Profile
The Mizuho Financial Group is one of the largest financial institutions in the world, offering a broad range of financial services
including banking, securities, trust and asset management, credit card, private banking, venture capital through its groupcompanies. The group has over 57,000 staff working in approximately 950 offices inside and outside Japan, and total assets ofover $1.6 trillion (as of March 2010). The group was created in September 2000 through the establishment of a holding companyof our three predecessor banks, The Dai-Ichi Kangyo Bank (DKB), The Fuji Bank (Fuji) and The Industrial Bank of Japan (IBJ). Under
the umbrella of the holding company Mizuho Financial Group, our principal group companies include Mizuho Corporate Bank,
Mizuho Bank, Mizuho Securities and Mizuho Trust & Banking.

Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)
Millions of yen
2010

For the Fiscal Years ended March 31,

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

¥

2009

2,935,885
2,558,119
377,765
239,404
134,966¥

Thousands of U.S. dollars
2010

3,536,565
3,942,443(405,877)(588,814)
131,015$

31,555,084
27,494,834
4,060,250
2,573,132
1,450,627*Non-consolidated basis.

Millions of yen
2010

As of March 31,

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Net Assets¥ 156,253,572
43,096,460
62,164,579
86,627,588
5,837,053

2009

Thousands of U.S. dollars
2010¥ 152,723,070
30,173,632
70,520,224
86,539,020
4,186,606$ 1,679,423,604
463,203,578
668,148,963
931,078,986
62,737,028

2009

U.S. dollars
2010

Yen
For the Fiscal Years ended March 31,

2010

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

¥

16.29

¥

(54.14)

$

0.18

8.00

10.00

0.09

20.00
30.00

20.00
30.00

0.21
0.32

*Non-consolidated basis.

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)

2010

2009

13.46%

10.53%

Ratings
As of August 31, 2010

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

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

A
A+
A+
A+
A+
A+

a–1
a–1
a–1
a–1
a–1
—

—
AA–
AA–
AA–
AA–
AA–

—
—
—
—
J–1+
J–1+

—
Aa3
Aa3
Aa3
Aa3*
—

P–1
P–1
P–1
P–1
P–1*
—

A
A+
A+
A+
—
—

—
A–1
A–1
A–1
—
—

A
A
A
A
—
—

F1
F1
F1
F1
—
—

* Credit ratings for MTN programme (Joint Medium-Term Note Programme with Mizuho International plc. and Mizuho Securities USA Inc., based on keep well agreement with
Mizuho Corporate Bank, Ltd.).

2010 Mizuho Financial Group Annual Review

Contents

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

2

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

10

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

13

Securities, Trust, and Asset Management Business Strategies

16

Management Structure

18

Business Outline

19

Office Network

20

Business Approaches Adopted by Each Global Group

22

Initiatives to Strengthen Collaboration among Group Companies

46

CSR Activities

48

Brand Strategy

50Management Systems

52

Internal Control Systems

57

Financial Analysis [Under Japanese GAAP]

77

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

115

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. andFour Subsidiaries [Under Japanese GAAP]187

Status of Capital Adequacy

203

Senior Executives

251

Location of Overseas Offices

252

Investor Information

255

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

Forward-Looking Statements
This Annual Review contains statements that constitute forward-looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,”“plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to
identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Thesestatements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range ofpossible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio;changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes
related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar
purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; theeffectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan andelsewhere; changes to applicable laws and regulations; and our ability to implement our Medium-term Management Policy and other strategic
initiatives and measures effectively.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key
Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S.
Securities and Exchange Commission (“SEC”). In addition, information regarding market developments after March 31, 2010 and their effects
on our financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 30, 2010 containing
financial information for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are available
in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC's website at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter
our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of
the Tokyo Stock Exchange.

1

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

the status of recovery is still unsatisfactory, and weare aware that we should make continuous efforts
to enhance profitability.
The business environment surrounding financial
institutions is about to undergo drastic change inthe wake of the repercussions of the global financial
crisis, changes in social and economic structures,and revisions of financial regulations. Even thoughhaving emerged from the worst phases of thedownturn, in a situation where causes of concern
exist, such as the aggravation of the fiscal conditionof certain nations in Europe and the appreciation of
the yen for the Japanese economy, the global andJapanese economies remain in the grips of uncertainty toward their recovery trend going forward.
Amid these circumstances, Mizuho will mark its
10th anniversary this year. At this turning point, in
May 2010, we launched the “Mizuho's Transformation Program” as the Medium-term Management
I positioned fiscal 2009, when I was appointed CEO,

Policy of the group over the next three fiscal years.

as a year to solidify our foothold and implemented

This program was formulated, under my strong

three initiatives, namely, managing risks, strengthen-leadership, through a fundamental review of ouring capital base, and enhancing profitability, undercurrent profitability, financial base, and front-line

the management policy of proactively addressing thebusiness capabilities, and it identified a series of ini-

issues that confront the group as well as building thetiatives for further enhancement of these areas infoundations for future development. The major

order to respond promptly and appropriately to theachievements of these initiatives were:

new business environment, as well as to put theFirst, in “managing risks,” we successfully con-Moreover, in July 2010, we issued common stock

previous fiscal year: credit costs, net losses relatedwith a total paid-in amount over ¥750 billion as partto stocks, and the impact of the financial marketof the implementation of the Transformation

dislocation.

Program. This issuance is aimed at responding to theSecond, in “strengthening capital base,” werevision of capital regulations, as well as establishingendeavored to strengthen the quality and quantity of

our capital base as a cornerstone for our sustainable

our capital base by issuing common stock with agrowth for the future.

total paid-in amount of over ¥500 billion and other

These were the major achievements in my firstmeasures. As a result, our capital ratios showed sig-

year as CEO. I will continue striving to further

nificant improvements.

increase Mizuho's corporate value through theThird, in “enhancing profitability,” we recorded2group's “customer first policy” into practice.

trolled the three key loss generating factors in theimplementation of our Transformation Program.

consolidated net income of ¥239.4 billion, consider-

In the following sections, I would like to explain

ably exceeding our estimate at the beginning of the

our accomplishments and management strategies interm. Although performance improved significantly,

more detail.

Looking back over the recent economic conditions,financial soundness. Consolidated net gains related tothe actions taken to stabilize the financial system andstocks amounted to ¥4.2 billion, a year-on-year

stimulate the economy by major countries in coopera-

improvement of ¥404.5 billion, as a consequence of ation with each other in response to the financial crisis

significant decrease in the devaluation loss reflecting

have been effective, and the global economy has

the stock market recovery, and recording gains on sales

emerged from its worst and is recovering moderately.

through our efforts to reduce our stock portfolio.

Similarly, the Japanese economy is showing a steadyConsolidated unrealized gains (losses) on other securi-

upward trend, with positive real GDP growth main-ties*3 improved ¥840.0 billion, to ¥267.6 billion, driven

tained, reflecting improvements in the foreign econom-

mainly by the recovery in the stock markets.

ic environment, especially in the emerging countries,*1. Credit cost ratio = Credit-related costs / Total claims under the
Financial Reconstruction Law (aggregated amount of banking
account and trust account)*2. Net NPL ratio = (Disclosed claims under the Financial
Reconstruction Law (FRL) – Reserves for possible losses on loans) /(Total claims – Reserves for possible losses on loans)*3. The base amount to be recorded directly to net assets after tax
and other necessary adjustments.

and the effectiveness of economic stimulus policies.
Nevertheless, in a situation where causes of concern
exist, such as the effects of the cessation of economic
stimulus packages, worsening employment, and theaggravation of the fiscal condition of certain nations in
Europe and other areas, it remains uncertain whether
the global economy is capable of maintaining its
recovery going forward.

Second, in “strengthening capital base,” we haveendeavored to strengthen the quality and quantity of
our capital base. For instance, in the first half of fiscal
2009, we issued common stock (the number of shares

Financial Results for Fiscal 2009

issued: 3.0 billion shares, total amount paid: ¥529.2

Amid these conditions, we positioned fiscal 2009,

billion). As a result, our consolidated capital adequacy

ended March 31, 2010, as a year to solidify ourratio, Tier 1 capital ratio, and prime capital*4 ratio as offoothold and worked on initiatives to manage risks,

March 31, 2010 were 13.46%, 9.09%, and 5.62%,

strengthen capital base, and enhance profitability,

respectively, all representing significant improvements

under the policy of proactively addressing the issues

over the year. We paid a year-end cash dividend of ¥8that confront the group as well as building the founda-

per share of common stock for fiscal 2009 and madetions for future development.

dividend payments on preferred stock as prescribed.

First, in “managing risks,” consolidated credit-related
costs decreased by ¥317.4 billion on a year-on-yearbasis, to ¥219.3 billion, primarily due to our efforts for*4. Prime capital: Tier 1 capital – Preferred debt securities –Preferred stock (excluding mandatory convertible preferredstock) represents capital items of Tier 1 with a stronger ability toabsorb losses.

appropriate credit management while responding toour customers' funding needs in addition to an

Third, in “enhancing profitability,” consolidated

improvement in economic conditions. The credit costgross profits for fiscal 2009 increased by ¥189.6 billion

ratio*1 of Mizuho Corporate Bank, Mizuho Bank, andon a year-on-year basis, to ¥1,996.6 billion.

Mizuho Trust & Banking (the Three Banks) was 22 basis

Gross profits of the Three Banks increased bypoints (bps), a significant improvement from 69bps for¥107.1 billion on a year-on-year basis, to ¥1,593.1 bil-the previous fiscal year. Our non-performing loan (NPL)

lion, due to an increase in income derived from flexible

ratio and our net NPL ratio* 2 of the Three Banksand timely operations in the Trading segment andremained at low levels of 1.91% and 0.79%, respec-

other factors, which was partly offset by a decrease in

tively. The balance of disclosed claims under Japan's

income from Customer Groups, mainly due to a

Financial Reconstruction Law of the Three Banks

decline in deposit income reflecting the drop in market

decreased by ¥64.8 billion from the level of March 31,

interest rates. Despite a year-on-year increase of ¥37.2

2009, to ¥1,319.9 billion, and we maintained sufficientbillion in expenses associated with employee retirement

3

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

benefits, general and administrative (G&A) expenses ofgovernment as well as a decrease in loans to large

the Three Banks decreased by ¥2.0 billion on a year-

corporate customers and others. Meanwhile, the loan

on-year basis, to ¥907.2 billion, due to our overall cost-balance of the Three Banks, as of the end of fiscal

reduction efforts.

2009, declined by ¥1.9 trillion, to ¥61.5 trillion, from

Aggregated consolidated gross profits (net operat-

the level at the end of the first half (¥0.8 trillion of

ing revenues) of our two securities subsidiaries

this decline was due to a decrease in loans to the(Mizuho Securities*5 and Mizuho Investors Securities)

Deposit Insurance Corporation of Japan and theincreased by ¥167.6 billion on a year-on-year basis, toJapanese government).

¥300.6 billion, mainly due to, in addition to an increase

The domestic loan-and-deposit rate margin (pleasein commission income, the effect of the merger withrefer to *8 shown on the graph below) for the fourth

Shinko Securities.

quarter of fiscal 2009 (the three-month period from

As a result, consolidated net business profits* 6

January to March 2010) was 1.39%, having remained

amounted to ¥702.6 billion, and consolidated net

flat since the second quarter (the three-month period

income was ¥239.4 billion, both representing con-from July to September 2009).

siderable improvements compared with the previous

Net interest income on a consolidated basis for fiscal

fiscal year.

2009 increased by ¥82.8 billion on a year-on-year*5. Our financial results for fiscal 2008 did not include the resultsof Shinko Securities (net operating revenues of ¥93.5 billion
and ordinary losses of ¥14.2 billion), since Shinko Securities wasan affiliate under the equity method of the Mizuho Group atthat time.
*6. Consolidated net business profits = Consolidated gross profits –G&A expenses (excluding non-recurring losses) + Equity inincome from investments in affiliates and certain other consolidation adjustments

basis, to ¥1,151.7 billion, with an increase in net interest income in the Trading segment and other factors.

• Non-Interest Income
Net fee and commission income of the Three Banks forfiscal 2009 amounted to ¥289.0 billion, a year-on-year
decrease of ¥10.1 billion. This was primarily due to adecrease in fee and commission income from solution-• Net Interest Income

related business and overseas business with corporate

The average loan balance of the Three Banks for thecustomers as well as a decrease in profits from thesecond half of fiscal 2009 decreased by ¥3.7 trillion, totrust and asset management business of Mizuho Trust¥63.0 trillion, compared with the first half due to a sig-

& Banking. Fee income associated with sales of invest-

nificant decrease of ¥1.8 trillion in loans to the Deposit

ment trusts to individual customers increased on a

Insurance Corporation of Japan and the Japaneseyear-on-year basis.

Loan Balance
Average loan balance (*7)

Loan-and-deposit rate margin (*8)

Loan balance as of the period end (*7)(Loan balance: trillions of ¥)
100

80

1.40

60

1.30

40

1.20

0

4

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

Fiscal 2006 Fiscal 2006 Fiscal 2007 Fiscal 2007 Fiscal 2008 Fiscal 2008 Fiscal 2009 Fiscal 2009
(first half) (second half) (first half) (second half) (first half) (second half) (first half) (second half)

Loan balance ¥63.5 tn.

¥65.0 tn.

Loan-and1.31%
deposit rate 1Q 1.29%
margin (*9) 2Q 1.32%

3Q 1.35%
4Q 1.39%¥65.1 tn.

1.37%
1Q
2Q

¥64.3 tn.

¥65.8 tn.

¥68.0 tn.

¥66.7 tn.

¥63.0 tn.

1.44%

1.47%

1.44%

1.46%

1.41%

1.39%

1.44%
1.44%

3Q 1.47%
4Q 1.48%

1Q 1.46%
2Q 1.43%

3Q 1.45%
4Q 1.46%

1Q 1.44%
2Q 1.39%

3Q 1.40%
4Q 1.39%

0*7. Aggregate of the Three Banks,
excluding Trust Account and loans
to Mizuho Financial Group. Balancefor overseas branches includes foreign exchange translation impact.
*8. Aggregate figures of domestic
operations of Mizuho Corporate
Bank and Mizuho Bank after
excluding loans to Mizuho
Financial Group, the Deposit
Insurance Corporation of Japan,
and the Japanese government.
*9. 1Q: the first quarter, 2Q: the second quarter, 3Q: the third quarter,
4Q: the fourth quarterMeanwhile, net fee and commission income of therepercussions of the global financial crisis, changes inThree Banks for the second half of fiscal 2009 increasedsocial and economic structures, and revisions of finan-by ¥16.9 billion, to ¥152.9 billion, compared with thecial regulations.

first half. This was due to increases in fee and commis-

At this turning point, our group released thesion income from solution-related business and over-“Mizuho's Transformation Program” in May 2010, as

seas business with corporate customers, profits from

the Medium-term Management Policy of our groupthe trust and asset management business, fee income

over the next three fiscal years ending March 31, 2013.

associated with sales of investment trusts, and others.

We had conducted a fundamental review of the current profitability, financial base, and front-line business

Net Fee and Commission Income (The Three Banks)(billions of ¥)200

capabilities, and had identified a series of initiatives forfurther enhancement of these areas in order to
respond promptly and appropriately to the new busi-

150

ness environment, as well as to practice our group's“customer first policy.”

100

This Program consists of the following three programs:
500(1) Program for Improving Profitability: Strengthen topline profits through enhancing focused business
Fiscal 2007 Fiscal 2007 Fiscal 2008 Fiscal 2008 Fiscal 2009 Fiscal 2009
(first half) (second half) (first half) (second half) (first half) (second half)

Net Fee and Commission Income¥179.2 bn. ¥172.4 bn. ¥146.3 bn. ¥152.8 bn. ¥136.0 bn. ¥152.9 bn.
FY¥351.7 bn.
¥299.2 bn.
¥289.0 bn.

areas, and strategically reallocate management
resources and reduce costs based on a vigorous
business review,(2) Program for Enhancing the Financial Base:As these results suggest, although performance
improved significantly on a year-on-year basis, theStrengthen the quality and quantity of capital andimprove our asset portfolio, andstatus of recovery is still unsatisfactory, and we are(3) Program for Strengthening Front-line Businessaware of the need to make further efforts to improve

Capabilities: Redeploy personnel to the marketing

our profitability.

front-line through downsizing and rationalization of

In addition, we are keenly aware of the responsibilities of financial institutions in providing a smooth

corporate management functions, and improve theefficiency of the business infrastructure.

supply of funds to customers. Accordingly, we havedrawn up a basic policy regarding the facilitation offinancing and have created the necessary framework

Program for Improving Profitability

and systems to provide a smooth flow of financing,

Business Strategy
Strengthen top-line profits by thoroughly enhancing
business areas where Mizuho has a competitive advantage and fields where growth potential is envisaged. In
addition, strengthen fundamental profitability throughcapturing the various needs of our customers in andoutside of Japan as their strategic business partner,
while facilitating their financing. Aim to increase grossprofits of the Three Banks by approximately ¥100.0 billion compared with fiscal 2009.

including the formation of our Financing Facilitation
Management Committee. Even more so than previously, we are responding quickly and politely torequests for advice from our customers, and, as in thepast, the entire group is taking the initiative in fulfilling its role as a responsible financial intermediary.

Mizuho's Medium-term Management Policy
Our group will mark our 10th anniversary this year. The
business environment surrounding financial institutions
is about to undergo drastic change in the wake of the5

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

• Strategic expansion in business areas whereas well as enhance foreign exchange and remittance

Mizuho has strengths, including the Tokyo metropolitan area and large corporate customers.
[The Tokyo metropolitan area: Transactions withcorporate customers]• Strengthen initiatives for small and medium-sizedenterprises (SMEs) and middle-market corporations
through proposing comprehensive solutions in
response to the management challenges of ourcustomers.
• Specifically, increase loans and non-interest income

transactions by capturing customers' Japan-related
cash inflows and outflows. Also, strengthen initiatives for business-owner customers and land andproperty owners, etc.
[The Tokyo metropolitan area: Transactions withindividual customers]• Strengthen initiatives for loans to individuals,
including housing loans, and make Orient
Corporation an affiliate of the group during thefirst half of fiscal 2010.

The Mizuho Vision : “Becoming the Most Trusted Financial Institution”—Becoming the financial institution that is most trusted by our customers in and outsideof Japan by focusing on our core function of contributing to social and economic development—

Focusing on the three programs to respond promptly and appropriately to thenew business environment, as well as to practice our group's “customer first policy”
Key Target Figures for Fiscal 2012
(Ending March 31, 2013)*10,11(1) Program for
Improving Profitability
Establish competitive advantage
through strengthening of
focused business areas andstrategic allocation ofmanagement resources.

(2) Program for Enhancing
the Financial BaseStrengthen the quality andquantity of capital and improveasset efficiency.

(3) Program for Strengthening
Front-line Business Capabilities

Profitability(1)
Programfor Improving
Profitability

Efficiency
Mizuho's
Transformation
Program(2)
Programfor Enhancing
the Financial BaseStrengthen front-line businesscapabilities through downsizing
and rationalization of corporate
management functions andimprovement of the business
infrastructure efficiency.

*10. The assumptions regarding the economic environment towards
March 2013 are as follows: Interest rates: Uncollateralized
overnight call rate; approximately 0.1%, 10-year Japanese
government bond (JGB) yield; approximately 1.3%,
Nikkei 225: approximately ¥11,000, ¥/US$ exchange rate:
approximately ¥90*11. Figures above are on a consolidated basis except for the
expense ratio, which is on the Three Banks basis.

6

Consolidated net businessprofits: ¥900 billion
Consolidated net income:¥500 billion(3)
Programfor Strengthening Front-line
Business Capabilities

Expense ratio*12: Lower 50% level
ROE*13: 10% level

Soundness
Tier 1 capital ratio: 12% level
Prime capital ratio: 8% or above
Equity portfolio:
Reduce by ¥1 trillion(compared with March 2010)*12. Expense ratio (the Three Banks) = G&A expenses / gross profits*13. ROE (return on equity)= Net income / (((total shareholders'equity + total valuation and translation adjustments)<at the
beginning of the fiscal year> + (total shareholders' equity +total valuation and translation adjustments)<at the end of the
fiscal year>) / 2) x 100

• Increase assets under management of individual customers through collaboration among banking, trust,and securities functions.
• Significantly improve services and accessibility of theretail business of Mizuho Trust & Banking throughutilization of Mizuho Bank's network.
[Transactions with large corporate customers]

share-in in existing commissioned pension trusts, primarily among our main-bank customers.

• Utilize the full range of services of the group's
banking, trust, and securities functions.
• Provide sophisticated financial solutions throughseamless utilization of the full-line services of banking, trust, and securities functions.

• Proactively be involved in corporate customers' busi-• Focus on global collaboration, marketing of M&A

ness and financial strategies taken in response toadvisory services, capital management solicitation, etc.

changes in industrial structure.
• Enhance fundamental profitability, including foreignexchange, remittance and other non-interest income,as well as further strengthen the delivery of comprehensive solutions by fully utilizing the product functions of our group companies.

• Strengthen initiatives for capturing businessin the high-growth Asia region.
Strengthen initiatives for business in Asia, which is a
strategic region for our customers in Japan, theAmericas, and Europe, by leveraging Mizuho's total
global network.
[Business with Japanese customers]• Provide various solutions for global strategies ofour customers, including SMEs and middle-market
corporations.
• Enhance businesses focused on our customers' cash
flows and trade finance.
• Promote export credit agency (ECA) finance andother businesses in capturing infrastructure projects.
• Improve capabilities for emerging currencies in Asia.
[Business with non-Japanese customers]• Pursue lending opportunities with blue-chip customers in response to the needs of their financial
strategies.
• Enhance capabilities for securities business.
Strengthen asset management business, mainly targeting individual financial assets andpension assets.
• Increase market share based on balance of investment products (assets under management) by stepping up sales activities toward individual customers
mainly through group collaboration.
• Strengthen initiatives primarily for corporate pensions and public corporations through share-up and•

Cost Reduction through Vigorous Review ofBusinesses and Reallocation of Management
Resources to Focused Strategic Business Areas
Take measures to reduce costs through unification andoptimization of the group's management infrastructure. Aim to decrease G&A expenses of the Three
Banks by approximately ¥50.0 billion compared withfiscal 2009, and reallocate management resources,
such as approximately 1,000 staff, to strategic areas,
including the Tokyo metropolitan area and Customer
Groups in Asia.

Program for Enhancing the Financial BaseStrengthening of the Capital Base
Maintain our current priority on “strengthening of stable capital base” in light of ongoing global discussions
on the revision of capital regulations.
• Accumulate retained earnings through implementation of “Program for Improving Profitability.”• Implement appropriate capital management.
• Consider various measures in light of regulatory
developments.
Improvement of the Asset Portfolio
Strategically reallocate risk-weighted assets in parallelwith “improvement of asset efficiency” and “further
strengthening of risk management.”• Allocate risk-weighted assets to focused strategic
business areas through a thorough review of noncustomer assets and low-return assets.
• Reduce equity portfolio by ¥1 trillion compared withthe end of March 2010 balance.
• Improve asset quality and streamline balance sheet.

7

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

Program for Strengthening Front-line
Business Capabilities

their capital base amid the ongoing global discussions

Redeployment of Personnel to the Marketing
Front-line
Consolidate and reorganize corporate planning andproduct functions of each of our group companies.
• Unify group planning functions, including humanresources, administration, IT systems, and operations.
• Review and reorganize overlapping functions infinancial product areas at Mizuho Corporate Bankand Mizuho Bank.
• Strengthen the holding company's governing function over the group, improve efficiency of management controls, and expedite decision making.
• Deploy approximately 1,000 staff currently engaged
mainly in corporate management functions to themarketing front-line through unification of functions.

issued 6.0 billion shares of common stock (total

on the revision of capital regulations, in July 2010, weamount paid: ¥751.6 billion).
This issuance is aimed at establishing our capitalbase as a cornerstone for our sustainable growth forthe future, in anticipation of the revision of capital regulations. This is to ensure capital flexibility for us toexpand our business areas with high growth potential
and to further promote customer-related businesses. In
addition, pursuant to Mizuho's Transformation
Program, we endeavor to strengthen our capital basethrough accumulating retained earnings by improvement in profitability and taking various measures in
anticipation of the revision of capital regulations. And,thus, as our new medium-term target, we aim toincrease our consolidated Tier 1 capital ratio to the
12% level and our prime capital ratio to 8% or above.

Improvement of Business Infrastructure
Efficiency
Facilitate consolidation of the group's operational processing functions under the “consolidation and efficiency improvement” policy. At the same time, realize
fundamental streamlining of cost structure with a focus
on IT systems-related costs.

The business environment following the financial crisis
has undergone a sea change, and financial institutions
are being asked to rethink their raison d'etre. We pursue being “customer-oriented,” “frontline-oriented,”and “future-minded” and endeavor to provide thehighest-quality financial services to respond to the fullrange of customer needs by maximizing our capabili-

While implementing this program, we will position

ties as a diversified financial group through promoting

ourselves to make robust progress by strengthening

collaboration among group companies. Moreover, we

focused business areas where customer needs areare addressing the issues we confront forthrightly,

strong and we have a competitive advantage,

relentlessly striving to transform ourselves and to focus

improving our financial soundness and asset efficien-

on further strengthening our management base for acy, and further evolving our group's organization andnew era of sustained growth.

business infrastructure.
The future vision of our group is to become “the mosttrusted financial institution by our customers by focus-

8

Disciplined Capital Managementing on the core function of a financial institution,

We are pursuing “strengthening of stable capital base”

which is to contribute to social and economic develop-

and “steady returns to shareholders as our “disciplined

ment.” In order to fulfill our mission as “A financial

capital management” policy. However, in light of suchpartner that helps customers shape their future andfactors as the financial market turmoil and the global

achieve their dreams” under the group's brand slogan

economic downturn, we have been putting more prior-“Channel to Discovery,” we are working to steadily

ity on “strengthening of stable capital base” since theand surely implement our business strategies based on

second half of fiscal 2008. As it has become increas-solid internal control systems. We also pursue corpo-

ingly important for financial institutions to strengthen

rate social responsibilities (CSR) through such activities

as providing support for financial education and implementing our environmental initiatives. Through these
initiatives, we are working to further increase ourgroup's corporate value while fulfilling our social
responsibilities and accomplishing our public mission.
July 2010

Takashi Tsukamoto
President & CEO
Mizuho Financial Group, Inc.
Note: The above message contains statements that constituteforward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995.
See the disclaimer at the bottom of page 1 of this Annual
Review for information regarding factors that could cause
actual results to differ from those in the forward-looking
statements.

9

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

Aiming to Be a Top Corporate Finance Provider

those divisions are taking initiatives to search out hints
for new growth strategies on behalf of our customers
from the broad perspective of the future development
and shape of their industries. To meet increasingly
sophisticated and diverse customer requirements fordeveloping business strategies, global corporate
strategies, financial strategies, capital management,
and other business issues, we are drawing fully on thefinancial technology of our group, including our capabilities in banking, securities, and trust business, tobecome “a top corporate finance provider” with theobjective of offering optimal financial solutions globally and seamlessly.
To address the issues related to the facilitation of
corporate finance, we have renewed our awareness of

Building a Leading Presence as a
Financial Institution in Asia

the roles of financial institutions in fulfilling our social
responsibilities and conducting our public mission in amanner that contributes to the development of ourcustomers and, ultimately, the development of

The world economy has already bottomed out and is

economies and societies. Accordingly, we are working

said to be basically on a gradual recovery trend, but into enhance our corporate framework and systems toEurope and other areas, concerns remain. In Asia, thedraw on our strengths, which include knowledge andexport environment is favorable, as China continues toperspective on industries and capabilities for providing

report rapid economic growth, and, as a result, Asia is

products and solutions, and play an active role in offer-viewed as likely to be the driving force for the world

ing financial intermediary and consulting services.

economy for the time being, although there are concerns about inflation and the possible tightening of

10monetary policies. Since demand in Japan has peaked,

The Fiscal Year in Review

our domestic customers are implementing corporate

Collaborating with our group companies, we havestrategies looking to the next generation of products

been working to offer our customers in Japan andand services. These strategies include implementing

overseas financial solutions that meet their needs. At

structural reforms and business realignments, making

the core of these initiatives, we have been strength-

investments for growth in overseas markets, as well as

ening and combining our commercial banking anddeveloping new technologies and industries.

traditional investment banking operations, including

Customers are also steadily addressing their manage-

M&A advisory services and underwriting of bonds

ment issues, which include the consideration of finan-and equities.

cial strategies in response to international accounting

In May 2009, we merged Mizuho Securities, which

standards that are now under review. And in the midst

is strong in the wholesale market, and Shinkoof these developments, we are aware that expectations

Securities, which has strengths in the middle and retailregarding the roles of financial institutions have grownmarkets, to form a full-line securities company within

and are very high.

the group. Also, along with the implementation of revi-

At Mizuho Corporate Bank, we have structured oursions in Japan's Financial Instruments and Exchange

business promotion divisions and Industry ResearchLaw, which included changes in firewall restrictions

Division along industry lines, and industry experts fromseparating banking and securities activities, in July

2009, we introduced a system that allows relationshipthoroughgoing measures to strengthen our fundamen-

managers in certain business promotion divisions total profitability and to establish management systems

hold posts concurrently in Mizuho Corporate Bank andto enhance our resilience to changes in the operating

Mizuho Securities. With the introduction of this system,

environment. To strengthen our fundamental profitabil-those relationship managers holding posts concurrently

ity, we will focus on key areas—Asia, sales and trading,

can respond comprehensively to customers' banking

transactions business, and asset management busi-

and securities needs, and thus are positioned to deliver

ness—and concentrate resources in these businesses.

financial solutions more smoothly and conveniently to
our customers.

In Asia, a large number of major investment projects, including infrastructure development, are antici-

In our international operations, we worked topated, and the markets in this region have a highsteadily strengthen our earnings base by implement-

growth potential, making it an important area not only

ing a global strategy. To further expand our overseas

for our Japanese customers but also for European andnetwork, in November 2009, we established a securi-

US customers. We are making maximum use of ourties subsidiary in Saudi Arabia, Mizuho Saudi Arabia,

customer base and global network, which consists oftogether with Mizuho Securities. Mizuho Corporate

69 overseas offices in 30 countries and regions outside

Bank (China), MHCB's subsidiary in China, receivedof Japan, and as each of our offices focuses on theapproval to commence preparations for the establish-

Asian market, we will seek to capture global businessment of a branch in Suzhou, and in Malaysia, ourand further promote our initiatives to “build a leading

application for a commercial banking license waspresence as a financial institution in Asia.” At present,

approved. Also, we moved ahead with the conclusion

we have 32 offices in Asia outside of Japan, and weof strategic alliances with leading local partners inare embarking on a new drive to shift personnel in theregions that are difficult to cover with the group's

fields of relationship management, industry research,

network. These alliances included tie-ups with a gov-

products, markets, and head-office functions to Asia inernment financial institution in Russia and with one oforder to strengthen our capabilities in our solutions

the largest financial groups in Brazil. We also signed

business. In the sales and trading business, we arebusiness collaboration agreements with government

working to draw on our cumulative know-how in for-financial institutions in various countries with the aim

eign exchange and derivatives to enhance our cus-of strengthening our capabilities to support the

tomer flow business and trading functions in Japan andexpansion of our customers' business operations into

the rest of Asia. Along with this, in our transactions

overseas markets.

business, we are striving to strengthen our capabilities

Major accomplishments of the group included

for capturing business related to trade and funds flows

placing number one in the fiscal 2009 domestic syndi-

on a global basis. Especially in Asia, we are responding

cated loan bookrunner ranking and number three into funding demand related to trade and infrastructure

the world in the 2009 syndicated loan bookrunnerinvestments and providing optimal fundraising meth-ranking. Other distinctions included winning theods, working in collaboration with the export credit

number one position in the 2009 M&A advisory rank-

organizations of various countries. In the asset man-ing in terms of the number of transactions. Looking

agement business, we are working with other groupahead, we hope to continue to offer optimal solutions

companies to strengthen our systems to meet the asset

to our customers.

management needs of corporate pension and public
corporation customers.
We are also implementing initiatives to strengthen

Turning to Fiscal 2010

our management systems. These include measures toDuring the current fiscal year, under the Mizuho's

enable us to exert our strengths as a financial interme-Transformation Program, we will be implementing

diary; create new portfolio management frameworks

11

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

Aiming to Be a Top Corporate Finance Provider

to deal with economic cycles, shifts in the market environment, and regulatory changes going forward;
implement preemptive measures to restrain credit
costs; and carry out reviews and reforms of our personnel management and business processes that areappropriate for our future growth strategies.
Mizuho Corporate Bank, while taking account of
the competitive environment in the global economy,
will reaffirm our awareness of our reason for being:
our mission in society of “providing financial support toJapanese industry and industry around the world.” Our
aim is to be a bank that wins the trust and strong support of our customers and markets in Japan andaround the world by offering high-quality, sophisticated, and diverse financial solutions. As we work toward
our objectives, we look forward to your continuing
understanding and support.
July 2010

Yasuhiro Sato
President & CEO
Mizuho Corporate Bank, Ltd.

12

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

Returning to the Basics of Commercial Banking and Achieving Further Development

branches. Also, we began to offer docomo Keitai
Soukin™, a mobile remittance service that enables customers to make monetary transfers using their mobile
phones. We also expanded the functions and services
available through the Mizuho Direct remote channel,
and the number of customers contracting for thischannel exceeded 8.4 million.
Besides these service offerings, among our loan
products for individuals, we also began to handle oursimplified Housing Loan Refinance Preliminarly review
application service that enables customers to makerequests for prescreening for refinancing their loans
easily via the Internet.

• Services for Corporate Customers
Putting the Customer First—Aiming to Become the Most-Trusted
Financial Institution

For our corporate customers, to respond to customers'
loan demand more smoothly than in the past, we havestrengthened our capabilities for responding to fundraising needs. In addition to our initiatives taken in viewof the intent of Japan's Emergency Credit Guarantee

The Year in Review

Scheme, we are making available asset-based loans,

During fiscal 2009, ended March 31, 2010, based onreal-estate backed loans, and other various financethe spirit of “putting the customer first,” we returned

schemes. Along with these, we have established a spe-to the basics of commercial banking and undertook

cialized subsidiary to offer products and services that

initiatives to enhance customer satisfaction among

make use of a new fund-raising measure based on

individuals as well as small and medium-sized enter-electronically recorded monetary claims. Subject toprises (SMEs) and middle-market corporations andapproval by the regulatory authorities, this new sub-their owners.

sidiary is scheduled to begin operations in the first half

• Services for Individual Customersof fiscal 2010.

While working to enhance convenience for individual

Moreover, to offer solutions to management issues

customers, we took various initiatives to respond to aconfronting our customers, we held the Mizuho

diverse range of customer needs.

Business Matching Forum (Environmental Version). We

We fully reviewed the services offered under thehave been taking other initiatives to provide services in

Mizuho Mileage Club membership program, and thecollaboration with other group companies, including

number of members rose to 7.5 million. In addition, we

provision of support for customers' overseas businessincreased the number of Mizuho Personal Squares,

development by drawing on our group's network inwhich are branches with a greater focus on the needs

Asia, which is one of the largest among the Japaneseof individual customers, to 156. Similarly, we expandedbanks. Similarly, we introduced the structure allowing

the number of Planet Booths, which are joint branches

certain personnel of Mizuho Bank and Mizuhowith Mizuho Investors Securities, to 153. With theInvestors Securities to hold posts concurrently in bothobjective of enabling customers to access our group's

institutions; thus, we have strengthened our capabili-

comprehensive range of financial services conveniently

ties for providing support for IPOs.

from single locations, we began to open joint branches

Also, in conjunction with efforts to promote Japan's

by locating Mizuho Trust & Banking's Trust Lounges as

Clean Development Mechanism (CDM), we have been

well as Planet Booths in the same buildings as ourdeveloping the Mizuho Eco-cycle for business aimed at

13

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

Returning to the Basics of Commercial Banking and Achieving Further Development

large corporations, SMEs and middle-market corpora-know-how related to marketing for individual customers,

tions, and individuals. For customers who are proac-

expanding our training systems, and other means.

tively addressing environmental issues, we have been

Drawing on these capabilities, we offer services rang-

offering a range of loan products and providing active

ing from housing loans and advice on asset manage-

support for environmentally conscious management.

ment to testamentary trusts and other services that

• Initiatives to Facilitate Financing

accurately meet the needs of customers at various

In view of the intent of Japan's “Act concerning

stages over the course of their lifetimes.

Temporary Measures to Facilitate Financing for SMEs,

In addition, we are working to increase customer

etc. (Financing Facilitation Act for SMEs),” which went

convenience and improve customer satisfaction

into effect in 2009, we have created the necessary

through expanding our Mizuho Direct remote channelframework and systems to provide a smooth supply ofservices delivered via the Internet, mobile terminals,

financing to individual and corporate customers. We

and other means, opening new joint offices to provide

have also implemented various other related measures,banking, trust banking, and securities services from

including changes in loan terms and conditions.

single locations, and conducting other measures.

During the current fiscal year also, we are taking

Furthermore, we will make Orient Corporation, one oflending risks appropriately and actively after implement-

the leading consumer credit companies, our affiliate

ing proper risk management measures. While remaining

and strengthen our operating ties with that company,

constantly aware of the social responsibilities of finan-with the objective of offering services to a broader

cial institutions and the importance of our public mis-range of customers.

sion, we are making efforts to facilitate corporate
financing.

In the corporate customer segment, we are expanding our functions to offer support for customers in

In individual customer business, we are responding

dealing with the marketing issues they confront, as we

sincerely in dealing with customers' requests regarding

continue to actively provide a smooth supply of funds

the repayment of housing and other loans. For our cor-and optimal solutions.

porate customers, we are holding various kinds of sem-At the same time, fully drawing on the comprehen-inars and taking other initiatives to assist them in find-sive financial capabilities of the group, we are offeringing solutions to their management issues. Along witha broad spectrum of solutions, including businessthese activities, we are offering support through ourinheritance, M&A and business matching to support

specialist division to provide various solutions to cus-

customers' business strategies as well as structured

tomers, including advice on management matters andfinance, syndicated loans, and other finance proposals.

guidance for making improvements, business inheri-

In addition, we are providing advisory services on cus-tance services, and business revitalization services.

tomers' overseas business expansion. We are also
expanding our comprehensive consulting systems andenhancing our capabilities for accurately meeting the

Looking Ahead to Fiscal 201014

needs of corporations and corporate owners.

Mizuho Bank continues in the spirit of “putting the

At Mizuho Bank, we are promoting CSR activities

customer first” and sustaining the basic policy ofand began to offer Heartful Loans in May this year to“returning to the basics of commercial banking andprovide support to corporate customers who areachieving further development.” To provide services

actively engaged in promoting the employment ofthat are truly useful to our customers, we will imple-

senior citizens and persons with disabilities. Along

ment our “innovation in marketing” initiatives.

with these activities, we are promoting barrier-free ini-In the individual customer segment, we are working

tiatives in our branches to enable anyone to use their

to enhance the consulting capabilities of our financial

facilities and services easily, regardless of age, gender,

consultants through the sharing and transmission ofor disability.

In addition, to enable customers to conduct theirbanking transactions in safety, we are strengthening
our initiatives to ensure the observance of high compliance standards and fully protect our customers as wellas prevent financial crime.
The operating environment for financial institutions
remains challenging. However, as the activities underMizuho's Transformation Program show, we are “putting the customer first” and responding quickly andaccurately to the new management environment. To
become the most-trusted financial institution, we arecontinuing to evolve and to develop together with ourcustomers.
The management and staff of the Mizuho Bank are
devoting our fullest efforts and working as one toattain our objective of achieving customer satisfaction.
We, therefore, look forward to your continuing understanding and support.
July 2010

Satoru Nishibori
President & CEO
Mizuho Bank, Ltd.

15

Securities, Trust, and Asset Management Business Strategies

Basic Strategy for the Securities Businessprovides timely, high-quality information and offers

To pursue synergies by strengthening ties between thehigh-value-added products and solutions to meet thegroup's banks and securities companies, Mizuho is cre-varied investment needs of a wide range of customers

ating an organization that utilizes and integrates its

at home and overseas.

banking and securities functions to provide customers

It is also making efforts to utilize its network ofwith comprehensive solutions based on customer seg-

overseas subsidiaries for the integrated development of

mentations. To this end, Mizuho Securities (MHSC)

domestic and overseas business.

handles securities business for the Global Corporate
Group, and Mizuho Investors Securities (MHIS) handles

Mizuho Investors Securities

securities business for the Global Retail Group.

In addition to building a powerful cooperative network

Mizuho is aiming to maximize collective groupwith Mizuho Bank (MHBK), MHIS is working closely

capabilities by reinforcing mutual collaboration

with other group companies to achieve its goal of

between the global groups so that the individual

becoming “the securities company that customers

group securities companies can make the most of theirtrust most to be close to them.”

strengths and characteristics in better satisfying customers' varied needs.

To expand its cooperative channels with MHBK, it isdeploying joint branches known as Planet Booth.
Among other things, it is also proactively strengthening

Mizuho Securities

ties with the group through a financial instruments

MHSC is working closely with Mizuho Corporate Bank

intermediary service with MHBK and trust agent busi-(MHCB) and other group companies to fulfill its aspira-ness with MHTB. In some capital markets sections,tion of becoming “the most reliable investment bank

MHIS introduced a “double-hat” structure allowing its

with global reach.”staff to hold posts concurrently in MHBK. This allows

MHSC provides customers with all-round support

them to strengthen and deepen collaboration as they

through its investment banking business, proposing

focus the group's financial functions on efforts to pro-management strategies and procuring funding. It hasvide a wide variety of financial services to corporate

already secured a position as a market leader in thecustomers with IPO needs.

bond underwriting business and structured finance. It

With this as its business promotion base, MHIS

has also occupied a top position in M&A and other

responds to customers' asset management needs

financial advisory services. These constitute its mainthrough various securities-related solutions, to theirbusinesses, along with providing solutions throughfunding needs through equity and bond underwriting

underwriting equities, support for IPOs, IR consulting,

services, and to their capital management needs

and financial and capital management advisory servic-

through consulting services, thus providing carefully

es. In some business promotion sections, MHSC intro-

tailored, high-quality products and securities services

duced a “double-hat” structure allowing its staff toin a speedy manner.

hold posts concurrently in MHCB. This not only allows
them to offer sophisticated banking and securities solutions to corporate customers by further strengthening
and deepening collaboration, but also to focus ourgroup's financial functions on efforts to provide customers with the best possible financial services fortheir needs.
In providing and selling products, its principal
operations cover sales and trading of bonds andequities, research and funds (investment trusts). It

16

Basic Strategy for the Trust Businessinclude deposits and loans.

Mizuho Trust & Banking (MHTB) offers a wide range of

MHTB is promoting stronger earnings and a major

trust services as the core of the Global Asset andexpansion in its customer base by offering trust prod-

Wealth Management Group, and the Trust & Custodyucts and services to all customers of Mizuho. By con-Services Bank (TCSB) offers high-quality, high-value-centrating on its core competences, it is also channel-

added custody services. Through these two companies,

ing management resources into unique areas where it

the group is working to make the most of its trust func-

can demonstrate its strengths in the trust business,tions to deliver optimal solutions to customers of thethereby endeavoring to enhance its specializations andentire group, whether they belong to the Global

profitability.

Corporate Group or the Global Retail Group.
By positioning the creation of stronger ties with

Trust & Custody Services Bank

group companies as a basic strategy, MHTB and TCSB

Based on its advanced operations and IT infrastructure,

will offer new products and services in a timely manner

its rigorous internal control structure, and its customer-

to respond to customers' diversified and increasingly

oriented philosophy, TCSB provides a wide range of

sophisticated needs quickly and accurately.

products, from trust to custody services, and quickly
satisfies the increasingly varied needs of financial insti-

Mizuho Trust & Banking

tutions, institutional investors and other customers as a

MHTB gives top priority to speedily and accurately

trust bank specializing in asset administration.

offering solutions in the form of original products andservices that make full use of the highly specialized
accumulated over many years. By satisfying customers

Basic Strategy for the Asset Management
Businessin this way, it aims to become “the top brand in asset

In the investment trust and pensions markets, theand wealth management.”group aims to become one of the world's leading play-consulting expertise and the rich know-how it has

For individual customers, it offers various services
pertaining to wealth management, from consulting in

ers in terms of both quality of services and volume ofassets under management.

connection with overall asset management and invest-

Our asset management companies, Mizuho Assetment to services relating to asset transfers—especiallyManagement and DIAM, make the most of their indi-

inheritance and wills—loan products, deposits andvidual specialties in offering high-quality products andinvestment trusts, and asset management products

services to both group and non-group customers. In thethat utilize its trust functions.

distribution of investment trusts, they offer a widely

MHTB offers its corporate customers a wide range

varied lineup of products designed to meet the increas-of services and optimal solutions pertaining to asset

ingly diversified and sophisticated needs of customers.

management. These cover brokerage, securitization,

In the Japanese defined contribution pension

and other aspects of the real estate business; struc-business, the group supports the formation of assets

tured products business offering new services in thefor individuals to enjoy in their retirement, and pro-area of asset securitization using trust schemes; pen-vides solutions pertaining to the management issues

sion and other asset management business; pensionof companies.

business ranging from pension trusts and consulting toactuarial and management services; asset administration business such as custody of investment trusts; andstock strategy business providing advisory services inconnection with stock transfer agency operations andadministrative matters affecting stocks. Other solutions

17

Management Structure

The three global groups organized based on customer needs are working to leverage theirrespective strengths as they work together to provide the highest-quality financial services.

Mizuho Financial Group, Inc. (MHFG)

Global Corporate Group

Mizuho Corporate Bank, Ltd. (MHCB)

Mizuho Securities Co., Ltd. (MHSC)

Global Retail Group

Mizuho Bank, Ltd. (MHBK)

Mizuho Investors Securities Co., Ltd.
(MHIS)

Global Asset & Wealth Management Group

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

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

Mizuho Private Wealth Management
Co., Ltd. (MHPW)Group Strategy Affiliates
Mizuho Financial Strategy Co., Ltd.
(MHFS)
Mizuho Research Institute Ltd. (MHRI)
Mizuho Information & ResearchInstitute, Inc. (MHIR)

18

DIAM Co., Ltd. (DIAM)

Business Outline

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

Banking
Business

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

Mizuho Bank(MHBK)

Mizuho Trust & Banking(MHTB)MHBK serves primarily
individuals, SMEs, andmiddle-market corporations,and local governments in Japan.

A trust bank that possesses
strengths in both the corporate
and individual markets.

Mizuho Securities(MHSC)

MizuhoInvestors Securities(MHIS)A securities company witha global wholesale businessplatform and a nationwide
customer base.

A securities company thatis building a powerful cooperative network with MHBK.

Mizuho Trust & Banking(MHTB)

Trust & Custody
Services Bank(TCSB)

Defined Contribution
Plan Services(DCPS)

A trust bank that makes
the most of its trust functions
in offering solutions to
Mizuho's customers.

A highly specialized trustbank focusing on
the custody business.

An entity that specializes inmanaging defined contribution
pension plans.

MizuhoAsset Management(MHAM)DIAM

An asset managementcompany with a long history(established in 1964).

An asset management company
in which The Dai-ichi Life
Insurance and Mizuho bothhave equity holdings.

UC CardMizuho Private
Wealth Management(MHPW)

MizuhoTrust Realty Company

A credit card company
specializing in operational
management of the UC brandand acquiring business.

A wealth management
services company.

A real estate agency.

MizuhoCredit Guarantee

Mizuho CapitalMizuho Factors

Guarantees housing
and other loans.

A principal venture capitalcompany.

Engages in guaranteeing
overseas and domestic tradereceivables, and collection
agency business within Japan.

MizuhoResearch Institute(MHRI)

Mizuho Information& Research Institute(MHIR)

Mizuho-DL
Financial Technology

MizuhoFinancial Strategy(MHFS)

A think tank.

A company in charge ofIT strategy.

A research and development
company of financial technology.

An advisory company
for financial institutions.

Securities
Business

Trust and AssetManagement
Business

Other
Businesses

19Office Network

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

International Network (As of August 3, 2010)
MHCB
Overseas branch or relevant office
Overseas representative office
Major overseas subsidiary or relevant office

MHSC

LondonOverseas subsidiary
Overseas representative office

Beijing

Amsterdam

MHTB

TianjinDüsseldorf

Overseas subsidiary

Frankfurt

DIAM
Overseas subsidiary

DalianLuxembourg
Qingdao

Moscow

Brussels

Seoul

Vienna

Paris

Wuxi

Nanjing
Wuhan

MadridXiamenZurichTehranMilan

Shenzhen

New Delhi

BahrainRiyadhDubai

ShanghaiTaipeiTaichung
Kaohsiung

Guangzhou
Hong Kong
Mumbai
Hanoi

ManilaBangkok
Ho Chi Minh City

Kuala Lumpur
Singapore
SydneyJakartaLabuan*MHSC started operations of its overseas subsidiary Mizuho Saudi Arabia on November 2, 2009.
*MHSC opened its subsidiary Mizuho Securities India in Mumbai on August 3, 2010.
*Mizuho Corporate Bank (China) received approval to start preparations for the establishment of a branch in Suzhou, scheduled to be opened in fiscal 2010.
*Mizuho Corporate Bank received approval for a new commercial banking license in Malaysia and is preparing to establish a wholly-owned banking
subsidiary, scheduled to be opened in 2011.

20

Toronto

Vancouver
ChicagoNew York

San Jose
Los Angeles
NassauHoustonCaymanMexico City

Atlanta

Network in Japan (As of July 31, 2010)
MHCB
Head Office and Branches: 18

MHBK
Head Office and Branches: 416
Sub-branches: 37
Agencies: 45

MHSC
Head Office and Departments: 3
Business Promotion Offices: 97

São PauloMHTBHead Office and Branches: 36
Sub-branches: 4

MHIS
Head Office and Branches: 56
Planet Booths*: 141*Planet Booths are the consulting boothsof MHIS located in MHBK's Branches21

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Business Environment and Overview of the Global Corporate GroupThe global economy has escaped the worst of the recession and has started a gradual improvement as the initiatives for
economic recovery adopted by individual countries began to take effect and the emerging economies maintained their
growth. Even so, it is still not certain whether this recovery is sustainable because the effects of economic stimulus measures are beginning to wear off, the employment situation is worsening, and some European countries have not yet eliminated concerns about their economies (deterioration of fiscal conditions, etc.).
In this environment, customers such as large enterprises and global corporations are relying on financial institutions to
go beyond simple financial services, such as funding and improving financial efficiency, to include business strategies
aimed at investment for overseas expansion and at growth for the next generation.
In order to satisfy these needs, it is essential that financial groups enhance their competitiveness and offer sophisticated, innovative solutions, transcend previous concepts and frameworks, and combine financial functions such as banking,securities, and trust services.
To respond to the needs of large enterprises, global corporations, and other entities, the Global Corporate Group provides just such highly specialized, innovative solutions by leveraging its comprehensive financial capabilities and integrating
and reinforcing its commercial banking business and traditional investment banking business.

22

Key Group Companies• Mizuho Corporate Bank (MHCB)• Mizuho Securities (MHSC)MHCB provides optimal solutions to meet the increas-

MHSC offers optimal solutions in response to the wide-

ingly diverse and sophisticated needs of customers in

ranging needs of domestic and international institution-

the areas of both finance and business strategies, focus-

al investors, corporations, financial institutions, and pub-ing its efforts on serving major corporations (such as

lic sector entities as well as individuals.

those listed on the first section of domestic stock

Its investment banking services range from equity

exchanges) and their group companies, financial institu-

and bond underwriting and support for IPOs to financial

tions, public sector entities, and Japanese and foreign

and capital management advisory services, M&A adviso-

companies overseas.

ry services and structured finance. In providing and sell-

In addition to taking full advantage of the functions

ing products, its principal operations cover sales andof other group companies such as MHBK, MHSC andtrading of bonds and equities, investment products and

MHTB, MHCB utilizes its alliances with financial institu-

research reports.

tions around the world to offer a comprehensive rangeof leading-edge financial services and solutions on an
ongoing, multifaceted basis as it aims to become a top
corporate finance provider that understands the broadranging needs of its customers.

Highlights
Corporate Bank•• Mizuho
Mizuho Corporate Bank (China), MHCB's subsidiary

Securities•• Mizuho
May 2010 marked the first anniversary of the MHSC

in China, received approval to start preparations forthe establishment of a branch in Suzhou, scheduled
to be opened in fiscal 2010. This will bring the number of branches in China to 11 (not including Hong
Kong and Taiwan).

merger. Making the most of its global platform andits full-service, nationwide securities business network, it is working to establish a strong management
infrastructure and offer optimal solutions based on
sophisticated product and service capabilities.

• Mizuho Corporate Bank (China) became the first foreign bank to become an executive member bank of
the Loan Syndications and Trading Association (LSTA)
under the Chinese Banking Association.

• As part of its program to strengthen its Asia business, MHSC established an overseas subsidiary in
Mumbai in India on August 3, 2010.

• MHCB continues to forge ties with financial and governmental institutions around the world, including abusiness cooperation agreement with the Brazilianbank Itaú Unibanco Holding.
• MHCB ranked third in the world in the Thomson
Reuters' syndicated loan bookrunners league table(2009, calendar year basis).

• In the DealWatch Awards 2009 announced byThomson Reuters, MHSC won awards for theStraight Bond of the Year in the domestic straightbond category, the Samurai Bond House of the Yearin the samurai bond category, the IPO of the Year,and the Innovative Equity Deal of the Year in theequity category.

23

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Business Strategies of Mizuho Corporate Bank
Although the global economic environment remains difficult, customers pushed ahead with structural reforms and business reorganizations while investing in growth overseas, developing new technologies and industries, and adopting business strategies with growth for the next generation in mind. At the same time, there is a strong possibility that systemicchanges, such as revision of international accounting standards (IFRS), may have a major impact on customers' business
management. Against this background, customers' financial needs are becoming increasingly diverse, sophisticated, andglobal, requiring financial institutions to offer comprehensive, high-level, innovative solutions.
Drawing on its robust, long-term relationships with customers, MHCB is offering financial solutions on a global basis as“a top corporate finance provider,” combining and strengthening its commercial banking operations with its M&A advisory services and other aspects of its traditional investment banking business.
More specifically, it is boldly shifting its human and management resources to focus on Asia, offering Japanese companies maximum support for their global expansion while at the same time covering customers in various countries with thecomprehensive relationship model that is one of Mizuho's main strengths.
MHCB is not only responding rapidly to credit risk, market risk, and other changes in the market environment, but has
also commenced active, flexible portfolio management operations, including forecast management, and is strengthening
its capabilities to manage its credit and stock portfolios.
In this way, MHCB is deploying a globally based strategy that reflects changes in the market environment and building
a solid risk management structure, as it aims to establish itself as a top brand name in the corporate finance sector andbecome the most trusted “bank of choice” among its customers.
Conceptual Image of Corporate Finance— Combining and Strengthening CB (Commercial Banking) and Traditional IB (Investment Banking) Functions
Strategic advisory functions based on robust relationships

Support for global operations(CB business)
Lending, settlement

Identify andshare customers'
global growthstrategies

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

Use the IB business to create and supplement CB business

Providing Solutions to Customers’ Needs
Specialty of RMs for Large Corporations
Acting as relationship managers (RMs) for the entire group, MHCB's RMs are providing proactive support as financial advisors to customers seeking funds. MHCB is also focusing on its solutions business by making use of the specialist functions
and full-line functions embodied within the group to accurately identify management issues of customers, and aiming torealize their business, financial, global, and other growth strategies.

Deep Understanding of Industry
MHCB's Industry Research Division acts as the research team, proposing comprehensive solutions to customers centeredon business and financial strategies. Its activities focus on three areas: (1) the “sector-specific analyst function,” which24uses wide-ranging information concerning industry and sectoral knowledge accumulated over many years; (2) the “sectorspecific strategist function,” which works on future business strategy proposals together with customers; and (3) the “corporate finance function,” which supports the formulation of customers' financial and management strategies. Altogether,some 110 specialists cooperate with corporate banking divisions in providing advice to customers.
The environment facing customers is changing rapidly as a result of growing activity in the area of strategic crossborder corporate alliances and increasingly fierce competition for market share in emerging markets overseas. In April
2010, MHCB established a Direct Investment Office within the Industry Research Division to support customers advancing
overseas. It also set up an Asia Office to expand its coverage in Asia to include India and China. Having led in the field ofdomestic industrial research for many years, the Industry Research Division has extended its operations to Asia as well as
Europe and the Americas, allowing MHCB to strengthen its functions as a global partner while working with customers intackling management issues.
Changes in industrial structures and diversification of corporate strategies appear to be gaining momentum. Against
this background, the Industry Research Division shares business issues with customers on the basis of its deep understanding of industry, and offers sophisticated financial solutions designed to match their needs.

Approach to Banking and Securities Cooperation
MHCB cooperates with MHSC in providing specialized, sophisticated solutions such as funding, M&A, and securitization inline with customers' capital management and business and financial strategies. For its part, MHSC is building an excellent
domestic track record for underwriting equities and corporate bonds and M&A advisory services.
MHCB leverages financial holding company (FHC) status in the United States, which it obtained in 2006 as the firstJapanese bank, to specialize in full-scale banking and securities services such as unified sales of banking and securities
products primarily to US corporate customers through its New York, Chicago, Los Angeles, Houston, and Atlanta offices.
Since the revision of firewall regulations in Japan in June 2009 made it possible for employees of financial institutions
to hold posts in banks and securities companies concurrently, around 50 staff members have started working in some of
the business promotion divisions at both MHCB and MHSC, further promoting collaboration between them.

Solutions for Financial Institutions and Public Sector Entities• Financial Institutions
MHCB offers the financial institutions customers appropriate proposals for comprehensive solutions in such areas as financial strategies and risk management after taking the new capital adequacy regulations into consideration. In order to
respond to customers' increasingly diversified and sophisticated investment needs, MHCB's investment proposals havecome to embrace products and investment instruments, including syndicated loans, tailor-made investment trusts, andstructured credit products. MHCB also draws on the financial functions of group companies for creating proposals forhigh-quality advisory services and solutions to customers' management issues. These include business integration andreorganization, capital management, strengthening the range of retail financial products, and internal control systems.

• Public Sector Entities
MHCB endeavors to propose optimal solutions that bring together the sophisticated expertise and know-how of groupcompanies to meet the increasingly diversified needs of customers among public sector entities. More specifically, itarranges PFI and PPP deals and syndicated loans and proposes business claim securitization schemes to satisfy customers'
financing needs. It also offers derivative products and accepts entrustment of advisory services in response to the need formore sophisticated risk management operations.
In the public and corporate bond business sector, MHCB has abundant experience and achievements as a leading bank.
MHCB will continue to provide issuers with stable support for funding.

25

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Strengthening Global Business
Mizuho offers domestic and foreign customers engaged in global business activities optimal solutions by combining its
rich experience in overseas markets with its powerful overseas network and cutting-edge financial products. It also continues to strengthen its strategic alliances with leading local partners around the world with a view to responding to customers' various needs in a timely and appropriate manner.
In fiscal 2009, MHCB signed a Memorandum of Understanding for Business Cooperation with one of the largest
Brazilian financial groups, Itaú Unibanco Holding, in August and concluded a collaborative agreement with a governmental financial institution in Russia. MHCB has also concluded cooperative agreements with government agencies in China,
Taiwan, and India in connection with support for overseas expansion by Japanese companies.
MHCB also continues to strengthen its network of overseas offices. Mizuho Corporate Bank (China) received approval
to commence preparations for the establishment of a branch in Suzhou, which is scheduled to open in fiscal 2010, and in
Malaysia, MHCB's application for a commercial banking license was approved. In the Middle East, MHCB and MHSC haveestablished a securities subsidiary, Mizuho Saudi Arabia.

Newly Concluded Business Collaborative Agreements (April 2009 — April 2010)
BrazilA Memorandum of Understanding for Business Cooperation with the Brazilian bank Itaú Unibanco Holding (August)RussiaCooperation Agreement with State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (June)

China
Business Collaboration Agreement with Department of Foreign Trade & Economic Cooperation of the Jiangsu Provincial People's
Government (June)
Business Collaboration Agreement with Department of Foreign Trade & Economic Cooperation of Guangdong Province (November)
Cooperation Agreement on Energy Conservation and Environmental Preservation with the Wuhan Municipal Government (March 2010)
Business Collaboration Agreement with the Changshu Southeast Economic Development Zone of Jiangsu Province (April 2010)

TaiwanMemorandum of Understanding with Department of Investment Services, Ministry of Economic Affairs, R.O.C. (January 2010)

India
Memorandum of Understanding with the Industrial Extension Bureau of the Government of Gujarat (November)
Memorandum of Understanding with the Industrial Guidance and Export Promotion Bureau of Tamil Nadu (February 2010)

Offering Financial Solutions at the Global Level
Sophisticated Financial Services to Match Customers' Needs• Whole Business Securitization (WBS)
MHCB is proactively developing business finance methods backed by future cash flow to be generated by customers' specific businesses. When arranging such business finance, it is essential to be able to identify business risk and utilize sophisticated financial engineering skills that bring together expertise in law, accounting, and taxation, as well as apply securitization and project financing methods. Typical examples are whole business securitization (WBS); future cash flow finance,
which involves setting aside the cash flow generated from specific contracts; and other arrangements that are tailormade to satisfy customers' needs.

26• Project Finance
MHCB is active among the top players in lead arranging, and advising project finance (PF) transactions worldwide. Its service
extends in various industries and sectors including energy and natural resources, power, and infrastructure developments.
Many of the PF deals led by MHCB received the “Deal of the Year” award from the Project Finance International magazine during fiscal 2009, including the PNG LNG project in Papua New Guinea, the Shuweihat 2 water and power projectin Abu Dhabi, and the Manzanillo LNG terminal project in Mexico.
From the perspective of environmental awareness, it also focuses on the renewable energy sector such as wind powerboth at home and overseas. Since August 2009, MHCB has been actively involved in the advisory business acquired from
Mizuho Information & Research Institute (MHIR) in areas such as carbon credit trading and global warming countermeasures. During 2009, MHCB's advisory activities included development of carbon credits generated by recovery of methanefrom a coal mine, as well as by recovery of waste-heat from a sulfuric acid plant.
Given the fiscal constraints, expectation is growing for the use of private sector funds in PFI and PPP mechanism for
new development and/or renewal of social and public infrastructures, and further to the transportation and environmental
sectors. In response to this growing need, MHCB has been successfully developing its track record. In fiscal 2009, it
arranged Japan's first domestic full-scale water utility PFI for the Kawai Purification Plant Redevelopment in Yokohama. It
also arranged PF for the world's largest seawater desalination plant, which is being implemented on a PPP basis by theGovernment of Victoria in Australia.

• Real Estate Finance
MHCB has supported many real estate-related projects involving the arrangement of financing and the provision of advice
in connection with real estate securitization, acquisitions, and development. Making the most of this rich experience andknow-how, it not only arranges real estate non-recourse loans but also works to resolve customers' management issues at
a time of changes in market conditions and regulations. In particular, it offers optimal solutions in the form of a variety offunding methods to customers' financial and business strategies, response to IFRS, CRE strategies (strategies for corporate
real estate management and investment), investment in profit-earning real estate, project feasibility assessments in connection with real estate holdings, and other issues.

• Asset FinanceBy arranging asset securitization, MHCB satisfies customers' demands such as diversification of funding sources andimprovement of financial indices through removing assets from their balance sheet.
MHCB supports customers' financial strategies by offering a wide range of sophisticated, specialist products and solutions that use securitization techniques such as inventory finance and structured leases, as well as securitization of claims
arising from cross-border commercial transactions and securitization using syndication.

• M&A FinanceIn order to enhance corporate value of its customers through M&A and organizational and business restructuring, MHCB
offers sophisticated M&A solutions including acquisition finance. In recent years, there has been a growing need for crossborder M&A deals amidst the increasingly intensive global competition among companies. Mizuho supports its customers'
M&A strategies by strengthening cooperation with group offices and companies at home and overseas, and making themost of their specialist knowledge of legal, tax and accounting standards in each country, and their structuring knowhow. As a market leader in the area of MBOs and LBOs, too, it has cooperated with leading global private equity firms inarranging some major deals for Universal Studios Japan (USJ) and Bellsystem24.

Promoting Value-Added and Globalization in the Syndication Business
MHCB has been engaged in developing the syndicated loan market from the very early days. In fiscal 2009, deals in Japan's
domestic syndicated loan market amounted to ¥25.5 trillion. Against the background of rapid changes in the financial
environment, syndicated loans thus play important roles as funding vehicles in the capital market, along with straight27

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —

corporate bonds. In fiscal 2009, the group took top place in Thomson Reuters' domestic bookrunner league table.
As corporate needs diversify, MHCB is making use of its syndication functions in a number of new areas and sectors,
expanding from routine funding into corporate acquisitions and reorganization as it endeavors to facilitate financing andincrease the value-added of its products.
It has also strengthened its global syndication systemthrough tie-ups the world over by deploying syndication

Trends in Japan's Syndicated Loan Market andMizuho's Share(Trillions of ¥)Arrangement ofSyndicated Loansin Japan (Fiscal 2009)

specialists at its offices in the United States, Europe, andAsia. In calendar year 2009, the bank ranked third in theworld behind two major US banks in the Thomson

30

Reuters' syndicated loan bookrunners league table on a25

yen conversion basis. In August 2009, Mizuho's group

Mizuho's
Share: 31.7%

20

performance in the global syndication market and its contributions to the development of China's syndicated loan

15

market were recognized when Mizuho Corporate Bank

10

(China) became the first foreign bank to be appointed as
an executive member bank of the Loan Syndications andTrading Association (LSTA) under the China Banking
Association. In April 2010, MHCB also became the firstforeign bank to be nominated the chairman of theForeign Banks Committee, and is working hard to foster

50

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Sources: Fiscal 2000 – Fiscal 2002: Thomson Reuters
Fiscal 2003 – Fiscal 2009: “Loans Syndicated and Loans Transferred”
from Japanese Bankers Association(Market share: Thomson Reuters (bookrunner basis))the rapidly growing syndicated loan market in China.

Promoting the Global Transaction Business• e-Business
MHCB responds to customers' needs for greater efficiency in cash management on a consolidation basis by offering various cash management services, such as zero balancing services, payment factory, and so forth, often in combination with
Mizuho Advanced CMS, which enables inter-group loan and payment management.
MHCB also provides competitive cash management solutions on a global basis to customers establishing overseas
offices through Mizuho Global CMS and Mizuho Global Cash Pooling Service. In areas that are not covered by its branch
network, MHCB is proactively promoting the Multi-Bank Cash Concentration (MBCC) Service, which handles fund movements between MHCB accounts and accounts at other banks. This enables customers to realize more efficient cash management because there is no need to change their current accounts at other banks.

• Foreign Exchange and Trade BusinessIn cooperation with specialist divisions and branches in Japan and overseas, MHCB proposes solutions to customers forhedging the potential currency exchange fluctuation risk in their cash flow and balance sheets while keeping the application of IFRS in mind. In addition to issuing guarantees for large value transactions in various export products toward
emerging countries and opening accounts for projects, it has also started handling various services associated with
Chinese yuan transactions, including settlements, exchange transactions, and deposits. It provides cutting-edge tradefinance schemes including securitization of overseas accounts receivable, trade finance using letters of credit, and ECA
finance (finance provided in cooperation with governmental export credit agencies around the world) to satisfy all customers' needs in the areas of trading and overseas investment.

• Yen Settlement and Custody Services
MHCB is working to upgrade its systems and strengthen its operations to cope with funding and securities settlement
system reforms and customers' increasingly diversified needs. It is also enhancing its services by, among other things,

28

establishing a dual office system that allows operations to be carried out in parallel at two office locations, thereby
strengthening its business continuity capabilities.
In the area of custody operations, it has become the first Japanese bank to acquire a business model patent for managing assets deposited by investors. In the area of foreign exchange yen clearing, it has also become the first Japanese bankto acquire SAS70 external certification in respect of internal controls in 2008.

Approach to the Asset Management Business
MHCB makes the most of the synergies between planning, development, and sales in the asset management-related business through seamless management, thus providing customers such as pension funds, financial institutions, and otherinstitutional investors with products and services that match their needs.

• Pensions Business
Bearing in mind customers' efforts to deal with the abolition of Tax Qualified Pension Plans, the introduction of immediate
recognition of pension liabilities under IFRS, a volatile market environment, and asset management that takes financial
aspects and the liabilities side into consideration, MHCB is strengthening its ability to offer comprehensive pension services
and has the top performance record in the field of defined contribution pension plan entrustments in Japan. In cooperation with MHTB and group asset management companies, it is focusing the strengths of the entire group on offering thebest possible products and services.

• Approaches to the Global Alternative Investment Business
Diversification of investment assets remains a hot topic among institutional investors, and alternative investments are recognized as an asset class that have a relatively low correlation with traditional investment assets such as equities andbonds. In order to respond with precision to diversifying needs, the group is moving ahead with initiatives to offer hedge
funds developed and managed by US asset management company Mizuho Alternative Investments, and blue-chip hedge
funds selected from around the world by Tokyo asset management company Mizuho Global Alternative Investments.

Promoting the Global Market BusinessIn the sales and trading business, MHCB offers optimal financial solutions that use cutting-edge financial technologies tosatisfy customers' increasingly diverse and sophisticated global financial and business risk control needs.
It has expanded its product lineup from basic areas such as interest rates and foreign exchange to oil, metals, weather,and other commodity derivatives, and ultra-long-term, low-liquidity currency derivatives. At the same time, it offers highquality solutions by expanding its product range and strengthening its trading capabilities in respect of local currencytransactions in countries around the world. Particularly, in the field of exchange deals with countries in Asia, it offers optimal exchange products, such as non-deliverable forwards (NDFs), which involve no deliveries in local currencies throughcooperation between its team of experts, who are thoroughly familiar with the market's characteristics, and its network ofoverseas offices.
Through its tie-up with Mizuho-DL Financial Technology, which is a group company specializing in the development offinancial technology, MHCB offers sophisticated risk control methodologies that include the development of “dynamic
foreign exchange hedging”—a statistical/probabilistic exchange risk hedging method that eliminates market views andarbitrariness—to take care of areas that are not covered by existing risk management methods. Some 96 customers havemade use of “dynamic foreign exchange hedging” since it was introduced in 2004.

29

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Aiming to Become “the Most Reliable Investment Bank with Global Reach”
May 2010 marked the first anniversary of the MHSC merger. MHSC provides high-value-added financial services thatmake the most of the nationwide customer base and full-services securities business network based on the know-how it
built up through its wholesale business and its global platform. In its role as the securities company at the core of the
Global Corporate Group, MHSC aspires to become “the most reliable investment bank with global reach.”Business Strategies of Mizuho Securities
In addition to maximizing the synergies from the merger, MHSC is endeavoring to strengthen cooperation with groupcompanies while “focusing on customer-oriented business model” and “establishing a strong business management baseresilient to changes in business environment.” Based on the realization of these two key concepts, it is striving to secure asolid presence as one of Japan's leading investment banks/securities companies. Since the second half of fiscal 2009,
therefore, it has been pursuing comprehensive reinforcement measures in four areas: responding to regulatory changes;
displaying synergies; strategic initiatives to strengthen the business base; and improving business infrastructure. In fiscal
2010, these endeavors include “improving basic profitability,” “strengthening global business capabilities,” and“strengthening internal control.” To improve basic profitability, it will further strengthen equity business, including thoseon sales and trading operations. To strengthen global business capabilities, it will firmly establish global business management and strengthen its overseas offices, especially in Asia.

Mizuho Securities’ Main Businesses
Based on the mission statement embodied in the key words “Fair & Positive,” MHSC seeks to become its customers' only
choice as the securities company offering the best professional services, and to contribute to the sustainable developmentof society as a responsible player in the capital markets. In the areas of equities, bonds, and other securities, it is committed to responding to the wide-ranging needs of institutional investors and corporate customers such as corporations,financial institutions, public sector entities, and individual customers both in Japan and overseas.

Investment Banking Business
MHSC has sustained its sector-leading performance in the area of bond underwriting operations. It is also building longterm relationships of trust with its customers as a result of its powerful bond selling capabilities, as well as its ability to set
prices to reflect customers' demand with precision and respond rapidly to changes in the market. It has grown into amajor player in the equities underwriting business, delivering sector-leading performance. In the area of M&A advisory
services, MHSC draws on its advanced sectoral knowledge and know-how to provide advice to suit customers' management strategies, winning a top-class reputation for its capabilities that consistently places it on the top rungs of the advisory rankings. MHSC has secured a solid reputation among its customers as a market leader in securitizing real estate andmonetary claims and other finance arrangement business. It is reinforcing its ability to put forward and execute proposals
in line with customers' business strategy needs while striving to create new business opportunities.

Products Provision and Sales Business
Having carved out a position as a market leader in the bond business, MHSC provides products that suit its customers'
investment strategies, engaging proactively in market making and offering high-quality information. In the equities business, it is also responding appropriately to its customers' increasingly sophisticated needs by making the most of the
expanded resources resulting from the merger. Looking ahead, MHSC will continue to respond to customer needs andexpand market presence both at home and overseas by strengthening its research functions, further reinforcing its execution capabilities as a means of better responding to the sophisticated needs of global institutional investors, and offering a30

variety of high-value-added products. It is working to expand its services, adopting two different transaction approaches
that allow individual customers to make a choice according to their preferred investment styles. It is also putting considerable effort into giving advice to company owners, and proactively engaging in financial instruments intermediary service(securities sales agency) through regional financial institutions.

Global Management Framework
Since April 2010, MHSC has been in transition towards a full-scale global business management framework in the investment banking business (including coverage) and the markets and products business, all with a view to further strengthening
its global business capabilities. In line with this, it has deployed global business heads as part of efforts to shift a globally
integrated management platform and run their customer business in a seamless manner. To support the expansion of thesebusiness developments from an infrastructural perspective, it has established a Global Business Infrastructure Committee,
which promotes management accounting, risk management, and the design, improvement, and promotion of IT and otherinfrastructural operations. It has also established a new International Division to further strengthen the management structure at overseas subsidiaries.
Total SB League Table

Further Strengthening Global Operations
MHSC has deployed subsidiaries and other offices in theimportant overseas financial markets such as the United
Kingdom, the United States, Hong Kong, Singapore,
Switzerland, and Saudi Arabia, strengthening its global
management framework for underwriting and selling
equities, government bonds, and corporate bonds, andengaging in the M&A advisory business. Mizuho Securities*Underwriting amount basis, including samurai bonds and municipal
bonds. Total amount of issues: ¥15,604.0 billion.
(April 2009 to March 2010, pricing date basis)

Rank Company name
1
2
3
4
5

Nomura Securities
Mizuho Securities*
Mitsubishi UFJ Securities
Daiwa Securities Capital Markets
Nikko Cordial Securities

Amount(billions of ¥)3,210.1
3,103.2
3,052.4
2,751.9
870.0

Share
(%)
20.5
19.8
19.5
17.6
5.5

Source: Calculated by MHSC, based on data from I-N Information Systems*Aggregated figures of the former Shinko Securities and the former MHSC.

USA has been offering a full range of securities services in
the United States since MHCB obtained FHC status there,

Aggregated Domestic Equity League Table

and is steadily compiling a track record in underwriting US*Underwriting amount basis, including REIT. Total amount of issues:¥4,781.0 billion.
(April 2009 to March 2010, pricing date basis)

corporate bonds and equities. The group regards Asia as apriority area, and its Hong Kong subsidiary Mizuho

Rank Company nameSecurities Asia acts as an Asian regional hub as it works to

1
2
3
4
5

develop its operating base as a full-scale/full-line investment bank. Mizuho Securities (Singapore) is developing its
business targeting global institutional investors.

Nomura Securities
Daiwa Securities Capital Markets
Mizuho Securities*
Mitsubishi UFJ Securities
Nikko Cordial Securities

Amount(billions of ¥)1,646.3
783.2
562.8
477.7
405.4

Share
(%)
34.4
16.3
11.7
9.9
8.4

Source: Calculated by MHSC, based on data from I-N Information Systems*Aggregated figures of the former Shinko Securities and the former MHSC.

Establishing a Global Network
MHSC is working to enhance its Asian business. In addition

M&A Advisory Ranking

to starting operations of its overseas subsidiary in Riyadh,
Saudi Arabia, in November 2009, it is moving ahead with

*Announced deals which Japanese companies were involved in (excl.
real estate deals), based on no. of transactions.
(January to December 2009)its plans to expand its representative office into a local sub-Rank Advisor

sidiary in Mumbai, one of India's key cities, during the first

1
2
3
4
5

half of fiscal 2010. It is also making broadly based efforts
to expand its operations, forming external partnerships
with Maybank Investment Bank, one of Malaysia's top-tierinvestment banks in September 2009, and G5 Advisors, aMizuho Financial Group*
NomuraDaiwa Securities SMBC
Mitsubishi UFJ Financial GroupGCA Savvian

No. of
deals
141
129
93
69
47

Amount(billions of ¥)3,811.9
3,947.8
2,704.7
1,968.8
149.2

Source: Calculated by MHSC, based on data from Thomson Reuters*Including figures of the former Shinko Securities.

leading Brazilian advisory company in February 2010.
31

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs, and Middle-Market Corporations —Business Environment and Overview of the Global Retail Group• The Environment Facing Individual Customers
Individual customers face a financial environment where massive transformations are under way. Japan's aging populationand falling birthrate are affecting the very fabric of society. Other transformations include recent changes in the economic
environment, technological developments, and spreads such as the Internet. Progress in deregulation is encouraging firms
from other sectors to participate in the finance business and lifestyles are diversifying. In a more complex financial society
where new products and services are constantly engendered, banks must offer products that better match the customer's life
stage as well as more convenient channel networks. They must also build relationships of even greater trust with customers
through sincere communications.

• The Environment Facing SMEs and Middle-Market Corporations
Corporate earnings continue to improve as the domestic economy maintains its steady recovery, but to ensure thatJapan's economic revival is better established, it is essential to contribute to the development of customers' businesses in
the SME and middle-market corporate sectors by proactively making the most of the financial intermediation function.
Against this background, banks are strongly required to respond to these corporate customers' needs for stable lending
services and management issue resolution.
With the close cooperation of the group companies of Mizuho and leading domestic and international companies, theGlobal Retail Group provides top-level products and services on a global scale in response to the increasingly diversified
and globalized needs of individuals, SMEs, and middle-market corporations.

32

Key Group Companies• Mizuho Bank (MHBK)• Mizuho Investors Securities (MHIS)MHBK offers various products and services designed to

In line with its aspirations to become “the securities

satisfy customers at various stages of their lives.

company that customers trust most to be close to

In addition to striving to enhance the usability ofthem” and to satisfy wide-ranging securities transaction

Mizuho Direct to make it more convenient for individual

needs, MHIS is working with MHBK to establish joint

customers, MHBK is working to improve the quality of

branches and promote financial instruments intermedi-

its consulting services by training financial consultants

ary service while cooperating with Mizuho's group com-and developing tools for proposals. It is also deploying

panies in areas such as IPOs.

Mizuho Personal Square to offer greater focus on the• Mizuho Capitalconvenience of individual customers.

Mizuho Capital ranks among the top domestic venture

As for the needs of SMEs and middle-market corpo-

capital companies in performance, making full use of its

rations for funding and resolution of managementrich pool of know-how and Mizuho's domestic andissues, it makes use of the financial functions and net-

overseas network in its proactive approach to invest-

works of Mizuho and business tie-ups to offer optimal

ment and consulting.

products, services, and solutions to customers ranging• UC Cardfrom those who are just starting up in business to those
who seek to expand.

Since its consolidation and reorganization through astrategic business tie-up with Credit Saison, UC Card
has specialized in the businesses of managing affiliatedmerchants, the UC brand, and gift cards, and offers
innovative, highly convenient services.

Highlights• Mizuho Bank

Targeting SMEs and Middle-Market Corporations

Approaches to Individual Customers• MHBK is expanding its product lineup to enable it tosatisfy customers' funding needs to the maximum
possible extent.

• Membership of the Mizuho Mileage Club has exceeded 7.5 million.
• The number who signed up for Mizuho Direct has
exceeded 8.4 million.
• MHBK continues to improve the quality of its consulting services with a view to making even better proposals that match the life events and financial needsof customers.
• There are now 156 branches with Mizuho Personal
Square offering greater focus on individual customers, with the addition of five new ones.

• Based on flexible ties with group companies, MHBK
offers specialist solutions to the various management
issues facing SMEs and middle-market corporations,
including business and financial strategies.
• MHBK seeks greater customer satisfaction by meetingthe needs of both corporate and individual customers
through all-round consulting services and comprehensive financial services in cooperation with groupcompanies.

• The number of Planet Booth jointly established by
MHBK and MHIS has reached 153.

33

Business Approaches Adopted by Each Global Group

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

Providing Products and Services Tailored to Each Customer’s Life StageMHBK offers numerous products and services designed to satisfy customers throughout their lives.
Mizuho Direct enables customers who are too busy to visit its branches to execute transactions easily and conveniently.
Even if life events of customers come in succession such as buying a house, paying for a child's education, or drawing
up post-retirement funding plans, the seamless services offered by MHBK through Mizuho Direct and its branches offer
customers convenient, carefully devised solutions. MHBK provides services that are appropriate to meet the needs ofeach individual at each stage of his or her life, or according to his or her lifestyle scenario. For customers considering
asset investments as they approach retirement age, for example, it devises proposals after careful discussion at thebranch counters.

Improving Products and Services according to Customers’ Life Events
Mizuho Mileage Club
MHBK's Mizuho Mileage Club has won the support of a great many customers, and at the end of May 2010, over 7.5
million people signed up for the service.
In addition to offering attractive benefits such as discounts on commissions, the club is working to improve its services
by providing a wide selection of credit cards that customers can choose according to their lifestyles.

“docomo Keitai Soukin™” (Mobile Remittance Service)
In July 2009, MHBK launched the “docomo Keitai Soukin” service in a tie-up with mobile phone carrier NTT DoCoMo.
The service makes use of the bank agent system to allow subscribers to make remittances using their mobile phones.
“docomo Keitai Soukin” does not require the payer and the payee to open a new bank account or register for the service,
but enables the payer to remit money from his or her mobile phone by simply specifying the payee's mobile phone number.
*“docomo Keitai Soukin” is a trademark of NTT DOCOMO, Inc. in Japan.

Loan Services Aimed at Individuals
In December 2009, MHBK launched a simplified Housing Loan Refinance Preliminary review application service, whichallows customers to apply for advance screening for home loan refinancing using the Internet.
To make it easier for people who are too busy to visit a branch on weekdays, it has established a variety of housing
loan consultation services, including consultations on holidays, by telephone or via the Internet.
MHBK also plans to expand its Mizuho Bank Card Loan service to allow customers to borrow or make repayments
through mobile banking.
Following the Financing Facilitation Act for SMEs, it expands consultation services for housing loan customers who arepressed for repaying at branches, via the Internet or by telephone.

Mizuho's Consulting Services
Financial consultants (FC) at MHBK stand ready to help with consultations on financial needs of individual customers, fromvarious kinds of loans to designing future money plans and managing retirement allowances.
It devotes a great deal of effort to training FC through its own FC training scheme, which includes various

34

well-developed training courses and programs. It is also working to enhance the quality of its consulting by improving its
tools for proposals and its product line-up.
To deal with matters that go beyond its remit, such as requests for securities transactions or testamentary trusts, it
cooperates with MHIS, MHTB, and other group companies to offer the best possible products and services.

Strengthening Branch Counter and Network Services for the Greater Conveniencefor Individual Customers
Mizuho Direct
As of the end of May 2010, over 8.4 million people had signed up for Mizuho Direct, which makes it possible to executetransactions and take advantage of MHBK's wide variety of services, including Internet banking, mobile banking, andtelephone banking.
In fiscal 2009, MHBK improved Mizuho Direct services by expanding the range of housing loan products eligible forchanges in conditions, offering free of commissions for the changes in conditions via Internet banking, and extendingtransaction hours for investment trusts.
In fiscal 2010, it is also strengthening the function of the mobile banking login and card loan with a view to making
life more convenient for users.

Seminars and Consultations on Weekends and Holidays
MHBK holds seminars at its head office and branches to help customers who are considering managing their assets forthe first time to better understand the subject.
MHBK provides consultations on asset management and housing loans on weekends and holidays for customers who
are too busy to visit the bank on weekdays and for couples who want consultation services that offer enough time.
Customers who wish to attend these seminars and weekend and holiday consultations may make reservations via
MHBK's website.
*Not all branches offer such seminars and consultations, and those may also be held on different days depending on the branch.

Mizuho Personal Square
MHBK continues its proactive efforts to establish Mizuho Personal Square nationwide—branches designed to reflect thecharacter of the customers in each area—as part of its efforts to create a network of more attractive branches that customers can visit for consultations with greater ease.
In fiscal 2009, MHBK established five new such branches centered in the Tokyo Metropolitan Area, and there were 156
branches in total as of the end of June 2010. Looking ahead, it intends to open further branches in areas where future
growth is promised.

Joint Branches Offering Banking, Trust, and Securities Services
MHBK is working with MHTB and MHIS to deploy joint branches that offer comprehensive financial services.
It established the Trust Lounge together with MHTB and Planet Booth together with MHIS in the building housing the
MHBK Gaienmae Branch in January 2010 and in the buildings housing the MHBK Edogawabashi and Asakusabashi
branches in June 2010, respectively.
The Trust Lounge provides unique trust services relating to inheritance and real estate, while Planet Booth offers a fullrange of securities services. Further joint branches are planned for the future.
There were 153 Planet Booth in total as of the end of June 2010.

35

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs, and Middle-Market Corporations —Promoting Business Aimed at Employees of Corporate Customers
MHBK provides products and services that satisfy the various needs of senior executives and employees of its own and
MHCB's corporate customers as they face various events in life. These include opening accounts for receiving salary when
they start to work, consultations on housing loans for new house purchases, offering comprehensive proposals on postretirement life planning, and managing retirement allowances.

Making Orient Corporation an Affiliate
Mizuho plans to make Orient Corporation (Orico) its affiliate in the first half of fiscal 2010.
MHBK and Orico have cooperated primarily in the area of unsecured loans since they concluded a comprehensive business alliance in July 2004, and outstanding MHBK card loans and unsecured loans guaranteed by Oricoamounted to over ¥900.0 billion as of March 31, 2010.
Orico's transformation into a Mizuho's group company should further strengthen the alliance between it and
MHBK, and both will endeavor to offer timely and appropriate products to their customers of around 40 million
people in total, as well as develop new products and services.

Targeting SMEs and Middle-Market Corporations

In addition to its powerful network of branches in every one of Japan's prefectures, MHBK is building a highly specialized
solutions business promotion framework on the basis of proactive cooperation with group companies.
Making the most of this system and its functions, MHBK is responding to funding needs while at the same time working actively to respond to various management issues and needs, including business matching, support for businessexpansion overseas, and customers' business and financial strategies.
Initiatives to Facilitate Corporate Finance

Responding to Funding Needs

Responding to Management Issues• Business matching(environmental business support)• Reinforcing loan products responding todiversified customers' needs• Initiatives in the agricultural sector• Approach to small-scale corporate
customers• Business inheritance• Support for overseas business expansion• Support for business revitalization• Using electronically recorded monetaryclaims in the finance business, etc.

Efforts to Facilitate Corporate Finance
Based on the assumption that proactive application of the financial intermediation function contributes to the development of customers' businesses, MHBK is strengthening its initiatives to facilitate finance.
Since the enforcement of the Japan's Financing Facilitation Act for SMEs, MHBK has been working to reinforce its

36

appropriate handling of changes in lending conditions, etc., further expanded its lineup of products and services, andstrengthened its ability to cope with customers' funding needs.
Taking advantage of the group's information functions, network, and solutions support specialists, it is also making
proactive use of consulting functions (business consultations and support) according to the customer's life cycle (businessestablishment, new business, management issues, business revitalization, and business inheritance). In this way, it intends
to fulfill the financial institution's social role of ensuring a smooth supply of funds.

Approach to Funding Needs
Bearing in mind the objective of ensuring facilitation of corporate finance, MHBK is actively promoting loans with guarantees
from the Credit Guarantee Corporation under the Emergency Credit Guarantee Scheme in relation to Economic Measuresand other measures.
It is also using its ingenuity to expand its product lineup to enable it to satisfy customers' funding needs to the maximum possible extent.
In particular, it is proactively supporting funding for SMEs and middle-market corporation customers by utilizing diversified
loan schemes, including asset-based loans, which use accounts receivable or products and other operating revenue assets as
collateral, and Mizuho Movables-backed Loans, which use movables such as machinery and equipment as collateral.
In addition, it started offering Mizuho Eco-special, Mizuho Eco-assist, and Mizuho Eco Private Placement, which support funding for customers who adopt a positive approach to environmental issues. In May 2010, it launched Mizuho
Heartful Loans to support customers who are proactively involved in promoting employment among the elderly and thedisabled and helping them live a life of comfort and security.

Approach to Small-Scale Corporate Customers
MHBK is proactively engaged in the lending business, and has concentrated its overall lending operations for small-scalecompanies in Mizuho Business Financial Center, a subsidiary specializing in lending.
The Center is staffed by veterans who are well-versed in the lending business and works carefully to satisfy the funding needs of small-scale customers through financing centered on providing loans with guarantees from the Credit
Guarantee Corporation.
In a joint effort with Mizuho Research Institute, it has started offering the Mizuho Business Channel, a service to provide useful management information to customers of the Mizuho Business Financial Center. It provides further generalmanagement support for customers in the small-scale company segment through seminars on coping with management
issues, such as improving cash flow and similar themes.

Approach to Management Issues
Further Promoting the Solutions Business
MHBK has deployed solutions support experts at headquarters to work closely with its branches in assisting SMEs andmiddle-market corporations with a wide range of management issues, including business and financial strategies.
More specifically, the solutions offered are very diverse, ranging from financing deals in areas such as structured
finance and syndicated loans to solutions associated with business strategies such as business inheritance, M&As and business matching, and advisory services on overseas business expansion.
Furthermore, it is proactively engaged in supporting business improvements and revitalization among SMEs and37

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs, and Middle-Market Corporations —middle-market corporations, which is one of the important social roles that retail banks should fulfill.
In April 2009, it established a specialist division to take on the role of supporting business continuity and revitalization
among SMEs and middle-market corporations. Its highly expert staff are engaged in management consultations, providing
guidance on how to improve, and supporting the revitalization of customers who have fallen into difficulties as a result of
the deteriorating business environment despite having technological expertise, marketable products, and other businessadvantages.

Business Matching
MHBK is proactively engaged in business matching services, introducing customers of Mizuho who best satisfy the business needs of other customers. These services include introducing new sales and purchasing partners, and partners who
can help in the area of cost reduction.
Whether it is a matter of developing new products, diversifying the business, increasing logistic efficiency, computerizing operations, or creating an environmentally friendly system within the company, MHBK delivers strategic business solutions by using its extensive network and experience to provide truly effective advice and support in connection with thevarious management issues customers face.

• Environmental Business Support
MHBK has been providing proactive support for environmentally conscious management of SMEs and middle-market corporations through business matching schemes since October 2007. Having established a consortium with manufacturersof environment-related facilities and environmental service businesses by concluding business matching contracts withthem, it works on introducing the most appropriate environmental business entities to customers among SMEs and middlemarket corporations who are interested in making environmental improvements.
In January 2010, MHBK responded to demand from customers adopting environmental improvement initiatives byholding the Mizuho Business Matching Forum (Environmental Version) on the theme of environmentally conscious management, which resulted in numerous effective business meetings.

Initiatives in the Agricultural Sector
Since December 2008, MHBK has been proactively supporting SMEs and middle-market corporate customers who are
involved in the agribusiness sector, launching initiatives to back up corporate farming entities, agriculture-related business, and other firms engaged in the agricultural sector, as well as taking up the challenge of regional revitalization.
More specifically, it has concluded business tie-ups with specified nonprofit corporations established for the purposeof training and supporting professional farmers. It has also set up an Agriculture Support Desk specializing in consultation within the bank to strengthen support in areas such as fund procurement and sales route expansion, thus helping
underpin the businesses of corporate customers involved in agriculture.

Mobilizing Group Strengths• Support for Overseas Business Expansion
Japanese companies are increasingly looking abroad, and while some are just moving into overseas markets, others aredeveloping businesses they have already established there. In order to satisfy these diverse needs, the bank provides
proactive support for customers' overseas projects through the group's Asian network, which is the most extensive of any
Japanese bank.
Specialist staff in Japan and overseas who are well versed in overseas business provide the best possible information
accurately and quickly according to the needs of the business in question and its development stage—local feasibility
study, overseas business strategy formulation, establishment of overseas subsidiary, post-establishment business
management, and so on.

38

FG10̲AR̲0915 10.9.15 2:42 PM ページ38

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs, and Middle-Market Corporations —middle-market corporations, which is one of the important social roles that retail banks should fulfill.
In April 2009, it established a specialist division to take on the role of supporting business continuity and revitalization
among SMEs and middle-market corporations. Its highly expert staff are engaged in management consultations, providing
guidance on how to improve, and supporting the revitalization of customers who have fallen into difficulties as a result of

In addition to operational support for import and export transactions, they proactively provide solutions such as theMizuho Global CMS and transactions in Asian currencies in response to customers' wide-ranging overseas business needs,
from managing funds at overseas subsidiaries to foreign exchange risk mitigation.
The bank draws on Mizuho's collective group strengths to provide powerful backup for customers' global strategies,

the deteriorating business environment despite having technological expertise, marketable products, and other business

offering thoughtful, meticulous support in connection with every individual issue they face.

advantages.

• IPO Support
MHBK responds to the needs of customers planning IPOs through organized collaboration with other group companies:

Business Matching

MHIS provides broadly based support as a securities company; Mizuho Capital serves as a venture capital investor and pro-MHBK is proactively engaged in business matching services, introducing customers of Mizuho who best satisfy the busi-

vides advice on going public; and MHTB provides advisory and stock transfer agency services.

ness needs of other customers. These services include introducing new sales and purchasing partners, and partners who
can help in the area of cost reduction.
Whether it is a matter of developing new products, diversifying the business, increasing logistic efficiency, computeriz-

From January 2010, some staff started holding posts concurrently at both MHBK and MHIS as part of a move tostrengthen the system for providing customers with consulting services on public stock offerings.

• Using Electronically Recorded Monetary Claims in the Finance Businessing operations, or creating an environmentally friendly system within the company, MHBK delivers strategic business solu-

MHBK is taking steps to move into the finance business using electronically recorded monetary claims, which have been

tions by using its extensive network and experience to provide truly effective advice and support in connection with thecreated as a new type of monetary claim.

various management issues customers face.

It established the wholly-owned specialist subsidiary Mizuho Electronic Monetary Claim Recording in January 2010, and• Environmental Business Support

is moving ahead with preparations to provide the Mizuho Electronic Claims Settlement Service from the first half of fiscal

MHBK has been providing proactive support for environmentally conscious management of SMEs and middle-market cor-2010. This is primarily a settlement service to handle electronically recorded monetary claims paid by large corporate cus-porations through business matching schemes since October 2007. Having established a consortium with manufacturers

tomers to SME customers, and is seen as an initiative that will help facilitate customer funding.

of environment-related facilities and environmental service businesses by concluding business matching contracts with

Mizuho's aim is to offer a service that can be used in a mutually complementary manner to the bill-/note-like handlingthem, it works on introducing the most appropriate environmental business entities to customers among SMEs and middle-

service to be offered by the electronic monetary claim recording institution that the Japanese Bankers Association is con-market corporations who are interested in making environmental improvements.

sidering establishing.

In January 2010, MHBK responded to demand from customers adopting environmental improvement initiatives byholding the Mizuho Business Matching Forum (Environmental Version) on the theme of environmentally conscious man-

* The start of service by Mizuho Electronic Monetary Claim Recording is subject to its designation as an electronic monetary claim recording institution by the appropriate regulatory authorities.

agement, which resulted in numerous effective business meetings.

Initiatives in the Agricultural Sector

Promoting the Comprehensive Proposal Approach that Transcend the Boundaries between
Corporate and Individual Customers

Since December 2008, MHBK has been proactively supporting SMEs and middle-market corporate customers who are

The needs of customers in the SME, middle-market corporation, and individual segments are constantly diversifying,

involved in the agribusiness sector, launching initiatives to back up corporate farming entities, agriculture-related busi-

obliging financial institutions to respond more flexibly to needs that transcend the boundaries between corporate andness, and other firms engaged in the agricultural sector, as well as taking up the challenge of regional revitalization.

individual customers.

More specifically, it has concluded business tie-ups with specified nonprofit corporations established for the purpose

For example, one of the most important management issues facing customers in the SME and middle-market corpo-of training and supporting professional farmers. It has also set up an Agriculture Support Desk specializing in consulta-

rate sector is business inheritance because it simultaneously raises succession issues pertaining to the company's own-tion within the bank to strengthen support in areas such as fund procurement and sales route expansion, thus helping

ership and the owner's own assets. Since it is not just a question of business inheritance, MHBK responds swiftly to theunderpin the businesses of corporate customers involved in agriculture.

owner's needs both as a business manager and as an individual.
To respond to such needs, MHBK brought together the consulting functions for companies and corporate owners,

Mobilizing Group Strengths

the private banking functions for high-net-worth customers, and the trust business cooperation promotion functions• Support for Overseas Business Expansion

under the Consulting Division. This division seeks to enhance customer satisfaction by offering comprehensive consult-Japanese companies are increasingly looking abroad, and while some are just moving into overseas markets, others areing services that respond to the needs of corporate and individual customers, and comprehensive financial services indeveloping businesses they have already established there. In order to satisfy these diverse needs, the bank provides

cooperation with MHTB, MHIS, and other group companies.

proactive support for customers' overseas projects through the group's Asian network, which is the most extensive of any
Japanese bank.
Specialist staff in Japan and overseas who are well versed in overseas business provide the best possible information
accurately and quickly according to the needs of the business in question and its development stage—local feasibility
study, overseas business strategy formulation, establishment of overseas subsidiary, post-establishment business
management, and so on.

3839

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —Business Environment and Overview of the Global Asset & Wealth Management Group
Against the background of structural changes to society accompanying the dwindling birthrate and aging population, as
well as reforms to legislative system and accounting standards, the need for asset management and administration isincreasing among individuals and corporations alike.
In the trust business, revisions of the Trust Business Law and the Trust Law have allowed greater flexibility with regard
to trust schemes and assets that can be placed in trust. This has led to a steady increase in the number of opportunities
to offer solutions that make use of trust functions, including the emergence of totally new trust products such as J-ESOPs(Japanese-style employee stock ownership plans)—trusts that use a company's stocks as a welfare service for employees—
and security trusts.
The Global Asset & Wealth Management Group provides world-class products and services to meet diversified andsophisticated customer needs.

40Key Group Companies• Mizuho Trust & Banking (MHTB)• Asset Management Companies

Trust banks may engage in trust business and related

Mizuho's asset management companies, Mizuho Asset

operations such as real estate, stock transfer agency, andManagement (MHAM) and DIAM, constantly pursue

testamentary trust, as well as banking business. One par-optimal investment results in both the investment trust

ticular feature that sets trust banks apart from otherand the investment advisory businesses as they strive tobanks is their asset management function, which allows

respond accurately to customers' increasingly diversified

them to manage and administer customers' assets.

and sophisticated asset management needs.

MHTB makes use of the trust function to offer financial services to individual and corporate customers, and• Mizuho Private Wealth Management (MHPW)As a full-fledged wealth management services company,

is working to strengthen its trust and asset management

MHPW provides optimal, high-quality, comprehensive,businesses, including pensions, asset management, real

integrative, and continued products and services tailored

estate, securitization and stock transfer agency business.

to the financial and non-financial needs of respective•

customers.

Trust & Custody Services Bank (TCSB)TCSB is a highly specialized trust bank focusing on asset
administration services, offering high-quality, highvalue-added trust, and custody services to financial institutions and institutional investors.

Highlights
Mizuho Trust & Banking•• Hasincreased the number of Trust Lounges specializ-

Trust & Custody Services Bank•• Thebalance of assets under administration increased

ing in consultation and offering asset management,
inheritance and real estate-related services in theTokyo Metropolitan Area to four.

by ¥23 trillion compared with fiscal 2008 to ¥332
trillion.

• Arranged the first privately placed real estate investment fund for pension funds in August 2009.
• Started selling the Sekai no Kenjin (Sage of theWorld), a new type of money trust for individuals in
December 2009.

41

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —Providing Group Customers with Trust Functions
MHTB works with companies of Mizuho to provide their customers with trust functions.

• Consultation-type Branches “Trust Lounges” Established
MHTB has now established four Trust Lounges in the Tokyo Metropolitan Area (Seijo, Aoyama, Edogawabashi, andAsakusabashi) and intends to increase the number going forward. The lounges specialize in consultations and offer
unique trust services relating to asset management, inheritances, and real-estate business. MHTB has adopted a policy of
establishing Trust Lounges jointly with MHBK, MHIS, and Mizuho Trust Realty Company, and will work to provide customers with optimal solutions in cooperation with group companies.

Making Use of Trust Functions
The enforcement of the revised Trust Business Law and the revised Trust Law has allowed greater flexibility with regard totrust schemes and the assets that can be placed in trust. MHTB is proactively taking advantage of this change to develop
trust products that use new assets and new trust schemes.
MHTB has developed a number of trust products and schemes. These include Japan's first greenhouse gas emissions
credit trust scheme, intellectual property rights trust schemes based on copyrights and trademarks, security trusts, trust
schemes associated with business securitization, and a trust scheme to secure language school tuition fees by segregating
advances received.
To add to its retirement benefit-type ESOPs (employee stock ownership plans)—trusts that use a company's stocks as awelfare service for employees—it established disposition-type ESOPs in January 2010.
It also handles escrow trusts to meet asset preservation needs in M&A and real estate-related and other transactions.
In December 2009, it started handling the Sekai no Kenjin (Sage of the World), a new type of money trust that for the
first time offers individuals the know-how the bank has built up over many years in the pension management sector.
Looking ahead, it will continue to focus on the quality that only trust banks can deliver as it offers trust products to satisfy
customers' needs with precision.

Sophisticated Trust Products and Solutions
Asset Management Trusts
MHTB's Asset Management Trust is a trust product which is separately established and managed for each customer, primarily by accepting their stocks, bonds, and other securities. Making the most of the know-how it has accumulated
through its asset management business as a trust bank, it uses its trust functions to provide solutions to various needs
ranging from support for asset management and investment to methods for dealing with acquisition or disposal of treasury stocks, which require special care.

42

Testamentary Trusts
At some stage, everyone faces the important question of how
to ensure their invaluable assets are properly passed on to their

Testamentary Trusts Newly Entrusted(No. of deals)
1,500

heirs. MHTB provides assistance with asset inheritance using
the know-how it has built up over many years and the types of

1,400

services that only trust banks can offer. The number of consultation desks is expanding. As of the end of June 2010, MHTB

1,300

had signed trust agency contracts for testamentary trust business with a total of 23 financial institutions, including MHBK.
0

Fiscal 2007

Fiscal 2008

Fiscal 2009

MHTB's Testamentary Trust Business• Consent to Undertake the Execution of Wills Service
This service covers everything from detailed consultation on drafting a will and holding it in safe custody to confirming periodically changes in assets or the will's contents, and executing the will. When an inheritance arises,
MHTB carries out the procedures required to execute the terms of the will by acting as an executor.

• Will Safe-Keeping Service
MHTB holds wills in safe and secure custody. When a will is kept at home, it may prove impossible to fulfill theintentions of the deceased because of delays in finding it, fire, theft, or loss. Using the will safe-keeping service
helps to avoid such incidents.

• Inheritance Arrangement Services
In this case, MHTB acts as the customer's agent in executing the necessary procedures when an inheritance arises.
MHTB's specialists act on the customer's behalf in complicated procedures ranging from drawing up asset inventories
to distributing the inheritance in accordance with the estate partition agreement, transferring title and other matters.
“Yasuragi” Asset Inheritance Trusts“Yasuragi” Asset Inheritance Trusts are money trusts with riders that allow future transfers of assets to be
designed on an order-made basis. In combination with the will's function of determining who should inherit
what, these trusts make it possible to respond to the varied needs of customers in the area of asset inheritance.

Securitization of Monetary and Other Claims
In its services for securitizing monetary and other claims,
MHTB, using its trust banking know-how, transforms the

Securitized Assets (Monetary Claims)(Trillions of ¥)8

creditworthiness and cash flows of monetary claims, such as
sales and bills receivables held by companies and loans, into

7

asset management products which it offers to individual andcorporate customers.

6

Stock Transfer Agency Services
MHTB's stock transfer agency business involves handling vari-0

March 2008

March 2009

March 2010

ous operations associated with stocks on behalf of the stock
issuer. As a shareholder registry manager, MHTB manages

43

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —shareholder registers, calculates dividends, mails notices convening general meetings of shareholders, counts voting rights,
purchases shares from holders of less than one unit, and sells
shares to holders of less than one unit. It also offers various
services and consulting in line with progress in computeriza-

Number of Shareholders Managed under the
Stock Transfer Agency Business (except forOverseas Stocks)(Millions of person)
7.5
7.0

tion, the increase in M&A, the enforcement of the Companies
Act and the Law Concerning Book-Entry Transfer of Corporate

6.5

Bonds, etc., and other changes in the external environment.
Since the introduction of the Electronic Share Certificate
System in 2009, it has also acted as a special account manage-

0

March 2008

March 2009

March 2010

ment institution, handling various procedures concerning
stocks recorded in special accounts.

Real Estate Business
MHTB utilizes the extensive finance and asset transfer/inheri-

MHTB's Securitized Assets (Real Estate) under
Administration as Trustee(Trillions of ¥)6tance consultation functions that only trust banks can offer tohelp customers resolve their needs and problems effectively
and quickly through real estate brokerage and securitization,

5

4

appraisals, subdivision sales, and land trusts—all areas in which
it has compiled an impressive record over the years.

Pensions Business

0March 2008

March 2009

March 2010

MHTB offers the services and product packages needed for corporate pension schemes, which range from corporate pension
plan design and the management of pension policyholders andrecipients to asset investment and management. In response tocustomers' increasingly diversified and sophisticated needs, it

Retirement Benefit Funds under Administrationas Trustee(Pension trust + Solely operated designated money trust +Discretionary investment contract, Book value basis)(Trillions of ¥)also provides comprehensive consulting services in connection

20

with pension schemes in cooperation with the Mizuho Pension

19

Research, an institute to specialize in pensions.

18
17

Asset Management Business

16

Through its asset management business, MHTB offers fundswith various investment strategies to a wide range of customers, from public institutions that handle pensions management to corporate pension funds. Other services catering tocustomers' needs include advice pertaining to basic asset allocation and combinations of investment strategies that takepension liabilities into consideration through comprehensive
portfolio consulting services.

Asset Custody Services
MHTB provides highly specialized services in the area of asset
custody as one of its core businesses, and is engaged in

440March 2008

March 2009

March 2010

complicated, high-volume custodial services covering specified
money trusts (tokkin funds), pecuniary trusts other than money
trusts, and entrustment of securities trusts and investment trusts.

Investment Trust Balance(Trillions of ¥)13
12

Global Custody Business
To better satisfy the diversified needs of customers, MHTB has

11
10

created a global custody business network through tie-ups with
TCSB, and its own overseas subsidiaries, Mizuho Trust & Banking(USA) and Mizuho Trust & Banking (Luxembourg).

0March 2008

March 2009

March 2010

Mizuho’s Trust Bank Specializing in Asset Administration
In collaboration with the group companies of Mizuho, TCSB has worked to expand its transactions with customers among
financial institutions and institutional investors. As a result, the balance of assets under management reached ¥332 trillion
as of the end of March 2010. As a trust bank specializing in asset administration, it will continue to provide high-quality,
high-value-added trust, and custody services that match the needs of its customers.

Mizuho’s Asset Management Performance Rated Highly
Mizuho's asset management companies have earned an
excellent reputation among investment trust evaluation
organizations for their investment expertise and unique product characteristics.
By offering investment products that make the most of theAward-Winning
Mizuho Asset Management
Lipper Fund Awards Japan 2010
Best FundDIAM

expertise of each company, they will continue to satisfy customers' asset management needs.

Morning Star Fund of the Year 2009
Excellent Fund
Lipper Fund Awards Japan 2010
Best Fund

Full-Fledged Wealth Management Services
Mizuho offers the best solutions to individual customers' diversified needs.
MHPW is providing ultra-high-net-worth customers* with comprehensive, integrative, and continued services similar to
those available in the United States and Europe to the extent permitted under Japanese laws and regulations.
Based on the concept of “providing customers with the best around the globe,” it will continue to offer products andservices of the highest level.
With regard to non-financial services, it will provide premium services to meet customers' diversified needs in collaboration with prestigious companies, as well as high-quality solutions in connection with areas such as philanthropy andconcierge services.
*Customers who have entrusted Mizuho with extremely large amounts of investment assets.

45

Initiatives to Strengthen Collaboration among Group Companies

In order to provide the best possible financial services, three global groups organized based on customers' needs areleveraging their respective strengths while working together.

Promoting Cooperation among Group Companies• MHBK and MHTB collaborate in helping customers with wealth building and passing on
assets to the next generation

MHBK

MHCB

As an agent for MHTB, MHBK offers testamentary
trust, asset management trust, and other trust banking services at its head office and all its branches.

MHIS

MHTB

MHSC

With regard to consulting business using the realestate business and trust functions that it cannot handle as a trust agent, MHBK is able to respond to customers' asset management and asset inheritanceneeds by introducing MHTB to customers after obtain-

We aim to become the most approachable
consultant on asset management in order tohelp individual customers create a better
future for themselves

ing their prior agreement.

Mizuho aims to become the most approachable con-specializing in consultation and offering asset

sultant for individual customers and is collaborating

management, inheritances, real estate, andwith group companies to provide the best possible

unique trust services.

products and services while developing joint branches

MHTB “Trust Lounges”
MHTB is increasing the number of Trust Lounges

MHTB has adopted a policy of establishingthat offer outstanding convenience.

Trust Lounges jointly with MHBK, MHIS, and• Customers may use securities company services in

Mizuho Trust Realty Company with a view tothe lobbies of certain MHBK branches

responding to customers' needs for one-stop

MHBK is establishing Planet Booths, which are con-banking, trust, and securities services.

sulting booths of MHIS, in the lobbies of some of its
branches for customers who wish to engage in securi-of its branches throughout Japan to enable customers

The entire group works together to support
further growth among customers in the SME
and middle-market corporation sectors

to make use of this convenient service when they visit.

Mizuho channels group financial functions into provid-

ties transactions.
It has now installed Planet Booths in over one-third

ing solutions to customers' management issues andsupporting their further growth.

• Utilizing Mizuho's overseas network to provide
back-up for customers' global strategies
MHBK draws on Mizuho's overseas network and allround financial capabilities to provide powerful support
for customers expanding their overseas businesses and
The opening ceremony of the joint branch at MHBK's Gaienmae Branch

for the practical side of promoting overseas projects.
Its specialist staff also respond proactively to a wide
range of needs associated with overseas business,from managing funds at overseas subsidiaries to operational support for import and export transactions and46

foreign exchange risk mitigation.

• Providing diverse solutions in connection with
IPOs and post-listing management, MBOs, andstock-related matters

ture allowing their staff to hold posts concurrently inboth companies.

• Offering solutions that use trust functions

MHBK cooperates with MHIS, Mizuho Capital, MHTB,MHTB cooperates with MHCB in providing trust func-

and other group companies in resolving customers'

tions relating to asset securitization, the effective use

management issues, and supporting their growthof real estate, and pensions. By jointly developing

strategies by offering wide-ranging solutions in areas

advanced solutions such as J-ESOPs (Japanese-stylesuch as IPOs, stock transfer agency business, share-

employee stock ownership plan—trusts that use aholders' general meeting support, MBOs, and stock-company's stocks as a welfare service for employees)

related matters.

and security trusts, which manage security rights in

From January 2010, in some capital markets sections, MHBK and MHIS introduced a “double-hat”•

MHCB and MHSC introduced a “double-hat” struc-trusts, they offer high-quality consulting services.

• Offering solutions that use think-tank functions,structure allowing their staff to hold posts concurrent-

IT and financial technologies

ly in both companies.

Aiming primarily at the group customers of Mizuho,

Supporting company owners with their business

Mizuho Research Institute (MHRI) and Mizuho

and asset inheritance requirements

Information and Research Institute (MHIR) provide

MHBK has established a Consulting Division and, byservices on an ongoing, multifaceted basis. MHRI offers

strengthening collaboration with MHTB at its branch-

the research and consulting functions as an all-roundes, offers speedy responses that transcend the bound-

think tank. On the other hand, MHIR offers support

aries between corporate and individual customers inservices for customers' planning strategies, systems

the area of business and asset inheritance.

development, and operation with IT at its core.

MHBK and MHTB hold joint seminars and offer

Mizuho-DL Financial Technology offers corpora-high-quality consulting that draws on many years oftions and financial institutions risk control method-know-how and trust functions to help with businessologies that incorporate advanced financial technolo-

inheritance and effective utilization of real estate.

gies built up by Mizuho.

• Providing services to employees of corporate cusGroup companies work together to help raise
the corporate value of large and global corporations over the medium and long term

tomers (promoting occupation-based business)

MHCB, MHSC, MHTB, and other group companies areucts and services for individual customers to thestrengthening their cooperation to provide cutting-

employees of corporate customers of MHCB.

MHBK has established a Business Promotion Division
for Employees of Corporate Customers to offer prod-edge solutions that make use of the group's all-round
financial capabilities.

• Offering solutions that use securities functions
MHSC works together with MHCB to satisfy customers'
needs in such areas as equity and bond issuance, andM&A. MHCB leverages its FHC status in the UnitedStates to cooperate with MHSC's overseas subsidiary
in offering a full range of banking and securities services and is steadily compiling an excellent track record
in underwriting US corporate bonds and equities.
Given the revision of firewall regulations in Japan inJune 2009, in some business promotion sections,47

CSR Activities

As business activities expand in scope and markets become increasingly globalized, Mizuho is required to give greater
consideration to pro-social, pro-environmental initiatives.
Mizuho places CSR initiatives at the core of corporate activities for achieving coexistence and sustainable development
together with society, and promotes CSR activities while continuing an ongoing dialog with its stakeholders.
We shall therefore engage in independent, proactive corporate activities that not only offer quality, leading-edge financial products and services, but also take fully into account both our public mission as part of the economic and social
infrastructure, and our social responsibility to facilitate the flow of money and contribute to the healthy and sustainable
development of the economy and society in Japan and overseas.
For details, please refer to our CSR REPORT, which is available on MHFG's website.
http://www.mizuho-fg.co.jp/english/csr/report/list/2010.html

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

Support for Financial Education• Maintain trust and protect depositors.

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

whom society's future depends to enable them not onlyof the global economy by working to facilitate financing

to acquire financial awareness but also to cope with theand making responsible loans and investments.

issues they will face in their daily lives.

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

Enhance Corporate Governancethrough sound and appropriate management.

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

Environmental Initiatives

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

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

Highly Responsive Communications

global warming, etc. and reduce our own consumption• Realize responsive communications with stakeholders byof resources.

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

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

Practical Financial Education at Elementary and Secondary Schools
Mizuho employees also participate in lessons that use textbooks, glossaries and guideline for teachers developed
through joint research with Tokyo Gakugei University. In addition to proactively accepting workplace visits at thebranch level, we are working on PR and promotion activities in connection with our open lectures for teachers.

48

Environmental Initiatives through Financial Services
In addition to promoting greenhouse gas reductions throughout the group, Mizuho is working to strengthen its initiatives in these areas through its financial services.

• Finance for Environment-Related Businesses
MHBK has strengthened its Mizuho Eco-special loan product, which provides interest rate support for SME
customers who have adopted environmental programs.
MHCB is involved in financing wind and solar power generation and other environment-related projects,
and its loan balance amounted to ¥85.4 billion as of the end of March 2010.

• Environmentally Friendly Products and Services
MHBK offers financial products and services to support customers' initiatives for dealing with environmental
issues. These include business matching services for customers tackling environment-related management
issues, and making donations to natural environment protection organizations according to customers' usageof J-Debit card services.

• Reducing Greenhouse GasesFour group companies—MHBK, MHCB, MHTB and MHIR—are working on initiatives in the emissions tradingbusiness from various angles. MHBK is developing the Mizuho Eco-cycle for business aimed at large corporations, SMEs and middle-market corporations, and individuals. In conjunction with its efforts to promote
Japan's Clean Development Mechanism (CDM), MHBK is contributing to the reduction of domestic greenhouse gas emissions.

Multifaceted Barrier-Free
Initiatives

Development of Barrier-Free Facilities

MHBK is promoting multifaceted

Automatic entrance doors
Step-free design
Wider corridors
Guidance facilities for the visually impaired
Parking spaces for wheelchair users
Customer elevators*
Installation of wheelchair accessible elevators*
Customer toilets
Multifunction/wheelchair toilets
ATMs equipped for visually impaired users

barrier-free initiatives in the formof the Heartful Project to enableanyone to use its facilities andservices easily, regardless of age,gender or disability and it
received three awards during
fiscal 2009 as follows.

(Work completed at 430 manned branches as of March 31, 2010.)
418
385

428

404

368

425

362

417

175 176
186 186
126 127
299 299
178 178

0100
Number of branches with these facilities installed
Number of branches where these facilities are to be installed

416
200

300

428

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

November 2009

Received the “Second Barrier-free Town Planning Prize” from Kanagawa Prefecture

January 2010

Received the “Fiscal 2009 Barrier-free Town Planning Prize” from Hokkaido

February 2010

Received the “Fourth JFMA Prize Incentive Award” from the Japan Facility Management Promotion Association (JFMA)

Social Contribution Activities
Mizuho was recognized by the Japan Traffic Safety Association for contributing to the yellow Badge Traffic Safety
Campaign, which was conducted in cooperation with Sompo Japan Insurance, Meiji Yasuda Life Insurance and The
Dai-ichi Life Insurance. This campaign has continued for 46 years with the goal of preventing traffic accidents.

49

Brand Strategy

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

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

Brand Strength
EnterprisingOpen

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

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

serve our customers.

In other words, each of us should

We think creatively about our busi-

We listen sincerely to our customers

anticipate how society and customers

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

make a difference in our customers'

ness any time we have the chance.

duce the most advanced and unique

lives. We keep focused on our cus-

We want to be open all the time.

products and services to better serve

tomer needs and continuously strive to

our customers. Because of our innova-

help them achieve their dreams.

tive mindset, we help our customers

We act enterprising all the time.

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

50

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

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

Brand Slogan

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

51

Management Systems

Corporate GovernanceCorporate Governance Structure
MHFG believes that strengthening the management

Corporate Governance Policy

monitoring functions of the board of directors by inviting

We have been working to achieve a streamlined and nim-

outside directors and outside corporate auditors con-ble management structure while strengthening our cor-

tributes to the strengthening of its corporate governanceporate governance by inviting outside directors to join

and that this is appropriate for securing the confidence ofour board, etc. We will continue our efforts to enhanceshareholders, investors and others. Based on this belief,

the transparency and efficiency of our management

we utilize the following corporate governance structure.

through corporate governance, with strict observance of• Board Members and Board of Directors

all laws and regulations, pursuing our business activities

MHFG's board of directors, which consists of nine mem-in a fair and honest manner that does not conflict withbers, determines important matters pertaining to the man-the norms accepted by society.

agement policy of MHFG and its group companies andIn addition, we established the “Mizuho Code ofmonitors the business conduct of directors and executive

Conduct” which is a set of common values and ethicalofficers. Three of the directors are outside directors thatprinciples shared by the corporate officers and employees

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

of the group.

Their participation serves to strengthen the management
and monitoring functions of the board of directors.

Social Responsibility and Public Mission:matters of personnel decisions affecting the board ofsibilities and public mission as Japan's leading compre-

directors and directors' compensation, a Nomination

hensive financial services group. We therefore work to

Committee and a Compensation Committee made up of

ensure that we maintain close communication with thedirectors including outside directors have been estab-

communities in which we operate and pursue corporate

lished to advise the board of directors on these matters.

activities in a manner that is in harmony with societal• Corporate Auditors

expectations.

The Board of Corporate Auditors receives reports on

Placing Our “Customers First”:

important issues about audit matters, discusses them andWe place our customers first and always offer the best

makes decisions. Three of the five corporate auditors areservice possible. We believe that being trusted by ouroutside corporate auditors, and one of the three outside

customers is the basis for the trust by our shareholders,

corporate auditors is a financial expert who is a Japanese-

society and all other stakeholders.

qualified certified public accountant.

Strict Compliance with Laws, Regulations and

The Corporate Auditors audit the performance of theInternal Rules:

directors' duties and review our business performance

We are committed to strict observance of all laws andand financial condition by attending board meetings andregulations and pursuing our business in a fair and hon-other important meetings to receive reports on the busi-

est manner that does not conflict with the norms accept-

ness from directors and other corporate officers, inspect-

ed by society. As a global financial services group, we

ing important documents and receiving reports from thealso strive to respect the laws, customs and cultures ofInternal Audit Division, subsidiaries and accounting audi-

the foreign countries in which we operate.

tors, among others.

Respect for Human Rights:• Execution of Duties

We respect the human rights of our customers, corporate

MHFG introduced the executive officer system in order toofficers, employees and other individuals and strive toseparate managerial decision making and its implementa-

achieve a corporate culture that promotes human rights.

tion and to clarify levels of authority and responsibility.

Disavowal of Anti-Social Elements:

52

In order to ensure transparency and impartiality in

We are acutely conscious at all times of our social respon-In respect of the execution of duties, the President &We will firmly oppose the activities of any anti-social

CEO manages MHFG according to the fundamental man-elements that threaten the rule of law, public orderagement policies determined by the board of directors.

and safety.

The Executive Management Committee was establishedto serve as an advisory body for the President & CEO and

Disclosure Committee:

discusses important matters concerning the execution of

Discusses, coordinates and measures performance ofbusiness operations as necessary. Business Policy

basic disclosure policies and controls.

Committees were established to discuss cross-sectional

CSR Committee:

issues as necessary.

Discusses and coordinates matters concerning the status of CSR related initiatives, key matters to be<Business Policy Committees>

addressed, action plans and CSR reports.

Portfolio Management Committee:

Financing Facilitation Management Committee:

Discusses, coordinates and monitors basic portfolio

Discusses and coordinates basic financing facilitation

policies and their implementation.

management policies and matters concerning the pro-

ALM & Market Risk Management Committee:

motion of financing facilitation management related

Discusses, coordinates and measures performance ofinitiatives.

basic ALM policies, risk planning, fund procurement
and investment, and market risk control.

Five other committees have been established sepa-

Compliance Committee:

rately from the Business Policy Committees to deal with

With the participation of external experts (one lawyer

specific issues. These committees discuss, disseminate

and one certified public accountant (CPA)) as special

information and promote policies concerning operations

members, discusses and coordinates legal complianceunder their jurisdiction as necessary.

oversight, and matters related to antisocial elements
and the handling of accidents.

Business Continuity Management Committee:

Information Security Management Committee:

Discusses, disseminates information and promotes

Discusses and coordinates the promotion of policies onbasic Business Continuity Management policies.

information management, risk management pertaining

Human Rights Awareness and Promotion Committee:

to information security, compliance with the Law

Discusses, disseminates information and promotes

Concerning the Protection of Personal Information,

policies concerning human rights initiatives.

and rules and regulations concerning information
management.
MHFG's Corporate Governance Structure
General Meeting of Shareholders

Nomination Committee
Compensation Committee

Board of Directors

Includes outside directors

Outside Directors

Audit

Corporate Auditors
Board of Corporate Auditors
Outside Corporate Auditors

Supervision
Management
Executive Management
Committee

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

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

Internal Audit Group53

Management Systems

Committee to Encourage Employment of People
with Disabilities:

responsibility for internal audits.
The Internal Audit Division, Corporate Auditors andDiscusses, disseminates information and promotes

the accounting auditors exchange opinions and informa-

policies concerning the employment of handicappedtion on a regular basis and as necessary to strengthen

people and securing their role in the workplace.

cooperation so as to enhance effectiveness and efficiency

Social Contribution Committee:of the overall audit function.

Discusses, disseminates information and promotes* Principal banking subsidiaries and other core group companies:

policies concerning activities that contribute to society.

MHCB, MHBK, MHTB, MHSC, MHIS, TCSB, MHAM, DIAM, MHRI, MHIR,
MHFS, MHPW

Environmental Issues Committee:(As of June 22, 2010)

Discusses, disseminates information and promotes
policies concerning global environmental initiatives.

• Internal Audit Function and Others
The Internal Audit Committee fulfills an internal audit
function under the President & CEO. The committee disinternal audit on the basis of the basic policy determined

Profit Management System Based on Legally
Separate Subsidiaries in Accordance with
Customer Segmentation and Business Functions

by the board and reports all decisions made by the com-

We aim to reinforce our financial strength by vigorously

mittee to the board.

increasing profitability and cutting costs. Centered oncusses and determines important matters concerning

To ensure independence of the internal audit function

MHFG, we manage profits for the group based primarily

from the audited sections, we separate the Internal Audit

on our principal banking subsidiaries and other core

Group from the groups which it audits and establish it asgroup companies.

an independent group in its own right under the controlof the Internal Audit Committee.

More specifically, we have clarified the strategic positions of our principal banking subsidiaries and other core

External experts in their field (consisting at present ofgroup companies within the group on the basis of our

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

group business portfolio strategy and, having ensured

Committee to strengthen the specialist nature and impar-

their autonomy and independence while bringing themtiality of the committee.

closer together through the unifying force of MHFG, we

The internal audit infrastructure MHFG has establishedare seeking to maximize group corporate value.

is as follows: MHFG has set up an Internal Audit Division

Based on our principal banking subsidiaries and otherto carry out internal audits based on the basic audit poli-core group companies, MHFG is making efforts to opti-

cies and the internal audit regulations determined by themize its business portfolio through the following:board of directors. It also checks the internal control• formulating plans for gross profits, net businessstructure of the principal banking subsidiaries and otherprofits and net income, and carrying out perform-

core group companies* on the basis of the reports it

ance management,

receives from them of the results of internal audits and• allocating management resources such as invest-

problems and issues that have been investigated byments and expenses, personnel, risk capital and risk-

them. Thus, all information on the status of the principal

54

Profit Management Systemweighted assets, andbanking subsidiaries and other core group companies'• risk controls and profitability assessments based oninternal audits is held and controlled by MHFG's Internal

the allocation of risk capital drawn from equity capi-

Audit Division.

tal and other sources.

The results of both MHFG's and the principal banking

Further, our principal banking subsidiaries and certain

subsidiaries and other core group companies' internal

other core group companies establish their own profit

audits are reported to the Internal Audit Committee on aplans for and manage the performance of their respective

regular basis and at other times as necessary by the headcompany's business group/units based on the manage-of the Internal Audit Group who is the director withment policy, overall profit plans and resource allocations

drawn up by MHFG.

MHFG also manages profits for business segments

The above group companies have also introduced theallocation of risk capital among each company's businesscentered on three global groups, and publicly discloses
segment information by global group.

groups/units, which is one of the most important man-

(As of June 22, 2010)

agement frameworks of the group. Each group company
engages in business activities within the limits of that risk
capital and RAROC is then used as a performance index
to evaluate the return on allocated risk capital.

Human Resources System

Basically, the group companies have adopted a common profit management system and framework, but in
actual operations, each adopts a flexible, rapid-action

Vision for Human Resources: ROE on Human
Resources Investment

approach that is optimized for its individual business

The group and its employees have set a shared vision formodels.

human resources as follows:“We promote the ‘ROE’ principle for human resources

Glossary> RAROC (Risk Adjusted Return on Capital)

with a view to lasting value creation and creating an attrac-

RAROC is a measure of the profitability of allocated capital and is used as anindex for assessing capital efficiency. RAROC is calculated by dividing riskadjusted profits (profits adjusted to reflect statistically expected risk) by capital.

tive and fulfilling working environment for employees.”

Consolidated Profit Management

In this vision, “ROE” stands for the following:
ROE on Human Resources Investment

While each principal banking subsidiary or core group
Responsibility:

Observe the principles of
independent judgement andself-accountability.

Opportunity:

Provide equal opportunity.

Employability:

Develop expertise to enhancecompetitiveness.

company works to enhance its own profitability, we manage their profits on a consolidated basis as a means ofbuilding a balanced, optimized business portfolio for theentire group and improving capital efficiency.
Specifically, in addition to our principal banking subsidiaries and other core group companies, we formulate
profit plans and manage performance for the strategicallyimportant subsidiaries and include their profits with thoseof our principal banking subsidiaries and other coregroup companies.
Profit Management System

MHFG

Establishing a Corporate Culture Full of Vitality
We have established the following five values as the axisof the entire group's operational approach and behavior.

• Profit plans and performance management• Allocation of management resources• Risk controls and profitability assessments

These values, along with personnel evaluation, the 360degree employee performance evaluation* and others,
are being instilled in all employees of the group.
(1) Possessing a “customer-first” corporate objective.

MHCB, MHBK, and othercore group companies

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

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

Subsidiaries of the above group companies*Personnel evaluation scheme whereby personal evaluations of managers
involve subordinates and persons from other divisions with whom they
have close working relationships.

55

Management Systems

Optimizing the Uniqueness of Group
Companies and Synergies
Employees are employed by one of the group companies(MHFG, MHCB, MHBK, MHTB, MHSC, MHIR) with theaim of creating a group of specialists that can deliver
maximum innovativeness and speed.
At the same time, facilitated by the group's common
compensation system (group-wide common platform forhuman resources), we are able to maximize group synergy through cross-company personnel transfers to place
the right person in the right job.

Rejuvenating the Organization and Pursuing
Specialization
In January 2003, we launched an internal “job application system for branch general manager positions” toencourage the quick development and advancement ofyounger employees. As of May 31, 2010, we achieved adynamic rejuvenation of the organization by selecting 78
younger and mid-career applicants in their thirties andappointing them as branch general managers.
We also introduced a group-wide “job application system” and a “rookies' job request system“ for young
employees who have not experienced personnel transfers
to encourage employees to acquire greater specializationin which employees can apply for specific positions
throughout the group. We intend to strengthen thisscheme by expanding the number of positions available
for the “job application system.”Positive Action Initiatives
With the aims of invigorating our organization by proactively recruiting women, and of improving the morale offemale employees, we are taking joint measures in our
approach to positive action*.
*Initiatives that a company adopts proactively and autonomously in order toeliminate gender discrimination in recruitment and to promote the utilizationof women's capabilities to the fullest extent possible.

Note: Contents appearing in this section describe the group's human resources
system in Japan.
(As of June 22, 2010)56

Internal Control Systems

Compliance Structure

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

Basic Compliance Policy

Hotline, a system designed for obtaining concerns

As one of Japan's leading comprehensive financial

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

social responsibilities and public mission at all times. We

Other core group companies such as MHTB and MHSC

define compliance as “the strict observance of all laws

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

the characteristics of their respective businesses.

rate activities that conform to the norms accepted by

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

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

group companies maintains its own compliance structure

appropriate responses when necessary.

in line with the basic policies established by MHFG.

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

tored and managed by their respective parent.

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

Compliance Activities

tive company, and such chief executive officers also head

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

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

MHCB, MHBK, and othercore group companies

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

57

Internal Control Systems

behavior, and distributed it to all directors, senior management and employees of the group so that they are
well aware of its content and act accordingly.
Each of our group companies has also prepared acompliance manual, which serves as a practical guidebook for rigorous compliance enforcement and clarifies
the laws and regulations that the group companies mustobserve in pursuing their business activities and the compliance activities they are required to follow.
We conduct compliance training for directors, senior
management and employees so that they are fullyacquainted with the contents of the manual. We monitor the status of compliance levels through self assessments conducted by individual organizational units andmonitoring conducted by the compliance division ofManagement of customer protection refers to the
management required for achieving the following
from the perspective of improving the protection of
our customers and improving customer convenience.
1. Ensuring the adequacy and sufficiency of the
explanation of transactions, products etc. as wellas the provision of information (explanation of
products etc.) to customers regarding transactions and products.
2. Ensuring the adequacy and sufficiency of handling customer consultations and complaints(customer service).
3. Ensuring the adequacy of the management ofcustomer information (customer information
management).

each company.
Every fiscal year, each of our group companies establishes a compliance program, which contains concretemeasures for compliance enforcement such as measuresrelated to the management of the compliance framework, training and assessments. Progress regarding theimplementation of the compliance program is monitored

4. Ensuring the adequacy of managing customers
and customer information in the event that ouroperations are outsourced (management ofoutsourcing).
5. Ensuring the adequacy of the management ofconflicts of interest refers to the management of
the measures to be taken in order to appropriately

every six months.
(As of June 22, 2010)

address various situations of conflicts of interest
that have stemmed from transactions with customers (management of conflicts of interest).

Management of Customer Protection
Structure

Customer Protection Structure
Board of Directors

Basic Approach

Chief Executive Officer
(CEO)

MHFG
Executive
Management Committee

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

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

Customer information
management

Customer service
management

Conflicts of interest
management

Outsourcing
management

Overview of Management of Customer Protection
We define management of customer protection as

MHCB, MHBK, and othercore group companies

described below, clarifying the group management structure as well as management methods, and ensuring thateach company draws up customer protection management regulations.

58

Subsidiaries of the above group companies

In addition to designating the compliance department

measures to ensure the confidentiality, integrity andas the customer protection general management depart-

availability of our informational assets, and responding toment, each company establishes its own management

requests for disclosure from “data subjects” (the people

structure by stipulating which departments are in charge

to whom specific information pertains) concerning per-of management of explanation of products etc., man-sonal information.

agement of customer service, management of customer
information and management of outsourcing, management of conflicts of interest (hereinafter customer man-

Overview of the Information Security
Management Systemagement tasks).

We have clarified the group management system as well

The chief executive officer of MHFG appoints officers

as management methods for information security man-responsible for the general management of customer

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

protection in order to promote appropriate management

lations concerning information security management. Weof customer protection. The Compliance and Legalare also building an information security management

Affairs Division is in charge of general management andsystem, stipulating that the compliance departments ofmonitor management of each customer management

the individual companies are to act as information secu-

task. The department responsible for each customer

rity management departments.

management task draws up and implement proposals

The chief executive officer of MHFG appoints a chief

concerning the management tasks under their jurisdic-

information security officer who supervises planning, pro-tion. MHFG also provides centralized monitoring andposals and implementation in connection with overallmanagement of customer protection management at thegroup information security management, and the infor-

principal banking subsidiaries and other core group com-mation security management committee handles discus-

panies. The principal banking subsidiaries and other core

sions and coordination of cross-divisional issues relatinggroup companies also manage customer protection man-to overall group information security management. In

agement at their own group companies.

addition, the Information Security Management Office(As of June 22, 2010)

has been established within the Compliance and Legal
Affairs Division to specialize in information security management and provide centralized monitoring and control

Information Security Management
SystemInformation Security Management System
Board of Directors

Basic Approach
As the advanced information-telecommunication society

Chief Executive Officer(CEO)a company becomes a social responsibility, while appro-

Executive
Management Committee
Information Security
Management Committee

evolves and use of information increases exponentially,
appropriate protection of the informational assets held by

MHFG

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

priate usage of the same assets becomes the foundationof the company's competitiveness. As a provider of comprehensive financial services in Japan and abroad, weEvery organizational unit
Information
Security Officer

Head of each unit

believe that appropriate protection and use of informational resources are extremely important issues.
We are striving to strengthen our information security

MHCB, MHBK, and othercore group companies

management system, defining information security management as all acts associated with the appropriate protection and use of group informational assets. This

Subsidiaries of the above group companies

includes adopting information security management

59Internal Control Systemsof the information security management situation at our
principal banking subsidiaries and other core group com-

Strengthening Disclosure Controls andProcedures

panies. The information security management situation at
subsidiaries of our principal banking subsidiaries and other

Basic Principles

core group companies is monitored and managed by our

We aim to win the highest regard of our shareholders

principal banking subsidiaries and other core group com-and the market and to earn the trust of society as Japan's

panies themselves. In every organizational unit, the headleading comprehensive financial services group. For thisof each unit is also responsible for information security

reason, we place one of the highest management priori-

management, and an information security managementties on continuing to disclose information to our cus-

officer is appointed to check on how information is han-tomers, shareholders, and investors both in and outside

dled and ensure that personnel are fully aware of andJapan in a fair, timely and appropriate manner, in orderwell trained in safety management measures.

that they may form proper judgments and appraisals of

Based on this information security management sys-

the group. To achieve this aim, we observe applicabletem, we have drawn up and published the Privacy Policy

domestic and international laws and regulations as well

Regarding Customer Information* that complies withas stock exchange rules relating to corporate disclosure,Japan's Law Concerning the Protection of Personal

and we establish and implement appropriate Disclosure

Information. We are also building a system to deal with

Controls and Procedures.

requests for disclosure, and strengthening our safety

Outline of Disclosure Controls and Procedures

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

• Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws

MHFG obtained certifications for the Information

and regulations as well as stock exchange rules and to

Security Management Systems of all divisions of the com-

implement fair, timely and appropriate corporate disclo-pany under both the Conformity Assessment Scheme,

sure. The Disclosure Controls and Procedures are the“ISO/IEC27001: 2005,” the international standard, andprocess carried out by directors, officers and employees“JIS Q 27001: 2006,” the domestic standard. MHBK alsoof our group and include internal controls designed toobtained the same certifications for its “Planning, promo-

provide reasonable assurance regarding the reliability oftion and sales supporting divisions of financial products

financial reporting and the preparation of financial state-and services for individuals, corporate and public sector

ments. We have established the basic principles underly-

customers” of the head office.

ing our Disclosure Controls and Procedures as well as our

We are striving to strengthen our information manage-internal rules related to Disclosure Controls andment procedures by promoting efforts to obtain a broader

Procedures that govern the management framework forrange of credentials. This includes encouraging our princi-

the entire group including group companies, and wepal banking subsidiaries and other core group companies

endeavor to establish, implement and continuously

to acquire certification in specific operational sectors.

improve our Disclosure Controls and Procedures. Our dis-

(As of June 22, 2010)

closure committee is the principal management body thatis responsible for discussing and exploring matters relating to Disclosure Controls and Procedures.

• Evaluation of Effectiveness of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly
by reviewing the contents of such documentation and60their implementation. In addition, evaluation of the effec-

Risk Management Structure

tiveness and appropriateness of Disclosure Controls andCommitment to Risk Management

Procedures is conducted through internal audits.

•

Others

We established a “Code of Ethics for Financial Profession-

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

Progress in financial deregulation and internationalization

as well as all managers and other employees within our

has led to growth in the diversity and complexity of bank-group who engage in financial reporting, accounting or

ing operations, exposing financial institutions to various

disclosure. We have also developed the “Internalrisks, including credit, market operations, information

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

obtaining concerns regarding questionable accounting or

nize the conducting of operations tailored to the risks

auditing matters from both inside and outside the groupand managing such risks as a key issue relating to overall(Please refer to page 57).

management. In order to implement our business strat-

Moreover, we established “Disclosure Policy” which

egy while maintaining our financial stability, we maintain

includes basic principles regarding disclosure and frame-

comprehensive risk management and control measures.

work of disclosure controls and procedures, andMHFG maintains basic policies for risk management

announce on our website as well as this annual review.

established by its board of directors that are applicable tothe entire group. These policies clearly define the kinds ofDisclosure Controls and Procedures Systemrisks to be managed, set forth the organizational struc-

MHFG

Board of Directors

ture and provide for the human resources training necessary for appropriate levels of risk management. The

Chief Executive Officer(CEO)

Disclosure Committee

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

Chief Financial Officer(in charge of Disclosure Controls and Procedures)and Other Heads of Groups

line with these basic policies, we maintain various measures to strengthen and enhance the sophistication of ourEvery organizational unit

risk management system.

Disclosure Control
Officer

Head of each unit

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

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

receives reports and applications concerning the risk management situation from our principal banking subsidiaries(As of June 22, 2010)

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

MHFG
Report therisk management situation.

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

Give instructions
concerning
risk management.

Report the risk
management situation.

Subsidiaries
managed by theprincipal banking
subsidiaries andother core groupcompanies

61

Internal Control Systems

and other core group companies and gives them appro-

General Concept of Risk Management

priate instructions concerning risk management. Our
principal banking subsidiaries and other core group com-

Basic Approach

panies each maintains its own system for managing vari-

We classify our risk exposures according to the various

ous types of risk, regularly receiving reports on the status

kinds of risk, including credit risk, market risk, liquidityof risk at their respective subsidiaries, and gives themrisk and operational risk, and manage each type of risk

appropriate instructions concerning risk management.

according to its characteristics. In addition to managing
each type of risk individually, we have established a risk

Approach to Basel II

management structure to identify and evaluate overall

The BIS Regulations, the regulations for internationalrisk and, where necessary, to devise appropriate respons-

standards of the health of banks first implemented

es to keep risk within limits that are managerially accept-

in 1992, have been revised in light of developments

able in both qualitative and quantitative terms. In line

in risk management methods in order to betterwith the basic policies relating to overall risk manage-reflect the actual substance of the risks. These

ment laid down by MHFG, companies within the groupamended regulations, known as “Basel II,” focus on

identify risk broadly and take a proactive and sophisticat-

three main points. The first is minimum capital

ed approach to risk management, including methodolo-

requirements relating to risk which should be main-

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

tion method for credit risk was changed andoperational risk was added. The second includes a

Risk Capital Allocation

supervisory review process with respect to assess-We endeavor to obtain a clear grasp of the group's over-ment of risks that cannot be fully addressed throughall risk exposure and have implemented measures to keep

minimum capital requirements alone. The third issuch risks within the group's financial base in accordancemarket discipline allowing for assessment by thewith the risk capital allocation framework. More specifi-

market through appropriate disclosure. We havecally, we allocate risk capital to our principal banking sub-obtained the necessary approvals from government

sidiaries, including their respective subsidiaries, and otherauthorities on calculation methods for each type ofcore group companies to control risk within the limits set

risk and have been calculating capital adequacy

for each company. We also control risk within manageri-

ratios based on Basel II from March 31, 2007, whenally acceptable limits by working to ensure that the over-the Basel II was implemented in Japan. With regard

all risk we hold on a consolidated basis does not exceed

to credit risk, we have been applying the Advanced

shareholders' equity and other measures of financial

Internal Ratings-Based Approach, the most sophisti-

strength. To ensure the ongoing financial health ofcated of the three methods provided for by Basel II,

MHFG, our principal banking subsidiaries and other corefrom March 31, 2009. In addition, we have beengroup companies, we regularly monitor the manner inapplying the Advanced Measurement Approach forwhich risk capital is being used in order to obtain athe calculation of operational risk from September

proper grasp of the risk profile within this framework.

30, 2009.

Reports are also submitted to the board of directors andGlossary

other committees of each company. Risk capital is allo-> Advanced Internal Ratings Based (AIRB) Approachcated to MHCB, MHBK, MHTB and MHSC by risk cate-

AIRB is one of the calculation methods for credit risk assets provided forby 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 Approaches (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 from internal losses experienced by
the company, but also utilizes scenario data to calculate the impact of
events that may be experienced in the future.

62

gory, and is further allocated within their respective
business units based on established frameworks.

Allocation of Risk Capital(Example)
MHCB

MHFG

MHCB

Capital account, etc.

Principal
banking
subsidiaries
and othercore groupcompanies'
risk exposure*

MHBK
MHTB

Allocated risk capital

The group's risk
exposure

The group's financial
strength

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

Credit risk
Market risk

Allocation toeach business unit

Equity risk
Operational riskGroupcompanies, etc.

MHSC

Other risk exposure*Including risk exposures of the subsidiaries of the core group companies.

Credit Risk Management

MHBK
MHTB
MHSC

the portfolio management committee of MHFG discusses
and coordinates basic policies in connection with credit

Basic Approachrisk management and matters in connection with overall

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

credit portfolio management and credit risk monitoringof losses that may be incurred due to a decline in, or total

for the group. Under the control of the chief risk officer

loss of, the value of assets (including off-balance-sheetof MHFG, the Risk Management Division and the Credit

instruments), as a result of deterioration in a obligors'

Risk Management Division jointly monitor, analyze andfinancial position. We have established the methods andsubmit suggestions concerning credit risk and formulate

structures necessary for grasping and managing credit

and execute plans in connection with basic matters per-risk, which has become increasingly complex due totaining to credit risk management.

financial deregulation, internationalization and the grow-• Credit Risk Management at Our Principal Banking

ing sophistication of transactions. MHFG manages credit

Subsidiaries and Other Core Group Companies

risk for the group as a whole. More specifically, we have

Our principal banking subsidiaries and other core group

adopted two different but mutually complementarycompanies manage their credit risk according to the scale

approaches in credit risk management. The first approachand nature of their exposures in line with basic policies set

is “credit management,” in which we manage theforth by MHFG. The board of directors of each company

process for each individual transaction and individual

determines key matters pertaining to credit risk manage-

obligor from execution until collection, based on ourment. Their respective business policy committees areassessment of the credit quality of the customer. Throughresponsible for discussing and coordinating overall man-this process, we curb losses in the case of a credit event.

agement of their individual credit portfolios and transac-

The second is “credit portfolio management,” in whichtion policies towards obligors. The chief risk officer of

we utilize statistical methods to assess the potential foreach principal banking subsidiary and core group com-losses related to credit risk. Through this process, wepany is responsible for matters relating to planning andidentify credit risk and respond appropriately.

implementing credit risk management. The credit risk
management division of each principal banking subsidiary

Credit Risk Management Structure

is responsible for planning and administering credit risk

• Credit Risk Management of MHFG

management and conducting credit risk measuring andOur board of directors determines the group's key mat-monitoring, and such division regularly presents reports

ters pertaining to credit risk management. In addition,

regarding its risk management situation to MHFG. Each

63

Internal Control Systems• Credit Codes

Credit Risk Management Structure

The basic code of conduct for all of our officers and

MHFG

Board of Directors

Executive Management
Committee

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

Portfolio Management
Committee

employees engaged in the credit business is set forth inour credit code. Seeking to fulfill the bank's public andsocial role, our basic policy for credit business is determined in light of fundamental principles focusing on public welfare, safety, growth and profitability.

Risk Management Division, Credit Risk Management Division• Internal Rating System
One of the most important elements of the risk manage-•Set risk management policies•Give instructions concerning
risk management

ment infrastructure of our principal banking subsidiaries•Report the risk
management situationis the use of an internal rating system that consists ofcredit ratings and pool allocations. Credit ratings consist

Principal banking subsidiaries andother core group companies
MHCB

MHBK

MHTB

MHSC

Other coregroup
companiesof obligor ratings which represent the level of credit riskof the obligor, and transaction ratings which represent
the possibility of ultimately incurring losses related toeach individual claim by taking into consideration the

Principal Banking
Subsidiaries

Board of Directors

Chief Executive Officer
Senior executive officers
responsible for risk management

Executive Management
Committee
Business Policy Committees

nature of any collateral or guarantee and the seniority of
the claim. In principle, obligor ratings apply to all obligors
and are subject to regular reviews at least once a year toreflect promptly the fiscal period end financial results of
the obligors, as well as special reviews as required whenever the obligor's credit standing changes. This enables

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

our principal banking subsidiaries to monitor both individual obligors and the status of the overall portfolio in atimely fashion. Because we consider obligor ratings to becredit division determines policies and approves/disapproves

an initial phase of the self-assessment process regarding

individual transactions in terms of credit review, credit

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

management and collection from customers in accor-

ments, such obligor ratings are closely linked to the oblig-

dance with the lines of authority set forth by each princi-or classifications and are an integral part of the process

pal banking subsidiary. In addition, from the standpoint offor determining the reserves for loan losses and write-offs

internal controls, each of our principal banking sub-in our self-assessment of loans and off-balance-sheet

sidiaries has established internal audit divisions that are

instruments (Please refer to Connection between Obligor

independent of the business divisions in order to ensure

Ratings, Definition of Obligor Classifications of Self-

appropriate credit risk management.

Assessments, Claims Disclosed under the FRL and Non-

• Individual Credit Management

Accrual, Past Due & Restructured Loans).

Our principal banking subsidiaries use a unified credit rat-

Pool allocations are applied to small claims that are

ing system and credit risk measurement tools to ascertain

less than a specified amount by pooling customers andand monitor the status of their portfolios. They are also

claims with similar risk characteristics and assessing andimproving their credit decisions and post- transaction

managing the risk for each such pool. We efficiently

management functions by examining individual transac-

manage credit risk and credit screening by dispersing ations from these viewpoints, providing internal audits andsufficient number of small claims within each pool. We

risk management guidance to individual business promo-

generally review the appropriateness and effectiveness oftion offices. MHSC and other core group companies fol-

our approach to obligor ratings and pool allocations once

low credit risk management procedures that suit thea year in accordance with predetermined procedures.

characteristics of their respective business sectors.

64Connection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments,
Claims Disclosed under the FRL and Non-Accrual, Past Due & Restructured Loans
Definition of Obligor
Obligor Classifi- Ratings
cations of Self- (Major
Assessment Category)Definition of Ratings

Category I(NonCategorized)

Category II

Category III

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

Obligors whose certainty of debt fulfillment

A1–A3 is very high, hence their level of credit risk is
excellent.

NormalObligors

Obligors whose certainty of debt fulfillment poses
B1–B2 no problems for the foreseeable future, hence
All credit given
their level of credit risk is sufficient.
to Normal
Obligors whose certainty of debt fulfillment Obligors.
C1–C3 and their level of credit risk pose no problems for the foreseeable future.

NormalClaimsObligors whose current certainty of debt fulfill-

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

E1
Watch
Obligors

E2 R

Intensive
Control
Obligors

F1

Substantially
Bankrupt
Obligors

G1

Bankrupt
Obligors

H1

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

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

Claims forSpecialAttention

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

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

Method for Reserves and Write-Offs
Normal Obligors

Calculate the value of estimated loss based on the probability of failure over the coming year for loans by obligor rating and appropriate it for
the General Reserve for Possible Losses on Loans.

Watch Obligors

Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the General Reserve
for Possible Losses on Loans. Further, in regard to Special Attention Obligors, for obligors with large claims more than a certain amount, if the
cash flow from the return of principal and interest payments can reasonably be estimated, set up a reserve under the DCF method.

Intensive Control
Obligors

Substantially
Bankrupt Obligors
Bankrupt Obligors

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

• Self-Assessment, Reserves, Off-Balance-Sheet
Instruments and Write-Offs

process of self-assessment, obligors are categorized into
certain groups taking into consideration their financial

We conduct self-assessment of assets to ascertain thecondition and their ability to make payments, and credit

status of assets both as an integral part of credit risk

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

management and in preparation for appropriate account-the extent of their credit risks. The related assets are thening treatment, including reserves for loan losses and off-

categorized into certain classes based on the risk ofbalance-sheet instruments and write-offs. During theimpairment. This process allows us to identify and control

65

Internal Control Systems

the actual quality of assets and determine the appropriate
accounting treatment, including reserves for loan losses

Loss Distribution
Frequency

and off-balance-sheet instruments and write-offs.
AverageSpecifically, the credit risk management division of eachof our principal subsidiaries is responsible for the overall
control of the self-assessment of assets of the respective

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

banking subsidiaries, cooperating with the administrative
divisions specified for each type of asset, including loan
portfolios and securities, in executing and managing

Loss Amountself-assessments.

• Credit Review
Prevention of new non-performing loans through routine

Credit VaR
Expected
Loss

Unexpected Loss

credit management is important in maintaining the qual-

66

ity of our overall loan assets. Credit review involve analy-

Portfolio Management

sis and screening of each potential transaction within the• Risk Measurement

relevant business division. In case the screening exceeds

We use statistical methods to manage the possibility of

the authority of the division, the credit division at head-losses by measuring the expected average loss for a one-quarters carries out the review. The credit division has

year risk horizon (“Expected Loss”), the maximum loss

specialist departments for different industries, businesswithin a certain confidence interval (“credit Value-at-Risksizes and regions, carries out timely and specialized(VaR)”). The difference between expected loss and credit

examinations based on the characteristics of the cus-

VaR is measured as the credit risk amount (“Unexpected

tomer and its market, and provides appropriate advice toLoss”).

the business division. In addition, in the case of obligors

In establishing transaction spread guidelines for credit

with low obligor ratings and high downside risks, thetransactions, we aim to ensure an appropriate return frombusiness division and credit division jointly clarify their

the transaction in light of the level of risk by utilizing

credit policy and in appropriate cases assist obligors at an

credit cost data as a reference. Also, we monitor our

early stage in working towards credit soundness.

credit portfolio from various perspectives and set certain•

Collection and Disposal of Non-Performing Loanslimits so that losses incurred through a hypothetical real-With respect to collection and disposal of non-performing

ization of the full credit VaR would be within the amountloans, our specialist unit maintains central control andof risk capital and loan loss reserves.

pursues corporate restructuring or collection efforts, as• Risk Control Methods

appropriate, toward taking the non-performing loans off-

We recognize two types of risk arising from allowing toobalance. Specifically, we believe that supporting thelarge a proportion of overall credit risk to be allocated in

restructuring efforts of corporations is an important rolecertain areas. One type is “credit concentration risk,” which

for financial institutions, and we support corporations

stems from granting excessive credit to certain individual

undergoing restructuring by reviewing business plans,counterparties. The other type is “chain-reaction default

advising on revitalization methods and utilizing corporate

risk,” which arises from granting excessive credit to certain

restructuring schemes such as divestitures and mergers

corporate groups, industrial sectors and other groupings.

and acquisitions, taking advantage of our group-wide

We make appropriate management to control these risks

resources. These efforts have been steadily producing sat-in line with our specific guidelines for each. The individual

isfactory results. In addition, we work on final disposal ofrisk management divisions of our principal banking sub-non-performing loans efficiently and swiftly by conduct-sidiaries are responsible for monitoring adherence toing bulk sales and by utilizing Mizuho Servicing, our sub-these guidelines and reporting to their respective busi-

sidiary that specializes in performing debt collection

ness policy committees. (Please refer to Allocation of Risk

services for our group companies.

Capital and Control of Credit Risk.)

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital
Credit concentration risk

Chain reaction default risk

1 Individual company ratings-based

credit guidelines

MHCB: Sets 1 , 2 , 3 , 4
MHBK: Sets 1 , 2 , 4
MHTB: Sets 1 , 2 , 4Control

2 Corporate group-based credit guidelines
3 Geographical area/country-based

credit guidelines
4 Industrial sector-based credit guidelines

Equivalent to credit concentration risk amounts

Equivalent to chain reaction default risk amounts• Portfolios of Our Principal Banking Subsidiaries

sales of assets. While closely monitoring the potential for

and Certain Other Core Group Companies

unexpected losses, they also aim to raise overall group

While MHCB's credit portfolio consists primarily of loans

capital efficiency, boost profitability and shareholder

to Japanese public companies and other major Japanesevalue, and enhance the sophistication of their credit riskenterprises, it also includes a significant proportion ofmanagement.

loans to overseas corporations, including foreign subsidiaries of Japanese corporations that are diversified inMarket and Liquidity Risk Management

terms of the regions in which the borrowers are located.
MHBK's portfolio is diversified among relatively small

Basic Approachaccounts centered on individuals, domestic corporations

We define market risk as the risk of losses incurred by the

including mainly small and medium-sized enterprises andgroup due to fluctuations in interest rates, stock prices

middle-market corporations, public sector entities andand foreign exchange rates. Our definition includes theother customers in Japan. While retaining the principal

risk of losses incurred when it becomes impossible to exe-features of each of the two banking subsidiaries' respec-

cute transactions in the market because of market confu-

tive portfolios, we aim to reduce expected losses whilesion or losses arising from transactions at prices that are

simultaneously utilizing sophisticated financial tools

significantly less favorable than usual. We define liquidity

based on which they make strategic acquisitions andrisk as the risk of losses arising from funding difficulties
due to a deterioration in our financial position that makes

MHCB's Credit Portfolio

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

Otherto raise funds at significantly higher interest rates thanAsia

usual. MHFG manages market and liquidity risk for theEurope

Japan

North
Americagroup as a whole.

Market Risk Management Structure• Market Risk Management of MHFG
Our board of directors determines key matters pertaining
to market risk management policies. The ALM & market

MHBK's Credit Portfolio
Publicsector entities

risk management committee of MHFG broadly discusses
and coordinates matters relating to basic asset and liability

Other
Domestic SMEs
and middle-market
corporations

Individuals

management policies, risk planning and market risk management and proposes responses to emergencies such assudden market changes. The chief risk officer of MHFG is
responsible for matters relating to market risk management planning and operations.
The Risk Management Division of MHFG is responsi-(At March 31, 2010)

ble for monitoring market risk, reports and analyses,

67Internal Control Systems

proposals, setting limits and guidelines, and formulating

for VaR and for losses. For banking activities, we set posi-

and implementing plans relating to market risk manage-

tion limits based on interest rate sensitivity as needed.

ment. The Risk Management Division assesses and man-

These limits are discussed and coordinated by the ALM

ages the overall market risk of the group. It also receives& market risk management committee, discussed further

reports from our principal banking subsidiaries and otherby the executive management committee, then deter-

core group companies on their market risk management

mined by the chief executive officer. Various factors arethat enable it to obtain a solid grasp of the risk situation,

taken into account including business strategies, historicalsubmitting reports to the chief executive officer on a daily

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

basis and to our board of directors and the executive

tal and risk management systems), profit targets and the

management committee of MHFG on a regular basis.

market liquidity of the products involved.

To manage market risk, we set limits that correspond• Market Risk Management at Our Principal

to risk capital allocations according to the risk profiles ofBanking Subsidiaries and Other Core Groupour principal banking subsidiaries and other core group

Companies

companies and thereby prevent market risk from exceed-

Our principal banking subsidiaries and MHSC which

ing our ability to withstand losses based on our financial

account for most of the group's exposure to market risk

strength represented by capital, etc. The amount of risk

have formulated their basic policies in line with the basic

capital allocated to market risk corresponds to VaR andpolicies determined by MHFG. Their boards of directors

additional costs that may arise in order to close relevant

determine important matters relating to market risk

positions. For trading and banking activities, we set limits

management while their chief executive officers are
responsible for controlling market risk. Their respective

Market and Liquidity Risk Management Structure

MHFG

Board of Directors

business policy committees, including their ALM & market
risk management committees, are responsible for overall
discussion and coordination of market risk management.

Chief Executive Officer(CEO)

Executive Management
Committee
ALM & Market Risk
Management Committee

Head of Risk Management
Group (CRO)Specifically, these committees discuss and coordinate matters relating to basic asset and liability management policies, risk planning and market risk management andpropose responses to emergencies such as sudden market
changes. The chief risk officer of each subsidiary is respon-

Risk Management Divisionsible for matters pertaining to planning and implementing•Set risk management policies•Approve limits•Give instructions concerning
risk management•Report the risk
management situation•Apply for limits

MHBK

capital allocation framework, the above-mentioned companies manage market risk by setting limits according to

Principal banking subsidiaries andother core group companies
MHCB

market risk management. Based on a common group risk

MHTB

MHSC

Other
core groupcompanies

the risk capital allocated to market risk by MHFG.
These companies have established specialized companywide market risk management divisions to provide integrated monitoring of market risk, submit reports, analyses
and proposals, set limits and formulate and implement

Board of Directors

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

Principal banking
subsidiaries and othercore group companies

plans relating to market risk management. The risk man-

Executive Management Committee

status of market risk management to their respective chief

ALM & Market Risk
Management Committee

executive officers and top management on a daily basis,

Offices
Risk Management Division

Middle Offices
Front Offices

agement divisions of each company submit reports on theand to their board of directors and executive management
committee on a regular basis. They also provide regular
reports to MHFG. To provide a system of mutual checks
and balances in market operations, they have establishedmiddle offices specializing in risk management that are68independent of their front offices, which engage in mar-executives of the asset and liability management andket transactions, and their back offices, which are

trading units are responsible for matters pertaining to

responsible for book entries and settlements. When VaR isplanning and conducting cash flow management.

not adequate to control risk, the middle offices manage

The methodologies used for ensuring precise control ofrisk using additional risk indices, carry out stress tests andliquidity risk include the formulation of management

set stop loss limits as needed. They monitor their market

indices pertaining to cash flow, such as limits on funds

liquidity risk for individual financial products in the market

raised in the market. As with MHFG, the above-mentioned

while taking turnover and other factors into consideration.

companies have established classifications for the cash
flow affecting them, ranging from “normal” to “cause for

Liquidity Risk Management Structure

concern” and “critical,” and have established procedures• Liquidity Risk Management of MHFG

for cases which are deemed to fall into the “cause for

Our liquidity risk management structure is generally theconcern” or “critical” categories.

same as the market risk management structure described

Each subsidiary has adopted stringent controls that callabove. However, the head of the Financial Control &for the submission of reports on liquidity risk management

Accounting Group of MHFG is additionally responsible forand cash flow management to the ALM & market risk

matters relating to planning and running cash flow man-

management committee and other business policy com-agement operations, while the Financial Planning Division

mittees, the executive management committee and theis responsible for monitoring and adjusting the cash flow

chief executive officer of each subsidiary.

management situation and for planning and implementing
cash flow management. Reports on the cash flow situa-

Status of MHFG's Market Risktion are submitted to the ALM & market risk management• Back Testingcommittee, the executive management committee andIn order to evaluate the effectiveness of market risk

the chief executive officer.

measurements calculated using the value-at-risk method,

We measure liquidity risk using indices pertaining to

we carry out regular back tests to compare value-at-risk

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

with assumptive profits and losses. Assumptive profits

Limits on liquidity risk are discussed and coordinated byand losses accounts for general market risk. The graph

the ALM & market risk management committee, discussed

below shows daily value-at-risk of trading activities forfurther by the executive management committee andthe fiscal year ended March 31, 2010, and the correspon-

determined by the chief executive officer. We have estab-ding paired distribution of profits and losses:

lished classifications for the cash flow conditions affecting
the group, ranging from “normal” to “cause for concern”
and “critical,” and have established procedures for dealing
with cases which are deemed to fall into the “cause forconcern” or “critical” categories. In addition, we have constructed a system under which we will be able to respondsmoothly in the event of emergency situations that affectour funding by establishing action plans.

• Liquidity Risk Management at Our Principal

Fiscal 2009 Back Testing
Assumptive profit or loss (billions of yen)
5.0
4.0
3.0
2.0
1.0
0
(1.0)
(2.0)
(3.0)
(4.0)
(5.0)
0

1.0

2.0

Banking Subsidiaries and Other Core Group

3.0

4.0

5.0

VaR (billions of yen)Companies
The liquidity risk management structures of MHCB,

We had no case where profits/losses exceeded value-

MHBK, MHTB and MHSC are generally the same as theat-risk during the period.

aforementioned market risk management structures, but• Stress Testing

the senior executives responsible for risk management

Because the value-at-risk method is based on statisticalare responsible for matters pertaining to planning andassumptions, we conduct stress testing to simulate theconducting liquidity risk management, while the seniorlevels of losses that could be incurred in cases where the69Internal Control Systems

market moves suddenly to levels that exceed thesefluctuations occur under stress conditions. The results ofassumptions. The stress testing methods we use include

calculations of losses in the banking book show that they

the calculation of losses on the basis of the largest fluctu-

are 8.8% of broadly-defined capital. Because the amountations occurring over a period of more than five yearsof risk on the banking book is therefore well under theand the calculation of losses based on market fluctua-

20% threshold and within controllable limits, we do nottions occurring during historical market events. In addi-

fall under the “outlier” category. The loss ratio to capitaltion, we conduct stress testing based on a sharp drop inincreased from the previous fiscal year due mainly to thethe price of securitization and other products due toexpansion of interest rate risk related to the U.S. dollar

diminished market liquidity. The table below shows thefor the fiscal year ended March 31, 2010.

assumed maximum loss results of stress testing in trading• Value-at Risk

activities using the methods described above:

We use the VaR method, supplemented with stress testing, as our principal tool to measure market risk. The VaR

Fiscal 2009 Stress Testing
At March 31, 2010 (billions of yen)method measures the maximum possible loss that could
be incurred due to market movements within a certain

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

30.3

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

35.4

time period (or holding period) and degree of probability(or confidence interval).

Trading Activities
VaR related to our trading activities is based on the following:•

Outlier Criteria• variance co-variance model for linear risk andAs part of the new capital adequacy requirements underMonte-Carlo simulation for non-linear risk;

Basel II, the losses arising from a banking book in hypo-• confidence interval: one-tailed 99.0%;

thetical interest rate shock scenarios under certain stress• holding period of one day; andconditions are calculated and compared with the sum of• historical observation period of one year.

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

The following tables show the VaR related to our trad-banking book leads to an economic value decline of more

ing activities by risk category for the fiscal years ended

than 20% of the sum of Tier 1 and Tier 2 capital, we will

March 31, 2008, 2009 and 2010 and as of March 31,

be deemed an “outlier” and may be required to reduce

2008, 2009 and 2010:

the banking book risk or adopt other responses. We
measure losses arising from our banking book each

VaR by Risk Category (Trading Activities)(billions of yen)month as a part of our stress tests.

Fiscal 2007

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

Interest rate
Foreign exchange
Equities

Fiscal 2009 Results of Calculations under the
Outlier Framework(billions of yen)Amountof loss
At March 31, 2008
At March 31, 2009
At March 31, 2010
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

679.3
532.4
681.4
487.0
128.8
56.5

Total

Broadlydefined Loss ratio
capital to capital

7,708.3
6,223.6
7,658.0

8.8%
8.5%
8.8%

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

70

Commodities

Daily average

Maximum

Minimum

At March 31

2.3
2.0
1.6
0.2
4.4

3.8
6.4
2.8
0.3
7.9

1.5
0.9
0.8
0.1
3.0

2.6
4.4
1.3
0.1
6.7

Daily average

Maximum

Minimum

At March 31

2.3
2.4
1.3
0.2
4.7

3.9
5.1
2.3
0.3
7.7

1.6
1.0
0.3
0.0
3.3

2.2
2.6
0.5
0.0
3.8

Daily average

Maximum

Minimum

At March 31

1.7
1.4
1.2
0.1
3.1

2.9
2.7
3.2
0.3
4.8

1.0
0.4
0.3
0.0
2.1

1.2
2.1
0.3
0.0
2.8

Fiscal 2008
Interest rate
Foreign exchange
Equities
Commodities
Total

Fiscal 2009
Interest rate
Foreign exchange
Equities
Commodities
Total

The following graph shows VaR figures of our trading
activities for the fiscal year ended March 31, 2010:

VaR (Banking Activities)(billions of yen)
Fiscal 2007 Fiscal 2008 Fiscal 2009 Change
As of fiscal year end

Fiscal 2009 VaR (Trading Activities)

Maximum(VaR: billions of yen)

Minimum

7.0

Average

6.0

258.6
303.9
160.5
226.8

248.1
335.8
173.3
251.5

167.0
255.6
160.2
206.4

(81.1)(80.2)(13.0)(45.0)

5.0
4.0
3.0

Characteristics of VaR Model

2.0

VaR is a commonly used market risk management

1.0

technique. However, VaR models have the following
shortcomings:

09.04.01
09.04.15
09.04.29
09.05.13
09.05.27
09.06.10
09.06.24
09.07.08
09.07.22
09.08.05
09.08.19
09.09.02
09.09.16
09.09.30
09.10.14
09.10.28
09.11.11
09.11.25
09.12.09
09.12.23
10.01.06
10.01.20
10.02.03
10.02.17
10.03.03
10.03.17
10.03.31

0• By its nature as a statistical approach, VaR estimates
possible losses over a certain period at a particular

The following table shows VaR figures of our trading

confidence level using past market movement data.

activities for the fiscal years indicated:

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

VaR (Trading Activities)

future events that are extreme in nature.

(billions of yen)
Fiscal 2007 Fiscal 2008 Fiscal 2009 Change
Maximum
Minimum
Average
The number of cases where
profits/losses exceeded VaR

3.8
7.7
3.3
4.7

6.7
7.9
3.0
4.4

As of fiscal year end

2.8
4.8
2.1
3.1

• VaR may underestimate the probability of extreme

(0.9)
(2.8)
(1.1)
(1.5)

market movements.
• The use of a 99.0% confidence level does not takeaccount of, nor makes any statement about, any loss-

1 no cases

no caseses that might occur beyond this confidence level.
• VaR does not capture all complex effects of various

Non-Trading Activities

risk factors on the value of positions and portfolios

The VaR related to our banking activities is based on theand could underestimate potential losses.

same conditions as those of trading activities, but the•holding period is one month.

We also conduct interest sensitivity analyses of interest

Interest Sensitivity Analysis

The graph below shows the VaR related to our bank-risk, our main source of market risk. The following table

ing activities excluding our strategic equity portfolio forshows sensitivity to yen interest risk in our banking

the year ended March 31, 2010.

activities as of the dates indicated. As shown in the table,
we have reduced overall sensitivity to the risk of future

Fiscal 2009 VaR (Banking Activities)

increases in interest rates. Interest rate sensitivity (10 BPV)

(VaR: billions of yen)

(%)

300

1.2

shows how much net present value varies when interest

250

1.0

rates rise by 10 basis (0.1%), and it explains the impact of

200

0.8

interest rate movements on net present value when short-

150

0.6

and long-term interest rates behave differently.

100

0.4
VaR

JGB Yield (5-Year)

50

0.2

0

0.0

Interest Sensitivity by Maturity

09.04.01
09.04.15
09.04.29
09.05.13
09.05.27
09.06.10
09.06.24
09.07.08
09.07.22
09.08.05
09.08.19
09.09.02
09.09.16
09.09.30
09.10.14
09.10.28
09.11.11
09.11.25
09.12.09
09.12.23
10.01.06
10.01.20
10.02.03
10.02.17
10.03.03
10.03.17
10.03.31

At March 31, (billions of yen)
Up to one year
From one to five years
Over five years

The following table shows the VaR figures relating to

Total

2008

2009

2010 Change

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

(9)
(25)
(18)
(53)

(10)
(28)
(14)
(53)

(0)
(3)
4
0

our banking activities for the fiscal years indicated:

71Internal Control Systems• Market Risk Equivalent

MHSC, MHIS and TCSB respectively manage operational

In order to calculate the amount of capital necessary torisk in an appropriate manner pursuant to risk manage-

meet the capital requirements relating to market risk (thement policies determined by MHFG.

“market risk equivalent”), we apply internal models to
calculate general market risk (risks related to factors that

Operational Risk Management Structure

apply generally to the market, e.g., interest rates, foreign

MHFG, MHCB, MHBK, MHTB, MHSC, MHIS and TCSB

exchange rates) and the standardized measurement

share common rules for data gathering, and we measuremethod to calculate specific risks (risks other than general

operational risk on a regular basis, taking into accountmarket risk, e.g., credit quality and market liquidity of an

possible future loss events and the changes in the businessindividual security or instrument). In addition, our internal

environment and internal management.

models are applied to trading transactions with market

We have established and are strengthening manage-liquidity based on the relevant holding period. Under thement methods and systems to appropriately identify,

internal models, the market risk equivalent is calculated

assess, measure, monitor and control the operationalby taking the greater of (i) VaR on the calculation daterisks which arise from the growing sophistication andand (ii) the average VaR for the preceding 60 businessdiversification of financial operations and developments

days (including the calculation date) multiplied by a multi-

relating to information technology by utilizing control

plication factor ranging from 3.00 to 4.00 that is deter-

self-assessments and improving measurement methods.

mined based on the number of times VaR is exceeded
upon back testing.

Glossary> Control Self-Assessments

The following table shows total market risk equivalent
as of the dates indicated calculated using the standardized measurement method and internal models:

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

Operational Risk Management Structure

Fiscal 2009 Market Risk Equivalent
At March 31, (billions of yen)
2009

2010

ChangeCalculated using standardized
measurement method

64.1

77.9

13.7

Calculated using internal models

43.2
107.3

25.9
103.8

(17.2)(3.5)

Total market risk equivalent

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

MHFG

Board of Directors
Chief Executive Officer(CEO)

Executive Management
Committee

Senior executive officers
responsible for each typeof risk management
Operational risk management(Risk Management Division)

IT risk management
division
Operations risk
management division

Operational Risk Management

Divisions
responsible foreach type of risk
management

Basic Approach
We define operational risk as the risk of loss that we may
incur resulting from inadequate or failed internal
processes, people and systems or from external events.

•Set risk management policies•Give instructions concerning
risk management•Report the risk
management situation

We recognize that operational risk includes information
technology risk, operations risk, legal risk, humanresources risk, tangible asset risk, regulatory change risk
and reputational risk. We have determined risk management policies concerning risk management structures andmethods for each kind of risk. MHCB, MHBK, MHTB,

72

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

Definition of Risks and Risk Management
Methods

that are preparing to implement the AMA. The measure-

As shown in the table below, we have defined each com-

operational risk equivalent in the calculation of capitalponent of operational risk and we apply appropriate risk

adequacy ratios but also as Operational VAR for internalmanagement methods in accordance with the scale andrisk management purposes for implementing action plans

nature of each risk.

to reduce operational risk, etc.

ment results under the AMA are used not only as the• Outline of the AMA

Measurement of Operational Risk Equivalent

Outline of Measurement System• Implementation of Advanced Measurement

We have established the model by taking account of four

Approachelements: internal loss data; external loss data; scenario

We have been implementing the Advanced Measurement

analysis and business environment; and internal control

Approach (AMA) from September 30, 2009, in place offactors (BEICFs). A statistical approach (one year holding

the gross profit allocation approach (The Standardized

period/one-tailed 99.9 percentile confidence interval) is

Approach (TSA)) that we had been using previously, fortaken for the calculation of operational risk equivalent,

the calculation of operational risk equivalent in associa-

employing both internal loss data (i.e., actually experi-tion with capital adequacy ratios based on Basel II.

enced operational loss events) and scenario data to

However, we use the Basic Indicator Approach (BIA) forreflect unexperienced potential future loss events in theentities that are deemed to be less important in the meas-

measurement.

urement of operational risk equivalent and for entities

In the measurement of operational risk equivalent as

Definition

Principal Risk Management Methods

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

• Identify and evaluate the risk by setting specific standards that need to be complied withand implementing measures tailored based on evaluation results to reduce the risk.
• Ensure ongoing project management in systems development and quality control.
• Strengthen security to prevent information leaks.
• Improve effectiveness of emergency responses by improving backup systems and holding drills.

Operations Risk

Risk that customers may suffer service disruptions, as well as the risk that customers or thegroup may incur losses because senior executives
or employees fail to fulfill their tasks properly,
cause accidents or otherwise act improperly.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation and centralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal Risk

Risk that the group may incur losses due to violation of laws and regulations, breach of contract, entering into improper contracts or otherlegal factors.

• Review and confirm legal issues, including the legality of material decisions, agreements
and external documents, etc.
• Collect and distribute legal information and conduct internal training programs.
• Analyze and manage issues related to lawsuits.

Information
Technology Risk

Human Resources
Risk

Tangible Asset Risk

Regulatory Change
Risk

Reputational Risk

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

• Manage the planning and implementation of construction projects related to the repair
and replacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused by natural disasters,
etc., and respond appropriately to such damage.

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

We also recognize and manage “Information Security Risk” and “Compliance Risk”, which constitute a combination of more than one of theabove components of operational risk, as operational risk.

73

Internal Control Systemsof March 31, 2010, we did not exclude expected losses

order to estimate unexperienced potential future loss

and also did not recognize the risk mitigating impact of

events (of low frequency and high severity).

insurance. In addition, we did not take into account the“Frequency Distribution” and “Severity Distribution”

events related to credit risk in measuring operational risk

are estimated employing the above mentioned internal

equivalent.

loss data and scenario data, and Monte-Carlo simulations

Outline of Measurement Modelare then applied to these distributions to measure opera-

Operational risk equivalent is calculated as a simple sum

tional risk. The detailed steps of creation of scenario dataof those related to the seven loss event types defined byare explained later in “Scenario Analysis”.

Basel II, large-scale natural disasters and litigation. In the

Estimation of “Frequency Distribution” and “Lossmeasurement of operational risk equivalent as of

Severity Distribution”

September 30, 2009, we did not reflect the correlation“Frequency Distribution” is estimated by applying infor-

effects among operational risk related to each of themation on occurrence frequency of both internal loss

seven loss event types.

data and scenario data to Poisson Distribution. “LossOperational Risk by the Loss Event Type

Severity Distribution” is generated as the result of com-

Loss Distribution (Compound Poisson Distribution)bining, through a statistical approach (Extreme Value

Approach (LDA) is adopted for the calculation of opera-

Theory), of the actual distribution for the low severity dis-tional risk. LDA is based on the assumption that Poisson

tribution portion created by internal loss data andDistribution applies to the occurrence frequency of oper-

another loss distribution (Log-normal Distribution orational risk events, and loss severity is expressed throughGeneralized Pareto Distribution) for the high severity dis-a separate distribution. Operational risk is calculated fortribution portion created by scenario data.

each of the seven loss event types employing both inter-

Operational Risk of Large-Scale Natural Disasters

nal loss data, based on our actual experience as opera-

Monte-Carlo simulation is applied to the datasets

tional loss events and scenario data. Scenario data,

expressed as a combination of the probability of occur-

expressed as numerical values of occurrence frequency

rence of large-scale natural disasters and the probableand loss severity, reflects external loss data and BEICFs, inloss amount in case of such occurrence, as opposed to

Outline of Measurement Model
Internal loss data

Business environment andinternal control factors

External loss data

Scenario analysis

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Scenario data

Litigation data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud
Risk amount for external fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products and business practices
Risk amount for damage tophysical assets

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for businessdisruption and system failure
Risk amount for execution,delivery and process management

Operational VaR(Total operational risk amount)74

estimating “Frequency Distribution” and “Loss Severity

Group Entities selects the unit on which scenario analysis

Distribution”.

is conducted from the units established on a groupwide

Operational Risk of Litigationbasis in accordance with its business activities and opera-

Each litigation is converted into data according to thetional risk profile.

profile of the individual litigation to which Monte-Carlo

Estimation of Occurrence Frequency

simulation is applied, as opposed to estimating

Basic occurrence frequency (once a year) is calculated for“Frequency Distribution” and “Loss Severity Distribution”.

each scenario analysis unit. If a certain scenario analysis

In the measurement process, we assume that final deci-unit has relative internal loss data of a pre-determinedsions will be made on all litigation within one year.

threshold amount or above, its basic occurrence fre-

Verificationquency is calculated based on such data, and if not, theWe confirm the appropriateness of the measurement

basic occurrence frequency (the occurrence frequency permodel by verifying it, in principle, semi-annually.

year of losses at or above a pre-determined threshold) is•

calculated with reference to the situation of occurrence

Scenario Analysis

Outline of Scenario Analysis

of internal loss data of less than the threshold amountIn the process of scenario analysis, scenario data is cre-and/or external loss data. The basic occurrence frequency

ated as numerical values of occurrence frequency andis then adjusted within a pre-determined range for theloss severity reflecting external loss data and BEICFs, inpurpose of reflecting the most recent BEICF to determineorder to estimate unexperienced potential future opera-

the final occurrence frequency.

tional risk events (of low frequency and high severity).

Estimation of Loss Severity Distribution

As for external loss data, we refer to data publicly

In order to estimate loss severity distribution, we use areported by domestic and overseas media, and such data

pre-determined series of severity ranges. Basic loss sever-are reflected in the estimation of occurrence frequency

ity distribution is calculated for each scenario analysis

and loss severity distribution in the process of scenario

unit as an occurrence ratio (in percentile figures) of loss

analysis. In addition, BEICFs are utilized as indices toat each severity range when losses at or above a pre-adjust occurrence frequency and loss severity distribution

determined threshold occurred, with reference to trans-in the process of scenario analysis.

action amount data, external loss data, etc. Then the

We categorize scenario analysis into four approaches

basic severity distribution is adjusted, if necessary, fromin accordance with the characteristics of each loss eventthe viewpoint of statistical data processing to determine

type and risk management structures.

the final loss severity distribution.

Approach

Loss event type(s) to be applied

Creation of Scenario Data

AInternal fraud/External fraud/Customers, products & business practices/Execution, delivery & process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failure

At MHFG, loss event types to which Approach A is

For each scenario analysis unit, scenario data is generated
as a series of combinations of occurrence frequency per
year at each severity range, based on the final occurrence
frequency and the final loss severity distribution.
Example of Scenario Data

applied account for a considerable amount of operationalrisk. The detailed process of Approach A is explained
below as a typical example of scenario analysis.

Final loss severity distribution

Severity range (billions of yen)
0.1

0.5

1

5

10 Total

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency (times)

0.4

0.3

0.15

0.1

0.05

1

Setting Units for Scenario Analysis
In order to ensure completeness and sufficiency, we set
units that are commonly applied across group entities

Final occurrence frequency(As of June 22, 2010)that adopt AMA (the “Group Entities”) by referencing
and categorizing risk scenarios recognized through control self-assessment, internal loss data of the Group
Entities and external loss data, etc. Then each of the75Internal Control Systems

Internal Audit Structure

divisions and credit review divisions to conduct internal
audits at their respective domestic and overseas business

Basic Approach

offices, head office divisions and group companies.

Internal audits are designed as an integrated process,Specifically, the internal audit divisions assess the suitabil-

independent from other business operations, for evaluat-

ity and effectiveness of business activities associated withing the extent to which internal control achieves its objec-

compliance and risk management. The credit review divi-

tives in key areas, including appropriate risk management,sions audit credit ratings and the status of credit manage-

efficient and effective business operations, reliable finan-

ment in addition to auditing the self-assessment of assets

cial reporting and compliance with laws, regulations andto verify the accuracy and suitability of matters deemedinternal rules. We conduct internal audits from an objec-

necessary to assure the soundness of assets.

tive and comprehensive standpoint, independent of oper-• Other Core Group Companies

ational reporting lines, and offer advice and remedial

MHTB, MHSC and our other core group companies haverecommendations in connection with any problems that

also established effective and efficient internal audit struc-may be identified. Through this process, internal auditstures adapted to the characteristics of their respective

assist the boards of directors of each of our group com-businesses.

panies to fulfill their managerial duties efficiently andeffectively.

Internal Audit Management Structure
MHFG

In line with the Basic Policy for Internal Audit estab-

Board of Directors

lished by MHFG, our principal banking subsidiaries andother core group companies conduct internal audits,which include the auditing of their respective subsidiaries.

Chief Executive Officer (CEO)Chairman of Internal
Audit Committee

In addition, with respect to the management of risks

Internal Audit Committee

applicable across the group, we coordinate internal audits
throughout the group to assess the risk management status of the group as a whole.

Everyorganizational
unit

Internal Audit Management Structure• MHFGManagement
by MHFG

Audit

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

Advice, guidance
and remedialrecommendations

Report theresults of internal
audit, etc.

Our internal audit committee determines all importantmatters concerning internal audits. The committee is

MHCB, MHBK, and otherchaired by our president and chief executive officer and iscore group companies

independent of our other business operations.
Our internal audit committee monitors and manages

Subsidiaries of the above group companies

internal audits at our principal banking subsidiaries andother core group companies through internal audit
reports submitted by such subsidiaries. Our internal audit
committee discusses and makes decisions regarding internal audits at our principal banking subsidiaries and othercore group companies and submits the results, together
with the results of their examination of the internal audit
reports, to our board of directors.

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

76(As of June 22, 2010)

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

78

Financial and Economic Environment

80

Results for the Fiscal Year ended March 31, 2010

82

Status of Asset Quality

99

77

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

Total Income
Net Income (Loss)
Net Assets (Note 1)
Total Assets (Note 1)
Deposits
Debentures
Loans and Bills Discounted
Securities

2010

¥

2,935.8
239.4
5,837.0
156,253.5
86,627.5
1,517.7
62,164.5
43,096.4

2009¥

3,536.5(588.8)4,186.6
152,723.0
86,539.0
2,300.4
70,520.2
30,173.6

2008¥

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

2007¥

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

2006¥

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

Net Assets per Share (Yen) (Note 2)
Net Income (Loss) per Share (Yen) (Note 2)
Diluted Net Income per Share (Yen) (Note 2)(Note 3)

191.53
16.29
15.57

104.38(54.14)—

254,722.01
25,370.25
24,640.00

336,937.64
51,474.49
48,803.07

274,906.95
55,157.14
46,234.51

Capital Adequacy Ratio (BIS Standard) (Note 4)

13.46%

10.53%

11.70%

12.48%

11.59%Net Return on Equity
PER (Times) (Note 3)

10.9%
11.35x(29.6)%—x8.5%
14.38x16.7%
14.74x26.3%
17.45x13,432.7(14,153.5)
231.8

573.7
2,408.2
32.9

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

5,048.6

2,055.7

3,089.0

3,387.9

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

Cash and Cash Equivalents at the end of the fiscal year

4,678.7

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” is included for calculation of
net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Diluted Net Income per Share and PER are not required to be disclosed due to Net Loss per Share of Common Stock for the fiscal year ended March 31, 2009.
4. Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries
Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006), commencing with the fiscal year ended March 31, 2007.
5. The ordinary general meeting of shareholders resolved on June 26, 2008 to allot shares or fractions of a share without consideration to all the shareholders or the holders of fractional shares, andwe accordingly conducted it on January 4, 2009.
The following are per share indicators after retroactive adjustments according to the allotment of shares or fractions of a share without consideration for reference.

(Reference)yen

As of or for the Fiscal Years ended March 31,

Net Assets per ShareNet Income per Share
Diluted Net Income per Share

78

2008

2007

2006

254.7225.37
24.64

336.9351.47
48.80

274.9055.15
46.23

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

As of or for the Fiscal Years ended March 31,

2010

2009

Operating Income
¥
33.7
¥
442.7
Net Income
3.3
378.8
Common Stock and Preferred Stock
1,805.5
1,540.9
Number of Shares Issued and Outstanding
Common Stock
15,494,397,690 shares 111,178,940,660 shares
Fourth Series Class IV Preferred Stock//
Sixth Series Class VI Preferred Stock//
Seventh Series Class VII Preferred Stock//
Eleventh Series Class XI Preferred Stock914,752,000 shares
914,752,000 shares
Thirteenth Series Class XIII Preferred Stock
36,690,000 shares
36,690,000 shares
Net Assets (Note 1)
4,011.1
3,608.6
Total Assets (Note 1)
5,225.9
4,552.7
223.59236.36
Net Assets per Share (Yen) (Note 2)
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock8
10Fourth Series Class IV Preferred Stock//
Sixth Series Class VI Preferred Stock//
Seventh Series Class VII Preferred Stock//
Eleventh Series Class XI Preferred Stock20
20
Thirteenth Series Class XIII Preferred Stock30
30
Common Stock——
Fourth Series Class IV Preferred Stock//
Sixth Series Class VI Preferred Stock//
Seventh Series Class VII Preferred Stock//
Eleventh Series Class XI Preferred Stock——Thirteenth Series Class XIII Preferred Stock——(0.54)
32.00
Net Income (Loss) per Share (Yen) (Note 2)
Diluted Net Income per Share (Yen) (Note 2) (Note 4)
—
28.45
—x
5.87x
PER (Times) (Note 4)
Dividend Propensity (Note 3)—%
31.24%

2008

¥

806.5
811.0
1,540.9

2007¥

1,250.0
1,239.7
1,540.9

2006

¥

128.9
790.2
1,540.9

11,396,254.66 shares///
943,740 shares
36,690 shares
3,512.8
4,658.9
220,538.65

11,872,195.49 shares///
943,740 shares
36,690 shares
3,176.4
4,764.0
183,338.04

12,003,995.49 shares
150,000 shares
150,000 shares/
943,740 shares
36,690 shares
2,752.3
4,793.0
94,861.81

10,000///20,00030,000—///——68,658.41
64,138.22
5.31x
14.56%

7,000///
20,00030,000—///——102,168.76
95,550.05
7.42x
6.85%

4,000
47,60042,000—20,00030,000——————63,040.65
53,235.99
15.27x6.34%

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” is included for calculation of
net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Dividend Propensity: Cash Dividends Declared per Share (Common Stock) / Net Income per Share (Common Stock). Dividend Propensity is not required to be disclosed due to loss position of
earnings per share for the fiscal year ended March 31, 2010.
4. “Diluted Net Income per Share” and “PER” are not required to be disclosed due to loss position of earnings per share for the fiscal year ended March 31, 2010.
5. The ordinary general meeting of shareholders resolved on June 26, 2008 to allot shares or fractions of a share without consideration to all the shareholders or the holders of fractional shares, andwe accordingly conducted it on January 4, 2009.
The following are per share indicators after retroactive adjustments according to the allotment of shares or fractions of a share without consideration for reference.

(Reference)
As of or for the Fiscal Years ended March 31,

Net Assets per ShareNet Income (Loss) per Share
Diluted Net Income per Share

yen

2008

2007

2006

220.5368.65
64.13

183.33102.16
95.55

94.86
63.04
53.23

79

Financial Analysis

Financial and Economic Environment

Financial and Economic Environment
Looking back over the economic climate during the fiscal year ended March 31, 2010, the actions taken to stabilize the financial
system and stimulate the economy by major countries in cooperation with each other in response to the financial crisis have beeneffective, and the global economy has emerged from its worst and is picking up moderately.
The U.S. and the euro area showed a return to positive real GDP growth in the third quarter of calendar year 2009 attributable
mainly to the effects of economic stimulus policies. Also, in Asia, growth was maintained as strengthening of domestic demand in
China induced exports from and production in neighboring countries.
As for the Japanese economy, it has entered a mild deflationary state with a severe employment and income environment continuing, and prospects of a self-sustaining recovery in domestic private-sector demand remain weak. However, exports have been
increasing and personal consumption has been picking up, especially of durable goods, reflecting improvements in the foreign
economic environment and the effectiveness of economic stimulus policies, and with positive real GDP growth maintained, theeconomy is picking up steadily.
Nevertheless, in a situation where causes of concern exist, such as the effects of the cessation of economic stimulus packages,
worsening employment and the aggravation of the fiscal condition of certain nations in Europe and other areas, it remains uncertain whether the global economy is capable of maintaining its recovery going forward.
Given the above business environment, it is important for the group companies of Mizuho to strengthen their profitability further by allocating management resources decisively and by providing high-quality financial services to meet customers' needs,
while maintaining financial soundness and enhancing corporate governance such as risk management.

80Trends in Interest Rates in Japan
(%)

(%)

2.4

0.80

Long-Term Prime Rate
(left scale)

2.2

0.70
0.60

2.0
1.8

Euroyen TIBOR (3-month) (right scale)

0.50
0.40

1.6

Short-Term Prime Rate (left scale)

1.4

0.30

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

1.2

0.20

Call Rate (Uncollateralized overnight)(right scale)

1.0
0.8

0.10
0.00

Apr. 2009

July 2009

Oct. 2009

Jan. 2010

Apr. 2010

Trends in TOPIX and Yen / Dollar Exchange Rate
(Point)(Yen / Dollar)
105

1,100

100

1,000

TOPIX (left scale)

900

95

800

90

Yen / Dollar Exchange Rate (right scale)
700

85

Apr. 2009

July 2009

Oct. 2009

Jan. 2010

Apr. 201081

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

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

As of March 31,

2010

2009

ChangeNumber of consolidated subsidiaries
Number of affiliates under the equity method

162
21

145
22

17
(1)

2010

2009

2. Consolidated Profits and Losses
Billions of yen

For the Fiscal Years ended March 31,

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

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

1,996.6
1,151.7
49.1
466.0
312.3
17.4

¥

1,806.9
1,068.8
55.8
416.6
301.5
(35.9)

Change¥189.6)
82.8
(6.7)
49.3
10.8
53.3

1,317.2

1,192.7

124.5

262.3

554.3

(291.9)Net Gains (Losses) related to Stocks

4.2(400.2)404.5

Equity in Income from Investments in Affiliates

2.8

(3.5)

6.4

Other

(46.3)(61.9)

15.5

Income (Loss) before Income Taxes and Minority Interests

377.7(405.8)

783.6

Income Taxes–Current

18.0

48.2

(30.2)

Income Taxes–Deferred

25.1

109.1

(83.9)

Income before Minority Interests

334.6(563.2)897.8

Minority Interests in Net Income

95.2

25.5

69.6

Net Income (Loss)

¥

239.4

¥

(588.8)¥828.2

Net Income (Loss) per Share of Common Stock (Yen)

¥

16.29

¥

(54.14)¥

70.43

Credit-related Costs

¥

219.3

¥

536.7

¥

(317.4)(Reference) Consolidated Net Business Profits

¥

702.6

¥

622.6

¥

80.0

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

82

Use and Source of Funds (Consolidated)
Billions of yen

Average balance
2010
2009

Change2010

Interest
2009

120.4
(1,061.7)(51.2)
177.7¥ 1,571.9
10.2
3.6
34.2

¥ 2,144.4
36.3
8.2
149.0

(1,480.4)
4,898.8(2,158.4)

9.1
350.5
1,047.737.8
466.7
1,367.3(28.7)(116.2)(319.6)

420.2
194.1
11.9
11.0
33.7

¥ 1,075.5 ¥
477.1
17.5
46.3
196.5

(655.2)(283.0)(5.6)(35.3)(162.7)

11.6
—
36.0

41.4
0.0
74.0

(29.8)(0.0)(38.0)For the Fiscal Years ended March 31,

2010

Yield
2009

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

1.27%
1.09
1.78
0.44

1.73%
1.82
3.21
1.97

(0.46)%(0.73)(1.42)(1.52)

0.15
0.91
1.59

0.50
1.39
2.01

(0.35)(0.48)(0.42)

0.32%
0.22
0.61
0.16
0.26

0.88%
0.59
0.63
0.63
1.67

(0.55)%(0.37)(0.02)(0.47)(1.40)

0.21
.—
0.39

0.66
0.21
1.04

(0.44)(0.21)(0.65)For the Fiscal Years ended March 31,

Use of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted¥ 123,513.1
934.7
205.8
7,730.6¥ 123,392.6
1,996.4
257.1
7,552.9

6,032.5
38,241.8
65,553.3

7,512.9
33,343.0
67,711.7

Source of Funds¥ 127,486.9
Deposits
84,726.0
Debentures
1,938.4
Call Money and Bills Sold
6,674.7
Payables under Repurchase Agreements
12,637.7
Guarantee Deposits Received under Securities
Lending Transactions
5,360.5
Commercial Paper—
Borrowed Money
9,217.8¥ 121,684.0
80,009.9
2,754.6
7,256.0
11,732.3
6,284.6
10.0
7,121.2¥¥

5,802.9
4,716.0(816.2)(581.3)905.4(924.1)(10.0)
2,096.6¥

Change¥(572.4)(26.1)(4.5)(114.7)%

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

Net Fee and Commission Income (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2010

2009

Change¥ 466.0¥ 416.6¥ 49.3

Fee and Commission Income
Deposits, Debentures and Lending Business
Securities-related Business
Remittance Business
Trust-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 557.3
113.8
113.8
105.3
38.9
29.9
28.3
6.0

¥ 514.9
121.1
56.7
110.8
39.1
32.2
32.4
5.9

¥ 42.3
(7.3)
57.0
(5.4)
(0.1)
(2.2)
(4.1)
0.0

Fee and Commission Expenses
Remittance Business

¥

¥

¥

Net Fee and Commission Income

91.2
36.5

98.3
36.9

(7.0)
(0.3)

83

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

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

As of March 31,

2010

2009

ChangeTotal Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted¥ 156,253.5
5,211.4
13,986.7
43,096.4
62,164.5¥ 152,723.0
5,720.2
13,514.5
30,173.6
70,520.2¥ 3,530.5(508.7)472.2
12,922.8(8,355.6)

Total Liabilities
Deposits
Debentures
Call Money and Bills Sold

150,416.5
86,627.5
1,517.7
5,786.3

148,536.4
86,539.0
2,300.4
6,449.8

1,880.0
88.5(782.6)(663.4)

4,186.6
2,554.1(420.3)1.1
2,051.6¥ 1,650.4)
653.1
726.1
1.1
270.0

Net Assets
Shareholders' Equity
Valuation and Translation Adjustments
Stock Acquisition Rights
Minority Interests¥

5,837.0
3,207.2305.8
2.3
2,321.7¥

Fair Value of Other Securities (Consolidated)
Billions of yen

As of March 31, 2010

Acquisition cost

Fair value

Other Securities
Japanese Stocks
Japanese Bonds
Other¥ 43,068.7
2,557.2
31,685.4
8,825.9¥ 43,344.3
2,898.1
31,759.6
8,686.4¥

Gross unrealized
Gains

Losses

772.8
549.3
120.9
102.5

497.2
208.4
46.7
242.0

¥

Net unrealized*2
gains (losses)

¥

275.5
340.8
74.2
(139.5)
Billions of yen

As of March 31, 2009

Acquisition cost

Fair value

Other Securities
Japanese Stocks
Japanese Bonds
Other¥ 29,713.7
2,788.9
19,496.0
7,428.7¥ 29,204.1
2,605.2
19,507.6
7,091.2¥

Gross unrealized
Gains

Losses

393.2
284.9
43.6
64.5

902.8
468.6
32.1
401.9

¥

Net unrealized*2
gains (losses)¥(509.6)(183.7)11.5(337.4)
Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost

Fair value¥ 13,354.9(231.6)
12,189.3
1,397.2¥ 14,140.1
292.8
12,252.0
1,595.2¥

Gross unrealized
Gains

Losses

379.6
264.3
77.2
37.9

(405.5)(260.2)
14.5(159.9)¥Net unrealized
gains (losses)

¥

785.2
524.5
62.6
197.9

Note: Net unrealized gains (losses) include ¥7.9 billion and ¥62.7 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2010 and 2009, respectively, by applying
the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax and consolidation adjustments as of March 31, 2010 and 2009 were ¥267.6 billion and¥(572.3) billion, respectively.

84

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

As of March 31,

Other Securities
Japanese Stocks
Japanese Bonds
Other

2010

¥

2009

267.6
340.8
55.9
(129.1)¥

Change(572.3)(183.7)(54.7)(333.8)

¥

840.0
524.5
110.7
204.7

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

As of March 31,

2010

2009

Consolidated Capital Adequacy Ratio
Tier 1 Capital Ratio

13.46%
9.09%

10.53%
6.37%

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

5,173.4
2,725.4
240.8¥

3,765.0
2,793.1
334.5

Total Risk-based Capital¥

7,658.0¥

6,223.6

Risk-weighted Assets¥ 56,863.2¥ 59,056.2

85

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

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

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

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

2010
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)1,996.6 ¥1,151.7
49.1
466.0
312.3
17.4

1,593.1 ¥1,102.6
48.5
289.0
136.6
16.3

403.4
49.0
0.5
176.9
175.7
1.1

79.7%
95.7
98.8
62.0
43.7
93.6

219.3

157.1

62.1

71.6

MHFG
(Consolidated)
(a)

¥

2009
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)1,806.9 ¥1,068.8
55.8
416.6
301.5
(35.9)

1,485.9 ¥
968.8
54.5
299.2
192.8
(29.4)

320.9
100.0
1.3
117.4
108.6
(6.5)

82.2%
90.6
97.6
71.8
63.9
81.8

536.7

539.3

(2.5) 100.4

Net Income (Loss)¥

239.4 ¥

313.1 ¥

(73.7) 130.7%¥(588.8) ¥(576.9) ¥(11.8) 97.9%

Net Business Profits¥

702.6 ¥

685.9 ¥

16.7¥

622.6 ¥

576.6 ¥

45.9

97.6%

92.6%

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

Billions of yen, %

86

2010
AggregatedFigures of theThree Banks (b)As of March 31,

MHFG(Consolidated)(a)Total Assets
Securities
Loans and Bills Discounted¥ 156,253.5 ¥ 150,978.2 ¥ 5,275.3
96.6%
43,096.4
43,576.2(479.7) 101.1
62,164.5
62,281.2(116.6) 100.1(a) – (b) (b) / (a)MHFG(Consolidated)
(a)

2009
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)¥ 152,723.0 ¥ 150,731.1 ¥ 1,991.9 98.6%
30,173.6
30,728.8(555.2) 101.8
70,520.2
70,477.5
42.6 99.9

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

For the Fiscal Years ended March 31,

Domestic Gross Profits
International Gross Profits

2010

¥

1,158.5
434.6

2009

¥

1,119.4
366.5

Change

¥

39.0)
68.1

Gross Profits
Net Interest Income
Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
Net Gains (Losses) related to Bonds

1,593.1
1,102.6
48.5
289.0
136.6
16.3
25.5

1,485.9
968.8
54.5
299.2
192.8
(29.4)(46.5)

107.1
133.8
(5.9)
(10.1)(56.2)
45.7
72.0

General and Administrative Expenses (excluding Non-Recurring Losses)
Expense Ratio

907.2
56.9%

909.3
61.1%

(2.0)
(4.2)%Net Business Profits (before Provision for (Reversal of) General Reserve
for Possible Losses on Loans)Excluding Net Gains (Losses) related to Bonds

685.9
660.3

576.6
623.2

109.2
37.1

Provision for (Reversal of) General Reserve for Possible Losses on Loans(47.6)

107.0(154.6)

Net Business Profits

733.5

469.6

263.9

Net Non-Recurring Gains (Losses)
Net Gains (Losses) related to Stocks
Expenses related to Portfolio Problems
Other(390.5)10.9(246.1)(155.3)(907.1)(444.2)(448.2)(14.6)

516.5
455.2
202.0
(140.7)

Income (Loss) before Income Taxes

342.9(437.4)780.4

Income Taxes–Current

0.9

21.3

(20.3)

Income Taxes–Deferred

28.9

118.1

(89.2)Net Income (Loss)

¥

313.1

¥

(576.9)¥890.1

Credit-related Costs

¥

157.1

¥

539.3

¥

(382.1)

Notes: 1. Net Business Profits (before Provision for (Reversal of) General Reserve for Possible Losses on Loans) of MHTB exclude the amounts of Credit Costs for Trust Accounts.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision for (Reversal of) General Reserve for Possible Losses on Loans + Reversal of Reserves for Possible Losses on Loans, etc. +Credit Costs for Trust Accounts.
3. Income Taxes–Current includes Refund of Income Taxes.

Breakdown of Gross Profits (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Interest Income
Domestic Operations
International Operations

2010

¥

1,102.6
840.3
262.3

2009

¥

968.8
848.6
120.1

Change

¥

133.8
(8.3)
142.2

Fiduciary Income
Domestic Operations
International Operations

48.5
48.5
/

54.5
54.5
/

(5.9)
(5.9)
/

Net Fee and Commission Income
Domestic Operations
International Operations

289.0
224.0
64.9

299.2
233.8
65.3

(10.1)(9.8)(0.3)

Net Trading Income
Domestic Operations
International Operations

136.6
35.0
101.5

192.8
35.8
156.9

(56.2)(0.8)(55.4)Net Other Operating Income
Domestic Operations
International Operations

16.3
10.5
5.7

(29.4)(53.5)
24.0

45.7
64.1
(18.3)

Gross Profits¥

1,593.1¥

1,485.9

¥

107.1

87

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

Breakdown of Net Interest Income (MHCB and MHBK)
Billions of yen, %

2010

Yield
2009

¥ 2,135.9(2,326.5)
5,189.0

1.30%
1.51
1.11

1.67%
1.92
1.42

(0.36)%(0.41)(0.30)

117,326.2
84,289.8

2,588.9
18.4

0.40
0.22

0.86
0.55

(0.46)(0.32)

/

/

/

0.90

0.81

0.09

/

/

/

1.28

1.37

(0.08)

Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities

97,798.3
52,480.1
30,474.6

94,444.9
54,358.1
24,506.8

3,353.4(1,877.9)
5,967.7

1.08
1.43
0.66

1.29
1.61
0.87

(0.20)(0.18)(0.21)

Source of Funds
Deposits and Debentures

99,643.7
72,976.9

95,722.0
72,862.5

3,921.6
114.3

0.26
0.17

0.43
0.31

(0.17)(0.14)

Interest Margins

/

/

/

0.82

0.85

(0.03)

Loan and Deposit Margin

/

/

/

1.25

1.29

(0.03)

International Operations
Use of Funds
Loans and Bills Discounted
Securities

22,014.7
9,557.9
6,322.0

24,022.0
10,006.4
7,100.6(2,007.2)(448.5)(778.6)

2.20
1.95
3.30

3.08
3.61
3.30

(0.88)(1.65)(0.00)

Source of Funds
Deposits and Debentures

22,434.1
11,331.3

24,556.7
11,427.3(2,122.5)(95.9)

1.01
0.58

2.53
2.07

(1.51)(1.49)

Interest Margins

/

/

/

1.18

0.54

0.63

Loan and Deposit Margin

/

/

/

1.37

1.53

(0.16)For the Fiscal Years ended March 31,

2010

Average balance
2009

Total
Use of Funds
Loans and Bills Discounted
Securities¥ 117,650.3
62,038.0
36,796.6¥ 115,514.4
64,364.5
31,607.5

Source of Funds
Deposits and Debentures

119,915.2
84,308.2

Interest Margins
Loan and Deposit Margin

ChangeChange(Reference) Interest Margins (Domestic Operations) (MHCB and MHBK)%For the Fiscal Years ended March 31,

2010

2009

ChangeReturn on Interest-Earning Assets
Return on Loans and Bills Discounted
Return on Securities

1.08%
1.43
0.66

1.29%
1.62
0.87

(0.20)%(0.18)(0.21)

Cost of Funding (including Expenses)
Cost of Deposits and Debentures (including Expenses)
Cost of Deposits and Debentures
Cost of Other External Liabilities

0.94
1.11
0.17
0.36

1.15
1.25
0.31
0.64

(0.20)(0.14)(0.14)(0.27)Net Interest Margin

0.13

0.13

(0.00)

Loan and Deposit Rate Margin (including Expenses)

0.32

0.36

(0.03)

Loan and Deposit Rate Margin

1.26

1.30

(0.04)

Notes: 1. Return on Loans and Bills Discounted excludes loans to MHFG.
2. Deposits and Debentures include Negotiable Certificates of Deposit ("NCDs").

(Reference) Interest Margins (Domestic Operations) after excluding Loans to Deposit Insurance Corporation of Japan andJapanese Government (MHCB and MHBK)%88

For the Fiscal Years ended March 31,

2010

2009

Return on Loans and Bills Discounted
Loan and Deposit Rate Margin (including Expenses)
Loan and Deposit Rate Margin

1.58%
0.47
1.40

1.77%
0.51
1.45

Change(0.18)%(0.04)(0.04)

Breakdown of Net Fee and Commission Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2010

2009

Change¥ 289.0¥ 299.2¥ (10.1)

Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 381.4
113.9
104.9
23.3
21.7
31.9
6.0

¥ 398.7
122.9
110.1
25.6
23.9
33.9
5.9

¥ (17.3)
(8.9)
(5.2)
(2.2)
(2.1)
(1.9)
0.0

Fee and Commission Expenses
Remittance Business¥¥¥ (7.1)(0.6)

Net Fee and Commission Income

92.4
36.1

99.5
36.7

Breakdown of Net Other Operating Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Other Operating Income
Total
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

2010

2009

Change¥16.3¥(29.4)

¥

45.7

¥

16.3
11.0
25.5

¥

(29.4)
10.9(46.5)

¥

45.7
0.1
72.0

Domestic Operations
Net Losses related to Bonds

10.5
13.3

(53.5)(50.6)

64.1
64.0International Operations
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

5.7
11.0
12.2

24.0
10.9
4.1

(18.3)
0.1
8.0

Breakdown of General and Administrative Expenses (excluding Non-Recurring Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2010

2009

¥ 320.1¥ 281.9

Non-personnel Expenses

542.4

580.3

(37.9)

Miscellaneous Taxes

44.6

47.0

(2.4)

¥ 907.2¥ 909.3

2010

2009

Change10.9
98.9(17.1)(39.7)(0.0)(31.0)¥ (444.2)
83.9(42.1)(514.1)(4.1)
32.1¥ 455.2
14.9
24.9
474.4
4.1
(63.2)

Expenses related to Portfolio Problems(246.1)(448.2)

202.0

Other

(155.3)(14.6)(140.7)¥ (390.5)¥ (907.1)¥ 516.5

Personnel Expenses

Total

Change

¥

¥

38.2

(2.0)

Breakdown of Net Non-Recurring Gains (Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Gains (Losses) related to Stocks
Gains on Sales
Losses on Sales
Losses on Devaluation
Provision for Reserve for Possible Losses on Investments
Gains (Losses) on Derivatives other than for Trading

Net Non-Recurring Gains (Losses)¥

89

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

(Reference) Breakdown of Credit-Related Costs (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Credit Costs for Trust Accounts
Reversal of General Reserve for Possible Losses on Loans
Losses on Write-offs of Loans
Provision for (Reversal of) Specific Reserve for Possible Losses on Loans
Reversal of Reserve for Possible Losses on Loans to Restructuring Countries
Provision for (Reversal of) Reserve for Contingencies
Other (including Losses on Sales of Loans)

2010

2009

Change¥ 157.1—(47.6)
88.2
99.4
(0.3)
(1.5)
18.8

¥ 539.3
—
107.0
255.0
158.8
0.5
2.8
14.9

¥ (382.1)—(154.6)(166.7)(59.3)
(0.8)
(4.4)
3.9

2010

2009

¥ 150,978.2
6,338.0
9,205.3
43,576.2
62,281.2¥ 150,731.1
6,892.7
8,902.030,728.8
70,477.5

146,262.8
87,674.3
1,517.7
13,979.8—

147,819.2
87,539.8
2,306.6
14,639.6—(1,556.4)
134.5(788.9)(659.7)—

4,715.3
4,286.7428.2
0.2

2,911.8
3,199.3(287.6)0.1

1,803.5
1,087.3715.9
0.1

3. Aggregated Assets, Liabilities and Net Assets
Assets and Liabilities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31,

Total Assets
Cash and Due from Banks
Call Loans
Securities
Loans and Bills Discounted
Total Liabilities
Deposits
Debentures
Call Money
Bills Sold
Net Assets
Shareholders' Equity
Valuation and Translation Adjustments
Stock Acquisition Rights

Change¥247.1(554.7)303.3
12,847.3(8,196.3)

Note: Loans to MHFG are included as follows:
As of March 31, 2010: ¥700.0 billion (from MHBK)As of March 31, 2009: ¥700.0 billion (from MHBK)

Balance of Housing and Consumer Loans (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Housing and Consumer Loans
Housing Loans for Owner's Residential Housing

90

2010

2009

¥ 12,297.5
10,258.4¥ 12,307.7
10,076.8

Change¥(10.1)
181.6

Loans to Small and Medium-Sized Enterprises (SMEs) and Individual Customers (the Three Banks)(Banking Accounts and Trust Accounts)
Billions of yen, %As of March 31,

Loans to SMEs and Individual Customers

2010

2009

Change¥ 33,261.5¥ 34,314.8¥ (1,053.2))

57.6%

53.4%

4.2%

Percentage of Loans to SMEs
and Individual Customers, of Total Domestic Loans

Notes: 1. Loans to MHFG are included as follows:
As of March 31, 2010: ¥700.0 billion (from MHBK)As of March 31, 2009: ¥700.0 billion (from MHBK)
2. Above figures do not include loans booked at overseas offices and offshore loans.
3. The definition of SMEs is as follows:Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail and service industries), or enterprises withfull-time employees of 300 or below (100 or below for the wholesale industry, 50 or below for the retail industry, and 100 or below for the service industry).

Fair Value of Other Securities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31, 2010

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 42,543.2
2,541.3
31,329.2
8,672.6¥ 42,803.2
2,840.8
31,402.6
8,559.7¥

Gross unrealized
Gains

Losses

744.9
519.3
120.1
105.4

484.9
219.8
46.7
218.3

¥

Net unrealized*2
gains (losses)

¥

259.9
299.4
73.3
(112.8)Billions of yen

As of March 31, 2009

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 29,274.3
2,791.3
19,223.3
7,259.6¥ 28,767.8
2,577.9
19,234.3
6,955.5¥

Gross unrealized
Gains

Losses

373.0
262.9
43.1
66.8

879.5
476.3
32.1
371.0

¥

Net unrealized*2
gains (losses)¥(506.5)(213.3)11.0(304.1)
Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost

Fair value¥ 13,268.9(249.9)12,105.9
1,412.9¥ 14,035.4
262.8
12,168.3
1,604.2

Gross unrealized
Gains

¥

371.9
256.3
76.9
38.6

¥

Losses(394.5)(256.4)14.5(152.6)

Net unrealized
gains (losses)

¥

766.4
512.8
62.3
191.2

Notes: 1. In addition to the balances shown in the above table, Other Securities includes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥29.3 billion and ¥91.4 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2010 and 2009, respectively, byapplying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax adjustments as of March 31, 2010 and 2009 were ¥230.6 billion and¥(597.9) billion, respectively.

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

As of March 31,

Other Securities
Japanese Stocks
Japanese Bonds
Other

2010

¥

230.6
299.4
55.1
(123.9)2009¥(597.9)(213.3)(55.3)(329.2)

Change

¥

828.6
512.8
110.4
205.3

91

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

Segment Information by Global Group
Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2010

Gross Profits
Net Interest Income
Net Non-interest Income

¥

920.5
470.6
449.9

¥

642.3
444.8
197.5

¥

285.7
175.0
110.7

¥

117.5
85.8
31.7

MHSC

Others177.8 ¥
(10.7)
188.5

100.4
36.5
63.9

Tradingand others

¥

239.1
184.0
55.1

¥

General and Administrative Expenses

478.1

246.9

97.5

54.4

95.0

153.4

77.8

Others(11.8)

0.0

0.0

0.0

0.0

0.0

(11.8)Net Business Profits

¥

430.6

¥

395.4

¥

188.2

¥

63.1

¥

144.1

¥

24.4

¥

10.8

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2009

Gross Profits
Net Interest Income
Net Non-interest Income

¥

724.5
381.3
343.2

¥

528.2
316.5
211.7

¥

275.2
172.7
102.5

¥

130.5
90.1
40.4

MHSC

Others68.3 ¥
(9.7)
78.0

128.0
74.5
53.5

Tradingand others

¥

122.5
53.7
68.8

¥

General and Administrative Expenses

381.4

246.9

92.0

66.0

88.9

59.5

75.0

Others(35.4)

0.0

0.0

0.0

0.0

0.0

(35.4)Net Business Profits

¥

307.7

¥

281.3

¥

183.2

¥

64.5

¥

33.6

¥

8.8

¥

17.6

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Notes: 1. Data on this page are calculated in accordance with the standards for disclosures described in ASC280 (Disclosuresabout Segments of an Enterprise and Related Information), same as the business segment information contained in
the registration statement on Form 20-F, which was filed with the U.S. Securities and Exchange Commission.
2. “Others” in each of the Global Groups includes elimination of transactions between companies within the respective
Global Groups. “Others” in MHFG includes elimination of transactions between the Global Groups.
3. Data on this page are based on the internal management figures and are the aggregates of the described segments inaccordance with the management accounting rules of the respective fiscal years. As fractions on this page have beenrounded to the nearest whole, some of the figures on this page are different from those on the other charts andso on.

92

Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking

¥

¥

900.4
641.6
258.8

¥

818.8
612.9
205.9

¥

288.5
263.5
25.0

Corporatebanking

Tradingand others

¥

¥

392.9
266.4
126.5

137.4
83.0
54.4

¥

47.6
0.4
47.2

Others

¥

34.0
28.3
5.7

Total of the Global Asset & Wealth Management GroupMHTB
Others

¥

176.7
46.2
130.5

¥

132.0
44.9
87.1

¥

OthersConsolidated
Figures of
MHFG

44.7 ¥
1.3
43.4(1.0) ¥ 1,996.6(6.7)
1,151.7
5.7
844.9

617.7

570.4

245.8

228.9

95.7

40.0

7.3

128.5

89.9

38.6

(11.1)

1,213.2

(2.0)

0.0

0.0

0.0

0.0

0.0

(2.0)

(2.8)

0.0

(2.8)

(64.2)(80.8)

3.3 ¥(54.1) ¥

702.6

280.7

¥

248.4

¥

42.7

¥

164.0

¥

41.7

¥

7.6

¥

24.7

¥

45.4

¥

42.1

¥

Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking

¥

¥

900.3
648.1
252.2

¥

827.7
603.7
224.0

¥

352.5
327.3
25.2

Corporatebanking

Tradingand others

¥

¥

442.3
297.9
144.4

32.9 ¥(21.5)
54.4

31.3
0.4
30.9

Others¥Total of the Global Asset & Wealth Management GroupMHTB
Others41.3 ¥
44.0
(2.7)

176.9
49.8
127.1

¥

130.1
48.6
81.5

¥

46.8 ¥
1.2
45.6

OthersConsolidated
Figures of
MHFG

5.3 ¥ 1,807.0(10.3)
1,068.9
15.6
738.1

615.9

571.1

235.7

234.2

101.2

44.0

0.8

132.0

91.3

40.7

(5.7)

(13.8)

0.0

0.0

0.0

0.0

0.0

(13.8)

(3.2)

0.0

(3.2)

(8.4)

(60.8)

208.1 ¥

(68.3) ¥(12.7) ¥

26.7

2.9 ¥

2.6 ¥

622.6

270.6

¥

256.6

¥

116.8

¥

¥

41.7

¥

38.8

¥

1,123.6

93Financial Analysis

Results for the Fiscal Year ended March 31, 2010

The Impact of the Dislocation in Global Financial Markets Stemming from US Subprime
Loan Issues
The following is an excerpt from information (managerial accounting basis) that we disclosed in presentation materials used in
our IR presentation regarding our financial results for the fiscal year ended March 31, 2010 that we held on May 26, 2010
regarding the detailed status of our holdings of securitization products, etc. The presentation materials can be found under “IR
Presentations” on our website.

• Summary
Income Statement Impact of the Dislocation in Global Financial Markets
Managerial accounting basis, billions of yen, round figures

FY2009Total Realized Gains/Losses in FY2009(A)+(B)

Banking Subsidiaries: 3 Banks (incl. Overseas Subsidiaries)(1) Gains/Losses on Sales of Securitization Products, etc. (incl. Devaluation)(3) Gains/Losses associated with ABCP Programs

(13)
(A)

(16)

(B)

2

Securities Subsidiaries: Mizuho Securities (incl. Overseas Subsidiaries)(5) Trading Gains/Losses on Securitization Products, Net of Hedges

94

0
0

(4) Gains/Losses from Hedging by CDS Related to Securitization Products

Subtotal(14)(3)(2) Net Gains from Reversal of (Losses on Provision of) Reserve for Possible Losses on Sales of Loans

Subtotal¥2• Foreign Currency Denominated Securitization Products
Banking Subsidiaries, Securities Subsidiaries
Banking Subsidiaries = 3 Banks (incl. Overseas Subsidiaries)
Securities Subsidiaries = Mizuho Securities (incl. Overseas Subsidiaries)
Managerial accounting basis, billions of yen, round figures

Balances
as ofMar. 10*1,2(Fair Value)

1 Foreign Currency
Denominated
Securitization Products
2

ABSCDOs, CDOs

¥ 487

Banking Subsidiaries: Banking AccountMarks (%)
Unrealized
Realized
as ofGains/Losses
Gains/Losses
Mar. 10as offor FY09*1,2(=Fair Value
Mar. 10*2/Face Value)(Reference)
HedgedProportions*3

Securities Subsidiaries: Trading AccountBalances
Marks (%)
Realized
as of
as of
Gains/Losses
Mar. 10
Mar. 10for FY09(Fair Value)(=Fair Value/Face Value)63%¥ (11)¥ (4)approx.
60%

¥ 21

9%

¥2

30

15

2

(2)

approx.
40%

0

0

(0)

6

4

3

0

—

0

0

(0)

3

CDOs backed by RMBS

4

CDOs backed by CMBS

—

—

—

—

—

0

0

(0)

5

CDOs backed byClaims against Corporations*4

24

41

(1)

(2)

approx.
60%

—

—

—

183

71

(6)

(1)

approx.
70%

0

0

0

6

RMBS*5

7

RMBS with Underlying Assets
outside US, mainly in Europe

183

71

(6)

(1)

approx.
70%

—

—

—

8

RMBS with Underlying Assets
in US

—

—

—

—

—

0

0

0

274

84

(7)

(1)

approx.
50%

21

75

2

9

ABS, CLOs and Others

10

CLOs

185

98

(3)

(0)

approx.
50%

21

77

(1)

11

ABS

43

73

(1)

2

approx.
60%

—

—

—

12

CMBS

46

75

(3)

(3)

approx.
70%

0

2

(0)

13

SIV-related

—

—

—

—

—

—

—

3

*1. Except for the securitization products which were the reference assets of our securitization schemes for transferring credit risk to third parties (hedged portion), a Reserve for Possible Losses on
Investments has been provided against unrealized losses on securitization products related to the discontinuation of business regarding credit investments primarily in Europe, which had been made as
an alternative to loans. The balance of reserve was approx. ¥15 billion as of Mar. 31, 2010. Since securities were recognized at fair value on the consolidated balance sheet, the relevant balances as ofMar. 31, 2010 were those after being offset by the amount of Reserve for Possible Losses on Investments*2. With respect to the vast majority of credit investments in securitization products made as an alternative to loans by the European, North American, and other offices, we changed the calculation
method for fair value and applied reasonably calculated prices based on the reasonable estimates of our management as fair value from FY2008*3. The proportions of balances (fair value) of the securitization products, as of Mar. 31, 2010, which were the reference assets of our securitization schemes (with CDS and other means) for transferring
credit risk to third parties until maturity. In some of the securitization schemes, a portion of credit risk of the reference assets remained with Mizuho Financial Group through our retaining a small firstloss position and a portion of senior tranches<Reference> CDS counterparties (Notional amount basis. Ratings were based on the lowest external ratings as of Mar. 31, 2010)• Financial services subsidiary (A- rating) of a multi-line insurance company: approx. ¥144 billion• Government-affiliated financial institution (AA- rating): approx. ¥91 billion*4. Securitization products backed by original assets (non-securitized assets)*5. Excluded US government-owned corporation bonds and government-sponsored enterprises bonds. Our holdings of US government-owned corporation bonds and government-sponsored enterprises
bonds as of Mar. 31, 2010 were as follows:
Banking Subsidiaries: Total balance of US government-owned corporation (Ginnie Mae) bonds and government-sponsored enterprises (GSE) (Fannie Mae, Freddie Mac) bonds (fair value) :approx. ¥583 billion, with approx. ¥9 billion of unrealized gains
Almost all of the total balance was RMBS guaranteed by Ginnie Mae
Securities Subsidiaries: Total balance of RMBS issued or guaranteed by Ginnie Mae or GSE (Fannie Mae, Freddie Mac) (fair value): approx. ¥40 billion, total balance of corporate bonds issued by
Fannie Mae or Freddie Mac (fair value): approx. ¥171 billion
Held for the purpose of, among other things, market-making activities in the US

95

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

• Yen Denominated Securitization Products
Banking Subsidiaries, Securities Subsidiaries
Banking Subsidiaries = 3 Banks (incl. Overseas Subsidiaries)
Securities Subsidiaries = Mizuho Securities (incl. Overseas Subsidiaries)
Managerial accounting basis, billions of yen, round figures

Banking Subsidiaries: Banking AccountBalances as of Mar. 10 Unrealized Gains/Losses(Fair Value)
as of Mar. 10

1 Yen Denominated Securitization Products
2¥

ABSCDOs, CDOs

1,982

¥

*1

(12)

85

5

Securities Subsidiaries: Trading AccountBalances as of Mar. 10
Realized Gains/Losses(Fair Value)
for FY09

¥

128

¥

17

0
9

3

CDOs backed by RMBS

—

—

1

(0)

4

CDOs backed by CMBS

1

(0)

—

—

5

84

5

16

9

6

RMBS*2

CDOs backed by Claims against Corporations

972

(1)

5

(0)

7

ABS, CLOs and Others

(8)

926

(15)

105

8

CLOs

39

(0)

5

1

9

ABS

236

1

89

(9)

10

CMBS

651

(16)

11

(0)

*1. Realized gains for Banking Subsidiaries for FY2009: approx. ¥1 billion*2. Represents RMBS originated by Japanese financial institutions and others (Japan Housing Finance Agency Bonds were excluded)<Reference> Balances of the Japan Housing Finance Agency Bonds as of Mar. 31, 2010
Banking Subsidiaries Balance (fair value): approx. ¥476 billion, Unrealized gains: approx. ¥3 billion
Securities Subsidiaries Balance (fair value): approx. ¥1 billion, Realized gains/losses: negligible(Reference)Managerial accounting basis, billions of yen, round figures

Banking Subsidiaries: Banking AccountBalances as of Mar. 10 Unrealized Gains/Losses(Fair Value)
as of Mar. 10

Total Securitization Products(Yen and Foreign Currency Denominated)

96

¥

2,469

¥

(23)

Securities Subsidiaries: Trading AccountBalances as of Mar. 10
Realized Gains/Losses(Fair Value)
for FY09

¥

149

¥

2

• Loans Held for Sale / Overseas ABCP Program / US Monoline / CDS / Others (Managerial accounting basis)
Banking Subsidiaries = 3 Banks (incl. Overseas Subsidiaries)
Loans Held for Sale related (Mar. 10)<Balances of Loans Held for Sale including Overseas LBO Transactions>(for which Reserve for Possible Losses on Sales of Loans was recorded)• Balance: approx. ¥61 billion• Reserve for Possible Losses on Sales of Loans: approx. ¥15 billion• Reserve ratio: approx. 25%• The figures shown above exclude those related to Intensive Control Obligors classification or below
The reserve ratio would be approx. 25%, if including the balances of Loans Held for Sale to such obligors and the amounts ofboth Reserves for Possible Losses on Loans and Reserve for Contingencies in relation to the relevant balances(Reference) <Leveraged Loans (Held for Sale + Own Loan Portfolio)>• Balance: approx. ¥1.0 trillion (of which held for sale: approx. ¥0.05 trillion)• Balance primarily include LBO financing and MBO financing
Includes commitments that had not been drawn but the documentations had been concluded

Overseas ABCP Program related (Mar. 10)<Assets Acquired by Overseas ABCP Conduits>• Balance: approx. ¥59 billion(of which securitization products backed by credit card receivables and account receivables: approx. ¥32 billion)• Breakdown of acquired assets:
15%
31%

Credit card receivables
Account receivables
Loans against auto dealers
Others25%

29%

US Monolines related (Mar. 10)<Loans Guaranteed by US Monolines>• Approx. ¥16 billion loan commitments to overseas infrastructure projects(of which approx. ¥8 billion was drawn down)

Mortgage Lenders in US related (Mar. 10)• Loan Balance: approx. ¥10 billion

97

Financial Analysis

Results for the Fiscal Year ended March 31, 2010

Securities Subsidiaries = Mizuho Securities (incl. Overseas Subsidiaries)
CDS related to Foreign Currency Denominated Securitization Products (Mar. 10)
By Credit Ratings of Counterparties*1 and Reference Assets
Managerial accounting basis, billions of yen, round figures

Notional
Amount1 Total

¥ 126

¥ 112

Amount to be
Reserves
Claimed at thefor NPV
Settlement (NPV) (Counterparty Risks)
(C)
(D)

¥

13

¥

0

2

of which Counterparties are US Monolines

20

19

1

0

3

AAA

—

—

—

—

—

—

—

—
—

4
5
6

CDOs backed by RMBS
CDOs backed by Claims against Corporations
AA

—

—

—

107

105

2

0

7

CDOs backed by RMBS

—

—

—

—

8

CDOs backed by Claims against Corporations

107

105

2

0

9

of which Counterparties are US Monolines

20

19

1

0

18

7

11

0

18

7

11

0

10
11
12
13
14
15

A-BBB
CDOs backed by RMBS
CDOs backed by Claims against Corporations
Non-Investment Grade or No Ratings
CDOs backed by RMBS
CDOs backed by Claims against Corporations*1. Categorized by the lowest external credit ratings as of Mar. 31, 2010
When the counterparty was guaranteed by third parties, categorized by the higher credit ratings of either of them

98

(A)

Fair Valueof Reference
Asset
(B)

—

—

—

—

—
—

—
—

—
—

—
—

—

—

—

—

Financial Analysis

Status of Asset Quality• Disposal of Non-performing Loans (NPLs) in the Fiscal Year ended March 31, 2010
Consolidated Credit-related Costs decreased by ¥317.4 billion from the end of the previous fiscal year to ¥219.3 billion andCredit-related Costs in the aggregated figures of MHCB, MHBK and MHTB (the Three Banks) decreased by ¥382.1 billion to¥157.1 billion. This was primarily due to an improvement in economic conditions and to our efforts for appropriate
credit management.

• Outstanding Balance of NPLs
Status of Disclosed Claims
The Three Banks' aggregated figures of Disclosed Claims under the Financial Reconstruction Law (FRL) decreased by ¥64.8 billion
from the end of the previous fiscal year to ¥1,319.9 billion. The classifications of those loans are shown in the table on page 102.
Of the total, Claims against Bankrupt and Substantially Bankrupt Obligors and equivalent, and Claims with Collection Risk
decreased by ¥16.7 billion to ¥890.1 billion. At the same time, Claims for Special Attention decreased by ¥48.1 billion to ¥429.8
billion.
NPL Ratio
The aggregated NPL ratio for the Three Banks as of the end of March 2010 increased by 0.14 points to 1.91%.
* Trust account denotes trust accounts with contracts indemnifying the principal amounts, excluding outstanding balances byIndustry and status of loans by nationality of borrowers.

• Activities in Removal of NPLs from the Balance SheetWith respect to collection and disposal of impaired loans, our specialist unit maintains central control and pursues corporate revitalization and collection efforts, as appropriate, toward taking the non-performing loans off-balance.
In particular, we consider support for corporate revitalization to be an important mission for a financial institution. We aredoing our utmost to provide such support including verification of business plans of corporations tackling revitalization, provisionof advice pertaining to reconstruction measures and utilization of corporate revitalization schemes including transfer of businessand M&A. These efforts have achieved steady results.
In addition, we strive to realize efficient and expeditious final disposals of NPLs through bulk sales and activities of Mizuho
Servicing Co., Ltd., a servicer of the group.

Results of Removal of NPLs from the Balance Sheet
The Three Banks removed ¥614.8 billion in NPLs in fiscal 2009.
As a result, the removal ratio for NPLs amount categorized before fiscal 2008 has become about 95% as of the end of March
2010, so removal from the balance sheet is almost complete.
The group will steadily proceed with removal of NPLs from the perspective of improvement of asset quality.

99

Financial Analysis

Status of Asset Quality• Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2010

Credit-related Costs
Expenses related to Portfolio Problems (including Provisionfor (Reversal of) General Reserve for Possible Losses on Loans)¥

Losses on Write-offs of Loans
Reversal of Reserves for Possible Losses on Loans, etc.
Credit Costs for Trust Accounts

219.3

¥

2009

Change536.7¥ (317.4)

262.3

554.3

(291.9)129.3(43.0)—

272.3(17.6)—(142.9)(25.4)
—

2010

2009

Change

539.3
—
107.0
255.0
158.8
0.5
2.8
14.9

¥ (382.1)—(154.6)(166.7)(59.3)
(0.8)
(4.4)
3.9

Credit-Related Costs (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Credit Costs for Trust Accounts
Reversal of General Reserve for Possible Losses on Loans
Losses on Write-offs of Loans
Provision for (Reversal of) Specific Reserve for Possible Losses on Loans
Reversal of Reserve for Possible Losses on Loans to Restructuring Countries
Provision for (Reversal of) Reserve for Contingencies
Other (including Losses on Sales of Loans)

¥

157.1
—
(47.6)
88.2
99.4
(0.3)
(1.5)
18.8

¥

• Overview of NPLs as of March 31, 2010 (the Three Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Categorization

NonCategory II
Categorization

Bankrupt and Substantially
Bankrupt Obligors
258.0

Collateral, Guarantees, etc.:
235.3
Reserves for Possible Losses:
22.7

Reserve
Ratio
100%

540.7

88.1

Collateral, Guarantees, etc.:
313.1
Reserves for Possible Losses:
227.6

Reserve
Ratio
72.0%

ObligorCategory III

Category IV

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

DirectWrite-offs

Claims against Bankrupt
and Substantially Bankrupt
Obligors
258.0

Loans to Bankrupt Obligors
74.5

258.0

Watch Obligors

Intensive Control
Obligors
628.9

Claims for Special
Attention
429.8

Reserve Ratio against
Uncovered Portion
32.5%
Collateral, Guarantees, etc.:
114.1
Reserves for Possible Losses:
102.6

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 52.9%·Reserve Ratiofor Uncovered Portion: 34.1%·Reserve Ratio
against Entire Claim: 24.4%

Claims with Collection Risk
628.9

Non-Accrual
Delinquent Loans
726.1

Coverage Ratio 85.9%
86.4 (Note 2)

Claims for Special
Attention (Note 1)
429.8
Coverage Ratio 50.4%

Loans Past Due forThree Months or More
10.1
Restructured Loans
419.4

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
68,904.2

Reserve Ratio
against Total Claims·Other Watch Obligors: 4.60%·Normal Obligors: 0.21%

Total Coverage
Ratio 77.1%

Total
1,316.8

Total
1,230.3

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under
the FRL.

100

• Status of Disclosed Claims under the FRL
Disclosed Claims under the FRL (Consolidated)(Consolidated)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2010

¥

273.1
633.7
485.3

2009

¥

Change

320.0
600.8
499.9

¥

(46.9)
32.9(14.6)¥ 1,392.2¥ 1,420.9¥(28.6)

20102009

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

562.8

¥

535.9

Change¥26.9))(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

2010

2009

Change

¥

—
3.1
—

¥

0.0
3.1
—

¥

(0.0)
(0.0)
—

¥

3.1

¥

3.1

¥

(0.0))(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

2010

¥

273.1
636.9
485.3

¥ 1,395.3

2009¥

Change

320.0
604.0
499.9

¥

(46.9)
32.8(14.6)¥ 1,424.0¥(28.6)

101

Financial Analysis

Status of Asset Quality

Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

2010

¥

258.0
632.0
429.8

2009

¥

308.7
598.0
477.9

Change¥(50.6)
33.9(48.1)

Subtotal

1,319.9

1,384.7(64.8)

Normal Claims

67,613.4

76,767.6(9,154.2)¥ 68,933.3¥ 78,152.4

Total

¥

(9,219.1)

Notes: 1. Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
2. Reserve for Indemnification of Impairment and Reserve for Possible Losses on Entrusted Loans of ¥0.2 billion and ¥0.4 billion as of March 31, 2010 and 2009, respectively, are not included in
the above figures for Trust Accounts.
Billions of yen

2010

Amount of Partial Direct Write-offs

¥

527.6

2009

¥

504.3

Change¥23.2

Ratio of Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)%

As of March 31,

2010

2009

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

0.37%
0.91
0.62

0.39%
0.76
0.61

Change(0.02)%
0.15
0.01

Subtotal

1.91

1.77

0.14

Normal Claims

98.08

98.22

(0.14)

100.00%100.00%/Total
Note: Above figures are presented net of partial direct write-offs.

Disclosed Claims under the FRL and Coverage Amount (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims with Collection Risk
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims for Special Attention
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Total
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Note: Above figures are presented net of partial direct write-offs.

102

2010

2009

Change

¥

258.0
235.3
22.7
628.9
313.1
227.6
429.8
114.1
102.6

¥

308.7
279.8
28.9
594.9
260.1
216.2
477.9
112.8
119.4

¥

(50.6)(44.4)
(6.2)
34.0
52.9
11.3
(48.1)
1.2(16.7)¥

1,316.8
662.6
353.0

¥

1,381.6
652.7
364.6

¥

(64.8)
9.8(11.6)

Coverage on Disclosed Claims under the FRL (the Three Banks) (Banking Accounts)
Billions of yen, %As of March 31,

Coverage AmountReserves for Possible Losses on Loans
Collateral, Guarantees, and equivalent

2010

¥

1,015.6
353.0
662.6

2009

¥

1,017.4
364.6
652.7

Change¥(1.8)(11.6)
9.8

Coverage Ratio
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

77.1%
100.0
85.9
50.4
52.9

73.6%
100.0
80.0
48.6
51.0

3.4%
—
5.9
1.8
1.8

Reserve Ratio against Non-collateralized Claims
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

100.0%
72.0
32.5
34.1

100.0%
64.5
32.7
33.5

—%
7.4)
(0.1)
0.6

(Reference) Reserve Ratio
Claims against Special Attention Obligors
Claims against Watch Obligors excluding Claims against Special Attention Obligors
Claims against Normal Obligors

24.41%
4.60
0.21

24.71%
4.83
0.21(0.30)%(0.22)
0.00)

Note: Above figures are presented net of partial direct write-offs.

103

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

2010

¥

76.8
740.7
10.1
475.0

2009

¥

Change

112.1
700.3
18.7
480.1

¥

(35.3)
40.3
(8.5)
(5.0)

¥ 1,302.8¥ 1,311.4

¥

(8.5)

2010

2009

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

488.0

¥

464.9

Change¥23.1

Ratio to Total Loans%

As of March 31,

2010

2009

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.12%
1.19
0.01
0.76

0.15%
0.99
0.02
0.68

(0.03)%
0.19(0.01)
0.08

2.09%

1.85%

0.23)%

2010

2009

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries

¥

887.0
563.8
323.0
0.1

¥

889.5
583.2
305.6
0.5

Change¥(2.5)(19.4)
17.3(0.4)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2010

Amount of Partial Direct Write-offs

¥

568.4

2009

¥

540.0

Change¥28.4

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2010

2009

ChangeAfter Partial Direct Write-offs

68.08%

67.83%

0.25)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

104

(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

2010

2009

Change

¥

—
3.1
—
—

¥

—
3.1
—
—

¥

—
(0.0)
—
—

¥

3.1

¥

3.1

¥ (0.0)

Ratio to Total Loans%

As of March 31,

2010

2009

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
10.68
.—
.—

.—%
9.38
.—.
.—

.—%
1.29
.—
.—

10.68%

9.38%

1.29%

2010

2009

Change

112.1
703.4
18.7
480.1

¥ (35.3)
40.3
(8.5)
(5.0)

¥ 1,306.0¥ 1,314.5¥ (8.5)

As of March 31,

2010

2009

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.12%
1.19
0.01
0.76

0.15%
0.99
0.02
0.68

(0.03)%
0.19(0.01)
0.08

2.09%

1.86%

0.23)%

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

¥

76.8
743.8
10.1
475.0

¥

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.

105

Financial Analysis

Status of Asset Quality• Status of Non-Accrual, Past Due & Restructured Loans (the Three Banks)(Banking Accounts and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2010

¥

74.5
729.2
10.1
419.4

2009

¥

Change

108.7
683.2
18.7
458.0

¥

(34.2))
46.0(8.5)(38.5)¥ 1,233.4¥ 1,268.8¥(35.3)

20102009

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

Amount of Partial Direct Write-offs

¥

453.4

¥

434.3

Change¥19.1

Ratio to Total Loans%

As of March 31,

2010

2009

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.11%
1.17
0.01
0.67

0.15%
0.96
0.02
0.64

(0.03)%
0.20(0.01)
0.02

1.97%

1.79%

0.18)%

2010

2009

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

(Banking Accounts)
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

¥

775.5
531.6
243.7
0.1

¥

819.5
579.2
239.7
0.5

Change¥(44.0)(47.6)
3.9(0.4)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2010

Amount of Partial Direct Write-offs

¥

532.4

2009

¥

507.5

Change¥24.9

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2010

2009

ChangeAfter Partial Direct Write-offs

63.03%

64.75%(1.72)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

106• Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)

As of March 31,

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarryng Industry& Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

Billions of yen, %Billions of yen, %2010
Outstanding
Balance Composition¥ 54,627.3
7,664.7
24.0
1.0

100.00%
14.03
0.04
0.00

151.5
1,034.6
888.9
655.2
2,926.2
4,897.6
6,081.4
6,676.8
1,722.7
3,415.4
1,003.0
4,447.0
13,036.7

0.28
1.89
1.63
1.20
5.36
8.97
11.13
12.22
3.15
6.25
1.84
8.14
23.87

7,537.2
245.9
1,359.8
5,931.4

100.00
3.26
18.04
78.70

¥ 62,164.5//

Notes: 1. Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding theiroverseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and
MHFG's overseas consolidated subsidiaries.
2. According to the revision of the Japan Standardized Industrial Classification (November2007), partial amendment has been made to classification of the industry beginningwith September 30, 2009.
3. Loans to private lessors which were categorized by the industries of obligors are now
categorized in Real Estate from September 30, 2009.

As of March 31,

2009
Outstanding
Balance Composition

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 60,992.4
8,487.0
29.3
0.8
2.3
137.7
1,337.8854.3
749.9
2,870.1
5,617.1
7,306.2
6,215.6
5,377.6
670.8
7,969.8
13,365.4

Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other

9,527.7
255.1
1,662.6
7,610.0

100.00
2.68
17.45
79.87

¥ 70,520.2

//

Total

100.00%
13.91
0.05
0.00
0.00
0.23
2.19
1.40
1.23
4.71
9.21
11.98
10.19
8.82
1.10
13.07
21.91

Notes: 1.Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding theiroverseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and
MHFG's overseas consolidated subsidiaries.
2. Loans to special purpose entities for securitization of assets and others, which had been
included in Service Industries, are included in Finance & Insurance.

107Financial Analysis

Status of Asset Quality

Outstanding Balances by Industry (the Three Banks) (Banking Accounts and Trust Accounts)

As of March 31,

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarryng Industry& Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

Billions of yen, %Billions of yen, %2010
Outstanding
Balance Composition¥ 57,684.1
7,658.3
24.0
1.0

100.00%
13.28
0.04
0.00

151.5
1,034.0888.9
1,659.6
2,926.1
4,897.2
7,501.9
6,744.9
1,722.7
3,445.7
1,016.9
4,384.7
13,625.9

0.26
1.79
1.54
2.88
5.07
8.49
13.01
11.69
2.99
5.98
1.76
7.60
23.62

6,683.6
245.7
1,687.3
4,750.5

100.00
3.68
25.24
71.08

¥ 64,367.8//

Notes: 1. Loans to Finance & Insurance sector include loans to MHFG as follows:
As of March 31, 2010: ¥700.0 billion (from MHBK)
2. According to the revision of the Japan Standardized Industrial Classification (November2007), partial amendment has been made to classification of the industry beginningwith September 30, 2009.
3. Loans to private lessors which were categorized by the industries of obligors are now
categorized in Real Estate from September 30, 2009.

108

As of March 31,

2009
Outstanding
Balance Composition

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 64,192.4
8,483.8
29.3
0.8
2.3
137.7
1,337.8
854.3
1,939.2
2,870.3
5,614.7
8,669.0
6,276.8
5,423.6
686.1
7,879.8
13,986.3

Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other

8,546.1
254.9
1,990.4
6,300.7

100.00
2.98
23.29
73.73

¥ 72,738.5

//

Total

100.00%
13.22
0.05
0.00
0.00
0.21
2.08
1.33
3.02
4.47
8.75
13.50
9.78
8.45
1.07
12.28
21.79

Notes: 1. Loans to Finance & Insurance sector include loans to MHFG as follows:
As of March 31, 2009: ¥700.0 billion (from MHBK)
2. Loans to special purpose entities for securitization of assets and others, which had been
included in Service Industries, are included in Finance & Insurance.

Disclosed Claims under the FRL by Industry and Coverage Ratio (the Three Banks) (Banking Accounts and Trust Accounts)

As of March 31,

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarryng Industry& Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Other

Billions of yen, %Billions of yen, %2010
Disclosed Claims
under the FRL Coverage Ratio

2009
Disclosed Claims
under the FRL Coverage Ratio¥

Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

¥

1,207.0
214.0
0.3
0.0

78.7%
62.5
91.7
100.0

0.0
59.6
0.8
40.5
111.9
145.5
20.7
235.1
19.2
156.6
30.6
171.4

100.0
76.7
66.5
69.8
92.4
71.5
59.8
87.9
81.2
66.8
100.0
95.5

112.9
—
1.2
111.6

60.1
—
72.4
60.0

1,319.9

77.1%

As of March 31,

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Other¥ 1,241.3
165.1
0.3
—
0.0
0.0
74.7
2.0
38.7
104.4
143.7
10.3
285.2
219.4
30.6
166.1

Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other

143.4
—
1.0
142.4

Total

¥ 1,384.7

75.4%
69.9
99.4
—
100.0
100.0
70.4
73.0
49.1
52.7
71.0
52.2
89.1
65.2
100.0
94.0

58.7
—
116.1
58.3
73.6%

Note: According to the revision of the Japan Standardized Industrial Classification (November2007), partial amendment has been made to classification of the industry beginning with
September 30, 2009.

109

Financial Analysis

Status of Asset Quality

Non-Accrual, Past Due & Restructured Loans by Industry (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarryng Industry& Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

2010

¥ 1,128.2
200.7
0.3
0.0
0.0
58.6
0.8
39.8
103.2
136.4
19.6
233.0
18.9
153.7
3.0
—
159.5
105.2
—
0.9
104.3
¥ 1,233.4

Note: According to the revision of the Japan Standardized Industrial Classification (November2007), partial amendment has been made to classification of the industry beginning with
September 30, 2009.

110

Billions of yen

As of March 31,

2009

Domestic Total (excluding
Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 1,155.6
156.4
0.3
—
0.0
0.0
73.5
2.0
37.2
101.6
132.6
25.4
279.6
199.9
3.0
—
143.5

Overseas Total (including
Loans Booked Offshore)
Governments
Financial Institutions
Other

113.2
—
1.0
112.1

Total

¥ 1,268.8

• Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2010

Billions of yen, %As of March 31, 2009

Billions of yen, %UkrainePakistan
Others (2 Countries)

¥

1.5
0.0
0.0

UkrainePakistan
Others (2 Countries)

¥

3.6
0.0
0.0

Total
Ratio to Total Assets

¥

1.5
0.00%

Total
Ratio to Total Assets

¥

3.7
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.

Balance of Loans to Restructuring Countries (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen, Number of countries

As of March 31,

2010

Loan Amount
Number of Restructuring Countries

¥

2009

1.5
4

¥

3.7
4

Change¥(2.1)—

Notes: 1. Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.
2. Number of Restructuring Countries refers to obligors' countries of residence.

Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Nationality of Borrowers (the Three Banks)(Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

2010
Non-Accrual,
Outstanding
Past Due &Balance
Restructured Loans

Outstanding
Balance

Asia
Hong Kong
Korea
SingaporeThai¥ 1,779.5
385.6
269.0
266.7
275.8

20.1
3.5
1.3
4.8
2.6

¥ 1,940.6
460.1
248.2
299.4
265.4

¥

2009
Non-Accrual,
Past Due &Restructured Loans

¥

17.2
1.8
—
7.0
1.8

ChangeNon-Accrual,
Outstanding
Past Due &Balance
Restructured Loans¥(161.0)(74.4)
20.7(32.6)
10.4

¥

2.9
1.6
1.3
(2.2)
0.7

Central and South America

2,505.3

8.3

2,563.3

0.1(58.0)

8.2

North America

2,022.9

7.6

2,582.3

21.7(559.4)(14.1)

Eastern Europe

75.1

15.1

86.0

5.9

(10.9)

9.2

Western Europe

2,188.2

48.5

3,011.3

58.4(823.0)

(9.9)

Other

831.9

19.7

854.5

9.5

(22.6)

10.1

Total

¥ 9,403.1¥ 119.6¥ 11,038.3¥ 113.1¥ (1,635.1)¥

6.4

Note: Loans by Mizuho Corporate Bank (China), Ltd. which was established in June 2007 is not included in the above table.

111

Financial Analysis

Status of Asset Quality• Results of Removal of NPLs from the Balance Sheet
Outstanding Balances of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk
(under the FRL) (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Up to Fiscal As of September As of March As of September As of March As of September As of March
2006
30, 2007
31, 2008
30, 2008
31, 2009 30, 2009 (a) 31, 2010 (b)Amount Categorized as below
up to Fiscal 2006

¥ 10,374.0¥ 327.7¥ 223.9¥ 188.5of which the amount in the processof being removed from the balance sheet

1,065.3

58.9

40.9

32.2

28.9

25.5

22.5

(2.9)

2,402.2
7,971.7

103.1
224.6

80.2
143.6

70.8
117.7

68.9
96.4

61.6
82.5

58.4
71.9

(3.2)
(10.6)

432.2

91.9

62.9

47.5

37.9

32.0

(5.8)

26.4

17.7

15.2

9.9

8.9

7.4

(1.5)

57.9
374.3

22.2
69.6

17.7
45.1

11.1
36.4

9.8
28.1

9.9
22.0

0.1
(6.0)

196.9

118.3

77.1

58.3

37.8

(20.4)

31.2

31.1

31.5

26.9

16.4

(10.5)

34.7
162.1

36.2
82.1

34.3
42.8

30.5
27.8

18.4
19.4

(12.1)
(8.3)

270.1

152.9

115.8

71.2

(44.5)

75.7

61.3

44.8

30.1

(14.7)

80.4
189.7

67.5
85.3

50.7
65.0

36.8
34.3

(13.8)(30.7)

463.8

267.0

161.9

(105.0)

96.5

72.6

55.7

(16.8)

126.8
336.9

82.2
184.7

61.9
100.0

(20.3)(84.7)

389.0

247.4

(141.6)

39.2

31.5

(7.7)

43.6
345.3

36.6
210.7

(6.9)
(134.6)

209.1

209.1

32.0

32.0

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2008of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2008of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2009

¥ 165.3 ¥ 144.2

of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2009of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Total

¥ 906.8 ¥1,012.5¥ 130.3 ¥ (13.8)

35.7
35.7
173.4
173.4
¥ 890.1 ¥ (122.3)/¥ 760.0¥ 512.8¥ 640.0of which the amount in the processof being removed from the balance sheet

/

85.4

89.9

154.3

228.3

218.1

195.8

(22.2)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

/
/

161.0
598.9

137.3
375.5

205.3
434.7

308.7
598.0

278.7
733.7

258.0
632.0

(20.6)(101.7)

Note: Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

112

Change(b)-(a)Progress in Removal from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)(the Three Banks) (Banking Accounts and Trust Accounts)
AmountNewly
Categolized

Up to Fiscal 2006
First Half of Fiscal 2007
Second Half of Fiscal 2007
First Half of Fiscal 2008
Second Half of Fiscal 2008
First Half of Fiscal 2009
Second Half of Fiscal 2009
Total

Balance
as of March 31,
2010

Billions of yen%

Accumulated
RemovalAmountAccumulated
Removal Ratio

ModifiedAccumulated
Removal Ratio¥ 10,374.0
432.2
196.9
270.1
463.8
389.0
209.1

¥

130.3
32.0
37.8
71.2
161.9
247.4
209.1

¥ 10,243.6
400.1
159.0
198.9
301.8
141.6
/

98.7%
92.5
80.7
73.6
65.0
36.4
/

98.9%
94.3
89.1
84.7
77.0
44.4
/

¥ 12,335.3

¥

890.1

¥ 11,445.2//

Notes: 1. Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

Breakdown of Reasons for Removal from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Newly Categorized as Claims against Bankrupt and Substantially Bankrupt Obligors or Claims with Collection Risk Amount Removed
Up toFirst Half of Second Half ofFirst Half of Second Half ofFirst Half of from BS in the Second
Fiscal 2006
Fiscal 2007
Fiscal 2007
Fiscal 2008
Fiscal 2008
Fiscal 2009 Half of Fiscal 2009

Liquidation

¥

(4.6)

¥

(1.1)

¥

(3.5)

¥

(3.3)

¥

(2.2)

¥

(1.2)

¥

(16.0)

Restructuring

(0.1)

(0.7)

—

(2.5)

(12.8)(0.3)(16.6)

Improvement in Business Performancedue to Restructuring
Loan Sales

—
(2.4)

—
(4.2)

—
(4.7)

(2.9)
(14.8)(0.0)(21.6)(0.0)(13.6)(2.9)(61.6)

Direct Write-off
Other
Debt Recovery
Improvement in Business Performance
Total

¥

5.3

4.3

5.6

15.9

(4.8)

(28.6)(2.1)(12.0)(10.6)
(1.3)

(4.0)
(2.4)
(1.5)

(17.8)(16.0)(1.8)(36.9)(7.6)(29.2)(63.4)(48.4)(15.0)(97.6)(71.5)(26.1)(232.0)(156.7)(75.2)(44.5)¥ (105.0)¥ (141.6)(13.8)

¥

(5.8)

¥

(20.4)¥¥(331.5)(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Liquidation

Up to First
Half of Fiscal 2007

Breakdown of Amount Removed
In Second Half
In First Half In Second Half
In First Halfof Fiscal 2007 of Fiscal 2008 of Fiscal 2008 of Fiscal 2009¥¥

(1,412.7)¥

Accumulated Removed
Amount from BS
In Second Halffrom Second Halfof Fiscal 2009of Fiscal 2000

(35.8)¥ (142.1)(49.2).9) ¥(15.0)¥ (16.0)¥ (1,671.2)

Restructuring(1,839.9)

(2.6)

(1.8)

(0.0)

(4.0)

(16.6)(1,865.1)

Improvement in Business Performancedue to Restructuring
Loan Sales(181.6)(4,222.0)(0.0)(60.9)—(19.4)(0.0)(39.5)(0.0)(40.2)(2.9)(61.6)(184.7)(4,443.8)

Direct Write-off

3,220.6

27.8

135.4

22.9

(7.4)

(2.1)

3,397.2

Other
Debt Recovery
Improvement in Business Performance(5,610.4)//(372.5)(138.8)(233.6)(114.9)(77.5)(37.3)(130.9)(92.5)(38.3)(216.5)(133.3)(83.2)(232.0)(156.7)(75.2)(6,677.4)//¥ (10,046.2)¥ (444.1)¥ (142.9)¥ (197.0)¥ (283.3)¥ (331.5)¥ (11,445.2)

Total

Notes: 1. Up to First Half of Fiscal 2006 denotes the term from the Second Half of Fiscal 2000 to the First Half of Fiscal 2007.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

113

Financial Analysis

Status of Asset Quality

Write-Offs of Loans (the Three Banks) (Banking Accounts)
Billions of yen

For the Fiscal Years ended March 31,

Write-offs of Loans
Note: The above figures are included in Other Expenses on the statement of income.

114

2010

¥

127.7

¥

2009

Change271.0¥ (143.2)

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]
Report of Independent Auditors

116

Consolidated Financial Statements

117

Notes to Consolidated Financial Statements

125

115

Financial Data of Mizuho Financial Group, Inc.

Report of Independent Auditors

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated balance sheets of Mizuho Financial Group, Inc. and consolidated subsidiaries asof March 31, 2010 and 2009, and the related consolidated statements of income, changes in net assets, and cash flows for theyears then ended, all expressed in yen. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial positionof Mizuho Financial Group, Inc. and consolidated subsidiaries at March 31, 2010 and 2009, and the consolidated results of theiroperations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2010
are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 1.

Ernst & Young ShinNihon LLC
June 22, 2010116

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2010

As of March 31,

AssetsCash and Due from Banks (Notes 18, 39, 41 and 42)¥ 5,211,477
Call Loans and Bills Purchased (Note 41)605,238
Receivables under Resale Agreements (Note 41)
7,129,676
Guarantee Deposits Paid under Securities Borrowing Transactions (Note 41)
5,744,901
Other Debt Purchased (Notes 41 and 42)
2,040,445
Trading Assets (Notes 11, 18, 41 and 42)
13,986,791
Money Held in Trust (Notes 41 and 42)
119,438
Securities (Notes 12, 18, 27, 41 and 42)
43,096,460
Loans and Bills Discounted (Notes 13, 18 and 41)
62,164,579
Foreign Exchange Assets (Note 14)
707,803
Derivatives other than for Trading Assets (Notes 41 and 43)
7,060,302
Other Assets (Notes 15, 18 and 42)
3,742,205
Tangible Fixed Assets (Notes 16, 18, 29 and 40)
927,337
Intangible Fixed Assets (Note 40)427,278
Deferred Tax Assets (Note 28)
533,030
Customers' Liabilities for Acceptances and Guarantees (Note 27)
3,643,706
Reserves for Possible Losses on Loans (Notes 17 and 41)(887,073)
Reserve for Possible Losses on Investments(29)
Total Assets
Liabilities and Net Assets
Liabilities
Deposits (Notes 18, 19 and 41)
Debentures (Notes 20 and 41)
Call Money and Bills Sold (Notes 18, 21 and 41)
Payables under Repurchase Agreements (Notes 18 and 41)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 18 and 41)
Trading Liabilities (Notes 11 and 41)
Borrowed Money (Notes 18, 22 and 41)
Foreign Exchange Liabilities (Note 14)
Short-term Bonds (Note 23)
Bonds and Notes (Notes 24 and 41)
Due to Trust Accounts
Derivatives other than for Trading Liabilities (Note 43)
Other Liabilities (Note 25)
Reserve for Bonus Payments
Reserve for Employee Retirement Benefits (Note 26)
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Frequent Users Services
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities (Note 28)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 29)
Acceptances and Guarantees (Note 27)
Total Liabilities

¥

2009

5,720,253
141,296
6,270,321
5,819,418
2,612,368
13,514,509
40,69330,173,632
70,520,224
980,0037,872,780
4,138,508
842,809
303,854
722,160
3,939,818(889,579)(3)

Thousands of
U.S. dollars (Note 1)
2010$

56,013,298
6,505,146
76,630,228
61,746,574
21,930,846
150,330,952
1,283,735
463,203,578
668,148,963
7,607,519
75,884,590
40,221,469
9,967,083
4,592,419
5,729,049
39,162,794(9,534,320)(319)¥ 156,253,572¥ 152,723,070$ 1,679,423,604¥ 86,627,588
1,517,797
5,786,370
12,075,802¥ 86,539,020
2,300,459
6,449,829
9,173,846$

6,615,512
7,579,695
9,663,867
172,990492,397
4,970,257
1,025,431
6,614,116
3,376,769
48,94634,263
2,112
15,25814,809—14,748
10,824
2,149
12,226
98,875
3,643,706

4,110,941
7,995,359
8,941,972
591,132
428,785
4,597,403
986,147
7,578,211
4,620,459
47,94236,3291,978
28,711
20,555
11,38913,605
8,973
1,750
7,486
104,355
3,939,818

71,103,964
81,467,066
103,867,881
1,859,316
5,292,316
53,420,652
11,021,404
71,088,956
36,293,740
526,076368,261
22,703164,001
159,173—
158,522
116,347
23,099131,4121,062,720
39,162,794¥ 150,416,519¥ 148,536,464$ 1,616,686,576

931,078,986
16,313,388
62,192,284
129,791,515

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

117

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets—(Continued)
Millions of yen
2010

As of March 31,

Net Assets
Common Stock and Preferred Stock (Note 30)
Capital Surplus
Retained Earnings
Treasury Stock (Note 30)¥

Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities, net of Taxes (Note 42)
Net Deferred Hedge Gains, net of Taxes
Revaluation Reserve for Land, net of Taxes (Note 29)
Foreign Currency Translation Adjustments
Total Valuation and Translation Adjustments
Stock Acquisition Rights (Note 31)
Minority Interests

1,540,965
411,318
608,053(6,218)$19,406,331
5,934,389
9,186,406(55,719)

3,207,219

2,554,119

34,471,407

176,931
83,093
138,430(92,623)(519,574)
67,525
146,447(114,765)

1,901,669
893,096
1,487,856(995,527)

305,831(420,367)

3,287,094

2,301

1,187

24,7392,321,700

2,051,667

24,953,788

4,186,606

62,737,028¥ 156,253,572¥ 152,723,070$ 1,679,423,604

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

118¥

5,837,053

Total Net Assets
Total Liabilities and Net Assets

1,805,565
552,135
854,703(5,184)2009

Thousands of
U.S. dollars (Note 1)
2010

Consolidated Statements of Income
Millions of yen
2010

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 32)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 33)
Other Operating Income (Note 34)
Other Income (Note 36)¥

Total Income
Expenses
Interest Expenses (Note 32)
Fee and Commission Expenses
Trading Expenses (Note 33)
Other Operating Expenses (Note 35)
General and Administrative Expenses (Note 31)
Other Expenses (Note 37)
Total Expenses
Income (Loss) before Income Taxes and Minority Interests

1,571,994
49,100557,312
312,330
179,021266,125¥

2009

2,144,436
55,891
514,997
301,521259,151
260,568

Thousands of
U.S. dollars (Note 1)
2010$

16,895,898
527,736
5,990,026
3,356,950
1,924,137
2,860,337

2,935,885

3,536,565

31,555,084

420,287
91,271—
161,584
1,317,247
567,728

1,075,584
98,343—295,102
1,192,701
1,280,711

4,517,273
980,995—
1,736,724
14,157,860
6,101,982

2,558,119

3,942,443

27,494,834

377,765(405,877)

4,060,250

Income Taxes:
Current
Refund of Income Taxes
Deferred

25,253(7,212)
25,10848,247
109,103271,422(77,521)269,863

Total Income Taxes

43,148157,350

Income before Minority Interests
Minority Interests in Net Income
Net Income (Loss)

463,764

334,6173,596,486

95,212¥25,586

239,404¥(588,814)

1,023,354$

2,573,132

Per Share of Common StockYen
As of March 31,

Net Income (Loss):
Basic
DilutedCash Dividends

2010

¥

16.29
15.57
8.00

2009

¥

(54.14)—
10.00

U.S. dollars (Note 1)
2010

$

0.18
0.17
0.09

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

119Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Millions of yen
2010

For the Fiscal Years ended March 31,

Shareholders' Equity
Common Stock and Preferred Stock
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares¥¥

264,600

1,540,965$—

16,562,393
2,843,938

Total Changes during the period

264,600—

2,843,938

Balance as of the end of the period

1,805,565

1,540,965

19,406,331

411,318

411,0934,420,883

271,729——225

2,920,568—

Capital Surplus
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Disposition of Treasury Stock
Transfer from Capital Surplus to Retained Earnings Caused by
Coping with a Loss of a Subsidiary(130,913)—(1,407,062)

Total Changes during the period

140,816225

1,513,506

Balance as of the end of the period

552,135

411,318

5,934,389

608,053

1,476,129

6,535,396(131,015)
239,404(662)—(133,898)(588,814)(101)(146,308)(1,408,166)
2,573,132(7,115)—130,913
8,010

—
1,046

1,407,062
86,097

Total Changes during the period

246,649(868,076)

2,651,010

Balance as of the end of the period

854,703

608,053

9,186,406(6,218)(2,507)(66,832)

(4)
1,038
—
—

(150,359)
280
146,30860(51)
11,164——Retained Earnings
Balance as of the end of the previous period
Changes during the period
Cash Dividends
Net Income (Loss)
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Capital Surplus to Retained Earnings Caused by
Coping with a Loss of a Subsidiary
Transfer from Revaluation Reserve for Land, net of Taxes

Treasury Stock
Balance as of the end of the previous period
Changes during the period
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Decrease in Stock issued by MHFG held by Equity-Method Affiliates
Total Changes during the period

1,033(3,710)11,113

Balance as of the end of the period(5,184)(6,218)(55,719)2,554,119

3,425,680

27,451,840

536,329(131,015)
239,404
(4)
376
—

—
(133,898)(588,814)(150,359)
404—

5,764,506(1,408,166)
2,573,132
(51)
4,049
—

—
8,010
—

—
1,046
60

—
86,097—

Total Shareholders' Equity
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Cash Dividends
Net Income (Loss)
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Capital Surplus to Retained Earnings Caused by
Coping with a Loss of a Subsidiary
Transfer from Revaluation Reserve for Land, net of Taxes
Decrease in Stock issued by MHFG held by Equity-Method Affiliates
Total Changes during the period
Balance as of the end of the period

653,100¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

120

1,540,965

2009

Thousands of
U.S. dollars (Note 1)
2010

3,207,219(871,560)¥

2,554,119

7,019,567$

34,471,407

Consolidated Statements of Changes in Net Assets—(Continued)
Millions of yen
2010

For the Fiscal Years ended March 31,

Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity¥(519,574)¥

696,5052009

401,375

Thousands of
U.S. dollars (Note 1)
2010$(5,584,420)(920,949)

7,486,089

Total Changes during the period

696,505(920,949)

7,486,089

Balance as of the end of the period

176,931(519,574)

1,901,669

67,525

5,985

725,764

Net Deferred Hedge Gains, net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity

15,56861,539167,332

Total Changes during the period

15,56861,539167,332

Balance as of the end of the period

83,09367,525893,096

146,447

147,467

1,574,024(86,168)

Revaluation Reserve for Land, net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity(8,017)(1,020)Total Changes during the period(8,017)(1,020)(86,168)

Balance as of the end of the period

138,430

146,447

1,487,856(114,765)(78,394)(1,233,509)
237,982

Foreign Currency Translation Adjustments
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity

22,141(36,371)

Total Changes during the period

22,141(36,371)

237,982

Balance as of the end of the period(92,623)(114,765)(995,527)(420,367)

476,434(4,518,141)

726,199(896,802)

7,805,235

Total Valuation and Translation Adjustments
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity
Total Changes during the period

726,199(896,802)

7,805,235

Balance as of the end of the period

305,831(420,367)

3,287,094

1,187

—

12,766

Stock Acquisition Rights
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity

1,113

1,187

11,973

Total Changes during the period

1,113

1,187

11,973

Balance as of the end of the period

2,301

1,187

24,7392,051,667

1,792,045

22,051,455

270,033

259,6212,902,333

270,033

259,621

Minority Interests
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity
Total Changes during the period
Balance as of the end of the period¥

2,321,700¥

2,051,667

2,902,333$

24,953,788

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

121

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets—(Continued)
Millions of yen
2010

For the Fiscal Years ended March 31,

Total Net Assets
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Cash Dividends
Net Income (Loss)
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Capital Surplus to Retained Earnings Caused by
Coping with a Loss of a Subsidiary
Transfer from Revaluation Reserve for Land, net of Taxes
Decrease in Stock issued by MHFG held by Equity-Method Affiliates
Net Changes in Items other than Shareholders' Equity¥

Total Changes during the period
Balance as of the end of the period¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

122

4,186,606¥

2009

5,694,159

Thousands of
U.S. dollars (Note 1)
2010$

44,997,920

536,329(131,015)
239,404
(4)
376
—

—
(133,898)(588,814)(150,359)
404—

5,764,506(1,408,166)
2,573,132
(51)
4,049
—

—
8,010
—
997,346—
1,046
60(635,992)—
86,097—
10,719,541

1,650,446(1,507,553)

17,739,108

5,837,053¥

4,186,606$

62,737,028

Consolidated Statements of Cash Flows
For the Fiscal Years ended March 31,

Millions of yen
2010

Cash Flow from Operating Activities
Income (Loss) before Income Taxes and Minority Interests¥
377,765
Depreciation
155,936
Losses on Impairment of Fixed Assets
4,742
Amortization of Goodwill
468
Gains on Negative Goodwill Incurred(68,206)
Equity in Loss (Gain) from Investments in Affiliates(2,892)
Increase (Decrease) in Reserves for Possible Losses on Loans(6,395)
Increase (Decrease) in Reserve for Possible Losses on Investments
26
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans(13,422)
Increase (Decrease) in Reserve for Contingencies(5,746)
Increase (Decrease) in Reserve for Bonus Payments(1,611)
Increase (Decrease) in Reserve for Employee Retirement Benefits
2,083
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits(325)
Increase (Decrease) in Reserve for Frequent Users Services(12,555)
Increase (Decrease) in Reserve for Reimbursement of Deposits
1,143
Increase (Decrease) in Reserve for Reimbursement of Debentures
1,851
Interest Income—accrual basis(1,571,994)
Interest Expenses—accrual basis
420,287
Losses (Gains) on Securities(21,645)
Losses (Gains) on Money Held in Trust
202
Foreign Exchange Losses (Gains)—net
150,355
Losses (Gains) on Disposition of Fixed Assets
5,834
Losses (Gains) on Securities Contribution to Employees' Retirement Benefits Trust(6,731)Net Decrease (Increase) in Trading Assets
445,550Net Increase (Decrease) in Trading Liabilities(1,021,020)
Decrease (Increase) in Derivatives other than for Trading Assets
796,198
Increase (Decrease) in Derivatives other than for Trading Liabilities(937,759)
Net Decrease (Increase) in Loans and Bills Discounted
8,359,531
Net Increase (Decrease) in Deposits
215,038Net Increase (Decrease) in Debentures(782,662)
Net Increase (Decrease) in Borrowed Money (excluding Subordinated475,914
Borrowed Money)

¥

2009

(405,877)
142,676
10,89866—
3,584
207,169(27)(22,184)
6,460
9,072
472
(5,079)
3,040
3,990
8,973
(2,144,436)
1,075,584
548,270(87)
339,310
8,949—(173,012)
114,658(1,855,354)
2,098,531(6,593,357)
1,903,938(858,983)

Thousands of
U.S. dollars (Note 1)
2010$

4,060,250
1,676,011
50,977
5,034(733,089)(31,087)(68,736)286(144,269)(61,763)(17,318)
22,394(3,503)(134,942)
12,292
19,895(16,895,898)
4,517,273(232,646)
2,181
1,616,029
62,714(72,346)
4,788,806(10,974,000)
8,557,595(10,079,098)
89,848,794
2,311,244(8,412,103)

4,318,212

5,115,155

Net Decrease (Increase) in Due from Banks (excluding Due from Central Banks)
Net Decrease (Increase) in Call Loans, etc.
Net Decrease (Increase) in Guarantee Deposits Paid under Securities
Borrowing Transactions

66,841(988,952)

663,824
1,022,085

718,420(10,629,325)

906,356

3,249,719

9,741,574

Net Increase (Decrease) in Call Money, etc.
Net Increase (Decrease) in Commercial Paper
Net Increase (Decrease) in Guarantee Deposits Received under Securities
Lending Transactions

2,421,380—(1,355,886)(30,000)

26,025,160—

1,759,440(2,816,799)

18,910,586

Net Decrease (Increase) in Foreign Exchange Assets
Net Increase (Decrease) in Foreign Exchange Liabilities
Net Increase (Decrease) in Short-term Bonds (Liabilities)
Net Increase (Decrease) in Bonds and Notes
Net Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net

276,587(418,117)(15,587)
478,718
39,283
1,645,101(433,350)
680,151(226,677)
369,818(358,999)
520,993(133,798)
2,233,069(1,138,316)(206,414)

2,972,775(4,493,954)(167,541)
5,145,293
422,222
17,681,655(4,657,681)
7,310,312

Subtotal
Cash Refunded (Paid) in Income Taxes

13,377,814
54,904

538,081
35,684

143,785,628
590,122573,765$ 144,375,750

Net Cash Provided by (Used in) Operating Activities¥ 13,432,719¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

123Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Cash Flows—(Continued)
2009

Thousands of
U.S. dollars (Note 1)2010¥ (70,659,603)
46,046,866
10,736,568(71,280)
32,580(135,502)(119,014)
15,4490406¥ (72,752,600)
57,885,003
17,497,697(49,100)
41,193(106,101)(114,952)
5,956
1,112
—

$ (759,454,039))
494,914,734
115,397,345(766,122)
350,172(1,456,394)(1,279,176)
166,049
8
4,368

Millions of yen
2010

For the Fiscal Years ended March 31,

Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Proceeds from Sale of Equity of Consolidated Subsidiaries
Net Cash Provided by (Used in) Investing Activities(14,153,529)

2,408,207(152,123,055)

Cash Flow from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Issuance of Common Stock
Proceeds from Investments by Minority Shareholders
Repayments to Minority Shareholders
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock

12(34,000)
320,400(431,503)
536,329
238,198(176,157)(130,297)(91,180)
(4)
3

1,388
(125,000)
274,000(127,902)—
747,821(373,976)(133,393)(79,785)(150,359)
179

132(365,434)
3,443,680(4,637,823)
5,764,506
2,560,173(1,893,348)(1,400,442)(980,015)(51)
39

Net Cash Provided by (Used in) Financing Activities

231,801

32,972

2,491,417

2,341(22,066)

25,171Net Increase (Decrease) in Cash and Cash Equivalents(486,665)

2,992,879(5,230,717)

Cash and Cash Equivalents at the Beginning of the Fiscal Year

5,048,671

2,055,793

54,263,455

—

(0)

—

116,777—

1,255,137

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents

Net Decrease in Cash and Cash Equivalents for Exclusionfrom Scope of Consolidation
Increase (Decrease) in Cash and Cash Equivalents Due to Mergerof Consolidated Subsidiaries
Cash and Cash Equivalents at the End of the Fiscal Year (Note 39)
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

124¥

4,678,783¥

5,048,671$

50,287,875

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho Financial
Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company Law of Japanand the Financial Instruments and Exchange Law, and in conformity with accounting principles generally accepted in Japan(“Japanese GAAP”) which are different in certain respects from the application and disclosure requirements of International
Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of the
Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to the consolidated financial
statements include information which is not required under Japanese GAAP but is presented herein as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not add up
exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The
rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation. The inclusion of suchamounts is not intended to imply that Japanese yen has been or could be readily converted, realized or settled into U.S. dollars atthat rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Corporate Bank, Ltd. (“MHCB”), Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd.
(“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries asof March 31, 2010 and 2009 were 162 and 145, respectively.
On May 7, 2009, Shinko Securities Co., Ltd. (“Shinko”) (which was an affiliate of MHFG) and Mizuho Securities Co., Ltd.
(“former MHSC”) (which was a subsidiary of MHFG) consummated a merger, under which Shinko became the surviving entity
and the former MHSC became the absorbed entity. The trade name was changed to “Mizuho Securities Co., Ltd.” upon themerger.
In the fiscal year ended March 31, 2010, Mizuho Securities Co., Ltd. after the merger and 27 other companies were newly
consolidated as a result of the merger between the former MHSC and Shinko and other factors.
In the fiscal year ended March 31, 2010, Mizuho Securities Co., Ltd. before the merger and ten other companies were
excluded from the scope of consolidation as a result of dissolution upon the merger and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2010 and 2009.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2010 and 2009.
(b) The numbers of affiliates under the equity method as of March 31, 2010 and 2009 were 21 and 22, respectively. Investments
in affiliates include The Chiba Kogyo Bank, Ltd. and certain other affiliates.
In the fiscal year ended March 31, 2010, Eiwa Securities Co., Ltd. and one other company were newly included in thescope of the equity method as a result of the merger between the former MHSC and Shinko.
In the fiscal year ended March 31, 2010, Shinko Securities Co., Ltd. and two other companies were excluded from thescope of the equity method as they became consolidated subsidiaries as a result of the merger with the former MHSC.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2010 and 2009.
(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.

125

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, 2010 are as follows:
The day before the last business day of June
16 companies
October 31
1 company
December 29
11 companies
December 31
59 companies
March 3175 companies(b) Consolidated subsidiaries with balance sheet dates of the day before the last business day of June, October 31, and December
29 were consolidated based on their tentative financial statements as of and for the period ended December 31. Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended their respectivebalance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took place
between their respective balance sheet dates and the date of the consolidated financial statements.

5. Special Purpose Entities Subject to Disclosure(1) Summary of Special Purpose Entities Subject to Disclosure and Transactions with These Special Purpose Entities:
MHBK, MHCB and MHTB, which are consolidated subsidiaries of MHFG, granted loans, credit facilities and liquidity facilities to
23 and 25 special purpose entities (mainly incorporated in the Cayman Islands) in their borrowings and fund raising bycommercial paper in order to support securitization of monetary assets of customers as of March 31, 2010 and 2009,
respectively. The aggregate assets and aggregate liabilities of these 23 and 25 special purpose entities at the latest closing
date amounted to ¥2,090,738 million ($22,471,399 thousand) and ¥2,089,710 million ($22,460,349 thousand) as of March
31, 2010, respectively, and ¥2,984,889 million and ¥2,984,039 million as of March 31, 2009, respectively. MHBK, MHCB and
MHTB do not own any shares with voting rights in any of these special purpose entities and have not dispatched any director
and or employee to them.
(2) Major transactions with these special purpose entities subject to disclosure as of or for the fiscal years ended March 31,
2010 and 2009 are as follows:
Millions of yen
As of March 31,

Loans
Credit and Liquidity Facilities

2010

¥

1,690,892
370,5492009¥

2,051,070
543,269

Millions of yen
For the Fiscal Years ended March 31,

Interest Income on Loans
Fee and Commission Income, etc.

2010

¥

15,013
2,562

2009

¥

23,612
3,468

Thousands of U.S. dollars
2010$

18,173,818
3,982,685

Thousands of U.S. dollars
2010$

161,371
27,544

6. Standards of Accounting Method(1) 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 and recorded in
Trading Assets or Trading Liabilities on the consolidated balance sheets. Income or expenses generated on the relevant tradingtransactions are recorded in Trading Income or Trading Expenses on the consolidated statements of income.
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, forward contracts and option transactions, are stated at their fair values,
assuming that such transactions were terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and interest paid during the fiscal year, the gains or losses
resulting from any change in the value of securities and other monetary claims between the beginning and the end of the fiscal
year and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the endof the fiscal year, assuming they were settled at the end of the fiscal year.

126

(2) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council, January
22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries and affiliates, into three
categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost, determined by the moving average method.
(iii)Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other securities
which have readily determinable fair value are stated at fair value with changes in net unrealized gains or losses, net of
applicable income taxes after excluding gains and losses as a result of the fair-value hedge method, included directly in Net
Assets. The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market
price over the month preceding the consolidated balance sheet date. The fair value of securities other than Japanese stocks
is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date (costof securities sold is calculated primarily by the moving-average method). Other securities, the fair values of which are
extremely difficult to determine, are stated at acquisition cost or amortized cost as determined by the moving-averagemethod.
In addition, investments in non-consolidated subsidiaries and affiliates which are not under the equity method are stated atacquisition cost as determined by the moving average-method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities above.
Certain Other Securities which have readily determinable fair value are devalued to the fair value, and the difference between
the acquisition cost and the fair value is treated as the 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 ¥32,553 million ($349,888 thousand) and ¥455,719 million for the fiscal years
ended March 31, 2010 and 2009, respectively.
The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:• Security whose fair value is 50% or less of the acquisition cost
• Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains
a certain level or lower(3) 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 sell or pledge thesebankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The face value of these bills
amounted to ¥610,607 million ($6,562,855 thousand) and ¥613,244 million as of March 31, 2010 and 2009, respectively.
(4) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives qualifying ashedges are mainly accounted for using either the fair-value hedge method or the deferred method of hedge accounting (see(21) Hedge Accounting).
(5) 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(6) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internal-use software
are capitalized and amortized over their estimated useful lives of mainly five years as determined by MHFG and consolidated
subsidiaries.

127

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(7) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned with finance leasetransactions that do not transfer ownership is mainly computed by the same method as the one applied to fixed assets owned
by us.
(8) Deferred Assets• Stock issuance costs• Stock issuance costs are expensed as incurred.
• Bond issuance costs• Bond issuance costs are expensed as incurred.
• Debenture issuance costs• Debenture issuance costs are expensed as incurred.
• Bond discounts• Bonds are stated at amortized costs computed by the straight-line method on the consolidated balance sheets. Bond discounts booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line method over
the term of the bond by applying the previous accounting method and the unamortized balance is directly deducted frombonds, based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report
No.19, August 11, 2006).
(9) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internallyestablished standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company
Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions (“Substantially
Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described below and expectedamounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive Control
Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts ofclaims net of expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 13 below) and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method is applied,
under which the reserve is determined as the difference between the book value of the loan and its present value of
future cash flows discounted using the contractual interest rate before the loan was classified as a Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for the losses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience and otherfactors.
• 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 inaccordance with the internally established “Self-assessment Standard,” and the results of the assessments are verified andexamined by the independent examination departments. Reserves for Possible Losses on Loans are provided on the basis ofsuch verified assessments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by athird party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of collateralpledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are written off
against the respective claims balances. The total directly written-off amounts were ¥568,404 million ($6,109,247 thousand)and ¥540,000 million as of March 31, 2010 and 2009, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and otherfactors for general claims and the assessment for each individual loan for other claims.
(10) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after
taking into consideration the financial condition and other factors concerning the investee company. Except for securitization

128

products which are included as reference assets of other securitization schemes of the Group's domestic banking subsidiary,
Reserve for Possible Losses on Investments is provided against unrealized losses on securitization products related with the discontinuation of business regarding credit investments primarily in Europe which were made as an alternative to loans by theGroup's domestic banking subsidiary. Since securities are recognized at fair value on the consolidated balance sheets, the balance of Securities is offset against that of Reserve for Possible Losses on Investments by ¥15,269 million ($164,121 thousand)and ¥31,786 million for the fiscal years ended March 31, 2010 and 2009, respectively.

(11) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accruedat the end of the fiscal year, based on the estimated future payments.
(12) Reserve for Employee Retirement Benefits
Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future benefit payments toemployees, is recorded as the required amount, based on the projected benefit obligation and the estimated plan asset
amounts at the end of the fiscal year. Unrecognized actuarial differences are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of theemployees of the respective fiscal year.
(13) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit payments todirectors, corporate auditors and executive officers, is recognized at the amount accrued at the end of the respective fiscal year,
based on the internally established standards.
(14) 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 amount deemed necessary based on a reasonable estimate of possible future losses, taking into consideration the current financial condition thatcan change rapidly.
(15) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not covered by otherspecific reserves, in off-balance transactions, trust transactions and others. The balance is an estimate of possible future losses,
on an individual basis, considered to require a reserve.
(16) Reserve for Frequent Users Services
Reserve for Frequent Users Services was provided mainly to meet the future use of points of Mizuho Mileage Club at theamount deemed necessary based on the reasonable estimate of the future usage of points until the fiscal year ended
March 31, 2009.
During the fiscal year ended March 31, 2010, the points for the future use of Mizuho Mileage Club were abolished and theunused balance of points was cleared. In consequence, the total amount of the Reserve for Frequent Users Services provided
for Mizuho Mileage Club was liquidated. As a result, the amount of the Reserve for Frequent Users Services is now immaterial,and beginning with the fiscal year ended March 31, 2010, the Reserve for Frequent Users Services is now included within Other
Liabilities. The Reserve for Frequent Users Services included within Other Liabilities as of March 31, 2010 amounted to ¥581
million ($6,248 thousand).
(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities at the estimated amount of future claims for withdrawal by depositors and others.
(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimated amountfor future claims.
(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,149 million($23,099 thousand) and ¥1,750 million as of March 31, 2010 and 2009, respectively. This is the reserve pursuant to Article
46-5, Paragraph 1 and Article 48-3, Paragraph 1 of the Financial Instruments and Exchange Law to indemnify the losses
incurred from accidents in the purchase and sale of securities, other transactions or derivative transactions.

129

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(20) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidated banking
subsidiaries and a domestic trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at
the consolidated balance sheet date, with the exception of the investments in non-consolidated subsidiaries and affiliates notunder the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the above transactions, aretranslated into Japanese yen primarily at the exchange rates in effect at the respective balance sheet dates.
(21) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied ashedge accounting methods.
The portfolio hedge for a large volume of small-value monetary claims and liabilities of domestic consolidated banking
subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by the method stipulated in the JICPA
Industry Audit Committee Report No.24.
The effectiveness of hedging activities for the portfolio hedge for a large volume of small-value monetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged
instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity
bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between the baseinterest rate index of the hedged cash flow and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the correlation between the fluctuation in the market or
cash flows of the hedged instruments and that of the hedging instruments.
Net Deferred Hedge Gains (Losses), net of Taxes recorded on the consolidated balance sheets resulted from the applicationof 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), under which theoverall 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, before net of applicable income taxes, were ¥41,464 million($445,660 thousand) and ¥84,716 million as of March 31, 2010 and 2009, respectively. The unamortized amounts of grossdeferred hedge gains on the macro-hedges, before net of applicable income taxes, were ¥37,260 million ($400,479 thousand) and ¥80,611 million as of March 31, 2010 and 2009, respectively.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply the deferred
method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in “Accounting and Auditing Treatment relating to Adoption of AccountingStandards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25). The effectivenessof the hedge is assessed by confirming both the amount for the foreign currency position of the hedging instruments ofcurrency-swap transactions, exchange swap transactions and similar transactions as the method of hedging the foreignexchange risks of monetary claims and liabilities denominated in foreign currencies and the amount for the foreign currency
position of the hedged monetary claims and liabilities denominated in foreign currency are equivalent.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency andOther securities in foreign currency (except for bonds) identified as hedged items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange contracts exceeds the amount of acquisition cost of thehedged foreign securities 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 statements of income or deferred under hedge accounting, because these inter-company derivatives are

130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 Nos.24 and 25.

(22) Income Taxes
Deferred income taxes are recorded for corporate tax, inhabitants' taxes and enterprise taxes based on the differences between
the tax bases of assets and liabilities and those reported in the consolidated financial statements and tax losses carried forward,
using enacted tax rates which will be in effect when the differences are expected to be reversed. The assets and liabilities
method is used to determine deferred income taxes.
(23) Consumption Taxes and OtherMHFG and its domestic consolidated subsidiaries are subject to Japanese consumption taxes. Japanese consumption taxes are
excluded from transaction amounts.
(24) Amortization Method of Goodwill and Amortization Period
As a rule, Goodwill and Negative goodwill are amortized over a period up to 20 years under the straight-line method. The
entire amount is charged if the amount has no material impact.
(25) Scope of Cash and Cash Equivalents on Consolidated Statements of Cash Flows
In the consolidated statements of cash flows, Cash and Cash Equivalents consist of cash and due from central banks included in“Cash and Due from Banks” on the consolidated balance sheets.
7. Changes of Fundamental and Important Matters for the Preparation of Consolidated Financial Statements(a) Accounting Standard for Business Combinations and others
As “Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008), “Accounting Standard
for Consolidated Financial Statements” (ASBJ Statement No.22, December 26, 2008), “Partial Amendments to AccountingStandard for Research and Development Costs” (ASBJ Statement No.23, December 26, 2008), “Revised Accounting Standard
for Business Divestitures” (ASBJ Statement No.7 (Revised 2008), December 26, 2008), “Revised Accounting Standard for
Equity Method of Accounting for Investments” (ASBJ Statement No.16 (Revised 2008), released on December 26, 2008), and“Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”(ASBJ Guidance No.10 (Revised 2008), December 26, 2008) can be applied for the first business combination and businessdivestitures conducted in the fiscal year beginning on or after April 1, 2009, MHFG has applied these accounting standards
and others beginning with this fiscal year.
(b) Accounting Standard for Financial Instruments
MHFG has applied “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, March 10, 2008) and “Guidanceon Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, March 10, 2008) from the year ended
March 31, 2010.
As a result, Other Debt Purchased increased by ¥633 million ($6,807 thousand), Securities increased by ¥15,242 million($163,830 thousand), Deferred Tax Assets decreased by ¥12,906 million ($138,721 thousand), Reserves for Possible Losses on
Loans decreased by ¥20,178 million ($216,877 thousand), Net Unrealized Gains (Losses) on Other Securities, net of Taxes
increased by ¥8,386 million ($90,143 thousand), Minority Interests increased by ¥28 million ($308 thousand), Ordinary Profits
and Income before Income Taxes and Minority Interests increased by ¥14,745 million ($158,490 thousand), respectively, andNet Income increased by ¥14,732 million ($158,343 thousand) compared with the corresponding amounts under the previously applied method.

8. Changes in Presentation of Financial Statements(a) Refund of Income Taxes formerly included within Current Income Taxes is separately presented from this fiscal year due toincreased materiality. Refund of Income Taxes formerly included within Current Income Taxes as of March 31, 2009 was ¥416
million.
(b) As “Cabinet Office Ordinance Partially Revising Regulation on Terminology, Forms and Preparation of Financial Statements”(Cabinet Office Ordinance No.5, March 24, 2009) can be applied from the beginning of the fiscal year which begins on orafter April 1, 2009 based on “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22,
December 26, 2008), MHFG has presented “Income before Minority Interests” beginning with fiscal 2009.

131

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

9. Additional Information
Issuance of New Shares by the Spread Method
The spread method is adopted for the issuance of new shares (2,804,400 thousand shares) with a payment date of July 23,
2009. This is a method where the new shares are underwritten and purchased by the underwriters at the amount to be paid
to MHFG (¥176.40 per share), and sold to the investors at an issue price (¥184.00 per share) different from the amount to be
paid to MHFG.
Using the spread method, the aggregate amount of the difference between (a) the issue price and (b) the amount to be
paid to MHFG is retained by the underwriters, and allocated to each of the underwriters as underwriting fees. Accordingly,
Other Ordinary Expenses does not include the amount equivalent to such underwriting fees of ¥21,313 million ($229,078
thousand) related to the issuance.
The amount equivalent to such underwriting fees of ¥7,129 million ($76,630 thousand), recognized as profit by consolidated subsidiaries, is eliminated and recorded as an increase in Capital Surplus.

10. Securities Lending and Borrowing Transactions
Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,347 million ($46,726 thousand) and ¥4,490 million as of March 31, 2010 and 2009, respectively, and are included in trading securities under Trading
Assets. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral. Among them, the total of securities repledged were ¥9,877,705 million($106,166,227 thousand) and ¥8,066,097 million as of March 31, 2010 and 2009, respectively, and securities neither
repledged nor re-loaned were ¥2,038,895 million ($21,914,181 thousand) and ¥3,339,133 million as of March 31, 2010 and2009, respectively.

11. Trading Assets and Liabilities
Millions of yen
2010

2009

Thousands of U.S. dollars
2010

7,718,927
5,557,050
238,530$ 106,629,864
42,106,297
1,594,791¥ 13,986,791¥ 13,514,509$ 150,330,952¥

4,113,188
3,301,597
164,910¥2,878,498
4,873,521
243,339$

44,208,815
35,485,780
1,772,471¥

7,579,695¥

7,995,359$

81,467,066

Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 28,949,714
156,847
3,258,558
3,425,965
7,305,375¥ 18,605,904
81,171
2,702,751
3,129,512
5,654,292$ 311,153,420
1,685,802
35,023,202
36,822,506
78,518,648¥ 43,096,460¥ 30,173,632$ 463,203,578

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

¥

9,920,842
3,917,569
148,379¥

12. Securities
As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2Total*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥53,244 million ($572,274 thousand) and ¥107,942 million as of March 31, 2010 and 2009, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥3,606 million ($38,762 thousand) and ¥3,147 million as of March 31, 2010 and 2009, respectively.

132

13. Loans and Bills Discounted
Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 50,093,734
9,404,010
2,339,097
215,259
107,092
5,384¥ 55,785,991
10,988,828
3,387,247
275,42975,057
7,669$ 538,410,727
101,074,922
25,140,771
2,313,626
1,151,041
57,876¥ 62,164,579¥ 70,520,224$ 668,148,963

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, 2010 and 2009 include the following:
Millions of yen
2010

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

2009

Thousands of U.S. dollars
2010¥

76,877740,756
10,195475,058¥

112,197
700,358
18,764
480,118$

826,287
7,961,694
109,578
5,105,965¥

1,302,887¥

1,311,439$

14,003,524*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the Corporate Tax Law Enforcement Ordinance(Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are deferred in order to assist or facilitate therestructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, the deferral of interest payments, the extension of
maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

Commitment Line for Loans
Overdraft protection on current accounts and contracts 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 is in breachof contract conditions. The unutilized balance of these contracts amounted to ¥55,358,597 million ($594,997,820 thousand) and¥54,576,376 million as of March 31, 2010 and 2009, respectively. Of these amounts, ¥48,326,328 million ($519,414,536 thousand) and ¥47,284,078 million relate to contracts of which the original contractual maturity is one year or less, or which areunconditionally cancelable at any time as of March 31, 2010 and 2009, respectively.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affect future
cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse the execution ofloans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve aclaim, or other similar reasons. The banking subsidiaries require collateral such as real estate and securities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor customer's business conditions in accordancewith internally established standards and take necessary measures to manage credit risks such as amendments to contracts.

133

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

14. Foreign Exchange Assets and Liabilities
Millions of yen
2010

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Advance from Foreign Banks
Due to Banks (Foreign)
Foreign Bills Payable
Foreign Bills Sold
Total

2009

Thousands of U.S. dollars
2010¥

408,678
152,002140,114
7,007¥

357,113
134,647
96,317391,925$

4,392,507
1,633,735
1,505,962
75,315¥

707,803¥

980,003$7,607,519¥

151,142
7,249
9,962
4,636

¥

556,897
16,486
12,032
5,715$

1,624,487
77,916
107,076
49,837¥

172,990¥591,132$

1,859,316

Millions of yen
2010

2009

15. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

266,257
22,034
3,453,913¥ 3,742,205¥

296,052
21,351
3,821,104¥ 4,138,508

Thousands of U.S. dollars
2010$

2,861,748
236,831
37,122,890$ 40,221,469

16. Tangible Fixed Assets
Millions of yen
2010

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 and Others

134

2009

Thousands of U.S. dollars
2010¥

470,185
312,512
9,734
22,420112,485¥

410,391
283,992
8,678
19,931
119,815$

5,053,584
3,358,900
104,624240,979
1,208,996¥

927,337¥

842,809$

9,967,083¥

776,585
37,969¥747,180
39,365$

8,346,790
408,10117. Reserves for Possible Losses on Loans
Millions of yen
2010

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

2009

Thousands of U.S. dollars
2010¥(563,843)(323,040)(188)¥(583,295)(305,694)(589)$(6,060,228)(3,472,066)(2,026)¥(887,073)¥(889,579)$(9,534,320)

Millions of yen
2010

2009

18. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted
Other Assets
Tangible Fixed Assets¥

130
5,808,605
14,247,020
8,462,677
7,727
224

¥

—
4,012,042
8,960,855
12,437,626
1,014
297

Thousands of U.S. dollars
2010

$

1,397
62,431,267
153,127,903
90,957,412
83,0602,418

The following liabilities were collateralized by the above assets:
Millions of yen
2010

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Borrowed Money¥652,555
1,959,200
5,610,023
5,803,976
7,978,049¥

2009

643,1962,020,400
2,983,330
3,546,611
7,677,083

Thousands of U.S. dollars
2010$

7,013,711
21,057,610
60,296,904
62,381,523
85,748,601

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others werecollateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥26,131 million ($280,865
thousand) and ¥10,205 million, Trading Assets of ¥168,718 million ($1,813,401 thousand) and ¥502,411 million, Securities of¥2,430,231 million ($26,120,288 thousand) and ¥2,524,405 million as of March 31, 2010 and 2009, respectively, and Loans andBills Discounted of ¥18,608 million ($200,000 thousand) as of March 31, 2010. None of the assets were pledged as collateral inconnection with borrowings by the non-consolidated subsidiaries and affiliates.
Other Assets included guarantee deposits of ¥111,826 million ($1,201,918 thousand) and ¥110,982 million as of March 31,
2010 and 2009, respectively, collateral pledged for derivatives transactions of ¥446,647 million ($4,800,598 thousand) and¥1,237,247 million as of March 31, 2010 and 2009, respectively, margins for futures transactions of ¥45,630 million ($490,443
thousand) and ¥61,079 million as of March 31, 2010 and 2009, respectively, and other guarantee deposits of ¥40,021 million($430,156 thousand) and ¥8,277 million as of March 31, 2010 and 2009, respectively.
In accordance with JICPA Industry Audit Committee Report No.24, bills re-discounted are accounted for as financing transactions. The face value of these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills amounted to¥972 million as of March 31, 2009.

135

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

19. Deposits
Millions of yen
2010

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other

¥

Total

5,584,104
33,931,148
678,138
33,481,590
10,287,808
2,664,797¥¥ 86,627,588

2009

5,694,552
33,451,396
643,823
33,929,588
9,359,479
3,460,179¥ 86,539,020

Thousands of U.S. dollars
2010$

60,018,322
364,694,201
7,288,680
359,862,319
110,574,043
28,641,421$ 931,078,986*1 Ordinary Deposits include savings deposits.

20. Debentures
As of March 31,
IssuerDescription

MHCB

Coupon Debentures

MHBK

Coupon Debentures

MHBK

Millions of yen
2010¥

695,930[695,930]¥

Thousands of
U.S. dollars
2010

2009

1,417,510$

Interest rates
2010

2009

7,479,901[7,479,901]

0.55%–1.20% 0.55%–1.20%

8,994[4,521]

12,58496,671[48,593]

0.10%–0.56% 0.10%–0.56%

Coupon Debentures(with compound interest)

102,748[58,150]

141,403

1,104,349[625,010]

0.10%–0.56% 0.10%–0.56%

MHBK

Coupon Debentures(saving-type)

643,047[89,965]

658,480

6,911,516[966,959]

0.10%–0.66% 0.10%–0.66%

MHBK

Coupon Debentures(saving-type with compound interest)

67,077[12,256]

70,480720,951[131,734]

0.10%–0.66% 0.10%–0.66%

2,300,459$ 16,313,388

Total

¥

1,517,797¥

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. Repayments for Debentures are scheduled for the next five years as follows:
Fiscal year ending March 31, 2011 ¥860,824 million ($9,252,197 thousand)2012 ¥172,889 million ($1,858,223 thousand)2013 ¥141,229 million ($1,517,939 thousand)2014 ¥160,556 million ($1,725,674 thousand)2015 ¥182,298 million ($1,959,355 thousand)3. No collateral was provided for the above debentures.

21. Call Money and Bills Sold
Millions of yen
2010

As of March 31,

136

2009

Thousands of U.S. dollars
2010

Call Money
Bills Sold¥

5,786,370—¥

6,449,829—$ 62,192,284
—

Total

¥

5,786,370¥

6,449,829$ 62,192,284

22. Borrowed Money
Millions of yen
2010

As of March 31,

Borrowed Money
Bills rediscounted
Other Borrowings*2,3¥

9,663,867—
9,663,867¥

2009

Thousands of U.S. dollars
2010

8,941,972
972
8,941,000$103,867,881—
103,867,881

Average interest rates*1
2010
2009

0.33%
—%
0.33%

0.56%
2.68%
0.56%

*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 ¥ 659,039 million ($7,083,402 thousand) and ¥665,942 million as of March 31, 2010 and 2009, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2011 ¥8,447,960 million ($90,799,228 thousand)2012 ¥ 90,920 million ($ 977,224 thousand)2013 ¥ 144,759 million ($ 1,555,883 thousand)2014 ¥ 56,598 million ($ 608,322 thousand)2015 ¥ 300,304 million ($ 3,227,696 thousand)

23. Short-term Bonds
Major components of Short-term Bonds at March 31, 2010 were as follows:
Issuer

Issue

MHCB

Jan. 2010–Mar. 2010

MHSC

Dec. 2009–Mar. 2010

*1

Jan. 2010–Mar. 2010

Total

Millions of yen¥¥

Thousands of U.S. dollars

144,700[144,700]Interest rates

Due

1,555,245[1,555,245]

0.11%–0.14%

Apr. 2010–
Jun. 2010

331,700[331,700]

3,565,134[3,565,134]

0.10%–0.27%

Apr. 2010–
Jun. 2010

15,997[15,997]

171,937[171,937]

0.16%–0.24%

Apr. 2010–
Jun. 2010

492,397$$

5,292,316*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Mizuho Investors Securities Co., Ltd.

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, 2009 were as follows:
IssuerIssue

Millions of yen

Interest rates

MHFG

Jan. 2009–Feb. 2009

14,0000.77%–0.80%

Apr. 2009–
May 2009

MHCB

Jan. 2009–Mar. 2009

154,400

0.20%–0.74%

Apr. 2009–
Jun. 2009

MHBK

Mar. 2009

20,0000.17%

Apr. 2009

FormerMHSC

Jan. 2009–Mar. 2009

218,400

0.19%–0.99%

Apr. 2009–
Jun. 2009*1

Jan. 2009–Mar. 2009

21,985

0.49%–0.99%

Apr. 2009–
Jun. 2009

Total

¥

¥

Due

428,785*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Mizuho Investors Securities Co., Ltd.

Note: No collateral was provided for the above Short-term Bonds.

137

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

24. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2010 were as follows:
IssuerDescription

Issue

Millions of yen

Thousands of U.S. dollars

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–
Mar. 2010¥ 2,686,063[6,997](US$55,700 thousand)$ 28,869,983[75,212]

0.00%–
4.50%

Sep. 2010–
Oct. 2038

MHBK

Straight Bonds

Nov. 2004–
Oct. 2009

849,500[29,700]

9,130,482[319,218]

0.54%–
4.26%

Apr. 2010–

MHTB

Straight Bonds

Mar. 2004–
Aug. 2009

126,700[—]

1,361,780[—]

0.73%–
3.43%

May 2015–*1

Straight Bonds

Jan. 2004–
279,120
Mar. 2004[—](US$3,000,000 thousand)

3,000,000[—]

5.79%–
8.37%

Apr. 2014–*2

Straight Bonds

Feb. 1997–
Jun. 2008

109,000[4,500]1,171,539[48,366]

1.08%–
4.35%

Aug. 2010–*3

Straight Bonds

Jul. 1995–
Feb. 2009

333,901[67,267](US$1,468,000 thousand)(EUR 65,000 thousand)

3,588,792[723,000]

0.57%–
8.62%

Apr. 2010–*4

Straight Bonds

Feb. 2000–
Mar. 2010
(US$
(AUD

585,973[77,755]
40,132 thousand)
520 thousand)

6,298,076[835,723]

0.00%–
14.00%

Apr. 2010–
Jul. 2047¥ 4,970,257$ 53,420,652

Total*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, the former MHSC, MHSC and the overseas consolidated subsidiaries, Mizuho International plc and AArdvark
ABS CDO 2007-1.

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, 2011 ¥186,221 million ($2,001,519 thousand)2012 ¥684,593 million ($7,358,056 thousand)2013 ¥692,348 million ($7,441,405 thousand)2014 ¥609,733 million ($6,553,457 thousand)2015 ¥781,815 million ($8,403,003 thousand)4. Bonds and Notes as of March 31, 2010 included subordinated bonds and notes of ¥2,124,009 million ($22,828,995 thousand).
5. No collateral was provided for the above Bonds and Notes.

138

Major components of Bonds and Notes as of March 31, 2009 were as follows:
IssuerDescription

Issue

Millions of yen

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–
Mar. 2009¥ 2,064,368

0.00%–
9.00%

Sep. 2010–
Oct. 2038

MHBK

Straight Bonds

Sep. 2004–
Mar. 2009

761,200

0.91%–
4.26%

Sep. 2014–

MHTB

Straight Bonds

Mar. 2004–
Mar. 2009

143,900

1.01%–
3.43%

Apr. 2014–*1

Straight Bonds

Jan. 2004–
392,153
Mar. 2004(US$3,000,000 thousand)(EUR 750,000 thousand)

4.75%–
8.37%

Apr. 2014–*2

Straight Bonds

Feb. 1997–
Jun. 2008

203,200

1.03%–
4.35%

Aug. 2010–*3

Straight Bonds

Jul. 1995–
Feb. 2009

456,195

0.93%–
8.62%

Apr. 2010–

0.00%–
20.00%

Apr. 2009–
Jul. 2047(US$1,477,274 thousand)(EUR 65,000 thousand)*4

Straight Bonds

Total

Feb. 2000–
576,386
Mar. 2009(US$ 111,042 thousand)(EUR
4,973 thousand)(AUD
520 thousand)¥ 4,597,403*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, the former MHSC and the overseas consolidated subsidiaries, Mizuho International plc and AArdvark ABS
CDO 2007-1.

Notes: 1. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
2. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2010 ¥ 87,313 million
2011 ¥116,145 million
2012 ¥689,188 million
2013 ¥667,702 million
2014 ¥593,176 million
3. Bonds and Notes as of March 31, 2009 included subordinated bonds and notes of ¥2,249,622 million.
4. No collateral was provided for the above Bonds and Notes.

25. Other Liabilities
Millions of yen
2010

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1,2
Other
Total

¥

177,221
142,392
17,75019,781
3,019,623¥ 3,376,769

¥

2009

186,709148,165
22,244
18,683
4,244,655¥ 4,620,459

Thousands of U.S. dollars
2010$

1,904,792
1,530,445
190,782
212,61432,455,107$ 36,293,740*1 Average interest rate is 3.12% in the fiscal year ended March 31, 2010. 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, 2011 ¥6,772 million ($72,791 thousand)2012 ¥4,745 million ($51,001 thousand)2013 ¥3,504 million ($37,665 thousand)2014 ¥2,297 million ($24,690 thousand)2015 ¥1,433 million ($15,402 thousand)139

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

26. Reserve for Employee Retirement Benefits(1) MHFG and domestic consolidated subsidiaries adopt the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin Seido”), the Taxqualified Pension Plans (“Tekikaku-Taishoku-Nenkin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”)
as Defined-Benefit Corporate Pension Plans. In addition, MHFG and certain domestic consolidated subsidiaries adopt DefinedContribution Pension Plans. Certain domestic consolidated subsidiaries established employee retirement benefit trusts.
(2) Reserve for Employee Retirement Benefits was reconciled as follows:
Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 1,200,969(1,267,199)¥ 1,156,667(998,778)$ 12,908,098(13,619,947)

Unfunded Projected Benefit Obligations
Unrecognized Actuarial Differences(66,230)(384,665)

157,889(680,451)(711,849)(4,134,410)

Net Amounts
Prepaid Pension Cost

(450,895)
485,159(522,562)
558,891(4,846,259)
5,214,520

As of March 31,

Projected Benefit Obligations
Plan Assets

Reserve for Employee Retirement Benefits¥

34,263¥36,329$368,261

Notes: 1. The above Projected Benefit Obligations do not include additional retirement benefits paid to employees.
2. The above Projected Benefit Obligations include the amount measured by certain consolidated subsidiaries under the
non-actuarial method.

(3) Breakdown of Employee Retirement Benefit Expenses (Gains) was as follows:
Millions of yen
2010

For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other (such as additional retirement benefits)
Net Retirement Benefit Expenses (Gains)

2009

Thousands of U.S. dollars
2010¥

24,631
29,740(14,639)
96,672
7,583¥

21,01828,871(50,991)
62,243
8,280$

264,741
319,654(157,343)
1,039,047
81,510¥143,989¥

69,422$

1,547,609

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the non-actuarial method for calculating projected benefit
obligations are included in Service Cost in full.

(4) Assumptions used in calculation of the above information were as follows:
Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periods of Service
Prior Service Cost
Amortization of Unrecognized Actuarial Differences

140

2010
Mainly 2.5%
Mainly (2.60)%3.60%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years

2009
Mainly 2.5%
Mainly 2.26%5.87%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years27. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 3,504,679
115,370
23,656¥ 3,822,044
100,004
17,769$ 37,668,520
1,240,010
254,264¥ 3,643,706¥ 3,939,818$ 39,162,794

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 ¥1,149,361 million($12,353,411 thousand) and ¥1,282,762 million as of March 31, 2010 and 2009, respectively.

(2) The principal amounts promised to be indemnified for money trusts and loan trusts, which are entrusted to domestic consolidated trust banking subsidiaries, were ¥905,343 million ($9,730,687 thousand) and ¥26,251 million ($282,157 thousand) as
of March 31, 2010 respectively, and ¥882,035 million and ¥49,756 million as of March 31, 2009 respectively.

141

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

28. Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2010

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

¥

Total

Total
Net Deferred Tax Assets

Thousands of U.S. dollars
2010

563,693
670,689425,762
194,466
377,871¥ 1,127,856
712,060
427,366
195,746
630,4312,232,483(1,273,678)

3,093,461(2,006,402)

23,994,881(13,689,577)¥

958,805¥ 1,087,059$ 10,305,304¥(174,170)(87,310)(176,520)¥(202,707)(24,591)(145,085)$ (1,871,992))(938,417)(1,897,258)¥(438,001)¥(372,384)$ (4,707,667)¥

520,804¥

714,674$

Millions of yen
2010

2009

Deferred Tax Assets Subtotal:
Valuation Allowance
Deferred Tax Liabilities:
Prepaid Pension Cost
Net Unrealized Gains on Other Securities
Other

2009

$

6,058,611
7,208,619
4,576,123
2,090,144
4,061,384

5,597,637

Balances reported on the Consolidated Balance Sheets:
As of March 31,

Thousands of U.S. dollars
2010

Deferred Tax Assets
Deferred Tax Liabilities¥

533,030(12,226)¥

722,160(7,486)$

5,729,049(131,412)

Net Deferred Tax Assets¥

520,804¥

714,674$

5,597,637

Notes: 1. In addition to the balances shown in the above table, there is an equivalent amount of deferred tax assets corresponding to tax losses
carried forward of ¥1,432,751 million ($15,399,302 thousand) and ¥1,431,351 million and as of March 31, 2010 and 2009, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax assets in the above table
and in the balance sheets exclude the equivalent amount of deferred tax assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.

For the fiscal year ended March 31, 2010, the reconciliation of the statutory tax rate of MHFG to the effective income tax rate
was as follows:
For the Fiscal Year ended March 31, 2010

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends Received)
Tax Rate Differences between the Consolidated Subsidiaries
Other

40.69)%(20.81)(6.14)(8.17)
5.86

Effective Income Tax Rate

11.42)%

Note: For the fiscal year ended March 31, 2009, the reconciliation of the statutory tax rate of MHFG to the effective income tax rate is not stated as
MHFG recorded Loss before Income Taxes and Minority Interests.

14229. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34, dated March 31, 1998), land used for business operations ofdomestic consolidated banking subsidiaries was revalued on March 31, 1998. In accordance with Article 2, Item 4 of the
Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119, promulgated on March 31, 1998),
the revaluation was performed by the method of calculating the value along with reasonable adjustments, such as for the condition of the land.
The applicable income taxes on the entire excess of revaluation are included in Deferred Tax Liabilities for Revaluation Reservefor Land under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land, net of
Taxes included in Net Assets.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total book value ofthe land after such revaluation was ¥149,569 million ($1,607,585 thousand) and ¥123,580 million as of March 31, 2010
and 2009, respectively.

30. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2010 and 2009 were as follows:
Number of shares
As of March 31, 2010
Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

Per share (Yen)

Issued andInterimYear-end
outstanding cash dividend cash dividend

24,115,759,000 15,494,397,690
1,369,512,000
914,752,000
1,500,000,000
36,690,000

¥

—
—
—

¥

8 ¥
20
30

With
Liquidation Convertible Redemption
value
or notor not

—
1,000
1,000

No
Yes
No

No
No
Yes

Notes: 1. Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
9,397 thousand shares
Eleventh Series Class XI Preferred Stock
415,471 thousand shares
2. The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000,000.
Number of shares
As of March 31, 2009Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

Per share (Yen)

Issued andInterimYear-end
outstanding cash dividend cash dividend

24,115,759,000 11,178,940,660
1,369,512,000
914,752,000
1,500,000,000
36,690,000

¥

—
—
—

¥

10 ¥
20
30

With
Liquidation Convertible Redemption
value
or notor not

—
1,000
1,000

No
Yes
No

No
No
Yes

Notes: 1. Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
11,335 thousand shares
Eleventh Series Class XI Preferred Stock2,801 thousand shares
2. The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000,000.

143

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

31. Stock Options(1) Total amount of stock options expensed were as follows:
Millions of yen
2010

2009

¥

1,548

¥

1,187

$

16,640

¥

1,548

¥

1,187

$

16,640For the Fiscal Years ended March 31,

General and administrative expenses
Total

Thousands of U.S. dollars
2010(2) Outline of stock options and changes
For the fiscal year ended March 31, 2010
Mizuho Financial Group, Inc.
(i) Outline of stock options
As of March 31, 2010

First Series of Stock Acquisition Rights
of MHFG

Second Series of Stock Acquisition Rights
of MHFG

Number of grantees

Directors
Executive Officers
Directors of subsidiaries of MHFG
Executive Officers of subsidiaries
of MHFG44
14

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

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.

Required service period

July 1, 2008 to March 31, 2009

April 1, 2009 to March 31, 2010

Exercise period

February 17, 2009 to February 16, 2029

September 28, 2009 to September 25, 2029

71

5,409,000

Directors
Executive Officers
Directors of subsidiaries of MHFG
Executive Officers of subsidiaries
of MHFG
Common stock

4
4
14
71

5,835,000

September 25, 2009

*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2010

First Series of Stock Acquisition Rights
of MHFG

Non-vested
As of March 31, 2009

Second Series of Stock Acquisition Rights
of MHFG

5,279,000—

Granted—5,835,000

Forfeited——

Vested

1,824,000—

Outstanding

3,455,000

5,835,000

VestedAs of March 31, 2009

130,000—

Vested

1,824,000—

Exercised1,954,000—

Forfeited——

Outstanding——

Note: The above table is shown in number of shares.

(b) Price information
As of March 31, 2010

144

First Series of Stock Acquisition Rights
of MHFG

Second Series of Stock Acquisition Rights
of MHFG

Exercise price¥

1 per share¥

1 per share

Average stock price upon exercise¥

208.83—

Fair value at grant date

¥ 190.91 per share¥ 168.69 per share

(iii) Calculation for fair value of stock options
The fair value of Second Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2010 is calculated as follows:• Calculation method: The Black-Scholes Model• Assumptions used in calculation
As of March 31, 2010

Second Series of Stock Acquisition Rights of MHFG

Volatility of stock price*1

67.184%

Estimated remaining outstanding period*2

1.86 years

Expected dividend*3¥ 8 per share

Risk-free interest rate*40.215%*1 Historical volatility calculated from MHFG stock prices over the 97 weeks ending on the business day (September 24, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 1.86 years.
*2 The average period of service of directors at MHFG and the subsidiaries of the grantees.
*3 The expected dividend on common stock for the fiscal year ended March 31, 2010.
*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.

Mizuho Trust & Banking Co., Ltd.
(i) Outline of stock options
As of March 31, 2010

First Series of Stock Acquisition Rights
of MHTB

Second Series of Stock Acquisition Rights
of MHTB

Number of grantees

Directors
Executive Officers

720

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

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 MHTB immediately following thedate on which such grantee loses the status as a Director or an Executive Officer of MHTB.

Required service period

July 1, 2008 to March 31, 2009

April 1, 2009 to March 31, 2010

Exercise period

February 17, 2009 to February 16, 2029

July 11, 2009 to July 10, 2029

1,695,000

Directors
Executive Officers
Common stock7
18
1,744,000

July 10, 2009

*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2010

First Series of Stock Acquisition Rights
of MHTB

Non-vested
As of March 31, 2009
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2009

Second Series of Stock Acquisition Rights
of MHTB

1,695,000——

1,744,000——

615,000—

1,080,000

1,744,000——

Vested615,000—

Exercised

615,000—

Forfeited——

Outstanding——

Note: The above table is shown in number of shares.

145

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Price information
First Series of Stock Acquisition Rights
of MHTB

As of March 31, 2010

Second Series of Stock Acquisition Rights
of MHTB

Exercise price¥

1 per share

Average stock price upon exercise¥

105.93¥

1 per share—

Fair value at grant date¥

91.49 per share¥ 110.00 per share(iii) Calculation for fair value of stock options
The fair value of Second Series of Stock Acquisition Rights of MHTB granted in the fiscal year ended March 31, 2010 is calculated as follows:• Calculation method: The Black-Scholes Model• Assumptions used in calculation
As of March 31, 2010

Second Series of Stock Acquisition Rights of MHTB

Volatility of stock price*1

49.137%

Estimated remaining outstanding period*2

1.84 years

Expected dividend*3¥ 0 per share

Risk-free interest rate*40.228%*1 Historical volatility calculated from MHTB stock prices over the 96 weeks ending on the business day (July 9, 2009) prior to the grant date, an interval equivalent to the estimated remaining
outstanding period of 1.84 years.
*2 The average period of service of directors at MHTB.
*3 Since the expected dividend on common stock for the fiscal year ended March 31, 2010 had not been determined on the business day (July 9, 2009) prior to the grant date, it depended on
the dividend on common stock for the fiscal year ended March 31, 2009.
*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.

Mizuho Securities Co., Ltd.
(i) Outline of stock options
As of March 31, 2010

Directors
Executive Officers

Number of stock options*1

Common stock

Grant dateAugust 18, 2009

Condition for vesting

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 MHSC immediately following thedate on which such grantee loses the status as a Director or an Executive Officer of MHSC.
In cases where the grantee assumes the status as a Director or an Executive Officer of
MHSC immediately after the grantee loses the status as a Director or an Executive Officer
of MHSC, the grantee may exercise the Stock Acquisition Rights immediately following thedate on which said grantee finally and definitely loses the status as a Director or an
Executive Officer of MHSC.

Required service period

July 1, 2009 to March 31, 2010

Exercise period

August 19, 2009 to August 18, 2029

*1 Shown in number of shares

146

Second Series of Stock Acquisition Rights of MHSC

Number of grantees

860
1,217,000

(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2010

Second Series of Stock Acquisition Rights of MHSC

Non-vested
As of March 31, 2009—

Granted

1,217,000

Forfeited

2,000

Vested50,000

Outstanding

1,165,000

VestedAs of March 31, 2009—

Vested50,000Exercised

16,000Forfeited—

Outstanding

34,000Note: The above table is shown in number of shares.

(b) Price information
As of March 31, 2010

Second Series of Stock Acquisition Rights of MHSC

Exercise price¥

1 per share

Average stock price upon exercise¥

265.00Fair value at grant date

¥ 306.21 per share(iii) Calculation for fair value of stock options
The fair value of Second Series of Stock Acquisition Rights of MHSC granted in the fiscal year ended March 31, 2010 is calculated as follows:• Calculation method: The Black-Scholes Model• Assumptions used in calculation
As of March 31, 2010

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Second Series of Stock Acquisition Rights of MHSC

51.64%
3.03 years¥ 5 per share
0.375%*1 Historical volatility calculated from MHSC stock prices over the 158 weeks ending on the business day (August 17, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 3.03 years.
*2 The average period of service of directors at MHSC.
*3 The dividends and others with consideration of the merger made on May 7, 2009.
*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.

147

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the Fiscal Year ended March 31, 2009
Mizuho Financial Group, Inc.
(i) Outline of stock options
As of March 31, 2009First Series of Stock Acquisition Rights of MHFG

Number of grantees

Directors
Executive Officers
Directors of subsidiaries of MHFG
Executive Officers of subsidiaries of MHFG

4
4
14
71

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

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 oran Executive Officer of MHFG, MHBK or MHCB.

Required service period

July 1, 2008 to March 31, 2009

Exercise period

February 17, 2009 to February 16, 2029

5,409,000*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2009First Series of Stock Acquisition Rights of MHFG

Non-vested
As of March 31, 2008—

Granted

5,409,000

Forfeited—

Vested130,000

Outstanding

5,279,000

VestedAs of March 31, 2008—

Vested130,000

Exercised—

Forfeited—

Outstanding

130,000

Note: The above table is shown in number of shares.

(b) Price information
As of March 31, 2009

Exercise price
Average stock price upon exercise
Fair value at grant date

First Series of Stock Acquisition Rights of MHFG¥

1 per share—¥ 190.91 per share(iii) Calculation for fair value of stock options
The fair value of First Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2009 is calculated as follows:• Calculation method: The Black-Scholes Model148

• Assumptions used in calculation
As of March 31, 2009First Series of Stock Acquisition Rights of MHFG

Volatility of stock price*1

61.05%

Estimated remaining outstanding period*2

1.78 years

Expected dividend*3¥ 10 per share

Risk-free interest rate*40.379%*1 Historical volatility calculated from MHFG stock prices over the 93 weeks ending on the business day (February 13, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 1.78 years.
*2 The average period of service of directors at MHFG and the subsidiaries of the grantees.
*3 The expected dividend on common stock for the fiscal year ended March 31, 2009.
*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.

Mizuho Trust & Banking Co., Ltd.
(i) Outline of stock options
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Number of grantees

Directors
Executive Officers

720

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

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 MHTB immediately following thedate on which such grantee loses the status as a Director or an Executive Officer of MHTB.

Required service period

July 1, 2008 to March 31, 2009

Exercise period

February 17, 2009 to February 16, 2029

1,695,000*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2009Non-vested
As of March 31, 2008

First Series of Stock Acquisition Rights of MHTB—

Granted

1,695,000

Forfeited—

Vested—Outstanding
VestedAs of March 31, 2008

1,695,000—

Vested—Exercised—

Forfeited—

Outstanding—

Note: The above table is shown in number of shares.

149Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Price information
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Exercise price¥

1 per share¥

91.49 per share

Average stock price upon exercise—

Fair value at grant date(iii) Calculation for fair value of stock options
The fair value of First Series of Stock Acquisition Rights of MHTB granted in the fiscal year ended March 31, 2009 is calculated as follows:• Calculation method: The Black-Scholes Model• Assumptions used in calculation
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Volatility of stock price*1

46.19%

Estimated remaining outstanding period*2

1.52 years

Expected dividend*3¥ 1 per share

Risk-free interest rate*40.359%*1 Historical volatility calculated from MHTB stock prices over the 79 weeks ending on the business day (February 13, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 1.52 years.
*2 The average period of service of directors at MHTB.
*3 The expected dividend on common stock for the fiscal year ended March 31, 2009 on one business day prior to the grant date of February 13, 2009.
*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.

32. Interest Income and Interest Expenses
Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 1,047,718
350,536
3,675
10,21434,292
9,148
116,408¥ 1,367,354
466,785
8,253
36,393
149,001
37,85378,793$ 11,260,945
3,767,586
39,507
109,786
368,574
98,3311,251,169¥ 1,571,994¥ 2,144,436$ 16,895,898¥¥$ 2,086,356
128,542
118,606
362,888
125,678—
387,186
1,308,017

For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses
Total
Net

150

194,114
11,95911,03533,763
11,693—36,023
121,697

477,195
17,594
46,394
196,546
41,493
21
74,093
222,244420,287

1,075,584

4,517,273¥ 1,151,707¥ 1,068,851$ 12,378,625

33. Trading Income and Trading Expenses
Millions of yen
2010

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for Trading Transactions

¥

Total

¥

312,330

Trading Expenses:
Net Losses on Trading Securities
Total
Net

190,367
121,963¥

2009

Thousands of U.S. dollars
2010

44,334
257,187$ 2,046,080
1,310,870

301,5213,356,950

—

—

—

—

—

—

¥

301,521$ 3,356,950

Millions of yen
2010

2009

Thousands of U.S. dollars
2010

312,330

34. Other Operating Income
For the Fiscal Years ended March 31,

Gains on Foreign Exchange Transactions
Gains on Sales of Bonds
Other
Total

¥

14,958123,079
40,984¥18,013
188,774
52,363$

160,771
1,322,861
440,505¥

179,021¥259,151$ 1,924,137

Millions of yen
2010

2009

Thousands of U.S. dollars
2010

35. Other Operating Expenses
For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other than for Trading or Hedging
Losses on Devaluation of Bonds
Other

¥

82,941
13,207
14,01751,417¥201,705—
37,46955,927$¥

161,584¥

295,102$ 1,736,724

For the Fiscal Year ended March 31, 2010

Millions of yen

Thousands of U.S. dollars

Gains on Sales of Stock
Recovery on Written-off Loans
Gains on Disposition of Fixed Assets
Gains on Negative Goodwill Incurred
Other

¥

108,61545,034
3,063
68,206
41,205$ 1,167,405
484,032
32,930733,089442,881¥

266,125$ 2,860,337

For the Fiscal Year ended March 31, 2009

Millions of yen

Thousands of U.S. dollars

Gains on Sales of Stock
Recovery on Written-off Loans
Gains on Disposition of Fixed Assets
Other

¥

100,688
19,001
2,205
138,673$ 1,024,712
193,382
22,444
1,411,287¥

260,568$ 2,651,825

Total

891,466
141,957
150,665552,636

36. Other Income

Total

Total

Note: Other includes profits of ¥72,617 million related to credit risk mitigation transactions at domestic banking
subsidiaries and a trust banking subsidiary, and gains on derivatives related to stocks and others of ¥32,096
million at domestic consolidated banking subsidiaries.

151

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

37. Other Expenses
For the Fiscal Year ended March 31, 2010

Millions of yen

Impairment Losses of Stocks
Provision for Reserves for Possible Losses on Loans
Write-offs of Loans
Losses on Disposition of Fixed Assets
Expenses related to Credit Risk Mitigation Transactions
Losses on Change in Equity Position associated with the Merger of the Securities Subsidiary
Losses related to Step Acquisition
Other

¥

53,533
116,115
129,379
8,898
90,642
34,40813,670121,079$

575,383
1,248,017
1,390,579
95,644974,227
369,822
146,936
1,301,374¥

567,728$

6,101,982

Total

For the Fiscal Year ended March 31, 2009

Millions of yen

Impairment Losses of Stocks
Provision for Reserves for Possible Losses on Loans
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Impairment of Fixed Assets
Other

¥

Total

482,163
280,250
272,328
11,155
10,898
223,915

Thousands of U.S. dollars

Thousands of U.S. dollars$

4,907,014
2,852,135
2,771,509
113,526
110,915
2,278,803¥ 1,280,711$ 13,033,902

Impairment loss
(Thousands of U.S. dollars)

Notes: 1. Losses on Impairment of Fixed Assets are recognized for the following assets:
Area

Principal purpose of use

Type

Impairment loss
(Millions of yen)—

Idle assets

Software, etc.

¥

—

—

Other

9,211
1,687

Regarding Software, etc., certain domestic consolidated subsidiaries recognized Losses on Impairment of Fixed
Assets for idle assets due to discontinuance of development of the next generation mainframe computer system.
For the purposes of identifying idle assets for which Losses on Impairment of Fixed Assets have been recognized,
the individual asset is assessed as a unit. The recoverable amount is calculated based on net realizable value.
The net realizable value is evaluated with a realizable value of zero.
2. Other includes an amount of ¥10,828 million resulting from the adoption of accounting standards for lease. As“Accounting Standard for Lease Transactions” (ASBJ Statement No.13, March 30, 2007) and “Guidance on
Accounting Standard for Lease Transactions” (ASBJ Guidance No.16) are applied from the fiscal year beginningon or after April 1, 2008, MHFG has applied the new accounting standard and guidance beginning with the fiscal
year 2008. Although MHFG accounted for finance leases that do not involve transfer of ownership to lessee as
operating leases, by this application, MHFG accounts for them as normal trade transactions including thetransactions that started before the end of fiscal year 2007. The amount of cumulative effect until the end of
fiscal year 2007 on Loss before Income Taxes and Minority Interests is recorded in Other Expenses.

152$

93,741
17,174

38. Changes in Net Assets
For the fiscal year ended March 31, 2010(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred Stock
Total

As of
March 31, 2009

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2010

11,178,940
914,752
36,6904,315,457
—
—

—
—
—

15,494,397
914,752
36,69012,130,382

4,315,457—

16,445,839

11,3352,801

23412,670

1,962
—

9,397
415,471

14,136412,693

1,962

424,868

Remarks*1*2*3*1 Increases are due to request for acquisition (conversion) of preferred stock (1,315,457 thousand shares), capital increase by public offering(2,804,400 thousand shares), and capital increase by way of third-party allotment (195,600 thousand shares).
*2 Increases are due to repurchase of shares constituting less than one unit, and decreases are due to exercise of stock acquisition rights (stock
option) (1,954 thousand shares) and additional purchase of shares constituting less than one unit (8 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

Breakdownof stockacquisitionrightsStockacquisition rights(Treasury stockacquisition rights)
Stock acquisitionrights as
stock option

Consolidated subsidiaries(Treasury stockacquisition rights)
Total

Class of shares
to be issued
or transferred
upon exerciseof stockacquisitionrights—Number of shares to be issued
or transferred upon exerciseof stock acquisition rights (Shares)
As ofMarch 31,
2009

Increaseduring the
fiscal year

Decreaseduring the
fiscal year

As of
March 31,
2010

—
(—)

—
(—)

—
(—)

—
(—)

Balance asof March
31, 2010

Balance asof March
31, 2010(Millionsof yen)(Thousandsof U.S.dollars)

¥

—
(—)

$

Remarks

—
(—)

—

1,643

17,669

—

657
(—)

7,070
(—)

—

¥ 2,301(—)$ 24,739(—)

153

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows:
Cash dividends paid during the fiscal year ended March 31, 2010
Cash Dividends
Cash Dividends
Resolution

June 25,
2009

(

)

Ordinary
General Meetingof Shareholders

Cash Dividends
per Share

Cash Dividends
per Share(Yen)(U.S. dollars)

RecordDate

Types(Millions of yen)(Thousand of
U.S. dollars)Common Stock¥ 111,676$ 1,200,302¥ 10$ 0.11March 31,2009

Eleventh Series Class XI
Preferred Stock

18,239196,03420

0.21

March 31,
2009

Thirteenth Series Class XIII
Preferred Stock

1,100

11,83030

0.32

March 31,2009

¥ 131,015$ 1,408,166

/

/

Total

Effective
Date

June 25,
2009

Cash dividends with record dates falling in the fiscal year ended March 31, 2010 and effective dates coming after the end of the
fiscal year
Cash Dividends
Cash Dividends
Resolution

June 22,
2010

(

)

Ordinary
General Meetingof Shareholders

Resource ofDividends

Types(Millions of yen)(Thousand of
U.S. dollars)Common Stock¥ 123,880$ 1,331,471

Retained
Earnings

Eleventh Series Class XI
Preferred Stock

9,985

107,326

Thirteenth Series Class XIII
Preferred Stock

1,100

11,830¥ 134,966$ 1,450,627

Total

Cash Dividends Cash Dividends
per Shareper Share

RecordDate(Yen)(U.S. dollars)8$ 0.09March 31,2010

Retained
Earnings

20

0.21

March 31,2010

Retained
Earnings30

0.32

March 31,
2010

/

/

¥

Effective
Date

June 22,2010

For the fiscal year ended March 31, 2009(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred Stock
Total

As of
March 31, 2008

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2009

Remarks

11,396943
36

11,167,820
913,837
36,653276
28—

11,178,940
914,752
36,690*1*2*3

12,376

12,118,311

305

12,130,382

4—

11,621
2,829

290
28

11,3352,801

414,451319

14,136*4*5*1 Increases are due to request for acquisition (conversion) of preferred stock (59 thousand shares) and allotment of shares or fractions of ashare without consideration (11,167,761 thousand shares), and decreases are due to cancellation of treasury stock (common stock).
*2 Increases are due to allotment of shares or fractions of a share without consideration and decreases are due to cancellation of treasury stock(preferred stock).
*3 Increases are due to allotment of shares or fractions of a share without consideration.
*4 Increases are due to repurchase of treasury stock (283 thousand shares of common stock), repurchase of fractional shares and sharesconstituting less than one unit (11 thousand shares), and allotment of shares or fractions of a share without consideration (11,326 thousand
shares), and decreases are due to cancellation of treasury stock (276 thousand shares of common stock), repurchase of fractional shares andshares constituting less than one unit (11 thousand shares) and others.
*5 Increases are due to request for acquisition (conversion) of preferred stock (31 thousand shares) and allotment of shares or fractions of ashare without consideration (2,798 thousand shares), and decreases are due to cancellation of treasury stock (preferred stock).

154

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Breakdownof stockacquisitionrightsCategory

MHFGClass of shares
to be issued
or transferred
upon exerciseof stockacquisitionrightsStockacquisition rights(Treasury stockacquisition rights)—

Number of shares to be issued
or transferred upon exerciseof stock acquisition rights (Shares)
As ofMarch 31,
2008

Increaseduring the
fiscal year

Decreaseduring the
fiscal year

As of
March 31,
2009

—
(—)

—
(—)

—
(—)

—
(—)

Stock acquisitionrights as
stock option
Consolidated subsidiaries(Treasury stockacquisition rights)
Total

Balance asof March
31, 2009(Millionsof yen)

¥

—
(—)

—

1,032

—

155
(—)

—

Remarks¥ 1,187(—)(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2009

Resolution

June 26,
2008

(

)

Ordinary
General Meetingof Shareholders

Cash Dividends

Cash Dividends
per Share

Types(Millions of yen)

(Yen)

Common Stock¥ 113,922¥ 10,000March 31,2008

Eleventh Series Class XI
Preferred Stock18,87420,000March 31,
2008

Thirteenth Series Class XIII
Preferred Stock

1,100

30,000March 31,2008

¥ 133,898

/

Total

RecordDate

Effective
Date

June 26,
2008

Cash dividends with record dates falling in the fiscal year ended March 31, 2009 and effective dates coming after the end of the
fiscal year
Cash Dividends
Resolution

June 25,
2009

(

)

Ordinary
General Meetingof Shareholders

Total

Resource ofDividends

Cash Dividends
per Share

RecordDate

Types(Millions of yen)

Common Stock¥ 111,676

Retained
Earnings¥ 10

March 31,2009

Eleventh Series Class XI
Preferred Stock

18,239Retained
Earnings

20

March 31,
2009

Thirteenth Series Class XIII
Preferred Stock

1,100

Retained
Earnings

30

March 31,2009

¥ 131,015(Yen)

Effective
Date

June 25,2009/

We conducted an allotment of shares or fractions of a share without consideration on January 4, 2009.

155

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Cash Flows(1) Cash and Cash Equivalents on the consolidated statements of cash flows reconciles to Cash and Due from Banks on the consolidated balance sheets as follows:
Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥ 5,211,477(532,693)¥ 5,720,253(671,581)$ 56,013,298(5,725,423)¥ 4,678,783¥ 5,048,671$ 50,287,875

As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding due from Central Banks
Cash and Cash Equivalents(2) Significant non-fund transaction:
Amount and breakdown of assets received and liabilities undertaken as a result of the merger between the former MHSC
and Shinko are as follows:
For the Fiscal Year ended March 31, 2010

Millions of yen

Thousands of U.S. dollars

Total assets:
Trading assets included in the above:
Total liabilities:
Trading liabilities included in the above:¥ 2,321,155
1,008,003
2,020,673
671,840$ 24,947,932
10,834,091
21,718,331
7,220,990

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 “6. Standards of Accounting Method (7) Lease Assets.”

Operating Leases
The future lease payments subsequent to the end of the fiscal year for noncancelable operating lease transactions are summarized as follows:

Lessees:Millions of yen
2010

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

38,007105,268¥ 143,275

2009¥

39,529130,461

Thousands of U.S. dollars
2010$

408,509
1,131,429¥ 169,990$ 1,539,938

2009

Thousands of U.S. dollars
2010

Lessors:
Millions of yen
2010

As of March 31,

Due in One Year or Less
Due after One Year
Total

156

¥

1,705
8,406

¥

1,479
7,826

$

18,33090,351¥

10,111

¥

9,305

$

108,68141. Financial Instruments
1. Matters relating to the conditions of financial instruments(1) Policy on financial instruments
Mizuho Financial Group (the “Group”), which primarily engages in banking business, incurs financial liabilities such as customer
deposits and funding received from the financial markets on the funding side while holding financial assets such as customer
loans, stocks and bonds on the investment side, and also engages in trading business for certain financial products. Some subsidiaries conduct securities business and other financial business.
For the above funding and investment business, the Group manages appropriately the risks of each financial instrument andcarefully matches difference in transaction terms and other risk factors.
(2) Contents and Risk of Financial Products
The main financial assets of the Group consist of loans to customers and securities such as Japanese stocks and government
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 be incurred by the Group due to a decline in, or total lossof, the value of assets, as a result of deterioration in a counterparty's and an issuer's financial position (“credit risk”), or
incurred by the Group due to fluctuations in interest rates, stock prices and foreign exchange rates and so on (“market risk”).
The main financing source of the Group is a stable source of deposits from its customers in addition to direct funding fromthe financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising from funding difficulties
due to 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 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 the portfolio 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 fairvalue hedges.
The Group applies hedge accounting to the majority of these products, treating them as deferred hedges. The effectivenessof the hedges is assessed periodically by regression analysis and other methods to ensure whether the derivative financial products effectively work in order to offset the exposure to changes in fair value and variable cash flows from hedged items. It
should be noted that the Group uses derivative financial products for trading purposes and so on as well.
Progress in financial deregulation and internationalization has led to growth in the diversity and complexity of financial assets
and liabilities of the Group, exposing the Group 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 to overallmanagement. 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 the entire
Group. These policies clearly define the kinds of risks to be managed, set forth the organizational structure and provide forthe human resources training necessary for appropriate levels of risk management. The policies also provide for audits tomeasure the effectiveness and suitability of the risk management structure. In line with 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 andevaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that are manageriallyacceptable in both qualitative and quantitative terms.
More specifically, we allocate risk capital to our principal banking subsidiaries and other core group companies to control
risk within the limits set for each company. We also control risk within managerially acceptable limits by working to ensure

157

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statementsthat the overall risk we hold on a consolidated basis does not exceed shareholders' equity and other measures offinancial strength.
To ensure the ongoing financial health of the 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 this framework. Reports are also submitted to the board of directors and other committees of each company.
(c) 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 this process, we curb losses in
the case of a credit event. The second is “credit portfolio management,” in which we utilize statistical methods to assess thepotential for losses related to credit risk. Through this process, we identify credit risk and respond appropriately.
Our board of directors determines the MHFG's key matters pertaining to credit risk management. In addition, we haveestablished the Portfolio Management Committee as one of its business policy committees. This committee of MHFG discusses and coordinates basic policy in connection with credit risk management and matters in connection with overall credit
portfolio management and credit risk monitoring for the Group. Under the control of the Chief Risk Officer of MHFG, theRisk Management Division and the Credit Risk Management Division jointly monitor, analyze and submit suggestions concerning credit risk and formulate and execute plans in connection with basic matters pertaining to credit risk management.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a one-year 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 too large a proportion of overall credit risk to be allocated in certain areas. One type is “credit concentration risk,” which stems from granting excessive credit to certain individual counterparties. The other type is “chain-reaction
default risk,” which arises from granting excessive credit to certain corporate groups, industrial sectors and other groupings.
We manage these risks appropriately in line with our specific guidelines for each.
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 MHFG. 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 matters relating toplanning 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 individual transactions regarding review andmanagement of and collection from customers in accordance with the lines of authority set forth by each principal banking
subsidiary. In addition, from the standpoint of internal controls, each of our principal banking subsidiaries has alsoestablished 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 MHFG determines key matters pertaining to market risk management policies. In addition, we haveestablished the ALM & Market Risk 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 MHFG is responsible for matters relating to market risk management planning and operations.
The Risk Management Division of MHFG is responsible for monitoring market risk, reports and analyses, proposals, setting
limits and guidelines, and formulating and implementing plans relating to market risk management. In addition, the divisionassesses and manages the overall market risk of the Group as a whole and keeps track of the market risk situation of ourprincipal banking subsidiaries and other core group companies. The division also submits reports to the Chief Executive
Officer on a daily basis and to our board of directors and the executive management committee of MHFG on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital allocated tomarket risk corresponds to VaR and additional costs that may arise in order to close relevant positions. 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.

158

Our principal banking subsidiaries and certain other core group companies have formulated their basic policies in line withthe basic policies determined by MHFG. Their boards of directors determine important matters relating to market risk management while their Chief Executive Officers are responsible for controlling market risk. Based on a common Mizuho
Financial 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 MHFG.
Our principal banking subsidiaries and certain other core group companies have the same market risk management structure as MHFG, such as their business policy committees being responsible for overall discussion and coordination of the market risk management, including their ALM & market risk management committees.
In addition, they have established middle offices specializing in risk management that are independent of their front
offices, which engage in market transactions, and their back offices, which are responsible for book entries and settlements.
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) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure described above(“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of MHFG 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 flow management situation and for planning andimplementing cash flow management. Reports on the cash flow situation are submitted to the ALM & market risk management committee, the executive management committee and the Chief Executive Officer.
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 ALM & market risk management committee, discussed further by the executive management committee and determined by the Chief Executive Officer. We have established classifications for the cash
flow conditions affecting the Group, ranging from “normal” to “cause for concern” and “critical,” and have establishedprocedures for dealing with cases which are deemed to fall into the “cause for concern” or “critical” 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 obtainedby 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.

159

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

2. Matters relating to fair value of financial instruments and others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31, 2010.
Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded from the table below(see (Note 2)).
Millions of yen

Consolidated Balance
Sheet Amount(1) Cash and Due from Banks*1(2) Call Loans and Bills Purchased*1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing Transactions(5) Other Debt Purchased*1(6) Trading Assets
Trading Securities(7) Money Held in Trust*1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans*1¥

5,211,053
604,860
7,129,676
5,744,901
2,038,933

Fair value¥

5,211,053
604,860
7,129,676
5,744,901
2,036,556

Difference

¥

—
—
—
—
(2,376)9,920,842
119,376

9,920,842
119,376——

603,378
41,737,970
62,164,579(795,821)
61,368,758

607,41241,737,970

4,033
—

61,715,589

Total Assets¥ 134,479,751¥ 134,828,239¥

348,487(1) Deposits(2) Negotiable Certificates of Deposit(3) Debentures(4) Call Money and Bills Sold
(5) Payables under Repurchase Agreements(6) Guarantee Deposits Received under Securities Lending Transactions(7) Trading Liabilities
Securities Sold, Not yet Purchased(8) Borrowed Money(9) Bonds and Notes¥ 76,339,779
10,287,808
1,517,797
5,786,370
12,075,802
6,615,512¥ 76,298,271
10,286,817
1,515,411
5,786,370
12,075,802
6,615,512¥(41,508)(991)(2,386)———

4,113,188
9,663,867
4,970,257

4,113,188
9,682,681
5,070,043

Total Liabilities¥ 131,370,385¥ 131,444,098¥

73,713¥¥—

Derivative Transactions*2
Derivative Transactions not Qualifying for Hedge Accounting
Derivative Transactions Qualifying for Hedge Accounting
Reserves for Derivative Transactions*1
Total Derivative Transactions¥

568,113285,872(31,929)¥

822,056

822,056

346,831—
18,81399,786*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 and Trading Liabilities and Other Assets and Other Liabilities are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis.

160

Thousands of U.S. dollars

Consolidated Balance
Sheet Amount(1) Cash and Due from Banks*1(2) Call Loans and Bills Purchased*1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing Transactions(5) Other Debt Purchased*1(6) Trading Assets
Trading Securities(7) Money Held in Trust*1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans*1$

Total Assets

Derivative Transactions*2
Derivative Transactions not Qualifying for Hedge Accounting
Derivative Transactions Qualifying for Hedge Accounting
Reserves for Derivative Transactions*1
Total Derivative Transactions

Fair value$

56,008,744
6,501,075
76,630,228
61,746,574
21,889,040

Difference

$

—
—
—
—
(25,548)

106,629,864
1,283,066

106,629,864
1,283,066——

6,485,156
448,602,436
668,148,963(8,553,539)
659,595,424

6,528,506
448,602,436

43,350—663,323,193$ 1,445,397,155$ 1,449,142,726$

3,745,571$$(446,134)(10,657)(25,651)———(1) Deposits$(2) Negotiable Certificates of Deposit(3) Debentures(4) Call Money and Bills Sold
(5) Payables under Repurchase Agreements(6) Guarantee Deposits Received under Securities Lending Transactions(7) Trading Liabilities
Securities Sold, Not yet Purchased(8) Borrowed Money(9) Bonds and Notes
Total Liabilities

56,008,744
6,501,075
76,630,228
61,746,574
21,914,588

820,504,943
110,574,043
16,313,388
62,192,284
129,791,515
71,103,964

820,058,809
110,563,386
16,287,737
62,192,284
129,791,515
71,103,964

3,727,769

44,208,815
103,867,881
53,420,652

44,208,815
104,070,090
54,493,164$ 1,411,977,485$ 1,412,769,764$

792,279

$

$

—

$

6,106,116
3,072,577(343,177)$

8,835,516

8,835,516—
202,209
1,072,512*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 and Trading Liabilities and Other Assets and Other Liabilities are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis.

(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 the book values to be fairvalues. For Due from Banks which have maturity, since contractual terms of these items are short (i.e., within six months) and fair values ofthese 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 short (i.e., within six months) and fair values of these items approximate book values, we deem thebook 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 reasonable estimate such as thoseobtained 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

161

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

purpose, stocks are based on the prices on stock exchanges, and bonds are based on the market prices and others. For other Money Held inTrust, since fair values of these items approximate book values, we deem the book values to be fair values. 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 the market prices,valuations obtained from brokers and information vendors and others. Fair values of investment trusts are based on the disclosed net asset
value. 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 Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fairvalue, are based on the reasonably calculated prices as book value at the end of the current fiscal year. 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.
With respect to the credit investments in securitization products made as an alternative to loans by the European, North American andother offices of domestic consolidated banking subsidiaries, given the current situation in which the volume of actual transactions is extremely
limited and there exists a considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained frombrokers and information vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonableestimates of our management as fair value. 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, and the subject Securities included residential mortgage-backed securities, collateralized loan obligations,commercial mortgage-backed securities, and other asset backed securities.
The notes to Securities based on holding purpose are stated in “42. Fair Value of Securities and Money Held in Trust.”(9) Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at interest rates based on the
discount rate reflecting expected loss and various risk factors by categories according to the types, internal ratings and terms of the Loans andBills Discounted. In addition, as to claims against bankrupt obligors, substantially bankrupt obligors and intensive control obligors, since theestimated amount of bad debts is calculated based on the present value of the expected future cash flows or the estimated amounts that wewould be able to collect from collateral and guarantees, fair values approximate the consolidated balance sheet amount as of theconsolidated balance sheet date minus the present estimated amount of bad debts, 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 ofpledged assets, we deem book values to be fair values since fair values are expected to approximate book values based on the estimated loan
periods, interest rates and other conditions.
Liabilities(1) Deposits
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., book values) to be fair values. In
addition, fair values of fixed deposits are calculated by classifying them based on their terms and by discounting the future cash flows. The
discount rates used in such calculations are the interest rates.
(2) Negotiable Certificates of Deposit
Fair values of Negotiable Certificates of Deposit are calculated by classifying them based on their terms and by discounting the future cash
flows. The discount rates used in such calculations 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) Debentures
Fair values of Debentures are based on the market prices for the debentures which have market prices, and calculated by classifying thembased on their terms and by discounting the future cash flows for those which do not have market prices. The discount rates used in suchcalculations are the interest rates.
(4) Call Money and Bills Sold, (5) Payables under Repurchase Agreements and (6) Guarantee Deposits Received under Securities Lending
Transactions
Since contractual terms of these financial instruments are short (i.e., within six months) and fair values approximate book values, we deemthe book values to be fair values.
(7) Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(8) Borrowed Money
Fair values of Borrowed Money are calculated by discounting the total amount of the principal and interest of such Borrowed Moneyclassified by certain period at the interest rates considered to be applicable to similar loans.
(9) 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 whichhave market prices, and calculated by discounting the total amount of principal and interest by the interest rates considered to be applicableto similar Bonds and Notes for those which do not have market prices.

162

Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-related transactions (futures,
options, swaps and others), bond-related transactions (futures, futures options and others), and are based on the prices on securities
exchanges, discounted value of future cash flows, option pricing models and others.
(Note 2) 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 offinancial instruments.
Millions of yen

Category

Consolidated Balance
Sheet Amount(i) Unlisted Stocks*1(ii) Investments in Partnerships*2(iii) Other¥

519,791
170,883
8,274

Total*3¥

698,949*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 to determine fair values.
*2 Of the Investments in Partnerships, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed extremely difficult to determine fair values as
being subject to disclosure of fair values.
*3 During the fiscal year ended March 31, 2010, we impaired (“devaluated”) unlisted stocks in the amount of ¥49,906 million on a consolidated basis.
Thousands of U.S. dollars

Category

Consolidated Balance
Sheet Amount(i) Unlisted Stocks*1(ii) Investments in Partnerships*2(iii) Other$ 5,586,753
1,836,671
88,930Total*3$ 7,512,354*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 to determine fair values.
*2 Of the Investments in Partnerships, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed extremely difficult to determine fair values as
being subject to disclosure of fair values.
*3 During the fiscal year ended March 31, 2010, we impaired (“devaluated”) unlisted stocks in the amount of $536,393 thousand on a consolidated basis.

163

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities with maturities
Millions of yen

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
Japanese Corporate Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Foreign Bonds
Other
Loans and Bills Discounted*2

4,249,373 ¥
14,495 ¥605,238—
530,777
206,036
17,218,477
10,983,497
1,404
1,518
—
—
1,404
1,518
17,217,072
10,981,978
15,596,785
7,603,343
15,84041,580540,193
1,016,820
1,037,718
2,270,219
26,53450,01425,741,226
13,812,290

Total

1-3 years

3-5 years

5-7 years

7-10 years

Over 10 years

— ¥
— ¥
— ¥
—
—
—
316,593
87,38830,413
5,274,257
906,440
1,776,018
600,455——
600,455—————
4,673,801
906,440
1,776,018
2,572,304
482,211
1,306,848
51,851
15,19031,382
718,058
136,765
146,503
1,288,925
251,902282,369
42,661
20,371
8,915
7,725,164
3,379,471
2,949,468——
869,236
2,407,504———
2,407,504
787,766
998
718,331
896,798
3,609
7,107,020¥ 48,345,093 ¥ 25,016,319 ¥ 13,316,016 ¥ 4,373,300 ¥ 4,755,900 ¥ 10,383,761*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 ¥816,436 million,
and loans with no maturities of ¥633,501 million.
Thousands of U.S. dollars

Types of Financial Instruments

Within 1 year

1-3 years

Due from Banks$ 45,672,548 $
155,799 $Call Loans and Bills Purchased
6,505,146—
Other Debt Purchased
5,704,827
2,214,495
185,065,320 118,051,351
Securities*1
Bonds Held to Maturity
15,09816,323
Japanese Government Bonds——
Japanese Corporate Bonds
15,09816,323
Other Securities with Maturities
185,050,222 118,035,028
Japanese Government Bonds
167,635,270
81,721,230
Japanese Local Government Bonds
170,250446,912
Japanese Corporate Bonds
5,806,036
10,928,857
Foreign Bonds
11,153,469
24,400,468
Other
285,197
537,561
Loans and Bills Discounted*2
276,668,383 148,455,396
Total

3-5 years

5-7 years

7-10 years

Over 10 years

— $
— $
— $
—
—
—
—
—
3,402,771
939,262
326,882
9,342,609
56,688,063
9,742,485
19,088,765
25,876,015
6,453,735———
6,453,735
—
—
—
—
—
—
—
50,234,328
9,742,485
19,088,765
25,876,015
27,647,297
5,182,838
14,046,088
8,466,962
557,308
163,269
337,297
10,735
7,717,742
1,469,962
1,574,626
7,720,671
13,853,453
2,707,465
3,034,929
9,638,851
458,528
218,951
95,82538,796
83,030,577
36,322,777
31,701,082
76,386,720$ 519,616,224 $ 268,877,041 $ 143,121,411 $ 47,004,524 $ 51,116,729 $ 111,605,344*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 $8,775,114 thousand,and loans with no maturities of $6,808,913 thousand.

164

(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money, and other interestbearing liabilities
Millions of yen

Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Over 10 years

Deposits*1
Negotiable Certificates of Deposit
Debentures
Call Money and Bills Sold
Borrowed Money*2
Short-term Bonds
Bonds and Notes*2¥ 72,435,216 ¥
10,283,858
860,824
5,786,370
8,447,960
492,400
186,2213,254,634 ¥
3,950
314,118—
235,680—
1,376,941

538,177 ¥—
342,855—
356,903—
1,391,549

72,675 ¥———249,544—
602,147

39,076 ¥———133,675—
635,178————
87,103—369,231

Total¥ 98,492,851 ¥

5,185,324 ¥

2,629,484 ¥

924,366 ¥

807,930 ¥456,335*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥153,000 million and ¥409,008 million, respectively.
Thousands of U.S. dollars

Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Over 10 years

Deposits*1
Negotiable Certificates of Deposit
Debentures
Call Money and Bills Sold
Borrowed Money*2
Short-term Bonds
Bonds and Notes*2$ 778,538,437 $ 34,981,024 $ 5,784,368 $
781,116 $419,998 $
110,531,588
42,455———9,252,197
3,376,163
3,685,028——
62,192,284————
90,799,228
2,533,107
3,836,018
2,682,120
1,436,756
5,292,347————
2,001,519
14,799,460
14,956,461
6,471,916
6,826,940————
936,193—3,968,528

Total$1,058,607,600 $ 55,732,209 $ 28,261,875 $ 9,935,152 $ 8,683,694 $

4,904,721*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of $1,644,454 thousand and $4,396,054 thousand, respectively.

165

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

42. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Negotiable Certificates of Deposit,
Commercial Paper, certain other items in “Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,”
certain items in “Other Debt Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”
Millions of yen

As of March 31, 2010

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet
Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Corporate Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated Balance
Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds

Consolidated Balance
Sheet Amount

Fair value

Difference¥

603,378¥

607,412

¥

4,033

¥

403,314400,391
2,923¥

407,742404,805
2,937

¥

4,427
4,413
13

¥

200,064
200,064¥

199,670
199,670

¥

(394)
(394)

Thousands of U.S. dollars

As of March 31, 2010

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet
Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Corporate Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated Balance
Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds

166

Consolidated Balance
Sheet Amount

Fair value$ 6,485,156$ 6,528,506$

43,350$ 4,334,855
4,303,433
31,422$ 4,382,440
4,350,870
31,570$47,58547,437148$ 2,150,301
2,150,301$ 2,146,066
2,146,066$(4,235)(4,235)DifferenceMillions of yen

As of March 31, 2010

Consolidated Balance
Sheet Amount

Other Securities*1(Total)
Other Securities Whose Consolidated Balance Sheet Amount Exceeds
Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet Amount Does Not
Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Acquisition
cost

Difference¥ 43,344,318¥ 43,068,723¥

275,594*2¥ 28,422,090
1,994,637
22,590,473
20,494,801
123,410
1,972,260
3,836,979
2,863,385
626,011347,582¥ 27,649,264
1,445,293
22,469,494
20,424,939
121,345
1,923,209
3,734,476
2,813,103
613,748
307,624¥

772,825
549,344
120,978
69,862
2,064
49,051
102,50250,281
12,262
39,958¥ 14,922,228
903,539
9,169,208
7,854,456
33,436
1,281,315
4,849,480
3,187,585
849,091
812,803¥ 15,419,458
1,111,993
9,215,972
7,863,788
33,551
1,318,632
5,091,492
3,266,182
876,840
948,469¥(497,230)(208,453)(46,764)(9,331)(114)(37,317)(242,012)(78,596)(27,749)(135,666)

¥

¥

¥

(6)

1,070

1,077

*1 The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. The fair value of
securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.
*2 Unrealized Gains (Losses) or Difference include ¥7,910 million which were recognized in the statements of income for the fiscal years ended March 31, 2010 respectively, by applying the fair-value
hedge method and others.

167

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

As of March 31, 2010

Consolidated Balance
Sheet Amount

Other Securities*1(Total)
Other Securities Whose Consolidated Balance Sheet Amount Exceeds
Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet Amount Does Not
Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Acquisition
cost

Difference$ 465,867,567$ 462,905,454$

2,962,113*2$ 305,482,483
21,438,499
242,803,881
220,279,468
1,326,424
21,197,989
41,240,103
30,775,851
6,728,408
3,735,844$ 297,176,106
15,534,113
241,503,595
219,528,580
1,304,230
20,670,785
40,138,398
30,235,420
6,596,608
3,306,370$

8,306,377
5,904,386
1,300,286
750,888
22,194527,204
1,101,705
540,431
131,800
429,474$ 160,385,084
9,711,300
98,551,253
84,420,217
359,378
13,771,658
52,122,531
34,260,381
9,126,088
8,736,062$ 165,729,348
11,951,774
99,053,876
84,520,512
360,612
14,172,752
54,723,698
35,105,142
9,424,339
10,194,217$(5,344,264)(2,240,474)(502,623)(100,295)(1,234)(401,094)(2,601,167)(844,761)(298,251)(1,458,155)$$

11,511

11,581$(70)*1 The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. The fair value of
securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.
*2 Unrealized Gains (Losses) or Difference include $85,018 thousand which were recognized in the statements of income for the fiscal years ended March 31, 2010 respectively, by applying the fair-value
hedge method and others.

168

Millions of yen

As of March 31, 2009

Gross unrealized
Gains

Acquisition cost

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*1:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust:
Other Money Held in Trust¥

179,134
50,038
11,189117,905
29,713,766
2,788,982
19,496,081
18,531,864
68,896895,321
7,428,701
4,500,549
1,939,919
988,232

¥

1,571
101
3
1,466
393,202*2
284,982
43,69841,624715
1,358
64,52152,751
2,723
9,047

1,316

¥

—

Losses————902,827*2
468,683
32,17917,622219
14,337
401,964
135,391
28,760237,812Fair value¥

180,705
50,14011,193
119,372
29,204,140
2,605,281
19,507,600
18,555,865
69,392
882,341
7,091,258
4,417,909
1,913,882
759,467

49

1,266*1 The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. The fair value of
securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.
*2 Unrealized Gains (Losses) or Difference include ¥62,770 million which were recognized in the statements of income for the fiscal years ended March 31, 2009 respectively, by applying the fair-value
hedge method and others.

Notes: 1. A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains and losses recognized in
the statements of income are as follows:*
Millions of yen
2010

2009

As of March 31,

Unrealized
gains (losses)

Trading Securities¥

Fair value

Unrealized
gains (losses)(25,813))) ¥7,718,927 ¥ (40,544)
Millions of yen

2010
As of March 31,

Money Held in Trust for Investment¥

Thousands of U.S. dollars
2010
Unrealized
gains (losses)

2009

Fair value

Unrealized
gains (losses)

118,367¥—¥

Fair value

Unrealized
gains (losses)

39,426¥—$(277,445)

Thousands of U.S. dollars
2010
Unrealized
Fair value
gains (losses)$ 1,272,225 $—*Fair value of trading securities as of March 31, 2010 is described in “41. Financial Instruments.”

2. In addition to the balances shown in the above table, Other Securities included securities that do not have readily determinable fair values
such as the following:*
As of March 31, 2009

Non-publicly offered bonds¥1,820,998 million

Unlisted stocks¥ 416,288 million

Unlisted foreign securities¥ 345,015 million

Other¥ 249,358 million*Securities, included in Other Securities, which do not have readily determinable fair values as of March 31, 2010 are described in “41. Financial Instruments .”169

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Projected Redemption Amounts for Bonds Held to Maturity and Other Securities with Maturity*
Millions of yen

As of March 31, 2009

Within 1 year

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

1–5 years

5–10 years

Over 10 years¥

7,849,559
7,444,207
14,827—
390,523
1,424,358¥

9,779,741
8,189,100
33,790—1,556,850
2,499,197¥

2,097,514
1,631,256
31,499—434,758
1,009,276¥

1,663,012
1,341,339
1,053—
320,618
1,903,382¥

9,273,917¥ 12,278,938¥

3,106,791¥

3,566,395*Projected redemption amounts for bonds held to maturity and other securities with maturity as of March 31, 2010 are described in “41. Financial Instruments.”

Other Securities Sold during the Fiscal Year

Proceeds
from sales

For the Fiscal Year ended March 31,

Stocks
Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other
Total

¥

Thousands of U.S. dollars
2010
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

338,104 ¥34,811,529
34,381,459
81,651
348,419
11,687,928

102,164 ¥
51,736
48,105569
3,061
68,561

9,267
30,68830,27780
330
69,260$¥ 46,837,563 ¥

222,463 ¥109,216$503,413,191 $ 2,391,052 $ 1,173,865

Millions of yen
2009
Total amount Total amountof gainsof losses
on saleson salesThousands of U.S. dollars
2009
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson salesProceeds
from sales

For the Fiscal Year ended March 31,

Other Securities

Millions of yen
2010
Total amount Total amountof gainsof losses
on saleson sales¥ 57,319,232 ¥

289,020 ¥3,633,974 $ 1,098,076 $
374,156,598
556,070369,534,169
517,040
877,594
6,124
3,744,835
32,906125,622,619
736,906

99,604
329,841
325,421863
3,557
744,420226,218

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Net Unrealized Gains/Losses on Other Securities
Net Unrealized Gains/Losses on Other Securities as of March 31, 2010 and 2009 are as follows:
As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Other Money Held in Trust

Millions of yen
2010¥ 267,173)
267,179
(6)

¥

2009

Thousands of U.S. dollars
2010(573,437)(573,387)(49)$ 2,871,598)
2,871,668(70)

Deferred Tax Assets
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes—
74,306
192,867

59,225—(514,211)—
798,650
2,072,948

Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains (Losses) on Other Securities
Owned by Affiliated Companies, which is attributable to MHFG

20,4293,493

219,576

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

4,493¥ 176,931¥(1,869)48,297(519,574)$ 1,901,669*1 The difference between acquisition cost and fair value excludes ¥7,910 million ($85,018 thousand) and ¥62,770 million which were recognized in the statements of income for the fiscal years ended
March 31, 2010 and 2009, respectively, by applying the fair-value hedge method and others, and includes translation differences regarding securities which do not have readily determinable fair value.
*2 Other securities includes translation differences regarding securities which do not have readily determinable fair value.

170

43. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as of March 31,
2010 and 2009 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 Tokyo Stock Exchange, the Tokyo International Financial
Futures Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts and inter-company
or internal transactions are based on the discounted value of future cash flows, option pricing models and others.

(1) Derivative Transactions not Qualifying for Hedge Accounting
Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.

(a) Interest Rate-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2010

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
Receive Fixed / Pay Fixed
Options:
Sold
BoughtTotal¥

16,529,530
17,259,295¥

4,639,493
5,246,758

Unrealized
gains (losses)

Fair value¥(154,515)
162,357¥(154,515)
162,357

6,412,561
4,488,587

193,463
148,913(4,688)3,434(1,048)442

22,910,980
23,046,447

2,399,405
2,271,562(8,818)
7,797(8,818)
7,797

344,794,257
343,671,973
37,764,377
525,889

239,538,988
234,307,459
27,764,801
288,847

11,520,892(11,178,088)
7,706
407

11,520,892(11,178,088)
7,706
407

21,742,456
20,125,173

10,924,189
10,013,983(302,522)
311,657(302,522)
311,657

1,583,169
3,615,017
14,800139

939,225
3,536,412
14,800—28,829(72,937)(28)
028,829(72,937)
(28)
0

2,670
—

—
—

(77)
—

(77)
—

/

/

¥

321,407¥322,056

171

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

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
BoughtTotal¥

27,419,515
25,264,693¥

4,717,621
4,922,761

Unrealized
gains (losses)

Fair value¥(476,612)
476,742¥(476,612)
476,742

4,325,673
5,404,347

20,366
20,171(7,338)
8,199(6,003)
6,967

30,640,875
33,128,171

615,992
675,421(39,057)
49,639(39,057)
49,639427,295,005
421,373,263
35,769,404
606,553

275,349,409
274,127,417
25,362,804
354,042

14,535,225(13,964,999)
8,224(1,393)

14,535,225(13,964,999)
8,224(1,393)34,165,529
28,845,065

19,850,369
18,752,146(412,892)
409,882(412,892)
409,882

/

/

/

¥

585,722

Thousands of U.S. dollars

As of March 31, 2010

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
Receive Fixed / Pay Fixed
Options:
Sold
BoughtTotal

172

Contract value
Total
Over one year

Fair value

Unrealized
gains (losses)

49,865,582
56,392,498$ (1,660,737)
1,745,027$ (1,660,737)
1,745,027

68,922,628
48,243,631

2,079,363
1,600,531(50,394)
36,913(11,268)
4,753

246,248,716
247,704,722

25,788,962
24,414,898(94,785)
83,810(94,785)
83,8103,705,871,215
3,693,808,833
405,893,995
5,652,298

2,574,580,701
2,518,351,886
298,417,903
3,104,556

123,827,310(120,142,828)
82,828
4,384

123,827,310(120,142,828)
82,828
4,384

233,689,346
216,306,678

117,413,907
107,630,951(3,251,533)
3,349,715(3,251,533)
3,349,715

17,016,006
38,854,441
159,071
1,500

10,094,857
38,009,590
159,071—

309,863(783,932)(304)
5309,863(783,932)(304)
528,705
—

—
—

(828)
—

(828)
—

/

/

$ 177,660,477
185,504,032$$

3,454,514$

3,461,480

(b) Currency-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2010

Listed:Futures:
Sold
Bought¥Over-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Total

14,584
13,422¥——

Unrealized
gains (losses)

Fair value

¥

(24)
3

¥

(24)
3

22,086,485

15,456,612(144,198)(197,283)

20,638,991
13,469,117

1,562,951
1,261,297(73,677)
150,764(73,677)
150,764

8,678,561
9,527,019

5,789,606
6,581,705(1,029,245)
1,400,679(260,838)
688,725

931,131

817,985//(82,520)¥

221,781(53,480)¥

254,189
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Listed:Futures:
Sold
Bought¥Over-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
Bought
Total

—
—

¥

—
—

Unrealized
gains (losses)

Fair value

¥

—
—

¥

—
—

22,493,472

16,139,275(492,979)(565,049)

21,832,746
13,089,923

1,772,571
920,760(202,466)
158,411(202,466)
158,411

10,977,837
11,901,575

7,143,873
8,151,512(1,282,273)
1,580,207(392,546)
772,307

/

/

/

¥

(229,344)

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2010

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Total

$

156,758
144,261$——

Unrealized
gains (losses)

Fair value

$

(259)
42

$

(259)
42

237,386,988

166,128,679(1,549,855)(2,120,413)

221,829,229
144,766,954

16,798,703
13,556,510(791,893)
1,620,427(791,893)
1,620,427

93,277,747
102,397,030

62,227,068
70,740,600(11,062,393)
15,054,590(2,803,512)
7,402,465

10,007,860

8,791,763(886,939)(574,813)//$

2,383,720$

2,732,044

173

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2010

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
Bought¥Over-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

159,999
121,367¥——

Unrealized
gains (losses)

Fair value¥(4,657)
2,567¥(4,657)
2,567

207,909
172,034

31,87021,592(12,958)
5,031(1,977)(787)

418,597

413,527

34,821

34,821

832,511752,781399,242
322,100(114,918)
73,283(66,796)
42,878—
62,100—60,200

—
381

—
381

/

/

¥

(16,447)¥

6,429
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
Bought
Total

174

¥

127,266
47,275¥——

Unrealized
gains (losses)

Fair value¥(11,799)(671)¥(11,799)(671)

102,775
96,410—9,004(4,717)
4,493

69
(570)

378,840

373,651

71,80771,807

682,542
587,521353,585
265,533(164,415)
97,089(103,305)
57,64850
45,269—34,3290(1,162)0(1,162)

/

/

/

¥

12,017

Thousands of U.S. dollars

As of March 31, 2010

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Total
Over one year

$ 1,719,685
1,304,463$——

Unrealized
gains (losses)

Fair value$(50,057)
27,593$(50,057)
27,593

2,234,625
1,849,038

342,541
232,078(139,275)
54,079(21,256)(8,469)4,499,116

4,444,618

374,265374,265

8,947,892
8,090,943

4,291,082
3,461,953(1,235,148)
787,659(717,937)
460,859—
667,455—
647,034

—
4,103

—
4,103

/

/

$ (176,781)$

69,101175

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions
Millions of yen

2010

2009

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥ 1,193,156
1,465,925

Contract valueOver
one year¥

Fair
Unrealized
value gains (losses)——¥ 2,325(787)

68,410199,968

—
—

(52)
279

19
(186)

660,435
645,516

25,112
17,961(1,102)712//¥ 1,375¥ 2,325 ¥ 1,439,219(787) 1,090,299¥ (9,931)
8,833

39,46282,393

—
—

(31)
224

40
(53)

(336)
58

672,831646,393

39,975
16,721(2,466)287(356)(1,485)¥ 1,092///¥ (2,952)

Contract value

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

176$12,824,129
15,755,868

Over
one year$

Fair
Unrealized
value gains (losses)——$ 24,999(8,465)$ 24,999(8,465)735,279
2,149,270

—
—

(565)
3,007

213
(2,009)7,098,402
6,938,053

269,906
193,056(11,844)7,656(3,617)625//$ 14,788$ 11,746)¥

Fair Unrealized
value gains (losses)¥ (9,931)
8,833

Thousands of U.S. dollars

Total

Over
one year

—
—

2010

As of March 31,

Total

(e) Commodity-Related Transactions
Millions of yen

2010

2009

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥

Contract valueOver
one year

Fair
Unrealized
value gains (losses)

47,367 ¥ 10,116 ¥46,101
9,669

Total

Over
one year(977) ¥
1,593

(977) ¥
1,593

18,924 ¥23,4886,450 ¥
5,747

Fair
Unrealized
value gains (losses)

4,720 ¥ 4,720(6,208)(6,208)

256
235

111
117

(307)
414

440
(502)

—
—

—
—

—
—

—
—

466,243
450,913

316,942
303,337(54,544)
77,967(54,544)
77,967

623,621607,075

483,277
460,691

87,570(59,486)

87,570(59,486)/ ¥ 24,145 ¥ 23,976

/

/

/

¥ 26,596

—
—

—
—

—
—

—
—

/

Thousands of U.S. dollars

2010
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtTotal

Over
one year

Fair
Unrealized
value gains (losses)$ 509,104 $ 108,733 $ (10,507) $ (10,507)
495,501
103,924
17,12817,128
2,755
2,535

1,200
1,265

(3,305)
4,450

4,729
(5,404)Over-the-Counter:
Options:
Sold
Bought5,011,211 3,406,517
4,846,449 3,260,289(586,244)
837,996(586,244)
837,996Total// $ 259,518 $ 257,698

Note: Commodities include oil, copper, aluminum and others.

177

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2010

Over-the-Counter:
Credit Derivatives:
Sold
Bought¥4,824,681
5,375,100

Total

¥

Unrealized
gains (losses)

Fair value

4,034,665
4,447,615¥(55,425)
71,275¥(55,425)
71,275/¥15,850¥15,850/Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Over-the-Counter:
Credit Derivatives:
Sold
Bought

¥7,466,539
8,894,025

Total

¥

Fair value

6,631,448
7,569,719/

Unrealized
gains (losses)¥(475,432)
565,893¥(475,432)
565,893/¥

90,460/Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2010

Over-the-Counter:
Credit Derivatives:
Sold
BoughtUnrealized
gains (losses)

Fair value$ 51,855,989
57,771,936$ 43,364,853
47,803,263$(595,716)
766,077$(595,716)
766,077//$

170,361$

170,361)

Total

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

(g) Weather Derivative Transactions
Millions of yen

2010

2009

Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought

Total

¥

Total

15
—

Contract valueOver
one year¥

Fair
Unrealized
value gains (losses)

—
—

¥

(0)
—

¥

(0)
—

/

¥

(0)

¥

(0)

/

Thousands of U.S. dollars

2010
Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought
Total

Total

$

161
—

Over
one year

$

—
—

$

(4)
—

$

(4)
—

/

$

(4)

$

(4)

/

Note: Transactions are related to temperature, rainfall and others.

178

Fair
Unrealized
value gains (losses)

Total

¥

17
—
/

Over
one year

¥

—
—
/

¥

Fair
value

Unrealized
gains

2
—

¥

2
—

/

¥

2

(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions
Millions of yen

As of March 31, 2010

Primary
hedged items

Primary Method:
Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Options:
BoughtLoans, deposits,
debentures,borrowings and others

Fair Value Hedge Method:
Swaps:
Receive Float / Pay Fixed

Other securities andloans

Exceptional Accrual Method:
Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed

Loans and borrowings

Contract value
Total
Over one year

Fair value¥ 22,311,442
4,413,028
185,797¥ 15,622,827
3,394,816
184,800¥

298,862(78,744)
367

2,670

—

77

77,82065,095(2,793)30,0007,249

30,0005,658//

Note 2.

Total¥

217,769

Thousands of U.S. dollars

As of March 31, 2010

Primary
hedged items

Primary Method:
Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Options:
BoughtLoans, deposits,
debentures,borrowings and others

Fair Value Hedge Method:
Swaps:
Receive Float / Pay Fixed

Other securities andloans

Exceptional Accrual Method:
Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed

Loans and borrowings

Total

Contract value
Total
Over one year

Fair value$ 239,804,846
47,431,519
1,996,966$ 167,915,169
36,487,709
1,986,242$ 3,212,194(846,351)
3,953

28,705—

828

836,421699,653(30,020)

322,442
77,914322,442
60,819//Note 2.

$ 2,340,604

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).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans and borrowings, hedged items,
those fair values are included in fair values of such loans and borrowings in “41. Financial Instruments.”

179

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Currency-Related Transactions
Millions of yen

As of March 31, 2010

Contract value
Total
Over one year

Primary
hedged items

Primary Method:
Swaps
Forwards:
Sold

Loans, deposits,
borrowings and parent
company's interest of
subsidiaries' net assets

Fair Value Hedge Method:
Forwards:
Sold

Other securities

¥

Total

5,789,917¥

998,882

232,165

—

273

—

/

/

Fair value¥

75,820(7,720)(6)¥

68,093Thousands of U.S. dollars

As of March 31, 2010

Contract value
Total
Over one year

Primary
hedged items

Primary Method:
Swaps
Forwards:
Sold

Loans, deposits,
borrowings and parent
company's interest of
subsidiaries' net assets

Fair Value Hedge Method:
Forwards:
Sold

Other securities

Fair value$ 62,230,414$ 10,736,059

2,495,327—(82,978)

2,938

—

(74)

/

/

Total

$

$

814,925

731,873

Note: Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for
Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25).

(c) Stock-Related Transactions
Millions of yen

As of March 31, 2010

Fair Value Hedge Method:
Index Futures:
Sold
BoughtContract value
Total
Over one year

Primary
hedged items

Fair value

Investment trusts
¥

Total

70
224

¥

/

—
—

¥

(7)
16

/

¥

9

Thousands of U.S. dollars

As of March 31, 2010

Fair Value Hedge Method:
Index Futures:
Sold
BoughtTotal

180

Contract value
Total
Over one year

Primary
hedged items

Fair value

Investment trusts
$

758
2,410
/

$

—
—

$

(77)
177

/

$

100

44. Segment Information(1) Segment Information by Type of Business
Segment information by type of business as of or for the fiscal years ended March 31, 2010 and 2009 was as follows:
Millions of yen

2010
Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits

Banking Business ¥ 2,347,271 ¥ 22,421 ¥ 2,369,693 ¥ 2,097,174 ¥ 272,518
Securities Business
361,801
15,862
377,664
319,830
57,834
Other
108,552
179,706
288,258
284,406
3,852
Total
Elimination

2,817,625—

Consolidated
Results¥ 2,817,625 ¥

217,990(217,990)

3,035,616(217,990)

2,701,410(210,912)

334,205(7,078)— ¥ 2,817,625 ¥ 2,490,498 ¥ 327,127Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets¥ 137,607,464 ¥ 124,294 ¥
22,745,875
26,552877,702
5,089
161,231,041(4,977,469)

155,936—¥ 156,253,572 ¥ 155,936 ¥CapitalExpenditure

4,051 ¥ 234,023
668
18,084
22
2,577
4,742
—

254,686—

4,742 ¥ 254,686
Millions of yen

2009Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business ¥ 3,065,295 ¥ 36,760 ¥ 3,102,055 ¥ 3,488,527 ¥ (386,471) ¥ 137,103,996 ¥ 125,863 ¥Securities Business
318,234
56,924375,158
396,578(21,420)
17,536,259
11,641
Other
130,899
151,470
282,370
263,456
18,913881,674
5,171

1,679 ¥ 189,924
9,218
8,638
—
22,491

Total
Elimination

10,898—3,514,428—

Consolidated
Results¥ 3,514,428 ¥

245,155(245,155)

3,759,584(245,155)

4,148,562(239,001)(388,978)(6,153)

155,521,931(2,798,860)

142,676—

221,054—— ¥ 3,514,428 ¥ 3,909,560 ¥ (395,131) ¥ 152,723,070 ¥ 142,676 ¥ 10,898 ¥ 221,054
Thousands of U.S. dollars

2010Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business $25,228,626 $ 240,990 $25,469,616 $22,540,566 $2,929,050
Securities Business 3,888,668
170,495 4,059,163 3,437,557
621,606
Other
1,166,728 1,931,496 3,098,224 3,056,817
41,407$1,479,014,019 $1,335,922 $ 43,548 $2,515,297
244,474,153
285,389
7,188
194,379
9,433,599
54,700241
27,707

Total
Elimination

1,732,921,771 1,676,011(53,498,167)—

30,284,022 2,342,981 32,627,003 29,034,940 3,592,063— (2,342,981) (2,342,981) (2,266,902)(76,079)

Consolidated
Results$30,284,022 $— $30,284,022 $26,768,038 $3,515,984

50,977 2,737,383——$1,679,423,604 $1,676,011 $ 50,977 $2,737,383

Notes: 1. The above table shows Ordinary Income and Ordinary Profits instead of Sales and Operating Profits, respectively, of non-financial
companies.
2. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain special
expenses.
3. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
4. Major components of type of business are as follows: (1) Banking Business: banking and trust banking business (2) Securities Business:securities business (3) Other: investment advisory business and others.
5. MHFG has applied “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, March 10, 2008) and “Guidance on
Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, March 10, 2008) from the end of fiscal 2009. As a result,
Assets and Ordinary Profits for Banking Business increased by ¥23,147 million ($248,794 thousand) and ¥14,745 million ($158,490
thousand), respectively, compared with the corresponding amounts under the previously applied method.

181

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Segment Information by Geographic Area
Segment information by geographic area as of or for the fiscal years ended March 31, 2010 and 2009 was as follows:
Millions of yen

2010
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 2,363,766
149,919
182,744
121,195¥ 108,856
127,680
8,859
4,087

2,817,625—

Total
Elimination
Consolidated Results

Ordinary
Expenses

Ordinary
Profits(Losses)

Total Assets¥ 2,472,622
277,600
191,603125,283¥ 2,168,368 ¥
195,671
213,165
82,194

304,253
81,928(21,561)
43,088¥ 138,396,887
17,170,950
11,799,476
6,371,908

249,484(249,484)

3,067,109(249,484)

2,659,400(168,901)

407,709(80,582)

173,739,223(17,485,651)—¥ 2,817,625¥ 2,490,498 ¥

327,127¥ 156,253,572

Ordinary
Expenses

Ordinary
Profits(Losses)

Total Assets¥ 2,817,625¥

2009
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 2,606,492
378,876
344,862
184,196¥ 100,740
117,395
30,1571,303¥ 2,707,233
496,271375,019
185,500¥ 3,113,927 ¥
398,604
479,813
154,037(406,693)
97,667(104,794)
31,462¥ 134,548,321
19,984,988
11,484,089
6,779,411

3,514,428—

249,596(249,596)

3,764,025(249,596)

4,146,383(236,822)(382,358)(12,773)

172,796,812(20,073,741)—¥ 3,514,428¥ 3,909,560 ¥(395,131)¥ 152,723,070

Ordinary
Expenses

Ordinary
Profits(Losses)Millions of yen

Total
Elimination
Consolidated Results¥ 3,514,428¥

2010
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan$ 25,405,913
1,611,346
1,964,146
1,302,617$ 1,169,993 $ 26,575,906 $ 23,305,769 $ 3,270,137 $1,487,498,788
1,372,321
2,983,667
2,103,093
880,574
184,554,500
95,223
2,059,369
2,291,113(231,744)
126,821,546
43,935
1,346,552
883,432
463,120
68,485,692

Thousands of U.S. dollars

Total
Elimination
Consolidated Results

30,284,022—$ 30,284,022

2,681,472(2,681,472)$

Ordinary
Income32,965,494(2,681,472)

28,583,407(1,815,369)

Total Assets

4,382,087(866,103)

1,867,360,526(187,936,922)— $ 30,284,022 $ 26,768,038 $ 3,515,984$1,679,423,604

Notes: 1. The above table shows Ordinary Income and Ordinary Profits instead of Sales and Operating Profits, respectively, of non-financial
companies.
2. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain special
expenses.
3. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
4. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations.
5. Americas includes the United States of America and Canada. Europe includes the United Kingdom. Asia / Oceania includes Hong Kongand the Republic of Singapore.
6. MHFG has applied “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, March 10, 2008) and “Guidance on Disclosuresabout Fair Value of Financial Instruments” (ASBJ Guidance No.19, March 10, 2008) from the end of fiscal 2009. As a result, Assets increasedin Japan by ¥23,623 million ($253,908 thousand), decreased in Europe by ¥497 million ($5,343 thousand) and increased in Asia / Oceania by¥21 million ($229 thousand) compared with the corresponding amounts under the previously applied method. Ordinary Profits increased inJapan by ¥14,745 million ($158,490 thousand).

182

(3) Ordinary Income from Overseas Entities
Ordinary Income from Overseas Entities for the fiscal years ended March 31, 2010 and 2009 consisted of the following:
Millions of yen
2010

For the Fiscal Years ended March 31,

Ordinary Income of Overseas Entities
Total Ordinary Income
Ordinary Income of Overseas Entities' Ratio¥

453,859
2,817,625
16.1%

¥

2009

907,935
3,514,428

Thousands of U.S. dollars
2010$

4,878,109
30,284,022

25.8%

/

Notes: 1. The above table shows Ordinary Income of Overseas Entities instead of Sales of Overseas Entities of non-financial companies.
2. Ordinary Income of Overseas Entities represents Ordinary Income recorded by overseas branches of MHCB and other overseas subsidiaries
excluding Inter-segment Ordinary Income.
3. Segment information on Ordinary Income from overseas entities is not presented as no such information is compiled.

45. Related Party
For the fiscal years ended March 31, 2010 and 2009;• There are no material additions to the current scope subject to disclosure.
• There are no material transactions with related parties to be reported pursuant to the standard and its guidance.
• There are no applicable information on the parent company and on the selected financial statements of important relatedcompanies.

46. Matters Related to Combination and Others
Mizuho Securities Co., Ltd. (“former MHSC”), MHFG's consolidated subsidiary, and Shinko Securities Co., Ltd. (“Shinko”), an
affiliate under the equity method, signed the merger agreement following the resolutions of respective board meetings on March
4, 2009. Upon the approval of the merger agreement at the respective general shareholders meetings held on April 3, 2009, themerger (“Merger”) took effect on May 7, 2009.
(1) Name of the acquired company, business type, major reasons for the combination, date of the combination, legal form of
the combination, name of the company after the combination, voting rights ratio, and grounds for determination of theacquiring company
a. Name of the acquired company
Shinko Securities Co., Ltd.
b. Business type
Financial Instruments Businessc. Major reasons for the combination
It was determined that it is necessary, as a member of the Mizuho Financial
Group, to leverage Shinko's strength as a securities arm of a banking institution,
to become more competitive in a market where there is now greater uncertainty,
to improve our service providing-capabilities to our clients and furthermore to
reestablish our business to enable us to offer competitive cutting-edge financial
services on a global basis.
d. Date of the combination
May 7, 2009
e. Legal form of the combination
Shinko is the surviving entity, and the former MHSC is the absorbed entity.
f. Name of the company after
Mizuho Securities, Co., Ltd.
the combination
g. Voting rights ratio
Voting rights ratio held before the combination: 27.32%
Voting rights ratio additionally obtained on the combination date: 32.19%
Voting rights ratio after acquisition: 59.51%
h. Grounds for determination of
As Mizuho Corporate Bank, Ltd., a shareholder of the former MHSC which is thethe acquiring company
legal absorbed entity, holds over half of the new company's voting rights as aresult of the Merger, the former MHSC is the acquiring company and Shinko is theacquired company under Accounting Standard for Business Combinations.

183

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Period of the acquired company's results included in the consolidated financial statements
From May 7, 2009 to March 31, 2010
(3) Acquisition cost and its breakdown of the acquired company
Consideration for acquisition:
Common stock of the former MHSC
¥107,864 million ($1,159,339 thousand)Expenses directly necessary for the combination:
Advisory fees and others¥118 million ($1,275 thousand)Acquisition cost:¥107,983 million ($1,160,614 thousand)(4) Merger ratio, calculation method, number of new shares to be issued, and gains and losses on step acquisition
a. Merger ratio:
Company Name
Shinko (surviving entity)
Former MHSC (absorbed entity)
Merger Ratio
1
122
b. Calculation method of merger ratio:
For the sake of fairness in calculating the merger ratio, Shinko and the former MHSC appointed a third-party for valuations respectively. Both companies made the final determination of the validity of the merger ratio based on the careful
exchange of views between the two companies, taking into account the financial and asset situation of the two companies and other factors in a comprehensive manner.
c. Number of new shares to be issued:
Shares of common stock: 815,570,000 sharesd. Gains and losses on step acquisition: ¥(13,670) million ($(146,936) thousand) (included in Other Expenses)(5) Amount, cause, and accounting method of negative goodwill incurreda. Amount of negative goodwill incurred: ¥67,916 million ($729,969 thousand)b. Cause:
Difference between the amount corresponding to MHFG's equity position in the acquired company and the acquisitioncostc. Accounting method:
Recorded as profits for the fiscal year in which the negative goodwill incurred due to early adoption of “AccountingStandard for Business Combinations” (ASBJ Statement No.21, December 26, 2008).
(6) Amount and breakdown of assets received and liabilities undertaken on the combination datea. Assets:
Total assets:¥2,321,155 million ($24,947,932 thousand)Trading assets included in the above:¥1,008,003 million ($10,834,091 thousand)b. Liabilities:
Total liabilities:¥2,020,673 million ($21,718,331 thousand)Trading liabilities included in the above:¥ 671,840 million ($ 7,220,990 thousand)(7) Amount allocated to Intangible Fixed Assets other than goodwill, breakdown by major type, and weighted-average amortization period in total and by major typea. Amount allocated to Intangible Fixed Assets:¥73,949 million ($794,809 thousand)b. Breakdown by major type:
Customer-Related Assets:¥73,949 million ($794,809 thousand)c. Weighted-average amortization period in total and by major type:
Customer-Related Assets:
16 years(8) Gains and losses on the change in equity position due to the merger of the acquiring company:¥(34,408) million ($(369,822) thousand) (included in Other Expenses)

18447. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2010 and 2009 are calculated based on the following
information:
Yen
As of or for the Fiscal Years ended March 31,

Net Assets per Share of Common StockNet Income (Loss) per Share of Common Stock
Diluted Net Income per Share of Common Stock

2010

¥

U.S. dollars
2010

2009

191.53
16.29
15.57

¥

104.38(54.14)
—

$

2.06
0.18
0.17

Notes: 1. Net Assets per Share of Common Stock is based on the following information.
Millions of yen
As of March 31,

Net Assets
Deductions from Net Assets
Paid-in Amount of Preferred Stock
Cash Dividends on Preferred Stock
Stock Acquisition Rights
Minority Interests
Net Assets (year-end) related to Common Stock
Year-end Outstanding Shares of Common Stock,based on which Net Assets per Share ofCommon Stock was calculated

2010

¥

2009

5,837,053
2,871,059
535,971
11,0862,301
2,321,700
2,965,993¥

15,485,000 Thousand shares

Thousands of U.S. dollars
2010

4,186,606
3,020,835
948,641
19,3391,187
2,051,667
1,165,770$

62,737,028
30,858,335
5,760,651
119,157
24,73924,953,788
31,878,693

11,167,604 Thousand shares/

2. Net Income (Loss) per Share of Common Stock is based on the following information.
Millions of yen
For the Fiscal Years ended March 31,

Net Income (Loss)
Amount not attributable to Common Stock
Cash Dividends on Preferred StockNet Income (Loss) related to Common Stock
Average Outstanding Shares of Common Stock(during the period)

2010

¥

2009

239,404
11,086
11,086228,317¥

14,013,057 Thousand shares

Thousands of U.S. dollars
2010(588,814)
19,33919,339(608,153)$

2,573,132
119,156
119,156
2,453,976

11,231,269 Thousand shares/

3. Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
For the Fiscal Years ended March 31,

Adjustments to Net Income
Cash Dividends on Preferred Stock
Adjustments made to reflect Stock Acquisition
Rights of subsidiaries
Increased Number of Shares of Common Stock
Preferred Stock
Stock Acquisition Rights
Description of Dilutive Securities which were
not included in the Calculation of Diluted Net
Income per Share of Common Stock as they
have no dilutive effects

2010

¥

9,975
9,985
(9)
1,291,167 Thousand shares
1,284,504 Thousand shares
6,663 Thousand shares
—

2009

¥

—
—
—

Thousands of U.S. dollars
2010$

107,222
107,326
(104)

—
—
—
Eleventh Series Class XI Preferred StockFirst Series of Stock Acquisition Rights*1
First Series of Stock Acquisition Rights
of MHTB*1,2

/
/
/
/

*1 The overview of the stock acquisition rights is described in “ 31. Stock Options.”*2 The number of stock acquisition rights is 1,695.

185

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

48. Subsequent Events(i) The Board of Directors of MHFG resolved on May 14, 2010 to issue new shares and MHFG filed a shelf registration statementwith the Kanto Local Finance Bureau for the issuance of new shares as set forth below:(1) Type of Securities to be Offered: Common stock of MHFG
(2) Planned Issuance Period:
Within one year commencing from the effective date of the shelf registration statement(From May 22, 2010 until May 21, 2011)(3) Offering Method: Public offering in Japan(4) Planned Amount of Issuance: Up to ¥800 billion(5) Use of Proceeds: To be invested in consolidated subsidiaries of MHFG
(6) Planned Principal Underwriters:
Mizuho Securities Co., Ltd. (5-1 Otemachi 1-chome, Chiyoda-ku, Tokyo)
Nomura Securities Co., Ltd. (9-1 Nihonbashi 1-chome, Chuo-ku, Tokyo)
JPMorgan Securities Japan Co., Ltd. (7-3 Marunouchi 2-chome, Chiyoda-ku, Tokyo)
Merrill Lynch Japan Securities Co., Ltd. (4-1 Nihonbashi 1-chome, Chuo-ku, Tokyo)(ii) The Board of Directors of MHFG resolved on May 14, 2010 to convert the applicable preferred shares of Orient Corporation(“Orico”) owned by MHBK and MHCB into the common shares of Orico and make Orico an equity method affiliate of MHFG
in around the first six months of fiscal year 2010. Following the conversion, it is expected that the voting rights ratio in Orico of
MHFG will be 27.2%.

186

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

188

Non-Consolidated Statements of Income

189

Mizuho Corporate Bank, Ltd.
Non-Consolidated Balance Sheets

190

Non-Consolidated Statements of Income

192

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheets

193

Non-Consolidated Statements of Income

195

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheets

196

Non-Consolidated Statements of Income

198

Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets

199

Non-Consolidated Statements of Income

202

187

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheets
Millions of yen
2010

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized (Losses) on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets¥

20,727
15,1335,594
5,205,243
1,205
3,679
5,187,202
13,155

2009

108,064
16,05692,007
4,444,677
1,327
4,123
4,431,880
7,345$

222,786
162,659
60,12755,946,293
12,961
39,54955,752,390
141,393¥ 5,225,971¥ 4,552,741$ 56,169,079¥¥

939,978700,000
160,000
79,9784,151$ 10,388,676
7,523,646
2,794,497
70,533
2,668,342

1,214,824

944,130

13,057,018

4,009,546
1,805,565
649,841
649,841
1,559,324
4,350
1,554,974
1,554,974(5,184)
(44)
(44)
1,643

3,607,610
1,540,965
385,241
385,241
1,687,622
4,350
1,683,272
1,683,272(6,218)
(32)
(32)
1,032

43,094,873
19,406,331
6,984,539
6,984,539
16,759,722
46,754
16,712,968
16,712,968(55,719)
(481)
(481)
17,669966,562700,000
260,000
6,562
248,262

4,011,146

3,608,611

43,112,061¥ 5,225,971¥ 4,552,741$ 56,169,079

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

188¥

Thousands of
U.S. dollars
2010Non-Consolidated Statements of Income
Millions of yen
2010

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries and Affiliates¥

33,792
3,847
29,945¥

Thousands of
U.S. dollars
2010

2009

442,701
410,517
32,183$363,200
41,349321,851

Operating Expenses
General and Administrative Expenses

19,807
19,807

19,96819,968212,897
212,897

Operating Profits
Non-Operating Income
Non-Operating Expenses

13,984
7,980
18,668422,733
46,31590,353

150,30385,780200,652

Income before Income Taxes
Income Taxes:
Current
Deferred

3,296

378,695

35,431

4
(88)

6
(126)

51
(948)

Net Income

¥

3,379

¥

378,815$

36,328Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

189

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Balance Sheets
As of March 31,

AssetsCash and Due from Banks
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

190

2009

Thousands of
U.S. dollars
2010¥ 3,384,257
165,356
1,122,332
1,330,552
124,986
4,678,323
2,024
22,362,394
26,355,649
486,366
10,109,880
98,97624,01845,217322
1,271
28,146
83,60874,49843
9,066
183,238
3,427,807(311,750)(5,276)¥ 3,930,221
162,041
583,9172,724,465
138,491
5,301,421
2,026
15,406,851
29,911,387
796,974
11,411,405
117,585
26,09651,758252
1,215
38,26190,03079,88892
10,049312,980
3,871,723(330,952)(5,590)$ 36,374,217
1,777,260
12,062,899
14,300,867
1,343,364
50,282,928
21,763
240,352,478
283,272,248
5,227,494
108,661,661
1,063,806
258,157
486,000
3,464
13,661
302,524
898,634
800,711472
97,451
1,969,456
36,842,304(3,350,712)(56,709)¥ 73,598,729¥ 74,424,982$ 791,043,958

Millions of yen
2010Non-Consolidated Balance Sheets—(Continued)
2009

Thousands of
U.S. dollars
2010¥ 26,559,575
695,930
11,830,952
4,270,983
2,523,792
3,805,392
6,033,926
201,637
144,700
2,688,063
8,562,955
8,474
15,258
1,688
21,502
3,427,807¥ 26,847,874
1,423,750
12,314,696
2,663,993
1,884,378
3,909,429
6,849,307
609,399
154,400
2,064,368
10,298,182
10,93928,711
7,845
26,884
3,871,723$ 285,464,054
7,479,901
127,159,848
45,904,814
27,125,887
40,900,607
64,853,038
2,167,217
1,555,245
28,891,479
92,035,203
91,083164,001
18,144
231,11236,842,304

70,792,641

72,965,883

760,883,937

2,522,469
1,404,065
663,434
578,540
84,893454,970—
454,970
454,970
283,618
137,595
116,523
29,498

1,648,063
1,070,965
330,334
330,334—
246,763
110,701
136,062
136,062(188,964)(331,657)
105,320
37,372

27,111,668
15,090,982
7,130,635
6,218,194
912,441
4,890,051—
4,890,051
4,890,051
3,048,353
1,478,891
1,252,407
317,055

Millions of yen
2010

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
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 (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains, net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2,806,088

1,459,098

30,160,021¥ 73,598,729¥ 74,424,982$ 791,043,958

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

191

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Statements of Income
Millions of yen
2010

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¥ 1,073,677
622,878
333,815
149,905
153,323
171,210
164,453

1,160,220

1,712,570

12,470,124

329,594
90,092
8,589
24,98369,996
273,446
253,234

757,176
290,606
14,48432,961
229,827
260,405
652,501

3,542,504
968,317
92,319268,522752,332
2,939,020
2,721,779

951,255

1,932,872

10,224,157

208,964(220,302)

2,245,967

439
8,185
200,339

20,767
14,459(255,529)

4,725
87,977
2,153,265)

Total Expenses¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

192

2009

774,416
413,646
270,627
138,458
89,25064,744
93,349

Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)

Thousands of
U.S. dollars
2010

¥

$

$

8,323,484
4,445,894
2,908,725
1,488,164
959,272
695,878
1,003,326

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets
As of March 31,

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debts 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
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

2009

Thousands of
U.S. dollars
2010¥ 2,638,336
9,040,000
262,417
1,259,295
1,463,369
1,070
19,671,063
32,467,647
130,572
2,889,486
727,740
250,170
388,266
6,733
19,97162,599178,964
95,107
1,722
82,134
250,847
997,665(440,887)(26)¥ 2,738,999
8,740,000
120,451
1,719,219
1,555,582
1,266
13,376,053
37,126,612
124,652
2,781,170
654,363
229,256
340,547
5,548
18,55960,452
142,192
94,508554
47,130280,656
1,120,746(464,301)—$ 28,357,017
97,162,511
2,820,478
13,534,991
15,728,395
11,511
211,425,880
348,964,393
1,403,398
31,056,385
7,821,806
2,688,844
4,173,109
72,370214,657
672,826
1,923,527
1,022,227
18,514
882,786
2,696,122
10,722,979(4,738,686)(282)¥ 71,537,565¥ 70,017,665$ 768,890,425

Millions of yen
2010

193

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets—(Continued)
2009

Thousands of
U.S. dollars
2010¥ 57,788,883
821,867
1,627,500
635,326
1,452,372
247,136
3,019,909
10,040—849,500
2,380,144
8,647—
13,548
10,824
77,372997,665¥ 57,135,748
882,949
1,666,100
588,323806,730
255,403
2,043,626
10,71320,000761,200
3,405,053
9,030
11,277
12,6508,973
77,471
1,120,746$ 621,118,701
8,833,487
17,492,476
6,828,532
15,610,192
2,656,245
32,458,188
107,916—
9,130,482
25,581,946
92,943—
145,621116,347
831,608
10,722,979

69,940,741

68,815,998

751,727,663

1,477,580
700,000
681,432
490,707
190,725
96,147
96,147
96,147
119,242(7,084)
17,395
108,931

1,281,432
650,000
762,345762,345—(130,913)(130,913)(130,913)(79,765)(190,725)
1,884
109,075

15,881,134
7,523,646
7,324,084
5,274,155
2,049,929
1,033,404
1,033,404
1,033,404
1,281,628(76,145)
186,972
1,170,801

Millions of yen
2010

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Frequent Users Service
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
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
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains, net of Taxes
Revaluation Reserves for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

1,596,823

1,201,667

17,162,762¥ 71,537,565¥ 70,017,665$ 768,890,425

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

194

Non-Consolidated Statements of Income
Millions of yen
2010

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

765,263
526,434
139,345
201,229
43,17569,731
76,741

858,419616,565
115,060
208,277
38,39777,601
148,473$

8,225,100
5,658,150
1,497,690
2,162,829
464,054749,481824,818

1,331,170

12,426,282

152,337
91,493
3,385
52,861
55,364
633,240
152,446

254,765
160,042
3,175
51,601
48,603
614,744567,718

1,637,332
983,381
36,385568,160
595,061
6,806,111
1,638,509

1,046,250

1,537,432

11,245,173

109,890(206,262)

1,181,109

498
13,387519
86,8195,358
143,894

96,004¥ (293,601)

Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)

2009

1,156,141

Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses¥

Thousands of
U.S. dollars
2010

¥

$

1,031,857

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

195

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheets
Millions of yen
2010

As of March 31,

AssetsCash and Due from Banks
Gurantee Deposits Paid under Securities Borrowing Transactions
Other Debts Purchased
Trading Assets
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

196¥

315,410—200,059
57,626
1,542,759
3,457,921
2,095
170,649
29,558
12,577
14,295
69
2,616
20,102
19,78324
294
27,61841,013(22,891)—¥ 5,841,921¥

Thousands of
U.S. dollars
2010

2009

223,555
40,249288,052
51,955
1,945,977
3,439,591
3,166
184,479
31,34013,612
14,416167
3,144
19,92019,57748
294
50,11534,394(24,338)(1)¥ 6,288,459$

3,390,053—
2,150,249
619,376
16,581,678
37,165,963
22,517
1,834,147
317,698
135,181
153,645748
28,124
216,063
212,632
261
3,170
296,847
440,811(246,044)—$ 62,789,358

Non-Consolidated Balance Sheets—(Continued)
2009

Thousands of
U.S. dollars
2010¥ 3,325,876
521,427
239,315
63,028301,9003
126,700
862,362
31,541
1,972—
13,121
1,200
41,013¥ 3,556,182
658,80974,85959,323
617,452
5
143,900
827,71337,474
2,063
11,526
12,710955
34,394$ 35,746,733
5,604,338
2,572,183
677,4313,244,841
42
1,361,780
9,268,729
339,015
21,195—141,029
12,900440,811

5,529,462

6,037,369

59,431,027

286,730
247,260
15,395
15,39524,211
8,061
16,15016,150(137)
25,43731,225(5,787)
290

269,891
247,231
15,367
15,367
7,426
8,061
(634)
(634)
(134)
(18,956)(14,373)(4,583)155

3,081,799
2,657,571
165,475
165,475
260,228
86,643
173,585
173,585(1,475)
273,408
335,614(62,206)
3,124

Millions of yen
2010

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Employee Retirement Benefit
Reserve for Contingencies
Reserve for Reimbursement of Deposits
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
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge (Losses), net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

312,459

251,089

3,358,331¥ 5,841,921¥ 6,288,459$ 62,789,358

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

197

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Statements of Income
Millions of yen
2010

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income¥

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

198

48,51473,36454,217
15,225
41,7784,192
9,152
12,577¥

2009

54,50988,101
61,575
19,60940,585
1,176
8,242
7,419

Thousands of
U.S. dollars
2010$

521,434
788,526
582,732
163,643
449,041
45,06598,371
135,187

189,580

200,034

2,037,624

28,472
14,074
14,5701,932
100,204
20,27339,461
21,60914,992
8,068
98,24950,191

306,026
151,275
156,606
20,7701,077,002
217,903

165,453

210,963

1,778,307

24,126(10,929)

259,317

4
7,336

13
16,89845
78,858

16,785¥(27,842)$

180,414)Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheets
As of March 31,

AssetsCurrent Assets
Cash on Hand and Bank Deposits
Cash Segregated as Deposits Related to Securities Transactions
Trading Assets
Trading Securities and Others
Operating Loan Assets
Derivatives
Operating Investment Securities
Margin Transaction Assets
Customers' Loans Receivable under Margin Transactions
Collateral for Borrowed Securities under Margin Transaction
Loans Receivable Secured by Securities
Collateral for Borrowed Securities
Loans Receivable in Gensaki Transaction
Advances
Short-term Loans Deposits
Accounts for Non-delivered Securities and Others
Short-term Loans Receivable
Prepayment
Prepayment Expenses
Receivables
Accounts Receivables
Deferred Tax Assets
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Fixed Assets
Tangible Fixed Assets
Buildings
Equipments
Land
Lease Assets
Intangible Fixed Assets
SoftwareTenancy Rights
Telephone Leased Rights
Investments and Other Assets
Investment Securities
Affiliate Companies
Long-term Deposits
Long-term Prepayment Expenses
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Total Fixed Assets
Total Assets

Thousands of
U.S. dollars
2010

Millions of yen
2010¥

88,48894,6696,447,833
5,747,883
26,448673,50228,722
52,86425,31727,547
3,983,524
3,962,121
21,402
54
101,173
538
62,917
230
2,119
1,218
21,244
16,589424(62)$951,075
1,017,513
69,301,737
61,778,622
284,270
7,238,845
308,707568,190
272,109
296,081
42,815,178
42,585,142
230,036588
1,087,422
5,787
676,2472,473
22,78313,097228,336
178,310
4,565
(677)

10,902,551

117,181,331

17,047
6,960
8,040
1,209
835
32,77332,41981273
301,556
32,358
221,707
13,7802,170
22,707
12,389(3,557)183,227
74,81786,42413,004
8,982
352,254
348,446873
2,935
3,241,150
347,792
2,382,930
148,119
23,326
244,057
133,162(38,236)

351,377

3,776,631¥ 11,253,928$ 120,957,962

199

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheets—(Continued)
As of March 31,

Millions of yen
2010

Thousands of
U.S. dollars
2010

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payable-unsettled Trades
Payables Related to Margin Transactions
Customers' Loans Payable under Margin Transactions
Collateral for Loaned Securities under Margin Transactions
Collateralized Short-term Financing Agreements
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Received Margins
Short-term Borrowings
Commercial Paper
Short-term Bonds and Notes
Lease Obligation
Advance Receivable
PayablesPayable Expenses
Income Taxes Payable
Accrued Employee's Bonuses
Allowance for Bonus Points Redemption
Reserve for Loss on Liquidation of Affiliated Companies
Other Current Liabilities¥ 3,248,184
2,654,010
594,174
466,478
19,933
11,2898,643
2,626,986
2,022,938
604,048251,726
84,0992,655,549
331,700
62,532887
311
941
19,181
933
7,577
376
2
1,770

$ 34,911,702
28,525,479
6,386,223
5,013,745
214,246
121,345
92,901
28,235,024
21,742,676
6,492,348
2,705,572
903,903
28,542,022
3,565,133
672,101
9,537
3,349
10,115
206,165
10,03781,4444,050
30
19,034

9,779,174

105,107,209

320,485
292,886
260,800
1,156
12,295
1,844

3,444,600
3,147,959
2,803,095
12,431132,149
19,828889,468

9,560,062

1,860

19,999Total Current Liabilities
Fixed Liablities
Corporate Bonds
Long-term Borrowings
Long-term Borrowings from Affiliates
Lease Obligation
Reserve for Retirement Benefits
Other Fixed Liabilities
Total Fixed Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities
Statutory Reserves
Total Liabilities

200

1,860

19,999¥ 10,670,503$ 114,687,270

Non-Consolidated Balance Sheets—(Continued)
As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surplus
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Treasury Stocks
Total Shareholder's Equity
Valuation and Translation Adjustments
Valuation and Translation Adjustments of Other Securities
Net Deferred Hedge (Loss), net of Taxes
Total Valuation and Translation Adjustments
Stock Subscription Rights
Total Net Assets
Total Net Assets and Liabilities

Thousands of
U.S. dollars
2010

Millions of yen
2010¥

125,167$

1,345,306

380,194
31,117411,3124,086,359
334,458
4,420,817

49,12349,123(7,449)527,980
527,980(80,065)

578,1546,214,038

5,439
(535)

58,469(5,761)

4,903

52,708367

3,946

583,425

6,270,692¥ 11,253,928$ 120,957,962

Notes: 1. On May 7, 2009, Shinko Securities Co., Ltd. and Mizuho Securities Co., Ltd. consummated a merger.
2. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
3. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

201

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Statements of Income
For the Fiscal Year ended March 31,

Operating Revenues
Commissions and Fees
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from Solicitation to Qualifying Investors
Offering, Selling, and Other Fees and Commissions, and Commissions from Solicitation
to Qualifying Investors
Other Commissions and Fees
Gain on Trading, net
Loss on Sales of Operating Investment Securities
Interest and Dividend Income¥

Total Operating Revenues

119,872
23,73432,889$1,288,397
255,100
353,496

23,52039,72862,394(2,838)37,551

252,798
427,003
670,617(30,503)
403,602

216,979

2,332,113

Financial Expenses

26,321

282,906

Net Operating Revenues

190,658

2,049,207

Selling, General and Administrative Expenses
Transaction Expenses
Personnel Expenses
Real Estate Expenses
Offie Expenses
Depreciation and Amortization
Taxes and Dues
Other

169,690
28,071
67,24325,00424,073
19,1592,247
3,891

1,823,842
301,710
722,740
268,745
258,741
205,925
24,156
41,825

Operating Income

20,967225,365

Non-operating Revenues
Non-operating Expenses

2,355
325

25,321
3,496

Ordinary Income

22,998247,190Extraordinary Gain
Gain on Sale of Investment Securities, net
Reversal of Allowance for Doubtful Accounts
Extraordinary Loss
Loss on Disposal of Fixed Assets
Loss on Sale of Investment Securities, net
Loss on Sale of Fixed Assets
Loss on Valuation of Golf Club Membership
Expenses Related to Merger Impairment Loss
Extraordinary Depreciation Expenses
Prior Year Adjustment-depreciation
Provision for Reserve for Financial Instruments Transaction Liabilities

254
183
70
9,808
1,585
14
483
35
5,587
420
1,634
46

2,738
1,976
762
105,418
17,045
152
5,199
378
60,054
4,519
17,569495

Income before Income Taxes

13,445

144,510

Total Income Taxes
Adjustment Amount for Income Taxes
Income Taxes

137(4,887)(4,749)1,475(52,527)(51,052)

Net Income
Notes: 1. On May 7, 2009, Shinko Securities Co., Ltd. and Mizuho Securities Co., Ltd. consummated a merger.
2. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
3. The rate of ¥93.04=US$1.00, the foreign exchange rate on March 31, 2010, has been used for translation.

202

Thousands of
U.S. dollars
2010

Millions of yen
2010¥

18,195$

195,562

Status of Capital Adequacy
Capital Adequacy Ratio Highlights

204

Status of Consolidated Capital Adequacyof Mizuho Financial Group, Inc.

206

Scope of Consolidation

206

Consolidated Capital Adequacy Ratio

208

Risk-Based Capital

210

Credit Risk

221

Methods for Credit Risk Mitigation

236

Counterparty Risk in Derivatives Transactionsand Long-Settlement Transactions

238

Securitization Exposure

240

Market Risk

249

Operational Risk

249

Equity Exposure in Banking Book

249

203

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel II 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 toensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters Separately Prescribed by theCommissioner 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)”(FSA Notice No.15 of 2007). As a method to calculate the amount equivalent to the operational risk, we have adopted theadvanced measurement approach since September 30, 2009 in place of the gross profit allocation approach (the standardized
approach). The figures disclosed herein are therefore based on the gross profit allocation approach for the fiscal year ended
March 31, 2009 and the advanced measurement approach for the fiscal year ended March 31, 2010.

Capital Adequacy Ratio Highlights
Mizuho Financial Group (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

2010

2009

13.46%
9.09%

10.53%
6.37%

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

5,173.4
2,725.4240.8

5.¥3,765.0
2,793.1
334.5

Total Risk-based Capital¥

7,658.0¥

6,223.6

Risk-weighted Assets¥ 56,863.2¥ 59,056.2(Reference)
Mizuho Corporate Bank (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

2010

2009

16.00%
12.57%

11.89%
8.48%

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

3,914.2
1,239.3
170.3¥

2,697.8
1,345.3
261.3

Total Risk-based Capital¥

4,983.2¥

3,781.8

Risk-weighted Assets¥ 31,128.7¥ 31,790.8

Mizuho Corporate Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

204

2010

2009

17.68%
11.99%

11.75%
6.05%

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

3,329.6
1,644.9
66.1¥

1,862.6
1,862.6
111.9

Total Risk-based Capital¥

4,908.4¥

3,613.3

Risk-weighted Assets¥ 27,762.5¥ 30,742.3

Mizuho Bank (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio

2010

2009

12.88%
7.74%

11.77%
6.65%

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

1,866.2
1,306.5
68.2¥

1,696.5
1,382.6
77.3

Total Risk-based Capital¥

3,104.6¥

3,001.8

Risk-weighted Assets¥ 24,099.2(Reference) Consolidated Capital Adequacy Ratio (BIS Standard)

11.87¥ 25,497.9

12.83%

10.56%

Mizuho Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio

2010

2009

12.97%
7.83%

11.76%
6.63%

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

1,824.9
1,305.6
109.1¥

1,644.9
1,368.3
98.1

Total Risk-based Capital¥

3,021.4¥

2,915.2

Risk-weighted Assets¥ 23,280.9(Reference) Non-consolidated Capital Adequacy Ratio (BIS Standard)

12.88%¥ 24,776.0
10.45%

205

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Scope of Consolidation
1. Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements
None as of March 31, 2010 and 2009.
(b) Number of Consolidated Subsidiaries
As of March 31,

2010

2009

Consolidated Subsidiaries

162

145

Our major consolidated subsidiaries are Mizuho Corporate Bank, Ltd., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. andMizuho Securities Co., Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2010:
Proportion of
Ownership
Interest (%)

Proportion of
VotingInterest (%)

Name

Country ofOrganization

Main Business

Domestic
Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.
Mizuho Investors Securities Co., Ltd.
Trust & Custody Services Bank, Ltd.
Mizuho Asset Management Co., Ltd.
Mizuho Research Institute Ltd.
Mizuho Information & Research Institute Inc.
Mizuho Financial Strategy Co., Ltd.
Mizuho Private Wealth Management Co., Ltd.
Mizuho Factors, Limited
Mizuho Credit Guarantee Co., Ltd.
Mizuho Capital Co., Ltd.
Defined Contribution Plan Services Co., Ltd.

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

Banking
Banking
Trust and banking
Securities
Securities
Trust and banking
Investment management
Research and consulting
Information technology
Consulting
Consulting
Factoring
Credit guarantee
Venture capital
Pension plan-related business100.0%
100.0
74.8
57.9
66.5
54.0
98.7
98.4
91.5
100.0
100.0
100.0
100.0
50.0
60.0

100.0%
100.0
74.8
59.5
66.8
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
50.0
60.0

Overseas
Mizuho Bank (Switzerland) Ltd.
Mizuho Capital Markets Corporation
Mizuho Corporate Bank (China), Ltd.
Mizuho Corporate Bank (USA)Mizuho Corporate Bank Nederland N.V.
Mizuho International plc
Mizuho Securities USA Inc.
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Trust & Banking Co. (USA)PT. Bank Mizuho Indonesia

Switzerland
U.S.A.
China
U.S.A.
Netherlands
U.K.
U.S.A.
Luxembourg
U.S.A.
Indonesia

Trust and banking
Derivatives
Banking
Banking
Banking and securities
Securities and banking
Securities
Trust and banking
Trust and banking
Banking100.0%
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
99.0

Note: Mizuho Trust & Banking Co., Ltd, Mizuho Securities Co., Ltd and Mizuho Investors Securities Co., Ltd are listed on the Tokyo Stock
Exchange.

206

(c) Corporations Providing Financial Services for which Article 9 of the Consolidated Capital Adequacy Ratio
Notice is Applicable
None as of March 31, 2010 and 2009.
(d) Related Companies for which Deductions Set Forth in Article 8, Paragraph 1, Item 2, Subsections 1 to 3 of theConsolidated Capital Adequacy Ratio Notice are Applicable
None as of March 31, 2010 and 2009.
(e) Companies Described in Article 52-23, Paragraph 1, Item 10 of the Banking Law that are Mainly Engaged in
Businesses as Described in Subsection 1 of Such Item or Companies Set Forth in Item 11 of Such Paragraph,
but that are not in the Holding Company's Corporate Group
None as of March 31, 2010 and 2009.
(f) Restrictions on Transfer of Funds or Capital within the Holding Company's Corporate Group
None as of March 31, 2010 and 2009.

207

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Consolidated Capital Adequacy Ratio
2. Summary Table of Consolidated Capital Adequacy Ratio (BIS Standard)%, Billions of yen

As of March 31,

2010

Tier 1 Capital
Common Stock and Preferred Stock
Non-cumulative Perpetual Preferred Stock
Advance Payment for New Shares
Capital Surplus
Retained Earnings
Less: Treasury Stock
Advance Payment for Treasury Stock
Less: Dividends (Estimate), etc
Less: Unrealized Losses on Other Securities
Foreign Currency Translation Adjustments
Stock Acquisition Rights
Minority Interest in Consolidated Subsidiaries
Preferred Securities Issued by Overseas SPCs
Less: Goodwill Equivalent
Less: Intangible Fixed Assets Recognized as a Result of a Merger
Less: Capital Increase due to Securitization Transactions
Less: 50% of Excess of Expected Losses relative to Eligible Reserves
by Banks Adopting Internal Ratings-based Approach
Total of Tier 1 Capital before Deduction of Deferred Tax Assets (Total of the Above Items)
Deduction for Deferred Tax Assets¥¥

1,540.9
—
—
411.3
607.9
6.2
—
131.0
516.0
(114.7)1.1
2,036.8
1,886.8
—
—
9.1

48.9
5,173.4—

55.9
3,765.0—

5,173.4
524.0
10.12%

3,765.0
524.0
13.91%

122.6
106.7
5.4
—
2,490.5
586.3
1,904.2

—
112.8
7.9
—
2,759.0
789.8
1,969.2(C)2,725.4
2,725.4

2,879.9
2,793.1

Tier 3 Capital
Short-term Subordinated Debt
Tier 3 Capital Included as Qualifying Capital

(D)

—
—

—
—

Deductions for Total Risk-based Capital(E)

Total Risk-based Capital

(F)

Total
Preferred Securities with a Step-up Interest Rate Provision
Ratio to Tier 1 = (B) / (A) X 100

(A)
(B)

Tier 2 Capital
45% of Unrealized Gains on Other Securities
45% of Revaluation Reserve for Land
General Reserve for Possible Losses on Loans
Excess of Eligible Reserves relative to Expected Losses by Banks Adopting Internal Ratings-based Approach
Debt Capital, etc.
Perpetual Subordinated Debt and Other Debt Capital
Dated Subordinated Debt and Redeemable Preferred Stock
Total
Tier 2 Capital Included as Qualifying Capital(A) + (C) + (D) - (E)Risk-weighted Assets
Credit Risk-weighted Assets
On-balance-sheet Items
Off-balance-sheet Items
Market Risk Equivalent Assets [(I) / 8%](Reference) Market Risk Equivalent
Operational Risk Equivalent Assets [(K) / 8%](Reference) Operational Risk Equivalent
Adjusted Floor Amount
Adjusted Amount for Credit Risk-weighted Assets
Adjusted Amount for Operational Risk Equivalent
Total

208

1,805.5
—
—
552.1
854.6
5.1
—
134.9
—
(92.6)
2.3
2,289.0
1,937.8
—
41.9
6.5

2009

(G) + (H) + (J) + (L) + (M) + (N)

(G)

240.8
¥

7,658.0

334.5¥

6,223.6

(H)
(I)
(J)
(K)
(L)
(M)
(N)

51,908.7
42,796.2
9,112.4
1,297.9103.8
3,656.5
292.5
/
—
—

54,231.6
43,629.3
10,602.3
1,342.1
107.3
3,482.3
278.5
—
/
/

(O)

¥ 56,863.2¥ 59,056.2

Consolidated Capital Adequacy Ratio (BIS Standard) = (F) / (O) X 100

13.46%

10.53%

Tier 1 Capital Ratio = (A) / (O) X 100

9.09%

6.37%

Notes: 1. The above figures are calculated based on the BIS standard applied on a consolidated basis under the “Standards for Determining the
Status of Capital Adequacy in consideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking
Law Article 52-25” (FSA Notice No.20 of 2006 (the “Notice”)). For the figures as of March 31, 2010 and 2009, we did not apply the
exception to the Notice (FSA Notice No.79 of 2008).
2. As it is not possible to break down Mizuho Financial Group's common stock and preferred stock according to classes of stock, no value
for non-cumulative perpetual preferred stock is stated separately from capital.
3. 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 Report No.30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of theaccounting audit performed on our consolidated financial statements. 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 the capital
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.
4. The amounts of net deferred tax assets as of March 31, 2010 and 2009 were ¥520.8 billion and ¥714.6 billion, respectively, and the
maximum amounts of deferred tax assets that can be recorded without diminishing the amount of Tier 1 capital for the purpose of
calculating capital adequacy ratio as of March 31, 2010 and 2009 were ¥1,034.6 billion and ¥753.0 billion, respectively.
5. The “adjusted floor amount” is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under thefoundation internal rating-based approach multiplied by the rate prescribed in the Notice over the required capital under the advanced
internal ratings-based approach. The “adjusted amount for credit risk-weighted assets” is the amount obtained by multiplying (i) 12.5 by(ii) the excess, if any, of the required capital under the foundation internal ratings-based approach multiplied by the rate prescribed in the
Notice over the required capital under the advanced internal ratings-based approach; and the “adjusted amount for operational risk
equivalent” is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under the basic indicator
approach multiplied by the rate prescribed in the Notice over the required capital under the advanced measurement approach.

209

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Risk-Based Capital
3. Summary of Types of Capital Instruments(a) Summary of Preferred Securities
We have included each of the following preferred securities issued by our overseas special purpose companies as Tier 1 capital forthe purposes of our consolidated capital adequacy ratios.
Preferred securities issued by SPCs of Mizuho Financial Group

210

IssuerMizuho Preferred Capital (Cayman) 1 Limited (as “MPC1,” and the preferred securities described below are referred to as the “MPC1
Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

Optional
redemption

Optionally redeemable on each dividend payment date falling in or after June 2012 (subject to prior approval from regulatory authorities)

Dividends

Floating dividend rate (No dividend rate step-up. As stated in “Dividend suspension events” below, dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

Last business day of June in each year

Total amount issued¥171.0 billion

Issue dateFebruary 14, 2002

Dividend suspension
eventsIf any of the following events arise, dividend payments are suspended on a non-cumulative basis:(1) when Mizuho Financial Group issues to MPC1 a Loss Absorption Certificate(1);(2) when dividends on Mizuho Financial Group's Preferred Stock(2) are suspended;(3) when Mizuho Financial Group issues to MPC1 a Distributable Amounts Limitation Certificate(4) stating that there are no Available
Distributable Amounts(3); and(4) when the dividend payment date is not a Mandatory Dividend Payment Date(5), and Mizuho Financial Group issues to MPC1 adividend instruction instructing it not to pay any dividends on such dividend payment date.

Mandatory dividend
event

If Mizuho Financial Group pays any dividends on its common stock with respect to a fiscal year, full dividends must be paid on Parity
Preferred securities(6) in June of the calendar year in which such fiscal year ends. However, it is subject to the following conditions: (1) no
Loss Absorption Certificate(1) has been issued; (2) no preferred stock dividend limitation has arisen with respect thereto (partial dividend
payments are made to the extent applicable); and (3) no Distributable Amounts Limitation Certificate(4) has been issued with respect
thereto (partial dividends are paid to the extent applicable).

Distributableamounts limitation

When Mizuho Financial Group issues a Distributable Amounts Limitation Certificate(4) to MPC1, dividends are limited to the Available
Distributable Amounts(3).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(2) are reduced, dividends on Parity Preferred Securities(6) are also reduced byan equal percentage.

Claims on residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(2)IssuerMizuho Capital Investment (USD) 1 Limited (“MCI (USD) 1,” andthe preferred securities described below are referred to as “MCI
(USD) 1 Preferred Securities.”)Mizuho Capital Investment (EUR) 1 Limited (“MCI (EUR) 1,” andthe preferred securities described below are referred to as “MCI
(EUR) 1 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Starting from the dividend payment date falling in June 2016,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Starting from the dividend payment date falling in June 2011,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2016. No dividend rate step-up. Dividend paymentsthat are suspended are non-cumulative.)

Fixed dividend rate for the first five years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2011. No dividend rate step-up. Dividend paymentsthat are suspended are non-cumulative.)

Dividend payment
date

June 30th and December 30th of each year

June 30th of each year until June 2011, and June 30th andDecember 30th of each year thereafter

Total amount issued

US$600 million=C500 million

Issue date

March 13, 2006

March 13, 2006

Dividend suspension
events(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(11) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (USD) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (USD) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(USD) 1.

(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(12) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (EUR) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (EUR) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(EUR) 1

Mandatory
dividend event

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (USD) 1 Preferred Securities must be made on thedividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (EUR) 1 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (USD) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(11).

Dividends for the MCI (EUR) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(12).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (USD) 1 Preferred Securities arealso reduced by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (EUR) 1 Preferred Securities are also
reduced by an equal percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(13)Same priority as Mizuho Financial Group's Preferred Stock(13)211

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

212

IssuerMizuho Capital Investment (JPY) 1 Limited(“MCI (JPY) 1,” and the preferred
securities described below are referred toas “MCI (JPY) 1 Preferred Securities.”)Mizuho Capital Investment (JPY) 2 Limited(“MCI (JPY) 2,” and the preferred
securities described below are referred toas “MCI (JPY) 2 Preferred Securities.”)Mizuho Capital Investment (JPY) 3 Limited(“MCI (JPY) 3,” and the preferred
securities described below (Series A and
Series B) are collectively referred to as“MCI (JPY) 3 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Mandatory
redemption date

None

None

None

Optional
redemption

Starting from the dividend payment datefalling in June 2016, optionally redeemableon each dividend payment date in five-year
intervals (subject to prior approval from
regulatory authorities)

Starting from the dividend payment datefalling in June 2018, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Starting from the dividend payment datefalling in June 2019, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2016. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)

Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2018. Dividend rate stepup is applied. Dividend payments that aresuspended are non-cumulative.)

Series A
Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2019. Dividend rate stepup is applied. Dividend payments that aresuspended are non-cumulative.)
Series B
Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2019. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

June 30th and December 30th of eachyear

June 30th and December 30th of eachyear

June 30th and December 30th of eachyear

Total amount issued¥400 billion¥274.5 billion

Series A ¥249.5 billion
Series B ¥ 53.5 billion

Issue date

January 12, 2007

January 11, 2008

July 11, 2008

Dividend suspension
events(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(14) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 1 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 1; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 1(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(15) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 2 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 2; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 2(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(16) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 3 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 3; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 3

Mandatory dividend
event

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 1 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 2 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 3 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (JPY) 1 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(14).

Dividends for the MCI (JPY) 2 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(15).

Dividends for the MCI (JPY) 3 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(16).

Dividend limitations

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 1 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 2 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 3 Preferred
securities are also reduced by an equal
percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)IssuerMizuho Capital Investment (JPY) 4 Limited(“MCI (JPY) 4,” and the preferred
securities described below are referred toas “MCI (JPY) 4 Preferred Securities.”)Mizuho Capital Investment (USD) 2 Limited(“MCI (USD) 2,” and the preferred
securities described below are referred toas “MCI (USD) 2 Preferred Securities.”)Mizuho Capital Investment (JPY) 5 Limited(“MCI (JPY) 5,” and the preferred
securities described below (Series A, Series
B and Series C) are collectively referred toas “MCI (JPY) 5 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Mandatory
redemption date

None

None

None

Optional
redemption

Starting from the dividend payment datefalling in June 2015, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Starting from the dividend payment datefalling in June 2014, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Series A
Starting from the dividend payment datefalling in June 2014, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)
Series B
Starting from the dividend payment datefalling in June 2015, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)
Series C
Starting from the dividend payment datefalling in June 2015, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

213

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

214

Dividends

Fixed dividend rate for the first seven years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2015. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)

Fixed dividend rate for the first five years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2014. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)

Series A
Fixed dividend rate for the first five years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2014. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)
Series B
Fixed dividend rate for the first six years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2015. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)
Series C
Fixed dividend rate for the first six years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2015. No dividend rate
step-up. Dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

March 31, 2009 and June 30th andDecember 30th of each year

June 30th and December 30th of eachyear

June 30th and December 30th of eachyear

Total amount issued¥355 billion$850 million

Series A ¥139.5 billion
Series B ¥ 72.5 billion
Series C ¥ 25.0 billion

Issue date

December 29, 2008

February 27, 2009

Series A
Series B
Series C

Dividend suspension
events(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(17) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 4 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 4; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 4(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(18) is
insufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (USD) 2 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(USD) 2; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (USD) 2(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(19) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 5 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 5; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 5

June 30, 2009
August 31, 2009
September 29, 2009

Mandatory dividend
event

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 4 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (USD) 2 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 5 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (JPY) 4 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(17).

Dividends for the MCI (USD) 2 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(18).

Dividends for the MCI (JPY) 5 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(19).

Dividend limitations

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 4 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (USD) 2 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 5 Preferred
securities are also reduced by an equal
percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)Notes:(1) Loss Absorption Certificate
Refers to a certificate that Mizuho Financial Group delivers to the issuer (in case of the loss
absorption event set forth in clause (iv) below, the issuance thereof is at our discretion) upon
any of the following events with respect to Mizuho Financial Group: (i) liquidation event thatshall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (a) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (b) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group; (ii)reorganization event that shall be deemed to occur if a competent court in Japan shall haveadjudicated (a) the commencement of a corporate reorganization proceeding of Mizuho
Financial Group under the Corporate Reorganization Law or (b) the commencement of a civil
rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law; (iii)
governmental action that shall be deemed to occur if the government authority in Japan (a)publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (b)publicly declares Mizuho Financial Group's liabilities exceed its assets, (c) publicly declares
Mizuho Financial Group to be under public management or (d) issues an order that Mizuho
Financial Group be transferred to a third party; (iv) inadequate ratio event that shall bedeemed to occur if capital adequacy ratio or Tier 1 capital ratio fails to meet the minimum
requirement or would fall short as a result of a dividend payment on the relevant preferred
securities; (v) default event that shall be deemed to occur if Mizuho Financial Group is notable to pay its debts as they become due or would not be able to do so as a result of adividend payment on the relevant preferred securities; or (vi) insolvency event shall be deemed
to occur if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its
assets as a result of a dividend payment on the relevant preferred securities.
(2) Preferred Stock
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments. It includes such preferred stocks that are issued in the future.
(3) Available Distributable Amounts
Refers to the maximum amount available for dividends (“Distributable Amounts”) calculated
based on the immediately preceding fiscal year's financial statements, less the aggregate
amount of dividends paid previously during the current fiscal year and scheduled to be paid
thereafter in respect of such fiscal year in respect of any Preferred Stock (provided that eachinterim dividend payment on Preferred Stock to be paid during such current Fiscal Year shallbe excluded in calculating Available Distributable Amounts). Notwithstanding the foregoing,
if there are securities issued by a company other than Mizuho Financial Group of which therights to dividends and the rights at the time of liquidation, etc., are determined by reference
to the financial condition and results of operation of Mizuho Financial Group and which rank,
in relation to MPC1, equal in point of subordination as the Parity Preferred Securities(6)(“Parallel Preferred Securities”), the Available Distributable Amounts are adjusted as follows:
Available Distributable Amounts after the adjustment = Available Distributable Amounts
x (Total of full dividend payment amount for Parity Preferred Securities(6) in such fiscal
year) / (Total of full dividend payment amount for Parity Preferred Securities(6) in such
fiscal year + Total amount of full dividend payment amount for Parallel Securities in such
fiscal year)(4) Distributable Amounts Limitation Certificate
Refers to a certificate issued by Mizuho Financial Group on or before the annual general
meeting of shareholders to issuers if Available Distributable Amounts falls short of total
dividends to be paid on the dividend payment date, which shall set forth the Available
Distributable Amounts of such fiscal year.
(5) Mandatory Dividend Payment Date
Refers to a dividend payment date in June of a calendar year when a fiscal year of Mizuho
Financial Group ends with respect to which it paid dividends on its common stock.
(6) Parity Preferred Securities
Refers to the collective designation for preferred securities and MPC1 Preferred Securities
issued by MPC1 which are perpetual and the dividend payment dates and the use of proceeds
are the same as that of the relevant MPC1 Preferred Securities. (As to MPC1, for example,
Parity Preferred Securities are the collective designation of MPC1 Preferred Securities as wellas other preferred securities that satisfy the above conditions if newly issued in the future.)(7) Liquidation Event
Shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (i) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (ii) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group.
(8) Reorganization Event
Shall be deemed to occur if a competent court in Japan shall have adjudicated (i) thecommencement of a corporate reorganization proceeding of Mizuho Financial Group under
the Corporate Reorganization Law or (ii) the commencement of a civil rehabilitation
proceeding of Mizuho Financial Group under the Civil Rehabilitation Law.
(9) Insolvency Event
Shall be deemed to occur if (i) Mizuho Financial Group is not able to pay its debts as they
become due or would not be able to do so as a result of a dividend payment on the relevant
preferred securities, or (ii) if the liabilities of Mizuho Financial Group exceeds its assets orwould exceed its assets as a result of a dividend payment on the relevant preferred securities.
(10)Governmental Action
Shall be deemed to occur if the government authority in Japan (i) publicly declares Mizuho
Financial Group is not able to pay its debts as they become due, (ii) publicly declares Mizuho
Financial Group's liabilities exceed its assets, (iii) publicly declares Mizuho Financial Group to
be under public management or (iv) issues an order that Mizuho Financial Group betransferred to a third party.
(11)Available Distributable Amounts for MCI (USD) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (USD) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (USD) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (USD) 1 Preferred
Securities.

215

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (USD) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (USD) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (USD) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(12)Available Distributable Amounts for MCI (EUR) 1 Preferred Securities(Up to the dividend payment date falling in June 2011)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend payment
amount on preferred securities for the then current fiscal year that are equivalently
subordinated in nature with MCI (EUR) 1 Preferred Securities (“Equivalent Securities”).
(From the dividend payment date falling in December 2011)(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend amounton Equivalent Securities to which dividends are paid in whole or in part or declared to be paidon or prior to the relevant dividend payment date of MCI (EUR) 1 Preferred Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Sock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (EUR) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (EUR) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (EUR) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(13)Preferred Stocks
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments and claims to residual assets.
(14)Available Distributable Amounts for the MCI (JPY) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 1 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 1 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 1 Preferred
Securities falling in June up to the dividend payment date falling in December.
(15)Available Distributable Amounts for the MCI (JPY) 2 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 2 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 2 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 2 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 2 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent

216

Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 2 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 2 Preferred
Securities falling in June up to the dividend payment date falling in December.
(16)Available Distributable Amounts for the MCI (JPY) 3 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 3 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 3 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 3 Preferred
Securities.
(ii) Amount available in December (except for the amount available in December 2008)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 3 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 3 Preferred
Securities falling in June up to the dividend payment date falling in December.
(iii) Amount available in December 2008
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends
on Equivalent Securities paid or declared to be paid from April 1, 2008 to June 30, 2008, prorated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment
date falling in December 2008 and full dividends on Equivalent Securities paid in whole or inpart or declared to be paid from the day after June 30, 2008 up to the dividend payment datefalling in December 2008.
(17)Available Distributable Amounts for the MCI (JPY) 4 Preferred Securities(i) Amount available in March 2009
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the fiscal year ended March 31, 2008, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends
on Equivalent Securities paid or declared to be paid from April 1, 2008 to December 30,
2008, pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and thefull dividend amount on preferred securities that are equivalently subordinated in nature withMCI (JPY) 4 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole
or in part or declared to be paid from the day after December 30, 2008 up to the dividend
payment date falling in March 2009.
(ii) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on
Equivalent Securities to which dividends are paid in whole or in part or declared to be paid onor prior to the relevant dividend payment date of MCI (JPY) 4 Preferred Securities.
(iii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 4 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 4 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 4 Preferred
Securities falling in June up to the dividend payment date falling in December.
(18)Available Distributable Amounts for the MCI (USD) 2 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (USD) 2 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (USD) 2 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (USD) 2 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (USD) 2 Preferred Securities made or declared to be made on orprior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (USD) 2 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (USD) 2 Preferred
Securities falling in June up to the dividend payment date falling in December.
(19)Available Distributable Amounts for the MCI (JPY) 5 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 5 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 5 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 5 Preferred
Securities.
(ii) Amount available in December (except for the amount available in December 2009)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial

statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 5 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 5 Preferred
Securities falling in June up to the dividend payment date falling in December.
(iii) Amount available in December 2009
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the fiscal year ended March 31, 2009, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends
on Equivalent Securities paid or declared to be paid from April 1, 2009 to June 30, 2009, prorated between full dividends on MCI (JPY) 5 Preferred Securities for the dividend payment
date falling in December 2009 and full dividends on Equivalent Securities paid in whole or inpart or declared to be paid from the day after June 30, 2009 up to the dividend payment datefalling in December 2009.

(b) Summary of Preferred Stock
The preferred stocks that have been issued as stated below are included in Tier 1 capital of Mizuho Financial Group's consolidated
capital adequacy ratio.
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Amount outstanding as of fiscal
year end (excluding treasury
stock)¥499.281 billion¥36.69 billion

Preferred dividend payment

An annual dividend payment of ¥20 per preferred share toholders of preferred stock in priority to dividend payments
to holders of common stock.

An annual dividend payment of ¥30 per preferred share toholders of preferred stock in priority to dividend payments
to holders of common stock.

Non-cumulative clauseIn the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

In the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

Non-participation clauseNo distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

No distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

Preferred interim dividend
payment

If an interim dividend payment is made, ¥10 per share is tobe paid in priority to holders of common stock.

If an interim dividend payment is made, ¥15 per share is tobe paid in priority to holders of common stock.

Distribution of residual assets¥1,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

¥1,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

217

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Conversion
requestConversion
periodFrom July 1, 2008 to June 30, 2016.

Conversion price¥303.50(As of July 1, 2010)n.a.

Reset ofconversion price

On July 1 of each year from July 1, 2009 to July 1, 2015
(hereafter, “Conversion Price Reset Date”), in the event themarket price of common stock on such date is below theeffective conversion price on the day before the relevant
Conversion Price Reset Date, the reset price is to be
adjusted as of the relevant Conversion Price Reset Date tosuch market price (minimum: ¥303.50), where market priceis defined as the average of the daily closing prices ofcommon stock as reported by the Tokyo Stock Exchange
for the 30 consecutive trading days commencing on the
45th trading day prior to the Conversion Price Reset Date.

n.a.

Adjustment of
the conversion
price

Adjustments to the conversion price are to be made upon
the issuance or disposition of common stock at a pricelower than the market price and in other specified
circumstances.

n.a.

Number of sharesof common stock
to be provided
upon conversion

The number obtained by dividing (i) the total issue price ofthe preferred stock submitted in connection with theconversion request by the holders of such preferred stockby (ii) the conversion price.

n.a.

Mizuho Financial Group shall acquire on July 1, 2016 any
preferred stock in respect of which a request for conversion
has not been made by June 30, 2016 and deliver common
stock to the holder of such preferred stock. The number ofshares of common stock to be delivered is obtained by
dividing ¥1,000 by the average of the daily closing prices ofcommon stock as reported by the Tokyo Stock Exchange
for the 30 consecutive trading days commencing on the
45th trading day prior to July 1, 2016 (minimum: ¥303.50).

n.a.

n.a.

On or after April 1, 2013, as determined by a resolution of
the general meeting of shareholders, all or a portion of thepreferred stock can be repurchased at the conversion priceset forth below.
The conversion price per share will be the sum of ¥1,000
and the preferred dividend pro-rated for the number ofdays from the first day of the fiscal year during which theconversion date falls; provided, however, that if preferredinterim dividends are paid, the conversion price per share is
to be reduced by the amount of such interim dividend.

Voting rights

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

Preferential status

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

Mandatory conversion ofpreferred stock

Conversion clause

218

n.a.

(c) Summary of Debt Capital Instruments
1. Summary
The following debt capital instruments are included in Tier 2 capital:• Perpetual subordinated debt;• Dated subordinated debt; and• Dated preferred stock.
Of the above, perpetual subordinated debt and dated subordinated debt are in the form of subordinated bonds with subordination clause (corporate bonds with subordination clause) or subordinated loans (borrowing by means of loan agreement withsubordination clause) (collectively, “Subordinated Bonds, Etc.”). Specifically, such debt capital is raised as follows:(1) Subordinated bonds offered to investors in Japan and abroad;(2) Subordinated bonds using a Euro MTN program, etc.; and(3) Subordinated loans.
The Subordinated Bonds, Etc., are issued by or loaned to Mizuho Financial Group, its banking subsidiaries or overseas consolidated SPC subsidiaries.
In each case, the above instruments are based on terms that are in accordance with relevant public notices and supervisory
guidelines of the Financial Services Agency so as to ensure eligibility as Tier 2 capital.
At present, we have no dated preferred stock outstanding.
2. Subordination clause
Subordinated Bonds, Etc., include subordination clauses pursuant to which, in the event that certain grounds for subordinationarise, payments of principal and interest on the relevant Subordinated Bonds, Etc., are ranked lower in priority compared to the
execution of obligations relating to more senior claims which are obligations other than those that rank pari passu or junior tosuch Subordinated Bonds, Etc. (concerning the rights of holders of Subordinated Bonds, Etc., that seek payment, the order of priority in receiving payments in bankruptcy proceedings is junior to subordinated bankrupt claims as set forth in the Bankruptcy
Law). As a result, senior creditors have priority over holders of Subordinated Bonds, Etc., in the event of bankruptcy, corporate
reorganization and civil rehabilitation proceedings, etc.
3. Perpetual subordinated debt
Perpetual subordinated debt is a debt capital instrument with all of the following features:(1) Unsecured, fully paid and subordinated to other obligations;(2) Not redeemable or repayable, except when it is optional and the debtor anticipates that a sufficient capital adequacy ratio will
be maintained after such redemption or repayment or in connection with the raising of capital in an amount equal to or inexcess of the amount to be redeemed or repaid;(3) Applicable to absorb losses while the obligor continues to do business; and(4) Contains a provision that allows a deferred payment of interest.
4. Dated subordinated debt
Dated subordinated debt differs from perpetual subordinated debt in that it has a fixed redemption or repayment term of morethan five years.
In the case of both perpetual subordinated debt and dated subordinated debt, if a step-up in interest is provided for, the application of such step-up must be made at a time five years or more from the issue or loan date so as to prevent the interest to be
paid after step-up from being excessive, and the amount of step-up must be within the limit that the Financial Services Agency
determines in supervisory guidelines.

4. Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct the following assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring structure.
Maintaining a Sufficient BIS Capital Adequacy Ratio and Tier 1 Capital Ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether our
risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic targets tomatch the increase in risk-weighted assets acquired for growth, in addition to maintaining risk-based capital that exceeds theminimum requirements (8% under BIS standards, 4% under domestic standards).
219

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Balancing Risk and CapitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group's overall risk
exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating capitalthat corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc., within the bounds ofour capital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we examine whether an appropriate return on risk is maintained in addition to considering the effects
that interest rate risk related to our banking book, credit concentration risk and stress tests have on our capital.

5. Required Capital by Portfolio Classification
Billions of yen

2010
EAD
Required Capital

As of March 31,

Credit Risk

¥ 154,949.9

Internal Ratings-based Approach
Corporate (except Specialized Lending)Corporate (Specialized Lending)
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
Equities, etc.
PD/LGD Approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)Transitional Measure Applied
Regarded-method Exposure
Purchase Receivables
Securitizations
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersMarket Risk
Standardized Approach
Interest Rate Risk
Equities Risk
Foreign Exchange Risk
Commodities Risk
Option Transactions
Internal Models Approach
Operational Risk
Advanced Measurement Approach
Gross Profit Allocation Approach
Basic Indicator Approach
Total Required Capital (Consolidated)
Notes: 1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.

220

¥

¥

2009
EAD
Required Capital

5,743.4¥ 156,347.2

147,120.5
49,916.2
2,755.9
61,363.4
4,834.2
13,148.9
10,664.9337.2
2,146.7
3,848.4
1,022.2292.9—
2,533.2
1,094.0
1,999.8
4,996.1
3,163.2

5,462.6
3,253.4
327.7
65.3
147.1
578.8
403.3
29.6
145.9
449.1
154.0
80.3
—
214.8
306.6
81.0
75.1
177.8

147,534.3
55,192.8
2,968.4
54,333.2
6,557.2
13,144.5
10,555.5336.7
2,252.2
3,538.9
817.4
332.0
—
2,389.5882.1
2,071.3
5,645.3
3,200.1¥

5,610.3
3,445.7
314.3
64.0
188.6
552.4
366.0
29.9
156.4
425.5
133.5
89.4
—
202.6
246.7
102.0
80.5
190.3

5,915.4

7,829.3
3,354.9
1,529.7
2,335.2
0.0
40.9
568.3

280.8
5.9
27.0
177.2
0.0
36.7
33.9

8,812.8
3,510.6
2,302.8
2,405.6
0.0
37.1
556.5

305.0
2.1
41.2
182.0
0.0
35.9
43.6

/

103.8

/

107.3

/
/
/
/
/
/

77.9
54.5
15.0
1.5
6.7
—

/
/
/
/
/
/

64.1
53.3
1.8
1.7
7.1
—

/

25.9

/

43.2

/

292.5

/

278.5

/
/
/

243.8
/
48.6

/
/
/

/
278.5
/

/

¥

4,549.0¥/¥

4,724.44. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deduction from capital. For
market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:
Corporate (excluding specialized lending)Credit to corporations and sole proprietors (excluding credit to retail customers)
Corporate (specialized lending)Credits which limit interest and principal repayment sources to cash flow derived from
specific real estate, chattel, businesses, 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 loans)and other individual consumer loans and loans to business enterprises with total credit
amount of less than ¥100 million (other retail), etc.
Equities, etc.
Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading
assets)*The transitional measure applies to those held from September 30, 2004 or earlier,and others are applied either the PD/LGD approach or the market-based approach.
Regarded-method Exposure
Investment trusts and funds, etc.
Purchase Receivables
Receivables purchased from third parties excluding securities (excluding securitizations)
Securitizations
Transactions in the form of “non-recourse” or having a “senior/subordinated structure”(excluding specialized lending)
7. Since the fiscal year ended March 31, 2010, cash has been added to calculate “Others” under internal ratings-based approach. In
addition, such change is also reflected in the figures as of March 31, 2009 in the above table. Further, due to this change, the tables titled(A) Breakdown by geographical area, (B) Breakdown by industry and (C) Breakdown by residual contractual maturity in (7) Credit risk
exposure, etc., as of March 31, 2010 and 2009, as set forth below, reflect such change.
8. EAD calculated using the standardized approach for credit risk 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.

Credit Risk
6. Credit Risk Management
Summary of Credit Risk Management
See pages 63 to 67 a summary of our credit risk management policies and procedures.
We have adopted the advanced internal ratings-based approach since March 31, 2009 to calculate credit risk-weighted assets
under Basel II. 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 risk-weighted 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 back testing and other methods. We also utilize these estimates for measuring credit risks forinternal 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 100% risk weight for all of our corporate exposure.
Summary of Our Internal Rating System
See pages 64 to 65 for a summary of our internal rating system and rating assignment procedures.

221

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

7. Credit Risk Exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2010 and 2009.

Status of Credit Risk Exposure(a) Breakdown by Geographical Area
Billions of yen

As of March 31, 2010

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities¥ 73,354.5
13,607.7
2,798.3
1,981.3
4,731.6
77.8
2,895.3
1,123.2¥ 86,962.3/¥ 35,042.5
5,553.6
509.1
169.8
2,851.6—
1,851.1
171.7¥ 40,596.1/

OTC derivatives¥¥

2,178.9
2,127.3
113.3
195.6
679.8
0.0
1,056.1
82.1
4,306.2/¥¥

OthersTotal

6,891.1
2,274.3535.9
3.5
1,438.1
0.8
203.1
92.7
9,165.5/¥ 117,467.1
23,563.1
3,956.8
2,350.4
9,701.3
78.7
6,005.9
1,469.8¥ 141,030.2
7,788.4

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted 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.
Billions of yen

As of March 31, 2009

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities¥ 81,273.6
16,523.9
2,938.3
1,987.5
6,114.8
80.9
4,077.0
1,325.2¥ 97,797.6/¥ 24,104.3
3,911.3
451.5
148.3
2,072.6—
1,104.9
133.9¥ 28,015.7/

OTC derivatives¥¥

2,533.7
3,033.5
164.3
196.8
943.7
0.1
1,596.1
132.2
5,567.3/¥¥

OthersTotal

6,283.8
3,342.4448.6
6.1
2,010.7
1.3
809.8
65.6
9,626.2/¥ 114,195.6
26,811.3
4,002.8
2,338.9
11,142.0
82.4
7,587.9
1,657.1¥ 141,006.9
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted 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.

222

(b) Breakdown by Industry
Billions of yen

As of March 31, 2010

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 13,568.8
1,605.5
7,158.4
4,729.2
7,173.6
9,189.5
12,003.9
13,765.7
17,767.3¥ 86,962.3/

Securities¥

2,326.0
224.6
531.1
1,077.0
603.6
1,346.0—
5,521.2
28,966.2¥ 40,596.1/

OTC derivatives

¥

¥

620.9
18.9
57.9
181.5
677.0
2,114.4
0.3
627.5
7.6
4,306.2/

Others

¥

¥

198.3
10.6
50.6
86.6
414.0
1,220.1
14.9
5,034.2
2,135.8
9,165.5
/

Total

¥

16,714.1
1,859.7
7,798.1
6,074.6
8,868.3
13,870.2
12,019.1
24,948.7
48,877.1¥ 141,030.2
7,788.4

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification.
Billions of yen

As of March 31, 2009

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 15,472.0
1,946.9
7,918.1
4,743.6
8,190.2
10,186.4
12,043.2
14,949.9
22,347.0¥ 97,797.6/

Securities¥

2,067.8
218.4
561.4
449.6
590.4
1,457.2—
4,174.7
18,495.8¥ 28,015.7/

OTC derivatives

¥

¥

694.3
22.1
57.0
213.7
746.8
3,066.4
0.3
760.5
5.8
5,567.3/

Others

¥

¥

199.8
13.9
53.1
17.2
364.4
1,355.3
17.0
5,786.7
1,818.5
9,626.2
/

Total

¥

18,434.1
2,201.4
8,589.7
5,424.2
9,891.8
16,065.5
12,060.5
25,671.9
42,667.3¥ 141,006.9
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification of the fiscal year ended March 31, 2010, and such amendment is also reflected in the figures as of March 31, 2009.

223

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(c) Breakdown by Residual Contractual Maturity
Billions of yen

As of March 31, 2010

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthers
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities¥ 28,104.6
15,067.7
8,841.0
24,146.3
10,802.4¥ 86,962.3/¥ 16,630.5
10,608.3
5,227.7
4,386.7
3,742.6¥ 40,596.1/

OTC derivatives

¥

¥

475.6
1,670.3
1,147.5
921.4
91.1
4,306.2/

Others¥¥

1,671.2
33.1
2.1
24.2
7,434.7
9,165.5
/

Total

¥

46,882.1
27,379.6
15,218.5
29,478.9
22,071.0¥ 141,030.2
7,788.4

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2009

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthers
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 34,163.4
14,676.3
11,854.1
21,898.0
15,205.5¥ 97,797.6/

Securities¥

8,750.1
7,772.1
3,354.8
4,707.3
3,431.0¥ 28,015.7/

OTC derivatives

¥

¥

611.8
2,562.4
1,209.7
1,077.0
106.1
5,567.3/

Others¥¥1,424.2
37.9
8.1
24.5
8,131.2
9,626.2
/

Total

¥

44,949.7
25,048.9
16,426.9
27,707.1
26,874.1¥ 141,006.9
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

224

Status of Exposure Past Due Three Months or More or in Default(d) Breakdown by Geographical Area
Billions of yen

As of March 31, 2010

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,726.5
239.3
42.6
27.6
32.2
12.8
70.8
52.9
¥ 1,965.9/¥ 32.8
2.1
0.0
1.5
0.6
—
—
—
¥ 34.9/¥¥ 84.3
23.7
4.5
0.3
16.5
0.0
1.8
0.3
¥ 108.0/¥ 1,881.8
265.7
47.3
29.5
49.4
12.8
73.0
53.3
¥ 2,147.5
3.6

¥

38.1
0.5
0.1
0.0
0.0
—
0.3
0.0
38.7
/

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2009

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,763.3
225.5
43.5
0.4
50.8
6.8
95.1
28.6
¥ 1,988.8/¥ 70.4
0.2
0.0
0.0
0.2
—
—
—
¥ 70.7/¥¥ 70.3
25.9
4.6
0.0
16.8
0.0
4.3
0.0
¥ 96.3/¥ 1,940.3
254.6
48.2
0.4
69.2
6.8
99.9
29.9
¥ 2,194.9
5.8

¥

36.1
2.9
0.0
—
1.2
—
0.4
1.2
39.0
/

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

225

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(e) Breakdown by Industry
Billions of yen

As of March 31, 2010

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

408.9
104.8
349.4
258.4
266.5
64.5
195.2
317.7
¥ 1,965.9/

Securities

¥

9.6
10.4
0.9
1.0
6.4
1.8
—
4.6
¥ 34.9/OTC derivatives

¥

8.2
0.4
0.4
5.0
19.1
0.4
0.0
4.9
¥ 38.7/

Others

¥

18.4
2.5
6.7
6.7
37.7
19.0
1.5
15.0
¥ 108.0
/

Total

¥

445.2
118.2
357.6
271.2
329.8
85.9
196.8
342.3
¥ 2,147.5
3.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification.
Billions of yen

As of March 31, 2009

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

388.9
129.1
461.6
294.4
243.5
56.7
136.6
277.7
¥ 1,988.8/

Securities

¥

6.6
11.3
2.9
9.9
6.7
0.8
—
32.1
¥ 70.7/

OTC derivatives

¥

6.1
0.7
1.1
3.8
14.7
1.0
0.0
11.3
¥ 39.0/

Others

¥

¥

18.5
2.7
10.8
7.1
29.5
19.1
1.4
6.9
96.3
/

Total

¥

420.2
144.0
476.6
315.4
294.5
77.6
138.1
328.2
¥ 2,194.9
5.8

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans 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 risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification of the fiscal year ended March 31, 2010, and such amendment is also reflected in the figures as of March 31, 2009.

226

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(after Partial Direct Write-Offs)
Billions of yen

As of, or for the Fiscal Years ended, March 31,

General Reserve for Possible Losses on Loans

Specific Reserve for Possible Losses on Loans

Reserve for Possible Losses on Loans to Restructuring Countries

Total

2010

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance¥

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance

583.2
563.8
583.2
563.8
299.5
317.7
299.5
317.7

2009

¥

0.5
0.1
0.5
0.1
¥

883.4
881.8
883.4
881.8

510.9
583.2
510.9
583.2
171.9
299.5
171.9
299.5
0.0
0.5
0.0
0.5

¥

683.0
883.4
683.0
883.4

Note: General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and theamounts associated with regarded-method exposure and securitization exposure are not excluded.

227

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(g) Specific Reserve for Possible Losses on Loans by Geographical Area and Industry
Billions of yen

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersOverseas
Exempt Portion
Total

2010

¥

¥

274.8
24.7
6.4
30.2
22.5
29.0
9.4
71.1
81.2
36.2
6.7
317.7

2009

¥

¥

218.6
16.1
5.4
51.8
34.2
35.0
2.8
58.7
14.3
74.5
6.4
299.5

Change

¥

¥

56.2)
8.6
0.9
(21.6)(11.6)
(6.0)
6.5
12.4
66.9
(38.2)
0.2
18.2

Notes: 1. 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.
2. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification of the fiscal year ended March 31, 2010. Such amendment is also reflected in the figures as of March 31, 2009.
Billions of yen

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersOverseas
Exempt Portion
Total

2009

¥

¥

218.6
16.1
5.4
51.8
34.2
35.0
2.8
58.7
14.3
74.5
6.4
299.5

2008

¥

¥

144.5
12.0
5.3
11.9
24.1
24.8
4.3
55.4
6.2
23.4
3.9
171.9

Change

¥

¥

74.0
4.0
0.0
39.8
10.1
10.1
(1.4)
3.2
8.0
51.0
2.4
127.5

Notes: 1. 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.
2. Partial amendment has been made to the industry classification of the fiscal year ended March 31, 2010, and such amendment is also
reflected in the figures as of March 31, 2009 and 2008.

(h) Write-Offs of Loans by Industry
Billions of yen

For the Fiscal Years ended March 31,

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersExempt Portion
Total

2010

2009

¥ 11.7
2.3
16.8
6.7
34.0
1.1
2.7
53.3
0.3
¥ 129.3¥ 32.4
20.8
86.3
10.6
47.6
13.0
3.0
48.0
0.6
¥ 262.7

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 with regarded-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. “Others” include overseas and non-Japanese resident portions.
4. Following the revision of the Japan Standardized Industrial Classification in November 2007, partial amendment has been made to theindustry classification of the fiscal year ended March 31, 2010. Such amendment is also reflected in the figures as of March 31, 2009.

228

Status of Exposure to which the Standardized Approach is Applied(i) Exposure by Risk Weight Category after Applying Credit Risk Mitigation
Billions of yen

On-balance Sheet

Off-balance Sheet

Total

527.6
1.0
325.9
0.0
22.5
2,006.8
0.4
—
—
—
—

¥ 2,723.5—
1,179.6
—
20.0
980.6
—
—
—
—
0.0

¥ 3,251.1
1.0
1,505.5
0.0
42.6
2,987.4
0.4
—
—
—
0.0

¥

129.5
—
19.5
—
15.9
58.0
—
—
—
—
—

¥ 2,884.4¥ 4,903.9¥ 7,788.4

¥

223.1

As of March 31, 2010

Risk WeightWith external rating

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

Total¥

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.
Billions of yen

On-balance Sheet

Off-balance Sheet

Total

701.9
29.4
439.0
0.0
48.6
2,027.9
0.1
—
—
—
—

¥ 2,699.7
0.0
1,827.7
—
13.2
987.5
0.0
—
—
—
0.0

¥ 3,401.7
29.5
2,266.8
0.0
61.8
3,015.4
0.2
—
—
—
0.0

¥

102.2
—
27.9
—
10.5
9.5
0.0
—
—
—
—

¥ 3,247.2¥ 5,528.4¥ 8,775.6

¥

150.4

As of March 31, 2009

Risk WeightWith external rating

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

Total¥

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

(j) Deduction from CapitalBillions of yen

As of March 31,

Deduction from Capital

2010

¥

36.2

2009

¥

35.8

229

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Status of Exposure to which the Internal Ratings-Based Approach is Applied(k) Specialized Lending Exposure under Supervisory Slotting Criteria by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight

2010

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

¥

241.8
672.3
165.1
47.7
223.2
23.7
8.4
470.8
37.1

¥ 1,890.6

2009

¥

168.7
860.3
216.9
121.8
307.2
4.5
17.2
363.6
13.4

¥ 2,074.0(l) Equity Exposure under Simple Risk Weight Method by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight
Total

2010

300%
400%

2009

¥

224.8
68.1

¥

273.3
58.7

¥

292.9

¥

332.0

Note: Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities.

230

(m) Portfolio by Asset Class and Ratings Segment (Corporate)
Billions of yen

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments

Weighted
Averageof Credit
Conversion
Factor(%)

Corporate
5.06%
Investment Grade Zone
0.12
Non-investment Grade Zone
4.00
Default
100.0035.70%
36.84
32.51
57.35

/%
/
/
54.32

51.20% ¥ 52,412.4 ¥ 38,803.8 ¥ 13,608.6 ¥ 9,912.0
25.08
28,687.3 18,963.8
9,723.5
7,780.0
86.15
21,988.4 18,196.7
3,791.7
2,090.6
40.20
1,736.6
1,643.2
93.3
41.3

75.19%
75.18%
75.19%
75.81%

Sovereign
0.01
Investment Grade Zone
0.00
Non-investment Grade Zone
1.59
Default
100.00

38.78
38.78
38.77
69.07

/
/
/
64.41

1.31
1.16
91.71
61.76

61,598.8
61,496.7
102.0
0.0

47,419.8
47,324.1
95.6
0.0

14,179.0
14,172.6
6.4
—

101.7
95.3
6.3
—

75.00%
75.00%
75.00%
—%

Bank
1.02
Investment Grade Zone
0.12
Non-investment Grade Zone
2.35
Default
100.00

37.70
37.07
39.67
95.65

/
/
/
93.27

28.84
23.85
83.10
31.59

4,967.6
4,518.7
413.4
35.4

2,121.1
1,933.4
154.3
33.2

2,846.5
2,585.2
259.1
2.1

298.2
229.9
68.3
—

77.54%
78.87%
73.09%—%

Equity exposure
under PD/LGD approach
1.65
Investment Grade Zone
0.08
Non-investment Grade Zone
5.17
Default
100.00

90.00
90.00
90.00
90.00

/
/
/
90.00

169.82113.81365.13.—

1,022.2
788.1
229.7
4.3

1,022.2
788.1
229.7
4.3

—
—
—
—

—
—
—
—

—%
—%
—%
—%

Total
2.27%
Investment Grade Zone
0.05
Non-investment Grade Zone
3.97
Default
100.0037.83%
38.54
33.25
58.19

/%
/
/
55.18

25.68% ¥ 120,001.3 ¥ 89,367.0 ¥ 30,634.3 ¥ 10,312.0
10.35
95,491.0 69,009.6 26,481.4
8,105.3
88.94
22,733.8 18,676.5
4,057.3
2,165.3
39.93
1,776.4
1,680.9
95.5
41.3

75.25%
75.28%
75.12%
75.81%

As of March 31, 2010

EAD

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 65 for details of obligor ratings).
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.

231

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Billions of yen

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Corporate
4.78%
Investment Grade Zone
0.14
Non-investment Grade Zone
3.64
Default
100.0036.19%
37.30
33.26
55.69

/%
/
/
52.55

50.20%
26.40
81.96
41.58

Sovereign
0.01
Investment Grade Zone
0.00
Non-investment Grade Zone
1.59
Default
100.00

39.15
39.15
39.13
45.32

/
/
/
41.17

1.45
1.22
93.74
54.90

54,390.8
54,251.4
139.1
0.2

38,534.3
38,398.7
135.3
0.2

15,856.5
15,852.6
3.8
0.0

81.0
80.6
0.3
—

75.00%
75.00%
75.00%
—%

Bank
0.71
Investment Grade Zone
0.11
Non-investment Grade Zone
2.21
Default
100.00

38.16
37.71
40.12
98.61

/
/
/
96.46

29.14
23.91
93.94
28.50

6,709.6
6,180.4
499.3
29.8

2,508.7
2,254.0226.0
28.6

4,200.8
3,926.3
273.2
1.2

481.6
419.1
62.4
—

77.10%
77.41%
75.00%—%

Equity exposure
under PD/LGD approach
3.20
Investment Grade Zone
0.07
Non-investment Grade Zone
2.38
Default
100.00

90.00
90.00
90.00
90.00

/
/
/
90.00

168.11
119.15306.34
.—

817.4
570.2
226.7
20.3

817.4
570.2
226.7
20.3

—
—
—
—

—
—
—
—

—%
—%
—%
—%

Total
2.38%
Investment Grade Zone
0.06
Non-investment Grade Zone
3.59
Default
100.0038.01%
38.73
33.94
56.73

/%
/
/
53.64

27.71% ¥ 119,866.5 ¥ 85,533.2 ¥ 34,333.3 ¥ 10,681.2
12.08
92,786.8 62,761.6 30,025.2
8,623.1
84.28
25,190.5 20,976.3
4,214.2
2,030.3
40.93
1,889.1
1,795.2
93.9
27.7

75.45%
75.48%
75.27%
76.76%

As of March 31, 2009

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments

Weighted
Averageof Credit
Conversion
Factor(%)¥ 57,948.7 ¥ 43,672.7 ¥ 14,276.0 ¥ 10,118.6
31,784.8 21,538.5 10,246.2
8,123.3
24,325.2 20,388.1
3,937.1
1,967.5
1,838.6
1,745.9
92.6
27.7

75.37%
75.39%
75.27%
76.76%

EAD

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 65 for details of obligor ratings).
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.

232

(n) Portfolio by Asset Class and Ratings Segment (Retail)Billions of yen

As of March 31, 2010

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Residential Mortgage
Non-default
Default

2.54%
0.84
100.0041.91%
41.78
49.54

/%
/
46.99

32.90%
32.89
33.58

Qualifying Revolving
Loans (Retail)Non-default
Default

3.64
3.21
100.00

83.85
83.85
83.36

/
/
79.53

71.80
71.90
50.34

337.2
335.7
1.5

233.9
232.7
1.2

Other RetailNon-default
Default

4.49
1.78
100.00

56.03
56.08
54.27

/
/
51.65

55.10
55.68
34.70

2,146.7
2,087.4
59.2

Total
Non-default
Default

2.88%
1.05
100.0045.29%
45.19
50.90

/%
/
48.33

37.52%
37.59
33.96

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥ 10,664.9 ¥ 10,279.4
10,482.1 10,104.3
182.7
175.0

¥ 385.5
377.8
7.7

¥

Weighted
Averageof Credit
Conversion
Factor(%)

11.4
11.4
—

75.00%
75.00%
—%

103.2
103.0
0.2

1,422.6
1,420.3
2.3

7.26%
7.25%
11.44%

2,124.7
2,068.4
56.3

21.9
18.9
2.9

25.9
22.9
3.0

70.27%
67.12%
93.79%¥ 13,148.9 ¥ 12,638.1
12,905.3 12,405.5
243.5
232.6

¥ 510.7
499.8
10.9¥ 1,460.1
1,454.7
5.4

8.91%
8.73%
58.13%

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.
Billions of yen

As of March 31, 2009PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Residential Mortgage
Non-default
Default

1.99%
0.84
100.0041.76%
41.65
51.09

/%
/
48.57

31.99%
31.98
33.17

Qualifying Revolving
Loans (Retail)Non-default
Default

3.63
3.16
100.00

85.54
85.55
84.26

/
/
80.40

72.67
72.79
48.31

336.7
335.1
1.6

234.4
233.1
1.3

Other RetailNon-default
Default

4.20
1.86
100.00

57.27
57.36
53.55

/
/
50.89

58.31
58.89
34.60

2,252.2
2,198.6
53.5

Total
Non-default
Default

2.41%
1.07
100.0045.54%
45.45
52.14

/%
/
49.57

37.54%
37.59
33.74

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥ 10,555.5 ¥ 10,114.0
10,433.3
9,997.5
122.2
116.4

¥ 441.5
435.7
5.7

¥

Weighted
Averageof Credit
Conversion
Factor(%)

11.2
11.2
—

75.00%
75.00%
—%

102.2
102.0
0.2

1,418.2
1,415.7
2.5

7.19%
7.19%
11.39%

2,225.8
2,176.0
49.7

26.3
22.6
3.7

33.4
29.3
4.1

68.08%
64.89%
90.88%¥ 13,144.5 ¥ 12,574.3
12,967.1 12,406.7
177.3
167.5

¥ 570.2
560.4
9.8¥ 1,462.8
1,456.2
6.6

9.11%
8.87%
60.60%

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.

233

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(o) Actual Losses by Asset Class
Billions of yen

For the period from April 1, 2009
through March 31, 2010
Actual Losses

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other RetailTotal

For the period from April 1, 2008
through March 31, 2009
Actual Losses

¥

166.5
0.3
1.0
33.2
0.2
4.3

¥

345.3
0.0
28.6
17.2
2.1
3.8

¥

205.8

¥

397.3

Notes: 1. We have changed the method of calculation of actual losses for the above table starting the period from April 1, 2009 through March 31,
2010. We also reflected such changes to the period from April 1, 2008 through March 31, 2009 in the above table.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses onloans 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 from debt forgiveness and losses from debt-equity swaps during therelevant period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.
<Analysis>
Actual losses of ¥205.8 billion in the period from April 1, 2009 through March 31, 2010 decreased by ¥191.4 billion compared with theperiod from April 1, 2008 through March 31, 2009. The decrease was due mainly to the decrease in losses from corporate exposurereflecting improvements in the economic environment, etc.

234

(p) Comparison of Estimated and Actual Losses by Asset Class
Billions of yen

For the period from April 1, 2009
through March 31, 2010
Estimated Losses (Expected Losses
as of March 31, 2009)
After
Deduction
Actualof Reserves
LossesCorporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other RetailTotal

For the period from April 1, 2008
through March 31, 2009
Estimated Losses (Expected Losses
as of March 31, 2008)
After
Deduction
Actualof Reserves
Losses¥ 1,313.1
1.7
35.5
95.8
10.3
51.3

¥

473.3 ¥
(10.8)
6.5
24.8
3.8
15.6

166.5
0.3
1.0
33.2
0.2
4.3

¥ 1,121.0
1.3
2.9
86.6
7.9
51.9

¥

350.0 ¥
(11.1)
2.5
22.7
3.2
16.4

345.3
0.0
28.6
17.2
2.1
3.8

¥ 1,508.0

¥

513.3

205.8

¥ 1,271.8

¥

383.9

397.3

¥

¥

Notes: 1. We have changed the method of disclosure and calculation of actual losses for the above table starting the period from April 1, 2009
through March 31, 2010. We also reflected such changes to the period from April 1, 2008 through March 31, 2009 and the period from
April 1, 2007 through March 31, 2008 in the above table.
2. 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 beginningof each period.
3. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses onloans and general reserves 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 from debt forgiveness and losses from debt-equity swaps during therelevant period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.
Billions of yen

For the period from April 1, 2007
through March 31, 2008
Estimated Losses (Expected Losses
as of March 31, 2007)
After
Deduction
Actualof Reserves
LossesCorporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other RetailTotal¥ 1,086.0
5.4
6.4
78.2
7.2
52.9

¥

217.0 ¥
(7.0)
2.6
6.8
2.3
8.8

74.6
0.0
(2.6)
5.1
(0.1)
(2.8)

¥ 1,236.5

¥

230.5

74.1

¥

Notes: 1. We have changed the method of disclosure and calculation of actual losses for the above table starting the period from April 1, 2009
through March 31, 2010. We also reflected such changes to the period from April 1, 2008 through March 31, 2009 and the period from
April 1, 2007 through March 31, 2008 in the above table.
2. 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 beginningof each period.
3. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses onloans and general reserves 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 from debt forgiveness and losses from debt-equity swaps during therelevant period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.

235

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Methods for Credit Risk Mitigation
8. Risk Management Regarding Credit Risk Mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, we evaluate thevalue 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 and concentration 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.

236

9. Credit Risk Mitigation by Portfolio Classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as follows:
Billions of yen

As of March 31, 2010

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
Others
Total

Financial
Collateral

Other
Collateral

CreditDerivatives

Guarantees¥ 2,476.1
2,095.5
0.4
367.1
13.1
—
—
13.1
—

¥ 4,822.8
4,762.2
13.5
4.9
42.1
—
—
42.1
—

¥ 5,411.5
3,497.8
889.4
218.8
805.3
269.9
0.7
534.6
—

2,373.2
2,256.4
1.5
115.2
—
—
—

/
/
/
/
/
/
/

—
—
—
—
—
—
—

¥ 4,849.4¥ 4,822.8¥ 5,411.5¥

Financial
Collateral

Other
Collateral

Guarantees

CreditDerivatives

Total¥ 2,480.5
2,065.8
0.3
400.3
13.9
—
—
13.9
—

¥ 4,869.5
4,800.5
16.4
0.8
51.7
—
—
51.7
—

¥ 5,248.3
2,783.0
1,433.2
219.8
812.2
300.0
0.9
511.3
—

¥ 405.1
405.1
—
—
—
—
—
—
—

¥ 13,003.7
10,054.6
1,450.0
621.0
878.0
300.0
0.9
577.0
—

2,218.2
2,107.9
1.9
108.3
—
0.0
—

/
/
/
/
/
/
/

54.5
28.8
0.0
25.7
—
—
—

—
—
—
—
—
—
—

2,272.8
2,136.7
1.9
134.1
—
0.0
—

¥ 4,698.8¥ 4,869.5¥ 5,302.9¥ 405.1¥ 15,276.5

¥

Total

87.6
87.6
—
—
—
—
—
—
—

¥ 12,798.2
10,443.3
903.3
590.9
860.6
269.9
0.7
589.9
—

—
—
—
—
—
—
—

2,373.2
2,256.4
1.5
115.2
—
—
—

87.6

¥ 15,171.5
Billions of yen

As of March 31, 2009

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal

237

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
10. Management of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
See pages 157 to 159 for a summary of our risk management policy for counterparty risk in derivative transactions, etc.

11. Status of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions(a) Status of Derivatives Transactions and Long-Settlement Transactions
Derivative Transactions
Billions of yen

As of March 31, 2010

Current exposure method

Foreign Exchange-related Transactions
Interest rate-related Transactions
Gold-related Transactions
Equity-related Transactions
Transactions related to Precious Metals(Other than Gold)
Other Commodity-related Transactions
Credit Derivatives Transactions
Subtotal (A)Effect of Credit Equivalent Amounts Mitigation
by Close-out Netting Settlement Contracts (B)Subtotal (C)=(A)+(B)
Effect of Credit Risk Mitigation by Collateral (D)Total (C)+(D)As of March 31, 2009

Gross
Replacement
Cost

Gross
Add-onCreditEquivalent
AmountGross
Replacement
Cost

Gross
Add-onCreditEquivalent
Amount¥ 2,411.5
7,093.9
0.0
72.3¥ 1,907.0
2,233.9
0.0
75.7¥ 4,318.5
9,327.9
0.0
148.0¥ 3,019.6
15,127.0
0.1
148.6¥ 2,201.2
4,275.4
0.0
45.9¥ 5,220.9
19,402.5
0.1
194.5

0.0
117.8
120.7
9,816.4

0.0
95.3
643.3
4,955.5

0.1
213.2
764.1
14,772.0

0.4
203.2
499.0
18,998.2

0.2
130.7
1,101.0
7,754.80.7
334.0
1,600.1
26,753.0

/
/
/
/

/
/
/
/

9,552.2
5,219.8565.8¥ 4,654.0

/
/
/
/

/
/
/
/

18,408.6
8,344.3
1,030.6¥ 7,313.7

¥

¥

¥

¥

CreditEquivalent
AmountStandardized method

Total

¥

CreditEquivalent
Amount

288.3

¥

/

Note: As for the method of calculating credit equivalent amounts, the current exposure method is used in the fiscal year ended March 31, 2009
and the current exposure method and standardized method are used in the fiscal year ended March 31, 2010.

Long-Settlement Transactions
Billions of yen

2010

As of March 31,

Gross
Replacement
Cost

Long-Settlement Transactions

¥

13.6

2009
CreditEquivalent
AmountGross
Add-on

¥

2.2

¥

15.8

Gross
Replacement
Cost

¥

11.7

CreditEquivalent
AmountGross
Add-on¥0.5¥

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “effect of credit equivalent amounts mitigation by close-out netting settlement contracts” nor the “effect of credit risk
mitigation by collateral” applies to long-settlement transactions.

238

12.2

(b) Amounts of Credit Risk Mitigation by Type
Billions of yen

As of March 31,

2010

Financial Collateral
Other Collateral
Guarantees, Others
Total

¥

¥

62.0
62.5
13.1
137.8

2009

¥

¥

42.2
75.8
20.2
138.2

(c) Notional Amount of Credit Derivatives Subject to Credit Equivalent Amount Calculations
Billions of yen

2010
2009
Notional Amount Notional Amount

As of March 31,

Credit Derivatives Type:
Credit Default Swap

BoughtSold¥ 4,842.0
4,605.5¥ 7,779.4
6,962.8

Total Return Swap

Bought
Sold

—
—

—
—

BoughtSold¥ 4,842.0
4,605.5¥ 7,779.4
6,962.8

Total

Note: Credit derivatives used for credit risk mitigation are as follows:
Billions of yen

As of March 31,

Credit Derivatives Used for Credit Risk Mitigation

2010

¥

162.1

2009

¥

489.6

239

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Securitization Exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinated structure,” pursuant to the definitions set forth in the Consolidated Capital Adequacy Ratio Notice, etc.; provided that the transactions
do not include those which fall within specialized lending exposure.
Disclosed figures on securitization exposure in this section are based on transactions that are subject to the calculation of theamount of credit risk-weighted assets and do not include assets held in our (including our securities company subsidiaries) trading
account.
See pages 94 to 98 for the status of our group's securitization products (based on a definition thereof pursuant to our managerial accounting which differs from the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.), including
those held in our trading account and the status of our overseas ABCP programs, etc.

12. Summary of Securitization Exposure and Its Risk Management
We are associated with securitization transactions from various perspectives and positions. With respect to quantitative information related to (a) to (c) below, see “Quantitative disclosure items for securitization exposure” described beginning from the next
page that follows the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.

(a) Securitization of Our Assets (“Securitization as Originator”)
For the purposes of mitigating credit concentration risk and controlling economic capital, etc., we engage in securitization transactions (such as synthetic CDOs) of which underlying assets include mortgage loans, exposure to our corporate customers andsecuritization exposure. When conducting a securitization as originator, we consider various sides of such transaction, including
the effects of reduction of economic capital and improvement of return on risk as well as the practical effects of risk transfers,
and make a comprehensive judgment on structure and appropriateness of transaction.
(b) Securitization Program (ABCP/ABL) Sponsor
As a means of supporting our customers in their securitization of account receivables and trade notes, etc. held by our customers,
we retain securitization exposure by providing the asset-backed loan, or ABL, or providing an asset-backed commercial paper, or
ABCP, backup line, as sponsor. In such cases, in addition to gaining firm understanding of the actual risk profile through due diligence from the viewpoint of investors, we apply internal ratings and make evaluations by assessing such transactions and carefully managing the exposure together with other direct loan assets.
(c) Investment in Alternative Credit Risk Assets (“Securitization Transactions as Investor”)
We hold securitization instruments, such as ABS, CMBS, RMBS, and CDO, for the purpose of investing in alternative credit risk
assets that are different from conventional credit risk assets in order to diversify our investment portfolio. The Portfolio
Management Committee, etc., establish investment limits for securitization transactions as investor, and we maintain a stringent
structure for management of such transactions. In addition, we implement stress tests based on scenarios under the market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as a meansof financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets, and to disclose
appropriately the risks and terms of the program to the investing customer.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash advance)and provide interest rate swaps to securitization conduits.
We conduct credit risk measurements on all credit transactions, including securitization transactions, and carry out periodic
monitoring on investment balance and performance on securitization transactions, etc., and report results to our Portfolio
Management Committee, etc.

240

Status of Response to Basel II
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions and apply
the supervisory formula approach (“SF”) in other cases pursuant to Consolidated Capital Adequacy Ratio Notice. We deduct securitization exposure from our capital when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we calculate
based on risk weight according to ratings by eligible external credit assessment institutions and weighted average risk weight ofunderlying assets.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service (Moody's), Standard & Poor's (S&P) and Fitch Ratings, Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment institutions for eachtype of securitization exposure).

13. Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized, their evaluation and accounting treatment are pursuant to “Accounting Standards Relating to Financial Products” (Business AccountingStandards No.10), etc., and we conduct valuations based on market price or other reasonably calculated price (such as a pricequoted by a broker or an information vender) unless the valuation based on such information is recognized as extremely difficult
to conduct in practice. With respect to the credit investments in securitization products made as an alternative to loans by theEuropean, North American and other offices of domestic consolidated banking subsidiaries, given the current situation in which
the volume of actual transactions is extremely limited and there exists a considerable gap between the offers and bids of sellers
and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fairvalue, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value. In deriving reasonably calculated prices based on the reasonable estimates 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.

241

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

14. Quantitative Disclosure Items for Securitization Exposure

Securitization Exposure as Originator(a) Information by Type of Underlying Assets
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2010

Conventional Securitizations
Amount of Underlying Assets (a)Default Exposure¥

Residential
MortgageLoans— ¥ 233.6
—
4.1

Lease
Auto
Payment
Loans Receivables

¥

—
—

¥

Real
EstateCorporate

— ¥
—

1.1
1.0

Securitization
Products

¥

0.5
—

¥

Total

— ¥ 235.3—
5.1

Losses during the Fiscal Year

—

0.5

—

—

—

—

—

0.5

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

—
—

—
—

—
—

—
—

911.4
—

33.9
—

—
—

945.4
—

Losses during the Fiscal Year

—

—

—

—

—

—

—

—

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

333.7

13.9

—

347.7

— ¥ 912.5¥ 34.5

Total Amount of Underlying Assets (a)+(b)¥— ¥ 233.6

¥

—

¥

¥

— ¥1,180.7

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2010.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of the securitization exposure retained or purchased whose risk has been transferred (hedged) through securitization schemes, we havecategorized as securitization exposure as investor if the risk transfer (hedge) effects are not reflected in the calculation of capital adequacy
ratio, following the definition for classification of securitization exposure set forth in the Consolidated Capital Adequacy Ratio Notice, etc.
In making such categorization, classification based on type of underlying assets is conducted according to the principal underlying asset
type for each transaction, and transactions that are difficult to classify are included under “Others.”

242

Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2009

Conventional Securitizations
Amount of Underlying Assets (a)Default Exposure¥

Residential
MortgageLoans— ¥ 271.9
—
2.6

Lease
Auto
Payment
Loans Receivables

¥

—
—

¥

Real
EstateCorporate

— ¥
—

14.8
1.3

Securitization
Products

¥

5.4
—

¥

Total

— ¥ 292.3—
4.0

Losses during the Fiscal Year

—

0.5

—

—

0.1

—

—

0.6

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

—
—

—
—

—
—

—
—

832.6
—

20.2
—

—
—

852.9
—

Losses during the Fiscal Year

—

—

—

—

—

—

—

—

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

580.6

20.2

—

600.9

— ¥ 847.5¥ 25.7

Total Amount of Underlying Assets (a)+(b)¥— ¥ 271.9

¥

—

¥

¥

— ¥1,145.2

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2009.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of the securitization exposure retained or purchased whose risk has been transferred (hedged) through securitization schemes, we havecategorized as securitization exposure as investor if the risk transfer (hedge) effects are not reflected in the calculation of capital adequacy
ratio, following the definition for classification of securitization exposure set forth in the Consolidated Capital Adequacy Ratio Notice, etc.
In making such categorization, classification based on type of underlying assets is conducted according to the principal underlying asset
type for each transaction, and transactions that are difficult to classify are included under “Others.”

243

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2010

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

¥

—
—
—
—
—
—
—

—

¥

—

¥ 39.1CreditCards

Residential
Mortgage
Loans

Deduction from Capital
Total

Residential
Mortgage
Loans

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
39.1
—
—

¥

—
—
—
—
—
—

¥

—

Real
EstateCorporate

¥

—
—
—
—
—
—
—

1.8

5.5

¥

—

¥ 913.2¥ 35.5—¥ 863.4
—
—
—
15.3
32.7

Securitization
Products

¥

—
25.3
3.0
1.5
—
—

¥

Total

— ¥
—
—
—
—
—

¥

863.4
25.3
3.0
40.6
15.3
32.7

—

7.3

— ¥

987.8

Required
Capital

¥

5.3
0.7
0.1
3.6
0.1
1.1

¥

11.9

0.6

Billions of yen

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%¥

Deduction from Capital
Total

¥

—
—
—
—
—
—

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
41.2
—
—

—

0.0

—

¥ 41.3

¥

—
—
—
—
—
—

¥

—
¥

—

¥

—
—
—
—
—
—

Real
EstateCorporate¥ 785.1
9.6
—
—
17.8
17.5

Securitization
Products

¥

—
14.1
1.5
—
—
3.0

—

5.3

3.0

—

¥ 835.5¥ 21.8

¥

¥

Total

— ¥
—
—
—
—
—

785.1
23.8
1.5
41.2
17.8
20.5

—

8.3

— ¥

898.6

Required
Capital

¥

6.1
0.7
0.0
3.4
0.0
2.0

¥

16.1

3.4

Capital Increase Due to Securitization Transactions
Billions of yen

CreditCards

As of March 31, 2010

Capital Increase due toSecuritization Transactions¥—

Residential
Mortgage
Loans

¥

5.2

Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

Real
EstateCorporate¥—

Securitization
Products

¥

— ¥

—

Total

¥

5.2

Billions of yen

CreditCards

As of March 31, 2009

Capital Increase due toSecuritization Transactions¥—

Residential
Mortgage
Loans

¥

7.8

Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

Real
EstateCorporate¥—

Securitization
Products

¥

— ¥

—

Total

¥

7.8

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 ofSupplementary Provisions of the FSA Capital Adequacy Ratio Notice

244

2010

¥

—

2009

¥

—

Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL)(c) Information by Type of Underlying Assets
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2010

Amount of Underlying Assets
Default Exposure

¥

137.0
—

Estimated Loss Amount related toUnderlying Assets

0.8

Amount of Exposures Securitized
during the Fiscal Year¥ 1,566.4

Residential
MortgageLoans¥— ¥ 122.4 ¥
—
—
—

¥

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables

2.8

284.2 ¥
0.4

454.3
9.8

1.8

11.3

— ¥ 998.9 ¥ 3,818.3 ¥ 2,500.3

Real
Estate¥——Others

¥

—
¥

—

Total

37.6 ¥ 1,035.7
0.0
10.3
0.2

17.1

¥ 399.8 ¥ 9,283.9

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2010.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2009

Amount of Underlying Assets
Default Exposure

¥

171.0
—

Estimated Loss Amount related toUnderlying Assets

4.2

Amount of Exposures Securitized
during the Fiscal Year¥ 1,083.4

Residential
MortgageLoans¥— ¥ 135.2 ¥
—
—
—

¥

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables

2.9

401.5 ¥
0.5

650.6
2.5

2.8

10.8

— ¥1,018.4 ¥ 2,696.8 ¥ 3,769.2

Real
Estate

¥

—
—
—

¥

—

Others¥Total

86.4 ¥ 1,444.9
0.0
3.1
3.1

24.0

¥ 638.9 ¥ 9,207.0

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2009.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.

245Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(d) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2010

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets¥ 161.5
2.3
—
—
—
—

Residential
Mortgage
Loans

¥

—
¥ 163.9

¥

18.6

—
—
—
—
—
—

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables¥ 74.3
—
43.5
—
—
—

¥ 282.5
5.7
5.0
—
—
—

¥ 401.4
29.9
1.7
1.2
2.9
—

—

—

—

—

—

¥ 117.9¥ 293.3¥ 437.3

—

—

9.3

37.4

Real
Estate

¥

—
—
—
—
—
—

¥

—

OthersTotal¥

53.3 ¥
—
—
—
—
—

¥

53.3 ¥ 1,065.8

—

973.3
38.0
50.3
1.2
2.9
—

—

—

30.2

Required
Capital

¥

6.2
0.9
2.8
0.1
0.6
—

¥

10.8

—

—

95.6

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
Billions of yen

CreditCards

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets¥ 143.3
30.0
11.4
0.7
—
—

Residential
Mortgage
Loans

¥

—
¥ 185.5
78.8

¥

—
—
—
—
—
—

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables¥ 97.8
—
—
30.4
—
—

¥ 384.9
4.4
7.8
—
—
—

¥ 559.0
17.4
0.5
1.4
22.5
—

—

—

—

—

—

¥ 128.2¥ 397.2¥ 601.0

—

—

21.6

56.0

Real
Estate

¥

—
—
—
—
—
—

¥

—

Others¥81.2 ¥ 1,266.3
2.2
54.1
8.4
28.3
—
32.5
—
22.5
—
—

¥

92.0 ¥ 1,404.0

—

—

Total

—

77.0

Required
Capital

¥

8.3
1.3
1.7
3.3
6.3
—

¥

21.0

—

—

233.4

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

246

2010

¥

—

2009

¥

—

Securitization Exposure as Investor(e) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2010

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
MortgageLoans¥ 36.5 ¥ 1,494.4
—
9.3
5.7
20.4
—
1.6
—
1.8
—
—
—

Lease
Auto
Payment
Loans Receivables¥ 203.3
0.8
0.2
—
—
—

¥ 180.7
2.0
0.7
—
1.0
—

CorporateReal
Estate¥ 248.8
42.8
13.4
1.1
1.8
—

¥ 277.0
204.6
29.1
0.6
5.8
—

7.5

—

0.6

16.2

32.1

¥ 42.3 ¥ 1,535.3¥ 204.5¥ 185.3¥ 324.5¥ 549.3

12.3
—

10.7
—

229.1
7.6

48.4
—

25.9
—

188.8
0.3

Total

Required
Capital¥ 119.6 ¥ 2,560.6
10.5
270.4
2.9
72.7
—
3.4
—
10.6
—
—

¥ 22.7
7.0
5.1
0.7
3.9
—

Others

65.3

49.5¥ 141.8 ¥ 2,983.3

8.7¥ 89.1

11.3
3.2

526.7
11.2

/
/

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥5.3 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥1.0 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is categorized as securitization exposure as originator.
6. Securitization exposure as investor includes ¥12.8 billion liquidity facilities that we provide to ABCP programs sponsored by othercompanies. Note that such transactions are not included in the amounts disclosed in pages 94 to 98.
7. We classify securitization products whose principal underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO) as“resecuritizations.”

247

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Billions of yen

CreditCards

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
MortgageLoans¥ 60.4 ¥ 1,347.2
—
14.1
5.9
21.3
—
0.9
—
1.3
—
—

Lease
Auto
Payment
Loans Receivables

CorporateReal
Estate¥ 329.6
—
0.1
—
—
—

¥ 295.1
2.7
0.9
—
—
—

¥ 299.0
38.7
11.6
0.9
2.3
—

¥ 576.2
150.8
17.8
—
0.2
—

3.9

—

—

13.7

28.5

¥ 66.4 ¥ 1,388.9¥ 329.7¥ 298.7¥ 366.4¥ 773.6

53.4
—

18.3
—

254.7
8.0

54.7
0.0

—

23.6
—

193.8
0.3

Total

Required
Capital¥ 135.0 ¥ 3,042.8
11.2
217.7
1.0
58.9
—
1.9
0.0
3.9
—
—

¥ 29.5
5.8
3.8
0.3
1.6
—

Others

8.1

54.3

37.9

¥ 155.6 ¥ 3,379.7¥ 79.2

16.9
3.1

615.8
11.5

/
/

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥6.5 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥0.8 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is categorized as securitization exposure as originator.
6. Securitization exposure as investor includes ¥45.4 billion liquidity facilities that we provide to ABCP programs sponsored by othercompanies. Note that such transactions are not included in the amounts disclosed in pages 94 to 98.
7. We classify securitization products whose principal underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO) as“resecuritizations.”

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

2010

¥

—

2009

¥

—

Note that, in addition to the above, within the provision of credit in the form of eligible servicer cash advance, set forth in Article
246 of the Notice, there was an undrawn portion to which no required capital is allocated.
The balances of such portion as of March 31, 2010 and 2009 were ¥40.8 billion and ¥28.3 billion, respectively.

248

Market Risk
See pages 67 to 72 for information regarding market risk.

Operational Risk
See pages 72 to 75 for information regarding operational risk.

Equity Exposure in Banking Book
15. 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 and pricefluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on a consolidated basis, and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices are valued
based on the average quoted market price over the month preceding the consolidated balance sheet date; other securities whichhave readily determinable fair values are valued at the quoted market price if available, or otherwise based on their reasonablevalue at the consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method); andother securities the fair values of which are extremely difficult to determine are stated at acquisition cost or amortized cost anddetermined by the moving average method.

16. Status of Equity Exposure in Banking Book(a) Amounts Stated in Consolidated Balance Sheet
Billions of yen

As of March 31,

2010
Consolidated Balance Sheet
Amount¥ 2,932.0
516.3¥ 3,448.3

Exposure of Listed Stock, etc.
Other Equity Exposure
Total

Fair Value

2009
Consolidated Balance Sheet
AmountFair Value¥ 2,932.0/¥ 2,625.2
461.3¥ 2,625.2/¥¥ 3,086.6¥//

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and Losses on Sales Related to Equity Exposure
Billions of yen

2010
For the Fiscal Years ended March 31,

Sale of Equity Exposure

Gains and Losses
on Sales

¥

87.5

2009

Gains on Sales Losses on Sales

¥

106.9

¥

19.3

Gains and Losses
on Sales¥

53.7

Gains on Sales Losses on Sales

¥

100.2

¥

46.5

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

249

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(c) Gains and Losses from Write-Offs Related to Equity Exposure
Billions of yen

2010
Gains and Losses from Write-offs

For the Fiscal Years ended March 31,

Write-offs of Equity Exposure¥

2009
Gains and Losses from Write-offs(53.5)¥ (482.1)

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 theConsolidated Statement of Income
Billions of yen

2010

As of March 31,

Equity exposure

Net Unrealized
Gains

¥

359.5

2009

Unrealized
Gains

Unrealized
LossesNet Unrealized
Gains

¥

¥ 208.5¥ (178.6)

568.0

Unrealized
Gains

¥

290.5

Unrealized
Losses¥469.2

Note: The above figures include only Japanese and foreign stocks.

(e) Unrealized Gains and Losses Not Recognized in the Consolidated Balance Sheet or in the Consolidated
Statement of Income
None as of March 31, 2010 and 2009.

(f) Equity Exposure by Portfolio Classification
Billions of yen

As of March 31,

PD/LGD Approach
Market-based Method (Simple Risk Weight Method)
Market-based Method (Internal Models Approach)Transitional Measure Applied
Total

250

2010

2009

¥ 1,022.2
292.9—
2,533.2

¥

817.4
332.0
—
2,389.5¥ 3,848.4¥ 3,538.9

Senior Executives

Mizuho Financial Group

Mizuho Corporate Bank

Board of Directors

Board of Directors

Takashi Tsukamoto*

Yasuhiro Sato*

President & CEO

President & CEO

Setsu Onishi*

Yutaka Miyamoto*

Deputy President

Deputy President

Shin Kuranaka*
Managing Director

Head of Internal Audit Group / Chief Auditor (CA)Hajime Saito*
Managing Director
Head of Risk Management Group, Head of Human
Resources Group, Head of Compliance Group /Chief Risk Officer (CRO) / Chief Human Resources
Officer (CHRO) / Chief Compliance Officer (CCO)

Hiroshi Motoyama*

Corporate Auditors
Takeshi Mitsuma
Corporate Auditor

Takuo Hirota
Corporate Auditor

Deputy President

Yukio Nozaki

Head of Internal Audit Group

Corporate Auditor

Mitsuhiro Nagahama*Toshiaki Hasegawa

Deputy President

Corporate Auditor

Tetsuo Hiramatsu*

Mizuho Securities

Takeo Nakano*Managing Director

Managing Director
Head of Financial Control and Accounting Group /Chief Financial Officer (CFO)

Chief Strategy Officer (CSO)
Chief Information Officer (CIO)
Chief Operations Officer (COO)

Satoru Nishibori

Tetsuya Kawagishi*

Director

Managing Director

Yasuhiro Sato

Head of Global Transaction Banking Unit
Head of Global Asset Management Unit

Keisuke Yokoo

Akihiko Nomiyama

Corporate Auditors

Fumio Kabashima*

Director

Hidemi Hiroi

Mitsuo Ohashi

Corporate Auditor

Director

Nobukatsu Funaki

Kanemitsu Anraku

Corporate Auditor

Director

Yukio Nozaki

Director

Corporate Auditors
Tsuneo Morita

Corporate Auditor

Toshiaki Hasegawa
Corporate Auditor

Corporate Auditor

Shuzo Haimoto

Executive Officers

Corporate Auditor

Keizo Ohashi

Yukio Nozaki

Managing Executive Officer

Corporate Auditor

Masahiro Seki
Corporate Auditor

Masami Ishizaka
Corporate Auditor

Executive Officers
Daisaku Abe

Head of Asia & Oceania

Shinya Wako
Managing Executive Officer

Akira Kawamura*
Deputy President

Hideo Abe*
Deputy President

Yutaka Endo*
Deputy President

Hidetake Nakamura*
Deputy President

Mizuho Trust & Banking
Board of Directors
Norimasa Kuroda
ChairmanPresident and CEO

Nobutake Nishijima*Head of International Banking Unit

Atsushi Narikawa
Managing Executive Officer

Masakane Koike

Satoru Nishibori*

Board of Directors
President & CEO

General Manager of Financial PlanningShusaku Tsuhara

Deputy PresidentManaging Executive Officer

Mizuho Bank

General Manager of Accounting

President

Takashi Nonaka*

Head of Strategic Planning Group, Head of IT,
Systems & Operations Group and General
Manager of Group Strategic Planning / Chief
Strategy Officer (CSO) / Chief Information Officer(CIO)

Executive Officer

ChairmanNobuhide Hayashi

Head of Europe, Middle East and Africa

Tatsuya Yamada

Takashi Kusama

Head of the Americas

Managing Executive Officer

Executive Officer

Board of Directors

Tetsuro Ueno*
Deputy President

Manabu Yoshidome*
Deputy President

Executive Officer

Tadayuki Hagiwara*

General Manager of Executive Secretariat

Managing Director

Hisashi Nakamura*Managing Director

Deputy President

Mitsuaki Tsuchiya*
Deputy President
Notes:1. * Indicates Directors concurrently serving as
Executive Officers.
2. Executive Officers, excluding the Directors
concurrently serving as Executive Officers andExecutive Officers responsible for global regional
operations and the head of the International
Banking Unit of Mizuho Corporate Bank, have notbeen listed.
3. Executive Officers, excluding Directors concurrently
serving as Executive Officers of Mizuho Bank, havenot been listed.
4. Members of the Board of Directors other than the
Chairman, President and the Deputy Presidents,
and the Corporate Auditors as well as the Executive
Officers of Mizuho Securities, have not been listed.
5. Members of the Board of Directors other than the
Chairman, President and CEO and the Deputy
Presidents, and the Corporate Auditors as well as
the Executive Officers of Mizuho Trust & Banking,have not been listed.

(As of July 21, 2010)251

Location of Overseas Offices(As of August 3, 2010)

Network of Mizuho Corporate Bank

Mizuho Corporate Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

Asia and Oceania

22nd Floor, International Business Building ofGugeng, No.81 Hongmei Area, Dalian Economic &Technological Development Area, Dalian,
Liaoning Province 116600,
The People's Republic of China
TEL 86-411-8793-5670

26th Floor, Citibank Tower, Valero Street corner
Villar Street, Salcedo Village, 1227 Makati City,
Metro Manila, Philippines
TEL 63-2-860-3550

Nanjing Representative Office

Singapore Branch

Room 801, Nanjing Grand Hotel,
208 Guangzhou Road, Nanjing,
Jiangsu Province 210024,
The People's Republic of China
TEL 86-25-8332-9379

168 Robinson Road, #13-00 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

Xiamen Representative Office

Kaohsiung Branch(Country/Region)
China

Mizuho Corporate 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 Corporate Bank (China), Ltd.
Beijing Branch
8th Floor, West Wing, World Financial Center,No.1 Dong San Huan Zhong Road,
Chaoyang District, Beijing 100020,
The People's Republic of China
TEL 86-10-6525-1888

Mizuho Corporate Bank (China), Ltd.
Dalian Branch
6th Floor, Senmao Building, Zhongshan Road 147,
Xigang District, Dalian, Liaoning Province 116011,
The People's Republic of China
TEL 86-411-8360-2543

Mizuho Corporate Bank (China), Ltd.
Guangzhou Branch
25th Floor, International Finance Place, No.8
Huaxia Road, Zhujiang New Town,
Tianhe District, Guangzhou,
Guangdong Province 510623,
The People's Republic of China
TEL 86-20-3815-0888

Mizuho Corporate 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 Corporate Bank (China), Ltd.
Shenzhen Branch
21st Floor, Shenzhen International Financial
Building, Jian She Lu, Luohu District, Shenzhen,
Guangdong Province 518001,
The People's Republic of China
TEL 86-755-8222-1918

Mizuho Corporate Bank (China), Ltd.
Tianjin Branch

Room 2102, The Bank Center, No.189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People's Republic of China
TEL 86-592-239-5571

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

Mizuho Capital Markets (HK) Limited
16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2537-3815

India

Mumbai Branch
Maker Chamber III, 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400021 India
TEL 91-22-2288-6638

New Delhi Branch
4th Floor, East Tower, Sood Tower, 25,
Barakhamba Road, New Delhi, 110001 India
TEL 91-11-3041-0900

Indonesia

P.T. Bank Mizuho Indonesia
Plaza Bll-Menara 2, 24th Floor, Jl. M. H. Thamrin
No.51, Jakarta 10350, Republic of Indonesia
TEL 62-21-392-5222

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

Seoul Branch

Mizuho Corporate Bank (China), Ltd.
Wuhan Branch

19th Floor, Seoul Finance Center, 84, Taepyungro
1-ka, Chung-ku, Seoul, Korea
TEL 822-3782-8500

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 Corporate Bank (China), Ltd.
Wuxi Branch
8th Floor, Wuxi Software Park, No.16
Changjiang Road, WND, Wuxi, Jiangsu Province
214028, The People's Republic of China
TEL 86-510-8522-3939

Korea

Philippines

Manila Branch

Singapore

Taiwan12th 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
18th Floor, TISCO Tower, 48 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0200

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

Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Mizuho Corporate Australia Ltd.
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Malaysia

Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka, 87000
Federal Territory of Labuan, Malaysia
TEL 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office
Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Kuala Lumpur Representative Office
Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6595

Europe and the Middle East(Country/Region)
AustriaMizuho Corporate Bank-BA
Investment Consulting GmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

BelgiumMizuho Corporate Bank Nederland N.V.
Brussels Branch
Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

252

France

U.A.E

U.S.A.

Paris Branch

Dubai Branch

Chicago Branch

Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

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

311 South Wacker Drive, Suite 2020,
Chicago, IL 60606-6620, USA
TEL 1-312-855-1111

Germany

Duesseldorf Branch
Koenigsallee 60 D, 40212 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

Italy

RussiaZAO Mizuho Corporate Bank
(Moscow)
37 Bolshaya Ordynka, Moscow, 119017,
Russian Federation
TEL 7-495-729-5858

Moscow Representative Office
Millennium House Business Center,
12, Trubnaya Street, Moscow 107045,
Russian Federation
TEL 7-495-787-2771

New York Branch
1251 Avenue of the Americas,
New York, NY 10020, USA
TEL 1-212-282-3000

Los Angeles Branch
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, USA
TEL 1-213-243-4500

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Milan Branch

Houston Representative Office

6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, TX 77056, USA
TEL 1-713-499-4800

Spain

Mizuho Corporate 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

Mizuho Corporate Bank Nederland N.V.
Apollolaan 171, 1077 AS Amsterdam,
The Netherlands
TEL 31-20-5734343

United Kingdom

London Branch
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7012-4000

River Plate House OfficeRiver Plate House, 7-11 Finsbury Circus,
London, EC2M 7DH, UK
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) LimitedRiver Plate House, 7-11 Finsbury Circus,
London, EC2M 7DH, UK
TEL 44-20-7972-9900

Mizuho Investment Management(UK) Ltd.
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7012-4300

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

Iran

Tehran Representative Office

The Americas(Country/Region)
BahamasMizuho Corporate Bank of California
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, USA
TEL 1-213-612-2700

Mizuho Corporate Bank (USA)Nassau Branch

Mizuho Corporate Bank of California
Silicon Valley Branch

SG Hambros Building West Bay Street
P.O. Box N-7788 Nassau, Bahamas

1731 Technology Drive, Suite 100, San Jose,CA 95110, USA
TEL 1-408-487-1788

BrazilSão Paulo Representative Office
Avenida Paulista, 1274-11, andar, Bela Vista,São Paulo, SP, CEP. 01310-925, Brazil
TEL 55-11-3251-4199

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada M5C 2W1
TEL 1-416-874-0222

Vancouver Office
Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Cayman Islands

Cayman Branch
c/o Close Bank (Cayman) Limited
P.O. Box 1034, Harbour Place, 4th Floor,
103 South Church Street
Grand Cayman KY 1-1102, Cayman Islands

MexicoMexico Representative Office
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

Mizuho Corporate Bank (USA)1251 Avenue of the Americas,
New York, NY 10020, USA
TEL 1-212-282-3030

Mizuho Corporate Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Mizuho Corporate Bank (USA)
Chicago Representative Office
311 South Wacker Drive, Suite 2020, Chicago,
IL 60606-6620, USA
TEL 1-312-855-1111

Mizuho Corporate Bank (USA)
Houston Representative Office5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, TX 77056, USA
TEL 1-713-499-4800

Mizuho Corporate Bank (USA)Los Angeles Representative Office
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Mizuho Alternative Investments, LLC
1114 Avenue of the Americas, 31st Floor,
New York, NY 10036, USA
TEL 1-212-282-3871

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York, NY 10018,
USA
TEL 1-212-547-1500

3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-8872-6593

253

Location of Overseas Offices

Mizuho Desk(Country/Region)
Malaysia

Malayan Banking Berhad (Maybank)
Menara Maybank, 100 Jalan Tun Perak,
50050 Kuala Lumpur, Malaysia
TEL 60-3-2031-2346

Austria

Raiffeisen Zentralbank Oesterreich 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 in regions where Mizuho does not possess
offices, we offer our customers financial services
through various institutions. (Transactions are
conducted directly between the customer and the
local financial institution.)

Network of Mizuho Securities

Network of Mizuho Trust & Banking

Beijing Representative OfficeMizuho Trust & Banking(Luxembourg) S.A.

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

Shanghai Representative OfficeMizuho Trust & Banking Co. (USA)24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-8000

135 W. 50th Street, 16th Floor, New York,NY 10020, USA
TEL 1-212-373-5900

Mizuho Investment Consulting(Shanghai) Co., Ltd.
24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-5888

Mizuho Securities Asia Limited
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
Unit No.94, 9th Floor, Free Press House,
215 Free Press Journal Marg, Nariman Point,
Mumbai, 400021, India
TEL 91-22-6121-7600

Mizuho Securities (Singapore) Pte. Ltd.
One Raffles Quay, North Tower Unit 32-02,
048583, Republic of Singapore
TEL 65-6603-5688

Mizuho Bank (Switzerland) Ltd
Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

Mizuho International plc
Bracken House, One Friday Street,
London EC4M 9JA, UK
TEL 44-20-7236-1090

Mizuho Saudi Arabia Company
North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
TEL 966-1-273-4111

Mizuho Securities USA Inc.
1251 Avenue of the Americas, 33rd Floor,
New York, NY 10020, USA
TEL 1-212-209-9300

254

1B, Parc d'Activité Syrdall, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-4216171

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 International Ltd
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-207-329-3777

DIAM U.S.A., Inc.
1133 Avenue of the Americas, 28th Floor,
New York, NY 10036, USA
TEL 1-212-350-7650

Investor Information

Date of Establishment(Eleventh Series Class XI Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

January 8, 2003

Paid-in Capital¥1,805,565 million

Issued Shares
16,445,839,690 shares
Common Stock: 15,494,397,690 shares
Preferred Stock:951,442,000 shares

Number of Shareholders
Common Stock:
Preferred Stock:693,5211,685

Major Shareholders(Common Stock)
Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)

802,874,300

5.18

The Master Trust Bank of Japan, Ltd.
(Trustee account)494,670,700

3.19

The Dai-ichi Mutual Life Insurance
Company

209,950,000

1.35

SSBT OD05 OMNIBUS CHINA TREATY
CLIENTS (Standing proxy agent:
The Hong Kong and Shanghai
Banking Corporation Limited)
171,659,887

1.10Japan Trustee Services Bank, Ltd.
(Trustee account 4)

160,916,100

1.03

Japan Trustee Services Bank, Ltd.
(Trustee account 9)152,184,100

0.98

Trust & Custody Services Bank, Ltd.
(Meiji Yasuda Life Insurance Company
Retirement Benefit Trust Accountre-entrusted by Mizuho Trust &Banking Co., Ltd.)
137,000,000

0.88

Nippon Life Insurance Company

132,630,760

0.85Japan Trustee Services Bank, Ltd.
(Trustee account 1)

125,199,500

0.80

STATE STREET BANK AND TRUSTCOMPANY 505225 (Standing proxyagent: Mizuho Corporate Bank, Ltd.)

120,268,116

0.77

Notes:1. Figures for the percentage of shares outstanding are rounded down to
the nearest second decimal place.
2. The percentages of shares outstanding of Common Stock are calculated by excluding the treasury stock (9,397,093 shares).
3. The Dai-ichi Mutual Life Insurance Company reorganized from amutual life insurance company to a joint stock corporation as of April
1, 2010 and changed its name to The Dai-ichi Life Insurance
Company, Limited on the same day.

UBS AG LONDON A/C IPB SEGREGATEDCLIENT ACCOUNT (Standing proxyagent: Citibank Japan Ltd.)
20,625,000

4.13

Sompo Japan Insurance Inc.

19,000,000

3.80

Marubeni Corporation

14,500,000

2.90

SHIMIZU CORPORATION

10,000,000

2.00Electric Power Development Co., Ltd.

10,000,000

2.00

The Tokyo Electric Power
Company, Incorporated

10,000,000

2.00

NIPPON EXPRESS CO., LTD.

10,000,000

2.00

Tokio Marine & Nichido Fire
Insurance Co., Ltd.

8,000,000

1.60Japan Airlines International Co., Ltd.

8,000,000

1.60

JFE Steel Corporation

6,000,000

1.20

Notes:1. Figures for the percentage of shares outstanding are rounded down to
the nearest second decimal place.
2. Percentages of shares outstanding of Preferred Stock are calculated by
excluding the treasury stock (415,471,000 shares). Furthermore, the415,471,000 shares of the treasury stock are not included in theabove list of major shareholders.

(Thirteenth Series Class XIII Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

NIPPON OIL FINANCE (Netherlands) B.V.
(Standing proxy agent: Mizuho
Corporate Bank, Ltd.)6,000,000

16.35

Shiseido Company, Limited

5,000,000

13.62

SHARP INTERNATIONAL FINANCE(U.K.) PLC (Standing proxy agent:Mizuho Corporate Bank, Ltd.)

5,000,000

13.62

SHARP FINANCE CORPORATION

5,000,000

13.62

NISSIN FOODS HOLDINGS CO., LTD.

3,000,000

8.17

OBAYASHI CORPORATION

2,000,000

5.45

YANMAR Co., Ltd.

2,000,000

5.45

KOSE Corporation

1,000,000

2.72

FUJI MEDIA HOLDINGS, INC.

1,000,000

2.72

KURABO INDUSTRIES LTD.

500,000

1.36

Notes:1. Figures for the percentage of shares outstanding are rounded down to
the nearest second decimal place.
2. There is no treasury stock pertaining to the Thirteenth Series Class XIII
Preferred Stock.
(As of March 31, 2010)255

Investor Information

Stock Listings(Common Stock)
Tokyo Stock Exchange
Osaka Securities Exchange(ADR)
New York Stock Exchange
ADR* Information

Accounting Auditors

Outline of Mizuho Financial Group's ADR

Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit
100 sharesFiscal Year
April 1 to March 31

1. NYSE ticker symbol :2. CUSIP :3. Conversion ratio :4. Depositary bank :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/
5. Local custodian bank : Mizuho Corporate Bank, Ltd.

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of theCompany shall be convened no later than 3 months fromthe last day of each business year and an extraordinary
general meeting of shareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting
rights appearing in writing or electronically in the registerof shareholders as of the end of March 31 of each year as
the shareholders who are entitled to exercise their rights atthe ordinary general meeting of shareholders for the relevant business year.
2. In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, by aresolution of the Board of Directors and upon giving aprior public notice thereof.

Dividends from Surplus Approved by Resolution of
Ordinary General Meeting of Shareholders
Dividends from the surplus approved by a resolution of an
ordinary general meeting of shareholders shall be distributed
to the shareholders or registered stock pledgees appearing
in writing or electronically in the register of shareholders asof the end of March 31 of each year.

Interim Dividends
The Company may, by a resolution of the Board of Directors,
distribute interim dividends provided for in Article 454,
Paragraph 5 of the Company Law of Japan to the shareholders or registered stock pledgees appearing in writing or electronically in the register of shareholders as of the end of
September 30 of each year.

256* ADRs are securities issued for the purpose of trading in the U.S. in place of
the underlying stock of foreign companies. As ADRs are registered with
the SEC as U.S. securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of U.S. companies. ADR is anacronym for American Depositary Receipts.

Disclosure Policy

Basic Principles
We aim to win the highest regard of our shareholders andthe market and to earn the trust of society as Japan's leading
comprehensive financial services group. For this reason, weplace one of the highest management priorities on continuing to disclose information to our customers, shareholders,and investors both in and outside Japan in a fair, timely andappropriate manner, in order that they may form proper
judgments and appraisals of the group. To achieve this aim,
we observe applicable domestic and international laws andregulations as well as stock exchange rules relating to corporate disclosure, and we establish and implement appropriate
Disclosure Controls and Procedures.

Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws andregulations as well as stock exchange rules and to implement fair, timely and appropriate corporate disclosure.
The Disclosure Controls and Procedures are the processcarried out by directors, officers and employees ofMizuho Financial Group and include internal controls
designed to provide reasonable assurance regarding thereliability of Financial Reporting and the Preparation of
Financial Statements. We have established the basic principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls
and Procedures that govern the management framework
for the entire Mizuho Financial Group including groupcompanies, and we endeavor to establish, implement andcontinuously improve our Disclosure Controls andProcedures. Our Disclosure Committee is the principal
management body that is responsible for discussing andexploring matters relating to Disclosure Controls andProcedures.
(2) Evaluation of Effectiveness of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly
by reviewing the contents of such documentation andtheir implementation. In addition, evaluation of the effectiveness and appropriateness of Disclosure Controls andProcedures is conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial
Professionals” to be observed by all directors and executive officers, as well as all managers and other employees
within Mizuho Financial Group who engage in financial
reporting, accounting or disclosure. We have also developed the “Internal Controls and Audit Hotline”, a systemdesigned for obtaining concerns regarding questionableaccounting or auditing matters from both inside and outside Mizuho Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international laws and regulations as well as stock exchange
rules, we follow the defined disclosure procedures such as
publishing such information in business reports (JigyoHokoku), annual securities reports (YukashokenHokokusho) and other disclosure publications, as well as
providing such information through the information distribution systems of domestic and international stock
exchanges and through press releases. We also endeavor
to disclose other information in a fair, timely and appropriate manner. When we disclose such information, webasically publish on our website the information we disclose. In addition, we endeavor to utilize the latest disclosure methods and tools to provide more fair andwidespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above,
and with due attention to two-way communication, we
endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition and othermatters. In this way, we aim to earn the trust of the market and obtain an appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations as well as
stock exchange rules, we endeavor to grasp properly thetypes of information desired by the market and to disclose useful and appropriate information voluntarily andproactively. Regarding disclosure of information we consider particularly important, we communicate such information on an ad hoc basis as and when necessary, even if
a press release has already been issued, through suchmeans as special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor
to limit carefully our explanations to matters already disclosed and facts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding
Mizuho Financial Group in the market due to the spreadof rumors or otherwise, we endeavor to investigate theircauses and correct such misconceptions promptly.

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Privacy Policy Regarding Customer Information

Mizuho Financial Group, Inc. (“MHFG”) hereby establishes
and announces the “Privacy Policy Regarding Customer
Information” applicable to Mizuho Financial Group which iscomposed of MHFG, its consolidated subsidiaries and affiliates (which are accounted for by the equity method) that arelisted in MHFG's Financial Reports.

Policy of Management
Mizuho Financial Group recognizes appropriate protection
and use of personal information to be important social
responsibilities, and makes every effort to appropriately protect and use personal information complying with the
Personal Data Protection Law in Japan, other related regulations and the internal rules of Mizuho Financial Group, including the “Privacy Policy Regarding Customer Information”
when Mizuho Financial Group conducts business.

Proper Acquisition

Management of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to
any third party sensitive information (e.g. political affiliation,
religion, participation in labor union, race, ethnic group, family origin, legal address on family registry and medical information) unless authorized by law or it is necessary to conductbusiness on condition that Mizuho Financial Group has customer consent.
Security Measures
Mizuho Financial Group will maintain and manage accurate
and up to date personal information, and prevent leakage of
information with rational security measures. Mizuho Financial
Group will properly supervise employees and parties
entrusted with handling personal information.

Continuous Improvement

Mizuho Financial Group will acquire personal informationthat is necessary to conduct its business by proper and lawfulmeans.

Mizuho Financial Group will continuously review this policy
according to the development of information technologies
and the changes in social demand, and improve the management of personal information.

Purpose of Use

Procedures to Request Disclosure

Mizuho Financial Group will specify the purpose of use of
personal information and will not use it beyond the specified
purpose. Furthermore, Mizuho Financial Group will not use
personal information beyond the purpose limited by related
regulations.
The purpose of use of personal information is set forththrough the web site or other measures provided by eachcompany of Mizuho Financial Group.

Mizuho Financial Group will endeavor to properly andpromptly cope with following requests from customers:• notification of the purpose of use• disclosure of personal data
• correction, addition and deletion of personal data that do
not reflect the facts• suspension of use and elimination of personal data• suspension of providing personal data to a third party

Limitation on Providing Personal Information to a
Third Party

Customer Request

Mizuho Financial Group will not provide personal information
to any third party in principle unless the individual concerned
has agreed to such use or it is authorized by law. However,Mizuho Financial Group may provide personal information to
relevant entities without customer consent in following
cases:• Mizuho Financial Group entrusts management of personal information that is necessary to achieve the purpose of use to a third party.
• Mizuho Financial Group is one of the parties in a consolidation transaction.
• Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.

Mizuho Financial Group will endeavor to cope with customer
requests for the management of personal information sincerely and promptly.

• Strengthening Information Security Management Systems
MHFG obtained certifications for the Information Security Management Systems of all divisions of the company under both the Conformity Assessment Scheme, “ISO/IEC27001:
2005,” the international standard, and “JIS Q 27001: 2006,” the domestic standard.
IS97580 / ISO IEC27001

258

Contact Information

Mizuho Financial Group, Inc.
Marunouchi 2-chome Building,
2-5-1, Marunouchi,
Chiyoda-ku, Tokyo, 100-8333
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp/english/

Mizuho Corporate Bank, Ltd.

•MHFG's “News Release E-mail Distribution
Service”

MHFG offers an e-mail service for notifying registered users the title and the URL page of thegroup's news releases when releases are placed on
the group's website.
If you wish to register for this service, please
access MHFG's website (http://www.mizuhofg.co.jp/english/), and click “News Release E-mailDistribution Service.”

1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.mizuhocbk.co.jp/english/

Mizuho Bank, Ltd.
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.mizuhobank.co.jp/english/

Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu,
Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
URL: http://www.mizuho-tb.co.jp/english/

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com/english/259