Value

screen to make the content as visually easy to understand as
The 14th ordinary general meeting of shareholders

Communication Activities Example (2): Participation in Initiatives
Mizuho, given its global perspective and role as a financial institution, participates in domestic and overseas initiatives to advance
activities for the formation of a sustainable society.
United Nations Global Compact

UNEP Finance Initiative (UNEP FI)

Ten principles addressing matters like human rights,
labor, the environment, and anti-corruption

International partnership offinancial institutions concerning
sustainable practices in the various operations in which financial
institutions are involved

Equator Principles

UN’s “Principles for Responsible Investment” (PRI)
Principles which ensure environmental, social,and corporate governance issues are incorporated
into the decision-making processes of investment

Montréal Carbon Pledge
Initiatives by institutional investors formeasuring and disclosing the greenhouse gas emissions of the equities portfolio they manage

Principles for Financial Action forthe 21st Century Website

Financial Review

Principles to require consideration of environmental and social impacts of large-scale
project-related financings

Initiatives by financial institutions in Japan for
financial action toward a sustainable society

Business and Biodiversity Offset Program(BBOP)
Initiatives to create a common global framework for protection of biodiversity. Mizuho isa member of the BBOP advisory group2016 Integrated Report99Financial Review
Six-Year Major Financial Data (FY2010-2015)
Summary of Consolidated PerformanceConsolidated Gross Profits
Net Interest Income
Fiduciary Income
		 Credit Costs for Trust Accounts
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
General and Administrative Expenses
Consolidated Net Business Profits*
Credit-related Costs
Aggregate Figures for the 2 Banks
Net Gains (Losses) related to Stocks
Net Gains (Losses) on Sales of Stocks
Losses on Impairment (Devaluation) of Stocks
Equity in Income from Investments in Affiliates
Other
Ordinary Profits
Net Extraordinary Gains (Losses)
Income Taxes - Current- Deferred
ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent(billions of ¥)FY2010FY2011FY2012FY2013

FY2014FY20152,025.3
1,109.4
49.3
—
458.8
243.9
163.6
(1,277.8)
741.7(16.6)
16.0(70.5)
25.7(94.4)
(6.1)
(6.1)
588.4
46.9
(18.3)(120.1)496.9(83.7)
413.2

2,003.0
1,088.3
49.0
—
458.9
150.3
256.4
(1,283.8)
719.1
27.7
24.7
(38.1)
15.6(49.3)
2.6(62.9)
648.5
67.8(55.3)(97.4)
563.6(79.1)
484.5

2,171.7
1,075.8
48.5
—
507.3
215.0
324.8
(1,244.6)
912.1(111.8)(114.1)(82.9)
46.6(125.8)(11.1)
29.2
750.3(32.5)(50.4)(7.4)
659.9(99.4)
560.5

2,035.2
1,108.3
52.0
—
560.7
187.4
126.7
(1,258.2)
744.2
112.8
116.6
77.0
81.5
(5.3)
15.4
5.1
987.5
(2.2)
(137.0)(77.9)
770.3(81.9)
688.4

2,247.7
1,129.4
52.6
—
593.3
262.9
209.3
(1,351.6)
876.9
(4.6)
(7.8)
131.9
143.7
(5.3)
15.0
(27.5)
1,010.8(20.2)(260.2)(44.7)
685.6(73.7)
611.9

2,221.6
1,003.6
53.4
—
607.5
310.5
246.4
(1,349.5)
852.8(30.4)(26.7)
205.6
225.3(10.3)
24.2(74.0)
997.5
10.7(213.2)(69.2)
725.7(54.7)
670.9*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
AssetsLoans and Bills Discounted
Securities
Liabilities
Deposits
Negotiable Certificates of Deposit
Net Assets
Total Shareholders’ Equity
		 Retained Earnings
Total Accumulated Other Comprehensive Income
Non-controlling Interests(billions of ¥)FY2010FY2011FY2012FY2013

FY2014FY2015

160,812.0
62,777.7
44,782.0
154,188.0
79,233.99,650.2
6,623.9
4,248.2
1,132.3
80.9
2,292.1

165,360.5
63,800.5
51,392.8
158,491.2
78,811.9
11,824.7
6,869.2
4,762.7
1,405.0
146.6
1,957.6

177,411.0
67,536.8
53,472.3
169,674.8
84,241.9
15,326.7
7,736.2
5,174.6
1,814.7
752.5
1,806.4

175,822.8
69,301.4
43,997.5
167,518.3
89,055.5
12,755.7
8,304.5
5,676.2
2,315.6
781.0
1,844.0

189,684.7
73,415.1
43,278.7
179,884.2
97,757.5
15,694.99,800.5
6,131.1
2,769.3
2,029.9
1,635.5

193,458.5
73,708.8
39,505.9
184,105.3
105,629.0
11,827.5
9,353.2
6,559.9
3,197.6
1,607.8
1,182.6

/
/
15.30
/
177.53
20.47
11.78

/
/
15.50
/
187.19
20.62
11.36

8.16
11.03
/
14.19
229.70
22.96
10.99

8.80
11.35
/
14.36
253.25
28.18
11.65

9.43
11.50
/
14.58
322.86
24.91
8.60

10.50
12.64
/
15.41
322.46
26.94
8.37

Financial Indicators
Common Equity Tier 1 Capital Ratio (Consolidated)
Tier 1 Capital Ratio (Consolidated)
Capital Adequacy Ratio (BIS Standard) (Consolidated)
Total Capital Ratio (Consolidated)
Net Assets per Share (Yen)Profit Attributable to Owners of Parent per Share (Yen)
Net Return on Equity (Consolidated)

100

Mizuho Financial Group(%)

Review and Analysis for Fiscal 2015
Financial and Economic Environment
GDP of Major Countries

Reviewing the economic environment over the fiscal year
a whole continued to recover gradually, weakness in therecovery is seen in some regions. As for the future direction(% change from previous year)(Right scale)
China

15
12

of the economy, although continued recovery is expected,

59particularly in the major industrialized countries, lingering

06concerns over a downturn in China’s economy, trends in re--53source prices and increased geopolitical risk need continued
and careful observation.

-10

0

2010

2011

2012

2013

2014

2015

2016

Source: Prepared by MHRI based on statistics from each country

recovery trend under favorable employment conditions. As
for the future direction of the economy, although steadyrecovery in the economy is expected to continue, concerns

130

130

over an economic downturn in emerging countries and

120

120

110

110

100

100

What We Aim to Do

In the United States, the economy continued to be on a

Who We Are

ended March 31, 2016, although the global economy as(Annual % rate change from previous year)(Left scale)
U.S.
15
U.K.
Euro Zone
10
Japan

the possible effects of movements toward normalization ofmonetary policy require attention.
In Europe, the economies in the United Kingdom and the
speed was slightly reduced. It is expected that the economiesof the region will continue to exhibit the same trend; how-

0

Jan.
2014

0

Jul.
2014

Jan.
2015

Jul.
2015

Jan.
2016

ever, factors such as high unemployment rates, the effect of
the slowdown of the Russian economy and trends in monetary policy still continue to require attention.

WTI Crude Oil Futures(Dollars per Barrel)

150

In the future, although the economies of the region will be

120

supported by the effects of various policies, the Chinese

90

economy is expected to experience slowdown due to down-

60

ward pressure from the adjustment of capital assets. As forthe economies of emerging countries, the situation in which
growth momentum was lacking continued. As for the future3002005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

direction of the economy, partially due to the effects ofSource: Prepared by MHRI based on Bloomberg

currency depreciation and the decline of resource prices, thepace of economic expansion is expected to remain gradual.
In Japan, although exports and production are improving,

1.5
1.2

whole stayed in a temporary lull. As for the future direction

0.9of the economy, the Japanese economy can be expected to

0.6

pick up, supported by factors such as growth in consumer

0.3

spending backed by a recovery in employee compensation

0.0

and increased corporate earnings due to the decline in oil-0.3

prices; however, foreign exchange trends require attention.

Jan.
2010

Jan.
2011

Jan.
2012

Jan.
2013

Jan.
2014

Jan.
2015

Jan.
2016

2016 Integrated Report

Financial Review

consumer spending remained weak and the economy as aFoundations for Our Corporate ValueIn Asia, the slowdown of China’s economy continued.

Our Strategies for Value Creation

Euro area continued to be steady, although the recovery

101

Financial Review

Summary of Consolidated Performance
Historical Data(billions of ¥)FY2008

Consolidated Gross
ProfitConsolidated
Net Business Profit*1

FY2009FY2010FY2011FY2012

1,806.9

1,996.6

2,025.3

2,003.0

2,171.7

622.6

702.6

741.7

719.1

912.1

484.5

413.2

560.5

FY2013

FY20142,035.2

2,247.7

744.2

876.9

688.4

611.9

FY20152,221.6
852.8
670.9

239.4

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

Consolidated(billions of ¥)FY2015FY2014

Change from
FY2014non-consolidated basis decreased by ¥30.3 billion on a yearon-year basis to ¥1,599.3 billion reflecting the downturn of

2,221.6

2,247.7(26.1)

Consolidated Net Business Profits*

852.8

876.9

(24.1)

Credit-related Costs(30.4)(4.6)(25.7)

General and Administrative Expenses of the Two Banks

Consolidated Gross Profits

domestic and overseas economic environments.

Net Gains (Losses) related to Stocks

205.6

131.9

73.7

increased by ¥2.6 billion on a year-on-year basis to ¥910.9

Ordinary Profits

997.5

1,010.8(13.3)

Profit Attributable to Owners of Parent

670.9

611.9

59.0

billion mainly due to a capture of increases in overseas expenses focusing on strategic expenses using strict cost control* Consolidated Gross Profits – G&A Expenses (excluding Non-Recurring Losses) + Equity in
Income from Investments in Affiliates and certain other consolidation adjustments

and the impact of fluctuations in foreign exchange rates.

MHBK+MHTB* (Aggregate figures on a non-consolidated basis)(billions of ¥)increased by ¥19.6 billion on a year-on-year basis to ¥415.2

FY2015Gross Profits
G&A Expenses(excluding Non-Recurring Losses)
Net Business Profits
Credit-related Costs

FY2014

Change from
FY2014

Net Operating Revenues of MHSC on a consolidated basis
billion mainly due to increases in commissions regarding
underwriting and sale of stocks and bonds.

1,599.3

1,629.7(30.3)(910.9)(908.3)(2.6)¥24.1 billion on a year-on-year basis to ¥852.8 billion.

688.4

721.3

(32.9)(26.7)(7.8)(18.9)

Profit Attributable to Owners of Parent

Net Gains (Losses) related to Stocks

181.4

96.1

85.2

Ordinary Profits

762.9

754.4

8.4

Net Income

530.6

480.4

50.2

*the Two Banks

As a result, Consolidated Net Business Profits decreased byConsolidated Credit-related Costs amounted to ¥30.4 billion.
Consolidated Net Gains (Losses) related to Stocks increasedby ¥73.7 billion on a year-on-year basis to net gains of ¥205.6
billion due to the progress in cross-shareholding disposal.

MHSC (Consolidated)

(billions of ¥)FY2015FY2014

Change from
FY2014

Profit Attributable to Owners of Parent of MHSC for fiscal
2015 increased by ¥2.5 billion on a year-on-year basis to

Net Operating Revenues

415.2

395.5

19.6

¥61.1 billion due to the increase in net operating revenues

SG & A Expenses(329.6)(311.1)(18.4)and extraordinary gain in relation to indemnity receipt from

Ordinary Income

85.4

86.4

(1.0)

61.1

58.6

2.5

the erroneous stock order.

Profit Attributable to Owners of Parent

Consolidated Net Business Profits
We recorded Consolidated Gross Profits of ¥2,221.6 billion for fiscal 2015, decreasing by ¥26.1 billion from the previous fiscal year.
102

Gross Profits of aggregate figures for the Two Banks on a

Mizuho Financial GroupAs a result, Profit Attributable to Owners of Parent for
fiscal 2015 increased by ¥59.0 billion on a year-on-year basis
to ¥670.9 billion. This result shows a 106% achievement
against the earnings plan for fiscal 2015 of ¥630.0 billion.

Review and Analysis for Fiscal 2015

Summary of Consolidated Balance Sheet
Consolidated(billions of ¥)Change fromMarch 31, 2015

Assets

193,458.5

189,684.7

3,773.8

Securities
		Japanese Government
Bonds
		Japanese Local
Government Bonds
		Japanese Corporate Bonds
and Short-term Bonds
		Japanese Stocks

39,505.9

43,278.7(3,772.7)

19,525.9

21,775.9(2,250.0)

240.6

238.5

2.0

Securities
Securities were ¥39,505.9 billion, decreasing by ¥3,772.7
billion from the end of the previous fiscal year due to adecrease in JGBs.
JGB Balance (MHBK+MHTB)*1(trillions of ¥)(Acquisition cost basis)
Medium- and Long-term Bonds*2
Floating-rate Notes
Treasury Discount Bills

40

2,674.1

193.8

4,500.7(602.0)		Other

12,972.6

14,089.2(1,116.6)

Loans and Bills Discounted		Loans(MHBK+MHTB, banking
account+trust account)
		 Domestic Total				Loans to SMEs andIndividual Customers				(Housing loans forowner’s residential
housing)
		 Overseas Total

73,708.8

73,415.1

293.7

74,751.6

74,927.4(175.7)

30.6

30

9.0

20

1.5

10

20.0

0

21.8
5.2
1.1

17.2

15.4

2.6
0.7

15.6 0.5
0.6

13.8

14.4

56,467.2(936.7)32,780.3

32,575.7

204.5

9,949.7

10,263.0(313.2)

19,221.1

18,460.1

761.0

Liabilities

184,105.3

179,884.2

4,221.1

Deposits
		Domestic Deposits(MHBK+MHTB)		Individual Deposits

105,629.0

97,757.5

7,871.5

88,071.3

81,852.3

6,219.0

40,241.2

39,486.5

754.7

40,695.0

36,528.0

4,167.0

7,135.0

5,837.7

1,297.3

11,827.5

15,694.9(3,867.3)

15

Net Assets

9,353.2

9,800.5(447.2)0Total Shareholders’ Equity
		Common Stock andPreferred Stock		 Capital Surplus

6,559.9

6,131.1

428.7

2,255.7

2,255.4

0.3

1,110.1

1,110.0

0.1

		 Retained Earnings

3,197.6

2,769.3

428.2

(3.6)

(3.6)

0

1,607.8

2,029.9(422.1)

Disposed Amount in FY2015(Amount Sold*)

1,296.0

1,737.3(441.3)* Managerial basis (MHBK, MHTB and MHSC)

165.2

26.6

138.6

148.4

146.4

2.0

(53.6)(40.4)(13.2)

51.7

160.0

(108.2)

2.7

3.8

(1.0)

1,182.6

1,635.5(452.9)

		Corporate Deposits		
Financial/Government
Institutions
Negotiable Certificates of
DepositNon-controlling Interests

Japanese Stocks (Consolidated)*1(billions of ¥)2,065.9(Acquisition cost basis) (%)
Japanese Stocks
Ratio of Acquisition Cost against Tier1 Capital*2 60

2,003.8

1,962.9

1,847.14530*1. Other securities which have readily determinable
fair values*2. Basel III phase-in base (incl. Eleventh Series ClassXI Preferred Stock in CET1 Capital), hedging effects
are included in and after Mar. 2014

Disposing of Cross-shareholdings (Consolidated)¥115.7 billion(¥109.0 billion)

Financial Review

		 Treasury StockTotal Accumulated Other
Comprehensive Income		Net Unrealized Gains(Losses) on Other
Securities
		Deferred Gains or Losses
on Hedges
		Revaluation Reserve forLand		Foreign Currency
Translation Adjustments
		Remeasurements ofDefined Benefit Plans
Stock Acquisition Rights

Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016
Average Remaining Period*3
2.5 years
2.4 years
2.6 years
2.5 years*1. Other securities which have readily determinable fair values*2. Including bonds with remaining period of one year or less
*3. Excluding Floating-rate Notes

Foundations for Our Corporate Value

55,530.4

Our Strategies for Value Creation

2,867.9
3,898.7

What We Aim to Do

March 31,
2015

Who We Are

March 31,20162016 Integrated Report103Financial Review

Loans

Total Net Assets

The combined total of loans for the two banks was

Net Assets amounted to ¥9,353.2 billion, decreasing by¥74,751.6 billion, a decrease of ¥175.7 billion from FY2014.

¥447.2 billion from the end of the previous fiscal year due to

While the balance of domestic loans to large, medium andincrease in Retained Earnings by recording Profit Attributablesmall businesses increased due to accurate assessment of

to Owners of Parent and decrease in Non-controlling Interests

demand, that of government and personal loans decreased,

and Net Unrealized Gains (Losses) on Other Securities.

resulting in an overall decrease of ¥936.7 billion (including achange of ¥1,235 billion in government loans). Our overseas
loan balance (including loans booked offshore) increased by

Non-Performing Loans (NPL)¥761 billion, with a particularly marked increase in loans to

The combined NPL balance of the two banks was ¥820.1

non-Japanese customers in the United States.

billion, a decrease of ¥182 billion from FY2014, while theLoan Balance (MHBK + MHTB, banking account + trust account)(trillions of ¥)80

Domestic Loan Balance

60

74.9

70.9

68.1

Overseas Loan Balance

We maintained a good credit portfolio, with both the NPL
balance and ratio remaining stable in a low position.

74.7

11.4

13.8

18.4

19.2

56.7

57.1

56.4

55.5

40

Disclosed Claims under the FRA*(MHBK + MHTB, banking account + trust account)Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016

1.5

1.2

1.71

Deposits
0

The combined domestic deposits of the two banks increasedby ¥6,219 billion from FY2014 due to factors such as anincrease in corporate deposits.

74.4

77.0

81.8

88.0

75

5.2

5.1

5.8

50

31.4

33.3

36.5

37.7

38.5

25

39.4

1.21

2
1.00 1

1.20

Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016

0

*Financial Reconstruction Act

Individual
Corporate
Financial/Government institutions

100

0.8

Disclosed Claims under the FRA(MHBK + MHTB, banking account + trust account)

Domestic Deposits (MHBK + MHTB)(trillions of ¥)

3

1.0

0.9

1.0

0.5

0

Claims for Special Attention(%)
Claims with Collection Risk
Claims against Bankrupt and Substantially 4
Bankrupt Obligors
NPL Ratio(trillions of ¥)20
0

NPL ratio decreased by 0.20 points from FY2014 to 1.00%.

(billions of ¥)March 31,2016

March 31,2015

Change fromMarch 31, 2015

11.3

7.1

Claims against Bankrupt andSubstantially Bankrupt Obligors

68.0

56.6

40.6

Claims with Collection Risk

353.6

402.5

(48.8)

Claims for Special Attention

398.4

542.9

(144.5)

40.2

Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016

	Subtotal

820.1

1,002.1(182.0)Normal claims

81,009.0

82,041.0(1,031.9)

Total
NPL Ratio

81,829.2

83,043.1(1,213.9)

1.00%

1.20%

(0.20%)BIS Capital
BIS Capital

Risk Assets

The common equity Tier 1 capital was ¥6,566.4 billion, an

The risk-weighted assets were ¥62,531.1 billion, a decrease

increase of ¥413.3 billion from FY2014, due to the increaseof ¥2,660.7 billion from FY2014, due to a decrease in credit

in Retained Earnings by recording Profit Attributable torisk related assets and market risk equivalent amounts.

Owners of Parent.
104

Mizuho Financial Group

Review and Analysis for Fiscal 2015

BIS Capital Ratio

Mizuho continues to perform disciplined capital manage-

The common equity Tier 1 ratio increased by 1.07 % fromstrengthening of stable capital base and steady returns toshareholders.
In our new medium-term business plan starting fromBIS Capital Ratio (Consolidated)

FY2016, we aim to achieve a common equity Tier 1 capital

March 31,2016

March 31,2015

Change fromMarch 31, 2015

6,566.4

6,153.1

413.3

6,460.3

5,917.1

543.1

1,338.6

1,347.2(8.6)

We will develop a resilient financial base that is able to

300.0

—

300.0

withstand changes in a competitive environment by further

1,144.0

1,458.1(314.1)

1,733.5

2,008.1(274.5)

493.5

330.4

163.1

962.9

1,108.8(145.8)

ratio of approximately 10% by the end of the final year
(FY2018) (fully-effective basis* (based on current regulations), excluding Net Unrealized Gains on Other Securities),and enhance resilience to external environment stress.

improving profitability, and implementing measures to improve efficiency, quality and reduction of costs.
*Calculated on a Basel III fully-effective basis at the end of fiscal 2018.

Tier 2 capital instruments	Eligible Tier 2 capital
instruments subject tophase-out arrangements
Total Capital

9,638.6

9,508.4

130.1

Risk-weighted Assets

62,531.1

65,191.9(2,660.7)

Credit Risk Assets

57,588.4

58,602.7(1,014.3)

fiscal 2014, we have implemented a steady dividend payout

1,696.0

3,473.8(1,777.7)

policy setting a dividend payout ratio on a consolidated basis

3,246.6

3,115.3

131.3

15.41%

14.58%

0.83%

12.64%

11.50%

1.14%¥3.75 for year-end dividends) for the fiscal year ended March

10.50%

9.43%

1.07%

31, 2016. We also made cash dividend payments on Eleventh

Dividend Policy
As a new policy to return profits to shareholders, starting fromof approximately 30% as a guide for our consideration.
Based on this policy, we made cash dividend paymentson common stock of ¥7.50 (¥3.75 for interim dividends andSeries Class XI for the fiscal year ended March 31, 2016 as

Status of Capital Adequacy

Cash Dividend per Share of Common Stock

The total capital ratio, Tier 1 capital ratio and common equity(¥)

Tier 1 capital ratio at the end of March 2016 were 15.41%,

8

12.64% and 10.50%, respectively.

6

20

Common Equity Tier 1 Capital Ratio (Consolidated)
Tier 1 Capital Ratio (Consolidated)
Total Capital Ratio (Consolidated)

15

14.58

10

14.36

11.50
9.43

Mar. 31, 2014

Mar. 31, 2015

7.5

7.5

15.41

FY2014FY2015

12.64
10.50

30%

28%

2
0

FY2012FY2013

Dividend Payout Ratio
26%

23%

Financial Review

11.35
8.80

6.5

4

BIS Capital Ratio
(%)

6.0

5
0

Foundations for Our Corporate Value

prescribed.

Our Strategies for Value Creation

Market Risk Equivalent Assets
	Operational Risk Equivalent
AssetsTotal Capital Ratio(Consolidated)
Tier 1 Capital Ratio(Consolidated)
Common Equity Tier 1
Capital Ratio (Consolidated)

What We Aim to Do

Common Equity Tier 1
Capital (CET1)
	
Capital Stock, Surplus andRetained Earnings
Additional Tier 1 Capital	
Additional Tier 1 capital
instruments	Eligible Tier 1 capital
instruments subject tophase-out arrangements
Tier 2 Capital(billions of ¥)Who We Are

FY2014 to 10.50%.

ment policy which maintains the optimum balance between

Mar. 31, 20162016 Integrated Report105Company Information
Office Network
We utilize our office network, which covers every prefecture in Japan as well as major overseas cities, to respond to our customers’
diversified and globalizing financial needs while supporting the smooth progress of economic activities.

106

Mizuho Financial Group MHBK received approval from the financial authority in Mexico toestablish a full service banking institution in December 2015, andis making preparations to open the office in fiscal 2016.

2016 Integrated Report107Company Information

Group Companies (As of March 31, 2016, except for each company’s network, which is as of June 30, 2016)
Mizuho BankMHBK is a leading bank with one of the largest customer basein Japan and a network encompassing Japan and financial andbusiness centers around the world. Under the Group’s new
medium-term business plan entitled Progressive Developmentof “One MIZUHO”: The Path to a Financial Services Consulting
Group, MHBK is strengthening its collaboration amongbanking, trust banking and securities functions as well as
asset management and think tank services, in order to offer
the best financial solutions to a wide range of customers in atimely manner by bringing together the Group’s comprehensive
strengths and demonstrate its consulting capability.
The business environment for financial institutions is at aturning point due to fast-moving trends toward tightening global
financial regulations, the introduction of negative interest rate
policy, and rapid technological innovation, more than at any
time before. Amid this environment, we are working to create
new financial products and services with flexibility that respondto the diversified needs of our customers, increase customer
convenience and bring them greater satisfaction.

Nobuhide Hayashi
President & CEO
Mizuho Bank, Ltd.

For individual customers, MHBK is increasing joint branches
that can offer banking, trust banking, and securities services
seamlessly, and also develop next-generation branches that canoffer cutting-edge financial services. In addition, we are looking
to the next generation of services through smartphones etc.,
making use of Fintech that combine financial with informationand communications technology (ICT). For business owners, weare putting increasing emphasis on providing support for their
growth strategies and business succession with regard to both
corporations and owners.
For corporate customers, MHBK is strengthening its functions
to provide funds to customers, using its sophisticated risk-taking
capabilities, and to offer specialized and unique solutions taking
advantage of its industry expertise and product development
abilities. In addition, we are providing support for customers toextend their businesses overseas through our global network,
while also working to build long-term and multi-faceted
relationships with global corporations around the world.
MHBK will continue to fully implement its “customer
first” principle (customer-focused perspective). Each memberof management and all staff will maintain his or her efforts
to strengthen our capabilities for constantly developing andimplementing new approaches to help customers overcome andresolve the challenges they face, which we as MHBK refer to as“frontline capabilities.” In these ways, we are doing our utmost
to support our customers to help them realize their dreams byproviding the highest quality services and realize our goal ofbeing their “most trusted bank.”

The Yaesuguchi Branch in central Tokyo is an
example of Mizuho’s next-generation branches

Date of Establishment:

July 1, 2013

Capital:¥1,404.0 billion

Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan
Tel: +81-(0)3-3214-1111
Representative:

Nobuhide Hayashi, President & CEO

Number of Employees:

27,355

Domestic Network:

Head Office and Branches: 421
Sub-branches: 41

Overseas Network:

Representative Offices: 6 Subsidiaries: 39
Website:108

Mizuho Financial Group

Branches: 25 Relevant Offices: 17
http://www.mizuhobank.com/index.html

Mizuho Trust & Banking
MHTB, under the Group’s new medium-term business plan
entitled Progressive Development of “One MIZUHO”: The
Path to a Financial Services Consulting Group, offers highly
professional trust banking products and services that meet theincreasingly diversified and sophisticated needs of all of Mizuho’s
customers. At the same time, MHTB is continuing to strengthen its
comprehensive consulting capabilities.
For individual customers, against a background of thedeclining birthrate and aging of the population in Japan, andtheir growing interests in inheritance and asset succession,
we are working to develop products that meet their needs,
such as testamentary trusts, Qualified educational fund giving
trusts, and Annual fund giving trusts. Going forward, MHTB
will endeavor to continue to develop new trust products
and services. Moreover, in order to increase convenience forcustomers, we offer such products at branches of MHBK and
MHSC, strengthen capabilities to respond to customer needs ofinheritance consultants who are assigned to all MHBK branches,and make various other efforts to leverage group capabilities
in an integrated and seamless manner to meet a wide range ofcustomers’ inheritance and asset succession needs. Regarding
corporate owners’ business succession needs, we work in close
collaboration with MHBK to provide consulting functions thatmake full use of our high level of trust-related expertise.

Takeo Nakano
President & CEO
Mizuho Trust & Banking Co., Ltd.

For corporate customers, we provide solutions to address
customer needs in the areas of real estate, securitization, stocktransfer agency business, and pensions by drawing on our highly
professional trust-related consulting capabilities.
In the asset management business, we will collaborate with
Asset Management One, which is to be newly established, andendeavor to develop and offer cutting-edge products to meetcustomer needs.
Looking ahead, we will work to take the “One MIZUHOStrategy” to the next level and place thoroughgoing emphasis
on our “customer first” principle (customer-focused perspective).
As customer needs for trust-related services continue to grow,we will enhance our trust banking expertise and substantiallystrengthen our comprehensive consulting capabilities to become“the most reliable trust and banking company.”

Trust Lounges: Lounges for Inheritance andTestamentary Consultation

Date of Establishment:

March 12, 2003

Capital:¥247.3 billion

Location of Head Office: 1-2-1, Yaesu, Chuo-ku, Tokyo
103-8670, Japan
Tel: +81-(0)3-3278-8111
Representative:

Takeo Nakano, President & CEO

Number of Employees:

3,240

Domestic Network:

Head Office and Branches: 36
Sub-branches: 19 (Trust Lounges: 18)

Overseas Network:

Subsidiaries: 2

Website:http://www. mizuho-tb.co.jp/english/index.html

2016 Integrated Report109Company Information

Mizuho Securities
In aiming to offer sophisticated value-added securities services
which resonate with customers, MHSC pursues “One MIZUHOStrategy” which brings together banking, trust banking andsecurities functions under one umbrella to provide products andservices of the highest quality to meet the diversified financial
needs of our customers.
For individual customers, we offer a wide range of financial
products as well as high-quality investment information
through our domestic branch network, which is the largest in
the industry, the Internet, and our call center. We are boldlytransforming our marketing approach and are concentrating
on a more customer-focused approach with the objective ofcontributing to individual customers’ asset building in themedium-to-long term. In addition, for the Group to work
together to enhance services, we are promoting the openingof joint branches among MHBK, MHTB and MHSC to offer our
products and services to customers of MHBK and MHTB who
have securities-related needs. At all our branches, we offer bankagency services for MHBK, including proposals for openingbank accounts. In addition, all our branches are trust agents of
MHTB that can handle testamentary-related services, Qualified
educational fund giving trusts and other trust-related matters.
We are accelerating these initiatives to fully leverage Mizuho’s
unique strengths.
To meet our corporate customers’ needs in equity andbond underwriting, M&A advisory, structured finance and otherinvestment banking solutions, we have established a frameworkfor offering highly professional proposals and services (whichcater to our customers’ diverse financial needs) based on our
experience and know-how backed by our extensive track record.
Moreover, our Research Department has a large number of highranking analysts, and, through the collaboration of our global
sales and trading structures covering Tokyo, London, New Yorkand Hong Kong, we are able to offer top-quality investment
products and investment information and, thereby, respondeffectively to customers’ investment strategies.
Serving as the only comprehensive securities company able
to offer all the advantages of a “financial services consulting
group,” each and every employee at MHSC is dedicated toenhancing their individual strengths and quality, and we willcontinue to build on the success we have achieved thus far
thanks to your continued support.

Tatsufumi Sakai
President & CEO
Mizuho Securities Co., Ltd.

MHSC offers a wide range of research reports

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
Tel: +81-(0)3-5208-3210
Representative:

Tatsufumi Sakai, President & CEO(Appointed on April 1, 2016)

Number of Employees:

6,994

Domestic Network:

Tokyo Head Office andregional head offices: 3
Branches: 104
Planet Booths: 166
Financial Advisors Sales Department: 1

Overseas Network:

Representative Offices: 2
Subsidiaries: 22

Website:110

Mizuho Financial Group

http://www.mizuho-sc.com/english/index.html

Group Companies

Trust & Custody Services Bank (TCSB)

Mizuho Asset Management (MHAM)As Mizuho’s trust bank specializing in asset administration, TCSB willcontinue to provide high-quality, high-value-added trust and custody
services to customers including large institutional investors. As of
March 31, 2016, the balance of assets under custody and administration exceeded ¥380 trillion, one of the largest scale in Japan.

MHAM’s core businesses are investment trust business, mainly for
individuals and financial institutions, and investment advisory business,principally for public and private pensions, financial institutions andcorporations. MHAM’s asset management products and services covera wide range from equities and bonds to alternative investments.

Date of Establishment:

January 22, 2001

Date of Establishment:

July 1, 2007

Capital:¥50,000 million

Capital:¥2,045 million

Location of Head Office: Tower Z, Harumi Triton Square, 1-8-12,
		Harumi, Chuo-ku, Tokyo

Location of Head Office: 3-5-27, Mita, Minato-ku, Tokyo
Representative:

Hidetake Nakamura, President & CEO

Representative:

Akira Moriwaki, President & CEO

Number of Employees:

236

Number of Employees:

631

Website:http://www.mizuho-am.co.jp/english

Website:http://www.tcsb.co.jp/english/index.php

DIAM

Mizuho Research Institute (MHRI)

DIAM is an asset management company in which The Dai–ichi Life
Insurance and Mizuho both have equity holdings. DIAM collaborates
with its offices in Europe, the United States and Asia to offer
investment trust products to individuals and corporate customers, aswell as provide investment advisory services to customers including
Japanese and overseas pension funds.
Date of Establishment:

October 1, 1999

MHRI is one of Japan’s leading think tanks, with a research division,
consulting division and unique corporate membership services.
MHRI uses its excellent analytical skills and the organization’s
network in Japan and overseas to provide macroeconomic information, policy recommendations and consulting services to solve thespecific issues of the national government, local governments andprivate companies.

Capital:¥2,000 million

Date of Establishment:

October 1, 2002

Location of Head Office:		

New Tokyo Building 5th Floor, 3-3-1,
Marunouchi, Chiyoda-ku, Tokyo

Capital:¥900 million

Representative:

Yasumasa Nishi, President & CEO

Representative:

Number of Employees:

436

Number of Employees:

288

Website:http://www.mizuho-ri.co.jp/english/index.html

Overseas Network Subsidiaries: 4
Website:Location of Head Office: 1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Mitsuaki Tsuchiya, President & CEO

http://www.diam.co.jp/english/

Mizuho Information & Research Institute (MHIR)

Mizuho Private Wealth Management (MHPW)

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

MHPW offers consulting services tailored to the needs of its customers.
These services range from consulting on customers’ financial matterssuch as wealth management, arranging for business inheritance toadvice on customers’ individual matters, including health of the customers themselves as well as family members and children’s education.

Date of Establishment:

October 1, 2004

Date of Establishment:

October 3, 2005

Capital:¥1,627 million

Capital:¥500 million

Location of Head Office: 2-3 Kanda-Nishikicho, Chiyoda-ku, Tokyo

Location of Head Office: 1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo

Representative:

Junichi Nishizawa, President & CEO

Representative:

Takeru Watanabe, President

Number of Employees:

4,316

Number of Employees:

34

Website:http://www.mizuho-ir.co.jp/english/index.html

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 fromoutside each company. This figure also includes overseas local staff but excludes executive officers and temporary employees.
		 3. Overseas subsidiaries include head offices, branches and representative offices of subsidiaries.
		 4. In July 2016, DIAM, the asset management function of MHTB, MHAM and Shinko Asset Management entered into a definitive integration agreement.
The effective date of integration will be October 1, 2016, subject to certain conditions precedent, and the name of the new company will be “AssetManagement One.”2016 Integrated Report111Company Information

Corporate Profile (As of March 31, 2016)
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
Tel. +81-(0)3-5224-1111
Representative:

Yasuhiro Sato, President & Group CEO

Capital:¥2,255.7 billion

Issued Shares:

25,945,277,657 shares
Common Stock: 25,030,525,657 shares
Preferred Stock:914,752,000 shares

Number of Employees: 1,318(Total number of employees on a consolidated
basis: 56,375)

Date of Establishment: January 8, 2003

Rating Information(As of June 30, 2016)

R&I

JCR

Moody’s

S&P

Fitch

* Credit ratings for MTN programme (Joint Medium-term Note Programme with Mizuho International and Mizuho Securities USA, based on keep well agreementwith MHFG and MHBK)

112

Mizuho Financial GroupAppendix

2016 Integrated Report113Compliance Contacts“Internal Controls and Audit Hotline”—A system designed for obtaining concerns regarding questionable accounting or auditing matters—
Reporting Items: MHFG has established a hotline to receive
reports from in and outside the company

ing items, MHFG will do reasonable efforts to investigate

in connection with problems concerning

the facts behind the information received and report backinternal controls and audits of accounts andon the results.

financial reports.
Contact Point:		• Anonymous tips are also acceptable, but there are cases

This hotline has been established within an

where it will not be possible to fully satisfy the intentions

external law office. Please use conventional

behind such tips owing to constraints on investigations andmail or e-mail for reporting.

the inability to report back.

Conventional mail:			

12th Floor, Kasumigaseki Bldg.,

			Kasumigaseki 3-2-5, Chiyoda-ku,

			Tokyo 100-6012

		Mizuho Accounting Hotline, c/o Daiichi

			Fuyo Law Office		• When reported matters are within the scope of the report-• Information on persons making such reports is not disclosed to third parties other than the group companies
except in cases where the assent of the person in question
has been obtained or such disclosure is required under laws
and ordinances, etc.

E-mail: kaikei-mizuho@daiichifuyo.gr.jp

Approaches to the Financial Alternative Dispute Resolution (ADR) System
In order to deal expeditiously, fairly and appropriately withThe Designated Dispute Resolution Institution ascomplaints, etc., from customers, MHBK and MHTB have

Defined in Japan’s Banking Act which MHBK and MHTB

concluded the basic contract for the implementation ofConcluded the Basic Contract withdispute resolution procedures with the Japanese Bankers

The Designated Dispute Resolution Institution:

Association, which is a designated dispute resolution institu-

		tion as defined in Japan’s Banking Act. MHTB has also con-

Contact: Advisory Center of the Japanese Bankers Association

cluded the basic contract for the implementation of dispute		the Japanese Bankers Association
Tel.: +81-(0)3-5252-3772

resolution procedures with the Trust Companies Associationof Japan, which is a designated dispute resolution institu-

The Designated Dispute Resolution Institution as Definedtion as defined in Japan’s Trust Business Act and Act on

in Japan’s Trust Business Act and Act on Concurrent

Concurrent Operation, etc. of Trust Business by Financial

Operation, etc. of Trust Business by Financial Institutions

Institutions.

which MHTB Concluded the Basic Contract withThe designated dispute resolution institution takes the

The Designated Dispute Resolution Institution:

steps toward resolution from a fair and neutral perspective in		cases where the solutions to customers’ complaints adopted

Contact: Trust Consultation Center of the Trust Companies

by the two banks are not accepted.

Association of Japan
		

114

Mizuho Financial Group

Trust Companies Association of Japan

Tel.: +81-(0)3-6206-3988

Risk Management Structure
Commitment to Risk Management
Basic Approach
Amid the growing diversity and complexity of banking op-

Risk Management Structure

erations, financial institutions are exposed to various risks,
including credit, market operations, information technology,
legal, settlement and other risks. We recognize the conducting of operations tailored to the risks and managing suchrisks as a key issue relating to overall management. In orderto implement our business strategy while maintaining ourfinancial stability, we maintain comprehensive risk management and control measures.
MHFG maintains basic policies for risk management
established by its Board of Directors that are applicable to theentire group. These policies clearly define the kinds of risks
to be managed, set forth the organizational structure andprovide 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 therisk management structure. In line with these basic policies,
we maintain various measures to strengthen and enhance
the sophistication of our risk management system.

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management
measures for its business based on the size and nature of
its risk exposures, while MHFG controls risk management
for the Group as a whole. At MHFG, the Risk Management
Committee chaired by the Group Chief Risk Officer (GroupCRO) provides integrated monitoring and managementof the overall risk for the Group. The Group CRO reports
the risk management situation to the Board of Directors,
the Audit Committee, the Risk Committee, the Executive
Management Committee and the President & Group CEO,on a regular basis and as needed. MHFG regularly receives
reports and applications concerning the risk management
situation from our core group companies and gives them appropriate instructions concerning risk management. Our coregroup companies each maintains its own system for managing various types of risk, regularly receiving reports on thestatus of risk at their respective subsidiaries, and gives themappropriate instructions concerning risk management.

2016 Integrated Report115

Approach to the Basel Regulatory Framework
Basel III Framework, the regulations for international standards

Financial Stability Board in November 2015, and the stricterof the health of banks, is being phased in from 2013, which

capital requirements began to be phased in from March 31,

consists of minimum capital requirements, a leverage ratio

2016.

and a global liquidity standard. Basel III is based on the BaselA leverage ratio also has been implemented under “Pillar 3”

II framework which requires the observance of “three pillars.”from March 31, 2015 and we began disclosing it accordingly.

“Pillar 1” is minimum requirements relating to risk which

Also a global liquidity standard has been implemented undershould be maintained by banks. “Pillar 2” is the self-disci-“Pillar 1” from March 31, 2015 in Japan, and we have been cal-plined risk management by financial institutions with a super-

culating our liquidity coverage ratio pursuant to such standard.

visory review process. “Pillar 3” is market discipline allowing
for assessment by the market through appropriate disclosure.
We have been calculating our capital adequacy ratios byapplying the Advanced Internal Ratings Based approach forthe calculation of credit risk from March 31, 2009 and theAdvanced Measurement Approach for the calculation of operational risk from September 30, 2009. In Japan, from March
31, 2013, the minimum capital requirements based on Basel III
began to be phased in, and we have been calculating capital
adequacy ratios based on the revisions to capital adequacy
guidelines published by the Financial Services Agency. The Basel Committee continues to review the treatments related tocapital requirements. We will comply with new requirements
appropriately. We have been identified as a G-SIB by the

Glossary Advanced Internal Ratings Based (AIRB) Approach	
AIRB is one of the calculation methods for credit risk assets
provided for by Basel II. Under AIRB, both probability of default
and loss given default used for calculation of credit risk assets
are estimated by the bank’s own internal experiences.
 Advanced Measurement Approach (AMA)	
AMA is one of the calculation methods for operational risk
assets provided for by Basel II. AMA is a risk asset calculation
method based on statistics that not only utilizes data frominternal losses experienced by the company, but also utilizes
scenario data to calculate the impact of events that may be
experienced in the future.

General Concept of Risk Management
Basic Approach
We classify our risk exposures according to the various kinds

are managerially acceptable in both qualitative and quantita-

of risk, including credit risk, market risk, liquidity risk andtive terms. In line with the basic policies relating to overall

operational risk, and manage each type of risk according torisk management laid down by MHFG, companies within

its characteristics. In addition to managing each type of risk

the Group identify risk broadly and take a proactive andindividually, we have established a risk management structuresophisticated approach to risk management, including meth-

to identify and evaluate overall risk and, where necessary, toodologies for operations that involve exposures to multiple

devise appropriate responses to keep risk within limits thatcategories of risk such as settlement and trust businesses.

Risk Capital Allocation
We endeavor to obtain a clear grasp of the Group’s overallrisk within managerially acceptable limits by working torisk exposure and have implemented measures to keep such

ensure that the overall risk we hold on a consolidated basis

risks within the Group’s financial base in accordance with thedoes not exceed shareholders’ equity and other measuresrisk capital allocation framework.

of financial strength. To ensure the ongoing financial healthMore specifically, we allocate risk capital to our core group116of the Group, we regularly monitor the manner in which

companies, including their respective subsidiaries, to control

risk capital is being used in order to obtain a proper grasp

risk within the limits set for each company. We also controlof the risk profile within this framework. Reports are alsoMizuho Financial GroupRisk Management Structure

submitted to the Board of Directors and other committees

allocated within their respective business units based onof each company. Risk capital is allocated to MHBK, MHTB,

established frameworks.

MHSC and Mizuho Americas by risk category, and is further

As part of our risk capital allocation management, we create multiple risk scenarios common to the Group, based on
which we and our core group companies calculate potential
losses and risk amount arising from assumed stress events
across all risk types. The calculated losses and risk amount

Assessment of Balance between Risk under Stressed
Condition and Capital
1.
Developmentof Stress
Scenarios• Current economic conditions, economic outlook, etc.
• Occurrence of historical stress events, etc.

2.
Measurementof Impacts ofStress Events

Measure the impacts of stress events on the Group
based on the stress scenarios created[Key items to be calculated]
Losses, VaR, etc.

3.
Analysis andUtilization ofStressTest Results

Utilize stress test results for internal capital
adequacy assessments, etc.

Create multiple risk scenarios common to the Groupare used for assessing internal capital adequacy and verifying
whether they balance with the Group’s capital.
The risk scenarios for stress testing are formulated bytaking into account the current economic conditions and theeconomic outlook and by assuming historical stress events,
etc. from a risk management perspective to measure theimpacts of stress events by scenario.

2016 Integrated Report117Credit Risk Management
Basic Approach
We define credit risk as the Group’s exposure to the risk offirst approach is “credit management,” in which we manage

losses that may be incurred due to a decline in, or total loss

the process for each individual transaction and individualof, the value of assets (including off-balance-sheet instru-

obligor from execution until collection, based on our as-

ments), as a result of deterioration in obligors’ financial

sessment of the credit quality of the customer. Through thisposition. We have established the methods and structures

process, we curb losses in the case of a credit event. The

necessary for grasping and managing credit risk.

second is “credit portfolio management,” in which we utilize

MHFG manages credit risk for the Group as a whole. Morestatistical methods to assess the potential for losses related to

specifically, we have adopted two different but mutuallycredit risk. Through this process, we identify credit risks andcomplementary approaches in credit risk management. The

respond appropriately.

Credit Risk Management Structure
Credit Risk Management of MHFG

The respective business policy committees of MHBK and

Our Board of Directors determines the Group’s basic matters

MHTB (the two banks) are responsible for discussing andpertaining to credit risk management. In addition, the Risk

coordinating overall management of their individual credit

Management Committee of MHFG discusses and coordinates

portfolios and transaction policies toward obligors. The Chief

matters relating to basic policies and operations in connec-

Risk Officer of each bank is responsible for matters relatingtion with credit risk management and matters relating toto planning and implementing credit risk management. The

credit risk monitoring for the Group. Under the control ofcredit risk management department of each bank is respon-the Group CRO of MHFG, the Risk Management Department

sible for planning and administering credit risk management

and the Credit Risk Management Department jointly monitor,and conducting credit risk measuring and monitoring, andanalyze and submit suggestions concerning credit risk andsuch department regularly presents reports regarding its risk

formulate and execute plans in connection with basic mattersmanagement situation to MHFG. Each credit department

pertaining to credit risk management.

determines policies and approves/disapproves individualtransactions in terms of credit review, credit management

Credit Risk Management at Our Core Group Companies

and collection from customers in accordance with the lines of

Our core group companies manage their credit risk according toauthority set forth by each bank. In addition, each bank has

the scale and nature of their exposures in line with basic policies

established internal audit groups that are independent of theset forth by MHFG. The Board of Directors of each company

business departments in order to ensure appropriate credit

determines key matters pertaining to credit risk management.

risk management.

Individual Credit Management
Credit Codes

Internal Rating System

The basic code of conduct for all of our officers and employ-

One of the most important elements of the risk manage-

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

ment infrastructure of the two banks is the use of an internal

code. Seeking to fulfill the bank’s public and social role,

rating system that consists of credit ratings and pool alloca-

our basic policy for credit business is determined in light oftions. Credit ratings consist of obligor ratings which represent

fundamental principles focusing on public welfare, safety,

the level of credit risk of the obligor, and transaction ratings

growth and profitability.

which represent the possibility of ultimately incurring losses
related to each individual claim by taking into consideration

118

Mizuho Financial GroupRisk Management Structure

the nature of any collateral or guarantee and the seniority

obligor classifications and are an integral part of the processof the claim. In principle, obligor ratings apply to all obligors

for determining the reserves for loan losses and write-offs

and are subject to regular reviews at least once a year toin our self-assessment of loans and off-balance-sheet instru-

reflect promptly the fiscal period end financial results of thements (please refer to Connection between Obligor Ratings,

obligors, as well as special reviews as required whenever the

Definition of Obligor Classifications of Self-Assessments,

obligor’s credit standing changes. This enables the two banks

Claims Disclosed under the FRA and Non-Accrual, Past Due &to monitor both individual obligors and the status of the

Restructured Loans).

overall portfolio in a timely fashion. Because we consider ob-

Pool allocations are applied to small claims that are lessligor ratings to be an initial phase of the self-assessment pro-than a specified amount by pooling customers and claims

cess regarding the quality of our loans and off-balance-sheetwith similar risk characteristics and assessing and managing

instruments, such obligor ratings are closely linked to thethe risk for each such pool. We efficiently manage credit

Connection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments, Claims Disclosed under the FRA
and Non-Accrual, Past Due & Restructured Loans
Definition of
ObligorClassificationsof SelfAssessment

ObligorRatings(MajorCategory)

A1—A3

B1—B2
NormalObligors
C1—C3

D1—D3
E1

Watch
Obligors

Intensive Control Obligors

E2

R

F1

Substantially Bankrupt
Obligors

G1

Bankrupt
Obligors

H1

Definition of Ratings

Category I(NonCategorized)

Obligors whose certainty of debt fulfillment is very high, hence their level ofcredit risk is excellent.
Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, hence their level of credit risk
is sufficient.
Obligors whose certainty of debt fulfillment and their level of credit risk pose no
problems for the foreseeable future.
Obligors whose current certainty of debt
fulfillment poses no problems, however,their resistance to future environmental
changes is low.

All credit
given toNormalObligors.

Obligors who require close watching
going forward because there are problems
with their borrowings, such as reduced orsuspended interest payments, problems
with fulfillment such as de facto postponements of principal or interest payments, or
problems with their financial positions as
a result of their poor or unstable businessconditions.
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 ongoingsupport from financial institutions).
Obligors who have not yet gone legally orformally bankrupt but who are substantially bankrupt because they are in serious
financial difficulties and are not deemed
to be capable of restructuring.

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

Category II

Category III

Category IV
Claims Disclosed(Non-Collateralized) under the FRA

Normal Claims

Credit given
to Watch
Obligors
other thanthoseincluded in
Category I.
Credit to
obligors
which haspledged collateral or iscovered byguarantees,consideredof highquality, suchas deposit
collateral.

Non-Accrual,
Past Due &Restructured
Loans

Credit to
obligors
which iscoveredby generalcollateral,such as realestate andguarantees.

Restructured
Loans

Claims for Special Attention
Loans Past Duefor 3 Months
or MoreCredit given to
Intensive Control
Obligors otherthan those included in Category
I and Category II.
The difference
between theassessed value
and market valueof collateral on
credit to Bankrupt
and Substantially
Bankrupt Obligors(i.e., the portionof loans for which
final collection
problems or losses
are anticipated).

Claims with
Collection Risk
Non-Accrual
Delinquent
Loans
Credit to Bankrupt
and Substantially
Bankrupt Obligors,other than thosein Category I,
Category II and
Category III (credit
that is judged to
be unrecoverable
or without value).

Claims against
Bankrupt
and Substantially Bankrupt
Obligors, andequivalent

Loans to Bankrupt Obligors

2016 Integrated Report119Method for Reserves and Write-Offs
NormalObligors
Watch
Obligors

Intensive
Control
Obligors

Calculate the value of estimated loss based on the probability of failure over the coming year for loans by obligor rating and appropriate it
for the General Reserve for Possible Losses on Loans.
Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the General Reserve
for Possible Losses on Loans. Further, in regard to Special Attention Obligors, for obligors with large claims more than a certain amount, if
the cash flow from the return of principal and interest payments can reasonably be estimated, set up a reserve under the DCF method.
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 amountcalculated based on the overall ability of the obligor to pay, or b) the estimated loss calculated on the basis of the balance and the probability of failure over the next three years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments
can reasonably be estimated, set up a reserve under the DCF method.

Substantially
Bankrupt
Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims andObligors
from guarantors of the claims for Specific Reserve for Possible Losses on Loans, or write-off the entire balance.
Bankrupt
Obligorsrisk and credit screening by dispersing a sufficient numberof our overall loan assets. Credit review involves analysis andof small claims within each pool. We generally review thescreening of each potential transaction within the relevant

appropriateness and effectiveness of our approach to obligor

business department. In case the screening exceeds the au-

ratings and pool allocations once a year in accordance withthority of the department, the credit group at headquarters

predetermined procedures.

carries out the review. The credit group has specialist departments for different industries, business sizes and regions,Self-assessment, Reserves for loan losses, Off-balance-

carries out timely and specialized examinations based on the

sheet Instruments and Write-offs

characteristics of the customer and its market, and provides

We conduct self-assessment of assets to ascertain the statusappropriate advice to the business department. In addition,of assets both as an integral part of credit risk managementin the case of obligors with low obligor ratings and highand in preparation for appropriate accounting treatment,

downside risks, the business department and credit depart-

including reserves for loan losses and off-balance-sheet

ment jointly clarify their credit policy and in appropriate cases

instruments and write-offs. During the process of self-

assist obligors at an early stage in working toward credit

assessment, obligors are categorized into certain groups

soundness.

taking into consideration their financial condition and theirability to make payments, and credit ratings are assigned to

Corporate Restructuring, Collection and Disposal of

all obligors, in principle, to reflect the extent of their credit

Non-performing Loansrisks. The related assets are then categorized into certain

With respect to collection and disposal of non-performingclasses based on the risk of impairment. This process allows

loans, our specialist unit maintains central control andus to identify and control the actual quality of assets andpursues corporate restructuring or collection efforts, as

determine the appropriate accounting treatment, including

appropriate, toward taking the non-performing loans

reserves for loan losses and off-balance-sheet instruments

off-balance. Specifically, we believe that supporting theand write-offs. Specifically, the credit risk management

restructuring efforts of corporations is an important role fordepartment of each bank is responsible for the overall control

financial institutions, and we support corporations undergo-of the self-assessment of assets of the respective banks, co-ing restructuring by reviewing business plans, advising on

operating with the administrative departments specified for

restructuring methods and utilizing corporate restructuring

each type of asset, including loan portfolios and securities, inschemes such as divestitures and mergers and acquisitions,executing and managing self-assessments.

taking advantage of our group-wide resources. These efforts
have been steadily producing satisfactory results. In addition,

120

Credit Review

we work on final disposal of non-performing loans efficiently

Prevention of new non-performing loans through routine

and swiftly by conducting bulk sales and by utilizing Mizuho

credit management is important in maintaining the quality

Servicing, our subsidiary that specializes in performing debt

Mizuho Financial GroupRisk Management Structurecollection services for our group companies.

depositors. We provide debt forgiveness as per industry

In the case of debt forgiveness, we examine the borrower’s condition carefully and make a determination based

guidelines that are shared among members of the Japanese
Bankers Association.

on the possible impact on the interests of shareholders andPortfolio Management
Risk Measurement

granting excessive credit to certain areas, industrial sectors

We use statistical methods to manage the possibility ofand other groupings. We make appropriate management

losses by measuring the expected average loss for a one-year

to control these risks in line with our specific guidelines forrisk horizon (Expected Loss) and the maximum loss within aeach. The individual risk management departments of thecertain confidence interval (“credit Value-at-Risk (VaR)”). The

two banks are responsible for monitoring adherence to thesedifference between expected loss and credit VaR is measured

guidelines and reporting to their respective business policy

as the credit risk amount (Unexpected Loss).

committees (please refer to Allocation of Risk Capital andIn establishing transaction spread guidelines for credit

Control of Credit Risk).

transactions, we aim to ensure an appropriate return fromthe transaction in light of the level of risk by utilizing credit

Loss Distribution

cost data as a reference. Also, we monitor our credit portfolio from various perspectives and set guidelines noted below
so that losses incurred through a hypothetical realization of
the full credit VaR would be within the amount of risk capitaland loan loss reserves.
Risk Control Methods
We recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit concentration risk,” which stems from granting excessive credit
to certain individual counterparties or corporate groups. The
other type is “chain-reaction default risk,” which arises from

Allocation of Risk Capital and Control of Credit Risk
Allocation of risk capital≧

Credit VaR

Credit concentration risk
1 Individual company credit guidelines
2 Corporate group-based credit

guidelines

Chain reaction default risk
3 Geographical area/country-

Controlbased credit guidelines
4 Industrial sector-based credit

guidelines
MHBK: Sets 1 2 3 4
MHTB: Sets 1 2 4Equivalent to credit concentration risk amounts

Equivalent to chain reaction default risk amounts

2016 Integrated Report121Market and Liquidity Risk Management
Basic Approach
We define market risk as the risk of losses incurred by theless favorable than usual. We define liquidity risk as the risk

Group due to fluctuations in interest rates, stock prices

of losses arising from funding difficulties due to a deteriora-

and foreign exchange rates. Our definition includes the risktion in our financial position that makes it difficult for us

of losses incurred when it becomes impossible to executeto raise necessary funds or that forces us to raise funds at

transactions in the market because of market confusion orsignificantly higher interest rates than usual. MHFG manages

losses arising from transactions at prices that are significantly

market and liquidity risk for the Group as a whole.

Market Risk Management StructureMarket Risk Management of MHFG

including business strategies, historical limit usage ratios,

Our Board of Directors determines basic matters pertaining

risk-bearing capacity (profits, total capital and risk manage-

to market risk management policies. The Risk Management

ment systems), profit targets and the market liquidity of theCommittee of MHFG broadly discusses and coordinates mat-products involved.

ters relating to basic policies in connection with market risk
management, market risk operations and market risk moni-Market Risk Management at Our Core Group Companies

toring. The Group CRO of MHFG is responsible for matters

MHBK, MHTB, MHSC and Mizuho Americas, which accountrelating to market risk management planning and operations.

for most of the Group’s exposure to market risk, have formu-

The Risk Management Department of MHFG is responsible

lated their basic policies in line with the basic policies deter-

for monitoring market risk, reports and analyses, proposals,

mined by MHFG. Their Boards of Directors determine impor-setting limits and guidelines, and formulating and imple-

tant matters relating to market risk management while their

menting plans relating to market risk management. The Risk

Chief Executive Officers are responsible for controlling mar-Management Department assesses and manages the overall

ket risk. Their respective business policy committees, includ-

market risk of the Group. It also receives reports from ouring their ALM & Market Risk Management Committees, arecore group companies on their market risk management that

responsible for overall discussion and coordination of market

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

risk management. Specifically, these committees discuss andting reports to the President & Group CEO on a daily basis

coordinate matters relating to basic asset and liability man-and to our Board of Directors and the Executive Management

agement policies, risk planning and market risk management.

Committee of MHFG on a regular basis.

The Chief Risk Officer of each subsidiary is responsible for

To manage market risk, we set limits that correspondmatters pertaining to planning and implementing market risk

to risk capital allocations according to the risk profiles ofmanagement. Based on a common group risk capital alloca-

our core group companies and thereby prevent market risktion framework, the above-mentioned companies manage

from exceeding our ability to withstand losses based on ourmarket risk by setting limits according to the risk capitalfinancial strength represented by capital, etc. The amount ofallocated to market risk by MHFG.

risk capital allocated to market risk corresponds to VaR and

122

These companies have established specialized company-

additional costs that may arise in order to close relevant posi-wide market risk management departments to provide

tions. For trading and banking activities, we set limits for VaR

integrated monitoring of market risk, submit reports, analy-

and for losses. For banking activities, we set position limits

ses and proposals, set limits and formulate and implement

based on interest rate sensitivity as needed.

plans relating to market risk management. The risk manage-

These limits are discussed and coordinated by the Risk

ment departments of each company submit reports on theManagement Committee, discussed further by the Executive

status of market risk management to their respective Chief

Management Committee, then determined by the President

Executive Officers and top management on a daily basis,& Group CEO. Various factors are taken into accountand to their Board of Directors and Executive Management

Mizuho Financial GroupRisk Management Structure

Committee on a regular basis. They also provide regularand settlements. When VaR is not adequate to control risk,

reports to MHFG. To provide a system of mutual checks andthe middle offices manage risk using additional risk indices,balances in market operations, they have established middle

carry out stress tests and set stop loss limits as needed. They

offices specializing in risk management that are independent

monitor their market liquidity risk for individual financialof their front offices, which engage in market transactions,products in the market while taking turnover and other fac-

and their back offices, which are responsible for book entries

tors into consideration.

Status of MHFG’s Market Risk
Value-at Risk
We use the VaR method, supplemented with stress testing,

VaR by Risk Category (Trading Activities)(billions of ¥)as our principal tool to measure market risk. The VaR methodmeasures the maximum possible loss that could be incurred
due to market movements within a certain time period (orholding period) and degree of probability (or confidence
interval).

Interest rate
Foreign exchange
Equities
Commodities
Total

Daily average
2.0
4.1
1.0
0.0
5.7

Fiscal 2013
Maximum
Minimum
2.7
1.5
5.6
1.1
3.1
0.2
0.0
0.0
7.4
3.3

At March 31
1.6
4.8
0.4
0.0
5.4

Daily average

Fiscal 2014
Maximum
Minimum

At March 31• Trading Activities
VaR related to our trading activities is based on the following:• variance co-variance model for linear risk and MonteCarlo simulation for non-linear risk, which are simply
aggregated to determine total risk;• confidence interval: one-tailed 99.0%;

Interest rate
Foreign exchange
Equities
Commodities
Total

1.8
3.0
0.5
0.0
4.4

2.6
5.8
1.3
0.0
7.1

1.4
1.6
0.2
0.0
3.1

1.5
5.6
0.3
0.0
6.5

Fiscal 2015
Maximum
Minimum

At March 31• holding period of one day; and• historical observation period of one year.
activities by risk category for the fiscal years ended March 31,
2014, 2015 and 2016 and as of March 31, 2014, 2015 and2016:

Interest rate
Foreign exchange
Equities
Commodities
Total

1.8
0.9
0.6
0.0
2.9

3.7
2.3
2.5
0.0
4.5

0.6
0.2
0.1
0.0
1.8

1.1
0.3
0.3
0.0
2.0

The following graph shows VaR figures of our trading
activities for the fiscal year ended March 31, 2016:
Fiscal 2015 VaR (Trading Activities)(VaR: billions of ¥)

5
4
3
2
1
0
04/01/2015
04/15/2015
04/29/2015
05/13/2015
05/27/2015
06/10/2015
06/24/2015
07/08/2015
07/22/2015
08/05/2015
08/19/2015
09/02/2015
09/16/2015
09/30/2015
10/14/2015
10/28/2015
11/11/2015
11/25/2015
12/09/2015
12/23/2015
01/07/2016
01/21/2016
02/04/2016
02/18/2016
03/03/2016
03/17/2016
03/31/2016

The following tables show the VaR related to our trading

Daily average

2016 Integrated Report123• Characteristics of VaR Model

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

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

VaR (Trading Activities)(billions of ¥)Fiscal 2013 Fiscal 2014 Fiscal 2015 Change

5.4
7.4
3.3
5.7

As of fiscal year end
Maximum
Minimum
Average

6.5
7.1
3.1
4.4

2.0
4.5
1.8
2.9

(4.5)
(2.5)
(1.3)
(1.5)

possible losses over a certain period at a particularconfidence level using past market movement data. Past
market movement, however, is not necessarily a good
indicator of future events, particularly potential future
events that are extreme in nature.
• VaR may underestimate the probability of extreme
market movements.

• Non-Trading Activities• The use of a 99.0% confidence level does not take

The VaR related to our banking activities is based on thesame conditions as those of trading activities, but the holding

account of, nor makes any statement about, any losses

period is one month.

that might occur beyond this confidence level.

The following graph shows the VaR related to our banking• VaR does not capture all complex effects of various risk

activities excluding our cross-shareholdings portfolio for thefactors on the value of positions and portfolios andyear ended March 31, 2016.

could underestimate potential losses.
Interest Sensitivity Analysis
(%)

400

0.4

300

0.2

200

0.0

We also conduct interest sensitivity analyses of interest risk,
our main source of market risk. The following table shows
sensitivity to yen interest risk in our banking activities as ofthe dates indicated. Interest rate sensitivity (10 BPV) shows
how much net present value varies when interest rates rise by
10 basis points (0.1%), and it explains the impact of interest

100

-0.2

0

-0.4

rate movements on net present value when short- and long-

04/01/2015
04/15/2015
04/29/2015
05/13/2015
05/27/2015
06/10/2015
06/24/2015
07/08/2015
07/22/2015
08/05/2015
08/19/2015
09/02/2015
09/16/2015
09/30/2015
10/14/2015
10/28/2015
11/11/2015
11/25/2015
12/09/2015
12/23/2015
01/07/2016
01/21/2016
02/04/2016
02/18/2016
03/03/2016
03/17/2016
03/31/2016

term interest rates behave differently.

The following table shows the VaR figures relating to ourbanking activities for the fiscal years indicated:(billions of ¥)Fiscal 2013 Fiscal 2014 Fiscal 2015 Change

281.7
300.7
186.8
253.5

2014
Up to one year
From one to five years
Over five years
Total

(2)
(47)
(12)
(62)

At March 31 (billions of ¥)
2015
2016
Change

(1)
(35)
(14)
(51)

(2)
(21)
(25)
(50)

(1)
14
(11)
1

Cross-shareholding Portfolio Management Activities

VaR (Banking Activities)

As of fiscal year end
Maximum
Minimum
Average

Interest Sensitivity by Maturity

325.6
349.0
265.0
307.9

321.5
360.6
190.0
284.9

(4.0)
11.5
(75.0)(23.0)

We take the market risk management approach with use
of VaR and risk indices for cross-shareholdings portfolio
management activities as well as for trading activities andnon-trading activities. The risk index for cross-shareholdings
portfolio management for the fiscal year ended March 31,
2016, consisting of the sensitivity of the cross-shareholdings
portfolio to a 1% change in the equity index of TOPIX, was¥29.7 billion.

124

Mizuho Financial GroupRisk Management Structure

Back Testing and Stress Testing

loss results of stress testing in trading activities using the

In order to evaluate the effectiveness of market risk measure-methods described above:

ments calculated using the VaR method, we carry out regularFiscal 2015 Stress Testingback tests to compare VaR with assumptive profits and

At March 31, 2016 (billions of ¥)losses. Assumptive profits and losses accounts for generalmarket risk. The following graph shows daily VaR of trading
activities (based on the Basel regulatory framework) for the
fiscal year ended March 31, 2016, and the corresponding

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

30.6

Outlier Criteria

paired distribution of profits and losses. We had five cases

As part of the capital adequacy requirements under Baselwhere losses exceeded VaR during the period. In addition,

Regulatory Framework, the losses arising from a banking

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
the model assumptions, we changed our VaR models to theHistorical Simulation method, which has been used since thebeginning of the fiscal year ended March 31, 2017. Changes
to fundamental portions of the VaR models are subject to theapproval of our Group CRO.

book in hypothetical interest rate shock scenarios undercertain stress conditions are calculated and compared withbroadly-defined capital. If the interest rate risk of the banking
book leads to an economic value decline of more than 20%
of broadly-defined capital, we will be deemed an “outlier”
and may be required to reduce the banking book risk or
adopt other responses. We measure losses arising from ourbanking book each month as a part of our stress tests.
The table below shows the results of calculations of losses
in the banking book in cases where interest rate fluctuations
occur under stress conditions. The results of calculations

6of losses in the banking book show that they are 5.3% of
broadly-defined capital. Because the amount of risk on the3banking book is therefore well under the 20% threshold andwithin controllable limits, we do not fall under the “outlier”

0category.
Fiscal 2015 Results of Calculations under the Outlier
Framework

(3)

(6)

0

1

2

3

4

5

6

Because the VaR method is based on statistical assumptions, we conduct stress testing to simulate the levels of
losses that could be incurred in cases where the market
moves suddenly to levels that exceed these assumptions.
The stress testing methods we use include the calculation oflosses on the basis of the largest fluctuations occurring overa period of more than five years and the calculation of losses

Amountof loss

At March 31, 2014
At March 31, 2015
At March 31, 2016
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

386.6
529.2
516.6
73.5
340.4
73.2

Broadlydefined
capital(billions of ¥)Lossratio tocapital8,655.9
9,508.4
9,638.6

4.4%
5.5%
5.3%

Notes: 1. In the above results of calculations of losses, a part ofdemand deposits without fixed intervals for amending
applicable interest rates is deemed core deposits and istreated accordingly in the calculation.
		
2. For the interest rate shock scenario used in connection withthe above figures, we generate annual rate fluctuation
data for five years derived from daily raw historical interest
rate data of the past six years and then apply the actualfluctuation data, which show a rise in interest rates, at a
99.0% confidence level to the shock scenario.

based on market fluctuations occurring during historical market events. The following table shows the assumed maximum

2016 Integrated Report125Market Risk Equivalent

the average of stressed VaR for the preceding 60 businessIn order to calculate the amount of capital necessary to meetdays (including the calculation date) multiplied by the samethe capital requirements relating to market risk (the “mar-multiplication factor as used in the bullet point above.

ket risk equivalent”), we apply internal models to calculate

The following table shows total market risk equivalent

general market risk (risks related to factors that apply gener-

as of the dates indicated calculated using the standardized

ally to the market, e.g., interest rates, foreign exchange rates)

measurement method and internal models:

and the standardized measurement method to calculate
specific risks (risks other than general market risk, e.g., credit
quality and market liquidity of an individual security or instru-

Fiscal 2015 Market Risk Equivalent
At March 31 (billions of ¥)ment). In addition, our internal models are applied to tradingtransactions with market liquidity based on the relevant
holding period.
Under the internal models, the market risk equivalent isexpressed as the sum of:
The higher of (i) VaR on the calculation date and (ii) the
average of VaR for the preceding 60 business days (including the calculation date) multiplied by a multiplication factor
ranging from 3.00 to 4.00 that is determined based on thenumber of times VaR is exceeded upon back testing; andThe higher of (i) stressed VaR on the calculation date and (ii)2015
Calculated using standardized
measurement method
Calculated using internal
modelsTotal market risk equivalent

78.8

2016

Change

70.6

(8.1)

199.0

65.0

(134.0)

277.9

135.6

(142.2)

Note: VaR and stressed VaR used to calculate market risk equivalent isbased on the following:• variance co-variance model for linear risk and Monte-Carlosimulation for non-linear risk, which are simply aggregated todetermine total risk;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of one year.

Liquidity Risk Management Structure
Liquidity Risk Management of MHFG

flow, such as limits on funds raised in the market that are

to liquidity risk management policies. The Risk Management

set based on a number of time horizons. Limits on liquidity

Committee of MHFG broadly discusses and coordinatesrisk set for Japanese yen and foreign currencies taking into

matters relating to basic policies in connection with liquid-

account characteristics and strategies of each core group

ity risk management, operations, monitoring and proposescompanies, are discussed and coordinated by the Risk

responses to emergencies such as sudden market changes.

Management Committee, discussed further by the Executive

The Group CRO of MHFG is responsible for matters relating

Management Committee and determined by the President

to liquidity risk management planning and operations. The& Group CEO. In addition, our core group companies set

Risk Management Department of MHFG is responsible forlimits on liquidity risk for several currencies. Moreover, they

monitoring liquidity risk, reports and analyses, proposals, andare working on measures to reduce their liquidity risk such as

formulating and implementing plans relating to liquidity riskenhancing management related to local currencies.

management.

126

To manage liquidity risk, we use indices pertaining to cash

Our Board of Directors determines basic matters pertaining

We have established a group-wide framework of liquidity

In addition, the Group CFO of MHFG is additionally re-risk stage such as “Normal,” “Anxious” and “Crisis,” whichsponsible for matters relating to planning and running cashreflects funding conditions. In addition, we set Early Warning

flow management operations, and the Financial Planning

Indicators (“EWIs”) and monitor on a daily basis to manage

Department is responsible for monitoring and adjusting

liquidity conditions. As EWIs, we select stock prices, credit

the cash flow management situation and for planning andratings, amount of liquidity reserve assets such as Japanese

implementing cash flow management to maintain appropri-

government bonds, our funding situations and so on.

ate funding liquidity. Reports on the liquidity risk manage-

We have established a liquidity contingency funding

ment are submitted to the Risk Management Committee,

plan for emergency situations which are deemed to fall into

the Executive Management Committee and the President &the “Anxious” or “Crisis.” In emergency situations, we will

Group CEO on a regular basis.

consider measures such as a reduction in the amount ofMizuho Financial GroupRisk Management Structure

investments made, an expansion of funding from financial

such as sudden market changes. The Chief Risk Officer ismarkets and deposits, the sale of investment securities andresponsible for matters relating to liquidity risk management

borrowings from the central bank.

planning and operations and the senior executives of the

In order to evaluate the sufficiency of liquidity reserve
assets and the effectiveness of liquidity contingency funding

ALM and trading units are responsible for matters pertaining
to planning and conducting cash flow management.

plan, we conduct stress testing under market-wide, idiosyn-

The methodologies used for ensuring precise control ofcratic and combined scenario. Furthermore, we utilize stressliquidity risk include the formulation of management indicestesting for evaluating the appropriateness of our annual

pertaining to cash flow, such as limits on funds raised in thefunding plan.

market that are set based on a number of time horizons. As
with MHFG, the above-mentioned companies have estab-Liquidity Risk Management at Our Core Group Companies

lished liquidity risk stage, such as “Normal” to “Anxious”

MHBK, MHTB, MHSC and Mizuho Americas have formulated

and “Crisis,” which reflects funding conditions and havetheir basic policies in line with the basic policies determined

established liquidity contingency funding plan for emergency

by MHFG. Their Boards of Directors determine importantsituations which are deemed to fall into the “Anxious” ormatters relating to liquidity risk management while their“Crisis” categories.

Chief Executive Officers are responsible for controlling liquid-

Each subsidiary has adopted stringent controls that callity risk. Their respective business policy committees, including

for the submission of reports on liquidity risk management

their ALM & Market Risk Management Committees, areand cash flow management to the ALM & Market Risk

responsible for overall discussion and coordination of liquidity

Management Committee and other business policy commit-

risk management. Specifically, these committees discuss andtees, the Executive Management Committee and the Chiefcoordinate matters relating to risk planning, cash flow man-

Executive Officer of each subsidiary.

agement planning and propose responses to emergencies

Operational Risk Management
Basic Approach
We define operational risk as the risk of loss that we may

asset risk, regulatory change risk and reputational risk. We

incur resulting from inadequate or failed internal processes,

have determined risk management policies for each kind ofpeople and systems or from external events. We recognize

risk. MHBK, MHTB, MHSC, TCSB, Mizuho Americas, etc., re-that operational risk includes information technology risk,

spectively manage operational risk in an appropriate manner

operations risk, legal risk, human resources risk, tangible

pursuant to risk management policies determined by MHFG.

Operational Risk Management Structure
MHFG, MHBK, MHTB, MHSC, TCSB, etc., share common

cial operations and developments relating to information

rules for data gathering, and we measure operational risk

technology by utilizing control self-assessments and improv-

on a regular basis, taking into account possible future loss

ing measurement methods.

events and the changes in the business environment andinternal management.
We have established and are strengthening management
methods and systems to appropriately identify, assess, measure, monitor and control the operational risks which arise
from the growing sophistication and diversification of finan-

Glossary Control Self-Assessments	
An autonomous method of risk management in which risk
inherent in operations is identified and, after evaluating andmonitoring risks that remain despite implementing risk control,
the necessary measures are implemented to reduce risk.

2016 Integrated Report127Definition of Risks and Risk Management Methods
As shown in the below table, we have defined each compo-

agement methods in accordance with the scale and nature ofnent of operational risk and we apply appropriate risk man-each risk.

Definition

Principal Risk Management Methods

Information
Technology Risk

• Identify and evaluate the risk by setting specific standards
that need to be complied with and implementing measures
Risk that customers may suffer service disruptions, or that
tailored based on evaluation results to reduce the risk.
customers or the Group may incur losses arising from• Ensure ongoing project management in systems developsystem defects such as failures, faults, or incompletenessment and quality control.
in computer operations, or illegal or unauthorized use of• Strengthen security to prevent information leaks.
computer systems.
• Improve effectiveness of emergency responses by improving
backup systems and holding drills.

Operations Risk

Risk that customers may suffer service disruptions, as wellas the risk that customers or the Group may incur losses
because senior executives or employees fail to fulfill theirtasks properly, cause accidents or otherwise act improperly.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation andcentralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal Risk

Risk that the Group may incur losses due to violation oflaws and regulations, breach of contract, entering into
improper contracts or other legal factors.

• Review and confirm legal issues, including the legality ofmaterial decisions, agreements and external documents, etc.
• Collect and distribute legal information and conduct internal
training programs.
• Analyze and manage issues related to lawsuits.

Human
Resources Risk

Risk that the Group may incur losses due to drain or lossof personnel, deterioration of morale, inadequate development of human resources, inappropriate working
schedule, inappropriate working and safety environment,
inequality or inequity in human resource management or
discriminatory conduct.

• Conduct employee satisfaction surveys.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.

Tangible Asset
Risk• Manage the planning and implementation of construction
Risk that the Group may incur losses from damage to tanprojects related to the repair and replacement of facilities.
gible assets or a decline in the quality of working environ• Identify and evaluate the status of damage to tangible assets
ment as a result of disasters, criminal actions or defects incaused by natural disasters, etc., and respond appropriately
asset maintenance.
to such damage.

Regulatory
Change Risk

Risk that the Group may incur losses due to changes invarious regulations or systems, such as those related tolaw, taxation and accounting.

• Understand important changes in regulations or systems
that have significant influence on our business operations or
financial condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes andestablish countermeasures.
• Continuously monitor our regulatory change risk management mentioned above.

Reputational
Risk

Risk that the Group may incur losses due to damage to
our credibility or the value of the Mizuho brand whenmarket participants or others learn about, or the media
reports on, various adverse events, including actual materialization of risks or false rumors.

• Establish framework to identify and manage, on an integrated basis, information that may have a serious impact ongroup management and respond to such risk in a manner
appropriate to its scale and nature.
• Swiftly identify rumors and devise appropriate responses depending on 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 componentsof operational risk, as operational risk.

128

Mizuho Financial GroupRisk Management Structure

Measurement of Operational Risk Equivalent
Implementation of the AMA

to the occurrence frequency of operational risk events, andWe have adopted the AMA from September 30, 2009, forloss severity is expressed through a separate distribution.

the calculation of operational risk equivalent in association

Operational risk is calculated for each of the seven loss eventwith capital adequacy ratios based on Basel II. However, we

types employing both internal loss data, based on our actual

use the Basic Indicator Approach (BIA) for entities that areexperience as operational loss events and scenario data.

deemed to be less important in the measurement of opera-

Scenario data, expressed as numerical values of occurrence

tional risk equivalent and for entities that are preparing tofrequency and loss severity, reflects external loss data andimplement the AMA. The measurement results under the

BEICFs, in order to estimate unexperienced potential future

AMA are used not only as the operational risk equivalentloss events (of low frequency and high severity).

in the calculation of capital adequacy ratios but also as

Frequency Distribution and Severity Distribution are esti-

Operational VaR for internal risk management purposes formated employing the above mentioned internal loss data andimplementing action plans to reduce operational risk, etc.

scenario data, and Monte-Carlo simulations are then applied
to these distributions to measure operational risk. The de-Outline of the AMA

tailed steps of creation of scenario data are explained later in• Outline of Measurement System

Scenario Analysis.

We have established the model by taking account of four
elements: internal loss data; external loss data; scenario
analysis and business environment; and internal control• Estimation of Frequency Distribution and Loss Severity
Distribution

factors (BEICFs). We calculate the operational risk equivalentFrequency Distribution is estimated by applying information

amount by estimating the maximum loss using a 99.9th

on occurrence frequency of both internal loss data and sce-

percentile one-tailed confidence interval and a one-year

nario data to Poisson Distribution. Loss Severity Distribution isholding period etc., employing both internal loss data (i.e.,

generated as the result of combining, through a statistical ap-

actually experienced operational loss events) and scenario

proach (Extreme Value Theory), of the actual distribution fordata to reflect unexperienced potential future loss events inthe low severity distribution portion created by internal loss

the measurement.

data and another loss distribution (Log-normal Distribution or

In the measurement of operational risk equivalent as ofMarch 31, 2016, we did not exclude expected losses and also

Generalized Pareto Distribution) for the high severity distribution portion created by scenario data.

did not recognize the risk mitigating impact of insurance. In
addition, we did not take into account the events related to• Operational Risk of Large-scale Natural Disasters

credit risk in measuring operational risk equivalent.

Monte-Carlo simulation is applied to the datasets expressed
as a combination of the probability of occurrence of large-• Outline of Measurement Model

scale natural disasters and the probable loss amount in caseOperational risk equivalent is calculated as a simple sum ofof such occurrence, as opposed to estimating Frequency

those related to the seven loss event types defined by BaselDistribution and Loss Severity Distribution.

II, large-scale natural disasters and litigation. In the measurement of operational risk equivalent as of March 31, 2016, we• Operational Risk of Litigation

did not reflect the correlation effects among operational risk

Each litigation is converted into data according to the profile

related to each of the seven loss event types.

of the individual litigation to which Monte-Carlo simulation
is applied, as opposed to estimating Frequency Distribution• Operational Risk by the Loss Event Typeand Loss Severity Distribution. In the measurement process,Loss Distribution (Compound Poisson Distribution) Approach

we assume that final decisions will be made on all litigation(LDA) is adopted for the calculation of operational risk. LDA

within one year.

is based on the assumption that Poisson Distribution applies

2016 Integrated Report129Outline of Measurement Model• Verification
We confirm the appropriateness of the measurement model

ApproachA

by verifying it, in principle, semi-annually.
Scenario Analysis• Outline of Scenario Analysis

B
C
D

Loss event type(s) to be applied
Internal fraud/External fraud/Customers, products& business practices/Execution, delivery & process
management
Employment practices and workplace safety
Damage to physical assets
Business disruption and system failure

In the process of scenario analysis, scenario data is createdas numerical values of occurrence frequency and loss severity

At MHFG, loss event types to which Approach A is appliedreflecting external loss data and BEICFs, in order to estimate

account for a considerable amount of operational risk. The

unexperienced potential future operational risk events (of low

detailed process of Approach A is explained below as a typi-

frequency and high severity).

cal example of scenario analysis.

As for external loss data, we refer to data publicly reported by domestic and overseas media, and such data are• Setting Units for Scenario Analysis

reflected in the estimation of occurrence frequency and loss

In order to ensure completeness and sufficiency, we set units

severity distribution in the process of scenario analysis. In

that are commonly applied across group entities that adopt

addition, BEICFs are utilized as indices to adjust occurrence

AMA (hereinafter, the “Group Entities”) by referencing

frequency and loss severity distribution in the process ofand categorizing risk scenarios recognized through control

scenario analysis.

self-assessment, internal loss data of the Group Entities

We categorize scenario analysis into four approaches inand external loss data, etc. Then each of the Group Entities

accordance with the characteristics of each loss event typeselects the unit on which scenario analysis is conducted fromand risk management structures.

the units established on a group-wide basis in accordancewith its business activities and operational risk profile.

130

Mizuho Financial GroupRisk Management Structure• Estimation of Occurrence Frequency

occurred, with reference to transaction amount data, external

Basic occurrence frequency (once a year) is calculated forloss data, etc. Then the basic severity distribution is adjusted,each scenario analysis unit. If a certain scenario analysis unit

if necessary, from the viewpoint of statistical data processing

has relevant internal loss data of a pre-determined thresholdto determine the final loss severity distribution.

amount or above, its basic occurrence frequency is calculated
based on such data, and if not, the basic occurrence frequen-• Creation of Scenario Datacy (the occurrence frequency per year of losses at or above a

For each scenario analysis unit, scenario data is generated aspredetermined threshold) is calculated with reference to thea series of combinations of occurrence frequency per year atsituation of occurrence of internal loss data of less than theeach severity range, based on the final occurrence frequency

threshold amount and/or external loss data. The basic oc-

and the final loss severity distribution.

currence frequency is then adjusted within a pre-determined
range for the purpose of reflecting the most recent BEICFs todetermine the final occurrence frequency.
• Estimation of Loss Severity Distribution
In order to estimate loss severity distribution, we use apredetermined series of severity ranges. Basic loss severity
distribution is calculated for each scenario analysis unit as an
occurrence ratio (in percentile figures) of loss at each severity
range when losses at or above a pre-determined threshold

Final loss severity distribution

Example of Scenario Data

Severity range (billions of ¥)
0.1
0.5
1
5
10
Occurrence ratio (%)

40

30

Occurrence frequency(times)15

0.4

0.3 0.15

10

Total

5

100

0.1 0.05

1

Final occurrence frequency(As of July 1, 2016)2016 Integrated Report131Business Continuity Management
In light of its social responsibility to play an important role

mulating countermeasures, etc. In addition, they will carry out

in the social infrastructure as a financial institution, Mizuho

activities such as collecting and analyzing signs and indicatorsplaces priority on securing an adequate level of continuityof the crisis, and reporting to the management without delay.

of financial settlement functions and the swift and efficient

We have also established a Business Continuity

recovery of the business in the event of an emergency. This isManagement Committee as one of the Business Policya basic policy of the Group.

Committees for unified improvement of business continuity

The Group recognizes the risks of the occurrence of an

management practices in the Group. The committee makes

emergency situation in advance. In order to swiftly takepreparations for minimizing the impact of an emergency, andmeasures to mitigate the risks in the event of an emergency,

for the swift and efficient recovery of the business, by assess-

the Group develops appropriate and effective countermea-

ing the assumed impact of an emergency beforehand andsures and a framework for business continuity management,

formulating necessary countermeasures.

ensures readiness for emergencies, and strives to disseminate
these within the organization in times of normalcy.

Particular focus is placed on strengthening our response
for natural disasters, covering not only earthquakes andSpecifically, we established Crisis Management Offices

tsunamis but also volcanic eruptions, large-scale wind orin MHFG, MHBK, MHTB and MHSC that are responsible forwater damage, and facilitating initial response for terrorism

responses in the event of emergency and business continuity

and riots. The Committee also focuses on responses to cyber-management. The offices will function as a controller in theattacks that have been occurring with increasing frequency

event of an emergency that may materially impact businessthroughout society.

management, by collecting and analyzing information, for-Response to 2016 Kumamoto Earthquake
Special teams were set up in MHFG, MHBK, MHTB andTwo staff members of the Kyushu Reconstruction Deskoccurred in April 2016. Since then, they have played a cen-were posted at Kumamoto branch of MHBK to share infor-

tral role in group-wide measures such as initial responses tomation with local companies, local financial institutions and re-ensure the safety and provide support for on-site staff andgional government entities in Kumamoto, Oita and other areas

customers, as well as the maintenance and continuation ofof Kyushu. They also work with the Kyushu Reconstruction

financial settlement services that are a crucial part of social

Support Task Force to make full use of Mizuho’s facilities toinfrastructure.

meet communities’ needs.

Later, in May 2016, a Kyushu Reconstruction Support

It is Mizuho’s social responsibility and public mission to

Task Force was established in MHFG and a Kyushu Recon-

contribute not only to the development of its customers but

struction Desk in MHBK to provide group-wide support foralso to economic and social development, taking advantage

the affected area.

of its diverse range of financial know-how, including indus-

The Kyushu Reconstruction Support Task Force gathered
related knowledge within Mizuho and discussed and worked
to contribute to industrial and community recovery in the132

restoration process of the Earthquake.

MHSC immediately after the Kumamoto Earthquake that

Mizuho Financial Group

trial expertise and public-private partnership schemes, andprovide financial intermediation and consulting functions.

Senior Executive
Mizuho Bank

Seiji Imai

Yasuo Agemura*

Members of the Board of Directors

Managing Executive Officer

Deputy President

Head of Asia & Oceania excl. East Asia

Nobuhide Hayashi*

Takahiko Yasuhara

Head of Global Markets / Head of Global Markets
Division / Head of Global Business & Markets

President & CEO (Representative Director)

Nobuyuki Fujii*
Deputy President (Representative Director)
Head of Business Promotion

Satoshi Miyazaki*
Deputy President (Representative Director)
Deputy President (Western Japan (Kinki, Chugoku, andShikoku regions))

Managing Executive Officer

Naofumi Fuke*

Head of East Asia

Senior Executive Managing Director
Head of Retail & Business Banking Division

Mizuho Trust & Banking

Hidefumi Kobayashi*

Members of the Board of Directors

Executive Managing Director

Takeo Nakano*President & CEO (Representative Director)

Kiyoshi Miyake*

Kazuhisa Sawa*

Deputy President (Representative Director)

Deputy President (Representative Director)

Head of Business Promotion

Shusaku Tsuhara*
Senior Executive Managing Director
Head of Compliance Group

Ryusuke Aya*

Head of Strategic Planning, Financial Control &Accounting Group / Head of IT & Systems Group /Head of Operations Group / In charge of Executive
Secretariat

Toshio Sobue*
Executive Managing Director

Head of Risk Management Group

Head of Risk Management Group /Head of Compliance Group / Head of Credit GroupKoji Fujiwara*

Hiroaki Ehara*

Executive Managing Director

Executive Managing Director
Head of Strategic Planning Group

Koichi Iida*
Executive Managing Director

Executive Managing Director
Head of Human Resources Group /Head of Internal Audit Group

Tsuyoshi Hatsuzawa

Head of Financial Control & Accounting Group

Member of the Board of Directors

Hideyuki Takahashi

Yasuhiro Sato

Head of Global Finance / Head of Research &Consulting Unit / Head of Financial Control &Accounting Group / In charge of Due Diligence Dept.

Masaya Usuha*
Executive Managing Director
SC Group Chief Audit Executive /Head of Internal Audit Group

Masaya Oishi*
Executive Managing Director
In charge of JA Sales Dept. of Global Markets Division /In charge of Retail & Business Banking Division

Taiji Kumagai*
Executive Managing Director
Head of Compliance Group

Atsushi Takahashi*
Executive Managing Director
Head of Strategic Planning Group /In charge of Investment Dept.

Kenji Fujii*
Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Head of Global Risk Management /Head of Risk Management Group

Hirohisa Kashiwazaki

Masayuki Satake

Naomi Tsumura

Member of the Board of Directors(Outside Director)

Member of the Board of Directors

Masaru Ono

Member of the Board of Directors

Member of the Board of Directors

Yasuhiro Sato
Member of the Board of Directors

Yasuhiro Sato

Yukio Machida

Member of the Board of Directors(Outside Director)

Hidetaka Kawakita

Member of the Board of Directors(Outside Director)

Eiji Ogawa

Member of the Board of Directors(Outside Director)

Member of the Board of Directors(Outside Director)

Masaru Ono

Toshio Kinoshita
Member of the Board of Directors(Outside Director)

Seiji Koga
Member of the Board of Directors(Outside Director)

Mizuho Securities
Members of the Board of Directors
Yasuhiko Imaizumi
Chairman

Executive Officers(Head of Each Region Overseas)

Tatsufumi Sakai*

Hiroshi Suehiro

Hiroto Koda*

Senior Managing Executive Officer
Head of the Americas

Teiji Teramoto
Managing Executive Officer

President & CEO (Representative Director)
Head of Global Investment Banking Division

Deputy President (Representative Director)
In charge of Special Missions / Head of Human
Resources Group / In charge of Executive Secretariat /In charge of Markets Strategic Intelligence Dept. /Attached to Strategic Planning Group

Member of the Board of Directors(Outside Director)
Notes:
1. *indicates directors concurrently serving as
executive officers.
2. The Audit & Supervisory Board Members andexecutive officers, excluding the directors
concurrently serving as executive officers andexecutive officers responsible for global regional
operations of MHBK, have not been listed.
3. The Audit & Supervisory Board Members andexecutive officers, excluding the directors
concurrently serving as executive officers of
MHTB and MHSC, have not been listed.
(As of June 24, 2016)

Head of Europe, Middle East and Africa

133

Location of Overseas Offices (As of June 30, 2016)
Network of Mizuho Bank
Asia and Oceania(Country/Region)
Australia

Sydney Branch

Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
TEL 61-2-8273-3888

Mizuho Australia Ltd.

Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
TEL 61-2-8273-3888

Cambodia

Phnom Penh Representative Office
13A Floor, Phnom Penh Tower, #445,
Monivong Blvd (St. 93/232) Sangkat Boeung Pralit,
Khan 7 Makara, Phnom Penh, Cambodia
TEL 855-23-964-490

China

Mizuho Bank (China), Ltd.

23rd Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
TEL 86-21-3855-8888

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

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

5th Floor, E2 ABC, East Wing Binhai Finance Zone,
No.20 Xinchengdong Road, TEDA, Tianjin 300457,
The People’s Republic of China
TEL 86-22-6622-5588

Mizuho Bank (China), Ltd. 		
Wuhan 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

Mizuho Capital Markets (HK) Limited

16th Floor, Two Pacific Place, 88 Queensway, Hong Kong,
S.A.R., The People’s Republic of China
TEL 852-2537-3815

India
Bangalore-Devanahalli Branch#462/440/339, 2nd Floor, Near Jain Temple, N.H.7/4-207,
B.B. Road, Vijayapura Cross, Devanahalli Town,
Bangalore Rural District - 562 110, Karnataka, India
TEL 91-80-4968-2000

Chennai Branch

Unit No.11B, 11th Floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai – 600 006,
Tamil Nadu, India
TEL 91-44-4928-6600

Mumbai Branch

Level 17 TOWER–A Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
TEL 91-22-4911-2000

New Delhi Branch

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

1st Floor, DLF Capitol Point, Baba Kharag Singh Marg,
Connaught Place, New Delhi, 110001, India
TEL 91-11-3041-0900

Mizuho Bank (China), Ltd. 		
Changshu Sub-Branch

Office No.402, 4th Floor, Commerce House–5,
Nr. Vodafone House, Prahladnagar Corporate Road,
Prahladnagar Satellite, Ahmedabad–380 051, India
TEL 91-79-4014-4666

Room701-704, Kechuang Building, No.333 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

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

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. 		
Dalian Branch

Mizuho Bank (China), Ltd. 		
Kunshan Sub-Branch

23rd Floor, 24th Floor-A, Senmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
TEL 86-411-8360-2543

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

Mizuho Bank (China), Ltd.
Guangzhou Branch

Mizuho Bank (China), Ltd.
Tianjin Heping Sub-Branch

Ahmedabad BranchIndonesia
PT. Bank Mizuho Indonesia

Sinar Mas Land Plaza Menara 2, 24th Floor,
Jl. M. H. Thamrin No.51, Jakarta 10350,
Republic of Indonesia
TEL 62-21-392-5222

Korea
Seoul Branch

19th Floor, Seoul Finance Center, 136, Sejong-daero,Jung-gu, Seoul, Korea
TEL 822-3782-8500

Malaysia
Labuan Branch

Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Federal Territory of Labuan, Malaysia
TEL 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office

25th Floor, International Finance Place, No.8 Huaxia Road,
Zhujiang New Town, Tianhe District, Guangzhou,
Guangdong Province 510623,
The People’s Republic of China
TEL 86-20-3815-0888

Room 1902, Tianjin International Building,
No.75 Nanjing Road, Heping Area, Tianjin 300050,
The People’s Republic of China
TEL 86-22-6622-5588

Mizuho Bank (China), Ltd. 		
Hefei Branch

Room 2220, Suning Universal Hotel, 188 Guangzhou Road,
Nanjing, Jiangsu Province 210024,
The People’s Republic of China
TEL 86-25-8332-9379

Mizuho Bank (Malaysia) Berhad

Xiamen Representative Office

Myanmar
Yangon 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

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

134

Mizuho Bank (China), Ltd. 		
Suzhou Branch

Nanjing 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

17th Floor, Two Pacific Place, 88 Queensway, Hong Kong,
S.A.R., The People’s Republic of China
TEL 852-2103-3000

Kowloon Sub-Branch

16th Floor, Sun Life Tower, The Gateway,
Tsim Sha Tsui, Kowloon,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2102-5399

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2058-6881

Sedona Business Suites, Level4,
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 63-2-860-3500

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

2nd Floor, Hung Kuo Building, 167 Tun Hua North Road,
Taipei 105, Taiwan
TEL 886-2-2715-3911

Thailand

Bangkok Branch

98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTEL 66-2-163-2999, 2-002-0222

Eastern Seaboard Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
TEL 66-3-899-7000

VietnamHanoi Branch

4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-3936-3123/3124

Ho Chi Minh City Branch

18th Floor, Sun Wah Tower,		
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
TEL 84-8-3827-8260/8292

Germany
Duesseldorf Branch

Benrather Strasse 18-20, 40213 Duesseldorf, F.R. Germany
TEL 49-211-13020

Frankfurt Branch

An der Hauptwache 7, 60313 Frankfurt am Main,
F.R. Germany
TEL 49-69-29-72-95-0

Iran
Tehran Representative Office

3rd Floor, No.1, 14th Street, Khaled Eslamboli Avenue,
Tehran 15117, IranTEL 98-21-8872-6593

Italy
Milan Branch

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 Nederland N.V.
Madrid Representative Office

Calle Orense 34, Planta 6, Edificio Iberia Mart II,
28020 Madrid, SpainTEL 34-91-598-2905

The Netherlands

The Americas(Country/Region)
BahamasMizuho Bank (USA) Nassau Branch

308 East Bay Street, P.O. Box N-7768, Nassau, Bahamas

BrazilBanco Mizuho do Brasil S.A.

Avenida Engenheiro Luiz Carlos Berrini, 716- 10andar,
Brooklin Novo, São Paulo, SP, CEP. 04571-000, 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

Vancouver Office

Suite 305, South Tower, 5811 Cooney Road, Richmond,
British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Cayman Islands
Cayman Branch

P. O. Box 1353, Harbour Place, 5th Floor,
103 South Church Street, George Town,
Grand Cayman KY1-1108, Cayman Islands

Chile
Santiago Representative Office

Av. Apoquindo 3472, Piso 7, Las Condes, Santiago, Chile
TEL 56-2-3203-5773

MexicoMexico Representative Office

Europe, the Middle East and Africa

Mizuho Bank Nederland N.V.

(Country/Region)

Apollolaan 171, 1077 AS Amsterdam, The Netherlands
TEL 31-20-5734343

Torres E3, Blvd. Manuel Avila Camacho No.32,
Piso 7, Oficina 702 Col. Lomas de Chapultepec,
Delegacion Miguel Hidalgo, 11000, Mexico, D.F., Mexico
TEL 52-55-5281-5037

AustriaMizuho Bank-BA Investment
Consulting GmbH

TurkeyIstanbul Representative Office

U.S.A.
Chicago Branch

Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

Mizuho Bank Nederland 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 Nederland N.V.
Brussels Branch

Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

FranceParis Branch

Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

Office 813, Tekfen Tower 8th Floor,
Buyukdere Caddesi No.209, 4. Levent 34394, Istanbul,
TurkeyTEL 90-212-371-8474

U.A.E.

Dubai Branch

The Gate Village, Building Number 5, Level 2,
Dubai International Financial Centre, P.O.Box No:506607,
Dubai, United Arab Emirates
TEL 971-4-425-9200

United Kingdom
London Branch

Bracken House, One Friday Street, London, EC4M 9JA, UK
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) Limited

Bracken House, One Friday Street, London, EC4M 9JA, UK
TEL 44-20-3192-1300

RussiaAO Mizuho Bank (Moscow)

5th floor, 20, bld.1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
TEL 7-495-212-0333

311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

Los Angeles Branch

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

New York Branch

1251 Avenue of the Americas, New York, NY 10020, USA
TEL 1-212-282-3000

Park Avenue Branch

320 Park Avenue, New York, NY 10022, USA
TEL 1-212-282-3000

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
TEL 1-713-499-4800

San Francisco Representative Office

201 Mission St, #1234, San Francisco, CA 94105, USA
TEL 1-415-432-4492

135

Location of Overseas Offices
Mizuho Bank (USA)1251 Avenue of the Americas, New York, NY 10020, USA
TEL 1-212-282-3030

Mizuho Bank (USA) 		
Atlanta Representative Office

Beijing Representative OfficeMizuho Bank (USA) 		
Chicago Representative Office

Shanghai Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

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)Park Avenue Branch

320 Park Avenue, New York, NY 10022, USA
TEL 1-212-282-3030

Mizuho Bank (USA) 		
San Francisco Representative Office

201 Mission St, #1234, San Francisco, CA 94105, USA
TEL 1-415-432-4492

Mizuho Alternative Investments, LLC

757 Third Avenue, 8th Floor, New York, NY 10017, USA
TEL 1-212-282-4804

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York, NY 10018, USA
TEL 1-212-547-1500

Mizuho Desk(Country/Region)
Austria

Raiffeisen Bank International AG
Am Stadtpark 9, A-1030 Vienna, Austria
TEL 43-1-71707-1375

U.A.E.
Mashreqbank psc

Japan Desk, Mashreqbank Building 3F,Dubai Internet City,
Mashreqbank, P.O.Box 1250, Dubai, United Arab Emirates
TEL 971-4-363-2324/2285“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our customers financial services through various
institutions. (Transactions are conducted directly between
the customer and the local financial institution.)

Network of Mizuho Trust & Banking
Mizuho Trust & Banking(Luxembourg) S.A.

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-42-16-17-1

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York, NY 10020, USA
TEL 1-212-373-5900

136

Network of Mizuho Securities

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
TEL 86-10-6523-4779

17th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-8000

Mizuho Investment Consulting(Shanghai) Co., Ltd.

33rd Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-5888

Mizuho Investment Consulting(Shanghai) Co., Ltd. 		
Beijing Branch

6010, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District, Beijing 100022,
The People’s Republic of China
TEL 86-10-6526-7577

Mizuho Securities Asia Limited

12th Floor, Chater House, 8 Connaught Road, Central,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2685-2000

Mizuho Securities India Private Limited

Level 18, TOWER–A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
TEL 91-22-4353-7600

Mizuho Securities (Singapore) Pte. Ltd.
12 Marina View #10-01A, Asia Square Tower 2,
Singapore 018961
TEL 65-6603-5688

Mizuho Bank (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 		Frankfurt Office

An der Welle 4, 60322 Frankfurt am Main, Germany
TEL 49-69-4272-93001

Mizuho Securities USA Inc. 		
London OfficeMizuho House, 30 Old Bailey, London EC4M 7AU, U.K.
TEL 44-20-7776-5800

Mizuho Securities USA Inc.

320 Park Avenue, 12th Floor, New York, NY 10022, USA
TEL 1-212-209-9300

Mizuho Securities USA Inc.
Atlanta Office3455 Peachtree Road, 5th Floor, Atlanta, GA 30326, USA
TEL 1-404-995-6830

Mizuho Securities USA Inc. 		
Atlanta Office (Investment Banking)3353 Peachtree Road NE, Suite 500, Atlanta,
GA 30326, USA
TEL 1-404-364-1550

Mizuho Securities USA Inc.
Boston Office

125 High Street, 21st Floor, Boston, MA 02110, USA
TEL 1-617-235-1722

Mizuho Securities USA Inc.
Chicago Office

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
TEL 1-312-294-8800

Mizuho Securities USA Inc. 		
Chicago Office (Investment Banking)
311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

Mizuho Securities USA Inc.
Hoboken Office

Waterfront Corporate Center, 111 River Street, Suite 1100,
Hoboken, NJ 07030, USA
TEL 1-201-626-1000

Mizuho Securities USA Inc. 		
Houston Office (Investment Banking)2700 Post Oak Boulevard, Suite 1270, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Securities USA Inc. 		
Los Angeles Office (Investment Banking)
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Mizuho Securities USA Inc. 		
New York Office (Investment Banking)1251 Avenue of the Americas, 30th Floor,
New York, NY 10020, USA
TEL 1-212-282-3000

Mizuho Securities USA Inc. 		
San Francisco Office

3 Embarcadero Center, Suite 1620, San Francisco,
CA 94111, USA
TEL 1-415-268-5500

Mizuho Securities USA Inc.
San Francisco Office (Investment Banking)
201 Mission Street, 12th Floor, San Francisco,
CA 94105 USA
TEL 1-415- 432-4492

Mizuho Securities USA Inc.
Philadelphia Office

Two Logan Square, 100 N. 18th Street, Suite 326,
Philadelphia, PA 19103 USA
TEL 1-267- 207-3541

Network of DIAM
DIAM Asset Management (HK) Limited
Suites 1221-22, Two Pacific Place, 88 Queensway, Hong
Kong, S.A.R, The People’s Republic of China
TEL 852-2918-9030

DIAM SINGAPORE PTE. LTD.

2 Shenton Way #12-01 SGX Centre I, Singapore 068804
TEL 65-6532-5470

DIAM U.S.A., Inc.

400 Park Avenue, 4th Floor, New York, NY 10022, USA
TEL 1-212-350-7650

DIAM International Ltd

Mizuho House, 30 Old Bailey, London, EC4M 7AU, UK
TEL 44-207-090-6591

Investor Information(Eleventh Series Class XI Preferred Stock)

Date of Establishment
January 8, 2003

Shares held

Paid-in Capital¥ 2,255.7 billion

1Issued Shares
25,945,277,657 shares
Common Stock: 25,030,525,657 shares
Eleventh Series Class XI Preferred Stock: 914,752,000 shares
Number of Shareholders
Common Stock: 981,319
Eleventh Series Class XI Preferred Stock: 649
Major Shareholders (Common Stock)
Shares held

Percentageof shares
outstanding(%)

1

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,129,574,200

4.51

2

The Master Trust Bank of Japan, Ltd.
(Trustee account)821,774,700

3.28

3

Japan Trustee Services Bank, Ltd.
(Trustee account 9)559,050,700

2.23

4

THE BANK OF NEW YORKMELLON SA/NV 10

416,016,531

1.66

5

STATE STREET BANKWEST CLIENT - TREATY 505234

374,193,016

1.49

303,932,700

1.21

6 Nomura Securities Co., Ltd.
7

Japan Trustee Services Bank, Ltd.
(Trustee account 7)

299,745,300

1.19

8

Japan Trustee Services Bank, Ltd.
(Trustee account 5)285,004,500

1.13

9

Japan Trustee Services Bank, Ltd.
(Trustee account 6)284,944,400

1.13

10

Japan Trustee Services Bank, Ltd.
(Trustee account 1)

283,683,600

1.13

Chubu Electric Power Company,
Incorporated

Percentageof shares
outstanding(%)

5,000,000

5.05

2 SAPPORO HOLDINGS LIMITED

2,000,000

2.02

2 SOHGO SECURITY SERVICES CO., LTD.

2,000,000

2.02

2 SoftBank Group Corp.

2,000,000

2.02

2 Century Tokyo Leasing Corporation

2,000,000

2.02

2 TOSOH CORPORATION

2,000,000

2.02

2 MATSUBARA–KOSANCORPORATION

2,000,000

2.02

8 Ajinomoto Co., Inc.

1,500,000

1.51

8 INPEX CORPORATION

1,500,000

1.51

8 SEIHOKU CORPORATION

1,500,000

1.51

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 thetreasury stock (815,828,400 shares). Furthermore, the treasury stock is
not included in the above list of major shareholders.
(As of March 31, 2016)

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 thetreasury stock (6,939,703 shares).

137

Investor Information
Stock Listing

Record Date for Distribution of Dividends from Surplus(Common Stock)

The record dates for distribution of dividends from surplus of theCompany shall be March 31 and September 30 of each year.

Tokyo Stock Exchange

Accounting Auditors
Ernst & Young ShinNihon LLC

Shareholder Register Manager

ADR* Information

Mizuho Trust & Banking Co., Ltd.

Outline of Mizuho Financial Group’s ADR

Share Unit

1. Exchange :2. Ticker Symbol :3. CUSIP :4. Conversion ratio :5. Depositary bank :
			
			
			
			
			
6. Local custodian bank :100 sharesFiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
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.

Record Date
1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register of shareholders as of the end of March 31 of each year as the shareholders who are entitled to exercise their rights at the ordinary
general meeting of shareholders for the relevant businessyear.
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 adetermination by Executive Officer(s) under the authority
delegated by the Board of Directors and upon giving a priorpublic notice thereof.

Organizations that Decide Dividends from Surplus, Etc.
The Company shall decide distribution of dividends fromsurplus and other matters provided for in each item of Article
459, Paragraph 1 of the Companies Act of Japan, not by aresolution of a general meeting of shareholders, but by aresolution of the Board of Directors, unless otherwise provided for in laws or regulations.
138

New York Stock Exchange
MFG
60687Y109
1 ADR = 2 common shares
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
Mizuho Bank, Ltd.

* ADRs are securities issued for the purpose of trading in the U.S. in place of
the underlying stock of foreign companies. As ADRs are registered with the
SEC as U.S. securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of U.S. companies. ADR is anacronym for American Depositary Receipts.

Disclosure Policy
Basic Principles
We are committed to growing together with our customers in astable and sustainable manner and bringing together our groupwide expertise to contribute to the prosperity of economies andsocieties 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 both in and outside Japan in a fair,timely and appropriate manner, in order that they may form
proper judgments and appraisals of the group. To achieve thisaim, we observe applicable domestic and international laws andregulations as well as stock exchange rules relating to corporate
disclosure, and we establish and implement appropriate
Disclosure Controls and Procedures.

Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws andregulations as well as stock exchange rules and to implement
fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carried out
by directors, officers and employees of Mizuho Financial Groupand include Internal Controls over Financial Reporting designed to provide reasonable assurance regarding the reliabilityof Financial Reporting and the Preparation of Financial
Statements. We have established the basic principles underlying our Disclosure Controls and Procedures as well as ourinternal rules related to Disclosure Controls and Proceduresthat govern the management framework for the entire
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 Committee that is responsiblefor discussing and coordinating matters relating to Disclosure
Controls and Procedures.
(2) Evaluation of Effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented, andevaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly by reviewing
the contents of such documentation and their implementation. In addition, evaluation of the effectiveness and appropriateness of Disclosure Controls and Procedures is conducted
through internal audits.
(3) Others
We established a “Code of Ethics for Financial Professionals”
to be observed by all directors and executive officers, as well

as all managers and other employees within Mizuho Financial
Group who engage in financial reporting, accounting or
disclosure. We have also developed the “Internal Controls
and Audit Hotline”, a system designed for obtaining concerns
regarding questionable accounting or auditing matters fromboth inside and outside Mizuho Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and internationallaws 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 through the information distribution systems of domestic and international stock exchanges
and through press releases. We also endeavor to disclose
other information in a fair, timely and appropriate manner.
When we disclose such information, we basically publish on
our website the information we disclose. In addition, we
endeavor to utilize the latest disclosure methods and tools toprovide more fair and widespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above, andwith 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 as well as stock
exchange rules, we endeavor to grasp properly the types of
information desired by the market and to disclose useful andappropriate information voluntarily and proactively. Regarding
disclosure of 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 by representatives of Mizuho Financial Group we endeavor to limit carefully
our explanations to matters already disclosed and facts
commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding Mizuho
Financial Group in the market due to the spread of rumors orotherwise, we endeavor to investigate their causes andcorrect such misconceptions promptly.
139

Privacy Policy Regarding Customer Information
Mizuho Financial Group, Inc. (“MHFG”) hereby establishes andannounces the “Privacy Policy Regarding Customer Information”(“this Policy”), which sets forth MHFG’s policies for protecting
customers’ personal information and MHFG’s basic approach inhandling customers’ personal information (including the customers’ Individual Number and personal information containing theIndividual Number (hereafter collectively referred to as “Specific
Personal Information, etc.”)), applicable to Mizuho Financial
Group which is composed of MHFG, its consolidated subsidiaries
and affiliates (which are accounted for by the equity method)that are listed in MHFG’s Financial Reports.

• Mizuho Financial Group entrusts management of personal
information that is necessary to achieve the purpose of use
to a third party.
• Mizuho Financial Group is one of the parties in a consolidation transaction.
• Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.
However, with respect to Specific Personal Information etc.,
Mizuho Financial Group will not provide it to third parties except
in cases specified in the “Act on the Use of Numbers to Identify aSpecific Individual in the Administrative Procedure”.

Policy of Management

Handling of Sensitive Information

Mizuho Financial Group recognizes appropriate protection anduse of personal information to be important social responsibilities, and makes every effort to appropriately protect and use
personal information complying with laws and regulations
including the “Personal Data Protection Law in Japan”, “Act on
the Use of Numbers to Identify a Specific Individual in the
Administrative Procedure” and other related regulations and theinternal rules of Mizuho Financial Group, including this Policy
when Mizuho Financial Group conducts business.

Mizuho Financial Group will not acquire, use and provide to any
third party sensitive information (e.g. political views, religion,
participation in labor union, race, ethnic group, family origin,legal address on family registry and medical information) unlessauthorized by law or it is necessary to conduct business on
condition that Mizuho Financial Group has customer consent.

Proper Acquisition
Mizuho Financial Group will acquire personal information that isnecessary to conduct its business by proper and lawful means.

Security Measures / Safeguards
Mizuho Financial Group will maintain and manage accurate andup-to-date personal information, and prevent leakage of information with necessary and appropriate security measures.
Moreover, it will conduct necessary and appropriate supervisionof employees and service providers (including subcontractors,etc.) of who handles personal information.

Purpose of Use
Mizuho Financial Group will specify the purpose of use of personal information and will handle the personal information
within the scope necessary to achieve that purpose, and will notuse it beyond that scope.
In cases where special restrictions exist on the use of particularpersonal information under laws and/or regulations such as theuse of the Individual Number under the “Act on the Use of
Numbers to Identify a Specific Individual in the Administrative
Procedure”, Mizuho Financial Group will not handle that particular personal information for purposes not relevant to said matters.
The purpose of use of personal information is set forththrough the web site or other measures provided by each company of the Mizuho Financial Group.

Providing Personal Information to Third Parties
Mizuho Financial Group will not provide personal information to
any third party in principle unless the individual concerned has
agreed to such use or it is authorized by law. However, Mizuho
Financial Group may provide personal information to relevant
entities that are otherwise specified without customer consent infollowing cases:

140

Continuous Improvement
Mizuho Financial Group will continuously review this Policy
according to the development of information technologies andthe changes in social demand, and improve the handling of
personal information.

Customer Requests concerning retained Personal Data
Mizuho Financial Group will endeavor to properly and promptly
cope with following requests from customers:• notification of the purpose of use• disclosure of retained personal data
• correction, addition and deletion of retained personal datathat do not reflect the facts• suspension of use and elimination of retained personal data• suspension of providing retained personal data to a third party

Comments & Requests
Mizuho Financial Group will endeavor to cope with customer’scomments and requests for the management of personal information sincerely and promptly.

Financial Analysis[Under Japanese GAAP]142

Key Indicators of Mizuho Financial Group, Inc.

144

Status of Asset Quality

141

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

Total Income
Profit Attributable to Owners of Parent (Note 1)
Comprehensive Income
Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities

2016

¥

Net Assets per Share (Yen) (Note 2)
Profit Attributable to Owners of Parent
per Share (Yen) (Note 2)
Diluted Profit Attributable to Owners of Parent
per Share (Yen) (Note 2)

3,235.6670.9
304.5
9,353.2
193,458.5
117,456.6
73,708.8
39,505.9

2015¥

3,180.8
611.9
1,941.09,800.5
189,684.7
113,452.4
73,415.1
43,278.7

2014¥

2,940.7
688.4
832.9
8,304.5
175,822.8
101,811.2
69,301.4
43,997.5

2013¥

2,914.0
560.5
1,270.8
7,736.2
177,411.0
99,568.7
67,536.8
53,472.3

2012¥

2,808.5
484.5
627.5
6,869.2
165,360.5
90,636.6
63,800.5
51,392.8

322.46322.86253.25229.70187.19

26.94

24.91

28.18

22.96

20.62

26.42

24.10

27.12

22.05

19.75

/

/

/

/

15.50%

Total Capital Ratio(International Standard (Basel III)) (Note 3)

15.41%

14.58%

14.36%

14.19%/

Tier 1 Capital Ratio(International Standard (Basel III)) (Note 3)

12.64%

11.50%

11.35%

11.03%/

Common Equity Tier 1 Capital Ratio(International Standard (Basel III)) (Note 3)

10.50%

9.43%

8.80%

8.16%

/

8.3%
6.23x

8.6%
8.47x

11.6%
7.23x

10.9%
8.66x

11.3%
6.54x

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

4,104.1
3,687.8(521.0)6,654.9
2,619.2(903.4)(2,286.0)
10,607.4(305.7)

5,858.6(749.6)(283.8)4,163.0(6,175.6)(680.6)

Cash and Cash Equivalents at the end of the fiscal year

35,089.1

27,840.7

19,432.4

11,347.5

6,483.1

Capital Adequacy Ratio (BIS Standard) (Note 3)

Net Return on Equity
PER (Times)

Notes: 1.	We have applied “Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013) and others and presentation of Net Income has been changed to Profit
Attributable to Owners of Parent from this fiscal year ended March 31, 2016.
2.	“Net Assets per Share,” “Profit Attributable to Owners of Parent per Share” and “Diluted Profit Attributable to Owners of Parent per Share” are calculated in accordance with “Revised
Accounting Standard for Earnings per Share” (ASBJ Statement No. 2, September 13, 2013) and “Revised Guidance on Accounting Standard for Earning per Share” (ASBJ Guidance No. 4,
September 13, 2013).
3. Capital Adequacy Ratio, 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 inconsideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20, March
27, 2006). Mizuho Financial Group, Inc. has applied the new framework(Basel III) starting the fiscal year ended March 31, 2013.

142

Billions of yen

As of or for the Fiscal Years ended March 31,

Operating Income
Net Income
Common Stock and Preferred Stock
Number of Shares Issued and Outstanding
Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

2016

¥

333.5
304.3
2,255.7

2015

¥

377.7
349.0
2,255.4

2014

¥

316.8
285.8
2,254.9

2013

¥

262.1
241.3
2,254.9

2012

¥

37.7
10.2
2,254.9

25,030,525,657 shares 24,621,897,967 shares 24,263,885,187 shares 24,164,864,477 shares 24,048,165,727 shares
914,752,000 shares
914,752,000 shares
914,752,000 shares
914,752,000 shares
914,752,000 shares— shares— shares— shares36,690,000 shares
36,690,000 shares

Net Assets
5,197.2
Total Assets
7,064.2
203.58Net Assets per Share (Yen) (Note 1)
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)
7.5
Common Stock		Eleventh Series Class XI Preferred Stock		20
Thirteenth Series Class XIII Preferred Stock (Note 2)—
Common Stock		
3.75
Eleventh Series Class XI Preferred Stock		
10
Thirteenth Series Class XIII Preferred Stock (Note 2)—
12.17
Net Income per Share (Yen) (Note 1)
11.98
Diluted Net Income per Share (Yen) (Note 1)
13.81xPER (Times)
61.62%
Dividend Propensity

5,096.2
6,603.1
198.154,900.4
6,251.3
188.904,788.9
6,202.1
182.43

4,688.3
6,128.4
177.82

7.5
20
—
3.5
10
—
14.11
13.74
14.95x53.12%

6.5
20
—
3
10
—
11.53
11.25
17.68x56.33%

6
20
30
3
10
15
9.69
9.46
20.53x61.91%

6
20
30
3
10
15
0.06
0.06
2,017.69x
8,967.54%

Notes: 1.	“Net Assets per Share,” “Net Income per Share” and “Diluted Net Income per Share” are calculated in accordance with “Revised Accounting Standard for Earnings per Share” (ASBJ Statement
No. 2, September 13, 2013) and “Revised Guidance on Accounting Standard for Earning per Share” (ASBJ Guidance No. 4, September 13, 2013).
2. As Mizuho Financial Group Inc. acquired and cancelled all of the Thirteenth Series Class XIII Preferred Stock as of July 11, 2013, the cash dividends per share of the Thirteenth Series Class XIII
Preferred Stock for and after fiscal 2013 have not been recorded.

143

Financial Analysis

Status of Asset Quality

Credit-related Costs
Credit-related Costs (Consolidated)

Billions of yen

For the Fiscal Years ended March 31,

2016

2015

ChangeCredit-related Costs
¥
30.4
¥
4.6
¥
25.7
Expenses related to Portfolio Problems (including Reversal of 				(Provision for) General Reserve for Possible Losses on Loans)
47.7
87.0
(39.3)
Losses on Write-offs of Loans
Gains on Reversal of Reserves for Possible Losses on Loans and others
Credit Costs for Trust Accounts

46.6(17.2)—

84.5(82.3)—(37.8)
65.0—

Overview of Non-performing Loans (NPLs) as of March 31, 2016 (the Two Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Categorization

NonCategory II
Categorization

Bankrupt and Substantially
Bankrupt Obligors
68.0

Collateral, Guarantees, etc.:
60.5
Reserves for Possible Losses:
7.4

Reserve
Ratio
100%

291.4

59.3

Collateral, Guarantees, etc.:
176.1
Reserves for Possible Losses:
115.3

Reserve
Ratio
66.0%

ObligorCategory III

Category IV

68.0

Watch Obligors

Intensive Control
Obligors
350.8

Claims for Special
Attention
398.4

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
81,815.3

Reserve Ratio against
Uncovered Portion
41.4%
Collateral, Guarantees, etc.:
155.0
Reserves for Possible Losses:
100.7

DirectWrite-offs

2. Disclosed Claims under
the Financial Reconstruction Act (FRA)

3. Non-Accrual, Past
Due & Restructured
Loans

Claims against Bankrupt
and Substantially Bankrupt
Obligors
68.0

Loans to Bankrupt Obligors
21.9

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 67.7%·Reserve Ratiofor Uncovered Portion: 44.3%·Reserve Ratio
against Total amount ofClaims: 25.7%
Reserve Ratio
against Total amount of Claims·Other Watch Obligors: 3.66%·Normal Obligors: 0.07%

Claims with Collection Risk
350.8

Non-Accrual
Delinquent Loans
353.0

Coverage Ratio 83.0%
43.7 (Note 2)

Claims for Special
Attention (Note 1)
398.4
Coverage Ratio 64.2%

Loans Past Due forThree Months or More
0.9
Restructured Loans
397.5

Total Coverage
Ratio 75.3%

Total
817.2

Total
773.4

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRA represents the amount of claims other than loans included in Disclosed Claims
under the FRA.

144

Status of Disclosed Claims under the FRA
Disclosed Claims under the FRA (Consolidated)(Consolidated)

Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2016

2015

Change

¥

83.1
361.2
464.0

¥

77.3
404.2
618.4

¥

5.8
(42.9)(154.4)¥908.4¥ 1,100.0¥(191.5)

2016

2015

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs

Billions of yen

¥

157.3

¥

226.6

Change¥(Trust Accounts)

Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2016

2015

Change

¥

—
2.8
—

¥

—
2.9
—

¥

—
(0.1)
—

¥

2.8

¥

2.9

¥

(0.1)

(Consolidated and Trust Accounts)

Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total(69.2)

2016

2015

Change

¥

83.1
364.1
464.0

¥

77.3
407.2
618.4

¥

5.8
(43.0)(154.4)¥911.3¥ 1,103.0¥(191.6)145

Financial Analysis

Status of Asset Quality

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans

Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2016

2015

Change

¥

24.3
396.7
0.9
463.1

¥

10.2
425.7
3.4
614.9

¥

14.0
(29.0)(2.5)(151.8)¥885.0¥ 1,054.4¥(169.3)

2016

2015

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Amount of Partial Direct Write-offs

Billions of yen

¥

143.9

¥

205.0

Change¥(61.0)

Ratio to Total Loans%

As of March 31,

2016

2015

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.03%
0.53
0.00
0.62

0.01%
0.57
0.00
0.83

0.01%
(0.04)(0.00)(0.20)

1.20%

1.43%

(0.23)%

2016

2015

ChangeNon-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

¥

459.5
304.8
154.6
0.0

¥

525.4
344.4
180.3
0.6

¥

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2016

Amount of Partial Direct Write-offs(65.9)(39.6)(25.6)
(0.5)

¥

157.8

2015

¥

227.2

Change¥(69.4)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans
2016

2015

ChangeAfter Partial Direct Write-offs

51.92%

49.83%

2.08%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

146%

As of March 31,

(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans

Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2016

2015

Change

¥

—
2.8
—
—

¥

—
2.9
—
—

¥

—
(0.1)
—
—

¥

2.8

¥

2.9

¥

(0.1)

Ratio to Total Loans%

As of March 31,

2016

2015

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
20.84
.—.
.—

.—%
18.68
.—.
.—

.—%
2.15
.—
.—

20.84%

18.68%

2.15%

2016

2015

ChangeNon-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans

Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥

24.3
399.6
0.9
463.1

¥

¥

887.9

¥ 1,057.4¥ (169.4)

As of March 31,

2016

2015

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.03%
0.54
0.00
0.62

0.01%
0.58
0.00
0.83

0.01%
(0.04)(0.00)(0.20)

1.20%

1.44%

(0.23)%

Total

10.2
428.7
3.4
614.9

¥

14.0
(29.1)(2.5)(151.8)

Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans%

Note: Above figures are presented net of partial direct write-offs.

147

Financial Analysis

Status of Asset Quality

Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)

Billions of yen, %

2016
2015
ChangeOutstanding		Outstanding		Outstanding
Balance Composition
Balance Composition
Balance Composition

As of March 31,

Domestic Total (excluding Loans Booked Offshore) ¥ 52,074.3
8,152.9
Manufacturing
Agriculture & Forestry
44.8
1.2
Fishery
Mining, Quarrying Industry & Gravel Extraction Industry
234.5
Construction
729.2
2,365.0
Utilities
1,299.5
Communication
Transportation & Postal Industry
2,252.6
4,999.4
Wholesale & Retail
Finance & Insurance
3,700.0
6,869.3
Real Estate
Commodity Lease
1,988.7
2,666.3
Service Industries
Local Governments
913.7
2,480.7
Governments
Other
13,375.8

100.00%
15.66
0.09
0.00
0.45
1.40
4.54
2.50
4.33
9.60
7.10
13.19
3.82
5.12
1.75
4.76
25.69

¥ 52,540.1
7,953.8
42.3
0.9
264.0
758.4
2,424.5
1,231.3
2,283.1
5,047.1
3,915.8
6,453.1
1,784.4
2,488.9
1,005.5
3,605.2
13,281.1

100.00%
15.14
0.08
0.00
0.50
1.44
4.62
2.34
4.35
9.61
7.45
12.28
3.40
4.74
1.91
6.86
25.28

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

21,634.5
979.7
5,202.7
15,452.0

100.00
4.53
24.05
71.42

20,874.9681.9
5,252.8
14,940.1

100.00
3.27
25.16
71.57

¥ 73,708.8/¥ 73,415.1

/

Total

¥

¥

(465.7)
199.1
2.5
0.3
(29.4)(29.1)(59.5)
68.2(30.4)(47.6)(215.8)
416.2
204.2
177.4
(91.7)(1,124.5)
94.7/0.52)%
0.01
0.00(0.05)(0.04)(0.08)
0.16(0.02)(0.01)(0.35)
0.91
0.42
0.38
(0.16)(2.10)
0.41

759.5
297.8
(50.1)
511.8

/
1.26
(1.11)(0.15)

293.7/

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.

Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2016

Billions of yen, %As of March 31, 2015

Billions of yen, %Argentina

¥

0.0

Egypt
Argentina

¥

5.2
0.0

Total
Ratio to Total Assets

¥

0.0
0.00%

Total
Ratio to Total Assets

¥

5.2
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.

148

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

150

Independent Auditors’ Report

151

Consolidated Financial Statements

163

Notes to Consolidated Financial Statements

149

Financial Data of Mizuho Financial Group, Inc.

Independent Auditors’ Report

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc., which comprise theconsolidated balance sheet as of March 31, 2016, and the consolidated statements of income, comprehensive income, changes
in net assets, and cash flows for the year then ended and a summary of significant accounting policies and other explanatory
information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for designing and operating such internal control as management
determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit of the consolidated
financial statements is not to express an opinion on the effectiveness of the entity’s internal control, but in making these risk
assessments the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Mizuho Financial Group, Inc. as of March 31, 2016, and their consolidated financial performance and cash
flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for the convenience ofreaders, and, in our opinion, the accompanying consolidated financial statements have been properly translated on the basis
described in Note 1.

June 23, 2016
Tokyo, Japan
150

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2016

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 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)
Reserve for Possible Losses on Investments
Total Assets¥

36,315,471
893,545
7,805,798¥

2015

29,096,166
444,115
8,582,239

Thousands of
U.S. dollars (Note 1)
2016$

322,259,927
7,929,232
69,267,888

3,407,390
2,979,797
13,004,522
175,638
39,505,971
73,708,884
1,447,743
3,157,752
4,144,131
1,085,791
804,567
646,428
36,517
4,798,158(459,531)—

4,059,340
3,239,831
10,781,735
157,728
43,278,733
73,415,170
1,623,736
3,544,243
4,066,424
1,078,051
657,556
743,382
36,9385,404,843(525,486)(2)

30,236,851
26,442,430
115,400,860
1,558,603
350,572,113
654,085,410
12,847,131
28,021,588
36,774,612
9,635,211
7,139,650
5,736,345
324,052
42,578,387(4,077,837)—¥ 193,458,580¥ 189,684,749$ 1,716,732,453

151

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheetー(Continued)
Millions of yen
2016

As of March 31,

Thousands of
U.S. dollars (Note 1)
2015

Liabilities and Net Assets
Liabilities
Deposits (Notes 17, 18 and 41)¥ 117,456,604 ¥ 113,452,451
Call Money and Bills Sold (Notes 17, 19 and 41)
2,521,008
5,091,198
Payables under Repurchase Agreements (Notes 17 and 41)
16,833,346
19,612,120
Guarantee Deposits Received under Securities Lending
Transactions (Notes 17 and 41)
2,608,971
2,245,639
Commercial Paper (Note 20)
1,010,139
538,511
Trading Liabilities (Notes 10 and 41)
10,276,133
8,743,196
Borrowed Money (Notes 17, 21 and 41)
7,503,543
7,195,869
Foreign Exchange Liabilities (Note 13)492,473473,060
Short-term Bonds (Note 22)648,381816,705
Bonds and Notes (Notes 23 and 41)
6,120,928
6,013,731
Due to Trust Accounts (Note 41)
5,067,490
1,780,768
Derivatives other than for Trading Liabilities (Notes 41 and 43)
2,571,597
3,474,332
Other Liabilities (Note 24)
5,532,596
4,261,955
Reserve for Bonus Payments
62,171
59,869Reserve for Variable Compensation
2,836—
Net Defined Benefit Liability (Note 25)
51,51447,518Reserve for Director and Corporate Auditor Retirement Benefits
1,685
1,527
Reserve for Possible Losses on Sales of Loans
267
13
Reserve for Contingencies
5,271
7,845
Reserve for Reimbursement of Deposits
16,15415,851
Reserve for Reimbursement of Debentures
39,24548,878Reserves under Special Laws
2,024
1,607
Deferred Tax Liabilities (Note 27)
414,799524,321
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 28)
67,991
72,392
Acceptances and Guarantees (Note 26)
4,798,158
5,404,843

2016$ 1,042,298,380
22,371,182
149,377,462
23,151,759
8,963,882
91,189,403
66,585,710
4,370,164
5,753,675
54,316,516
44,968,414
22,820,105
49,095,721
551,705
25,167457,131
14,9592,370
46,779143,356
348,258
17,9623,680,886
603,347
42,578,387

Total Liabilities
Net Assets
Common Stock and Preferred Stock (Note 29)
Capital Surplus
Retained Earnings
Treasury Stock (Note 29)¥ 184,105,335¥ 179,884,211$ 1,633,732,680

¥

¥

$

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
Stock Acquisition Rights (Note 30)
Non-controlling Interests
Total Net Assets
Total Liabilities and Net Assets

6,559,962
1,296,039
165,264
148,483(53,689)
51,752
1,607,851
2,762
1,182,668
9,353,244¥ 193,458,580

2,255,790
1,110,164
3,197,616(3,609)See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

152

2,255,404
1,110,006
2,769,371(3,616)

6,131,166
1,737,348
26,635
146,419(40,454)
160,005
2,029,955
3,820
1,635,595
9,800,538¥ 189,684,749

20,017,666
9,851,493
28,375,336(32,033)

58,212,462
11,500,930
1,466,537
1,317,631(476,434)
459,251
14,267,915
24,515
10,494,881
82,999,773$ 1,716,732,453

Consolidated Statement of Income

2015

Thousands of
U.S. dollars (Note 1)2016¥ 1,426,256
53,458751,712313,106
326,065
365,036¥ 1,468,976
52,641
729,341
262,963
365,264
301,652$ 12,656,461
474,386
6,670,619
2,778,478
2,893,476
3,239,302

3,235,636

3,180,840

28,712,722

422,574
144,160
2,598
79,6501,349,593
228,807339,543
135,981—
155,924
1,351,611
207,147

3,749,883
1,279,266
23,063706,810
11,976,156
2,030,413

2,227,384
1,008,252

2,190,208
990,632

19,765,591
8,947,131

216,354(3,065)69,260282,549
725,70254,759260,799(531)
44,723304,992
685,640
73,705

1,919,912(27,204)
614,6092,507,317
6,439,814
485,928

Millions of yen
2016

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 (Note 30)
Other Expenses (Note 36)
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Refund of Income Taxes
Deferred
Total Income Taxes
ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent¥

670,943¥

611,935$

5,953,886

153

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Per Share of Common Stock
Yen
2016

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

26.94
26.42
7.50

2015

¥

24.91
24.10
7.50

U.S. dollars (Note 1)
2016

$

0.24
0.23
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
2016

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
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent:
Comprehensive Income Attributable to Non-controlling Interests:¥¥¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

154

2015

725,702 ¥(421,108)(438,896)
138,829
3,630(10,712)(109,362)

685,640
1,255,433
1,004,848
33,252
7,531
15,144
183,108(4,597)
304,594 ¥
250,405 ¥54,188

11,548
1,941,073
1,862,651
78,422Thousands of
U.S. dollars (Note 1)
2016

$

$
$

6,439,814(3,736,873)(3,894,723)
1,231,959
32,217(95,061)(970,471)(40,794)
2,702,941
2,222,075
480,866

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStock andPreferred
Stock

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,255,404 ¥ 1,110,006¥ 2,769,371¥ (3,616)¥ 6,131,166

935(48,999)¥ 2,255,404 ¥ 1,110,942¥ 2,720,371(48,063)¥ (3,616)¥ 6,083,102

Changes during the period
Issuance of New Shares

386

386

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

772(195,264)(195,264)

670,943

670,943

81

(653)

(653)

659

741

1,566

1,566

(1,245)(1,245)Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod386(777)

477,2446

476,859¥ 2,255,790 ¥ 1,110,164¥ 3,197,616¥ (3,609)¥ 6,559,962

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

155

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities¥ 1,737,348 ¥Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

26,635 ¥ 146,419 ¥(40,454)

Remeasurements ofDefinedBenefit Plans

Stock
NonTotal
Accumulated Acquisition Controlling
RightsInterests
Other
Comprehensive
Income¥ 160,005¥

2,029,955 ¥Total
Net Assets

3,820 ¥1,635,595 ¥ 9,800,538(48,063)¥ 1,737,348 ¥

26,635 ¥ 146,419 ¥(40,454)¥ 160,005¥

2,029,955 ¥

3,820 ¥1,635,595 ¥ 9,752,474

Changes during the period772

Issuance of New Shares(195,264)

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 theperiod670,943
(653)
741
1,566
(1,245)(441,308)

138,628

2,064(13,235)(108,252)(422,104)(1,057) (452,927)(876,089)(441,308)

138,628

2,064(13,235)(108,252)(422,104)(1,057) (452,927)(399,230)

1,607,851 ¥

2,762 ¥1,182,668 ¥ 9,353,244¥ 1,296,039 ¥

165,264 ¥ 148,483 ¥ (53,689)¥

51,752

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

156¥

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStock andPreferred
Stock

Retained
Earnings

Total
Treasury
Shareholders'
Stock
Equity¥ 2,254,972 ¥ 1,109,508 ¥ 2,315,608¥ (3,874) ¥ 5,676,215

16,107

16,107¥ 2,254,972 ¥ 1,109,508 ¥ 2,331,715¥ (3,874) ¥ 5,692,322

CapitalSurplus

Changes during the period
Issuance of New Shares

431

431

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock

863
(176,136)(176,136)

611,935

611,935

66

Transfer from Revaluation
Reserve for Land

(273)

(273)

531

598

1,856

1,856

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod431

498

437,655¥ 2,255,404 ¥ 1,110,006 ¥ 2,769,371

258

438,843¥ (3,616) ¥ 6,131,166

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

157

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2015

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges¥ 733,522 ¥Revaluation
Reserve forLand(6,677) ¥140,745

Foreign
Currency
Translation
Adjustments

Remeasure-ments ofDefinedBenefitPlans¥ (63,513) ¥ (22,979)

Total
Accumulated
Other
Comprehensive
Income¥Stock
Acquisition
Rights781,096 ¥NonControlling
Interests

3,179 ¥ 1,844,057 ¥ 8,304,549
573¥ 733,522 ¥(6,677) ¥140,745¥ (63,513) ¥ (22,979)¥

781,096 ¥Total
Net Assets

16,681

3,179 ¥ 1,844,631 ¥ 8,321,230

Changes during the period863

Issuance of New Shares(176,136)

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock

611,935(273)

Disposition of Treasury
Stock

598

Transfer from Revaluation
Reserve for Land

1,856

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod

1,003,826

33,313

5,674

23,059

182,985

1,248,859

640(209,035)

1,040,464

1,003,826

33,313

5,674

23,059

182,985

1,248,859

640(209,035)

1,479,307¥1,737,348 ¥

26,635 ¥146,419¥ (40,454) ¥ 160,005

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

158¥ 2,029,955 ¥

3,820 ¥ 1,635,595 ¥ 9,800,538

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

Common Stockand Preferred
Stock

CapitalSurplusRetained
Earnings$ 20,014,240 $ 9,850,091$ 24,575,127 $8,304

Treasury
Stock

Total
Shareholders'Equity(32,088)$ 54,407,370(434,815)$ 20,014,240 $ 9,858,395 $24,140,312(426,511)$ (32,088)$ 53,980,859

Changes during the period
Issuance of New Shares

3,426

3,426

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

6,852(1,732,761)(1,732,761)

5,953,886

5,953,886

723(5,798)(5,798)

5,853

6,576

13,89913,899(11,051)(11,051)

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod3,426(6,902)4,235,024

55

4,231,603$ 20,017,666 $ 9,851,493 $28,375,336$ (32,033)$ 58,212,462

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

159

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

RemeasureTotal
ments ofAccumulated
Defined
Other
Benefit Comprehensive
Plans
IncomeStock
Acquisition
RightsDeferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments$ 15,417,062 $ 236,361$1,299,313$ (358,988) $ 1,419,877 $ 18,013,625 $NonControlling
Interests

Total
Net Assets

33,901 $14,514,117 $86,969,013(426,511)$ 15,417,062 $ 236,361$1,299,313$ (358,988) $ 1,419,877 $ 18,013,625 $

33,901 $14,514,117 $86,542,502

Changes during the period
Issuance of New Shares

6,852

Cash Dividends(1,732,761)

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 theperiod5,953,886(5,798)6,576
13,899(11,051)(3,916,132)

1,230,176

18,318(117,446)(960,626)(3,745,710)(9,386) (4,019,236) (7,774,332)(3,916,132)

1,230,176

18,318(117,446)(960,626)(3,745,710)(9,386) (4,019,236) (3,542,729)$11,500,930 $ 1,466,537$1,317,631$ (476,434)$459,251$14,267,915 $

24,515 $10,494,881 $82,999,773

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

160

Consolidated Statement of Cash Flows
Millions of yen
2016

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
Investments
Increase (Decrease) in Reserve for Possible Losses on Sales of
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
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

2015

Thousands of
U.S. dollars (Note 1)
2016¥ 1,008,252
159,9534,412
830(24,299)(53,529)¥ 990,632
156,946
11,3583,698(15,052)(103,554)

(2)

(25)

(23)

253
(678)
3,918
2,836
(65,012)
3,123(1,245)
1,600
5,113
—
(38,437)
4,297

2,253
(6,023)34,76925,167(576,916)
27,718

157
303

(19)
(600)

1,402
2,694

(9,633)(1,426,256)
422,574(356,138)(178)
470,492(2,729)(2,450,614)
1,716,637
291,667(6,078)(1,468,976)
339,543(219,340)(145)(645,471)
8,541
999,513359,772(639,290)(85,485)(12,656,461)
3,749,883(3,160,342)(1,581)
4,175,104(24,219)(21,746,516)
15,233,269
2,588,232(821,313)(1,784,739)
5,569,737

386,732(2,289,581)
9,815,972(7,288,251)(15,837,602)
49,425,308

459,006(544,370)

4,073,182(295,214)(60,388)471,141
918,102(2,619,701)(535,886)

651,949(4,087,190)
505,568

951,399(1,521,429)(253,152)

5,785,340(36,269,329)
4,486,362

363,332
99,35820,826(168,323)(177,448)(3,839,692)
88,558
149,446
232,137¥ 992,919

3,224,175
881,697
184,813(1,493,689)(1,574,663)

¥

$

$

8,947,131
1,419,413
39,1607,368(215,634)(475,013)

161

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flowsー(Continued)
Millions of yen
2016

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
Payments for Purchase 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
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
Cash and Cash Equivalents at the End of the Fiscal Year
(Note 39)¥

3,286,722 ¥
1,458,441(386,135)
43,034

480,1121,476,736(346,060)(84,770)

4,373,564(269,366)

6,826,983(172,024)

38,810,578(2,390,336)

4,104,197

6,654,958

36,420,242(43,017,178)
36,284,439
10,774,422(21,840)
3,945(67,298)(257,072)
12,9130(81,055,617)
76,467,302
7,599,068(5,770)16,408(216,299)(187,451)
1,585
0(381,730,218)
321,984,552
95,611,167(193,809)
35,010(597,204)(2,281,240)
114,591
0(24,432)
3,687,897—
2,619,227(216,810)
32,726,039

40,000(189,000)
434,517(107,600)
41,353(452,500)(195,283)(49,877)—(100,000)
150,000(464,705)6
866(241,729)(176,186)(71,644)354,956(1,677,168)
3,855,866(954,832)
44
12,010(4,015,441)(1,732,926)(442,612)(2,626)(13)
2(521,023)—(12)
2(903,401)(23,310)(120)
23(4,623,510)(22,723)
7,248,347

37,565
8,408,350(201,650)
64,321,121

27,840,775

19,432,425

247,056,311

35,089,122 ¥

27,840,775

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

162

2015

Thousands of
U.S. dollars (Note 1)
2016$

29,166,053
12,942,064(3,426,526)
381,881$311,377,432

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 ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016 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, 2016 and 2015
were 143 and 150, respectively.
In the fiscal year ended March 31, 2016, Simplex Investment Advisors Inc. and seven other companies were newly
included in the scope of consolidation as a result of acquisition of the stocks and other factors.
During the period, Mizuho Financial Strategy, Co., Ltd. and 14 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, 2016 and 2015.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2016 and 2015.
(b) The numbers of affiliates under the equity method as of March 31, 2016 and 2015 were 27 and 21, respectively.
Investments in affiliates include Orient Corporation, The Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for
Foreign Trade of Vietnam and certain other affiliates.
During the period, Matthews International Capital Management, LLC and five other companies were newly includedin the scope of the equity method as a result of acquisition of the stocks and other factors.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2016 and 2015.
(d) Certain other affiliates, including Asian-American Merchant Bank Limited, are not accounted for under the equity
method, as they are not significant to the consolidated financial statements of MHFG.

163

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2016 are as follows:
July 31

1 company

December 29

12 companies

December 31

51 companies

March 3179 companies(b) Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative
financial statements as of and for the period ended December 31.
The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

164

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
the gains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses

Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities

In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted
market price over the month preceding the consolidated balance sheet date. The fair value of securities other thanJapanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date (cost of securities sold is calculated primarily by the moving-average method). Other securities,
the fair values 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 ¥9,161 million ($81,294 thousand) and ¥3,206 million for the fiscal years ended March
31, 2016 and 2015, respectively.

165

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:
・Security whose fair value is 50% or less of the acquisition cost・Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted

In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The
face value of these bills amounted to ¥1,304,681 million ($11,577,619 thousand) and ¥1,370,730 million as of March 31,
2016 and 2015, 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 ofhedge 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
Others2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)

Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets

Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets

Bond issuance costs are expensed as incurred.

166

(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 under guarantees.
• 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 asa Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of
the assessments 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 fromthe sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of theclaims) are written off against the respective claim balances. The total directly written-off amounts were ¥157,807 million($1,400,372 thousand) and ¥227,209 million as of March 31, 2016 and 2015, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments

Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments

Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

(13) Reserve for Variable Compensation

To prepare for the payments of performance payments and stock compensation to be paid as variable compensation
within compensation for directors 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 this 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 therespective fiscal year, based on the internally established standards.

167

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(15) Reserve for Possible Losses on Sales of Loans

Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies

Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(17) Reserve for Reimbursement of Deposits

Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities atthe estimated amount of future claims for withdrawal by depositors.

(18) Reserve for Reimbursement of Debentures

Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws

Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,024
million ($17,962 thousand) and ¥1,607 million as of March 31, 2016 and 2015, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(20) Accounting Method for Retirement Benefits

In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized actuarial differences are recognized asincome or expenses from the following fiscal year under the straight-line method over a certain term within the averageremaining service period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(21) Assets and Liabilities Denominated in Foreign Currencies

Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

168

(22) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for by
the method stipulated in the JICPA Industry Audit Committee Report No.24, February 13, 2002.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
Deferred Gains or Losses on Hedges recorded on the consolidated balance sheet resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), underwhich the overall interest rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis
using derivatives transactions. These deferred hedge gains/losses are amortized as interest income or interest
expenses over the remaining maturity and average remaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses on the macro-hedges, before net of applicable income
taxes, were ¥319 million ($2,835 thousand) and ¥856 million as of March 31, 2016 and 2015, respectively. The
unamortized amounts of gross deferred hedge gains on the macro-hedges, before net of applicable income taxes,
were ¥177 million ($1,573 thousand) and ¥704 million as of March 31, 2016 and 2015, respectively.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25, July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of theforeign currency position of the hedged monetary claims and liabilities is equal to or larger than that of currencyswap transactions, exchange swap transactions, and similar transactions designated as the hedging instruments ofthe foreign exchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

169

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(23) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(24) Amortization Method of Goodwill and Amortization Period

Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The full amountof Goodwill that has no material impact is expensed as incurred.

(25) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows

In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Change in Accounting Policies

Application of “Accounting Standard for Business Combinations” and others
MHFG has applied “Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,2013) (hereinafter, the “Business Combinations Accounting Standard”), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013) (hereinafter, the “Consolidation AccountingStandard”), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013)(hereinafter, the “Business Divestitures Accounting Standard” ) and other standards from the consolidated fiscal year
ended March 31, 2016. Accordingly, the accounting methods have been changed to record the difference arising fromchanges in equity in subsidiaries which MHFG continues to control as capital surplus, and to record businessacquisition costs as expenses for the fiscal year in which incurred. In addition, regarding business combinations
occurring on or after April 1, 2015, the accounting method has been changed to retroactively reflect adjustments to theamount allocated to acquisition costs arising from the finalization of the provisional accounting treatment on the
consolidated financial statements of the period in which the business combination occurs. Furthermore, presentation of
Net Income and others has been changed and presentation of Minority Interests has been changed to Non-controlling
Interests. In order to reflect the changes in presentation of financial statements, reclassification was made accordingly
in the consolidated financial statements for the fiscal year ended March 31, 2015.
In the consolidated statements of cash flows for the fiscal year ended March 31, 2016, cash flow regarding
acquisition or sale of the stocks of the subsidiaries unaccompanied by changes in the scope of consolidation has beenclassified into Cash Flow from Financing Activities. Cash flow regarding costs arising from acquisition of the stocks ofthe subsidiaries accompanied by changes in the scope of consolidation or costs arising from acquisition or sale of thestocks of the subsidiaries unaccompanied by changes in the scope of consolidation has been classified into Cash Flowfrom Operating Activities.
The Business Combinations Accounting Standard and other standards have been applied in accordance with thetransitional treatment set forth in Article 58-2 (3) of the Business Combinations Accounting Standard, Article 44-5 (3) ofthe Consolidation Accounting Standard and Article 57-4 (3) of the Business Divestitures Accounting Standard. The
cumulative effects arising from the retroactive application of these new accounting policies to all the previous fiscal
years were added to or deducted from capital surplus and retained earnings as of April 1, 2015.
As a result, Goodwill decreased by ¥48,063 million, Retained Earnings decreased by ¥48,999 million, and Capital
Surplus increased by ¥935 million as of April 1, 2015. In addition, Ordinary Profits and Income before Income Taxes forthe fiscal year ended March 31, 2016 each increased by ¥3,960 million.
As a result of reflection of the cumulative effects on the Net Assets as of April 1, 2015, Capital Surplus increased by¥935 million and Retained Earnings decreased by ¥48,999 million as of April 1, 2015 in the consolidated statements ofchanges in net assets.

7. Issued but not yet Adopted Accounting Standard and Others

Revised Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No.26, March 28,
2016)(i) Overview
This accounting standard comes from guidance on recoverability of deferred tax assets provided in“Audit Guideline for Considering Recoverability of Deferred Tax Assets” (JICPA Audit Committee Report No. 66)
and the content of the guidance has been basically taken over and partially revised.

170

(ii)

Scheduled Date of Application
Mizuho Financial Group is scheduled to apply this accounting standard from the beginning of the fiscal year
starting on April 1, 2016.
(iii) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under consideration.

8. Change in Presentation of Financial Statements

Refund of Income Taxes included within Current Income Taxes for the previous consolidated fiscal year has been
separately presented from this consolidated fiscal year due to increased materiality.
In order to reflect the change in presentation of financial statements, reclassification of the previous consolidated
fiscal year has been made accordingly.
As a result, Current Income Taxes of ¥260,268 million presented in the consolidated statement of income for theprevious consolidated fiscal year has been reclassified as Current Income Taxes of ¥260,799 million and Refund of
Income Taxes of ¥(531) million.

9. Securities Lending and Borrowing Transactions

MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge as of March 31,
2016 and 2015. 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 ¥11,479,189 million ($101,865,203 thousand) and ¥12,240,951 million as of March 31, 2016 and 2015,
respectively, and securities neither repledged nor re-loaned were ¥798,317 million ($7,084,187 thousand) and¥1,264,787 million as of March 31, 2016 and 2015, 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
2016

2015

Thousands of U.S. dollars
2016¥ 5,467,948¥ 5,042,005$ 48,522,034

7,369,060
167,514

5,526,350
213,379

65,392,320
1,486,506¥ 13,004,522¥ 10,781,735$ 115,400,860¥ 2,630,040¥ 3,200,813$ 23,338,721

7,500,312
145,781

5,335,870
206,51266,557,034
1,293,648¥ 10,276,133¥ 8,743,196$ 91,189,403

171

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

11. Securities
Millions of yen
2016

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥ 19,525,905
240,68099
2,867,899
3,898,737
12,972,648¥ 39,505,971

2015

Thousands of U.S. dollars
2016¥ 21,775,918
238,58799
2,674,037
4,500,792
14,089,298¥ 43,278,733$ 173,270,972
2,135,777
887
25,449,457
34,597,011
115,118,009$ 350,572,113*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥238,076 million ($2,112,664 thousand) and ¥229,160 million as ofMarch 31, 2016 and 2015, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥81,335 million ($721,762 thousand) and ¥62,814 million as of March 31, 2016
and 2015, respectively.

12. Loans and Bills Discounted
Millions of yen
2016

2015

Thousands of U.S. dollars
2016¥ 61,992,177
7,981,743
2,925,491
427,206¥ 61,263,590
7,960,639
3,216,933
418,171$ 550,112,495
70,829,204
25,960,525
3,790,985

377,325
4,941
73,708,884

551,112
4,723
73,415,170

3,348,349
43,852$ 654,085,410

2015

Thousands of U.S. dollars
2016

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Other
Total

¥

¥

Loans and Bills Discounted as of March 31, 2016 and 2015 include the following:
Millions of yen
2016

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

¥

24,315
396,720907
463,108¥

10,246425,778
3,496
614,928¥

885,052¥ 1,054,450$

215,774
3,520,460
8,055
4,109,581$ 7,853,870*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.

172

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 ¥88,290,896 million ($783,484,748
thousand) and ¥82,839,928 million as of March 31, 2016 and 2015, respectively. Of these amounts, ¥68,209,392 million($605,283,453 thousand) and ¥64,322,076 million as of March 31, 2016 and 2015, respectively, relate to contracts ofwhich 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
2016

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

¥

877,475
301,643
268,348
275

¥

2015

952,558
416,944
254,167
65

Thousands of U.S. dollars
2016$

7,786,635
2,676,751
2,381,300
2,445¥ 1,447,743¥ 1,623,736$ 12,847,131¥

459,956
13,736
14,5994,180¥

416,320
25,80026,251
4,688$

4,081,610
121,898
129,555
37,101¥

492,473¥473,060$

4,370,164

Millions of yen
2016

2015

14. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

279,470
45,0733,819,587¥ 4,144,131¥

281,063
43,2583,742,102¥ 4,066,424

Thousands of U.S. dollars
2016$

2,479,992
399,977
33,894,643$ 36,774,612

173

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

15. Tangible Fixed Assets
Millions of yen
2016

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 andOthers2015

Thousands of U.S. dollars
2016¥

605,626
344,31124,91919,69891,237¥

612,901
340,101
18,566
13,786
92,695$5,374,266
3,055,385
221,131
174,799
809,630¥

1,085,791¥

1,078,051$

9,635,211¥

857,628¥

842,605$

7,610,507

34,26735,685304,0862015

Thousands of U.S. dollars
2016(344,496)$ (2,705,020)(180,386)(1,372,699)

¥

(603)
(525,486)(118)$ (4,077,837)

Millions of yen
2016

2015

Thousands of U.S. dollars
2016

16. Reserves for Possible Losses on Loans
Millions of yen
2016

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

¥

(304,828)¥(154,689)¥(13)(459,531)

17. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets¥ 2,674,897
10,631,675
5,475,195
1,015¥ 2,567,206
11,209,154
6,580,383
1,006$

23,736,780
94,344,446
48,586,351
9,009

The following liabilities were collateralized by the above assets:
Millions of yen
2016

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money174¥

813,050—¥

2015

772,816
1,265,000

Thousands of U.S. dollars
2016$

7,214,929—

6,090,727

7,861,692

54,048,520

2,553,436
6,115,880

2,121,374
5,516,730

22,658,945
54,271,722

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 ¥45,101 million($400,227 thousand) and ¥34,156 million, Trading Assets of ¥98,922 million ($877,832 thousand) and ¥210,434 million,
Securities of ¥4,323,535 million ($38,366,633 thousand) and ¥4,518,541 million, and Loans and Bills Discounted of¥307,997 million ($2,733,142 thousand) and ¥191,639 million as of March 31, 2016 and 2015, respectively.
Other Assets included guarantee deposits of ¥119,149 million ($1,057,322 thousand) and ¥119,437 million, collateralpledged for derivatives transactions of ¥743,406 million ($6,596,920 thousand) and ¥529,449 million, margins for futurestransactions of ¥192,188 million ($1,705,460 thousand) and ¥193,743 million, and other guarantee deposits of ¥187,592
million ($1,664,679 thousand) and ¥41,713 million as of March 31, 2016 and 2015, respectively.

18. Deposits
Millions of yen
2016

As of March 31,

Current Deposits
1
Ordinary Deposits*
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥

7,998,604
52,384,886
931,867
38,483,960
11,827,533
5,829,751¥ 117,456,604

2015

¥

7,183,120
45,900,575
863,870
38,409,156
15,694,906
5,400,823¥ 113,452,451

Thousands of U.S. dollars
2016$

70,978,831
464,858,339
8,269,304
341,502,892
104,956,369
51,732,645$ 1,042,298,380*1 Ordinary Deposits includes savings deposits.

19. Call Money and Bills Sold
Millions of yen
2016

As of March 31,

Call Money
Bills Sold
Total

¥
¥

2,521,008—
2,521,008

¥
¥

2015

Thousands of U.S. dollars
2016

5,091,198—
5,091,198$$

22,371,182—
22,371,182

20. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2016¥1,010,139

2015¥538,511

Thousands of U.S. dollars
2016$8,963,882

Average interest rates*1
2016
2015

0.60%

0.22%

*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.

175

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

21. Borrowed Money
Millions of yen
2016

As of March 31,

Borrowed Money
Bills rediscounted¥7,503,543―

2015¥7,195,869―

Thousands of U.S. dollars
20167,503,543

7,195,869

66,585,710

2,3

Other Borrowings*$ 66,585,710―

Average interest rates*1
2016
2015

0.26%
—%

0.32%
—%

0.26%

0.32%

*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 ¥307,000 million ($2,724,288 thousand) and ¥456,000 million as of March 31, 2016 and 2015, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2017 ¥ 1,381,168 million($ 12,256,356 thousand)2018 ¥ 114,054 million($ 1,012,110 thousand)($ 36,959,583 thousand)2019 ¥ 4,164,975 million($ 7,699,330 thousand)2020 ¥ 867,637 million
2021 ¥
67,124 million($
595,660 thousand)

22. Short-term Bonds
Major components of Short-term Bonds at March 31, 2016 were as follows:
IssuerIssue

Millions of yen Thousands of U.S. dollars

MHFG

Jan. 2016¥

MHSC

Oct. 2015–Mar. 2016

*1

Nov. 2015–Mar. 2016

Total

¥

78,000[78,000]
513,700[513,700]
56,681[56,681]
648,381692,164[692,164]
4,558,524[4,558,524]
502,987[502,987]$ 5,753,675

Interest rates$

Apr. 2016

0.00%–0.10%

Apr. 2016–
Feb. 2017
Apr. 2016–
Jun. 2016

0.07%–0.23%*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and theoverseas consolidated subsidiaries, BLUE HEAVEN FUNDING CORPORATION, JAPAN SECURITIZATION CORPORATION andETERNAL FUNDING 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, 2015 were as follows:
IssuerIssue

Millions of yen

MHFG

Jan. 2015–Mar. 2015

¥

MHBK

Mar. 2015

MHSC

Oct. 2014–Mar. 2015

*1

Oct. 2014–Mar. 2015

Total

¥

261,000[261,000]
25,000[25,000]
456,500[456,500]
74,205[74,205]
816,705

Interest rates

0.11%
0.06%
0.03%–0.12%
0.12%–0.28%

Due

Apr. 2015–
Jun. 2015
Apr. 2015
Apr. 2015–
Oct. 2015
Apr. 2015–
May 2015*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and theoverseas consolidated subsidiaries, BLUE HEAVEN FUNDING CORPORATION, ASTRO CAPITAL CORPORATIONⅡand ETERNALFUNDING 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.

176

Due

0.11%

23. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2016 were as follows:
IssuerDescription

MHFG

Straight Bonds

MHTB

Straight Bonds

MHBK

Straight Bonds*1

Straight Bonds*2

Straight Bonds*3

Straight Bonds

Total

Issue

Jul. 2014–
Oct.2015
Dec. 2005

Millions of yen¥ 584,517[—]
10,000[—]Aug. 2005–
4,376,773
Mar. 2016[670,580](US$ 17,046,442 thousand)(AUD 930,000 thousand)(SGD 250,000 thousand)(HKD 1,220,000 thousand)(CNY 250,000 thousand)(THB 3,000,000 thousand)Jul. 2012–
337,361
Mar. 2014[—](US$ 2,993,712 thousand)Sep. 2005–
48,600
May 2012[—]
Jan. 2003–
763,675
Mar. 2016[143,009](US$ 1,158,490 thousand)(AUD
31,600 thousand)(EUR 295,000 thousand)(BRL
14,500 thousand)¥ 6,120,928

Thousands of U.S.
dollars$ 5,186,951[—]
88,739[—]38,839,058[5,950,668]

Interest
rates

Due

0.62%–
4.35%
2.24%

Jul. 2024-

0.10%–
9.00%

Apr. 2016–

Dec. 2020–

2,993,712[—]

4.20%– Jul. 2022–
4.60%
Mar. 2024

431,272[—]
6,776,784[1,269,048]

1.30%–
2.75%
0.00%–
16.00%

Jun. 2018–
Apr. 2016–
Mar. 2046$ 54,316,516*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial
Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited,
Mizuho Finance (Curaçao) N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc and Mizuho Securities USA Inc.

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, 2017 ¥ 813,589 million ($ 7,219,717 thousand)2018 ¥ 1,334,120 million ($ 11,838,855 thousand)2019 ¥ 580,037 million ($ 5,147,193 thousand)2020 ¥ 809,661 million ($ 7,184,861 thousand)2021 ¥ 270,333 million ($ 2,398,915 thousand)4. Bonds and Notes as of March 31, 2016 included subordinated bonds and notes of ¥1,713,478 million($15,205,244 thousand).
5. No collateral was provided for the above Bonds and Notes.

177

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2015 were as follows:
IssuerDescription

Issue

MHFG

Straight Bonds

MHTB

Straight Bonds

MHBK

Straight Bonds*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Jul. 1995–
May 2012
Jan. 2003–
Mar. 2015

Total

Jul. 2014–
Dec.2014
Dec. 2005–
Aug. 2009
Aug. 2005–
Mar. 2015

Millions of yen¥ 150,000[—]
42,200[30,000]
4,624,117[540,420](US$ 14,249,587 thousand)(AUD 660,000 thousand)(SGD 100,000 thousand)
359,949[—](US$ 2,992,846 thousand)
54,000[—]783,464[179,556](US$ 655,930 thousand)(AUD 18,970 thousand)(EUR 371,047 thousand)(BRL 14,500 thousand)¥ 6,013,731

Interest
rates

0.62%–
4.25%
1.91%–
3.19%
0.10%–
9.00%

Due

Jul. 2024Dec. 2029
Dec. 2015–
Apr. 2015–

4.20%– Jul. 2022–
4.60%
Mar. 2024
1.30%–
3.90%
0.00%–
18.80%

Jun. 2018–
Apr. 2015–
Mar. 2045*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial
Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited,
Mizuho Finance (Curaçao) N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc, Mizuho Bank (China),Ltd and Mizuho Securities USA Inc.

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, 2016 ¥ 1,566,681 million
2017 ¥ 740,623 million
2018 ¥ 1,366,009 million
2019 ¥ 406,159 million
2020 ¥ 844,199 million
4. Bonds and Notes as of March 31, 2015 included subordinated bonds and notes of ¥1,409,149 million.
5. No collateral was provided for the above Bonds and Notes.

17824. Other Liabilities
Millions of yen
2016

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

¥

2015

174,043
148,994
96,71437,8105,075,034¥

139,417
149,019
158,755
29,1283,785,635¥5,532,596¥ 4,261,955

Thousands of U.S. dollars
2016$

1,544,445
1,322,161
858,232
335,528
45,035,355$ 49,095,721*1 Average interest rate is 1.50% and 1.78% in the fiscal year ended March 31, 2016 and 2015, respectively. It is the weighted-average interest rate of debts
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, 2017 ¥ 9,586 million ($ 85,071 thousand)2018 ¥ 8,744 million ($ 77,598 thousand)2019 ¥ 8,083 million ($ 71,731 thousand)2020 ¥ 6,227 million ($ 55,263 thousand)2021 ¥ 3,799 million ($ 33,720 thousand)

25. Reserve for Employee Retirement Benefits(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin
Kikin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension
Plans. In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension
Plans as a part of the Termination Allowance Plans while certain other domestic consolidated subsidiaries haveestablished 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
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Cumulative Effects of Changes in Accounting
Policies
Balance as of the beginning of the period
reflecting Changes in Accounting Policies
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Other
Balance of Retirement Benefit Obligations
at the end of the period

2016

2015

2016

¥ 1,360,954¥ 1,319,387$ 12,076,978―(22,582)―¥ 1,360,954
37,8589,269
125,669(67,041)(1,562)¥

1,296,804
33,703
11,97582,747(67,070)
2,795$ 12,076,978
335,951
82,2601,115,177(594,919)(13,866)¥ 1,465,148¥ 1,360,954$ 13,001,581

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.

179

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
Millions of yen
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
Other
Balance of Plan Assets at the end of theperiodThousands of U.S. dollars

2016

2015

2016

¥ 2,056,818
39,260(33,958)
48,924
1,192(50,649)(1,525)¥ 1,686,455
36,875
332,40248,776
1,178(49,929)
1,058$ 18,252,006
348,393(301,346)
434,151
10,582(449,456)(13,535)¥ 2,060,062¥ 2,056,818$ 18,280,795(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
Millions of yen

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(iv)

Thousands of U.S. dollars

2016

2015

2016

¥ 1,465,148(2,060,062)¥ 1,360,954(2,056,818)$ 13,001,581(18,280,795)¥ (594,914)¥ (695,863)$ (5,279,214)

As of March 31,

Millions of yen
2016¥

51,514(646,428)¥ (594,914)

¥

2015

47,518(743,382)¥ (695,863)

Thousands of U.S. dollars
2016$

457,131(5,736,345)$ (5,279,214)

Employee Retirement Benefit Expenses and the breakdown
Millions of yen

For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans

2016

¥

¥

Thousands of U.S. dollars
2015

2016

36,841
9,269(39,260)(3,347)
4,177¥

32,967
11,975(36,875)
22,5485,411$

326,926
82,259(348,393)(29,705)
37,075

7,681¥

36,026$

68,162

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.
(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:
Millions of yen
2016

For the Fiscal Years ended March 31,

Unrecognized Actuarial Differences
Total

180

¥
¥

162,971
162,971¥¥

2015

Thousands of U.S. dollars
2016(272,213)(272,213)$ 1,146,194$ 1,146,194

(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:
Millions of yen
2016

As of March 31,

Unrecognized Actuarial Differences
Total
(vii)

¥
¥

(66,853)(66,853)

¥
¥

2015

Thousands of U.S. dollars
2016(229,825)(229,825)$ (593,252)$ (593,252)

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

2016

2015

57.09%
18.37%
11.71%
4.85%
5.88%
2.10%
100.00%56.33%
16.59%
12.65%
4.65%
5.73%
4.05%
100.00%Note: The total amount of Plan Assets includes 56.64% and 57.20% of Employee Retirement Benefit Trusts established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2016 and 2015, 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 havebeen considered.
(viii) Basis of Actuarial Calculation
Major Basis of Actuarial Calculation
For the Fiscal Years ended March 31,

2016

2015

Discount Rate

mainly 0.01%- 0.80%

mainly 0.07%- 1.62%

Expected Long-term Rate of Return on Plan Assets

mainly 1.66%- 2.20%

mainly 1.82%- 2.40%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its domestic consolidated
subsidiaries was ¥2,698 million ($ 23,946 thousand) and ¥2,498 million for the fiscal years ended March 31, 2016
and 2015, respectively.

181

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

26. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
Millions of yen
2016

As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

¥

¥

4,611,650
137,280
49,2284,798,158

¥

¥

2015

5,170,320
163,196
71,327
5,404,843

Thousands of U.S. dollars
2016

$

$

40,923,332
1,218,210
436,845
42,578,387

Note: Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article
2, Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31,2007)) amounted to ¥1,039,783 million ($9,226,936 thousand) and ¥1,036,575 million as of March 31, 2016 and 2015,
respectively.
(2) The principal amounts promised to be indemnified for money trusts which are entrusted to domestic consolidated trust
banking subsidiaries, were ¥1,765,076 million ($15,663,116 thousand) and ¥701,373 million as of March 31, 2016 and2015, respectively.

182

27. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2016

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Other

¥

Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Net Defined Benefit Asset
Net Unrealized Gains on Other
Securities
Other
Total
Net Deferred Tax Assets

73,028156,082¥2015

110,959
148,106

Thousands of U.S. dollars
2016$

648,048
1,385,059

156,418

197,846

1,388,045

184,132
177,860

197,383
185,948

1,633,976
1,578,321

747,523(275,445)

840,243(294,907)

6,633,449(2,444,278)¥

472,077¥

545,336$

4,189,171¥(197,203)¥(239,199)$(1,749,963)(507,553)(145,602)(690,581)(102,939)(4,503,979)(1,292,063)¥(850,359)¥(1,032,719)$(7,546,005)¥(378,281)¥(487,383)$(3,356,834)

Notes: 1. In addition to the balances shown in the above table, there is an equivalent amount of deferred tax assets
corresponding to tax losses carried forward of ¥268,543 million ($2,383,032 thousand) and ¥281,403 million as ofMarch 31, 2016 and 2015, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax
assets in the above table and in the consolidated balance sheet exclude the equivalent amount of deferred tax
assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.
(2) For the fiscal years ended March 31, 2016 and 2015, the reconciliation of the statutory tax rate of MHFG to theeffective income tax rate was as follows:
For the Fiscal Year ended March 31,

2016

2015

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Adjustment to reduce the amount of deferred
tax assets at the end of period due tochanges in tax rates
Other

33.06%

35.64%(4.47)(3.83)(1.29)(1.89)(3.27)(5.07)

0.94
3.05

2.70
3.24

Effective Income Tax Rate

28.02%

30.79%

183

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) The revision of the amount of deferred tax assets and deferred tax liabilities due to the change in tax rate of thecorporate tax, etc:
“Act on Partial Amendment to the Income Tax Act, etc.” (Act No. 15, 2016) and “Act on Partial Amendment to the
Local Tax Act, etc.” (Act No. 13, 2016) were enacted on March 29, 2016, and accordingly, the corporate tax rate andother rates have been lowered from the fiscal year beginning on or after April 1, 2016.
Due to this change, the effective statutory tax rate used for the calculation of deferred tax assets and deferred tax
liabilities has been revised from the previous rate of 32.26%. The rate of 30.86% has been applied to the temporary
differences, expected to be either deductible, taxable or expired from the fiscal year beginning on April 1, 2016 throughthe fiscal year beginning on April 1, 2017, while the rate of 30.62% has been applied to the temporary differences,
expected to be either deductible, taxable, or expired in or after the fiscal year beginning on April 1, 2018.
In addition, due to the revision of the carry-forward system of the net operating losses, the amount of net operating
losses that can be deducted has been limited to the equivalent of 60% of taxable income before such deductions in thefiscal year beginning on April 1, 2016, while the amount of net operating losses that can be deducted has been limited
to the equivalent of 55% of taxable income before such deductions in or after the fiscal year beginning on April 1, 2017.
As a result of the changes in tax rates and the carry-forward system of the losses, Deferred Tax Liabilities decreasedby ¥21,868 million ($194,056 thousand), Net Unrealized Gains on Other Securities increased by ¥26,866 million($238,414 thousand), Deferred Gains or Losses on Hedges increased by ¥3,409 million ($30,252 thousand),Remeasurements of Defined Benefit Plans increased by ¥1,090 million ($9,676 thousand), and Deferred Income
Taxes increased by ¥9,501 million ($84,314 thousand). Deferred Tax Liabilities for Revaluation Reserve for Landdecreased by ¥3,626 million ($32,181 thousand) and Revaluation Reserve for Land increased by the same amount.

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 ¥131,964 million ($1,171,037 thousand) and ¥147,005 million as ofMarch 31, 2016 and 2015, respectively.

18429. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2016 and 2015 were as follows:
Number of shares
As of March 31, 2016
Class of stock

Common Stock
Eleventh Series Class XI
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 25,030,525,657
914,752,000

914,752,000

Per share (Yen)Interimcash
dividend¥

Year-end
cash Liquidation
dividendvalue

3.75 ¥

3.75 ¥

10

10

Convertible
or notWith
Redemption
or not

—

No

No

1,000

Yes

No

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock6,939 thousand shares
Eleventh Series Class XI Preferred Stock815,828 thousand shares
2. Each total number of 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.

185

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Number of shares
As of March 31, 2015
Class of stock

Common Stock
Eleventh Series Class XI
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,621,897,967
914,752,000

914,752,000

Per share (Yen)Interimcash
dividend

Year-end
cash Liquidation
dividend
value

¥

¥

3.5
10

4 ¥
10

Convertible
or notWith
Redemption
or not

—

No

No

1,000

Yes

No

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
8,695 thousand shares
Eleventh Series Class XI Preferred Stock
701,631 thousand shares
2. Each total number of 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.

186

30. Stock Options(1) Total amount of stock options expensed were as follows:
Millions of yen
2016

For the Fiscal Years ended March 31,

General and administrative expenses
Total

2015

Thousands of U.S. dollars
2016

¥－

¥ 1,795$－¥－¥ 1,795$－(2) Outline of stock options and changes
For the fiscal year ended March 31, 2016(i) Outline of stock options
As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

187

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG

6 Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

12,452,000 Common stock

11,776,000 Common stock

6

36
22

134
7,932,000

December 8, 2011
August 31, 2012
February 17, 2014
The grantee may exercise the Stock Acquisition Rights which The grantee may exercise thehave been allotted based on his or her capacity as a Director Stock Acquisition Rights which
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
have been allotted based on
MHSC immediately following the date on which such grantee his or her capacity as aloses the status as a Director or an Executive Officer of MHFG, Director or an Executive Officer
MHBK, MHCB, MHTB or MHSC.
of MHFG, MHBK, MHTB or
MHSC immediately following
the date on which such grantee
loses the status as a Director
or an Executive Officer of
MHFG, MHBK, MHTB or
MHSC.
April 1, 2011
April 1, 2012
April 1, 2013
to March 31, 2012
to March 31, 2013
to March 31, 2014
December 9, 2011
September 3, 2012
February 18, 2014
to December 8, 2031
to August 31, 2032
to February 17, 2034
Seventh Series of Stock
Acquisition Rights of MHFG

2

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

12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK,MHTB or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

*1: Shown in number of shares

188

Fifth Series of Stock
Acquisition Rights of MHFG

(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2016

Non-vested
As of March 31, 2015
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2015
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2016

Non-vested
As of March 31, 2015
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2015
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

164,000－－
40,000124,000

448,000－－
123,000
325,000

805,000－－
237,000
568,000

2,842,000－－
1,046,000
1,796,000

4,840,000－－
1,354,000
3,486,000－
40,00040,000－－－123,000
123,000－－－
237,000
237,000－－－
1,046,000
1,046,000－－－
1,354,000
1,354,000－－

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

5,257,000－－
1,697,000
3,560,000

9,602,000－－
2,271,000
7,331,000－
1,697,000
1,697,000－－－
2,271,000
2,271,000－－

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2016

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2016

Exercise price
Average stock priceupon exercise
Fair value at grant date

First Series ofStock Acquisition
Rights of MHFG

¥ 1 per share

Second Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share¥

226.30¥226.30¥226.30¥235.08¥229.77¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share

Sixth Series ofStock Acquisition
Rights of MHFG

¥ 1 per share

Seventh Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥

228.00¥226.91¥

192.61
per share¥

186.99per share

189

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) 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
forfeited in the future cannot be readily estimated.

For the fiscal year ended March 31, 2015(i) Outline of stock options
As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

190

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2015

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Fifth Series of Stock
Acquisition Rights of MHFG

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG

6 Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

12,452,000 Common stock

11,776,000 Common stock

6

36
22

134
7,932,000

December 8, 2011
August 31, 2012
February 17, 2014
The grantee may exercise the Stock Acquisition Rights which The grantee may exercise thehave been allotted based on his or her capacity as a Director Stock Acquisition Rights whichhave been allotted based onor an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee his or her capacity as aloses the status as a Director or an Executive Officer of MHFG, Director or an Executive Officer
of MHFG, MHBK, MHTB or
MHBK, MHCB, MHTB or MHSC.
MHSC immediately following
the date on which such grantee
loses the status as a Director
or an Executive Officer of
MHFG, MHBK, MHTB or
MHSC.
April 1, 2011
April 1, 2012
April 1, 2013
to March 31, 2012
to March 31, 2013
to March 31, 2014
December 9, 2011
September 3, 2012
February 18, 2014
to December 8, 2031
to August 31, 2032
to February 17, 2034
Seventh Series of Stock
Acquisition Rights of MHFG

2

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

12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK,MHTB or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

*1: Shown in number of shares

191

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2015

Non-vested
As of March 31, 2014
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2014
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2015

Non-vested
As of March 31, 2014
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2014
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

345,000－－
181,000
164,000

740,000－－
292,000
448,000

1,230,000－－
425,000
805,000

4,391,000－－
1,549,000
2,842,000

7,275,000－－
2,435,000
4,840,000

82,000
181,000
263,000－－

179,000
292,000
471,000－－

227,000
425,000
652,000－－

82,0001,549,000
1,631,000－－

60,0002,435,000
2,495,000－－

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

7,932,000－－
2,675,000
5,257,000－
9,602,000－－
9,602,000－
2,675,000
2,675,000
－
－

－
－
－
－
－

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2015

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2015

Exercise price
Average stock priceupon exercise
Fair value at grant date

192

First Series ofStock Acquisition
Rights of MHFG

¥ 1 per share

Second Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share¥

204.31¥204.38¥204.34¥204.08¥203.81¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share

Sixth Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥

203.94¥

192.61
per share

Seventh Series ofStock Acquisition
Rights of MHFG

¥ 1 per share－¥

186.99per share

(iii) Calculation for fair value of stock options
The fair value of Seventh Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2015
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2015

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Seventh Series of Stock Acquisition Rights of MHFG

25.905%
2.46years¥ 7 per share
0.011%*1: Historical volatility calculated from MHFG stock prices over the 128 weeks ending on the business day (November 28, 2014) prior to the
grant date, an interval equivalent to the estimated remaining outstanding period of 2.46 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2015.
*4: Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) 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
forfeited in the future cannot be readily estimated.

193

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

31. Interest Income and Interest Expenses
Millions of yen
2016

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

194¥

921,653
308,089
6,847
67,248¥2015

931,883
351,801
7,611
50,093Thousands of U.S. dollars
2016$

8,178,660
2,733,957
60,763596,755

41,32827,995366,741

8,640
72,4497,096
92,49576,671
642,914¥ 1,426,256¥ 1,468,976$ 12,656,461

¥

¥

$

202,894
7,711

153,6547,609

1,800,469
68,43559,98330,537532,288

2,988
2,285
21,505125,203

7,549
1,682
19,287
119,222

26,523
20,285
190,841
1,111,042

Total

¥

422,574

Net¥ 1,003,682¥

339,543$

3,749,883¥ 1,129,433$

8,906,578

32. Trading Income and Trading Expenses
Millions of yen
2016

2015

Thousands of U.S. dollars
2016¥ 174,355¥ 149,251$ 1,547,214

138,751

113,7111,231,264¥ 313,106¥ 262,963$ 2,778,478

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

2,598

Total

¥

2,598

Net

¥ 310,507—¥—

23,063$23,063¥ 262,963$ 2,755,415

2015

Thousands of U.S. dollars
2016

33. Other Operating Income
Millions of yen
2016

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

¥

37,137
184,860¥

99,447
175,364$

329,559
1,640,434

8,410
95,657—90,452

74,630848,853¥ 326,065¥ 365,264$ 2,893,476

2015

Thousands of U.S. dollars
2016

34. Other Operating Expenses
Millions of yen
2016

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other thanfor Trading or Hedging
Losses on Devaluation of Bonds
Other
Total

¥

43,192¥

97,058—644
35,814

10,062
1,438
47,365¥ 79,650¥ 155,924$

383,284—
5,715
317,811$

706,810195

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

35. Other Income
Millions of yen
2016

For the Fiscal Years ended March 31,

Gains on Sales of Stock
Recovery on Written-off Loans
Indemnity receipt from theerroneous stock order in the
securities subsidiary
Reversal of Reserves for Possible
Losses on Loans
Gains on Disposition of Fixed
Assets
Other

¥

Total

271,115
18,273

2015¥

152,029
16,862Thousands of U.S. dollars
2016$

2,405,848
162,154

12,822—

113,783—

73,301—

7,540
55,286615
58,843

66,913490,604¥ 365,036¥ 301,652$

3,239,302

36. Other Expenses
Millions of yen
2016

For the Fiscal Years ended March 31,

Write-offs of Loans
Losses on Sales of Stocks
System migration-related expenses
Provision for Reserves for Possible
Losses on Loans
Losses on Disposition of Fixed
Assets
Losses on Impairment of Fixed
Assets
Other
Total

196

¥

¥

46,61045,72834,892

2015¥

84,5048,326
8,920

Thousands of U.S. dollars
2016$413,614405,792
309,6314,446—

39,457

4,811

9,156

42,694

4,412
87,905

11,35884,88039,160780,065

228,807¥

207,147$

2,030,413

37. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
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
Adjustment to acquisition cost of assets
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive
IncomeMillions of yen
2016

2015

Thousands of U.S. dollars
2016¥ (291,966)(332,063)(624,030)
185,133(438,896)¥ 1,630,152(241,126)
1,389,026(384,178)
1,004,848$(2,590,885)(2,946,698)(5,537,583)
1,642,860(3,894,723)

230,945(28,215)—202,730(63,900)
138,82980,563(30,961)—
49,602(16,349)
33,252

2,049,386(250,377)—
1,799,009(567,050)
1,231,959

—
—
—
3,630
3,630

—
—
—
7,531
7,531

—
—
—
32,21732,217(10,173)(413)(10,586)(126)(10,712)

13,1082,035
15,144—
15,144(90,274)(3,665)(93,939)(1,122)(95,061)(159,624)(3,347)(162,971)
53,609(109,362)

249,665
22,548272,213(89,104)
183,108(1,416,489)(29,705)(1,446,194)
475,723(970,471)(4,597)

11,548(40,794)¥ (421,108)¥ 1,255,433$ (3,736,873)

197

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

38. Changes in Net Assets
For the fiscal year ended March 31, 2016(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

As of
April 1, 2015

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2016

Remarks

24,621,897

408,627—

25,030,525*1

914,752——

914,752

25,536,649

408,627—

25,945,277

11,649

3,084

3,804

10,929*2

701,631

114,197—

815,828*3

713,280

117,2813,804

826,757*1 Increases are due to request for acquisition (conversion) of preferred stock (403,667 thousand shares) and exercise of stock acquisition rights (stock
option) (4,960 thousand shares).
*2 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights(stock option) (1,808 thousand shares) and repurchase of shares constituting less than one unit and other factors (1,996 thousand shares).
*3 Increases are due to request for acquisition (conversion) of preferred stock.

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)
Total

198

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrights－Number of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2015

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2016

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,
2016
(Millions of
yen)

¥

－
(－)

Balance asof March
31, 2016(Thousandsof
U.S.dollars)

$

－
(－)

－

2,762

24,515

－

－
(－)

－
(－)

－

¥ 2,762(－)$ 24,515(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2016

Resolution

Type

Cash
Dividends(Millions ofyen)

May 15,
2015

Common Stock¥(

The Board of
Directors)

Eleventh Series Class XI
Preferred Stock

November 13,
Common Stock2015(

The Board of
Directors)¥

Eleventh Series Class XI
Preferred Stock

Total

98,452

Cash
Dividends(Thousand of
U.S. dollars)$ 873,661

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)¥4$ 0.04

RecordDate

March 31,
2015

2,131

18,91210

0.09

March 31,2015

93,240$ 827,403¥ 3.75$ 0.03September 30,
2015

1,440

12,785

10¥ 195,264$ 1,732,761/

Effective
Date

September 30,
0.09
2015

June 4,2015

December 4,
2015/

Cash dividends with record dates falling in the fiscal year ended March 31, 2016 and effective dates coming after the endof the fiscal year

Resolution

May 132016(

The Board of
Directors

Total

)

Type

Cash
Dividends(Millions of
yen)

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)Common Stock¥$ 832,713

Retained
Earnings¥ 3.75Retained
Earnings

10

0.09

/

/

Eleventh Series Class XI
Preferred Stock¥93,838989

8,779

94,827$ 841,492

Record Effective
Date
Date

$ 0.03 March 31,
2016
March 31,2016

June 32016

199

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2015(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

As of
April 1, 2014

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2015

Remarks

24,263,885

358,012—24,621,897*1914,752——

914,752

25,178,637

358,012—25,536,649

13,817

1,235

3,404

11,649*2*3602,100

99,530—701,631615,918

100,766

3,404

713,280*1 Increases are due to request for acquisition (conversion) of preferred stock (351,822 thousand shares) and exercise of stock acquisition rights (stock
option) (6,190 thousand shares).
*2 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights(stock option) (1,997 thousand shares) and repurchase of shares constituting less than one unit and other factors (1,407 thousand shares).
*3 Increases are due to request for acquisition (conversion) of preferred stock.

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)
Total

200

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrights－Number of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2014

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2015

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,
2015
(Millions of
yen)

¥

－
(－)

－

3,820

－

－
(－)

－

¥ 3,820(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2015
June 24,
2014(

Ordinary
GeneralMeeting of
Shareholders

Common Stock)

Eleventh Series Class XI
Preferred Stock

November 14,
Common Stock2014(

The Board of
Directors)¥¥

Eleventh Series Class XI
Preferred Stock¥ 3.5

March 31,
2014

3,126

10

March 31,
2014

85,344¥ 3.5

September 30,
2014

84,8862,778¥ 176,136

Total

September 30,
10
2014

June 24,2014

December 5,
2014/Cash dividends with record dates falling in the fiscal year ended March 31, 2015 and effective
dates coming after the end of the fiscal year

Resolution

May 15,2015(

The Board of
Directors

Total

)

Type

Cash
Dividends(Millions of
yen)

Cash
Resource Dividendsof per ShareDividends(Yen)

Common Stock¥

Retained
Earnings

Eleventh Series Class XI
Preferred Stock98,452

2,131¥

100,584

Retained
Earnings

Record Effective
Date
Date

¥ 4 March 31,
2015

June 4,2015
March 31,
10
2015
/

201

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Cash Flows
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,

Millions of yen
2016

2015

Thousands of U.S. dollars
2016¥ 29,096,166$ 322,259,927

Cash and Due from Banks
Less: Due from Banks excluding
due from Central Banks¥ 36,315,471(1,226,348)(1,255,391)(10,882,495)

Cash and Cash Equivalents¥ 35,089,122¥ 27,840,775$ 311,377,432

202

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:Millions of yen
2016

As of March 31,

Due in One Year or Less
Due after One Year
Total

2015

Thousands of U.S. dollars
2016¥

53,116
223,770¥

48,614
201,780$

471,354
1,985,721¥

276,887¥

250,394$ 2,457,075

2015

Thousands of U.S. dollars
2016

Lessors:
Millions of yen
2016

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

692
3,684

¥

779
4,350

$

6,141
32,699

¥

4,376

¥

5,130

$

38,840203

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. Someconsolidated subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products

The main financial assets of the Mizuho group consist of loans to customers and securities such as Japanese stocks andgovernment bonds. The Group holds these securities for the purpose of reserves for deposit payments reserves and as
investments. These financial assets are subject to various types of risk that may cause the Group to incur losses due toa 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 (“credit risk”), or due to a decline in the value of assets caused by fluctuations in interest rates, stock prices andforeign exchange rates and so on (“market 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.
As financial services become more complex and diverse, the Mizuho group is exposed to various risks, including credit
risk, liquidity risk and other risks.

(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 our principal banking subsidiaries, including their respective
subsidiaries, and other core group companies to control risk within the limits set for each company. We also control

204

risk within managerially acceptable limits by working to ensure that the overall risk we hold on a consolidated basis
does not exceed shareholders’ equity and other measures of financial strength. To ensure the ongoing financial
health of Mizuho Financial Group, our principal banking subsidiaries and other core group companies, we regularly
monitor the manner in which risk capital is being used in order to obtain a proper grasp of the risk profile within thisframework. Reports are also submitted to the board of directors and other committees of each company.
(c) Credit Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Risk Management Committee as one of its business policy committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management and matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Risk Management Division and the Credit Risk
Management Division jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit
concentration risk,” which stems from granting excessive credit to certain individual counterparties or corporategroups. The other type is “chain-reaction default risk,” which arises from granting excessive credit to certain areas,industrial sectors and other groupings. We manage these risks appropriately in line with our specific guidelines foreach.
The board of directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk in line with basic policies 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. The credit risk management division of each principal
banking subsidiary is responsible for planning and administering credit risk management and conducting credit risk
measuring and monitoring. Each credit division determines policies and approves/disapproves individualtransactions regarding review and management of and collection from customers in accordance with the lines ofauthority set forth by each principal banking subsidiary. In addition, each of our principal banking subsidiaries has
also established internal audit divisions that are independent of the business divisions 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 relating to basic asset and liability management policies
risk planning and market risk management and proposes responses to emergencies such as sudden market
changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Division of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the division assesses and manages the overall market risk of theMizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries and othercore group companies. The division also submits reports to the President & CEO on a daily basis and to our boardof 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.

205

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.
Our principal banking subsidiaries and certain other core group companies have formulated their basic policies inline with the basic policies determined by Mizuho Financial Group. Their boards of directors determine importantmatters relating to market risk management while their Chief Executive Officers are responsible for controllingmarket risk. 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
Average

¥

2016

321.5
360.6
190.0
284.9

Thousands of U.S. dollars

¥

2015

325.6
349.0
265.0
307.9

2016

$ 2,853,512
3,199,949
1,686,193
2,528,703[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:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR : the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of one year.

206

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
Average

¥

2016

2.0
4.5
1.8
2.9

Thousands of U.S. dollars

¥

2015

6.5
7.1
3.1
4.4

$

2016

18,32640,375
16,463
26,032[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:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR: the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of one year.
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 ¥29.7 billion ($263,991 thousand) and ¥37.4 billion for the fiscal years ended March 31, 2016 and 2015,
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 variance co-variance model used as the measurement technique of VAR assumes that change in a market
movement follows a normal distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. The model might also
underestimate the risk when the normal correlation assumption between interest rate and share price collapses
under the circumstances when a rise in the interest rate and a deterioration of share price happen simultaneously.
We check the validity of the market 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 andcontrols such as risk indices monitoring, implementation of stress tests, loss limit monitoring in order to make strictrisk 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 Division is responsible for monitoring and adjusting the cash
207

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

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 executive management committee and thePresident & 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.

208

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,
2016 and 2015. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).

As of March 31, 2016

(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*1(7) Money Held in Trust(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*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

36,314,173
892,7817,805,798

Millions of yen¥

Fair Value

36,314,173
892,7817,805,798¥

Difference———

3,407,390
2,979,413

3,407,390
2,979,419—
6

5,467,948
175,135

5,467,948
175,135——

4,817,574
34,083,510
73,708,884(411,319)
73,297,564
169,241,291
105,629,071
11,827,533
2,521,008
16,833,346

4,873,209
34,083,510

55,634—¥¥74,465,870
170,465,237
105,635,132
11,827,239
2,521,008
16,833,346¥¥

1,168,305
1,223,946
6,061
(293)
—
—

2,608,971

2,608,971—¥

2,630,040
7,503,543
6,120,928
5,067,490
160,741,933¥

2,630,040
7,510,534
6,222,223
5,067,490
160,855,987

¥

—
6,990
101,295—
114,053¥

19,666¥481,660(8,086)493,240¥

493,240¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

209

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2015

(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*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted*1
Reserves for Possible Losses on Loans¥

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*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

29,094,362
443,394
8,582,239

Millions of yen¥

Fair Value

29,094,362
443,394
8,582,239¥

Difference———

4,059,340
3,239,582

4,059,340
3,239,662—
79

5,042,005
157,225

5,042,005
157,225——

5,647,341
37,001,945
73,415,170(461,940)
72,953,230
166,220,667
97,757,545
15,694,906
5,091,198
19,612,120

5,677,806
37,001,945

30,465—¥¥74,059,603
167,357,586
97,725,179
15,694,463
5,091,198
19,612,120¥¥

1,106,373
1,136,918(32,366)(442)——

2,245,639

2,245,639—¥

3,200,813
7,195,869
6,013,731
1,780,768
158,592,592¥

3,200,813
7,171,622
6,151,033
1,780,768
158,672,838¥—(24,247)
137,301—
80,245¥

313,667¥[23,904](13,797)
275,965¥

275,965¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

210

As of March 31, 2016$
(1) Cash and Due from Banks *1*1(2) Call Loans and Bills Purchased(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*1
Reserves for Derivative Transactions
Total Derivative Transactions$$$

Consolidated Balance
Sheet AmountThousands of U.S. dollars
Fair Value

322,248,412
7,922,452
69,267,888

30,236,851
26,439,020

30,236,851
26,439,080—
60

48,522,034
1,554,139

48,522,034
1,554,139——

42,750,686
302,453,727
654,085,410(3,650,012)
650,435,398
1,501,830,607 $
937,342,011 $
104,956,369
22,371,182
149,377,462

43,244,381
302,453,727

493,695—

660,802,825
1,512,691,789
937,395,796
104,953,763
22,371,182
149,377,462

23,151,759

23,151,759—

23,338,721
66,585,710
54,316,516
44,968,414
1,426,408,144 $23,338,721
66,647,743
55,215,403
44,968,414
1,427,420,243$—
62,033898,887—
1,012,099

4,376,972$—$

174,523$

4,274,209(71,760)
4,376,972 $$Difference

322,248,412 $
7,922,452
69,267,888

$
$

—
—
—

10,367,427
10,861,182
53,785(2,606)——*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

(Change in Presentation of Financial Instruments)
Due to Trust Accounts has been noted from this consolidated fiscal year because of increased materiality. In order toreflect the change in presentation of financial statements, the amount as of the end of the previous consolidated fiscal
year has been noted accordingly.

211

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 inTrust.”(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 of212

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.

213

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 (5) Other Debt Purchased”, “Assets (7)Money Held in Trust” and “Assets (8) Other Securities” in fair value information of financial instruments.

As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships and others *2*3(iii) Other
*4
Total

Millions of yen
Thousands of U.S. dollars
2016
2015
2016
Consolidated Balance
Consolidated Balance
Consolidated Balance
Sheet Amount
Sheet Amount
Sheet Amount¥¥

216,329
69,076571
285,977¥¥

163,219
74,158100,595
337,974$ 1,919,687
612,9815,069$ 2,537,737*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 We do not treat Preferred Securities and others included in Other as being subject to disclosure of fair values as there are no market prices andother factors and they are deemed extremely difficult to determine fair values.
*4 During the fiscal years ended March 31, 2016 and 2015, the amounts of impairment (devaluation) were ¥1,696 million ($15,057 thousand) and¥3,525 million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities
As of March 31, 2016
Types of Financial Instruments

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

214

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥ 35,603,859 ¥
— ¥
— ¥
— ¥
— ¥
—
893,545—————2,627,383
126,890
21,318
7,104
1,895
191,806
6,300,043 13,500,981
4,946,401
1,948,469
3,174,295
3,298,130
700,000
1,940,000
640,000
100,000
380,000
989,351
700,000
1,940,000
640,000
100,000
380,000——————
989,351
5,600,043 11,560,981
4,306,401
1,848,469
2,794,295
2,308,779
2,430,501
9,498,300
2,169,900
60,0001,454,430—
20,01373,21722,057
443,668
891,957
424,692
2,651,489
1,032,778
1,617,235
54,37164,72772,515
26,611,343 16,554,621 12,185,896¥ 72,036,174 ¥ 30,182,493 ¥ 17,153,615

44,12073,799684
117,100
128,379
810,697
1,605,551
1,124,338
1,460,874
21,69813,34636,5225,201,721
4,585,717
7,452,739¥ 7,157,296 ¥ 7,761,908 ¥10,942,676

As of March 31, 2015
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¥ 28,079,235 ¥
0 ¥
— ¥
— ¥
— ¥
444,115————
2,830,119
104,074
49,705
10,511
6,419
7,140,210 11,439,072
9,166,962
1,705,388
2,859,863
600,000
1,800,000
1,480,000—
480,000
600,000
1,800,000
1,480,000—
480,000—————
6,540,210
9,639,072
7,686,962
1,705,388
2,379,863
3,619,984
7,753,929
4,552,600
422,500
996,630——
235,890
3,501,455
1,195,442—
1,195,442
2,306,012—

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

36,161
60,92843,536
15,20377,738732
489,761
762,405427,237
125,564
55,091
781,179
2,377,181
924,204
2,595,350
1,088,601
1,238,094
1,518,367
17,121
137,604
68,23853,51912,3095,732
28,131,562 15,736,232 11,785,704
5,302,236
4,078,615
7,294,016¥ 66,625,243 ¥ 27,279,379 ¥ 21,002,373 ¥ 7,018,136 ¥ 6,944,899 ¥ 11,031,361

As of March 31, 2016
Types of Financial Instruments

Within 1 year

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Securities *1
Bonds Held to Maturity
Japanese Government Bonds
Foreign Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

—$
—$
—$
—$
—
$315,945,155 $
—
—
—
—
—
7,929,232
23,315,146
1,126,010
189,176
63,048
16,823
1,702,071
55,905,963 119,806,381
43,893,878 17,290,530
28,168,383 29,267,285
887,3908,779,406
6,211,731 17,215,370
5,679,297
3,372,083
887,390—
6,211,731 17,215,370
5,679,297
3,372,083
8,779,406—————
49,694,232 102,591,011
38,214,581 16,403,140
24,796,300 20,487,879
21,568,028 84,286,982 19,255,479
532,434 12,906,469—
177,595
649,721
195,736
391,520654,893
6,075
3,937,068
7,915,142
3,768,683
1,039,134
1,139,231
7,194,046
23,529,055
9,164,778 14,351,188 14,247,505
9,977,269 12,963,658
482,486
574,388
643,495
192,547
118,438
324,100
236,146,449 146,904,090 108,136,449 46,159,566
40,693,206 66,134,879$639,241,945 $267,836,481 $152,219,503 $ 63,513,144 $ 68,878,412 $ 97,104,235*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 ¥420,222 million ($3,729,017 thousand) and ¥434,565 million, and loans with no maturities of ¥696,621 million ($6,181,754 thousand) and¥652,236 million as of March 31, 2016 and 2015, respectively.

215

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, 2016

Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total

Within 1 year

1-3 years¥ 101,245,149¥ 3,457,412

11,691,885
2,521,008
1,381,168
648,381813,589
5,067,490¥ 123,368,674

76,08360,368——4,279,030
934,762——
1,914,157
1,079,995——¥ 9,726,684 ¥ 2,853,566 ¥As of March 31, 2015

Types of Financial Instruments*1

Deposits
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total
As of March 31, 2016
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total

Within 1 year¥

93,499,413

15,642,151
5,091,198
965,869
816,705
749,976
1,780,768¥ 118,546,081
Within 1 year¥

1-3 years¥ 3,298,473 ¥3-5 years

5-7 years

778,440 ¥73,961 ¥1-3 years

5-7 years

819,434 ¥

78,103 ¥3-5 years

74,107————206,074
309,491——
518,466
768,045——798,502 ¥ 1,151,643

3-5 years

52,968———
1,104,853
4,305,972——
2,106,632
1,250,358——¥ 6,562,928 ¥ 6,375,766 ¥

7-10 years

7-10 years

62,120————124,314363,692——
193,731
1,025,914——
396,149 ¥ 1,451,727

Millions of yen

Over 10 years

¥

—

—
—
329,016—
693,381—¥ 1,022,398
Millions of yen

Over 10 years

¥

—

¥

—
—
238,115—
647,078—885,194

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years

656,326 $

657,620$ 898,439,518$ 30,680,740 $ 6,907,807 $

103,752,646
22,371,182
12,256,356
5,753,675
7,219,716
44,968,414$ 1,094,761,507

675,158
535,700——————
37,971,694
8,294,990
1,828,685
2,746,393————
16,986,048
9,583,776
4,600,818
6,815,560————$ 86,313,640 $25,322,273 $ 7,085,829 $ 10,219,573$——
2,919,662—
6,153,001—$ 9,072,663*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥64,000 million ($567,930 thousand) and ¥334,000 million($2,963,883 thousand), and ¥93,051 million and ¥40,900 million as of March 31, 2016 and 2015, respectively.

216—

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.”

As of March 31, 2016

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

Difference

4,817,574¥

4,873,209¥

55,634¥

4,402,821
3,760,032
642,788

¥4,463,834
3,816,652
647,182¥

61,012
56,6194,393¥

414,753—414,753¥

409,375—
409,375¥(5,378)—(5,378)Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference¥

5,647,341¥

5,677,806¥

30,465¥5,191,248
4,260,214
931,033¥

5,222,508
4,289,216
933,292¥

31,26029,001
2,259¥

456,092
99,911
356,181¥455,298
99,738355,560

¥

(794)
(173)
(621)

Thousands of U.S. dollars

Consolidated
Balance
Sheet Amount

As of March 31, 2016

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

Fair value¥

As of March 31, 2015

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

Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference$

42,750,686$

43,244,381$

493,695$

39,070,207
33,366,161
5,704,046$

39,611,627
33,868,595
5,743,032$

541,420
502,434
38,986$3,680,479—
3,680,479$

3,632,754—
3,632,754$(47,725)—(47,725)

217

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

218

Consolidated Balance
Sheet AmountMillions of yen
Acquisition Cost

Difference¥

34,675,695¥

32,793,827¥

1,881,867*2¥

28,764,163
3,119,477
18,155,225
15,649,388
237,247—
2,268,589
7,489,460
6,775,953
143,593569,913¥26,704,510
1,437,513
18,007,215
15,553,141
231,149—
2,222,924
7,259,780
6,708,016
139,690412,074¥

2,059,653
1,681,963
148,010
96,247
6,097—
45,665
229,679
67,936
3,903
157,839¥5,911,531
338,149
719,259
116,4843,433
99599,241
4,854,122
2,943,644
205,326
1,705,151¥

6,089,317
409,668
730,762
116,890
3,436
99
610,334
4,948,886
2,970,512
205,917
1,772,456¥(177,785)(71,518)(11,502)
(406)
(3)
—
(11,093)(94,764)(26,867)(591)(67,305)

¥

2,578

¥

2,578

¥

—

As of March 31, 2015

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated Balance
Sheet AmountMillions of yen
Acquisition Cost

Difference¥

37,704,504¥

35,173,125¥

2,531,378*2¥

26,539,885
3,838,387
14,292,166
12,180,998
223,065—
1,888,103
8,409,331
6,207,461
188,534
2,013,335¥

23,916,691
1,651,030
14,236,356
12,156,981
218,882—
1,860,492
8,029,303
6,126,701
184,285
1,718,317¥

2,623,193
2,187,357
55,80924,016
4,183—
27,610380,027
80,7604,249
295,018¥

11,164,618
283,518
6,036,256
5,234,793
15,522
99785,840
4,844,843
3,825,059
299,661
720,122¥

11,256,434
311,919
6,047,965
5,236,173
15,53899
796,153
4,896,549
3,865,759
301,081
729,708¥(91,815)(28,401)(11,708)(1,379)(15)—(10,312)(51,705)(40,699)(1,419)(9,586)

¥

3,415

¥

3,415

¥

—

219

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

Consolidated Balance
Sheet Amount

As of March 31, 2016

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Acquisition Cost

Difference$

307,708,717$

291,009,206$

16,699,511*2$

255,250,365
27,681,937
161,107,689
138,871,141
2,105,307—
20,131,241
66,460,739
60,129,146
1,274,234
5,057,359$

236,973,201
12,756,357
159,794,261
138,017,049
2,051,200—
19,726,012
64,422,583
59,526,283
1,239,595
3,656,705$

18,277,164
14,925,580
1,313,428
854,092
54,107—405,2292,038,156
602,863
34,6391,400,654$

52,458,352
3,000,708
6,382,638
1,033,669
30,470887
5,317,612
43,075,006
26,121,614
1,822,043
15,131,349$

54,036,005
3,635,358
6,484,713
1,037,273
30,500887
5,416,053
43,915,934
26,360,035
1,827,292
15,728,607$(1,577,653)(634,650)(102,075)(3,604)(30)—(98,441)(840,928)(238,421)(5,249)(597,258)$

22,880$22,880$—*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.
The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains of ¥26,715 million ($237,069 thousand) and ¥52,059 million which were recognized in the statements
of income for the fiscal years ended March 31, 2016 and 2015, 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

2016

Unrealized
gains (losses)

As of March 31,

Trading Securities¥

As of March 31,

Money Held in Trust for
Investment¥(5,103)$5,684
Thousands of U.S. dollars
2016
Unrealized
Fair value gains (losses)

640
Millions of yen

2016

Unrealized
gains (losses)

Thousands of U.S. dollars
2016
Unrealized
gains (losses)

2015

2015

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)¥173,060¥¥154,312

¥

25

25

* Fair values of trading securities as of March 31, 2016 and 2015 are described in “41. Financial Instruments.”

220$1,535,723$ 224

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2016

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥

256,702
17,668,992
17,053,780¥ 140,410
59,79555,269¥ 1,906
1,284
1,088

$

2,277,950
156,792,906
151,333,576$ 1,245,993
530,623
490,458$

53,526561,685
18,236,320¥ 36,162,015

0
4,526
227,595¥ 427,802

40
155
83,388¥ 86,578

474,987
4,984,343
161,827,318$320,898,174

040,1652,019,664$ 3,796,280

358
1,381
739,979$ 768,288

Millions of yen
Total amount
Proceedsof gains
from sales
on salesTotal amountof losses
on sales

For the Fiscal Year ended March 31,
2015

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¥175,816
57,275,999
56,125,675¥ 81,295
63,01452,782¥67,442
1,082,881
19,379,289¥ 76,831,104

53
10,178208,921¥ 353,23147
204
102,348¥ 108,898

16,914
11,395
9,656

2,228
4,322
4,069

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, 2016 and 2015 are as follows:

As of March 31,

Difference between Acquisition Cost and Fair Value*1*2
Other Securities
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Minority 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

2015

Thousands of
U.S. dollars
2016

2,479,388
2,479,388(693,523)
1,785,865$16,463,586
16,463,586(4,511,396)
11,952,190

55,379497,3486,863
1,737,348

46,088$11,500,930

Millions of yen
2016¥

1,855,281
1,855,281(508,389)
1,346,892¥

56,046¥

5,193
1,296,039¥*1 The difference between acquisition cost and fair value excludes ¥(26,715) million ($(237,069) thousand) and ¥(52,059) million which were recognized in

the statements of income for fiscal years ended March 31, 2016 and 2015, respectively, by applying the fair-value hedge method.
*2 Other Securities includes translation differences regarding securities which do not have readily determinable fair value.

221

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 asof March 31, 2016 and 2015 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
Contract value
Total
Over one year

As of March 31, 2016

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
Receive Float / Pay Float
Total

222

¥

15,846,181
15,329,146¥

5,404,223
5,440,259

Millions of yen
Unrealized
gains (losses)

Fair value¥(101,255)
93,252¥(101,255)
93,252

266,618
659,242

35,363
140,726

(684)
636

221
(413)

16,516,064
8,747,790

2,486,927—(7,427)321(7,427)321

450,204,501
445,186,117
77,852,071
769,835

348,348,352
338,980,895
57,764,275
740,715

10,989,099(10,832,435)
40,572
22,623

10,989,099(10,832,435)
40,572
22,6239,510,832
6,157,532

6,160,305
4,019,060(157,337)
62,094(157,337)
62,094

4,188,380
11,761,887—/

4,012,121
10,348,763—/

77,460(209,539)—(22,617)

77,460(209,539)—( 22,760)¥¥

Contract value
Total
Over one year

As of March 31, 2015

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
Receive Float / Pay Float
Total

¥

20,114,158
18,446,654¥

10,963,649
8,159,936

Millions of yen
Unrealized
gains (losses)

Fair value¥(72,633)
66,886¥(72,633)
66,886

1,400,403
2,237,975

171,604
216,340(2,288)
2,977

1,258
(1,663)

10,996,182
10,280,528

2,026,655
901,965(7,643)
4,519(7,643)
4,519

469,271,002
465,176,624
77,934,862
759,547

367,963,727
361,554,098
54,389,480
702,891

9,081,978(8,881,155)
24,135
15,6929,081,978(8,881,155)
24,135
15,692

12,678,598
8,857,843

7,466,690
5,410,994(175,701)
146,701(175,701)
146,701

4,955,416
11,634,436
42,678/4,692,702
10,636,915—/

92,893(140,360)(5)
155,997

92,893(140,360)(5)
154,904¥¥

223

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

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
Receive Float / Pay Float
Total

224

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

$ 140,617,462
136,029,342$ 47,956,550
48,276,333$

2,365,947
5,850,051

313,811
1,248,795(6,077)
5,648

1,967
(3,667)

146,561,940
77,627,032

22,068,752—(65,907)
2,856(65,907)
2,856

3,995,070,557
3,950,537,911
690,851,638
6,831,442

3,091,209,094
3,008,083,195
512,594,510
6,573,037

97,516,186(96,125,965)
360,035
200,763

97,516,186(96,125,965)
360,035
200,763

84,398,194
54,641,339

54,665,946
35,664,752(1,396,196)
551,021(1,396,196)
551,021

37,167,276
104,373,834—/

35,603,173
91,833,915—/

687,379(1,859,429)—(200,705)

687,379(1,859,429)—(201,976)$(898,530)
827,511$$(898,530)
827,511(b) Currency-Related Transactions
Contract value
Total
Over one year

As of March 31, 2016

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal¥¥

Fair value

120
36,677

¥

¥

(61)
41

¥

(61)
41

42,725,365

27,770,539

81,081

67,031

61,814,420
26,644,388

3,398,506
1,077,489

516,292(360,548)

516,292(360,548)

3,159,248
2,857,596

1,138,887
938,677(148,426)
100,894(47,789)(2,122)

4,031,159

3,332,541(183,406)(17,723)

149,337/—/¥

Contract value
Total
Over one year

As of March 31, 2015

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

20,86773,227

Millions of yen
Unrealized
gains (losses)

26,33344,356¥

2,329
21,625869
6,736

Millions of yen
Unrealized
gains (losses)

Fair value

¥

—
—

869
155,987¥¥——

39,935,672

25,590,121(23,922)(68,615)61,859,800
27,467,918

3,505,977
1,866,989(729,229)
883,713(729,229)
883,713

4,079,543
3,666,208

1,354,653
1,159,267(318,638)
145,563(184,339)
18,0542,293,679

1,534,304

184,643

3,577

158,892/—/¥(2,766)
139,364¥(2,766)(79,605)

225

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year$

185,173
649,817$

1,065
325,471

$

(549)
364

$

(549)
364

379,140,701

246,433,044

719,509594,828

548,535,097
236,439,691

30,158,016
9,561,537

4,581,532(3,199,476)

4,581,532(3,199,476)

28,034,862
25,358,031

10,106,376
8,329,733(1,317,120)
895,328(424,083)(18,835)

35,772,115

29,572,646(1,627,530)(157,281)

1,325,210
/

—
/

$

7,720
59,7787,720
1,384,220$(c) Stock-Related Transactions
Contract value
Total
Over one year

As of March 31, 2016

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
Bought
Total

226

¥

339,684
34,398¥19,677—

Millions of yen
Unrealized
gains (losses)

Fair value

¥

(133)
(206)

¥

(133)
(206)

796,933
743,949

238,770
153,025(56,915)
44,429(6,219)6,289

157,043

128,828

28,06528,065605,923
245,280

547,166
208,203(76,011)71,052(65,717)
59,4192,061
329,081/—
312,695/(87)
13,33723,530(87)
13,33734,745¥¥

Contract value
Total
Over one year

As of March 31, 2015

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal¥¥

18,332
1,430

Fair value¥$(3,833)196¥(3,833)
196

663,199645,806

172,682
145,100(68,155)
58,483(36,499)
28,089181,297

173,993

3,473

3,473

495,265
317,510364,698
218,019(124,602)
133,441(111,770)
120,027

12,127
143,454/—
132,512/220
11,05010,275220
11,05010,955¥3,014,331
305,250$

174,619—¥

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

As of March 31, 2016

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

390,456
27,315

Millions of yen
Unrealized
gains (losses)$(1,185)(1,837)$(1,185)(1,837)

7,071,907
6,601,730

2,118,821
1,357,929(505,060)
394,264(55,192)
55,8081,393,588

1,143,213

249,048

249,048

5,376,909
2,176,600

4,855,504
1,847,580(674,517)
630,517(583,173)
527,282

18,2972,920,235/—
2,774,828/(774)
118,354
208,810(774)
118,354308,331$$227

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Over
one year

Total

¥

2016
Fair
Unrealized
value gains (losses)——¥ (2,364)
3,295

87,526
235,566

—
—

(100)
327

9
(130)

908,250
45,968451,639451,639/

338,264
338,264/(23,808)
23,737¥ 1,086(23,391)
23,314¥732

831,084
843,332/

Contract value

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

228

Total

559,493 ¥661,3092016
As of March 31,

Contract value

Total$ 4,964,893
5,868,398
776,6992,090,395Over
One year$Thousands of U.S. dollars
Fair
Unrealized
value gains (losses)— $ (20,984)—
29,242——¥ (2,364) ¥ 651,757
3,295
537,221$ (20,984)
29,242

(891)
2,903

85
(1,155)

4,007,805 3,001,722 (211,271)
4,007,805 3,001,722
210,647
9,646
/
/ $

(207,574)
206,888
$
6,502

Over
one year¥

Millions of yen

2015

Fair
Unrealized
value gains (losses)— ¥ (3,524)
—
2,738
—
—

¥ (3,524)
2,738

(155)
35

(44)
0

165,564(22,095)
165,564
21,287/ ¥ (1,713)(19,935)
19,923¥(840)

(e) Commodity-Related Transactions

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
Bought
Total

2,301
3,890

¥

714
1,544

10,301
10,3300

197

96,04530,46730,467
83,472(26,324)(26,324)/ ¥ 4,124 ¥4,124

163,398
149,067/—

162,916
157,433/

Contract value

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
Bought
Total

Total

$

20,41934,5292,043
1,445,707
1,397,052
/

¥

$

2016

(37)
18

¥

0

¥

Fair
value

Unrealized
gains (losses)

170 ¥
365

597
(618)

¥

597
(618)

—

(37)

(37)

93,254
9,049
76,317(4,657)/ ¥ 4,332

9,049(4,657)¥ 4,332

Thousands of U.S. dollars

Over
one year

Fair
Unrealized
value gains (losses)

6,344 $
13,708

(334)
161

—

Over
one yearTotal(37) ¥
18

230

As of March 31,

Fair
Unrealized
value gains (losses)

Millions of yen

2015

Contract valueOver
one year

Total

¥

2016

$

(334)
161

7

7

852,296
270,366
740,723 (233,598)/ $ 36,602

270,366(233,598)$ 36,602

Note: Commodities include oil, copper, aluminum and others.

229

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Contract value
Total
Over one year

As of March 31, 2016

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

As of March 31, 2016

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥ 1,828,065
2,006,634/¥

2,441,236
2,625,807/¥

2,098,088
2,290,170/¥

15,125(8,319)6,805¥$ 20,997,637
22,999,936/$ 16,222,078
17,806,679
/

¥

¥
¥

33,718(28,307)
5,410

15,125(8,319)6,805¥

Millions of yen
Unrealized
gains (losses)

Fair value¥

33,718(28,307)
5,410¥

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

230

Fair value

Contract value
Total
Over one year

As of March 31, 2015

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

2,366,223
2,591,862/

Millions of yen
Unrealized
gains (losses)$$

134,219(73,827)
60,392$$

134,219(73,827)
60,392

(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions

As of March 31, 2016

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

As of March 31, 2015

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothers¥27,546,603
8,262,649—¥ 24,527,041
7,771,614—

60,383
1,056

23,032515

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersFair value¥

477,925(162,603)
—

222
(143)
Note 2.

10,00060,890/Primary
hedged items

Millions of yen

Contract value
Total
Over one year

Primary
hedged items—
56,087/¥

Millions of yen

Contract value
Total
Over one year

¥ 25,936,670
7,459,578
42,678¥ 23,540,848
7,216,778—

291,094
1,774

239,313
1,199

315,400

Fair value¥

256,734(120,535)
5(1,384)(190)
Note 2.

30,00060,945/

10,00048,652/¥

134,629231

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 244,445,852
73,321,939—$ 217,650,555
68,964,543—

535,838
9,377

204,390
4,574$

4,241,061(1,442,925)—

1,973(1,272)
Note 2.

88,739540,335/—
497,711/$2,798,837

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24,
February 13, 2002).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “41.
Financial Instruments.”

232

(b) Currency-Related Transactions

As of March 31, 2016

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

As of March 31, 2015

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersPrimary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

8,181,167¥

270,432

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersShort-term bonds¥

144,898
3,189
Note 2.

—/¥¥7,560,770
281,490¥2,045,971

148,088

Millions of yen

Contract value
Total
Over one year

Primary
hedged items

Short-term bonds

3,746,111

Fair value

—

2,046
/

Total

As of March 31, 2016¥

Short-term bonds

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersMillions of yen

Contract value
Total
Over one year

Primary
hedged items

Fair value¥—(136,735)(33)
Note 2.

2,729

—

/

/

¥

(136,769)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 72,598,874$ 33,242,622

2,399,793—$

1,285,820
28,305Note 2.

18,156/—/$

1,314,125

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.
25, July 29, 2002).
2. Forward Exchange Contracts qualifying for the allocation method are treated as a unit of short-term bonds,
hedged items.

233

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions

As of March 31, 2016

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2015

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2016

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

234

Contract value
Total
Over one year

Primary
hedged items

Other securities¥

181,617¥

Other securities
¥

117
179

—
—

/

/

113,707¥

Fair value

132,309

Contract value
Total
Over one year

Primary
hedged items

Millions of yen

—

131
277

—
—

/

/

¥

18,172¥0(1)18,170Millions of yen
Fair value¥(21,765)¥(3)
3(21,764)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Other securities$

1,611,657$

1,174,103

1,042
1,596

—
—

/

/

$

161,262$1(15)
161,248

44. Segment Information
Segment Information by Management Approach
1. Summary of Reportable Segment
We engage in banking, trust banking, securities and other businesses through consolidated subsidiaries and affiliates. As
these subsidiaries and affiliates are in different industries and regulatory environments, we disclose business segment
information based on the relevant principal consolidated subsidiaries such as MHBK, MHTB and MHSC for investors tomeasure the present and future cash flows properly.
Operating segments of MHBK are aggregated based on the type of customer characteristics and are aggregated into thefollowing seven reportable segments: Personal Banking; Retail Banking; Corporate Banking (Large Corporations);
Corporate Banking; Financial Institutions & Public Sector Business; International Banking; and Trading and others.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts), Net
Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans), and the Amount of 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) is the total amount of Interest income, Fiduciaryincome, Fee and commission income, Trading income, and Other operating income.
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) generalreserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring expenses)
and Others (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from
Gross profits (excluding the amounts of credit costs of trust accounts).
Asset information by segment is not prepared on the grounds that management does not use asset information of eachsegment for the purpose of asset allocation or performance evaluation.
Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments
is based on the current market price.

235

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) and 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) by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2016

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

236

OthersFinancial
Institutions& Public
sectorbusiness

International

Tradingandothers¥ 97,500¥ 32,500¥ 175,500¥ 61,051¥ 830,051¥ 129,362¥ 959,413

143,700¥ 316,700

77,500¥ 175,000

31,800¥ 64,300

185,100¥ 360,600

97,569¥158,620

633,769¥1,463,820

41,552¥ 170,914

675,321¥1,634,734

118,600—

91,900—75,200—29,800—122,100—

161,310—

833,310—69,956(22,116)

903,266(22,116)¥ 25,400 ¥ 10,200¥ 224,800¥ 99,800¥ 34,500¥ 238,500¥ (2,690)¥ 630,509¥ 78,842¥ 709,352

Retailbanking

Corporatebanking(Largecorporations)¥ 214,800 ¥ 75,700¥ 173,000

45,00053,100¥ 259,800 ¥128,800

Personalbanking

234,400—

CorporatebankingMHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)MHSC(Consolidated)¥ 36,052¥

130,702¥ 166,755

5,426

Others¥

MHFG(Consolidated)

2,789¥ 1,003,682

343,765¥ 349,192

68,143¥ 70,932

1,217,933¥ 2,221,615

99,101(4,184)

279,35144

63,2402,455

1,344,960(23,800)¥ 63,468¥ 69,885¥ 10,147¥ 852,854

237

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2015

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

238

Financial
Institutions& Public
sectorbusiness

International

OthersTradingandothersRetailbanking

Corporatebanking(Largecorporations)¥ 213,400 ¥ 77,600¥ 179,500¥ 99,600¥ 33,300¥ 147,100 ¥ 184,396 ¥

934,896¥ 152,401¥ 1,087,298

48,70053,700¥ 262,100 ¥131,300

128,000¥ 307,500

79,800¥ 179,400

27,400¥ 60,700

164,900
58,074
560,574¥ 312,000 ¥ 242,471 ¥ 1,495,471

37,845¥ 190,247

598,420¥ 1,685,718

118,400—

94,400—76,500—30,300—833,737—

70,963(43,198)

904,700(43,198)¥ 28,600 ¥ 12,900¥ 213,100¥ 102,900¥ 30,400

661,733¥ 76,085

Personalbanking

233,500—

Corporatebanking

92,600—188,037—¥ 219,400 ¥ 54,433 ¥¥

737,819

MHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)MHSC(Consolidated)¥ 39,484¥

122,565¥ 162,049

1,753

Others¥

MHFG(Consolidated)897¥ 1,129,433

335,799¥ 337,552

61,520¥ 62,418

1,118,305¥ 2,247,738

94,527(3,697)

267,97032

54,025(2,689)1,321,224(49,552)¥ 63,824¥ 69,614¥ 5,703¥ 876,961

239

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

For theFiscal Year
ended
March 31,
2016

Gross
Profits(excluding theamountsof credit
costs oftrust
accounts)
Net
Interest
IncomeNet Noninterest
Income
Total
Generaland
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet
Business
Profits(excluding theamountsof credit
costs oftrust
accounts,
beforereversalof(provisionfor)generalreservefor losses
on loans)

240

Personalbanking

Retailbanking

Corporatebanking(Largecorporations)$1,906,114$ 671,754

399,326$2,305,440

MHBK (Consolidated)
MHBK (Unconsolidated)

OthersCorporatebanking

Financial
Institutions& Public
sectorbusiness

International$1,535,185$ 865,205$288,402$1,557,370$ 541,762 $ 7,365,792$1,147,947

471,204$1,142,958

1,275,180$2,810,365

687,727$1,552,932

282,190$570,592

1,642,559$3,199,929

865,820
5,624,006$1,407,582 $12,989,798

368,732
5,992,738$1,516,679 $14,506,477

2,080,043—

1,052,444—

815,512—667,317—

264,442—

1,083,504—

1,431,453—

7,394,715—

620,784(196,257)

8,015,499(196,257)$ 225,397$$1,994,853$ 885,615$306,150$2,116,425$ (23,871) $ 5,595,083$ 699,638$ 6,294,721

90,514

Tradingandothers$ 8,513,739

MHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
IncomeNet Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)$

319,931MHSC(Consolidated)$

Others

MHFG(Consolidated)

48,157$ 24,751$ 8,906,578

1,159,840$ 1,479,771

3,050,544$ 3,098,701

604,698$ 629,449

10,807,820$ 19,714,398

879,419(37,135)

2,478,936
393

561,192
21,792

11,935,046(211,207)$ 563,217$ 620,158$ 90,049$ 7,568,145

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general
corporations.
2. “Others” includes elimination of transactions between each subsidiary.
3. Following the change in the allocation method between customer segments made in April, 2015, reclassification was made on
the above table for the fiscal year ended March 31, 2015 to reflect the relevant change.

241

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) and that of Net businessprofits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve forlosses on loans) 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) of Segment Information and
Ordinary Profits
Thousands of
U.S. dollars

Millions of yen
2016

2015

2016

Gross Profits (excluding the amounts of credit costs of trust
accounts):
Total Amount of the Above Segment Information¥ 2,221,615¥ 2,247,738$ 19,714,398
Other Ordinary Income
344,674
301,037
3,058,606
General and Administrative Expenses(1,349,593)(1,351,611)(11,976,156)
Other Ordinary Expenses(219,166)(186,296)(1,944,866)
Ordinary Profits¥
997,529¥ 1,010,867$ 8,851,982
Note: Ordinary profits represents Total Income excluding certain special income less Total Expenses excluding certain
special expenses.

(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) of Segment Information and Income before Income Taxes
Recorded in Consolidated Statement of Income
Thousands of
U.S. dollars

Millions of yen

Net Business Profits (excluding the amounts of credit costs oftrust accounts, before reversal of (provision for) general reserve
for losses on loans):
Total Amount of the Above Segment Information
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 Loans,and other
Net Gains (Losses) Related to Stocks
Net Extraordinary Gains (Losses)
Other
Income before Income Taxes Recorded in Consolidated
Statement of Income

242

2016

¥

¥

852,854—(4,632)

2015¥

876,961—(30,386)

2016$

7,568,145—(41,110)(47,745)(87,051)(423,686)

17,297
205,678
10,722(25,923)

82,351
131,910(20,235)
37,082

153,500
1,825,172
95,149(230,039)

1,008,252¥

990,632$

8,947,131

5. Related Information(a) Information about Geographic Areas(i) Ordinary income

2016

Ordinary Income

2015

Ordinary Income

2016

Ordinary IncomeJapan¥ 2,406,320

Americas¥Japan¥ 2,375,535

Europe¥Americas¥Japan$ 21,353,452

322,385$284,770

149,234

Europe¥184,355

Americas

Europe2,860,820$ 1,324,296

Asia/Oceania
excluding Japan

¥

337,332

Millions of yen
Total

¥

Millions of yen

Asia/Oceania
excluding Japan

¥335,564

3,215,274

Total

¥

3,180,225

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total$ 2,993,458$ 28,532,026

Notes: 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2016 and 2015 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.

243

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
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking
For the Fiscal Year
ended March 31, 2016

Impairment Loss¥

Retailbanking

— ¥

—

¥

¥

Corporatebanking— ¥MHSC(Consolidated)

MHTB(Consolidated)

Impairment Loss

Corporatebanking(Largecorporations)

—

¥

843

—

Financial
Institutions& Public
sectorbusiness¥— ¥OthersTradingandothers— ¥ 3,568 ¥ 3,568 ¥0¥ 3,569

MHFG(Consolidated)

Others¥International—¥ 4,412

Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking
For the Fiscal Year
ended March 31, 2015

Impairment Loss¥

Retailbanking

— ¥

—

MHTB
(Consolidated)

Impairment Loss

244

¥ 59

Corporatebanking(Largecorporations)¥

Corporatebanking— ¥MHSC(Consolidated)

¥

859

—

Financial
Institutions& Public
sectorbusiness

¥

— ¥

52

OthersTradingandothers— ¥10,387 ¥ 10,387 ¥MHFG(Consolidated)

Others¥International¥ 11,358

0 ¥ 10,387

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal
Year ended
March 31, 2016

Impairment
Loss

$

— $

—

$

— $

—

$

—

$

7,488

$

OthersTradingandothersInternational— $—$ 31,664 $ 31,664$ 8 $ 31,672

MHFG(Consolidated)

OthersMHSC(Consolidated)

MHTB(Consolidated)

Impairment
Loss$

Financial
Institutions& Public
sectorbusiness

Corporatebanking

Corporatebanking(Largecorporations)

Retailbanking

Personalbanking—$ 39,160

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

For the Fiscal Year ended
March 31, 2016

Amortization of Goodwill ¥Unamortized Balance of¥Goodwill

Retailbanking

— ¥

—

— ¥

—

MHTB
(Consolidated)

Amortization of Goodwill
Unamortized Balance ofGoodwill¥

Corporatebanking(Largecorporations)

Corporatebanking

¥

— ¥

—

¥

— ¥

—

MHSC
(Consolidated)

OthersFinancial
Institutions& Public
sectorbusiness

International

¥

—

¥

— ¥

— ¥

—

¥

¥

—

¥

— ¥

— ¥

—

¥ 7,176 ¥ 7,176

Tradingandothers

624 ¥

624

MHFG
(Consolidated)

Others

205

¥

—

¥

—

¥

830

¥ 16,264

¥

—

¥

—

¥ 23,440

245

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

For the Fiscal Year ended
March 31, 2015

Amortization of Goodwill ¥Unamortized Balance of¥Goodwill

Retailbanking

— ¥

—

— ¥

—

Corporatebanking(Largecorporations)

Corporatebanking

¥

— ¥

—

¥

— ¥

—

International

¥

—

¥

— ¥

— ¥

—

¥

¥

—

¥

— ¥

— ¥

—

¥10,553 ¥10,553

Tradingandothers

785 ¥

785

MHFG
(Consolidated)

OthersMHTB(Consolidated)

MHSC(Consolidated)

¥

—

¥

—

¥

2,912

¥

¥

—

¥

—

¥

48,063¥ 58,617

Amortization of Goodwill
Unamortized Balance ofGoodwill

OthersFinancial
Institutions& Public
sectorbusiness

3,698

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

Retailbanking

For the Fiscal Year ended
March 31, 2016

Amortization of Goodwill $Unamortized Balance of$Goodwill

246$

Corporatebanking

Financial
Institutions& Public
sectorbusiness

International

Tradingandothers

— $

—

$

— $

—

$

—

$

— $

—

$

—

$ 5,541 $ 5,541

— $

—

$

— $

—

$

—

$

— $

—

$

—

$ 63,682 $ 63,682

MHTB(Consolidated)

Amortization of Goodwill
Unamortized Balance ofGoodwill

Corporatebanking(Largecorporations)

OthersMHSC(Consolidated)

MHFG(Consolidated)

Others

1,827

$

—

$

—

$

7,368

$ 144,330

$

—

$

—

$ 208,012

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
For the fiscal years ended March 31, 2016 and 2015
・There is no applicable information.

45. Related Party
For the fiscal years ended March 31, 2016 and 2015
・There are no material additions to the current scope subject to disclosure.

247

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, 2016 and 2015 are calculated based on the following
information:
As of or for the fiscal years ended March 31,

2016

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

Yen

U.S. dollars
2016

2015

¥ 322.46¥ 322.86$ 2.86

26.94

24.91

0.24

26.42

24.10

0.23

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2016

As of March 31,

Total Net Assets¥ 9,353,244
Deductions from Total Net Assets
1,285,343
Paid-in Amount of Preferred Stock98,923
Cash Dividends on Preferred Stock989
Stock Acquisition Rights
2,762
Non-Controlling Interests
1,182,668
Net Assets (year-end) related to Common
Stock8,067,900
Year-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
calculated
25,019,596 Thousand shares

2015

Thousands of U.S. dollars
2016¥ 9,800,538
1,854,668
213,1202,131
3,820
1,635,595$ 82,999,773
11,406,013
877,838
8,779
24,515
10,494,881

7,945,869

71,593,760

24,610,248 Thousand shares/

2. Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
2016

For the fiscal years ended March 31,

Profit Attributable to Owners of Parent
Amount not attributable to Common Stock
Cash Dividends on Preferred Stock
Profit Attributable to Owners of Parent
related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)¥

670,943
2,429
2,429

¥

668,51324,806,160 Thousand shares

2015

Thousands of U.S. dollars
2016

611,935
4,910
4,910

$ 5,953,885
21,563
21,563607,025

5,932,322

24,368,115 Thousand shares/

3. Diluted Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
For the fiscal years ended March 31,

Adjustment to Profit Attributable to Ownersof Parent¥
Cash Dividends on Preferred Stock
Increased Number of Shares of Common
Stock
Preferred 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

248

Millions of yen
2016

2,429
2,429
580,872 Thousand shares
563,044 Thousand shares
17,828 Thousand shares
—

2015

¥

Thousands of U.S. dollars
2016

4,910
4,910
1,012,931 Thousand shares
994,744 Thousand shares
18,186 Thousand shares—$

21,563
21,563////

4. As indicated in “6. Change in Accounting Policies” , Mizuho Financial Group has applied the Business
Combinations Accounting Standard and others and the Accounting Standards have been applied in accordancewith the transitional treatment set forth in Article 58-2 (3) of the Business Combinations Accounting Standard,
Article 44-5 (3) of the Consolidation Accounting Standard, and Article 57-4 (3) of the Business Divestitures
Accounting Standard.
As a result of this, the impact on Net Assets per Share of Common Stock, Profit Attributable to Owners of
Parent per Share of Common Stock, and Diluted Profit Attributable to Owners of Parent per Share of Common
Stock for the fiscal year ended March 31, 2016 is immaterial.

47. Subsequent Events
Mizuho Financial Group, Inc. decided to redeem in full preferred securities issued by its group’s overseas special purpose
subsidiaries on May 13, 2016, as set forth below.
(1) Issuers(2) Type of securities(3) Total redemption amount(4) Scheduled redemption date(5) Major reasons for the redemption

a. Mizuho Capital Investment (USD) 1 Limitedb. Mizuho Capital Investment (JPY) 1 Limited
Non-cumulative Perpetual Preferred Securities
a. US$ 600 millionb. ¥400,000 million
June 30, 2016
Arrival of optional redemption date

249

250

Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Three Subsidiaries[Under Japanese GAAP]
Mizuho Financial Group, Inc.
252

Non-Consolidated Balance Sheet

253

Non-Consolidated Statement of Income

Mizuho Bank, Ltd.
254

Non-Consolidated Balance Sheet

256

Non-Consolidated Statement of Income

Mizuho Trust & Banking Co., Ltd.
257

Non-Consolidated Balance Sheet

259

Non-Consolidated Statement of Income

Mizuho Securities Co., Ltd.
260

Non-Consolidated Balance Sheet

262

Non-Consolidated Statement of Income251Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2016

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

2015

¥

90,816
16,442
74,374
6,973,394
165,803
8,451
6,022,661
776,478¥

90,636
12,72977,9076,512,468
166,381
4,269
6,023,428
318,389$

805,897
145,907659,990
61,881,222
1,471,324
74,99953,444,505
6,890,394¥

7,064,211¥

6,603,104$

62,687,119¥

1,197,207
686,345
500,000
10,862669,794¥

1,208,717
700,135
500,000
8,582
298,181$

10,623,906
6,090,558
4,436,951
96,397
5,943,694¥

1,867,002

1,506,898

16,567,600

5,151,857
2,255,790
1,195,830
1,195,682
147
1,703,049
4,350
1,698,699
1,698,699(2,813)42,58842,5882,762
5,197,208
7,064,211

5,041,680
2,255,404
1,195,363
1,195,296
66
1,593,924
4,350
1,589,574
1,589,574(3,011)50,70450,704
3,820
5,096,205
6,603,104

45,717,079
20,017,666
10,611,685
10,610,372
1,313
15,112,696
38,602
15,074,094
15,074,094(24,968)
377,925
377,925
24,515
46,119,519
62,687,119¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

252

Thousands of
U.S. dollars
2016$Non-Consolidated Statement of Income
Millions of yen
2016

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¥¥

333,500
292,883¥

Thousands of
U.S. dollars
2016

2015

377,777
344,668$

2,959,450
2,599,024

40,616
31,06331,063

33,10926,85426,854360,426
275,655
275,655

302,436
23,587
21,117
304,906

350,922
10,150
11,630349,4422,683,795
209,310
187,393
2,705,712

334
182
304,389

325
116
349,001

2,965
1,620
2,701,127¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

253

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

Millions of yen
2016

As of March 31,

AssetsCash and Due from Banks¥
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

254

30,156,145 ¥
266,249
368,351―
729,8426,421,352
3,197
37,903,140
70,374,392
1,343,546
6,696,402
836,484
306,867
417,687
23,356
19,346
69,226
636,583
245,168
10,643
380,770469,034
5,297,202(379,190)―¥ 161,122,736

Thousands of
U.S. dollars
2016

2015

25,803,781
396,839525,653
133,336543,683
5,761,693
3,249
41,235,710
70,873,844
1,559,516
6,798,521
828,583
304,662
423,722
16,711
13,582
69,904
469,546
245,869
7,305
216,371415,694
6,193,731(434,828)(1)¥ 161,108,555$

267,602,677
2,362,675
3,268,713―
6,476,555
56,982,448
28,371
336,348,747
624,495,455
11,922,503
59,423,215
7,422,884
2,723,113
3,706,522
207,263
171,676
614,310
5,648,9782,175,602
94,454
3,378,922
4,162,170
47,006,859(3,364,903)―$ 1,429,787,347

Non-Consolidated Balance Sheetー(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
Short-term Bonds
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 on 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 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

Millions of yen
2016

Thousands of
U.S. dollars
2016

2015

¥ 111,374,133
1,127,524
7,588,922¥ 108,358,400
3,469,055
10,131,327$

988,323,128
10,005,543
67,343,352

786,431
777,601
5,198,295
8,697,522
682,188
―4,376,773
7,422,691
20,437
1,300
267
800
15,041
39,245302,072
67,991
5,297,202

513,983―
4,397,160
8,315,873
625,566
25,0004,624,117
6,647,270
19,933―13
1,544
14,772
48,878337,508
72,392
6,193,731

6,978,714
6,900,364
46,129,162
77,180,965
6,053,673―
38,839,058
65,868,232
181,359
11,542
2,370
7,106
133,479
348,258
2,680,558
603,347
47,006,859

153,776,443

153,796,531

1,364,597,069

5,922,330
1,404,065
2,286,795
655,324
1,631,471
2,231,469
169,829
2,061,640
2,061,640
1,423,961
1,106,333
169,143
148,483
7,346,292¥ 161,122,736

5,673,213
1,404,065
2,286,795
655,324
1,631,471
1,982,352
121,296
1,861,055
1,861,055
1,638,811
1,497,419(5,028)146,419
7,312,024¥ 161,108,555

52,554,184
12,459,535
20,292,803
5,815,287
14,477,516
19,801,846
1,507,047
18,294,799
18,294,799
12,636,094
9,817,498
1,500,965
1,317,631
65,190,278$ 1,429,787,347

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

255

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

2015

Thousands of
U.S. dollars
2016¥ 1,207,062
801,996
284,113477,788
96,734
197,715
278,912¥ 1,258,141
807,368
327,025
471,563
48,535
248,620
211,888$ 10,711,352
7,116,839
2,521,197
4,239,852
858,410
1,754,508
2,475,038

2,258,212

2,238,748

20,039,160

377,013168,237
91,4752,282
44,711
832,319
207,496
1,555,299

323,247
119,269
88,033―
120,110855,795
183,516
1,570,704

3,345,582
1,492,926
811,745
20,251
396,767
7,385,921
1,841,305
13,801,571

702,913

668,044

6,237,589

161,424
51,276490,212

209,116
35,740423,188

1,432,464
455,025$ 4,350,100

Millions of yen
2016

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 before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

256

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
Construction in Progress
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
Reserve for Possible Losses on Investments
Total Assets

2015

Thousands of
U.S. dollars
2016¥ 1,665,011
5,520
215,970
13,358
127,305
2,578
1,492,120
3,496,313
3,675
80,64824,632
10,390
11,246100
2,896
24,022
14,7509,271
49,79543,749(5,636)―¥ 1,457,944
6,852―
48,71367,185
3,415
1,887,153
3,068,451
7,088
79,017
26,561
10,541
11,246―
4,773
17,624
14,535
3,089
45,78541,828(6,811)(1)$ 14,775,147
48,991
1,916,498
118,545
1,129,694
22,88013,240,928
31,025,946
32,619715,670
218,590
92,202
99,796887
25,705
213,172
130,894
82,278441,878
388,232(50,017)―¥ 7,239,067¥ 6,750,811$ 64,238,773

Millions of yen
2016

257

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheetー(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 on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2015

Thousands of
U.S. dollars
2016¥ 3,409,338
1,162,877
67,602¥ 3,216,851
1,072,860
12,022$ 30,254,133
10,319,259
599,894

420,713
121,483
366,955
0
10,0001,019,554
60,074
1,953
401
1,113
12,04343,749436,750
63,242
221,967―
42,2001,008,363
43,236
1,909
―
1,079
22,342
41,8283,733,370
1,078,035
3,256,326
088,7399,047,427
533,092
17,332
3,563
9,877
106,873
388,232

6,697,859

6,184,654

59,436,152

442,965
247,369
15,505
15,505
180,091
23,327
156,763
156,763
98,24197,740501
541,207¥ 7,239,067

431,810247,369
15,505
15,505
168,935
17,471
151,464
151,464
134,345
136,022(1,676)566,156¥ 6,750,811

3,930,836
2,195,135
137,591
137,591
1,598,110
207,010
1,391,100
1,391,100
871,785
867,3374,448
4,802,621$ 64,238,773

Millions of yen
2016

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

258

Non-Consolidated Statement of Income

2015

Thousands of
U.S. dollars
2016¥ 53,324
47,04328,497
16,68353,927
1,347
25,29014,352¥ 51,947
49,68330,524
17,07554,6782,494
18,016
15,902$ 473,197
417,458
252,888
148,052
478,544
11,959224,428
127,366

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

195,286

192,723

1,732,952

11,284
2,694
25,936
8,137
79,954
10,370

10,392
2,596
25,5386,625
78,4603,791

100,141
23,913
230,154
72,215709,51092,029Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

135,684
59,602

124,808
67,914

1,204,049
528,903

15,945
3,215

5,643
5,027

141,503
28,537¥ 40,440¥ 57,243$ 358,863

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

Net Income

Millions of yen
2016

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

259

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet
Millions of yen
2016

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
Receivables - unsettled Trades
Operating Investment Securities
Operating Loans Receivable
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Deferred Tax Assets
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
Total Noncurrent Assets
Total Assets

260¥

283,049
170,684
5,990,021
3,115,313
2,874,707
27,92319,0103,100
98,95854,181¥Thousands of
U.S. dollars
2016

2015

320,613
151,401
4,184,018
2,494,775
1,689,243
580,287
17,516
3,240
74,79450,849$2,511,757
1,514,635
53,154,862
27,644,986
25,509,876
247,795
168,696
27,509878,146
480,805

44,776
3,949,642
3,718,958
230,684
107
370,794
11,9371,020
50,711
1,075
2,647
2,520
23,143
8,735
3,112
(16)

23,945
4,109,246
4,060,231
49,014
189
208,013
25,582
4,826
46,084
600
2,926
4,527
24,167
21,1606,091(12)397,341
35,048,740
33,001,671
2,047,069
954
3,290,396
105,9319,060
450,013
9,541
23,492
22,369205,378
77,516
27,616(143)

11,018,181

9,785,276

97,774,263

14,54042,370308,153
241,992
12,21615,0201,394
41,163(3,634)

15,67834,344
297,869
241,190
12,67012,746
8,297
28,018(5,055)129,035
375,994
2,734,524
2,147,422
108,411
133,289
12,377365,281(32,256)

365,065

347,891

3,239,553¥ 11,383,246¥ 10,133,168$ 101,013,816

Non-Consolidated Balance Sheetー(Continued)

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
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
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

2015

Thousands of
U.S. dollars
20163,909,239
2,294,228
1,615,010
33,922
8,383$ 39,445,044
14,578,804
24,866,240
375,175
96,14931,4433,861,722
1,909,797
1,951,925
136,356
154,0134,271
479,403513,700
55,602
377
1,144
717
26,266
4,400
13,217
790
623
3,293

25,5393,052,857
1,417,601
1,635,255
160,613110,135
8,685
626,792
456,500
67,220
414
1,363
3,221
24,301
2,549
14,757―783
1,524

279,026
34,268,544
16,947,353
17,321,191
1,210,016
1,366,700
37,9044,254,182
4,558,523
493,408
3,352
10,154
6,368
233,089
39,045
117,287
7,015
5,530
29,2289,743,240

8,474,880

86,460,564

548,766
409,400
857
18,034
1,885

496,002524,000
1,351
16,952
2,431

4,869,700
3,632,975
7,613
160,037
16,730978,944

1,040,738

8,687,055

2,005

1,589

17,798Millions of yen
2016

4,445,062
1,642,885
2,802,176
42,278
10,835¥2,005¥

10,724,190

¥

1,589

17,7989,517,208$ 95,165,417

261

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2016

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¥

125,167¥

125,167$

1,110,722

285,831
95,817
381,649

285,831
95,817
381,649

2,536,440
850,279
3,386,719

149,594
149,594
656,411

112,125
112,125
618,941

1,327,489
1,327,489
5,824,930

21,626
24,524(18,982)(27,505)
2,644(2,981)
659,056
615,960¥ 11,383,246 ¥ 10,133,168

191,915(168,446)
23,4695,848,399$ 101,013,816

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

262

2015

Thousands of
U.S. dollars
2016Non-Consolidated Statement of Income
Millions of yen
2016

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 (loss) 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 Sale of Investment Securities
Indemnity receipt from the erroneous stock order
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 Impairment of Investments in Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Head office transfer cost
Cost incurred in opening of joint branches
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes – current
Income Taxes – deferred
Total Income Taxes
Net Income¥¥

155,61730,728¥

2015

146,782
33,795

Thousands of
U.S. dollars
2016$

1,380,934
272,678

27,69328,626

245,748

31,39765,798130,230
4,604
29,402319,855
27,552
292,303
231,895
51,176
85,13526,042
47,955
14,929
3,386
(426)
3,695
60,407
8,055
1,357
67,105
13,43648
565
12,822
2,464
8
254
26
0
146
0
843
577
192

34,22850,131
117,865
2,680
34,249301,578
26,850274,727
217,63145,15485,94425,63438,685
15,065
3,106
431
3,608
57,0964,720
581
61,235
588
89
499
―
2,530
―
386
69
―
―
0
858
881
―

278,616
583,892
1,155,654
40,863260,916
2,838,367
244,494
2,593,873
2,057,819
454,138
755,480
231,096425,554
132,485
30,055(3,787)32,798536,054
71,482
12,051
595,485
119,237
433
5,021
113,783
21,868
73
2,260
232
1
1,297
1
7,481
5,125
1,705

416
78,077
6,915
16,563
23,47954,598334
59,293
4,485
10,734
15,21944,073

3,693
692,854
61,370146,986
208,356
484,498¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.69=US$1.00, the foreign exchange rate on March 31, 2016, has been used for translation.

263

264

Status of Capital Adequacy

266

Capital Adequacy Ratio Highlights

268

Status of Mizuho Financial Group’s
Consolidated Capital Adequacy

268

Scope of consolidation

270

Composition of capital

286

Risk-based capital

289

Credit risk

306

Methods for credit risk mitigation

308

Counterparty risk in derivatives transactions
and long-settlement transactions

310

Securitization exposure

332

Market risk

332

Operational risk

332

Equity exposure in banking book335

Composition of Leverage Ratio

336

Indicators for assessing Global Systemically
Important Banks (G-SIBs)

338

Liquidity Coverage Ratio

340

Compensation of directors,
corporate auditors and employees

2652016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel Framework, based on the "International Convergence of Capital Measurement and Capital Standards: A
Revised Framework" issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy
information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the "Matters
Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions,etc. pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law(Ministry of Finance Ordinance No. 10 of 1982)" (the FSA Notice No. 7 of 2014, etc.).
With respect to the calculation of capital adequacy ratio, we have applied the international standard and adopted (a) theadvanced internal ratings-based approach as a method to calculate the amount of credit risk weighted assets and (b) theadvanced measurement approach as a method to calculate the amount equivalent to the operational risk.

■ Capital adequacy ratio highlights
Mizuho Financial Group (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)
As of March 31, 2016

As of March 31, 201515.41%

14.58%

12.64%
10.50%¥9,638.6
7,905.0
6,566.4¥62,531.1

11.50%
9.43%¥9,508.4
7,500.3
6,153.1¥65,191.9

As of March 31, 2016

As of March 31, 201515.46%

15.30%

12.75%
10.81%¥8,780.2
7,243.6
6,142.2¥56,771.0

12.13%
10.42%¥8,753.5
6,943.1
5,965.7¥57,201.8

As of March 31, 2016

As of March 31, 201515.50%

15.35%

12.66%
10.65%¥8,576.3
7,004.0
5,892.2¥55,306.1

12.01%
10.33%¥8,597.5
6,727.5
5,787.3¥55,981.4

As of March 31, 2016

As of March 31, 201519.52%

19.21%

18.21%
18.21%¥472.1440.4
440.4¥2,418.1

16.68%
16.67%¥511.6444.4
444.1¥2,663.4

Mizuho Bank (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)Mizuho Bank (Non-Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)Mizuho Trust & Banking (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets

266

Capital adequacy ratio highlights(Billions of yen)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Mizuho Trust & Banking (Non-consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets(Billions of yen)
As of March 31, 2016

As of March 31, 201519.80%

19.33%

18.52%
18.52%¥479.5448.4
448.4¥2,421.0

16.79%
16.79%¥502.8436.7
436.7¥2,600.9267

Capital adequacy ratio highlights

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ 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, 2016 and 2015.
(b) Number of consolidated subsidiaries
Consolidated subsidiaries

As of March 31, 2016

As of March 31, 2015

143

150

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, 2016:

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ...........................................Japan
Mizuho Trust & Banking Co., Ltd. ...................Japan
Mizuho Securities Co., Ltd. .............................Japan
Trust & Custody Services Bank, Ltd. .............. Japan
Mizuho Asset Management Co., Ltd. ..............Japan
Mizuho Research Institute Ltd. .......................Japan
Mizuho Information & Research Institute Inc. . Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Factors, Limited ..................................Japan
Shinko Asset Management Co., Ltd. ..............Japan
Mizuho Realty Co., Ltd. ...................................Japan
Defined Contribution Plan Services Co., Ltd. ..Japan
Mizuho-DL Financial Technology Co., Ltd. .....JapanUC Card Co., Ltd. ...........................................Japan
Mizuho Capital Co., Ltd. ..................................Japan

268

Scope of consolidation

Main businessBanking
Trust and banking
Securities
Trust and banking
Investment
management
Research andconsulting
Information technology
Consulting
Credit guarantee
Factoring
Investment
management
Real estate agency
Pension plan-related
business
Application andSophistication of
Financial Technology
Credit card
Venture capital

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
95.8
54.0
98.7

100.0%
100.0
95.8
54.0
100.0

98.6

98.6

91.5
100.0
100.0
100.0
99.6

91.5
100.0
100.0
100.0
99.6

86.7
60.0

76.9
60.0

60.0

60.0

51.0
50.0

51.0
50.0

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Name

Country oforganization

Overseas
Mizuho International plc ..................................U.K.
Mizuho Bank (China), Ltd. .............................. China
Mizuho Securities Asia Limited .......................China
Mizuho Securities USA Inc. ............................ U.S.A.
Mizuho Bank Nederland N.V. ..........................Netherlands
Banco Mizuho do Brasil S.A. .......................... Brazil
Mizuho Trust & Banking (Luxembourg) S.A. ...Luxembourg
Mizuho Bank (USA) ........................................U.S.A.
Mizuho Bank (Switzerland) Ltd ....................... Switzerland
Mizuho Trust & Banking Co. (USA) ................ U.S.A.
Mizuho Capital Markets Corporation ...............U.S.A.
PT. Bank Mizuho Indonesia ............................Indonesia

Main business

Securities and banking
Banking
Securities
Securities
Banking and securities
Banking
Trust and banking
Banking
Trust and banking
Trust and banking
Derivatives
Banking

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

(c) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable
None as of March 31, 2016 and 2015.
(d) Companies that are in the bank holding company’s corporate group but not included in the scope ofaccounting 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, 2016 and 2015.
(e) Restrictions on transfer of funds or capital within the bank holding company’s corporate group
None as of March 31, 2016 and 2015.
(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, 2016 and 2015.

269

Scope of consolidation

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Composition of capital(2) Composition of capital, etc.
(a) Composition of capital disclosure (International standard)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
Common equity Tier 1 capital: instruments and reserves (1)Directly issued qualifying common share
1a+2-1c-26 capital plus related stock surplus and retained
earnings
1aof which: capital and stock surplus¥6,365,502¥/¥5,816,601¥/

3,267,031/

3,152,290/

2

of which: retained earnings

3,196,908/

2,768,510/

1cof which: treasury stock (-)

3,609

/

3,616

/

26

of which: national specific regulatory
adjustments (earnings to be distributed) (-)

94,827/

100,584

/

-

/

-

/

2,762

/

3,820

/

964,710643,140

811,982

1,217,973

14,749/12,106/32,465/

49,114/32,465/

49,114/

7,380,191/

6,693,624/

361,571241,047

205,759

308,639

35,452

23,63542,91964,378326,118

217,412

162,840

244,261

6,614

4,409

4,559

6,839

¥99,158¥66,105¥10,654¥15,981of which: other than above
1b
3
5

6

Subscription rights to common shares
Accumulated other comprehensive income andother disclosed reserves
Common share capital issued by subsidiaries
and held by third parties (amount allowed ingroup CET1)
Total of items included in common equity Tier
1 capital: instruments and reserves subject tophase-out arrangementsof which: amount allowed in group CET1
capital subject to phase-out arrangementson common share capital issued bysubsidiaries and held by third parties
Common equity Tier 1 capital:(A)
instruments and reserves

Common equity Tier 1 capital: regulatory adjustments (2)
8+9
8
9

10

11

Total intangible assets (net of related tax
liability, excluding those relating to mortgage
servicing rights)
of which: goodwill (net of related tax liability,
including those equivalent)of which: other intangibles other than
goodwill and mortgage servicing rights (netof related tax liability)
Deferred tax assets that rely on future
profitability excluding those arising from
temporary differences (net of related tax
liability)
Deferred gains or losses on derivatives underhedge accounting

270

Composition of capital disclosure2016/08/30 18:29:05 / 16241906_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) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
12
13

Shortfall of eligible provisions to expected
lossesSecuritization gain on sale

14

Gains and losses due to changes in own credit
risk on fair valued liabilities

15

Net defined benefit asset

16

Investments in own shares (excluding thosereported in the net assets section)

17

18

19+20+21
19
20
21
22
23
24
25

27
28

Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Amount exceeding the 15% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Regulatory adjustments applied to common
equity Tier 1 due to insufficient additional Tier
1 and Tier 2 to cover deductions
Common equity Tier 1 capital:(B)
regulatory adjustments¥18,041¥12,000¥16,617¥24,806

52

35

154

231

1,419

946

456

685

269,400

179,600

201,673

302,509

1,338

892

1,948

2,923

-

-

-

-

56,10537,40398,658147,987

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

/

-

/

813,702/

540,483/¥6,566,488¥/¥6,153,141¥/

Common equity Tier 1 capital (CET1)
29

Common equity Tier 1 capital (CET1)((A)-(B))

(C)

271

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
Additional Tier 1 capital: instruments (3)
30

31a

30

31b

30

32

30

34-35

33+35
33
35

36

Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as equity under applicableaccounting standards and the breakdown
Subscription rights to additional Tier 1
instruments
Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as liabilities under applicableaccounting standards
Qualifying additional Tier 1 instruments plus
related stock surplus issued by special
purpose vehicles and other equivalent entities
Additional Tier 1 instruments issued bysubsidiaries and held by third parties (amountallowed in group AT1)
Eligible Tier 1 capital instruments subject tophase-out arrangements included in additional
Tier 1 capital: instrumentsof which: directly issued capital instruments
subject to phase out from additional Tier 1of which: instruments issued by subsidiaries
subject to phase out
Total of items included in additional Tier 1
capital: instruments subject to phase-out
arrangementsof which: foreign currency translation
adjustments
Additional Tier 1 capital: instruments

(D)

¥-

¥/

¥-

¥/

-

/

-

/

300,000

/

-

/

-

/

-

/

30,843/29,598/1,144,037/

1,458,197/

1,144,037/

1,458,197

/

-

/

-

/

(21,475)/(24,272)/(21,475)/(24,272)/

1,453,405/

1,463,523

/

-

-

-

-

¥-

¥-

¥-

¥-

Additional Tier 1 capital: regulatory adjustments
37
38

Investments in own additional Tier 1
instruments
Reciprocal cross-holdings in additional Tier 1
instruments

272

Composition of capital disclosure2016/08/30 18:29:05 / 16241906_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) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

39

40

Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above 10%threshold)
Significant investments in the capital ofbanking, financial and insurance entities thatare outside the scope of regulatory
consolidation (net of eligible short positions)
Total of items included in additional Tier 1
capital: regulatory adjustments subject tophase-out arrangements

¥17

¥11

¥377

¥566

88,60659,07150,30175,451

26,176/

65,636

/

9,376

/

35,170/10,750/17,771

/

35

/

231

/

6,013

/

12,462

/

-

/

-

/

114,800/

116,315/(F)

1,338,605/

1,347,208/(G)

7,905,093/

7,500,349

/

-

/

-

/

¥-

¥/

¥-

¥/

of which: goodwill equivalent

42
43

of which: intangible fixed assets recognized
as a result of a mergerof which: capital increase due tosecuritization transactionsof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
Regulatory adjustments applied to additional
Tier 1 due to insufficient Tier 2 to coverdeductions
Additional Tier 1 capital: regulatory(E)
adjustments

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 (4)46
46

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as equity under applicable accounting
standards and the breakdown
Subscription rights to Tier 2 instruments

273

Composition of capital disclosure2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

46

46

48-49

47+49
47
49

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as liabilities under applicable accounting
standards
Tier 2 instruments plus related stock surplus
issued by special purpose vehicles and otherequivalent entities
Tier 2 instruments issued by subsidiaries andheld by third parties (amount allowed in group
Tier 2)
Eligible Tier 2 capital instruments subject tophase-out arrangements included in Tier 2:
instruments and provisionsof which: directly issued capital instruments
subject to phase out from Tier 2of which: instruments issued by subsidiaries
subject to phase out¥324,517¥/¥150,000¥/

169,035/

180,405/

10,269

/

9,250

/

962,928/

1,108,804/

169,035/

180,405/

793,893/928,399/

50

Total of general allowance for loan losses andeligible provisions included in Tier 2

6,031

/

4,621

/

50a

of which: general allowance for loan losses

6,031

/

4,621

/

-

/

-

/

374,012/730,789/

335,046/

671,710/

38,965/59,079/1,846,795/

2,183,870/

50bof which: eligible provisions
Total of items included in Tier 2 capital:
instruments and provisions subject to phaseout arrangementsof which: 45% of unrealized gains on othersecuritiesof which: 45% of revaluation reserve for land

51

Tier 2 capital: instruments andprovisions(H)

Tier 2 capital: regulatory adjustments
52

Investments in own Tier 2 instruments

-

-

1,680

2,520

53

Reciprocal cross-holdings in Tier 2 instruments
Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above the
10% threshold)

-

-

-

-

¥33,374¥22,249¥54,114¥81,17154

274

Composition of capital disclosure2016/08/30 18:29:05 / 16241906_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) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

55

57

Significant investments in the capital banking,financial and insurance entities that are outside
the scope of regulatory consolidation (net of
eligible short positions)
Total of items included in Tier 2 capital:
regulatory adjustments subject to phase-out
arrangementsof which: investments in the capitalbanking, financial and insurance entitiesof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
Tier 2 capital: regulatory adjustments

¥-

¥-

¥-

¥-

79,873/

119,954/

73,859/107,491

/

6,013

/

12,462/(I)

113,248/

175,748/(J)

1,733,547/

2,008,122/(K)

9,638,641/

9,508,471/

480,460/

858,200/

206,661/

226,489

/

4,409

/

6,839

/

179,600/

302,509/89,788/322,361/¥62,531,174¥/¥65,191,951¥/

10.50%

/

9.43%

/

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 (5)Total of items included in risk weighted assets
subject to phase-out arrangementsof which: intangible assets (net of related
tax liability, excluding those relating tomortgage servicing rights)
of which: deferred tax assets that rely on
future profitability excluding those arisingfrom temporary differences (net of related
tax liability)of which: net defined benefit assetof which: investments in the capitalbanking, financial and insurance entities
60

Risk weighted assets(L)

Capital ratio (consolidated)
61

Common equity Tier 1 capital ratio(consolidated) ((C)/(L))

275

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2016

(Millions of yen)
As of March 31, 2015

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
62

Tier 1 capital ratio (consolidated) ((G)/(L))

12.64%/

11.50%/

63

Total capital ratio (consolidated) ((K)/(L))

15.41%/

14.58%/¥672,811¥/¥675,780¥/

112,376/

150,800

/

-

/

-

/

75,828/75,937

/

6,031

/

4,621

/

47,342/45,586

/

-

/

-

/

304,580/

310,879/

1,249,883/

1,458,197/-/

257,085/

1,012,236/

1,180,942

/

¥-

¥/

¥-

¥/

Regulatory adjustments (6)
72

73
74
75

Non-significant investments in the capital ofother financials that are below the thresholds
for deduction (before risk weighting)Significant investments in the common stock offinancials that are below the thresholds fordeduction (before risk weighting)Mortgage servicing rights that are below thethresholds for deduction (before risk weighting)Deferred tax assets arising from temporary
differences that are below the thresholds fordeduction (before risk weighting)

Provisions included in Tier 2 capital: instruments and provisions (7)
76
77

78

79

Provisions (general allowance for loan losses)
Cap on inclusion of provisions (generalallowance for loan losses)
Provisions eligible for inclusion in Tier 2 inrespect of exposures subject to internal ratingsbased approach (prior to application of cap) (ifthe amount is negative, report as "nil")
Cap for inclusion of provisions in Tier 2 underinternal ratings-based approach

Capital instruments subject to phase-out arrangements (8)
82
83
84
85

Current cap on AT1 instruments subject tophase-out arrangements
Amount excluded from AT1 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")
Current cap on T2 instruments subject tophase-out arrangements
Amount excluded from T2 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")

276

Composition of capital disclosure2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Notes: 1. The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of"Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio" (Industry Committee Practical Guideline No. 30 of the JapaneseInstitute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an
examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of thecapital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal controls related
to the calculation of the capital adequacy ratio.

277

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Explanation of (a) Composition of capital disclosure
Reconciliation between "Consolidated balance sheet" and items of consolidated balance sheet and "Composition of capital
disclosure"(Millions of yen)

Items

(Assets)
Cash and due from banks
Call loans and bills purchased
Receivables under resaleagreements
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 asset
Deferred tax assets
Customers' liabilities for acceptancesand guarantees
Reserves for possible losses on
loans
Reserve for possible losses oninvestments
Total assets(Liabilities)
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under repurchaseagreements
Guarantee deposits received under
securities lending transactions
Commercial paper
Trading liabilities
Borrowed money
Foreign exchange liabilities
Short-term bonds
Bonds and notes

278

Explanation of Composition of capital disclosure

Consolidated balance sheet as in publishedfinancial statements

Cross-reference
to Appended
template

As of March 31, 2016

As of March 31, 2015

¥36,315,471
893,545¥29,096,166
444,115

7,805,798

8,582,239

3,407,390

4,059,340

2,979,797
13,004,522
175,638
39,505,971
73,708,884
1,447,743

3,239,831
10,781,735
157,728
43,278,733
73,415,170
1,623,736

3,157,752

3,544,243

6-d4,144,131
1,085,791
804,567
646,428
36,517

4,066,424
1,078,051
657,556
743,382
36,9386-e

4,798,158

5,404,843(459,531)(525,486)-(2)¥193,458,580¥189,684,749¥105,629,071
11,827,533
2,521,008¥97,757,545
15,694,906
5,091,198

16,833,346

19,612,120

2,608,971

2,245,639

1,010,139
10,276,133
7,503,543
492,473
648,381
6,120,928

538,511
8,743,196
7,195,869
473,060
816,705
6,013,731

6-a2-b, 6-b
6-c

2-a
3
4-a

6-f
8-a

8-b

Reference # ofBasel III template
under theComposition ofcapital disclosure2016/08/30 18:29:05 / 16241906_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) Explanation of (a) Composition of capital disclosure-(Continued)(Millions of yen)Items

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 salesof loans
Reserve for contingencies
Reserve for reimbursement ofdeposits
Reserve for reimbursement ofdebentures
Reserves under special laws
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land
Acceptances and guarantees
Total liabilities(Net assets)
Common stock and preferred stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Net unrealized gains (losses) onother securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation
adjustments
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Stock acquisition rights
Non-Controlling interests
Total net assets
Total liabilities and net assets

Consolidated balance sheet as in publishedfinancial statements

Cross-reference
to Appended
template

As of March 31, 2016

As of March 31, 2015

5,067,490

1,780,768

2,571,597

3,474,332

5,532,596
62,171
2,836
51,514

4,261,955
59,86947,518

1,685

1,527

267

13

5,271

7,845

16,15415,851

39,24548,8782,024
414,799

1,607
524,3214-b

67,991

72,3924-c

4,798,158¥184,105,335

5,404,843¥179,884,211

2,255,790
1,110,164
3,197,616(3,609)¥6,559,962

2,255,404
1,110,006
2,769,371(3,616)¥6,131,166

1,296,039

1,737,348

165,264
148,483

26,635
146,419(53,689)(40,454)

51,752160,005¥1,607,851¥2,029,955

2,762
1,182,668¥9,353,244¥193,458,580

3,820
1,635,595¥9,800,538¥189,684,749

Reference # ofBasel III template
under theComposition ofcapital disclosure

6-g

1-a
1-b
1-c
1-d

5

3
1b
7

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

279

Explanation of Composition of capital disclosure2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' equity(1) Consolidated balance sheet(Millions of yen)
As of March
31, 2015

Ref.

Consolidated balance sheet items

As of March
31, 2016

1-aCommon stock and preferred stock¥2,255,790¥2,255,404

1-bCapital surplus

1,110,164

1,110,006

3,197,616(3,609)¥6,559,962

2,769,371(3,616)¥6,131,166

1-c Retained earnings
1-d Treasury stock
Total shareholders' equity(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

280

Explanation of Composition of capital disclosure

Remarks

Including eligible Tier 1 capital
instruments subject to phaseout arrangements
Including eligible Tier 1 capital
instruments subject to phaseout arrangements(Millions of yen)
As of March
31, 2016

As of March
31, 2015

Remarks¥6,460,330¥5,917,185

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,267,031
3,196,908
3,609-

3,152,290
2,768,510
3,616
-

-

-

Shareholders' equity
attributable to preferred shareswith a loss absorbency clauseupon entering into effectively
bankruptcy

2016/08/30 18:29:05 / 16241906_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, 2016

As of March
31, 2015

2-a Intangible fixed assets
2-b Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥804,567
39,505,971¥657,556
43,278,733

35,646

48,680

Income taxes related to above¥(237,595)¥(191,837)

Ref.

Consolidated balance sheet items(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, 2015¥59,087¥107,297

543,531

407,101

-

-

-

-

-

-

-

-

15

Remarks

Software and other(Millions of yen)

Consolidated balance sheet items

As of March
31, 2016

As of March
31, 2015

Net defined benefit asset¥646,428¥743,382

Income taxes related to above¥(197,428)¥(239,199)(2) Composition of capitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)
As of March
31, 2016

3. Net defined benefit asset(1) Consolidated balance sheet
Ref.

Remarks

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2016

As of March
31, 2015

Net defined benefit asset¥449,000¥504,183

Remarks

281

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred tax assets(1) Consolidated balance sheet(Millions of yen)
As of March
31, 2016

As of March
31, 2015

Ref.

Consolidated balance sheet items

4-a
4-b

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land

¥36,517414,799¥36,938
524,32167,991

72,392

Tax effects on intangible fixed assets
Tax effects on net defined benefit asset¥237,595
197,428¥191,837
239,1994-c(2) Composition of capitalBasel III
template

10

21
25

75

Composition of capital disclosure(Millions of yen)
As of March
31, 2016

As of March
31, 2015

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥11,024¥11,399

Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

75,82875,937----75,82875,937

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)282

Explanation of Composition of capital disclosure

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.

2016/08/30 18:29:05 / 16241906_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(1) Consolidated balance sheet
Ref.

5

Consolidated balance sheet items

As of March
31, 2015

Deferred gains or losses on hedges¥165,264¥26,635(2) Composition of capitalBasel III
template

11(Millions of yen)

As of March
31, 2016

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2016

As of March
31, 2015

Deferred gains or losses onderivatives under hedge accounting¥165,264¥26,635

Remarks

6. Items associated with investments in the capital of financial institutions(Millions of yen)
(1) Consolidated balance sheet
As of March
31, 2016

As of March
31, 2015¥13,004,522¥10,781,735

6-b Securities
6-c Loans and bills discounted
Derivatives other than for trading
6-dassets6-e Other assets

39,505,971
73,708,884

43,278,733
73,415,170

3,157,752

3,544,243

4,144,131

4,066,424

6-fTrading liabilities

10,276,133

8,743,196

6-gDerivatives other than for trading
liabilities

2,571,597

3,474,332

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

283

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of capitalBasel III
template

16
37
52

17
38
53

18
39
54
72

19
23
40
55
73

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in thecapital of banking, financial andinsurance entities
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Investments in the capital of banking,financial and insurance entities thatare outside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capitalNon-significant investments in thecapital of other financials that are
below the 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%threshold on specified items
Amount exceeding the 15%threshold on specified items
Additional Tier 1 capital
Tier 2 capitalSignificant investments in thecommon stock of financials that are
below the thresholds for deduction(before risk weighting)284

Explanation of Composition of capital disclosure(Millions of yen)
As of March
31, 2016

As of March
31, 2015¥2,231
2,231-¥9,072
4,872
4,200

-

-

-

-

821,973

1,058,656

93,50828
55,624

246,646943
135,285

672,811675,780

260,053

276,553

-

-

-

-

147,677-

125,753-

112,376

150,800

Remarks

2016/08/30 18:29:05 / 16241906_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, 2016

As of March
31, 2015

Non-Controlling interests¥1,182,668¥1,635,595(2) Composition of capitalBasel III
template

Composition of capital disclosure

Common share capital issued bysubsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1
instruments plus related stock surplus
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)
5(Millions of yen)
As of March
31, 2016

As of March
31, 2015¥14,749¥12,106

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

30,84329,598169,035

180,405

10,2699,250

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, 2016

As of March
31, 2015¥7,503,543
6,120,928¥13,624,471¥7,195,869
6,013,731¥13,209,601

Remarks

285

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Status of Capital Adequacy

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(Millions of yen)
As of March
31, 2016

As of March
31, 2015¥300,000¥-

324,517150,000

Remarks

Note: Amounts in the "Composition of capital disclosure" are based on those before considering amounts under transitional arrangements and include "Amounts excluded undertransitional arrangements" disclosed in "(A) Composition of capital disclosure" as well as amounts included as regulatory capital. In addition, items for regulatory purposes
under transitional arrangements are excluded from this table.

■ Risk-based capital(3) 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 and capital buffer 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. and from scenarios such as the occurrence ofhistorical stress events. In addition, we examine whether an appropriate return on risk is maintained in the assessments.

286

Explanation of Composition of capital disclosure、Risk-based capital2016/08/30 18:29:05 / 16241906_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) Required capital by portfolio classification(Billions of yen)
As of March 31, 2016

Credit risk
Internal ratings-based approach
Corporate (except specialized
lending)
Corporate (specialized lending)
SovereignBank
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach (simple
risk weight method)
Market-based approach (internal
models approach)
Regarded-method exposure
Purchase receivables
Securitizations
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
Others
CVA risk
Central counterparty-relatedMarket risk
Standardized approach
Interest rate risk
Equities risk
Foreign exchange risk
Commodities risk
Option transactions
Internal models approach
Operational risk
Advanced measurement approach
Basic indicator approach
Total required capital (consolidated)

As of March 31, 2015

EAD

Required capital

EAD

Required capital¥200,940.9
190,100.2¥5,234.5
4,701.2¥196,575.9
189,380.7¥5,456.6
4,926.2

70,940.2

2,502.9

68,175.7

2,434.9

3,818.1
79,624.1
6,893.6
12,942.5
9,855.1
562.9
2,524.5
4,460.7
3,901.2

270.3
102.0
150.2
514.4
324.7
42.6
147.0
587.7
441.9

3,574.5
77,687.8
7,827.4
13,346.9
10,173.4
499.0
2,674.4
5,628.1
4,831.4

323.9
92.8
155.8
546.0
344.5
38.1
163.3
695.3
489.4

559.4

145.7

796.7

205.9

-

-

-

-

1,750.8
3,669.1
3,803.3
2,197.4
10,840.7
5,748.0
2,035.8
2,392.7
20.7
643.2
¥-

311.6
116.7
23.2
121.6
290.2
8.3
37.1
181.8
5.3
57.5
225.8
17.1
135.6
70.6
37.6
23.9
4.8
4.1
65.0
259.7
221.0
38.6
¥5,002.4

2,073.3
5,111.1
3,340.6
2,614.8
7,195.2
2,881.6
1,274.6
2,447.9
21.9
569.0
¥-

382.1
140.1
24.0
130.9
279.0
7.8
25.0
183.7
9.5
52.8
220.4
31.0
277.9
78.8
42.3
22.9
10.3
3.1
199.0
249.2
210.4
38.8
¥5,215.3

Notes: 1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets and (ii) expected losses. For market risk, the market risk equivalent amount. For operationalrisk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:

287

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate (excluding
specialized lending)Credits to corporations and sole proprietors (excluding credits to retail customers)

Corporate (specialized
lending)

Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc,
including real estate non-recourse loan, ship finance and project finance, etc.

SovereignCredits to central governments, central banks and local governmental entities

Bank

Credits to banks and securities companies, etc.

RetailHousing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual consumer loans and loans tobusiness enterprises with total credit amount of less than ¥100 million, etc. (other retail).

Equities

Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)
The transitional measure (Article 13 of supplementary provision of the FSA Notice No. 20) applies to those held from September 30,
2004 or earlier in the fiscal year ended March 31, 2015. Either the PD/LGD approach or the market-based approach applies in the fiscal
year ended March 31, 2016 as the transitional period ended.

Regarded-method exposure

Investment trusts and funds, etc.

Purchase receivables

Receivables purchased from third parties excluding securities (excluding securitizations)

Securitizations

Transactions in the form of “non-recourse” and having a “senior/subordinated structure,” etc. (excluding specialized lending).

7. EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible losses on loans, reserve forpossible losses on loans to restructuring countries and partial direct write-offs.
8. From the fiscal year ended March 31. 2016, we have been calculating EAD using the internal ratings-based approach for credit risk by taking into account the amount ofcollateral for derivatives transactions. EAD as of March 31, 2015 represents the amount adjusted to retroactively reflect this method.

288

Risk-based capital2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Credit risk
(5) Credit risk management○ Summary of credit risk management
See pages 118 to 121 for a summary of our credit risk management policies and procedures.

We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under Basel
Framework. With regard to some business units or asset classes that are deemed to be immaterial for
purposes of calculating credit risk-weighted assets, we apply the standardized approach.
We use our estimates of PD (probability of default) and LGD (loss given default) in calculating credit riskweighted assets. In accordance with regulations, we estimate PD by using long-term averages of actual
defaults, to which conservative adjustments are made, based on internal data, and make adjustments to LGD
taking into account recessionary periods. We regularly perform verifications of PD and LGD through backtesting and other methods. We also utilize these estimates for measuring credit risks for internal use,
allocating risk capital and other purposes.

○ 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 the standardized
approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor’s Ratings Services(S&P) overseas.
We apply a risk weight of 100% for all of our corporate exposure.
○ Summary of our internal rating system
See pages 118 to 120 for a summary of our internal rating system and rating assignment procedures.
The following table sets forth information with respect to the definition of obligor ratings.

289

Credit risk management、Status of portfolios to which the standardized approach is applied、Summary of our internal rating system

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(6) Credit risk exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2015 and 2016.
○ Status of credit risk exposure(a) Breakdown by geographical area
(Billions of yen)
As of March 31, 2016

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥68,500.9
38,737.2
9,269.4¥25,391.7
10,892.1
2,145.6¥1,489.6
2,678.3
409.9¥30,971.8
5,884.1
1,464.4¥126,354.1
58,191.9
13,289.4

3,107.3

56.7

126.7

470.8

3,761.6

15,529.0
374.0
6,792.6
3,664.6¥107,238.1-

6,470.6
1,826.5
392.5¥36,283.9
-

711.6
0.2
1,199.2
230.4¥4,167.9-

3,190.3
3.1
497.4
257.8
¥36,856.0-

25,901.7
377.5
10,315.9
4,545.5¥184,546.0
10,820.0(Billions of yen)

As of March 31, 2015

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥69,662.6
37,120.2
9,175.5¥28,131.5
11,831.1
2,076.8¥1,309.9
2,959.8
338.3¥25,941.1
7,010.2
1,764.3¥125,045.3
58,921.5
13,355.1

3,157.2

162.9

141.2

578.4

4,039.9

15,445.9394.9
5,620.9
3,325.5¥106,782.8-

7,256.7
1,825.4
509.1¥39,962.7
-

827.4
3.0
1,381.5
268.2¥4,269.8-

3,967.6
15.3
464.3
220.0
¥32,951.3-

27,497.7413.3
9,292.2
4,323.1¥183,966.8
7,173.2

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
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, other assets, etc.

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As of March 31, 2016

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥19,955.7
1,498.5
8,579.8
5,018.6
8,821.9
11,709.8
11,634.5
26,988.4¥2,212.9
201.1
548.1
381.3
724.6
2,970.5
9,748.7¥569.1
12.5
94.8
85.4
147.9
2,093.1
0.6
1,120.2¥638.8
47.4
17.5
65.8
900.4
1,777.6
10.1
6,565.9¥23,376.7
1,759.7
9,240.3
5,551.2
10,594.9
18,551.2
11,645.3
44,423.4

13,030.5

19,496.4

43.8

26,832.1

59,402.9¥107,238.1-¥36,283.9-¥4,167.9-¥36,856.0-¥184,546.0
10,820.0(Billions of yen)

As of March 31, 2015

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥19,834.1
1,470.3
7,799.4
4,625.9
9,008.8
13,070.3
11,949.5
25,245.1¥2,653.2
194.8
592.5
459.4
745.4
3,578.9
10,133.2¥511.1
14.2
63.0
78.9
113.9
2,595.0
0.2
888.8¥672.0
61.6
14.9
46.6
1,089.7
2,042.5
10.6
8,035.2¥23,670.5
1,741.0
8,469.9
5,210.8
10,958.1
21,286.8
11,960.3
44,302.5

13,779.1

21,605.0

4.3

20,977.8

56,366.4¥106,782.8-¥39,962.7-¥4,269.8-¥32,951.3-¥183,966.8
7,173.2

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. "Others" include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(c) Breakdown by residual contractual maturity(Billions of yen)
As of March 31, 2016

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥27,076.9¥5,849.6¥775.3¥4,940.8¥38,642.8

20,332.0

13,249.2

1,666.4

599.1

35,846.9

18,855.2

4,964.2

667.4

16.0

24,502.9

28,091.6
12,882.2¥107,238.1-

7,803.3
4,417.4¥36,283.9-

1,043.8
14.7¥4,167.9-

11.8
31,288.0¥36,856.0-

36,950.7
48,602.5¥184,546.0
10,820.0(Billions of yen)

As of March 31, 2015

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥30,032.6¥6,663.3¥834.8¥5,310.1¥42,840.9

18,221.8

10,934.4

2,073.4

604.0

31,833.7

19,111.8

9,387.3

520.2

21.9

29,041.3

26,942.5
12,474.0¥106,782.8-

7,529.5
5,448.0¥39,962.7
-

839.6
1.6
¥4,269.8-

5.8
27,009.4¥32,951.3-

35,317.5
44,933.1¥183,966.8
7,173.2

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. "Others" include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

292

Status of credit risk exposure2016/08/30 18:29:05 / 16241906_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 exposure past due three months or more or in default(d) Breakdown by geographical area
(Billions of yen)
As of March 31, 2016

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥931.3
224.1
49.6

¥79.7
3.1
0.0

¥4.2
7.0
0.5

¥17.1
4.9
0.7

¥1,032.4
239.2
50.9

55.3

0.0

3.3

0.0

58.6

29.5
1.9
64.6
22.9
¥1,155.4
-

3.0
0.0
¥82.9
-

0.0
3.1
¥11.3
-

1.6
2.3
0.1
¥22.0
-

34.2
2.0
70.2
23.0
¥1,271.7
3.8(Billions of yen)

As of March 31, 2015

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans, commitments andother non- derivative offbalance-sheet exposures

Securities

Derivatives

OthersTotal¥1,124.1
349.1
44.8

¥24.2
1.9
0.0

¥4.9
23.6
0.6

¥24.6
6.9
1.2

¥1,178.0
381.6
46.7

83.9

0.0

10.6

0.0

94.6

16.2
6.0
72.1
125.9
¥1,473.3
-

1.9
0.0
¥26.2
-

0.9
0.1
11.4
¥28.5
-

2.0
3.5
0.0
¥31.5
-

21.1
6.1
87.0
125.9
¥1,559.6
4.4

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

293

Status of exposure past due three months or more or in default

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Breakdown by industry(Billions of yen)
As of March 31, 2016

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥420.3
17.9
76.3
84.4
195.1
11.3
108.3
241.5
¥1,155.4
-

¥73.2
0.0
0.6
0.8
1.5
5.5
0.9
¥82.9
-

¥2.7
0.1
0.7
0.6
0.0
7.0
¥11.3
-

¥4.5
0.5
0.2
1.2
9.5
2.1
1.1
2.6
¥22.0
-

¥500.7
18.5
77.3
87.3
206.9
19.0
109.5
252.2
¥1,271.7
3.8(Billions of yen)

As of March 31, 2015

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥516.7
27.1
105.6
99.7
212.9
73.4
126.1
311.5
¥1,473.3
-

¥15.9
0.2
3.5
0.7
3.4
1.5
0.7
¥26.2
-

¥3.5
0.0
8.0
0.7
0.0
16.2
¥28.5
-

¥6.2
0.6
0.5
3.1
13.0
3.8
1.2
2.8
¥31.5
-

¥542.3
28.0
109.8
111.7
230.0
78.8
127.3
331.4
¥1,559.6
4.4

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

294

Status of exposure past due three months or more or in default

2016/08/30 18:29:05 / 16241906_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 reserves for possible losses on loans
The amounts associated with regarded-method exposure and securitization exposure are excluded.
(f) Fiscal year-end balances of reserves for possible losses on loans and changes during the fiscal year (afterpartial direct write-offs)

General reserve for possible
losses on loans

Specific reserve for possible
losses on loans

Reserve for possible losses
on loans to restructuring
countries
Total

Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal
year
Decrease during the fiscal
year
Ending balance

As of, or for the fiscal year
ended, March
31, 2016(Billions of yen)
As of, or for the fiscal year
ended March
31, 2015¥344.4
304.8
344.4
304.8
180.3
154.6
180.3
154.6
0.6
0.0
0.6
0.0
¥525.4459.5¥398.7
344.4
398.7
344.4
216.7
180.3
216.7
180.3
0.7
0.6
0.7
0.6
¥616.3
525.4

525.4

616.3

459.5

525.4

Note: General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated with regardedmethod exposure and securitization exposure are not excluded.

295

Status of reserves for possible losses on loans

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(g) Specific reserve for possible losses on loans by geographical area and industry
Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Overseas
Exempt portion
Total

Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Overseas
Exempt portion
Total

As of March 31, 2015

As of March 31, 2014

(Billions of yen)
Change¥120.0
29.5
5.5
5.0
11.4
35.0
0.8
25.6
6.9
49.9
10.4
¥180.3¥138.4
30.7
7.5
11.7
12.0
32.1
0.0
35.9
8.1
71.1
7.1
¥216.7¥(18.3)
(1.2)
(2.0)
(6.7)
(0.6)
2.9
0.7
(10.2)(1.2)(21.2)
3.2¥(36.4)As of March 31, 2016

As of March 31, 2015

(Billions of yen)
Change

¥96.2
27.2
3.1
2.3
11.5
28.8
0.6
17.3
5.0
49.1
9.3
¥154.6¥120.0
29.5
5.5
5.0
11.4
35.0
0.8
25.6
6.9
49.9
10.4
¥180.3¥(23.8)
(2.3)
(2.3)
(2.6)
0.0
(6.2)
(0.1)
(8.3)
(1.8)
(0.8)
(1.0)
¥(25.6)

Note: Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit
risk-weighted assets.

296

Status of reserves for possible losses on loans

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(h) Write-offs of loans by industry

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Exempt portion
Total

For the fiscal year ended March
31, 2016(Billions of yen)
For the fiscal year ended March
31, 2015

¥1.1
0.2
0.8
1.4
7.9
0.1
5.3
29.4
0.0
¥46.6

¥3.6
0.3
1.2
1.3
8.9
0.0
6.2
62.4
0.2
¥84.5

Notes: 1. The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts associated withregarded-method exposure and securitization exposure.
2. Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit
risk-weighted assets.
3. "Other industries" include overseas and non-Japanese resident portions.

297

Status of reserves for possible losses on loans

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Status of exposure to which the standardized approach is applied(i) Exposure by risk weight category after applying credit risk mitigation(Billions of yen)
As of March 31, 2016

Risk weight

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

Total

On-balance sheet

Off-balance sheet

Total

With externalrating¥4,659.9
225.4
1,117.2
46.3
2,044.3
0.0
53.3¥8,146.6¥695.5859.9
41.5
1,076.2
0.0
0.0¥2,673.3¥5,355.4
225.4
1,977.2
87.9
3,120.5
0.0
53.3
0.0
0.0
¥10,820.0

¥63.2
81.3
51.8
57.3
0.0
¥253.6(Billions of yen)

As of March 31, 2015

Risk weight

Total

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

On-balance sheet

Off-balance sheet

Total

With externalrating¥2,013.6
149.2
468.6
85.0
1,974.4
0.1
63.6¥4,754.7¥583.3723.0
13.1
1,098.8
0.0
0.0¥2,418.5¥2,597.0
149.2
1,191.7
98.1
3,073.2
0.1
63.6
0.0
0.0
¥7,173.2

¥76.5
26.9
45.3
63.3
¥212.1

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries andpartial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

298

Status of exposure to which the standardized approach is applied

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(j) Amount of exposure to which a risk weight of 1,250% is applied
As of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥0.8

¥6.1

Amount of exposure to which a risk weight of 1,250% is applied○ Status of exposure to which the internal ratings-based approach is applied(k) Specialized lending exposure under supervisory slotting criteria by risk weight category

Risk weight

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

As of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥0.5
41.6
1.1
44.6
5.0
15.4
7.5
39.6
19.5
¥175.2

¥0.6
37.7
7.1
94.3
30.5
24.3
28.3
¥223.2(l) Equity exposure under simple risk weight method of market-based approach by risk weight category

Risk weight
Total

300%
400%

As of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥488.371.1¥559.4¥729.567.2¥796.7

Note: Of the equity exposure under the simple risk weight method, a risk weight of 300% is applied for listed equities and 400% for unlisted equities.

299

Status of exposure to which the standardized approach is applied、Status of exposure to which the internal ratings-based approach is applied

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(m) Portfolio by asset class and ratings segment (Corporate, etc.)(Billions of yen, except percentages)
As of March 31, 2016

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
Noninvestment
grade
zone
Default

Off-balance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor(%)¥56,053.9¥21,899.7¥22,666.8

74.99

54,868.1

36,687.2

18,180.9

19,298.2

74.99

64.49

22,127.0

18,442.6

3,684.4

3,360.5

75.00

36.60
-

34.30
1.60

958.4
79,893.0

924.0
65,570.6

34.4
14,322.4

8.0
854.0

75.00
75.00

38.29

-

1.49

79,739.7

65,426.9

14,312.7

845.5

75.00

0.72

38.13

-

61.26

153.2

143.5

9.7

8.4

75.00

100.00
0.18

56.88
35.19

52.15
-

62.73
26.25

0.0
6,923.3

0.0
4,151.3

2,772.0

555.6

75.00

0.09

35.00

-

22.09

6,198.3

3,557.9

2,640.4

451.8

75.00

0.69

36.65

-

61.91

723.0

591.4

131.5

103.8

75.00

100.00

97.07

94.79

30.21

1.9

1.9

-

-

-

2.04

90.00

-

141.61

3,901.2

3,858.0

43.1

-

-

0.07

90.00

-

112.473,558.7

3,515.5

43.1

-

-

1.03

90.00

-

236.83

268.0

268.0

-

-

-

100.00
0.85

90.00
38.50

- 1,191.88
74.4
74.4
22.64 ¥168,671.3 ¥129,633.9¥39,037.4¥24,076.5

74.99

0.05

39.33

-

14.90

144,364.9

109,187.6

35,177.2

20,595.6

74.99

1.45

33.11

-

66.37

23,271.5

19,445.7

3,825.7

3,472.8

75.00

100.00

42.95

36.72

117.56

1,034.9

1,000.5

34.4

8.0

75.00

PD
(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

1.72

36.43

-

37.92

¥77,953.6

0.10

38.05

-

27.27

1.49

32.28

-

100.00
0.01

39.19
38.29

0.00

300

Status of exposure to which the internal ratings-based approach is applied

2016/08/30 18:29:05 / 16241906_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, except percentages)
As of March 31, 2015

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
Noninvestment
grade
zone
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

2.04

36.34

-

36.84

¥76,322.9

0.09

37.76

-

25.67

1.45

32.41

-

100.00
0.01

42.93
38.60

0.00

Off-balance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor(%)¥54,372.9¥21,950.0¥21,339.9

74.99

53,727.3

35,036.9

18,690.4

18,600.1

74.99

64.92

21,403.3

18,186.8

3,216.5

2,735.3

75.00

40.22
-

35.88
1.50

1,192.2
77,974.1

1,149.1
64,807.8

43.1
13,166.2

4.3
953.3

75.00
75.00

38.61

-

1.42

77,855.7

64,704.3

13,151.4

941.0

75.00

0.85

37.17

-

58.31

118.2

103.4

14.8

12.2

75.00

100.00
0.20

57.51
33.54

52.76
-

62.89
23.69

0.0
7,856.4

0.0
4,406.6

3,449.8

462.4

75.00

0.09

33.48

-

20.46

7,153.0

3,968.7

3,184.3

375.6

75.00

0.79

33.73

-

56.69

699.8

434.2

265.5

86.7

75.00

100.00

97.29

95.04

29.81

3.6

3.6

-

-

-

0.47

90.00

-

126.62

4,831.4

4,691.1

140.2

-

-

0.06

90.00

-

115.134,502.9

4,362.7

140.2

-

-

1.06

90.00

-

235.79

311.8

311.8

-

-

-

100.00
0.97

90.00
38.82

- 1,192.50
16.6
16.6
22.32 ¥166,984.9 ¥128,278.5¥38,706.4¥22,755.6

74.99

0.05

39.65

-

15.04

143,239.1

108,072.6

35,166.4

19,916.9

74.99

1.45

33.27

-

67.00

22,533.2

19,036.3

3,496.8

2,834.3

75.00

100.00

43.74

40.38

51.73

1,212.5

1,169.4

43.1

4.3

75.00

Notes: 1. Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default includes E2R through H1.
2. "Corporate" does not include specialized lending exposure under supervisory slotting criteria.
3. Each asset class includes purchased receivables.
4. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted
average of credit conversion factor.
5. Regarding equity exposure under the PD/LGD approach, we recognize the risk-weighted assets by multiplying 1,250% by the expected loss ("EL").

301

Status of exposure to which the internal ratings-based approach is applied

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(n) Portfolio by asset class and ratings segment (Retail)(Billions of yen, except percentages)
As of March 31, 2016

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

Offbalance
sheet

1.68

41.05

-

32.11

¥9,855.1¥9,698.6¥156.4

¥10.0

75.00

0.76

40.99

-

32.10

9,763.1

9,608.6

154.5

10.0

75.00

100.00

47.31

44.79

33.37

91.9

90.0

1.9

-

-

3.18

76.66

-

64.45

562.9

373.7

189.1

1,610.0

11.75

3.03

76.67

-

64.46

562.0

373.1

188.9

1,608.5

11.75

100.00
4.38

71.97
51.67

67.80
-

55.26
49.11

0.8
2,524.5

0.6
2,508.6

0.2
15.8

1.5
18.1

14.39
65.01

1.65

51.87

-

49.45

2,454.3

2,442.0

12.2

14.3

57.51

100.00
2.28

44.83
44.67

42.02
-

37.24
36.83

70.1
¥12,942.5

66.5¥12,581.0

3.6¥361.4

3.8¥1,638.2

92.69
12.73

1.03

44.65

-

36.85

12,779.4

12,423.7

355.6

1,632.8

12.53

100.00

46.37

43.72

35.15

163.0

157.2

5.7

5.4

70.15

Weighted
Amount of average ofundrawn
creditcommit- conversion
ments factor (%)(Billions of yen, except percentages)
As of March 31, 2015

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

Offbalance
sheet

1.81

41.44

-

32.44

¥10,173.4¥9,990.1¥183.3

¥8.9

75.25

0.77

41.37

-

32.45

10,066.3

9,885.7

180.6

8.9

75.25

100.00

47.74

45.33

31.87

107.0

104.3

2.6

-

-

3.22

77.26

-

64.63

499.0

333.5

165.4

1,562.1

10.59

3.03

77.27

-

64.65

498.0

332.7

165.2

1,560.4

10.59

100.00
4.60

73.17
53.30

69.25
-

51.70
50.93

0.9
2,674.4

0.7
2,659.3

0.2
15.0

1.6
17.5

12.81
66.35

1.64

53.54

-

51.43

2,594.0

2,582.7

11.3

13.7

58.32

100.00
2.42

45.38
45.15

42.73
-

35.03
37.35

80.3
¥13,346.9

76.6¥12,983.0

3.7¥363.83.8¥1,588.7

95.01
11.57

Weighted
Amount of average ofcreditundrawn
commit- conversion
ments factor (%)

1.03

45.13

-

37.41

13,158.4

12,801.2

357.2

1,583.1

11.37

100.00

46.86

44.35

33.32

188.4

181.8

6.5

5.5

70.16

Notes: 1. Each asset class includes purchased receivables.
2. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted
average of credit conversion factor.

302

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2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(o) Actual losses by asset class
For the period from April 1, 2015
through March 31, 2016
Actual losses(Billions of yen)
For the period from April 1, 2014
through March 31, 2015
Actual losses

¥24.8
0
(0.5)
(6.0)
0.4
(1.2)
¥17.4

¥128.1
0
(1.2)
(0.7)
2.2
5.1
¥133.6

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Note: Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses on loans and general reserve for possible
losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing loans, losses fromdebt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.
<Analysis>
The total amount of actual losses was decreased by ¥116.2 billion from the previous period to ¥17.4 billion due to significant decerase of losses from corporate
exposure.

(p) Comparison of estimated and actual losses by asset class
For the period from April 1, 2015 through March
31, 2016
Estimated losses (expected
Actual losses
losses as of March 31, 2015)
After
deduction ofreserves

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total¥607.1
1.6
7.3
80.4
12.3
54.3
¥763.2¥128.9
1.5
3.9
31.2
2.4
15.1
¥183.3

¥24.8
0
(0.5)
(6.0)
0.4
(1.2)
¥17.4

(Billions of yen)
For the period from April 1, 2014 through March
31, 2015
Estimated losses (expected
Actual losses
losses as of March 31, 2014)
After
deduction ofreserves¥596.0
1.5
10.3
104.8
11.5
61.9
¥786.3¥195.5
1.5
5.6
46.1
3.8
23.8
¥276.6¥128.1
0.0
(1.2)
(0.7)
2.2
5.1
¥133.6

For the period from April 1, 2013 through March
31, 2014
Estimated losses (expected
Actual losses
losses as of March 31, 2013)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2012 through March
31, 2013
Actual losses
Estimated losses (expected
losses as of March 31, 2012)
After
deduction ofreserves¥785.1
1.7
12.5
123.7
11.2
69.1
¥1,003.5¥828.0
3.1
18.4
134.8
10.8
73.5
¥1,068.8¥246.9(11.9)
6.4
50.5
3.9
26.2
¥322.3¥(41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥(57.4)¥272.6(10.2)
6.3
41.6
3.7
24.2
¥338.4

¥75.6
0.2
(5.0)
(9.2)
0.3
0.2
¥62.1

303

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retailTotal

For the period from April 1, 2011 through March
31, 2012
Estimated losses (expected
Actual losses
losses as of March 31, 2011)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2010 through March
31, 2011
Estimated losses (expected
Actual losses
losses as of March 31, 2010)
After
deduction ofreserves¥989.6
1.3
31.9
150.4
12.2
74.7
¥1,260.3¥1,296.9
1.5
38.4
122.6
10.2
51.2
¥1,521.1¥373.2(11.7)
4.1
43.2
4.2
24.1
¥437.2

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

¥454.0(11.4)
8.3
31.1
3.5
15.0
¥500.6

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

For the period from April 1, 2009 through March
31, 2010
Actual losses
Estimated losses (expected
losses as of March 31, 2009)After
deduction ofreserves(Billions of yen)
For the period from April 1, 2008 through March
31, 2009
Estimated losses (expected
Actual losses
losses as of March 31, 2008)
After
deduction ofreserves¥1,313.1
1.7
35.5
95.8
10.3
51.3
¥1,508.0¥1,121.0
1.3
2.9
86.6
7.9
51.9
¥1,271.8¥473.3(10.8)
6.5
24.8
3.8
15.6
¥513.3

304

Status of exposure to which the internal ratings-based approach is applied¥166.5
0.3
1.0
33.2
0.2
4.3
¥205.8¥350.0(11.1)
2.5
22.7
3.2
16.4
¥383.9¥345.3
0.0
28.6
17.2
2.1
3.8
¥397.3

2016/08/30 18:29:05 / 16241906_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)
For the period from April 1, 2007 through March
31, 2008
Estimated losses (expected
Actual losses
losses as of March 31, 2007)
After
deduction ofreserves

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total¥1,086.0
5.4
6.4
78.2
7.2
52.9
¥1,236.5¥217.0
(7.0)
2.6
6.8
2.3
8.8
¥230.5

¥74.6
0.0
(2.6)
5.1
(0.1)
(2.8)
¥74.1

Notes: 1. Estimated losses after deduction of reserve are the amount after deductions of partial direct write-offs, specific reserves for possible losses on loans and general reserves
for possible losses on loans (for claims against special attention obligors or below), etc., as of the beginning of each period. Equity exposure under the PD/LGD approach is
not included in the amount of estimated losses.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses on loans and general reserves forpossible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing loans,losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in the amount of
actual losses.

305

Status of exposure to which the internal ratings-based approach is applied

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Methods for credit risk mitigation(7) Risk management regarding credit risk mitigation
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 the state of concentration of collateral type andconcentration of credit risks in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by"sovereign, banks or corporations above a certain credit rating" is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of
the legal system of the relevant jurisdiction, we take its effect into consideration.

(8) Credit risk mitigation by portfolio classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as
follows:(Billions of yen)
Financial collateralInternal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying revolving
loan
Other retail
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
OthersTotal

As of March 31, 2016
Other collateral
Guarantees

Credit derivatives

Total¥1,075.7¥5,455.6¥7,740.6¥50.4¥14,322.5

642.1
13.2
394.8
25.6

5,003.9
10.5
193.9
247.2

6,529.5
504.7
58.8
647.4

50.4
-

12,226.0
528.5
647.6
920.3

-

-

151.0

-

151.0

-

-

0.2

-

0.2

25.6
200.3
160.0
26.5
13.7
¥1,276.0

247.2¥5,455.6

496.2
196.8
196.8
¥7,937.4

¥50.4

769.1
397.1
356.8
26.5
13.7
¥14,719.6

306

Methods for credit risk mitigation、Credit risk mitigation by portfolio classification

2016/08/30 18:29:05 / 16241906_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)
Financial collateralInternal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying
revolving loan
Other retail
OthersStandardized
approach
Sovereign
Bank
Corporate
Residential
mortgage
Securitizations
OthersTotal

As of March 31, 2015
Other collateral
Guarantees

Credit derivatives

Total¥2,697.5¥5,157.4¥8,183.5¥43.7¥16,082.3

1,715.0
8.4
946.5
27.4

4,769.8
13.0
157.2
217.3

6,763.0
672.0
47.7
700.6

43.7
-

13,291.7
693.5
1,151.6
945.4

-

-

154.7

-

154.7

-

-

0.2

-

0.2

27.4
-

217.3
-

545.6
-

-

790.4
-

195.3

-

104.6

-

300.0

180.0
4.6
10.7

-

104.6
-

-

284.6
4.6
10.7

-

-

-

-

-

¥2,892.9¥5,157.4¥8,288.2¥43.7¥16,382.3

307

Credit risk mitigation by portfolio classification

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Counterparty risk in derivatives transactions and long-settlement transactions(9) Management of counterparty risk in derivatives transactions and long-settlement transactions
In managing the risk pertaining to counterparty risk in derivatives transactions and long-settlement transactions, we
generally allocate risk capital together with loans, etc. As to derivatives transactions with financial institutions, etc., weperiodically, where necessary, deliver and receive collateral to and from the counterparty based on the replacement costto 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. We calculate reserves forderivatives transactions by multiplying the same reserve ratio that we use for loans, etc., against the replacement cost.

(10) Status of counterparty risk in derivatives transactions and long-settlement transactions(a) Status of derivatives transactions and long-settlement transactions
Derivative transactions

Current exposure method
Foreign exchangerelated transactions
Interest rate-relatedtransactions
Gold-relatedtransactions
Equity-relatedtransactions
Transactions related
to precious metals(other than gold)
Other commodityrelated transactions
Credit derivatives
transactions
Subtotal(A)
Netting benefits by(B)
close-out netting
settlement
contracts
Subtotal(C)=(A)+(B)
Effect of credit risk(D)
mitigation bycollateral
Total(C)+(D)

Standardized method
Total

As of March 31, 2016
Gross
Gross
replacement
add-oncost

Creditequivalentamount(Billions of yen)
As of March 31, 2015
Gross
Gross
Creditreplacement
add-onequivalentcostamount¥2,637.9¥2,903.1¥5,541.1¥2,867.1¥2,812.2¥5,679.3

3,827.2

1,031.2

4,858.5

4,018.4

1,408.4

5,426.9

-

-

-

-

-

-

107.8

182.5

290.3

102.6

78.8

181.5

48.8

101.8

150.7

59.8

162.7

222.6

671.5

896.4

1,568.0

1,001.3

1,313.3

2,314.7

33.1

213.2

246.3

38.0

224.9

262.9

7,326.5-

5,328.5-

12,655.1
7,250.9

8,087.5-

6,000.5-

14,088.0
8,533.5--

5,404.1
490.6

-

-

5,554.4
508.2

¥-

¥-

¥4,913.5¥-¥-¥5,046.2

Creditequivalentamount¥333.6

Creditequivalentamount¥311.6

Note: The current exposure method and standardized method are used as the method to calculate credit equivalent amounts.

308

Counterparty risk in derivatives transactions and long-settlement transactions、Status of counterparty risk in derivatives transactions andlong-settlement transactions

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Long-settlement transactions(Billions of yen)
As of March 31, 2016
Gross
Gross
replacement
add-oncost

Long-settlement transactions

¥52.9

¥9.4

As of March 31, 2015
Gross
Gross
replacement
add-oncost

Creditequivalentamount

¥62.3

¥0.9

Creditequivalentamount¥2.9¥3.8

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the "netting benefits by close-out netting settlement contracts" nor the "effect of credit risk mitigation by collateral" applies to long-settlement transactions.

(b) Amounts of credit risk mitigation by type
(Billions of yen)
As of March 31, 2016

As of March 31, 2015

¥386.139.9
17.6¥443.7¥602.226.3
23.6¥652.3Financial collateral
Other collateral
Guarantees, others
Total(c) Notional amount of credit derivatives subject to credit equivalent amount calculations(Billions of yen)

Credit derivatives type:
Credit default swap
Total return swap
Total

Protection bought
Protection soldProtection bought
Protection soldProtection
boughtProtection sold

As of March 31, 2016

As of March 31, 2015

Notional amount

Notional amount¥1,885.4
1,912.9¥1,885.4¥1,957.9
1,983.9-

1,912.9

1,983.9¥1,957.9

Note:Credit derivatives used for credit risk mitigation are as follows:(Billions of yen)

Credit derivatives used for credit risk mitigation

As of March 31, 2016

As of March 31, 2015

¥57.7

¥60.9

309

Status of counterparty risk in derivatives transactions and long-settlement transactions

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Securitization exposure
We classify transactions as securitization exposure based on two characteristics, "non-recourse" and "senior/subordinatedstructure," pursuant to the definitions set forth in the FSA Notice No. 20, etc.; provided that the transactions do not include
those which fall within specialized lending exposure.

(11) Summary of securitization exposure and its risk management
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book. Quantitative information related to (a) to (c) below is disclosed in "(13) Quantitative disclosure items forsecuritization exposure," in accordance with the definitions set forth in the FSA Notice No. 20. Securitization exposures
are separately disclosed for calculation of credit risk-weighted assets and market risk equivalent amounts.
○The role of our securitization transactions(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 theneeds 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 suchtransaction from various aspects, including the effects of reduction of economic capital and improvement of return on risk
as well as the practical effects of risk transfers, and make a comprehensive judgment on structure and appropriateness oftransaction.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in their securitization of their account receivables and notes receivables, etc., weretain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions), andproviding 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 internal ratingsand make evaluations by assessing such transactions and carefully managing the exposure together with other direct loan
assets.
(c) Investment in alternative credit risk assets ("Securitization transactions as investor")
We hold securitization 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 investor, and we maintain astringent structure for management of such transactions. In addition, we implement stress tests based on scenarios underthe market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as ameans of financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets,
and to disclose appropriately the risks and terms of the program to the 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.
None of our affiliated entities hold securitization products in which we are involved as originators or sponsors.
○ Overview of risk characteristics in securitization 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.

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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 theability, quality and operating performance of originators and managers in charge of controlling the underlying assets aswell 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 internal ratings 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 tocomprehensively 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.
○Status of response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply
the ratings-based approach ("RBA") if the asset has a rating obtained from eligible external credit assessment institutions
and apply the supervisory formula approach ("SF") in other cases pursuant to the FSA Notice No. 20. We apply a risk
weight of 1,250% under Basel III when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we
calculate based on risk weight according to ratings by eligible external credit assessment institutions and weighted
average risk weight of underlying assets.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt the standardized
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 (We do not separately designate eligible external credit assessment
institutions for each type of securitization exposure).
(12) 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), etc., and we applied (a) valuations obtained from brokers and others or (b)reasonably calculated prices based on the reasonable estimates of our management as fair value, unless it is deemed to
be extremely difficult to determine the fair value. In deriving reasonably calculated prices based on the reasonableestimates of our management, we used the discounted cash flow method, and the price decision variables include default
rates, recovery rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on "Report on Auditing
Securitized Instruments", announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(13) Quantitative disclosure items for securitization exposure○ Securitization exposure as originator (for calculation of credit risk-weighted assets)(a) Information by type of underlying assets(Billions of yen)

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)Creditcards

Residential
mortgage
loans

¥-

¥58.8

As of, or for the fiscal year ended, March 31, 2016
Lease
Auto
payment
CorpoRealloans
receivables
rate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥58.8
0.3

-

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

70.6

-

-

70.6
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥58.8

¥-

¥-

¥70.6

¥-

¥-

¥129.5

312

Securitization exposure as originator (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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)

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)Creditcards

Residential
mortgage
loans

¥-

¥98.3

As of, or for the fiscal year ended, March 31, 2015
Lease
Auto
payment
CorpoRealloans
receivables
rate
estate¥-¥-¥-Securitization
products

Total

¥-

¥-

¥98.3

-

1.1

-

-

-

-

-

1.1

-

0.1

-

-

-

-

-

0.1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

173.5

-

-

173.5
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥98.3

¥-

¥-

¥173.5¥-¥-¥271.8Notes: 1. Items that refer to "during the fiscal year" show amounts accumulated during the fiscal year ended March 31, 2015 and 2016.
2. "Amount of underlying assets" and "Losses during the fiscal year" include those related to, in addition to exposure originated by us, exposure to assets originated by otherfinancial institutions if they are contained in the same securitization program.
3. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
4. "Credit cards" include shopping credit receivables, card loans, etc.
5. The effects of risk mitigation, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitization transactions are reflected in"Required capital" of "(B) Information of securitization exposure retained or purchased."

313

Securitization exposure as originator (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure intended to be securitized─
(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2016
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2015
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(b) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations towhich a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2016
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

¥-

Real
estateSecuritization
products

Total

¥70.6

¥-

¥-

¥70.6

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥70.6
-

¥-

¥-

¥70.6
-

-

-

-

-

-

-

-

-

-

-

-

-

64.5

-

-

64.5

(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations towhich a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2015
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥32.6

¥-

¥-

-

-

-

-

-

-

Real
estateSecuritization
products

Total¥168.7¥-¥-¥201.4

-

-

-

-

-

-

4.8

-

-

4.8

-

-

-

-

-

-

-

-

¥-

¥32.6
-

¥-

¥-

¥173.5-¥-¥-¥206.2
-

-

-

-

-

-

-

-

-

-

-

-

-

121.5

-

-

121.5

Notes: 1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. "Exposure whose underlying assets are overseas assets" is classified based on the principal underlying asset type for each transaction.
4. "Exposure on resecuritizations" as of both March 31, 2015 and 2016 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

314

Securitization exposure as originator (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

─Exposure by risk weight category─(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2016
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations

¥62.7
1.7
6.1

¥-

¥-

-

-

¥70.6

¥-

Total

Exposure on
resecuritizations

¥-

¥62.7
1.7
6.1

¥-

-

-

-

-

¥-

¥-

¥70.6

¥(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2015
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations¥145.3
41.4
4.0
3.2

¥-

¥4.5
-

7.3

-

¥201.4¥-

Total

Exposure on
resecuritizations¥-¥149.9
41.4
4.0
3.2

¥-

0.2

-

7.6

-

¥4.8

¥-

¥206.2¥-

─Amount of required capital by risk weight category─(Billions of yen)RiskweightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

As of March 31, 2016
OffExposure onbalanceresecuritizations
sheet

Onbalance
sheet

Exposure on
resecuritizations

¥0.3
0.5

¥-

¥-

-

-

¥0.9

¥-

Total

Exposure on
resecuritizations

¥-

¥0.3
0.5

¥-

-

-

-

-

¥-

¥-

¥0.9

¥-

315

Securitization exposure as originator (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2015
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations

¥1.0
1.3
0.3
-

¥-

¥0.0
-

0.7

-

¥3.4

¥-

Total

Exposure on
resecuritizations

¥-

¥1.0
1.3
0.3
-

¥-

0.0

-

0.7

-

¥0.0

¥-

¥3.5

¥-

─Credit risk mitigation against exposure on resecuritizations─RiskweightAs of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥¥-

¥¥-

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Capital increase due to securitization transactions─(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2016
Lease
payment
receivables
Corporate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥0.2

¥-

As of March 31, 2015
Lease
payment
receivables
Corporate¥-

316

Securitization exposure as originator (for calculation of credit risk-weighted assets)

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥0.2

2016/08/30 18:29:05 / 16241906_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 exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit riskweighted assets)(c) Information by type of underlying assets(Billions of yen)Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2016
Lease
Account
Autopayment
and noteReal
loans
receivables
receivables
estateOthers

Total

Creditcards

Residential
mortgage
loans

¥60.8

¥-

¥103.2¥161.5¥400.2¥-¥61.2¥787.1

-

-

-

-

3.3

-

-

3.3

1.5

-

0.8

3.6

5.0

-

2.2

13.3

¥1,263.5¥-¥862.3¥648.8¥3,077.6¥-¥828.7¥6,681.0(Billions of yen)Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2015
Lease
Account
Auto
Realpayment
and note
loans
receivables
estatereceivables

Creditcards

Residential
mortgageloans¥139.0

¥-

¥21.9

¥50.2

¥477.0

-

-

-

-

2.4

-

0.8

¥1,085.7¥-¥210.8OthersTotal¥-¥102.6¥790.9

6.2

-

-

6.2

0.1

8.1

-

1.3

12.9

¥526.0¥2,640.1¥-¥634.2¥5,097.0

Notes: 1. Items that refer to "during the fiscal year" show amounts accumulated during the fiscal year ended March 31, 2015 and 2016.
2. Securitization exposure that is acquired in securitization of customer’s claims other than as sponsor (in the form of asset-backed securities, trust beneficiary rights and othertransferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and the following parameters that are used in
the calculation of capital adequacy ratio:･ parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and･ with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratings-based approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
6. "Credit cards" include shopping credit receivables, card loans, etc.

317

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(d) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas
assets

As of March 31, 2016
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥32.3

¥-

¥95.9

¥78.0

-

-

-

137.3

-

-

Real
estateOthersTotal¥388.6¥-¥61.0¥656.1

-

-

-

-

-

48.6

0.0

64.9

-

-

251.0

-

-

-

-

-

-

-

¥169.7¥-¥144.5¥78.1¥453.6¥-¥61.0¥907.1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

111.5

-

90.2

53.5

200.4

-

31.8

487.6

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas
assets

As of March 31, 2015
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥81.9

¥-

¥20.7

¥50.2

-

-

-

108.5

-

-

Real
estateOthersTotal¥542.3¥-¥106.9¥802.1

-

-

-

-

-

42.8

-

145.9

-

36.6

333.9

-

-

-

-

-

-

-

¥190.4

¥-

¥63.5

¥50.2

¥688.2¥-¥143.6¥1,136.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

135.3

-

63.1

8.1

379.7

-

110.9

697.3

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation of required capital.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
3. Credit cards" include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
5. "Exposure on resecuritizations" as of both March 31, 2015 and 2016 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

318

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥650.4
2.1
3.4
-

¥-

¥251.0-¥-¥901.5
2.1
3.4
-

¥-

-

-

-

-

-

-

¥656.1¥-¥251.0¥-¥907.1¥(Billions of yen)

As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥782.9
14.9
2.5
1.7
-

¥-

¥333.9-¥-¥1,116.8
14.9
2.5
1.7
-

¥-

-

-

-

-

-

-

¥802.1¥-¥333.9¥-¥1,136.0¥-

─Amount of required capital by risk weight category─(Billions of yen)
As of March 31, 2016

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥3.8
0.0
0.1
-

¥-

¥1.5
-

¥-

¥5.4
0.0
0.1
-

¥-

-

-

-

-

-

-

¥4.1

¥-

¥1.5

¥-

¥5.7

¥-

319

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)
As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥4.5
0.4
0.1
0.1
-

¥-

¥1.9
-

¥-

¥6.4
0.4
0.1
0.1
-

¥-

-

-

-

-

-

-

¥5.2

¥-

¥1.9

¥-

¥7.1

¥-

─Credit risk mitigation against exposure on resecuritizations─RiskweightAs of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥¥-

¥¥-

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

○ Securitization exposure as investor(for calculation of credit risk-weighted assets)(e) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2016
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥44.0

¥949.6¥469.5¥107.8

-

4.6

-

107.0

-

-

Real
estateOthersTotal¥427.4¥12.4¥311.3¥2,322.2

-

5.8

-

-

10.4

191.0

53.5

169.4

0.1

2.6

523.9

-

-

-

-

-

-

-

¥151.0¥949.6¥660.6¥161.3¥596.8¥12.5¥314.0¥2,846.2

-

4.6

-

-

5.8

-

-

10.4

-

0.0

-

-

-

0.8

-

0.8

151.0

0.0

627.7

157.3

596.8

0.3

269.5

1,802.9

320

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)、Securitization
exposure as investor (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2015
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥41.3

¥948.0¥236.8

¥9.2

-

9.7

-

120.2

-

-

Real
estateOthersTotal¥241.3¥31.2¥255.8¥1,763.7

-

11.9

-

-

21.7

89.0

-

32.9

0.1

14.8

257.2

-

-

-

-

-

-

-

¥161.5¥948.0¥325.9¥9.2¥274.2¥31.3¥270.6¥2,021.0

-

9.7

-

-

11.9

-

-

21.7

-

0.0

-

-

-

6.9

-

6.9

156.5

0.0

288.2

-

274.2

0.5

216.4

936.1

Notes: 1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
4. "Exposure on resecuritizations" as of both March 31, 2015 and 2016 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2016

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥2,270.9
34.3
3.9
12.3

¥4.6
5.8
-

¥521.1
2.6¥-¥2,792.0
34.3
3.9
14.9

¥4.6
5.8
-

-

-

-

-

-

-

0.6
¥2,322.2

¥10.4

0.1
¥523.9¥-0.8¥2,846.2

¥10.4

321

Securitization exposure as investor (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)
As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥1,700.6
39.4
8.8
8.0

¥9.7
11.9
-

¥254.03.0¥-¥1,954.7
39.4
8.8
11.0

¥9.7
11.9
-

-

-

-

-

-

-

6.7
¥1,763.7

¥21.7

0.1
¥257.2¥-6.9¥2,021.0¥21.7

─Amount of required capital by risk weight category─(Billions of yen)
As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥12.7
0.7
0.3
3.4

¥0.0
0.1
-

¥3.2
0.7

¥-

¥15.9
0.7
0.3
4.1

¥0.0
0.1
-

-

-

-

-

-

-

0.6
¥17.8

¥0.2

0.1
¥4.1

¥-

0.8
¥21.9

¥0.2
(Billions of yen)

As of March 31, 2015

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥10.1
1.0
0.7
2.2

¥0.1
0.3
-

¥1.7
0.8

¥-

¥11.9
1.0
0.7
3.0

¥0.1
0.3
-

-

-

-

-

-

-

6.7
¥20.8

¥0.4

0.1
¥2.7

¥-

6.9
¥23.6

¥0.4

─Credit risk mitigation against exposure on resecuritizations─RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

As of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥2.5
¥2.5

¥¥-

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

322

Securitization exposure as investor (for calculation of credit risk-weighted assets)

2016/08/30 18:29:05 / 16241906_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 exposure as originator (for calculation of market risk equivalent amounts)(f) Information by type of underlying assets(Billions of yen)

Creditcards

Traditional securitizations
Amount of underlying assets(a)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Total amount of underlying assets(a)+(b)As of, or for the fiscal year ended, March 31, 2016
Residential
LeasemortgageAutopayment
Corpor
Real
loans
loans
receivables-ate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(Billions of yen)

Creditcards

Traditional securitizations
Amount of underlying assets(a)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Total amount of underlying assets(a)+(b)As of, or for the fiscal year ended, March 31, 2015
Residential
LeasemortgageAutopayment
Corpor
Real
loans
loans
receivables-ate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

Note: Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.

323

Securitization exposure as originator (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure intended to be securitized─
(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2016
Lease
payment
Corporreceivables
-ate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2015
Lease
payment
Corporreceivables
-ate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(g) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on securitizations
to which a risk weight of
100% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2016
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on securitizations
to which a risk weight of
100% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2015
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Notes: 1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. "Exposure whose underlying assets are overseas assets" is classified based on the principal underlying asset type for each transaction.

324

Securitization exposure as originator (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥(Billions of yen)

As of March 31, 2015

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

325

Securitization exposure as originator (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)
As of March 31, 2015

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than
100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2016
Securitizations
Resecuritizations

Total amount of securitization exposure
Total amount of required capital

¥-

¥-

¥-

¥-

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2015
Securitizations
Resecuritizations

Total amount of securitization exposure
Total amount of required capital

¥-

¥-

¥-

¥-

─Capital increase due to securitization transactions─(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

As of March 31, 2016
Lease
payment
receivables
Corporate

-

-

Real
estateSecuritization
products

Total

-

-

-

(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

-

-

-

As of March 31, 2015
Lease
payment
receivables
Corporate-

326

Securitization exposure as originator (for calculation of market risk equivalent amounts)-RealestateSecuritization
products

Total

-

-

-

2016/08/30 18:29:05 / 16241906_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 exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk
equivalent amounts)(h) Information by type of underlying assets(Billions of yen)

Creditcards

Amount of underlying
assetsEstimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2016
Residential
Lease
Account
mortgageAutopayment
and note
Real
loans
loans
receivables
receivables
estateOthers

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(Billions of yen)

Creditcards

Amount of underlying
assetsEstimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2015
Residential
Lease
AccountRealmortgageAutopayment
and note
receivables
estateloans
loans
receivables

Others

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

(i) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations to which arisk weight of 100% isapplied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2016
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

327

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2015
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥(Billions of yen)

As of March 31, 2015

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%100%On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

328

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥(Billions of yen)

As of March 31, 2015

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%100%On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

329

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as investor (for calculation of market risk equivalent amounts)(j) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2016
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥-

¥1.0

¥0.0

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥0.0

¥4.0

¥1.4

¥6.5

-

-

-

0.3

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥1.0

¥0.0

¥-

¥0.0

¥4.0

¥1.4

¥6.5

-

-

-

-

-

-

0.3

0.3

-

1.0

-

-

0.0

0.3

0.3

1.7

-

0.9

0.0

-

0.0

2.0

1.1

4.0

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2015
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥0.2

¥2.5

¥12.2

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥1.0

¥3.8

¥9.3

¥29.2

-

-

-

2.7

2.7

-

-

-

-

-

-

-

-

-

-

-

-

-

¥0.2

¥2.5

¥12.2

¥-

¥1.0

¥3.8

¥9.3

¥29.2

-

-

-

-

-

-

2.7

2.7

-

2.3

-

-

0.0

0.2

0.1

2.6

0.2

2.2

12.2

-

1.0

2.0

9.2

27.1

Notes: 1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
4. "Exposure on resecuritizations" are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

330

Securitization exposure as investor (for calculation of market risk equivalent amounts)

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─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.4
2.3
1.9
1.7
¥6.5

¥0.2
0.1
¥0.3

¥¥-

¥¥-

¥0.4
2.3
1.9
1.7
¥6.5

¥0.2
0.1
¥0.3
(Billions of yen)

As of March 31, 2015

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥19.6
1.7
3.7
1.4
2.6
¥29.2

¥0.9
0.5
1.0
0.1
¥2.7

¥¥-

¥¥-

¥19.6
1.7
3.7
1.4
2.6
¥29.2

¥0.9
0.5
1.0
0.1
¥2.7

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2016

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%100%On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.0
0.0
0.1
1.7
¥2.0

¥0.0
0.1
¥0.1

¥¥-

¥¥-

¥0.0
0.0
1.0
1.7
¥2.0

¥0.0
0.1
¥0.1

331

Securitization exposure as investor (for calculation of market risk equivalent amounts)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)
As of March 31, 2015

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%100%On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.3
0.0
0.3
0.6
2.6
¥4.0

¥0.0
0.0
0.5
0.1
¥0.7

¥¥-

¥¥-

¥0.3
0.0
0.3
0.6
2.6
¥4.0

¥0.0
0.0
0.5
0.1
¥0.7

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2016
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

(Billions of yen)
As of March 31, 2015
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

■ Market risk
See pages 122 to 126 for information regarding market risk.

■ Operational risk
See pages 127 to 131 for information regarding operational risk.

■ Equity exposure in banking book(14) Risk management related to equity exposure in banking book
With regard to equities in our banking book, we manage default risk through our credit risk management structure andprice 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 management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices arevalued based on the average quoted market price over the month preceding the consolidated balance sheet date; othersecurities 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 statedat acquisition cost or amortized cost and determined by the moving average method.

332

Securitization exposure as investor (for calculation of market risk equivalent amounts)、Market risk、Operational risk、Equity exposure inbanking book2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(15) Status of equity exposure in banking book(a) Amounts stated in consolidated balance sheet
As of March 31, 2016
Consolidatedbalance sheet
amountExposure of listed stock, etc.
Other equity exposure
Total¥3,785.6
441.8¥4,227.5(Billions of yen)
As of March 31, 2015
Consolidatedbalance sheet
amountFair value

Fair value¥3,964.7/¥/¥4,579.9306.1¥4,886.1¥4,711.1/¥/

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and losses on sales related to equity exposure(Billions of yen)
For the Fiscal year ended March 31, 2015
Gains andlosses on
Gains onLosses on
sales
sales
sales

For the Fiscal year ended March 31, 2016
Gains andlosses on
Gains onLosses on
sales
sales
sales

Sale of equity
exposure¥225.3¥271.1¥45.7¥143.7¥152.0¥8.3

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

(c) Gains and losses from write-offs related to equity exposure
For the Fiscal year ended
March 31, 2016
Gains and losses from writeoffs(Billions of yen)
For the Fiscal year ended
March 31, 2015
Gains and losses from writeoffs¥(10.3)¥(5.3)

Write-offs of equity exposure

Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized gains and losses recognized in the consolidated balance sheet and not recognized in the
consolidated statement of income(Billions of yen)
As of March 31, 2016

Equity exposure

As of March 31, 2015

Net unrealized
gains

Unrealized
gains

Unrealized
lossesNet unrealized
gains

Unrealized
gains

Unrealized
losses¥1,751.2¥1,824.2¥73.0¥2,331.7¥2,360.4¥28.6

Note: The above figures include only Japanese and foreign stocks.

333

Equity exposure in banking book2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Unrealized gains and losses not recognized in the consolidated balance sheet or in the consolidated
statement of income(Billions of yen)
As of March 31, 2016

Equity exposure

As of March 31, 2015

Net

Unrealized
gains

Unrealized
lossesNet

Unrealized
gains

Unrealized
losses¥179.1¥188.7¥9.6¥131.1¥139.1¥8.0

Note: The above figures include only Japanese and foreign stocks.

(f) Equities exposure by portfolio classification

PD/LGD approach
Market-based approach (simple risk weight
method)Market-based approach (internal models
approach)
Total

334

Equity exposure in banking book

As of March 31, 2016

(Billions of yen)
As of March 31, 2015

¥3,901¥4,831.4

559

796.7

-

-

¥4,461¥5,628.1

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■Composition of Leverage Ratio(Millions of yen)
Correspon Correspon
ding line # ding line #on Baselon BaselIIIIII
disclosure disclosure
template
template(Table 2) (Table 1)

Item

On-balance sheet exposures (1)On-balance sheet exposures before deducting adjustment
1items
1 Total assets reported in the consolidated balance sheet
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 thescope of the leverage ratio on a consolidated basis (except
1c7
those included in the total assets reported in the consolidatedbalance sheet)
The amount of assets that are deducted from the total assets
1d
3 reported in the consolidated balance sheet (except
adjustment items) (-)
2
7 The amount of adjustment items pertaining to Tier1 capital (-)
Total on-balance sheet exposures(a)3
Exposures related to derivative transactions (2)Replacement cost associated with derivatives transactions,4etc.
5
Add-on amount associated with derivatives transactions, etc.
The amount of receivables arising from providing cash margin
in relation to derivatives transactions, etc.
The amount of receivables arising from providing cash
6
margin, provided where deducted from the consolidatedbalance sheet pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising7
from providing cash variation margin) (-)
The amount of client-cleared trade exposures for which a
8bank holding company acting as a clearing member is not
obliged to make any indemnification (-)
9Adjusted effective notional amount of written credit derivatives
The amount of deductions from effective notional amount of10
written credit derivatives (-)(b)
11
4 Total exposures related to derivative transactions
Exposures related to repo transactions (3)The amount of assets related to repo transactions, etc
1213
The amount of deductions from the assets above (line 12) (-)
The exposures for counterparty credit risk for repo
14
transactions, etc
The exposures for agent repo transactions
15
(c)
16
5 Total exposures related to repo transactions, etc.
Exposures related to off-balance sheet transactions (4)Notional amount of off-balance sheet transactions
17
The amount of adjustments for conversion in relation to off18
balance sheet transactions (-)
19
6 Total exposures related to off-balance sheet transactions (d)Leverage ratio on a consolidated basis (5)The amount of capital (Tier1 capital)
(e)
20
(f)
21
8 Total exposures ((a)+(b)+(c)+(d))
Leverage ratio on a consolidated basis ((e)/(f))
22

As of March 31,
2016

As of March 31,
2015¥165,817,309¥161,631,157

193,458,580

189,684,749

-

-

-

-

27,641,270

28,053,591

827,836¥164,989,473

645,302¥160,985,855

2,981,601

2,942,592

5,442,321

5,912,591

935,595

723,193

137,668

144,073

-

-

/

/

2,382,713

2,446,530

2,149,991

2,163,910¥9,729,907¥10,005,070

11,213,188
4,973,078

12,641,579
5,486,696

300,864

328,632/¥6,540,975/¥7,483,516

48,317,452

46,576,954

31,095,649

29,687,744¥17,221,802¥16,889,209

7,905,093¥198,482,158
3.98%

7,500,349¥195,363,652
3.83%

335

Composition of Leverage Ratio

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Indicators for assessing Global Systemically Important Banks (G-SIBs)

Item
No.

1

2

3

4
5
6
7

8
9
10
Item
No.

11
12

Description

Total exposures (= a + b + c + d):a. On-balance sheet assets (other than assets specifically identified below b., c. and contraaccount of guarantees)b. Sum of counterparty exposure of derivatives contracts, capped notional amount of written
credit derivatives and potential future exposure of derivatives contracts
c. Adjusted gross value of securities financing transactions (SFTs) and counterparty
exposure of SFTs
d. Gross notional amount of off-balance sheet items (other than derivatives contracts and
SFTs )
Intra-financial system assets (= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn committed lines
extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive
fair value
Intra-financial system liabilities (=a + b + c):a. Deposits due to, and loans and undrawn committed lines obtained from, other financial
institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fair value
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities , excluding HFT and
AFS securities that meet the definition of Level 1 assets and Level 2 assets with haircuts(Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment Clearing Networkand other similar settlement systems, excluding intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)(Billions of yen)
As of March 31,
2016¥199,309.9

9,874.8

16,767.5

23,812.7
137,050.5
1,043,267.0
9,292.7

1,543.7
42,449.2
31,615.7
For the fiscal
year ended
March 31, 2016

¥6,789,919.1
10,155.1

Notes: 1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

336

Indicators for assessing Global Systemically Important Banks (G-SIBs)

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Item
No.

1

2

3

4
5
6
7

8
9
10

Item
No.

11
12

Description

Total exposures (= a + b + c + d):a. Counterparty exposure of derivatives contracts
b. Gross value of securities financing transactions (SFTs) and counterparty exposure of SFTs
c. Other assets (other than assets specifically identified above and regulatory adjustments toTier 1 and CET1 capital under the fully phased-in Basel III framework)
d. Notional amount of off-balance sheet items (other than derivatives contracts and SFTs )Intra-financial system assets (= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn committed lines
extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive
fair value
Intra-financial system liabilities (=a + b + c):a. Deposits due to, and undrawn committed lines obtained from, other financial institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fair value
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities , excluding HFT and
AFS securities that meet the definition of Level 1 assets and Level 2 assets with haircuts(Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment Clearing Networkand other similar settlement systems, excluding intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)(Billions of yen)
As of March 31,
2015¥215,213.7

10,080.9

21,344.4

28,259.0
138,937.1
1,115,373.0
10,234.5

1,416.7
44,114.4
31,864.2

For the fiscal
year ended
March 31, 2015

¥6,782,567.1
9,226.0

Notes: 1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

337

Indicators for assessing Global Systemically Important Banks (G-SIBs)

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Liquidity Coverage Ratio
Liquidity standards agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio to surpassthe minimum standard starting March 31, 2015.
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 isalso One of Evaluation Criteria on the Soundness of the Banks' Management"(the FSA Notice No. 62 of 2015 (the "Notice No.
62")).
The infomation disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the Financial
Services Agency Regarding Status of Sound Management of Liquidity Risk , etc. pursuant to Article 19-2, Paragraph 1, Item 5,
Sub-item (e), etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No. 7 of 2015)" (the FSA
Notice No. 7 of 2015).
The status of our sound management of liquidity risk is as follows:(In million yen, the number of data)
Item

For the three months ended March 31, 2016

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, 2015//

54,269,331

55,206,490

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

43,814,768

3,526,754

43,687,360

12,247,595

367,427

12,147,447

3,520,818
364,423

31,567,172

3,159,326

31,539,913

3,156,394

61,096,693

38,221,245

58,756,360

36,657,038

0

0

0

0

of which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securities

52,611,115

29,735,667

49,271,511

27,172,189

of which, Debt securities

8,485,578

8,485,578

9,484,848

9,484,848/

1,007,649/

1,340,293

24,736,058

6,600,312

25,576,120

6,366,157

2,080,660

2,080,660

1,873,334

1,873,334

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

214,307214,307258,990258,990

13of which, Cash outflows related to credit andliquidity facilities

22,441,090

4,305,344

23,443,795

4,233,832

14

Cash outflows, etc. related to contractual funding
obligations

6,558,085

1,693,256

5,144,352

1,831,821

15

Cash outflows related to contingencies

68,314,160

650,749

68,659,447

630,584

16

Total cash outflows/

51,699,968/

50,346,713

Cash Inflows

(3)

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

17

Cash inflows related to secured lending andinvestments, etc.

9,797,730

653,420

9,942,416

687,617

18

Cash inflows related to collections of loans, etc

9,647,511

6,681,798

9,566,566

6,281,643

19

Other cash inflows

6,359,369

2,026,801

6,101,912

1,952,187

20

Total cash inflows

25,804,610

9,362,021

25,610,894

Consolidated liquidity coverage ratio(4)/8,921,449/

21

Total HQLA allowed to be included in thecalculation/

54,269,331/

55,206,490

22

Net cash outflows/

42,337,947/

41,425,264

23

Consolidated liquidity coverage ratio/

128.2%/

133.4%

24

The number of data used to calculate the average
value

338

Liquidity Coverage Ratio

3

3

2016/08/30 18:29:05 / 16241906_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Notes: 1. Item from 1 to 23 are quarterly average using data points as shown in item 24.
2. We do not apply the "exception regarding qualifying operational deposits" in Article 28 of the Notice No. 62 with respect to item 6.
3. The numbers in item 11 include the amount of additional collateral required due to market valuation changes on derivative transactions estimated by the "historical lookback approach" instead of "scenario approach" in Article 37 of the Notice No. 62.
4. There are no material components that necessitate detailed explanation of "cash outflows from other contracts" in Article 59 of the Notice No. 62 within item 14, "cashoutflows from other contingent funding obligations" in Article 52 of the Notice No. 62 within item 15, "cash inflows from other contracts" in Article 72 of the Notice No. 62
within item 19.

Consolidated LCR (Average)

Jan-Mar2016

Oct-Dec
2015

Jul-Sep
2015

Apr-Jun2015

128.2%

133.4%

128.4%

124.6%

Our Consolidated LCR does not lead to any issues since it surpasses not only the minimum standard required under the liquidity
regulation, but also the final regulatory standard (100%), with no significant change.
LCR disclosed herein does not differ much from the level we expected beforehand, and we do not expect our Consolidated LCR in
the future to deviate significantly from the current level.
There are no significant changes in the composition, such as currency composition or type composition, and geographic
distribution of the HQLA allowed to be included in the calculation.
In addition, there is no significant currency mismatch which might affect our funding conditions between total amount of the HQLA
allowed to be included in the calculation and net cash outflow regarding significant currencies.

339

Liquidity Coverage Ratio

2016/08/30 18:29:05 / 16241906_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 Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Compensation of directors, corporate auditors and employees(16) Qualitative disclosure(a) State of the organizational system relating to compensation of "Subject directors, corporate auditors andemployees" of Mizuho group
1. Scope of "Subject directors, corporate auditors and employees""Subject directors, etc." and "Subject employees, etc." subject to disclosure as provided for in the FSA Notice(collectively, "Subject directors, corporate auditors 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 auditors 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
and employees of MHFG and directors, corporate auditors 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"), Trust & Custody Services Bank, Ltd., 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 ¥45 million. Such base amount has been set based on the average amounts of the compensation of
directors, executive officers as defined in the Companies Act and corporate auditors of MHFG, MHBK and MHTB
for the last three fiscal years (excluding persons who resigned or retired during each of such fiscal years), taking
into account fluctuations 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 amountsof compensation 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 of MHFG and directors,
corporate auditors, executive officers as defined in our internal regulations and market department employees ofmajor consolidated subsidiaries.
2. Decisions on compensation of "Subject directors, corporate auditors and employees"(1) Decisions on compensation of subject directors, 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 2016, 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
executive officer of its own.

340

Qualitative disclosure2016/08/30 18:29:05 / 16241906_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 the internal regulations of MHFG and directors and executive
officers of MHBK, MHTB and MHSC are as set out in (1) Decisions on compensation of subject directors andcorporate auditors.
With regard to the compensation of corporate auditors of MHBK, MHTB and MHSC, it is determined pursuant to
consultation among corporate auditors, including outside corporate auditors, and set within the scope of the total
amount of compensation of corporate auditors resolved at ordinary general meetings of a shareholder.
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. Decisions on compensation of employees in risk management departments, compliance departments and internal audit
departments
The compensation of employees in risk management departments, compliance departments and internal audit
departments is decided in accordance with the salary and bonus system, and specific payment amounts areconclusively determined in accordance with employee performance evaluations made by the relevant department andthe human resources department, independent from departments furthering business. Each employee of the risk
management departments, the compliance departments and the internal audit departments sets their own items forevaluation in the employee performance evaluations, subject to the approval of their superiors. The degree to which theitems are fulfilled is evaluated taking into account the degree of the employee's contribution to risk-management,compliance and internal audit.
4. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee
Number of meetings held
(April 2015 – March 2016)
Compensation Committee(MHFG)

8

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, corporate auditors, and employees of Mizuho group
1. Policies relating to compensation(1) Policies relating to compensation of subject directors, executive officers and corporate auditors
The "Mizuho Financial Group Compensation Policy" sets out the policy concerning the determination ofcompensation for each individual director, executive officer as defined in the Companies Act, executive officer as
defined in our internal regulations and specialist officer ("Directors, etc.") of MHFG, MHBK, MHTB and MHSC.
a. Purpose of the Policy
Executive compensation for MHFG, MHBK, MHTB and MHSC pursuant to such policy aims to function as incentive
and compensation for each officer to exercise the designated function to the fullest with respect to striving to realize
management with consideration to value creation for various stakeholders and improve corporate value throughcontinuous and stable corporate growth based on our basic management policies under our Corporate Identity.
b. Basic Policy
The basic policy with respect to the determination concerning the individual compensation of Directors, etc., ofMHFG, MHBK, MHTB and MHSC is set forth below:(i) The executive compensation shall be based on the function and responsibility assigned to and the performance ofeach of the Directors, etc.
(ii) The executive compensation shall give consideration to improving corporate value and creating value for various
stakeholders over the medium to long term.

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(iii) The executive compensation shall reflect the management environment and business performance of our group.
(iv) The executive compensation shall enable compensation for securing expert personnel such as professionals witha competitive edge in the market.
(v) The compensation system and standards shall be reevaluated based on such factors as the economic and social
conditions and survey data with respect to management compensation provided by external specializedorganizations.
(vi) Regulations and guidelines, etc., concerning executive compensation, both in Japan and overseas, shall becomplied with.
c. Compensation System
I. The compensation system for executive officers as defined in the Companies Act (including executive officers who
are directors), executive officers as defined in our internal regulations and specialist officers of MHFG and directors,
executive officers and specialist officers of MHBK, MHTB and MHSC responsible for business execution ("Officers
Responsible for Business Execution") shall be separate from that for the non-executive directors of MHFG and the
directors of MHBK, MHTB and MHSC responsible for management supervision ("Non-Executive Officers
Responsible for Management Supervision").
II. The basic compensation system for Officers Responsible for Business Execution shall consist of basic salaries in
the form of fixed compensation as well as variable compensation consisting of performance payments andperformance-based stock compensation. The ratio of fixed compensation to variable compensation, the range ofvariable compensation based on business performance and the payment method shall be designated in light ofsound incentivization for sustainable growth and restraint on excessive risk taking, while taking into accountregulations and guidelines as well as research data, etc., both in Japan and overseas, concerning executive
compensation. In principle, the ratio of fixed to variable compensation shall be 6 to 4 and the ratio of performance
payments to performance-based stock compensation shall be 1 to 1, based on which the standard amount shall becalculated for each position. The variable compensation shall reflect each officer’s performance within the range of
0% to 150% of the standard amount for each position. The basic salaries, the performance payments and theperformance-based stock compensation as well as the payment methods, etc., are in principle as set forth below:(i) The basic salaries shall factor in each officer’s function and responsibility in addition to the standard amount foreach position.
(ii) The performance payments shall be monetary made as officers’ incentive to achieve the annual budget and ascompensation for their achievement. The payment thereof shall reflect each officer’s performance in addition to thestandard amount for each position. A system shall be adopted which enables a certain amount of deferredpayments of the performance payments over three years, as well as a decrease or forfeiture of the deferred amount
depending on performance of the company and such officer.
(iii) The performance-based stock compensation shall be paid in the form of shares of common stock of MHFG
acquired from the stock market through a trust with an aim to align officers’ interests with those of the shareholders
and increase the incentive to enhance corporate value. The payment thereof shall reflect each officer’s
performance in addition to the standard amount for each position. A system shall be adopted which enables theentire amount of deferred payments of the performance-based stock compensation over three years, as well as adecrease or forfeiture of the deferred amount depending on performance, etc., of the company and such officer.
(iv) The variable compensation intended for professional personnel, etc., appointed from outside the group shall be
individually designed based on the duties and characteristics of business responsibilities and market values, etc., ofeach officer, 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 (clawback) of the deferred amount depending on theperformance, etc., of the company and such personnel.
III. 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 andshall consist of basic salaries and stock compensations.
(i) The basic salaries shall factor in each officer’s function and responsibilities in addition to the standard amount foreach of the full-time and part-time non-executive officers.
(ii) The stock compensation shall be paid to full-time internal directors excluding outside directors in accordance withthe standard amount based on each position. However, the payment standards shall not fluctuate depending oneach director’s level of performance. A system shall be adopted which enables the entire amount of deferredpayments of the stock compensation over three years, as well as a decrease or forfeiture of the deferred amount
depending on performance, etc., of the company.

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d. Compensation Determination Process
I. The Compensation Committee shall determine the determination policy of executive compensation for MHFG,MHBK, MHTB and MHSC. In addition, the Compensation Committee shall determine the compensation for eachindividual director and executive officer of MHFG and approve at MHFG the compensation of each individual
director of MHBK, MHTB and MHSC.
II. The President & Executive Officer, pursuant to this policy and regulations and detailed rules, etc., shall determine
the compensation for each executive officer as defined in our internal regulations and specialist officer of MHFG andapprove at MHFG the compensation of each individual executive officer and specialist officer of MHBK, MHTB andMHSC.
III. 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.
IV. The Compensation Committee, where necessary, may have officers who are not members of the committee(including officers of MHBK, MHTB and MHSC) such as the President & Executive Officer and external experts, etc.,
attend its meetings and request their opinion.
(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 and specialist officers of MHBK, MHTB and MHSC are also thesame as the policies described in (1) Policies relating to compensation of subject directors and corporate auditors
above. The compensation of corporate auditors is determined pursuant to consultation among corporate auditors,
including outside corporate auditors, and set within the scope of the total amount of compensation of corporate
auditors resolved at ordinary general meetings of a shareholder.
Compensation for other employees, etc., is determined in accordance with their duties and responsibilities. Somebonuses that are linked to performance are determined after comprehensively evaluating the employee’s
contribution to business, including any qualitative contributions to the organization, in a manner 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, andexecutive 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.

(c) Compatibility between system for compensation of subject directors, corporate auditors and employees ofMizuho group and risk management and matters relating to linking compensation with performance
The performance payments and performance-based stock compensation for Officers Responsible for Business Execution
are made or paid based on the standard amount set for each position, with which each officer’s performance shall bereflected, and determined in accord with a performance evaluation, etc., against the annual business plan. A certain
amount of the performance payments and the entire amount of the performance-based stock compensation shall bemade or paid in deferred payments over three years, and a decrease or forfeiture of the deferred amount may be madedepending on the performance, etc., of the company and such officer. It should be noted that certain subject directors,
corporate auditors and employees have entered into compensation-related contracts.
Stock compensation for Non-Executive Officers Responsible for Management Supervision shall be made in accordingwith the standard amount set for each position, and the payment level shall not change based on the performance ofeach officer. The entire amount of the stock compensation shall be paid in deferred payments over three years, and adecrease or forfeiture of the deferred amount may be made depending on the performance, etc., of the company.

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Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(17) Quantitative disclosure items(a) Matters relating to types and total amounts of, and payment method for, compensation of subject directors,
corporate auditors, and employees of Mizuho group─Total amount of the compensation, etc., of subject directors, corporate auditors and employees─
(Millions of yen)
For the fiscal year ended March 31, 2016

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas
employees, etc.

Base
compensation

Stockcompensationtype stock
options

OthersNumber of
persons

Total amount ofcompensation

Total amount of
fixed
compensation

21

¥862

¥862

¥861

¥-

¥1

374

31,517

14,277

12,551

-

1,726

345

29,532

13,298

11,572-

1,725(Millions of yen)
For the fiscal year ended March 31, 2016

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas employees,
etc.

Total amount ofvariablecompensation

Base
compensation

Bonus

OthersRetirement benefits

Others

¥-

¥-

¥-

¥-

¥-

¥-

16,549-16,548030

659

15,730-15,729030

473

Notes: 1. Amounts of compensation of subject directors and corporate auditors include amounts of compensation received for duties performed as a director or corporate auditor of a major consolidated subsidiary.
2. The amount of fixed compensation deferred prior to the fiscal year ended March 31, 2015 and paid during the fiscal year ended March 31, 2015 was ¥141 million (subject directors and corporate auditors: ¥110
million; subject employees, etc. : ¥31 million) and the outstanding amount of deferred fixed compensation as of March 31, 2015 was ¥1,008 million (subject directors and corporate auditors: ¥646 million; subject
employees, etc. : ¥361 million).
3. Total amount of variable compensation includes ¥4,181 million of deferred compensation that arose during the fiscal year ended March 31, 2015, all of which was for Subject Employees, etc., and could in the
future be taken back in the event of poor business results or other detrimental factors. The amount of variable compensation deferred prior to the fiscal year ended March 31, 2015 and paid during the fiscal
year ended March 31, 2015 was ¥1,804 million (subject employees, etc. : ¥1,804 million) and the outstanding amount of deferred variable compensation as of March 31, 2015 was ¥6,863 million (subject
employees, etc. : ¥6,863 million).
4. Total amount of compensation for subject employees, etc., includes ¥140 million of allowance for termination and resignation (number of subject persons: 9), multi-year guarantees of bonus of ¥233 million(number of subject persons: 1), signing bonus of ¥249 million (number of subject persons: 10) and allowance for absence from work of ¥106 million (number of subject persons: 5) .
5. Because the amounts of the variable compensation of the directors and executive officers of MHFG, MHBK, MHTB and MHSC for the fiscal year ended March 31, 2016 have not been determined at this time,they are not included in the above compensation, etc. However, we have recorded the required reserves for accounting purposes.
6. The exercise periods of the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of the options is postponed, even during theexercise period, until the time of retirement of the director or employee.

First Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Second Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Third Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fourth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fifth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Sixth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Seventh Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.

Exercise Period
from February 17, 2009 to February 16, 2029
from September 28, 2009 to September 25, 2029
from August 27, 2010 to August 26, 2030
from December 9, 2011 to December 8, 2031
from September 3, 2012 to August 31, 2032
from February 18, 2014 to February 17, 2034
from December 2, 2014 to December 1, 2034(b) Other relevant matters relating to our system of compensation for subject directors, corporate auditors andemployees of Mizuho group
Not applicable, other than those covered in the above.

344

Quantitative disclosure items

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345

Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan
Tel: +81-(0)3-5224-1111
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