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Contact Information

Corporate 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 approximately 56,000 staff working in approximately 920 offices inside and outside Japan, and total
assets of over US$2.0 trillion (as of March 2012).

Mizuho Financial Group, Inc.

The group was created in September 2000 through the establishment of a holding company of 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 major group companies include Mizuho Corporate Bank (MHCB), Mizuho Bank (MHBK),
Mizuho Trust & Banking (MHTB), Mizuho Securities (MHSC) and Mizuho Investors Securities (MHIS).
MHCB and MHBK transformed into “substantive one bank” structure in April 2012 prior to the legal merger scheduled on July

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/

1, 2013 (the trade name after the legal merger: Mizuho Bank, Ltd.). MHSC and MHIS plan to merge on January 4, 2013 (thetrade name after the merger: Mizuho Securities Co., Ltd.).
*The mergers between MHCB and MHBK as well as between MHSC and MHIS are planned to be conducted on the assumption that filings will have been
made to, and permission obtained from, the relevant authorities in Japan and any foreign countries.

Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)
Millions of yen
2012

For the Fiscal Years ended March 31,

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

¥

2011

2,808,555
2,092,106
716,449484,519
152,760¥

Thousands of U.S. dollars
2012

2,777,034
2,141,608
635,425
413,228140,097$

34,192,304
25,470,008
8,722,296
5,898,705
1,859,756*Non-consolidated basis.

Millions of yen
2012

As of March 31,

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Net Assets¥ 165,360,501
51,392,878
63,800,509
90,636,656
6,869,295

2011

Thousands of U.S. dollars
2012¥ 160,812,006
44,782,067
62,777,757
88,884,158
6,623,999$ 2,013,154,392
625,674,198
776,728,868
1,103,441,156
83,629,112

2011

U.S. dollars
2012

Yen
For the Fiscal Years ended March 31,

2012

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

¥

20.62

¥

20.47

$

0.25

6.00

6.00

0.07

20.00
30.00

20.00
30.00

0.24
0.37

Mizuho Corporate Bank, Ltd.
1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.mizuhocbk.com/

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/*Non-consolidated basis.

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)

2012

2011

15.50%

15.30%

Mizuho Securities Co., Ltd.

Ratings
As of July 31, 2012

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+

—
A1
A1
A1
A2*
—

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.).

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/“News Release E-mail Distribution• MHFG's
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 placedon 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.”2012 Mizuho Financial Group Annual Review

Contents
page

2
4
6
8
10
13
14
28
29
30
32
33
34
40
61
62
65
67

A Message from the Group CEO
Profile of Mizuho Corporate Bank, Mizuho Bank, Mizuho Trust & Banking,Mizuho Securities and Mizuho Investors Securities
Summary of Financial Results for Fiscal 2011
Progress in Mizuho’s Transformation Program
Initiatives for Integrated Group Management
Integrated Group Management and Synergy Effects
Business Outline
Business Approaches
Approaches to Collaboration among Banking, Trust Banking and Securities Businesses
Initiatives to Support the Recovery from the Great East Japan Earthquake
Office Network
CSR Activities
Brand Strategy
Management Systems
Internal Control Systems
Senior Executives
Location of Overseas Offices
Investor Information
Disclosure Policy, Privacy Policy Regarding Customer Information
Financial Analysis [Under Japanese GAAP]
Financial Data of Mizuho Financial Group, Inc. [Under Japanese GAAP]
Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. andFour Subsidiaries [Under Japanese GAAP]
Status of Capital Adequacy

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; ourability to implement our Medium-term Management Policy, realize the synergy effects of the transformation into “one bank,” and implement
other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect ofchanges in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors,” and“Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission(“SEC”). In addition, information regarding market developments after March 31, 2012 and their effects on our financial condition and resultsof operations is included in the report on Form 6-K furnished to the SEC on July 31, 2012 containing financial information for the first quarterof 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.
The contents of this Annual Review were prepared prior to the announcement of our financial results for the first quarter of fiscal 2012.
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 rulesof the Tokyo Stock Exchange.

1

A Message from the Group CEO

Turning next to the recent economic environment,in the United States, gradual recovery in the economy
continues on the basis of positive trends in consumer
spending. However, the risk remains of a slackening in
the economy with rising oil prices and other factors. In
addition, there is uncertainty as to a sustained economic recovery with the government pressed to implement
a tight fiscal policy due to the constraints imposed by
the debt ceiling. In Europe, the economies of theregion have entered a slowdown phase, with the fiscal
problems experienced by certain countries impacting
the real economy. The Euro region's debt problems
are expected to be prolonged, and it is difficult to predict the effects on the global economy. In Asia,
although the region continues to maintain relatively
strong economic growth, its economies are slowing as
a whole due to the impact of the decline in exports
One year has passed since the Great East Japan

associated with the economic stagnation in Europe

Earthquake occurred. I would like to begin by express-

and other factors.

ing my deepest thanks once again to our customers

In Japan, the gradual economic recovery continues

and other members of the domestic and internationalowing to the demand for reconstruction from thecommunities for their support and warm words ofimpact of the Great East Japan Earthquake. Despite theencouragement following the disaster. We continue totemporary standstill in exports and production due todevote our entire group strengths to the recovery of

the impact of the floods in Thailand in early fall 2011,

victims, industries and economies that have suffered

there are visible signs of recovery. As for the futuredamage as a result of the disaster, as well as support

direction of the economy, while there are positive fac-

the revival of disaster-stricken areas and industries.

tors, such as the growing demand related to reconstruction efforts, there are also several causes for con-

I would also like to report on the progress of ourcern, such as rising oil prices, the downturn in over-Business Improvement Plans which were submitted inseas economies and electricity shortages in Japan.

June 2011, bearing in mind the computer system fail-

There is a risk that these factors may act as a drag onures our group experienced in March 2011. We haveeconomic growth.

implemented the plans right on schedule and developed countermeasures for our system functions,

Progress in “Mizuho's Transformation Program”

including the reorganization of large volume data pro-

Reviewing the initiatives that we took during the sec-

cessing capabilities. We have also improved ourond year of Mizuho's Transformation Program which

response mechanisms to deal with the occurrence of

was originally announced in May 2010, we believe wecrises and verified their effectiveness through training,

have made steady progress mainly in enhancing ourwhile improving our business administration, includ-“profitability” and “financial base” amid such a severe

ing implementation of Actions to Restore Customer

business environment. First, regarding our Program for

Confidence, which were announced in May 2011 andImproving Profitability, our consolidated net income for

conducted an overall risk evaluation of the system. We

fiscal 2011 amounted to ¥484.5 billion, which was 5%

will continue to be keenly aware of our public mission

above our plan. This was mainly due to favorable

as financial institutions that bear responsibilities for the

results coming from our international and market oper-

settlement system and take all necessary measures toations of our banking subsidiaries. Under our Program

ensure their stable operations.

for Enhancing the Financial Base, we made major
progress in strengthening the quality and quantity of2

capital. Our consolidated Tier 1 capital ratio was

new corporate structures, strive to facilitate the smooth

12.76% as of March 31, 2012, achieving our medium-

legal merger of the banks and realize the synergies

term target of a 12% level. We plan to make a cash

generated from the merger as soon as possible.

dividend payment of ¥6 per share of common stock for

We plan to conduct a merger of our two securities

fiscal 2012 as well as dividend payments on preferredcompanies in January 2013 and a merger between

stock as prescribed. We will continue to pay an interim

Mizuho Corporate Bank and Mizuho Bank in July. This

dividend of ¥3 per share of common stock. As regards

realignment will enable us to realize our One Bank and

our Program for Strengthening Front-Line Business

One Securities Company structure, which will further

Capabilities, we have implemented various measures,strengthen collaboration among banking, trust banking

including streamlining and rationalizing our corporate

and securities businesses of the group. Through thesemanagement functions and reforming the structure of

initiatives, we will provide an effective and multifac-

our IT costs. Furthermore, in view of recent changes in

eted range of financial services directly and speedily

the operating environment, we will continue to endeav-to our customers. At the same time, we aim to maxi-

or to increase management efficiency.

mize group profitability by enhancing further the inte-

Fiscal 2012, ending March 31, 2013, is the final year

grated group-wide business operations and optimiza-of our Transformation Program. We make our fullest

tion of management resources through strengthening

efforts to achieve the targeted ¥500.0 billion in consol-

group governance and improving group management

idated net income, and also sincerely tackle all theefficiency.

remaining challenges.
Mizuho is determined to make a fresh start by

Initiatives for Integrated Group Management

returning to the basics of our “customer first policy” as

In the last fiscal year, we set the course of our manage-

the core principle of our management. In order toment policy to establish a new corporate structure

become the most-trusted financial institution, serving

and strengthen corporate governance toward thesociety at large, the group will work on various issues“advanced and integrated group management.” Moreas one under our new sub-slogan—“One MIZUHO:

specifically, we have implemented a set of measures

Building the future with you.” Furthermore, we willwith the speed of action to maximize our differentiat-

endeavor to fulfill our social mission as a financial insti-

ing feature and our advantage as the only financial

tution, and, in the facilitation of financing, we will con-group in Japan with banks, trust banks and securities

tinue to devote our efforts to providing our customers

companies under one umbrella. These include turningwith a smooth supply of funds.

our trust banking and two securities subsidiaries into
our wholly-owned subsidiaries. We also signed a mem-

We sincerely appreciate your continuing support forthese endeavors.

orandum of understanding on the merger between
Mizuho Securities and Mizuho Investors Securities aswell as that on the merger between Mizuho Corporate

July 2012

Bank and Mizuho Bank.
Regarding the merger of Mizuho Corporate Bankand Mizuho Bank, which constitutes the core of ourestablishment of an “advanced and integrated group

Yasuhiro Satomanagement” structure, we implemented the “sub-President & CEO (Group CEO)stantive one bank” structure in April 2012, prior to theMizuho Financial Group, Inc.

effective date of the legal merger. Under this structure,
Mizuho Corporate Bank and Mizuho Bank will be managed as if they were “one bank,” and we will work tocreate corporate structures that respond to all theneeds of our customers more properly and flexibly than
before. Over the coming year, we will establish these

Note: The above contains statements that constitute forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. See the disclaimer atthe bottom of page 1 of this Annual Review for information
regarding factors that could cause actual results to differ fromthose in the forward-looking statements.

3

Profile of Mizuho Corporate Bank, Mizuho Bank, Mizuho Trust & Banking,Mizuho Corporate Bank
We are serving major corporations (such as those listed on the first section ofdomestic stock exchanges) and their group companies, financial institutions, public
sector entities, and Japanese and foreign companies overseas. Prior to conducting
a legal merger with Mizuho Bank in July 2013, we implemented the “substantive
one bank” structure in April 2012, offering services that mobilize capabilities of
the two banks.
We are collaborating with group companies to strengthen and combine comYasuhiro Sato
President & CEO
Mizuho Corporate Bank, Ltd.

mercial banking and traditional investment banking, including M&A advisory services, and the underwriting of bonds and equities, as well as sales and trading activities. This is enabling us to take our place as a “top corporate finance provider” andoffer optimal global financial solutions that meet the needs of our customers inJapan and overseas.

Our overseas strategy is to fully utilize our overseas network, which comprises 69 offices located in 32 countries
and regions, and leverage business alliances with financial institutions around the globe, to meet the needs not onlyof Japanese corporations but also non-Japanese companies in a timely manner. Especially in Asia, we now have 34
offices outside Japan, and we will continue to strengthen our network in the years ahead.
By accurately grasping various structural changes and drawing on our knowledge and understanding of industries
and all of our capabilities, we aim to be a financial institution that works with our customers in implementing theirstrategies as the “best possible partner.” At the same time, we will fulfill our social mission as a supplier of global
industrial finance to facilitate the development of corporations and industries.

Mizuho Bank
Working in cooperation with group companies, we offer comprehensive financial
services primarily to SMEs and middle-market corporations and their owners, as wellas individuals. Prior to conducting a legal merger with Mizuho Corporate Bank in July
2013, we implemented the “substantive one bank” structure in April 2012, offering
services that mobilize capabilities of the two banks.
To satisfy individual customers throughout their lives, we apply a consulting-style
approach in offering membership-based services, asset management products, loan
Takashi Tsukamoto
President & CEO
Mizuho Bank, Ltd.

products, and other services appropriate for each customer's life stage and needs. In
addition, through the establishment of joint branches with Mizuho Trust & Banking
and Mizuho Investors Securities, we are offering diversified services while enhancing
customer convenience.
At the same time, we will develop various types of products to meet a broad

range of corporate customers' financing needs by leveraging collaborations among group companies in trust banking, securities and other businesses. We will also actively engage in consulting on business matching, M&A, businessreorganization and inheritance, overseas business development, and other core management matters.
In addition, we will continue to provide support with our group companies to assist recovery from the Great East
Japan Earthquake from all aspects.
Reflecting on the inconvenience regrettably caused to all of our customers by our computer system failures inMarch 2011, we have determined to firmly re-enforce our “customer first policy” throughout our business andfocus on relentlessly pursuing innovative change and speedy results, aiming to become the “most trusted financial
institution.”4

Mizuho Securities and Mizuho Investors Securities

Mizuho Trust & Banking
We are focusing our energies on providing high-quality trust products and services
that accurately meet our customers' needs by promoting seamless business operations with Mizuho Corporate Bank and Mizuho Bank.
For individual customers, we offer asset management services including money
trusts and other products, testamentary trusts and other asset inheritance services,and real estate and other wealth management services. For corporate customers, weoffer optimal solutions based on our consulting functions by leveraging our strengths
Takashi Nonaka

in asset management and custody, pension, real estate, asset securitization, stock

President & CEO
Mizuho Trust & Banking
Co., Ltd.

transfer agency services, and other asset management businesses.
We will continue to focus our resources on unique fields where we can exercise
our strength in trusts and develop frontier businesses.

Mizuho Securities
Striving to be “the most reliable investment bank with global reach,” we are working in close collaboration with other group companies to provide optimal solutions
that meet the wide-ranging needs of domestic and overseas customers, including
institutional investors, corporations, financial institutions, public-sector entities andindividuals.
In our investment banking business, we offer equities, bond and other securities
underwriting operations, support for IPOs, advisory services for various types ofHiroshi Motoyama
President
Mizuho Securities Co., Ltd.

financial matters and capital management, M&A advisory, structured finance, andother services. In our products provision and sales business, we engage in sales andtrading operations of equities, bonds and other securities, and offer investment
products and research.
Furthermore, we plan to conduct a merger with Mizuho Investors Securities inJanuary 2013 and will offer optimal services to our customers by further strengthening our sales channels.

Mizuho Investors Securities
Aiming to be “the securities company that customers trust most to be close tothem,” we are collaborating with other group companies to respond to our customers' broad array of needs.
For individual customers, we offer asset and investment management services in atimely and appropriate manner through such measures as expanding joint brancheswith Mizuho Bank and Mizuho Trust & Banking. Meanwhile, for corporate customers, we offer multidimensional services, including the proposal of asset manageKatsuyoshi Ejima

ment approaches, IPO support and advice on capital management, and consulting

President
Mizuho Investors Securities
Co., Ltd.

services such as M&A advisory and IR support.
Furthermore, we plan to conduct a merger with Mizuho Securities in January 2013
and will offer a wider range of investment products and services to our customers.
July 20125

Summary of Financial Results for Fiscal 2011

Summary of Income Analysis

Consolidated net income of Mizuho Securities

Consolidated gross profits for fiscal 2011 decreased bydecreased by ¥66.3 billion, turning into a loss of ¥95.6¥22.2 billion on a year-on-year basis to ¥2,003.0 billion.

billion on a year-on-year basis, due to a decrease in net

Gross profits of Mizuho Corporate Bank, Mizuho

operating revenues amid a severe market environment

Bank and Mizuho Trust & Banking (the Three Banks)

as well as the recording of special retirement benefits,decreased by ¥3.6 billion on a year-on-year basis toa reversal of deferred tax assets, and others.

¥1,607.5 billion. This was mainly due to a decrease of

Credit-related costs of the Three Banks amounted¥5.5 billion in income from Customer Groups including

to a net reversal of ¥24.7 billion, primarily due todomestic business, despite an increase in that from

improved obligor classifications achieved through ouroverseas business, particularly from Asia. Income frombusiness revitalization support to corporate customers,

Trading & Others exceeded that for the previous fiscal

and other factors. Consolidated credit-related costs

year through flexible and timely operations interpreting

also amounted to a net reversal of ¥27.7 billion, a year-

market trends properly.

on-year improvement of ¥44.3 billion.

General & administrative (G&A) expenses of the Three

Net losses related to stocks of the Three Banks

Banks increased by ¥10.5 billion on a year-on-year basis

amounted to ¥50.3 billion, mainly due to recordingto ¥879.3 billion mainly due to an increase in expenses

impairment losses for certain stocks reflecting a decline

associated with employee retirement benefits, partly

in stock prices.

offset by our continued efforts in overall cost reduction.

Due to factors such as those mentioned above, theAggregated consolidated gross profits (net operating¥77.4 billion impact of turning the three listed sub-revenues) of our two securities subsidiaries (Mizuho

sidiaries, Mizuho Trust & Banking, Mizuho Securities

Securities and Mizuho Investors Securities) decreased byand Mizuho Investors Securities, into wholly-owned¥31.9 billion to ¥213.8 billion on a year-on-year basis.

subsidiaries, the ¥-34.6 billion impact of the tax rate

As a result, consolidated net business profits* 1

amendment following corporate tax reform and theamounted to ¥719.1 billion, a year-on-year decrease of¥-20.8 billion impact from Jusen (housing loan compa-¥22.6 billion.

nies), consolidated net income amounted to ¥484.5*1. Consolidated net business profits = consolidated gross profits –G&A expenses (excluding non-recurring losses) + equity inincome from investments in affiliates and certain other consolidation adjustmentsbillion, a year-on-year increase of ¥71.2 billion.

• Net Interest Income
The average loan balance of the Three Banks for thesecond half of fiscal 2011 increased by ¥3.0 trillion to

Loan Balance
Average loan balance (*2)(Loan balance: trillions of ¥)100

Loan-and-deposit rate margin (*3)

Loan balance as of the period end (*2)(Loan-and-deposit rate margin: %)
1.50

80

1.40

60

1.30

40

1.20

0

Fiscal 2007
(first half)

Average¥65.1 tn.
loan balance
Loan balance asof the period end ¥64.9 tn.

Loan-anddeposit rate
margin (*4)

Fiscal 2007(second half)

Fiscal 2008
(first half)

Fiscal 2008
(second half)

Fiscal 2009
(first half)

Fiscal 2009(second half)

Fiscal 2010
(first half)

Fiscal 2010(second half)

Fiscal 2011
(first half)

Fiscal 2011(second half)¥64.3 tn.

¥65.8 tn.

¥68.0 tn.

¥66.7 tn.

¥63.0 tn.

¥61.0 tn.

¥61.1 tn.

¥60.8 tn.

¥63.8 tn.
¥63.1 tn.

¥64.6 tn.

¥66.6 tn.

¥69.7 tn.

¥63.5 tn.

¥61.5 tn.

¥61.3 tn.

¥62.2 tn.

¥60.8 tn.

1.44%

1.47%

1.44%

1.46%

1.41%

1.39%

1.36%

1.36%

1.32%

1.30%

1Q 1.44%
2Q 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%

1Q 1.38%
2Q 1.35%

3Q 1.35%
4Q 1.37%

1Q 1.32%
2Q 1.31%

3Q 1.30%
4Q 1.30%

0*2. Aggregate of the Three Banks, excluding Trust Account and loans to Mizuho Financial Group. Balance for overseas branches includes foreignexchange translation impact.
*3. Aggregate figures of domestic operations of Mizuho Corporate Bank and Mizuho Bank and after excluding loans to Mizuho Financial Group,
Deposit Insurance Corporation of Japan and the Japanese Government.
*4. 1Q: the first quarter, 2Q: the second quarter, 3Q: the third quarter, 4Q: the fourth quarter6¥63.8 trillion compared with that for the first half ofunder the Financial Reconstruction Law decreased byfiscal 2011. The period end loan balance as of March¥42.3 billion to ¥1,165.6 billion on a year-on-year

31, 2012 increased by ¥2.2 trillion to ¥63.1 trillion

basis. NPL ratio was 1.63%, a year-on-year improve-compared with that as of September 30, 2011. Thisment of 0.09%.

resulted primarily from an increase in overseas loans,

Net deferred tax assets (consolidated) decreased byparticularly in Asia, loans to large corporate customers¥130.4 billion on a year-on-year basis to ¥340.7 billion,

and those to the Japanese Government.

and the ratio to Tier 1 capital was 5.3%.

The domestic loan-and-deposit rate margin of

Unrealized gains on other securities (consolidated)*6

Mizuho Corporate Bank and Mizuho Bank for the

improved by ¥90.5 billion on a year-on-year basis tofourth quarter of fiscal 2011 (three-month period from¥91.2 billion, mainly due to the impact of a decline in

January to March 2012) was 1.30%, remaining flat

interest rates.

from that for the third quarter (three-month period*6. The base amount to be recorded directly to net assets after tax
and other necessary adjustments.

from October to December 2011).

• Non-interest Income
Non-interest income from Customer Groups of theDisciplined Capital Management

Three Banks (on a managerial accounting basis) for fis-

We have been implementing “disciplined capital man-cal 2011 increased by ¥12.8 billion from that for fiscal

agement” by pursuing the optimal balance between

2010 to ¥408.6 billion. This was mainly due to an“strengthening of stable capital base” and “steadyincrease in non-interest income from overseas business,

returns to shareholders.”

income associated with investment trusts and individual

Regarding the new capital regulations, we aim toannuities from individual customers, solution-related

increase our common equity capital ratio*7 as of theincome from corporate customers, and income fromend of fiscal 2012, when the new capital regulations

foreign exchange business.

are scheduled to be implemented, to the mid-8% level,

Non-interest Income from Customer Groups(the Three Banks)(billions of ¥)500

and to accumulate a sufficient level of common equity
second half
first half

capital, giving due regard to the timeline of the phasein implementation through the end of fiscal 2018.
Specifically, we will strive to accumulate our capital

400

steadily and to strengthen our financial base further,

300

mainly by accumulating retained earnings and improv-

200

ing asset efficiency through our various initiatives, such100

as the steady implementation of Mizuho's Transforma-

0tion Program and the realization in advance of the synFiscal 2009

Fiscal 2010

Fiscal 2011

Non-interest
Incomeergy effects of the integrated group-wide business oper-¥365.5 bn.

¥395.8 bn. (*5)¥408.6 bn.(*5)

first halfsecond half¥163.2 bn.
¥202.3 bn.

¥189.6 bn.
¥206.2 bn.

¥192.2 bn.
¥216.4 bn.

ations including the transformation into “one bank.”*5. Certain items in expenses regarding stock transfer agency business and pension management business, which had beenrecorded as G&A expenses until the previous period, have been
included in non-interest income beginning with this period, andreclassification of the figures for fiscal 2010 has been madeaccordingly. The impact of the reclassification is ¥-4.4 billion for
the first half of fiscal 2010, ¥-3.8 billion for the second half of fiscal 2010, ¥-4.0 billion for the first half of fiscal 2011 and ¥-3.7
billion for the second half of fiscal 2011, respectively.

Accordingly, we believe we will be able to sufficiently meet the new capital regulations including theframework to identify G-SIFIs.
*7. Our calculation of our common equity capital ratio includes theoutstanding balance of the Eleventh Series Class XI Preferred
Stock that will be mandatorily convertible into common stock inJuly 2016. Our common equity capital ratio is the estimated figure that Mizuho Financial Group calculates based on the publiclyavailable materials that have been issued to date.

(Note)

Financial Soundness

The outstanding balance of the Eleventh Series Class XIConsolidated capital adequacy ratio as of March 31,

Preferred Stock as of March 31, 2012 (excluding treas-

2012 was 15.50%, an improvement of 0.20% from thatury stock) was ¥373.6 billion (60.4% of the initial

as of March 31, 2011.

amount issued of ¥943.7 billion had already been con-

The balance of disclosed claims of the Three Banksverted into common stock as of such date).

7

Progress in Mizuho’s Transformation Program

Mizuho's Transformation Program(1)
Improving
Profitability

Mizuho's
Transformation
Program(2)
Enhancing
Financial Base

(3)
Strengthening Front-LineBusiness Capabilities

Fiscal 2012(Targets)*1

Fiscal 2011(Actual)*1

Consolidated net business profits*2¥900 billion¥719.1 billion

Consolidated net income¥500 billion¥484.5 billion

Lower 50% level

54.7%

ROE*4

10% level

10.4%

Tier 1 capital ratio*5

12% level

12.76%

Prime capital ratio*6

8% or above

8.97%

Reduce by ¥1 trillion

Reduced by ¥204.5 billion

Expense ratio*3

Stock portfolio (From Mar. 2010)*1. Figures above are on a consolidated basis, except for expense ratio and stock portfolio which are on the Three Banks basis*2. Consolidated gross profits – General and administrative (G&A) expenses (excluding non-recurring losses) + equity in income from investments inaffiliates and certain other consolidation adjustments*3. G&A expenses (excluding non-recurring losses) / gross profits (the Three Banks)
net income (adjusted to annual basis)x 100*4. ROE=((total shareholders' equity + total accumulated other comprehensive income)<at the beginning of the calculated period> +(total shareholders' equity + total accumulated other comprehensive income)<at the end of the calculated period>) / 2*5. Basel II basis*6. Prime capital = Tier 1 capital – preferred debt securities – preferred stock (excluding mandatory convertible preferred stock)

Improving Profitability

China UnionPay in November 2011.

Business Strategy in Focused Business Areas
Asia Region• Tokyo Metropolitan Area and Large•

Making the most of our advantages in terms of solid
customer base, global network of offices and businessalliances, advanced solution delivery capabilities, andrich public-private partnership know-how, we are
actively moving ahead with business development initiatives in Asia, a focused business area. MHCB has
been developing and promoting leading-edge financial
solutions, starting with its conducting of bond investments in China's Interbank Bond Market, as the firstJapanese bank to do so. MHCB continues to expand its
office network, with the opening of Mizuho Corporate
Bank (Malaysia) and the establishment of the Yangon
Representative Office in Myanmar. In addition to ourorganic business approach, we apply flexible nonorganic business approaches, including strategic
alliances and investment. MHCB entered into a capitaland business alliance with the Joint Stock Commercial
Bank for Foreign Trade of Vietnam (Vietcombank), which
is one of the largest national commercial banks in
Vietnam, in September 2011. Meanwhile, in December
2011, MHBK turned a local company with businesscentered on auto loan and leasing in Indonesia into a
consolidated subsidiary, Mizuho Balimor Finance,
allowing Mizuho to enter into the retail finance business in Indonesia. MHBK, together with Credit Saisonand UC Card, also entered a basic agreement for a8business partnership in the area of retail business with

Corporate Customers
In the Tokyo metropolitan area, MHBK offers diversified products and services to meet the various stages
and circumstances of the lives of individual customers.
To cater to their needs, MHBK is also endeavoring to
expand its product lineup in such areas as investment
trusts and insurance as well as strengthen its loan consulting functions. For SME and middle-market corporate customers, we are actively working to meet theirfunding demands and support their efforts for overseas
expansion, particularly in Asia, by collaborating with
Mizuho's overseas offices. In our business with large
corporate customers, to respond to their diversified,sophisticated and globalized financial needs and business strategies, we offer the best solutions globally, by
combining and strengthening our commercial banking
operations with our M&A advisory services and otheraspects of our traditional investment banking business.
In our approach to domestic syndicated loan business,
we put a great deal of effort into employing a wideand various sorts of financings, such as financing for
general purpose, M&A finance, project finance andreal-estate finance. As a result, we maintained ourdominant presence in the domestic market.
Asset Management BusinessIn our asset management business, we are enhancing
business promotion that integrates group capabilities
in the area of pensions, and are moving ahead with•efforts to strengthen collaboration between our bank-and the realization in advance of the synergy effects ofing and securities arms in retail business. Eurekahedge,

the integrated group-wide business operations includ-

which became our subsidiary in March 2011, launched

ing the transformation into “one bank.” Accordingly,

the Mizuho-Eurekahedge Index, a hedge fund index, to

we believe we will be able to sufficiently meet the new

respond to the needs of investors including pension

capital regulations including the framework to identify

funds and financial institutions. And through our strate-

G-SIFIs.

gic cooperation with BlackRock, which we signed abusiness alliance agreement with and acquired a por-

Improvement of the Asset Portfolio

tion of the shares of common stock in, we have started

We strategically reallocated risk-weighted assets as weto introduce and sell investment products for individu-

worked toward the “improvement of asset efficiency”

als and pension funds.

and “further strengthening of risk management.” In• Collaboration among Banking, Trust Banking

parallel with these activities, at the end of fiscal 2011,

and Securities Functions
To provide more extensive and comprehensive financial
services to customers, Mizuho strives to enhance thecollaboration among group companies. Collaboratingwith MHBK and other group companies, MHTB isdeveloping Trust Lounges which specialize in consultations, to provide unique trust services including asset
inheritance and real estate-related business, and MHIS
continues to set up Planet Booths, which are consulting
booths for customers with securities transaction needs,
to promote the establishment of joint branches of banking, trust banking and securities functions. As of March
31, 2012, the number of Trust Lounges and Planet
Booths are 13 and 164, respectively. In January 2012,
MHBK and MHTB, in an effort to strengthen collaboration in the retail business, launched the Mizuho GroupAccount Service, which allows customers to use MHTB's
products and services with an MHBK deposit account. In
addition, MHBK increased the number of branches that
handle MHTB's Chochiku no Tatsujin and the productbecame available at all MHBK branches in August 2012.

we reduced our stock portfolio by ¥204.5 billion fromthe end of fiscal 2009.

Strengthening Front-Line Business Capabilities
We have promoted various initiatives, including downsizing and rationalization of corporate management
functions, reforming the structure of IT cost and consolidating operation. With regard to the redeploymentof approximately 1,000 personnel to the marketing
frontline, 814 people were transferred by the end of
fiscal 2011.

Further Acceleration of Mizuho's
Transformation Program and Establishmentof Advanced Group Management Structure
As mentioned above, we have been advancing thethree initiatives we set forth in the Transformation
Program step by step; Improving Profitability,
Strengthening of the Capital Base, Strengthening
Front-Line Business Capabilities. Along these lines, we
decided to adopt “advanced and integrated groupmanagement (transformation into ‘one bank etc.’).” As

Enhancing the Financial Base

the only financial group in Japan with banks, trust

Strengthening of the Capital Basebanks and securities companies under one umbrella,

We have been implementing “disciplined capital man-we aim to establish a new corporate structure and cor-agement” by pursuing the optimal balance between

porate governance structure, with which we will be“strengthening of a stable capital base” and “steadyable to utilize those functions most effectively andreturns to shareholders.” Due mainly to recording athereby improve further customer convenience.

consolidated net income of ¥484.5 billion in fiscal
2011, our Tier 1 capital ratio was 12.76% and prime
capital ratio was 8.97% at the end of March 2012. We
will strive to steadily accumulate capital and to further
strengthen our financial base, mainly by accumulating
retained earnings and improving asset efficiency
through our various initiatives, such as the steady
implementation of Mizuho's Transformation Program

Notes:1. MHFG: Mizuho Financial Group, MHCB: Mizuho Corporate
Bank, MHBK: Mizuho Bank, MHTB: Mizuho Trust & Banking,
MHSC: Mizuho Securities, MHIS: Mizuho Investors Securities
2. The above contains statements that constitute forwardlooking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. See the disclaimer at the bottom of page 1 of this Annual Review for
information regarding factors that could cause actual results
to differ from those in the forward-looking statements.

9

Initiatives for Integrated
Group Management

Integrated Group Management and Synergy Effects

Advanced Group Management Structure

and any foreign countries (the trade name after the

We aim to establish a new corporate structure andmerger: Mizuho Bank, Ltd.). Through the merger, whichstrengthen corporate governance, with which we will be

constitutes the core of the establishment of the advanced

able to utilize the following functions most effectively asgroup management structure, we will provide an effec-

the only financial group in Japan with banks, trust banks

tive and multifaceted range of financial services directly

and securities companies under one umbrella, and there-

and speedily to our customers, by utilizing the current

by to improve further customer convenience.

“strengths” and “advantages” of the two banks and by

In September 2011, we turned MHTB, MHSC andfurther strengthening collaboration among banking, trust

MHIS into our wholly-owned subsidiaries to strengthenbanking and securities businesses of the group. At the

our “group capabilities.” We have also determined tosame time, we aim to enhance further the consolidation

conduct a merger between MHSC and MHIS on Januaryof group-wide business operations and optimization of

4, 2013, on the assumption that filings will have been

management resources, such as workforce and branchmade to, and permission obtained from, the relevant

network, by strengthening group governance andauthorities in Japan and any foreign countries (the trade

improving group management efficiency, leading to thename after the merger: Mizuho Securities Co., Ltd.).

maximization of group profitability.

Furthermore, we have determined to conduct a merger between MHCB and MHBK on July 1, 2013, on theBusiness Strategies

assumption that filings will have been made to, and per-In order to realize the synergy effects of the merger ofmission obtained from, the relevant authorities in JapanMHCB and MHBK in advance of its consummation, we
will invigorate business activity through coordinatedNotes:1. MHFG: Mizuho Financial Group, MHCB: Mizuho Corporate
Bank, MHBK: Mizuho Bank, MHTB: Mizuho Trust & Banking,
MHSC: Mizuho Securities, MHIS: Mizuho Investors Securities
2. The above contains statements that constitute forwardlooking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. See the disclaimer at the bottom of page 1 of this Annual Review for
information regarding factors that could cause actual results
to differ from those in the forward-looking statements.

approach to customers and develop financial know-how
within the group.
Under the relationship management units, the transformation into “one bank” will remove the barriers
between MHCB and MHBK. Accordingly, by taking an
integrated approach to Mizuho's customers and thoroughly developing the financial know-how and industrial

Apr.
2012

Further enhancement of“group collective capabilities”

Steady progress*Memorandum of Understanding

10

Consolidationof group-widebusiness
operations

Units across MHCB and MHBK according tocustomer segments and products
Coordinated customer approach amongbanking, trust and securities functions

Improve group management efficiency
and strengthen corporate governance
Optimizationof management
resources

Unification of Corporate Planning andManagement Units
Optimization of management resources suchas workforce and branch network

Pursue maximum group profitability
Synergy effects ¥100 billion

Realize the synergies of “one bank” at the earliest stage as possible

Legal Merger between MHCB and MHBKMOU onmerger between MHCB and MHBK
Nov.
2011

Enhance customer convenience

Merger between MHSC and MHIS

Turned MHTB, MHSC andMHIS into wholly-owned subsidiaries
Sep.
2011

Jul.
2013

Towards “advanced & integrated group management”“Substantive one bank” begins

MOU* onmerger between MHSC and MHIS
Jul.
2011

Jan.
2013

expertise of both MHCB and MHBK within the group, we
will further invigorate our business activities and provide
financial services to meet all the customer needs through

Synergy Effects by “One Bank” (Estimation)+¥100
Breakdown of synergy effects for fiscal 2015
billioncompared to fiscal 2011

the unified efforts of the group.
Specifically, we will further strengthen businesses
related to the employees of MHCB's customers, taking
advantage of MHBK's retail marketing expertise, andRevenuesynergies+¥60
billionenhance support for the overseas businesses of MHBK's
customers by utilizing MHCB's overseas network. Also,
we will, in relation to MHBK's customers, actively utilize
MHCB's know-how for businesses related to large corpo-

Expense Ratio:
Aiming at thelevel of lessthan 50%rate customers and capability to provide comprehensive
proposals for business solutions. Through those activities,
we will further enhance business promotions that meetcustomer needs. At the same time, we will strive to pur-

Costsynergies+¥40
billionsue group synergy effects through the integrated management of banking, trust and securities functions throughFiscal 2015

Banking operations
RetailCorporate
Markets+¥45 billion+¥5 billion+¥20 billion+¥20 billion

Collaboration amonggroup companies+¥15 billion

Trust function collaboration+¥8.5 billion

Securities function collaboration +¥6.5 billion

Reduction of personnel
expenses
Downsizing of personnel(3,000 staffs)
Other cost reductions
Unification of peripheral
systems, etc.
Cost reduction at MHSC
and MHIS
Total+¥22 billion+¥22 billion+¥18 billion+¥10 billion+¥8 billion+¥100 billion

further collaboration among such functions.
Under the markets units, we will strive to strengthen

post at each company concurrently. In principle, the exec-the efficiency of our market operations in respect of both

utive officer of MHFG in charge of the corporate plan-use of funds and source of funds and will aim toning and management unit concurrently serves as thestrengthen profits through the effective utilization of risk

vice executive officer in charge of MHTB.

capital and the enhanced risk management.
The synergy effects from Mizuho's integrated group

Reorganization of Relationship Management
Units, Products Units and Markets Units

management structure, including events such as the

In the relationship management units, products units

merger of MHCB and MHBK, is estimated to amount toand markets units, customer segments were redefined in

an increase of ¥100 billion in fiscal 2015, compared tomore detail based on customer characteristics and a

fiscal 2011.

business promotion structure across MHCB and MHBK
for each segment was established, in order to better meet

Launch of “Substantive One Bank”

the diversified needs of customers in a prompt manner.

In order to realize the synergies generated from theSpecifically, customer segments were reorganized into six

merger of MHCB and MHBK as soon as possible, weunits, the Corporate Banking Unit (Large Corporations),

implemented the “substantive one bank” structure in

the Corporate Banking Unit, the Financial Institutions &April 2012. Under this structure, we unified the corpo-

Public Sector Business Unit, the Retail Banking Unit, therate planning and management units and reorganized

Personal Banking Unit and the International Banking Unit

the relationship management units, the products units,(collectively, “relationship management units”), and an

and the markets units across the banks and establishedorganizational structure across MHCB and MHBK was

new units.

established to offer advanced solutions to the specific

Unification of Corporate Planning andManagement Units

needs of the targeted customers of each unit.

The groups within the Corporate Planning and Manage-

resources utilization and facilitating the sharing of busi-

ment Unit were reorganized according to their respective

ness know-how, those organizations that provide prod-

duties and functions and, in principle, the executive offi-

uct functions were consolidated into multiple units acrosscer in charge assumed the corresponding post at each of

MHCB and MHBK, separate from the relationship man-

MHFG, MHCB and MHBK concurrently. The divisions thatagement units. Specifically, such organizations were reor-

comprise each group were also reorganized according toganized into three units, the Investment Banking Unit, thetheir respective duties and functions and, in principle, theTransaction Banking Unit and the Asset Management

general manager in charge assumed the corresponding

Unit, so that each unit can provide products that meet the

From the perspective of efficient management

11Initiatives for Integrated
Group Management

Integrated Group Management and Synergy Effects

needs of MHCB and MHBK customers on a group-wideof the product expertise accumulated by both banks.

basis. In addition, a Securities and Trust Collaboration

Those organizations that provide market functions

Enhancement Division was established in both MHCB andwere consolidated into the Markets Unit across MHCBMHBK and will act to facilitate collaboration between theand MHBK in order to enhance market related profits.

banking and trust functions and between the banking

In principal, the executive officer in charge of eachand securities functions. We expect that these measuresunit assumed the corresponding post at each of MHCB

will lead to improvements in customer convenience, as

and MHBK concurrently.

customers of both banks will be able to take advantage
Outline of Organization under “Substantive One Bank” Structure
Corporate Planning and Management Unit
“Substantive One Bank” Structure after April 2012

Former Corporate Structure
MHTB

MHFG

MHBK

MHCB

MHTB

Corporate
Corporate
Corporate
Planning and
Planning and
Planning andManagement Unit Management Unit Management Unit

MHBK

Corporate
Planning andManagement Unit

Corporate
Planning andManagement Unit

Corporate
Planning andManagement Unit

Corporate
Planning andManagement Unit

Corporate
Planning andManagement Unit

Strategic Planning

Strategic Planning

Strategic Planning

Strategic Planning

Financial Control& Accounting

Financial Control& Accounting

Financial Control& Accounting

Financial Control& Accounting

Risk Management

Risk Management

Risk Management

Risk Management

MHFG

MHCB

Human Resources
IT, Systems andOperations

IT & Systems

Human Resources
IT & Systems

IT & Systems

Introductionofgovernancestructurethat will
apply across
MHFG,
MHBK
and MHCB

Strategic Planning

Strategic Planning

Financial Control & Accounting

Financial Control& Accounting

Risk Management

Risk Management

Human Resources

Human Resources

IT & Systems

IT & Systems

IT & Systems

IT & Systems

Operations

Operations

Operations

Operations

Operations

Compliance

Compliance

Compliance

Compliance

Compliance

ComplianceInternal Audit

Internal Audit

Internal Audit

Internal Audit

Internal Audit

Internal Audit

Internal Audit

Internal Audit*With respect to Internal Audit, the former structure will be maintained in order to ensure mutual checks among the entities in light of the unification of business operation.

Relationship Management Units, Products Units and Markets Unit
Former Corporate Structure“Substantive One Bank” Structure after April 2012

MHBK

MHCB

MHTB

Marketing Planning Divisions(Relationship Management& Products)
Corporate
Personal
Banking Group Banking Group
Large
Corporations

Profit Units(RelationshipManagement)
Corporate
Banking Unit
Large
Corporations

RelationshipManagement
Divisions

Large
Corporations

Relationship
RelationshipManagement
Management
Corporate Banking Unit
(Large Corporations)

Large
Corporations

Middle Market
Corporations

Middle Market
Corporations

Middle Market
Corporations

Corporate Banking Unit

Middle Market
Corporations

Financial Institutions& Public Sector

Financial Institutions& Public Sector

Financial Institutions& Public Sector

Financial Institutions & Public
Sector Business Unit

Financial Institutions& Public Sector

SMEs

Retail Banking Unit*1

SMEs
Corporate owners &Land owners, etc.
Corporate employees& Retired persons, etc.

Products Function
Divisions

Corporate owners& Land owners, etc.
International
Banking Unit
Overseas JapaneseCorporations, NonJapanese Corporations

Corporate employees& Retired persons, etc.

Profit Units(Products)
GlobalInvestment
Banking Unit

Products

Trading and ALM Group

Profit Units

Introductionofpromotional
structurethat will
apply across
MHBK
and MHCB

MHCB

MHTB

Profit Units

RelationshipManagement
Divisions

Personal Banking Unit*1

SMEs
Corporate owners& Land owners
Corporate employees& Retired persons, etc.

International Banking Unit*2

Products

Products

GlobalTransaction
Banking Unit

Transaction Banking Unit

Global AssetManagement
Unit

Asset Management Unit

Products

Securities and Trust
Collaboration Enhancement Division
Profit Units(Markets)
GlobalMarkets Unit

Markets

Markets

Markets

Markets Unit

*1. Organization set up only in MHBK
*2. Organization set up only in MHCB

12Coordinatedmanagement

Investment Banking Unit

Securities DivisionMarkets

MHBK

Markets

Initiatives for Integrated
Group Management

Business Outline

We aim to meet the diversified needs of our customers by integrating our financial services,
including banking, securities, trust and asset management businesses.

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 individualand corporate markets.

Plan to conduct a merger on July 1, 2013
(Trade name after the legal merger: Mizuho Bank, Ltd.)

Securities
Business

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.

Plan to conduct a merger on January 4, 2013
(Trade name after the merger: Mizuho Securities Co., Ltd.)

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.

MizuhoResearch Institute(MHRI)

Mizuho Information& Research Institute(MHIR)

Mizuho Private
Wealth Management(MHPW)

A think tank.

A company in charge ofIT strategy.

A wealth management
services company.

Mizuho Factors

Mizuho CapitalMizuho Trust Realty

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

A principal venture capitalcompany.

A real estate agency.

MizuhoFinancial Strategy(MHFS)

Mizuho-DL
Financial Technology

Orient Corporation

UC CardAn advisory company
for financial institutions.

A research and development
company of financial technology.

A company that provides
purchase financing, credit card,and bank guarantee services.

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

Trust and AssetManagement
Business

Other
Businesses

MizuhoCredit Guarantee
Guarantees housing
and other loans.

13

Initiatives for Integrated
Group Management

Business Approaches

Approaches to Individual Customers

Banking Businessdonating them to the government according to the number of contracts concluded when customers use housing

In order to meet the needs of individual customers

loans and other loans to transform their homes into eco-throughout their lives, MHFG offers diversified products

friendly dwellings.

and services which are appropriate for the life stages andscenes of each individual.

MHBK is taking inquiries at branches, on its website,and by phone regarding negotiations on changing housing
loan repayment conditions and other matters based on

Mizuho Mileage Clubthe Financing Facilitation Act for SMEs.

At the end of March 2012, over 8.8 million people signed
In addition to attractive benefits such as discounts on

Expanding Lineup of Investment and Life
Insurance Products

service fees, MHBK provides an extensive lineup of credit

MHBK is endeavoring to expand its product lineup in

cards customers can choose from to suit their lifestyles.

such areas as investment trusts, insurance and foreign

up for the MHBK's Mizuho Mileage Club service.

MHBK also provides campaigns aimed at young people.

currency deposits.
It offers products to meet various customers' needs.

Privileges Depending on Usage

These products include investment products which suitcustomers' investment purposes and life insurance forcustomers to prepare for their future.
Each branch of MHTB and MHBK handle Chochikuno Tatsujin, results-based dividend-type money trust
product.

Mizuho’s Consulting Services
As the closest advisors to individual customers, financial
consultants at MHBK respond to the customers' various
needs.

Mizuho Direct

They advise customers on the best products and serv-

As of the end of March 2012, about 9.3 million people

ices such as household account management, financial

had signed up for MHBK's Mizuho Direct, which makes itplanning, preparation for the future, housing and educa-

possible to take advantage of MHBK's services throughtion funds, retirement fund management, inheritanceInternet banking and other channels.

funds, and so on, to meet the various stages and circum-

In the second half of fiscal 2011, MHBK began reissuing passbooks and ATM cards through Internet bank-stances of their lives, whether it be taking a new job, getting married, purchasing a house, or retiring.

ing and made improvements to its services such as thehandling of time deposits/installment time deposits for
smartphones.

Promoting Business Aimed at Employeesof Corporate Customers
MHBK provides products and services for senior execu-

Loan Services Aimed at Individuals

tives and employees of Mizuho's corporate customers to

To make it easier for people to consult on weekends, hol-meet the various needs of each customer at each stage

idays and during the evening on weekdays, MHBK holdsof his or her life. These include opening accounts forhousing loan consultations and is setting up Loan

receiving salary when they start to work, offering infor-

Consulting Squares for consultations and loan contracts.

mation on asset formation, consultations on housing

MHBK is making efforts to improve its services, such asloans for new house purchases, offering comprehensive

by increasing the borrowing threshold and reducing the

proposals on postretirement life planning and managing

minimum basic interest rate on Mizuho Bank Card Loans.

retirement allowances.

It also supports customers' efforts to preserve theenvironment by purchasing CO2 emission credits and14

Improvements of Branches and ATM
Installations
network. It opened three branches in fiscal 2011 and two

ATM/Branch Search Smartphone App[Received the Incentive Award at MCPC
award 2012]

more branches by May of fiscal 2012. It is also installing

In May 2011, MHBK began offering the ATM/branchATMs at train stations and commercial facilities.

locator smartphone app, which uses Augmented

MHBK is making efforts to expand its branch and ATM

In order to provide further enhanced, comprehensive

Reality technology.

financial services, it has also set up MHTB's Trust Lounges

The location and distance of the branch are dis-which specialize in consultations and offer unique trust

played on the screen, so that even first-time visitors

services, including asset inheritance and real estate-related

can find the branch without becoming lost. Besides

business, and Planet Booths, joint branches with MHIS,

locating MHBK's own ATMs and branches, thisand other channels.

highly functional application can be used to searchfor useable ATMs at over 30,000 convenience

Collaborative Sub-branch (ATM Corner)with Major Florist Businessstores, to look up branch operating times, or tofind barrier-free branches.

As a new endeavor to enrich ATMs remote frombank branches, MHBK opened a collaborative subbranch (ATM corner) in cooperation with the major
florist Hibiyakadan in November 2011.

Partnership with China UnionPay
In October 2011, MHBK, together with Credit
Saison and UC Card, entered a basic agreement fora business partnership in the area of retail businesswith China UnionPay.
The four companies aim to provide services withgreat convenience to Chinese travelers to Japanand Japanese travelers to China.

Signing ceremony

15

Initiatives for Integrated
Group Management

Business Approaches

Approaches to Corporate Customers

Banking Businessthree areas: (1) the “sector-specific analyst function,”
which offers wide-ranging information and analysis con-

Providing Solutions in Response to Customers'
Needs

cerning industry; (2) the “sector-specific strategist func-

By integrating the group's specialty functions, includingals; and (3) the “corporate finance function,” which sup-banking, securities, trust and asset management busi-

ports the formulation of customers' financial and man-nesses, Mizuho offers a full range of financial solutions

agement strategies.

tion,” which works on future business strategy propos-

on a global basis to meet its customers' needs in fundraising, management and financial strategies.

Approaches to Large Corporations

Efforts to Facilitate Financing for Corporations

With the increasingly diversified, sophisticated and global-

Being more conscious than ever of the role that financial

ized financial needs of large corporate customers, finan-

institutions must play in responding smoothly to cus-

cial institutions need to offer sophisticated, advanced andtomers' funding demands, Mizuho is strengthening its

comprehensive solutions to their customers.

ability to meet their fund-raising needs. It also takes

Drawing on its robust, long-term relationships withadvantage of the group's information functions and net-large corporations, Mizuho offers the best solutions glob-

work to support its customers' management according toally, by combining and strengthening its commercial bank-their life cycle by proactively fulfilling consulting func-

ing operations with its M&A advisory services and othertions, including supports for business establishment andaspects of its traditional investment banking business,starting new business, improvement of management,

which contributes to the enhancement of its customers'

business revitalization, and business inheritance.

corporate values from a medium to long-term perspective.

Mizuho's RMs

As professionals of corporate finance, RMs for large

Acting as relationship managers (RMs) for the entire

corporate customers accurately identify their customers'

group, Mizuho's RMs are focusing on its solution busi-

management issues and offer diversified solutions toness by making use of the specialist functions embodied

strengthen their competitiveness at home and overseas.

within the group to support customers as financial advi-

These solutions include support for fund raising, businesssors, helping them realize their business, financial, global,

reorganization in Japan, cross border M&A and overseas

and other growth strategies.

business expansion by Japanese companies.

Banking, Trust Banking and Securities
Collaboration
MHCB and MHBK collaborate with MHSC and MHIS at

Approaches to Financial Institutions andPublic Sector Entities

home and overseas in establishing global securities busi-

To meet the needs of customers among financial institu-

ness strategies and strengthening the operation systemtions, Mizuho offers optimal solutions such as advice on

to provide solutions that suit to customers' capital man-financial strategies and risk management, assistance inagement, business and financial strategies. Staff mem-customers' overseas business and proposals for invest-

bers are concurrently working in some of the businessment products. With regard to the needs of customers

promotion divisions at both MHCB and MHSC in Japan,

among public sector entities, Mizuho offers comprehen-further promoting collaboration between them.

sive financial services. Examples include financing support

Furthermore, MHCB and MHBK collaborate withMHTB to offer optimal trust solutions which meet theirby underwriting public bonds, PFI/PPP and arrangementof syndicated loans.

customers' diversifying needs.
Changes in global industrial structures and diversification

Approaches to SMEs and Middle-Market
Corporationsof corporate strategies appear to be gaining momentum.

Responding to Funding Needs

Against this background, Mizuho's Industry Research

Mizuho is supporting expansion of business operations in

Division acts as the research team, proposing global andgrowth areas.

Industry Research

16

comprehensive solutions to customers on the basis of its

Among those initiatives, MHBK offers Mizuho Eco-assist,

deep understanding of industry. Its activities focus on

Mizuho Eco Private Placement, and Interest Subsidy

Delivery Project developed by the Ministry of Environment,

Japan and overseas who are well versed in overseas busi-

which support funding for customers who adopt a positive

ness provide the best possible information and services

approach to environmental issues. In addition, in Marchaccurately and quickly according to the needs of the busi-

2011, it launched Mizuho Eco-assist Plus and Mizuho Econess in question and its development stage—local feasi-

Private Placement Plus which evaluates, based on MHBK'sbility study, overseas business strategy formulation,

own standards, the state of a company's environmentally-

establishment of overseas subsidiary, post-establishment

conscious management and provides financing.

business management, and so on through utilizing the

In response to Japan's aging population and fallinggroup's Asian network, which is one of the most extensive

birthrate, MHBK provides Mizuho Heartful Loans andamong any Japanese bank.

Mizuho Heartful Private Placement to support customers• IPO Support

who are proactively involved in promoting employment

MHBK responds to the needs of customers planning IPOs

among the elderly and the disabled.

through organized collaboration with other group companies: MHIS provides broadly based support as a securities

Relief for Flooding Disaster in Thailand

company; Mizuho Capital serves as a venture capital

MHCB and MHBK established Thailand Flooding

investor and gives advice on going public; and MHTB

Disaster Relief Assistance Fund, which consists ofoffers advisory and stock transfer agency services.

¥100 billion in financing to assist the corporate cus-

• Approaches to Corporate Owners

tomers damaged by the large-scale flooding in

Business inheritance is one of the most important man-Thailand in recovering from this disaster. The groupagement issues for SME customers because it simultane-

is working as one to raise funds for the recon-

ously raises succession issues pertaining to the company's

struction and rehabilitation of production facilities

ownership and the owner's own assets.

and the restoration of supply chains for customers'

For corporate owners and high-net-worth customers

foreign subsidiaries centered around flood-hit

that own real estate, MHBK's Corporate Marketing

Thailand.

Division and Wealth Marketing Division offer comprehensive consultations on business and asset inheritance, toApproach to Management Issues

respond to the customers' needs as both management• Mizuho Business Financial Centerand individuals.

MHBK is proactively engaged in the lending business, andIn May 2012, MHBK held the Mizuho Top Owners

has concentrated its overall lending operations for small-

Seminars with MHTB to offer high-net-worth customers

scale companies in Mizuho Business Financial Center, athat own real estate the latest information.

subsidiary specializing in lending.

• Business Matching
MHBK is proactively engaged in business matching services, introducing customers of Mizuho who best satisfy thebusiness needs of other customers. These services include
introducing new sales and purchasing partners, and partners who can help in the area of cost reduction.
In fiscal 2011, MHBK offered services to help customers to reconstruct supply chains and find ways toreduce electricity consumption, placing emphasis on
responding to business needs in the aftermath of theGreat East Japan Earthquake. MHBK also sponsored theBusiness Matching Forum for Food-specialty Supermarkets
in October 2011.

• Support for Overseas Business Expansion
In order to satisfy Japanese companies' diversified needs
relating to overseas business expansion, specialist staff in
17

Initiatives for Integrated
Group Management

Business Approaches

Banking Business

Mizuho's Global Business
Mizuho offers optimal solutions for the various needs ofEstablishment of Mizuho Corporate Bank
(Malaysia)

its customers by seamlessly combining its rich experience

In September 2011, Mizuho Corporate Bankin overseas markets with its extensive overseas group(Malaysia), MHCB's 100% owned subsidiary, started

network and cutting-edge financial products. It is also

its business operations in Malaysia, one of the cen-proactively engaged in establishing overseas offices andtral nations in ASEAN. As a result, Mizuho is able toforming business alliances with government-affiliatedprovide its customers with financial services denomi-

organizations and local financial institutions, thereby

nated in ringgit, the Malaysian local currency.

strengthening its overseas support framework for its
customers.

Capital and Business Alliance with
Vietcombank

Asia and Oceania Region

In September 2011, MHCB entered into a capital

As prospects for high economic growth continue, Mizuho

and business alliance with Vietcombank, one of theplaces strategic importance on Asia, and is enhancing its

largest national commercial banks in Vietnam. This

support framework for its customers in Asia.

alliance will further strengthen MHCB's structure to

MHCB has taken steps to provide even more detailed

support the business development of its customers

services to its customers in Asia by dividing its Asia Unit

by making it possible to provide services that lever-into the East Asia Unit and Asia & Oceania Unit. In orderage Vietcombank's management resources such as

to further strengthen its support system for customers,

its domestic office network.

MHCB established Mizuho Corporate Bank (Malaysia) in
Malaysia and the Yangon Representative Office in
Myanmar. Furthermore, MHCB is making preparations toopen a branch in Bangalore, India by the end of April
2013. Mizuho Corporate Bank (China) is making preparations to open a branch in Hefei and sub-branches in the
Heping District of Tianjin and in Kunshan by the end of
March 2013. It also entered into a capital and business

Signing ceremony

alliance with the Joint Stock Commercial Bank for Foreign
Trade of Vietnam (Vietcombank), which is one of the

Entry into Retail Business in Asia (Indonesia)

largest national commercial banks in Vietnam. In addi-

In December 2011, MHBK turned a local company

tion, besides becoming the first Japanese bank to con-with business centered on auto loan and leasing induct RMB bond investments in China, MHCB also

Indonesia into a consolidated subsidiary, Mizuho

entered into the Yen-RMB Direct Trading Market estab-

Balimor Finance, allowing Mizuho to enter into thelished in June 2012, both in Japan and China, andretail finance business in Indonesia.

Mizuho Corporate Bank (China) obtained Yen-RMBMHBK aims to strengthen its retail finance busi-

Direct Trading Market Maker qualification in China. In

ness in the rapidly growing Asian market goingsuch ways as these, MHCB is taking proactive actions as

forward.

RMB transactions continue to diversify.
Meanwhile, MHBK entered into the retail finance business in Indonesia through its consolidated subsidiaryMizuho Balimor Finance, thereby advancing its global
retail business.
To meet its customers' diversifying needs in the Asiaand Oceania region, Mizuho is enhancing its services,
through establishment of offices and business alliances,and expansion of financial products.
18

Signing ceremony

promotion in Central and South America by, for example,

Establishment of Yangon Representative
Officereaching an agreement with the German bank, WestLB,In April 2012, MHCB established a representative

Banco WestLB do Brasil in June 2012 to strengthen its

office in Yangon, Myanmar. As a result, MHCB, along

local support framework for its customers in Brazil, wherewith MHBK, will have a structure to collect andcontinuous economic growth is expected on the back of

exchange information about Myanmar and thus

its rich natural resources.

enhance the ability to support customers looking toenter or expand their business in the country.

to acquire its Brazilian corporate banking subsidiary,

In the Americas, including Central and South America,
Mizuho will continue to strengthen its support framework
for its customers and offer a wide range of solutions.

Approaches to Environment Business in Asia
the Strategic Project Department and is engaging inApproaches in Europe, the Middle East
and Africa

Smart City Projects. These projects contribute to

In order to provide various financial services not only ininfrastructure system exports necessary for Japan's

Europe but also in other regions such as the Middle East

growth strategy by participating in related businessand Africa, Mizuho is forming alliances with local financial

consortiums from the deal-planning and develop-

institutions and expanding its office network. For the pur-ment stage. Major deals include the Integrated

pose of strengthening its support framework for JapaneseTownship Project with Eco-friendly Infrastructure incompanies, Mizuho signed general business cooperation

Chennai, India and the Remote Island Smart Grid

agreements with Sberbank of Russia, Russia's largest com-

Demonstration Project in Hawaii. By taking themercial bank, in September 2011, and with the Standard

expertise gained through the promotion of these

Bank of South Africa, the largest bank in South Africa, indeals and applying it to other projects, MHCB is

February 2012. In addition, it established a representative

expanding its business field as a bank and support-

office in Istanbul, Turkey to strengthen Mizuho's global

ing the growth of Japanese industries from a finan-

support framework for customers. Turkey is expected tocial perspective.

experience stable economic growth going forward, due in

MHCB's Industry Research Division has establishedpart to Turkey's large population, which is the second
largest in Europe after Germany, and also its favorable
geographical location.
Mizuho also focuses on offering services that integrate
both banking and securities businesses, including working
in collaboration with Mizuho International, MHSC's overseas subsidiary in the U.K.
Conceptual drawing of the Integrated Township Project with
Eco-friendly Infrastructure in Chennai

Mizuho will continue to strengthen its support framework and enhance its services for its customers in the
Middle East and Africa by expanding its network.

Approaches in the Americas
In the Americas, Mizuho offers high value-added financial

Establishment of Istanbul Representative
Officeservices in corporate financing and investment banking,

In February 2012, MHCB established the Istanbul

such as project finance and syndicated loans. Its customers

Representative Office in Turkey. Through the estab-

include Fortune 1000 companies®, financial institutions,lishment of this office, MHCB will have a structure

and public organizations. MHCB and Mizuho Securities

to collect and exchange information about Turkey

USA collaborate to respond to customers' needs, provid-

and thus enhance its ability to support customers

ing solutions that maximize Mizuho's group and global

looking to enter or expand their business in the

networks and achieve strong results in the region.

country.

Furthermore, Mizuho proactively engages in business19

Initiatives for Integrated
Group Management

Business Approaches

Mizuho's Products

Banking Business

offering sophisticated solutions focusing variety of assets,such as securitization arranged in both domestic andMizuho develops and offers products and services, espe-

overseas markets, inventory finance and whole businesscially in the field of fund-raising, that draw on cutting-securitization.

edge financial technology to support the business andReal Estate Financefinancial strategies of its customers.

Mizuho has arranged financing for a number of realestate-related projects. Taking full advantage of its

Investment Banking Businessknowledge and skills developed through various kinds ofAcquisition Financedeals we have arranged for years, we simply offer the

In order to increase corporate value of its customers,

best solutions, including financial and business strategies,

Mizuho offers sophisticated M&A solutions. In recent

CRE management and securitization of real estate, toyears, it has been focusing on supporting its customers'solve its customers' issues such as business restructuring,

M&A strategies by strengthening cooperation among

overseas expansion, strengthening their financial base,group offices and companies at home and overseas to

BCP, and divesification of fund-raising.

respond to a growing need for cross-border M&A, busi-

Syndication Businessness succession, and going private. In the area of MBOs

Mizuho is proactively engaged in the use of syndicatedand LBOs, Mizuho has arranged large deals for Skylark

loans that employ wide and various sorts of financings,

and Tachihi Group.

such as financing for general purpose, M&A finance,

Project Financeproject finance, real estate finance and finance for busi-

Mizuho is a top global player in the arrangement of, andness restructuring. In fiscal 2011, it arranged a number of

performance of advisory services for, project financemajor deals, including a multicurrency commitment line

deals that enable the procurement of long-term capitalfor JX Holdings, as well as deals like project finance forfor natural resource development abroad, the building ofTokyo International Air Terminal. As a result, the group

electric power generation projects in Japan and overseas,

has maintained the largest presence in the market, aand the construction of public infrastructure.

39.3% share, according to the Thomson Reuters' domes-

In Japan, followed by the revised PFI Law and the Act

tic bookrunner league table. In the global bookrunneron Special Measures concerning the Procurement of

league tables, the group took fifth place, the highest

Renewable Electric Energy by Operators of Electric Utilities,

among the Japanese banks.

Mizuho is taking on PFI/PPP deals across a wide range oftransportation and other types of public infrastructure,

Trends in Japan's Syndicated Loan
Market and Mizuho's Shareand for disaster reconstruction projects.

Mizuho's Share(Fiscal 2011)

Offshore Wind Power Project39.3%

Mizuho has arranged a £158 million project finance(Trillions of ¥)deal for Gunfleet Sands offshore wind farm, oper-30

ated off the Essex coast of southeastern U.K. It is25

the first wind power project in which a Japanese

20

company has acquired a portion of the stake and15

for which Nippon Export and Investment Insurance

10(NEXI) has provided loan insurance.
5

Asset FinanceBy arranging customers' asset securitization, Mizuho
satisfies their demands such as diversification of fundraising sources and improvement of financial indicesthrough removing assets from their balance sheet.
Mizuho supports customers' financial strategies by
20

0

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

[Trends in Japan's Syndicated Loan Market]
Sources: Fiscal 2002: Thomson Reuters
Fiscal 2003 – Fiscal 2011: “Loans Syndicated and Loans Transferred”
from Japanese Bankers Association[Share of Japan's Syndicated Loans (fiscal 2011, bookrunner basis)]
Source: Thomson Reuters

Mizuho has a global platform for syndicated loan busi-

Asset Management Businessness (with its overseas offices), to satisfy the diverse

Mizuho makes the most of the synergies between planning,financing needs of global companies and international

development, and sales in the asset management-related

institutions located in Asia, Europe and the Americas. It

business through seamless management, thus providing

has arranged deals known as Ninja loans (syndicatedcustomers with products and services that match theirloans extended by Japanese financial institutions to over-needs.

seas firms) to a government-affiliated South Korean finan-

Pensions Businesscial institution.

Mizuho has the top performance record in the field ofdefined contribution pension plan entrustments in Japan

Transaction Businessand offers comprehensive pension services through theDomestic Settlement Service

specialist division.

Through its nation-wide branch network and Internet

Global Alternative Investment Businessbanking services including the Mizuho e-Business Site,

Mizuho provides products and services in collaboration

Mizuho offers not only services such as transfers and for-with US asset management company Mizuho Alternative

eign exchange but a variety of settlement services relat-

Investments, Tokyo asset management company Mizuho

ing to payments and collections such as debit cards, Pay-

Global Alternative Investments which selects and provides

easy, Internet transfer settlements, etc.

products such as hedge funds, and Eurekahedge, a sub-Cash Management Service

sidiary in Singapore that offers hedge fund research andMizuho responds to customers' needs on a global basis

information.

by offering sophisticated cash management services. In
Japan, these include zero balancing services and payment

Mizuho's Market Businessfactoring, often in combination with Mizuho Advanced
CMS. It also offers Mizuho Global CMS and the Mizuho

In the sales and trading business, Mizuho offers optimal

Global Cash Pooling Service abroad.

financial solutions that use cutting-edge financial tech-Foreign Exchange and Trade Services

nologies to satisfy customers' increasingly diverse andIn addition to offering cross-border settlement services

sophisticated global financial and business risk control

for RMB and various other emerging currencies, hedges

needs.

against foreign exchange risk and issuing guarantees for

It has expanded its product lineup from basic areas

foreign exchange transactions, Mizuho provides cutting-such as interest rates and foreign exchange to oil, metals,edge solutions including securitization of overseas

weather, and other commodity derivatives, and local cur-accounts receivable, trade finance using letters of credit,

rency transactions. In the field of Asian currencies in par-and ECA finance (finance provided in cooperation withticular, it responds to customers' needs through coopera-

governmental export credit agencies around the world).

tion between its team of experts, who are thoroughly

Yen Settlement and Custody Services

familiar with the market's or country characteristics, andMizuho offers various cash and securities clearing & set-

its network of overseas offices. Mizuho is responding totlement services, including correspondent yen settlement

demand for offshore RMB, which is drawing growing

services and custody services for non-residents. Mizuho

interest as a result of Chinese deregulation, and various

has enhanced its services by establishing a dual-office sys-

other customer needs.

tem and other measures to prepare against disasters. In

Through its tie-up with Mizuho-DL Financial Technolo-

the area of custody operations, it has acquired a businessgy, which is a group company specializing in the devel-

model patent for managing investment assets. It has also

opment of financial technology, Mizuho developed

acquired SSAE16 certification for internal controls in cor-“dynamic foreign exchange hedging”—a statistical/prob-

respondent yen settlement operations.

abilistic exchange risk hedging method that eliminatesmarket views and arbitrariness. Many customers, with afocus on large corporations, have made use of “dynamic
foreign exchange hedging.”

21

Initiatives for Integrated
Group Management

Business Approaches

Mizuho's Trust Business

Trust and Asset Management Business

Saver). Some branches of MHBK started handling
Chochiku no Tatsujin from December 2010, and the

MHTB works with the group companies to provide theproduct became available at all MHBK branches ingroup customers with trust functions. At the same time,

August 2012.

it is proactively developing trust products that use new

Asset Management Trusts

assets and trust schemes.

MHTB's Asset Management Trust is a trust product which

These products include security trusts, a trust scheme tois separately established and managed for each customer,

secure language school tuition and other fees by segregat-

primarily by accepting their stocks, bonds, and othering advances received and e-Noteless, a new settlement

securities. Making the most of the know-how it has accu-

scheme using electronically recorded monetary claims.

mulated through its asset management business as a

MHTB offers customers a wide range of solutions totrust bank, it is responding to customers' various needs

meet their needs, such as specified donation trusts forranging from support for asset management and invest-

mediating donations from individual customers to public-

ment to methods for dealing with acquisition or disposalinterest corporations, and asset inheritance trustsof treasury stocks, which require special care.

(guardianship support trusts) to assist guardianship in
regard to asset management.

Testamentary Trusts
Sooner or later, everyone faces the important question of

Money Trust Using Subordinated Loansfor Regional Banks

how to ensure their invaluable assets are properly passed

In August 2011, to meet the funding needs ofinheritance using the know-how it has built up overregional banks and the asset management needs ofmany years and the types of services that only trust banks

their customers, MHTB developed a new money

can offer. As of the end of June 2012, MHTB had signed

trust as asset management product that uses sub-trust agency contracts for testamentary trust businessordinated loans to regional banks, the first suchwith a total of 26 financial institutions, including MHBK.

scheme in Japan.

on to their heirs. MHTB provides assistance with asset

Its testamentary trust business offers three services:

In this scheme, regional banks receiving subordi-“consent to undertake the execution of wills service,” anated loans act as sales companies and sell theircomprehensive service for handling everything to do withcustomers joint management money trusts man-wills, from consultation for drafting to execution; “willaged in the subordinated loans to those banks.

safe-keeping service” to hold wills in safe custody; and“inheritance distribution service” to act as agent for heirs

Specified Donation Trustin executing the procedures necessary when an inheri-

The “specified donation trust” is a trust product totance arises.

mediate donations from individual customers topublic-interest corporations. Customers can choose

Lending Businesswhere to make their donations from among various

MHTB offers the Produce rental condominium and apart-

public-interest corporations with which MHTB has

ment loan product to customers who want to make moreentered a comprehensive donation agreement,

effective use of their real estate. Produce, a dedicatedaccording to the customers' needs.

loan product for rental condos and apartments, offers
loans of up to ¥1 billion with a maximum repayment
period of 35 years (for reinforced concrete construction)

Trust Business Targeting
Individual Customers

in the Tokyo metropolitan area and the Kinki region.
MHTB provides lease business consulting services to help
customers with their life planning or inheritance arrange-

Personal Assets under Management
MHTB offers a selection of financial products that makethe most of the features of trusts such as results-based
dividend-type money trusts Chochiku no Tatsujin (Expert
22

ments for the future.

Real Estate Businessnotices convening general meetings of shareholders, andIn cooperation with Mizuho Trust Realty, MHTB provides

counts voting rights. It also offers various services and con-assistance for purchasing or changing family homes, trad-

sulting in line with progress in computerization, theing in investment real estate, and making more efficientincrease in M&A, the enforcement of the Companies Act

use of idle land.

and the Law Concerning Book-Entry Transfer of Corporate
Bonds, etc., and other changes in the external environ-

Trust Business Targeting
Corporate Customers

ment. Since the introduction of the Electronic Share
Certificate System in 2009, it has also acted as a special
account management institution, handling various proce-

Corporate Assets under Management

dures concerning stocks recorded in special accounts.

In addition to results-based dividend-type money trusts
such as Super Highway, MHTB has prepared a wide-

Real Estate Businessrange of products to satisfy individual needs of cus-

In its real estate business, MHTB helps to resolve cus-

tomers, including privately placed investment trusts.

tomers' needs and issues in the areas of corporate finance,
asset inheritance and the rearrangement and effective

Lending Businessuse of asset portfolios by quickly and effectively devising

In addition to offering traditional bank lending services,

solutions through its consultation functions and by pro-

MHTB's lending business makes use of its trust know-

viding wide-ranging services, such as real estate broker-

how in meeting funding needs by focusing on the valueage, real estate securitization, appraisals and land trusts.

and earning potential of money claims, real estate andother assets.

Real Estate Transaction Volume(Billions of ¥)1,000

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

800
600
400
200

creditworthiness and cash flows of monetary claims, suchas sales and bills receivables held by companies and0March 2010

March 2011

March 2012loans, into asset management products which it offers toindividual and corporate customers.

Proactive Response to Real Estate
Securitization-related Business

Stock Transfer Agency Business

Real estate securitization schemes and real estate fundThe stock transfer agency business involves handling vari-schemes are widely used as profit-earning real estateous operations associated with stocks on behalf of theinvestment methods. In addition to the real estate

stock issuer. As a shareholder registry manager, MHTB

trustee business, asset management business and othermanages shareholder registers, calculates dividends, mails

real estate securitization-related business such as trustee
business in the area of J-REIT asset custody and account-

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

ing, MHTB is actively engaged in the real estate nonrecourse loan business, thus responds to its customers'
various needs.

8.5
8.0
7.5

Pensions Business

7.0

MHTB offers services and product packages needed for

6.5

corporate pension schemes, which range from corporate
pension plan design and the management of pension0

policyholders and recipients to asset management andMarch 2010

March 2011

March 2012

custody.
23

Initiatives for Integrated
Group Management

Business Approaches

Trust and Asset Management Business

Furthermore, to respond to the ever more diverse and

J-REITs, and privately placed real estate investment funds.

sophisticated needs of our customers, Mizuho integrates

It also makes the funds offered by external investment

its functions across the group to offer services such as

institutions in Japan and overseas available to customers,

investment solutions and review of pension schemes.

but makes sure they are subjected to thoroughgoing due

Pension Assets under Administration as Trustee(Pension trust + solely operated designated money trust, fairvalue basis)(Billions of ¥)diligence and rigorous monitoring.

Asset Custody Business

9,000

MHTB provides highly specialized services in the area of

8,500

asset custody as one of its core businesses, and is engaged

8,000

in complicated, high-volume custodial services covering
specified money trusts (tokkin funds), pecuniary trusts

7,500

other than money trusts, and entrustment of securities

7,000

trusts and investment trusts.
0

Investment Trust Balance
March 2010

March 2011

March 2012

(Trillions of ¥)12.8

Defined Contribution Pension Schemes
As sweeping reviews of corporate pension schemes

12.6
12.4

move forward, there is growing interest in introducing

12.2

and managing defined contribution pension schemes

12.0

among companies of all sizes. MHTB not only provides
support for the introduction of such schemes, but also

0.0

March 2010

March 2011

March 2012

offers asset management services that are the first in thebusiness world to acquire ISO9001 certification, andtrust products.

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

J-ESOPs

MHTB has created a global custody business network

In the area of J-ESOPs (Japanese-style employee

through tie-ups with TCSB, and its own overseas sub-stock ownership plans; a new employee welfare

sidiaries, Mizuho Trust & Banking (USA) and Mizuho Trust

service that uses treasury stocks), MHTB strives to& Banking (Luxembourg).

meet the needs of a variety of customers through a

In order to respond to the recently growing need for

product lineup that includes retirement benefits

investment in emerging economies in Asia and Southdeveloped along the lines of US ESOP schemes, as

America in particular, these three offices, serving aswell as disposition-type ESOPs.

regional hubs, cover the markets of Asia, Europe/Africa
and the Americas, and collaborate with each other tocreate a system that offers seamless global custody serv-

Asset Management Businessices around the clock. Having functions of arranging andThrough its asset management business, MHTB offers

managing offshore trusts in its two offices in Europe andfunds with various investment strategies to a wide range

the United States, it is able to deal with investmentof customers, from public institutions that handle pen-schemes that are managed overseas by overseas invest-

sion management to corporate pension funds. Other

ment companies.

services catering to customers' needs include advice pertaining to basic asset allocation, products that take pension liabilities into consideration, and combinations ofMizuho's Trust Bank Specializing
in Asset Administration

investment strategies.

24

MHTB has been offering products using various new

In collaboration with the group companies of Mizuho, TCSB

investment targets and methods, including hedge funds,

has worked to expand its transactions with customers

among financial institutions and institutional investors

premium services to meet customers' diversified needs inand, as of the end of March 31, 2012, the balance ofcollaboration with prestigious companies, as well as high-assets under management reached ¥339 trillion. In thequality solutions in connection with areas such as philan-

area of domestic fund and securities settlement services,

thropy and concierge.

it became the first institution in the Japanese banking*Customers who have entrusted Mizuho with extremely large
amounts of investment assets.

sector to acquire certification (BS25999-2:2007) for its
business continuity management system (BCMS) in
February 2011. As a trust bank specializing in asset
administration, it will continue to provide high-quality,
high-value-added trust, and custody services that matchthe needs of its customers.

Initiatives of Asset Management
Companies
The asset management companies MHAM and DIAM
constantly pursue optimal investment results in both theinvestment trust and the investment advisory businesses
as they strive to respond accurately to customers' increasingly diverse and sophisticated asset management needs.
They have earned an excellent reputation among evaluation institutions for their highly specialized management
and original products. Four asset management funds of
MHAM and DIAM received the award for Morning Star
Fund of the Year 2011, and seven funds were also awarded the Lipper Fund Awards Japan 2012.
Furthermore, Mizuho has promoted strategic cooperation with BlackRock, an asset management company andbusiness alliance partner, and started to introduce andsell investment products for individual customers andpension funds. By utilizing BlackRock's global strengths inasset management and risk analysis, Mizuho will respondprecisely and quickly to the needs of its customers.

Full-fledged WealthManagement Services
Mizuho offers the best solutions to individual customers'
diversified needs. MHPW is providing ultra-high-networth customers* with comprehensive, integrative, andcontinued services similar to those available in the
United States and Europe to the extent permitted underJapanese laws and regulations.
Based on the concept of “providing customers withthe best around the globe,” it will continue to offer services of the highest level.
With regard to non-financial services, it will provide
25Initiatives for Integrated
Group Management

Business Approaches

Securities BusinessMerger between MHSC and MHISMHSC and MHIS plan to conduct a merger on January 4,

The Purpose of the Merger

2013.
The merger is intended, inthe securities business, toenhance the retail business in

MHSC• A leading company in the investmentbanking business (wholesale/institutional
markets).
• Has a nation-wide customer base in
middle/retail markets.

MHIS• Has an industry-leading level branch
network in the middle/retail markets
established through its collaboration
with MHBK and MHTB and also a nationwide customer base.

Japan, rationalize and streamline management infrastruc-

New MHSC after the merger

ture, and provide securities

1. Further enrich and expand customer services through strengthening functions andincreasing its external presence as a full-line securities company and investment bank.
2. Achieve the goal of becoming a full-line securities company with one of the largest
customer bases in Japan through flexible and efficient collaboration with MHCB and
MHBK, both of which have a solid customer base.
3. Realize streamlined corporate management units and thorough low-cost management
by, among other things, consolidation of, in addition to branch networks, overlapping
business areas such as corporate planning and management units and domestic
business promotion units, and integration of core IT systems; thereby converting to astrong management structure.

functions in a unified manner
through the group's full-line
securities company.

Business Approaches by MHSC
and MHIS

with MHBK, and development of Customer Plazas, joint
branches of MHSC and MHBK, and Planet Booths, joint
branches of MHIS and MHBK.

Products and Services Aimed at
Individuals

Business Aimed at Corporate Customers

Mizuho offers products and services that cater to their

Mizuho provides investment banking solutions andindividual customers' needs through various channels.

investment products that respond appropriately to busi-

Diversified Products and Services

ness strategies of its customers among corporations,Mizuho provides its specialized and sophisticated finan-

financial institutions and public sector entities.

cial services through collaboration with other group

Investment Banking Businesscompanies. These include financial products such as

Mizuho maintains its sector-leading performance in thedomestic and overseas equities and bonds, investmentarea of bond underwriting operations through its power-

trusts and structured products, research information,

ful bond sales capabilities, its ability to set prices to reflect

and inheritance services provided by the trust agency

investor demand with precision, and its ability to propose

business of MHTB.

solutions that suit the market environment and match

Channels

issuers' needs.

Mizuho provides its products and services throughIn the equities underwriting business, it draws on its

channels such as their branch network, the Internet andsuperior stock underwriting know-how and its enormous

call centers.

equity selling power in Japan and overseas to achieve

Through its financial product intermediary and cus-

sector-leading performance by serving as lead under-

tomer introduction services, it offers a wide range ofwriter in a steadily increasing number of large financefinancial products to customers across Japan by supplying

deals. It also supports public stock offering for customers

these products to registered regional banks and otherplanning IPOs.

financial institutions that have strong customer bases intheir respective areas.

26

It has compiled a top-class performance record andearned a first-class reputation in M&A advisory services,

Moreover, it delivers a full range of securities services

where it draws on its advanced sectoral knowledge andto customers with securities transaction needs. Theseknow-how to provide advice that suits customers' man-services include provision of various products to MHBK's

agement strategies, and in finance arrangement businesses

customers through financial product brokerage businesssuch as securitization of real estate and monetary claims.

Research

Total Domestic Equity League Table

Regarding fixed income research for institutional investors,*Underwriting amount basis, including REIT.
(April 2011 to March 2012, pricing date basis)Amount Share(billions of ¥)(%)
SMBC Nikko Securities
176.4 26.6
Nomura Securities
166.9 25.2
Mizuho Securities + Mizuho Investors Securities 79.7 12.0

Mizuho works closely with overseas economists within its

Rank Company namesubsidiaries and has one of the leading professional

12
3

groups in Japan in this area of research. It provides out-

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

looks for economic and interest rate trends in Japan andoverseas, credit analyses of securities-issuing companies,
assessments of the impact of monetary policies in Japan

Domestic Public-offering Bonds League Table*Underwriting amount basis, including samurai bonds, municipal
bonds and preferred securities, lead manager method only.
(April 2011 to March 2012, pricing date basis)Amount Share(billions of ¥)(%)
Nomura Securities
2,948.9 20.1
Mitsubishi UFJ Morgan Stanley Securities 2,881.9 19.7
Mizuho Securities + Mizuho Investors Securities 2,822.2 19.3

and overseas, and proposals for fixed income investment
strategies.
In terms of equity research for institutional investors,

Rank Company namepersonnel including investment strategists and sector

123analysts respond to a wide range of information needs

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

through industry research, equity investment strategy
reports, technical analysis, quantitative analysis, evaluation of individual companies, etc.

M&A Advisory Ranking*Amount of transactions which Japanese companies were involvedin (excl. real estate deals).
(April 2011 to March 2012)

Rank Advisor
1
2
3

Nomura Securities
Goldman Sachs
Mizuho Financial GroupNo. ofAmountdeals (billions of ¥)149 4,983.8
39 4,281.9
113 3,570.5

Source: Calculated by MHSC, based on data from Thomson Reuters

Further Strengthening Global Operations
MHSC has deployed subsidiaries in the important overseas financial markets in Europe, the United States, Asia,and the Middle East, strengthening its global management framework for underwriting and selling equities,
government bonds, and corporate bonds, and engaging
in the M&A advisory business.
In Europe, Mizuho International has strengthened its

Overall ABS Bookrunner League Table*Transaction amount basis.
(April 2011 to March 2012, closing date basis)

Rank Company name1
2
3

Mizuho Financial Group
Nomura Holdings
Morgan Stanley

business base and is providing customer oriented services
in the areas of investment banking business and sales &No. ofAmountdeals (billions of ¥)192 1,183.9
12
511.8
13
499.8

Source: Calculated by MHSC, based on data from Thomson Reuters

trading business. In the Americas, Mizuho Securities USA
has been offering a full range of securities services, leveraging MHCB's FHC status. In Asia, Mizuho Securities Asia
operates as the hub of Mizuho's Asian business and isstrengthening collaborations with other group companies.

Market Businessbond business, Mizuho provides products that suit its

Mizuho Securities USA's Track Record ofUnderwriting Corporate Bonds and Equities

customers' investment strategies, engaging proactively in

Mizuho Securities USA is steadily compiling a trackmarket making and offering high-quality information.

record especially in underwriting US corporate

Having carved out a position as a market leader in the

In the equities business, it is also responding appropriately to its customers' increasingly sophisticated needs bymaking the most of the expanded resources.

bonds and equities.
Track Record of Underwriting US Corporate
Bonds and Equities
Amount of issues

It is expanding market presence both in Japan andoverseas by further reinforcing its execution capabilities(Millions of US$)No. of deals(No. of deals)

5,000

50

and offering a variety of high-value-added products, as a

4,000

40

means of better responding to the sophisticated needs of

3,000

30

2,000

20

1,000

10

global institutional investors.
It is also endeavoring to leverage our network of overseas subsidiaries for the integrated development ofdomestic and overseas business.

0

2006

2007

2008

2009

2010

2011

0

27

Initiatives for Integrated
Group Management

Approaches to Collaboration among Banking, Trust Banking and Securities Businesses

In order to be ranked No.1 in service by customers, Mizuho
strives to further enhance the collaboration between its

Strengthening of Securities
Business Provision Structurebanking, trust banking and securities businesses.
Mizuho pursues synergy through the collaboration of

Expansion of Joint Branches to
Improve Customer Conveniencebanking and securities functions within the group. It isalso enhancing the retail business in Japan while rationalizing and streamlining management infrastructure.

Mizuho is expanding joint branches that allow us toleverage various functions of banking, trust banking andExpansion of “Double-hat” Structure

securities functions seamlessly, and thus respond to theWithin Mizuho, the banking and securities businesses col-needs of our customers appropriately.

laborate to satisfy customers' needs in such areas as
bond and equity issuance, M&A and IPO.

MHTB’s Trust Lounges

In July 2009, two corporate banking divisions of

MHTB is developing Trust Lounges which specialize in

MHCB and the Corporate Coverage Department ofconsultations and offer unique trust services, including

MHSC began to work collaboratively under a “double-

asset management, asset inheritance and real estate-hat” structure in order to provide sophisticated solutions

related business. It has adopted a policy of establishingthat leverage both banking and securities functions. In

Trust Lounges jointly with MHBK, MHIS and Mizuho TrustMay 2012, they expanded this ”double-hat” structure to

Realty, and is working to provide optimal solutions foreight divisions, and increased the number of personnel

customers collaborating with group companies.

holding concurrent posts in both MHCB and MHSC fromaround 50 to around 170.

MHIS’s Planet Booths

Leveraging MHCB's FHC status in the United States,

MHIS has set up its Planet Booths for consulting at

Mizuho Corporate Bank (USA) collaborates with Mizuho

MHBK's head office and approximately 160 branches to

Securities USA in offering commercial banking and invest-

offer a full lineup of services to customers with securities

ment banking services.

transaction needs.

In some capital market sections, MHIS has introduced
a “double-hat” structure allowing its personnel to hold•

About the Mizuho Group Account Service

concurrent posts in MHBK. This allows them to provide

In January 2012, MHBK and MHTB launched thefinancial services to customers with IPO needs on a one-

Mizuho Group Account Service, which allows

stop basis.

MHTB customers to use MHBK's ordinary deposit
accounts and ATMs. Under this service, customers
are able to use MHTB's products and services withan MHBK deposit account.
Moreover, this service gives MHTB customers
access to MHBK's extensive branch and ATM
network.

28

Initiatives for Integrated
Group Management

Initiatives to Support the Recovery from the Great East Japan Earthquake

Mizuho continues to offer its combined group strengths
to assist in rebuilding the lives of people afflicted by theInitiatives Aimed at Reviving Industries
and Disaster-stricken Regions

Great East Japan Earthquake and reviving the industries
and economies that have suffered as a result of the

To tackle the revival of industries and regions that haveearthquake, as well as support the recovery of disaster-

been affected by the Great East Japan Earthquake, we

stricken areas, by setting up organizations specialized inleverage Mizuho's comprehensive capabilities such as

promotion of these initiatives.

industry research functions, various finance functions
including joint initiatives between the public and private

Initiatives to Support Victims
among Individual Customers

sectors, trust functions and consulting functions.
Moreover we have set up the Tohoku Fukko Desk
(Tohoku reconstruction desk) at our headquarters and

MHBK offers Disaster Recovery Loans for Great East

staffs have been dispatched to Sendai to promote sup-Japan Earthquake Victims with a view to being useful toport activities for local companies, regional financial insti-

the recovery efforts of customers who were hit by thetutions and local public entities centered on Iwate, Miyagi

earthquake disaster. For individual customers dwelling inand Fukushima Prefectures. In August 2011, MHCB andregions designated under the Disaster Relief Act, we

MHBK invested in the Mizuho Tohoku Industry

respond flexibly to requests for deferments of payments

Development Fund, which was established to develop

of principal and interest associated with borrowings toindustry of the area via share acquisitions and otheracquire or refurbish homes. We also provide consulta-

forms of capital provision, to contribute to the recovery

tions concerning repayments of borrowings or housing

and medium-to-long term growth of the above threeloans at head office, all branches and some sub-branches

prefectures and other parts of the Tohoku Region.

throughout the country.

Initiatives to Support Disaster-stricken Areas

Initiatives to Support Victims
among Corporate Customers

Since May 2011, Mizuho has been promoting theMizuho Picture Book Project to donate picture books
provided by our employees to children affected by

In order to help the disaster reconstruction efforts of cor-

the Great East Japan Earthquake. To date, about

porate customers whose head offices, business or sales

12,000 books have been donated to kindergartens,

offices, factories and other buildings, machinery, equip-

elementary and secondary schools and individuals.

ment and other commercial facilities or products have

About 240 employees of Mizuho participated in vol-suffered damage from the disaster, MHBK and MHTB areunteer activities from summer to fall of 2011, clean-facilitating financing by offering Disaster Relief Support

ing up coasts and removing debris in Rikuzentakata

Funding and various policy loans provided by public insti-

City in Iwate Prefecture, Town of Shichigahama andtutions. In May 2011, they also set up the ¥200.0 billion

Kesennuma City in Miyagi Prefecture, the disaster-Business Reconstruction Assistance Fund. Furthermore,stricken areas. In addition, in August 2011, Mizuho

MHCB is supporting the business reconstruction not only

held the Support Eastern Japan Market, for the exhi-

for customers of Mizuho but also for customers ofbition and sale of local goods and products from theregional financial institutions through collaborations withdisaster-stricken areas to support their recovery. This

these institutions. We draw on the full range of expertise

event, held for employees and their family and friends,

offered by our group to provide support not only in fund-attracted approximately 2,600 visitors. Mizuho also

ing but also from various business and management per-held the Support Fukushima Fair at a company facility

spectives. Our services include introducing new cus-and offered food using ingredients from Fukushima

tomers to sale their products, suppliers, and business

Prefecture. Through business gratitude campaigns

partners to assist in rebuilding their businesses, and sup-and other campaigns aimed at individual customers,

porting customers' efforts for overseas expansion associ-Mizuho sent flowers, saplings, and school supplies toated with the relocation of their production sites.

disaster-stricken areas, sponsored summer festivals in
the Tohoku region, and conducted other initiatives.
29

Initiatives for Integrated
Group Management

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 June 30, 2012)
MHCB
Overseas branch or relevant office
Overseas representative office
Overseas subsidiary

MHTB

LondonOverseas subsidiary

Amsterdam

MHSC
Overseas subsidiary
Overseas representative officeDüsseldorf
Frankfurt

DIAM
Overseas subsidiaryBeijing

Luxembourg

Moscow

Brussels
ViennaParis
MadridTianjin

Qingdao

DalianNanjing

Seoul

Wuxi

Istanbul

Wuhan

ZurichTehran
Milan

Xiamen

New Delhi

BahrainShenzhen
Guangzhou

SuzhouShanghaiHong Kong

RiyadhTaipeiTaichung
Kaohsiung

Hanoi

Dubai
Mumbai

YangonManilaBangkok
Ho Chi Minh City
Kuala Lumpur
LabuanSingapore
Jakarta

Sydney*MHCB established the Istanbul Representative Office and started its business operations in February 2012.
*MHCB established the Yangon Representative Office and started its business operations in April 2012.
*MHCB received approval from the Reserve Bank of India to establish a new branch in Bangalore, India in May 2012 and is making preparations
to open the new branch by the end of April 2013.
*Mizuho Corporate Bank (China) received approval from the China Banking Regulatory Commission to begin preparations for establishment of
a new branch in Hefei, China in June 2012 and is making preparations to open the new branch by the end of March 2013.
*Mizuho Corporate Bank (China) received approval from the China Banking Regulatory Commission to begin preparations for establishment of
sub-branches in the Heping District of Tianjin and in Kunshan, China in July 2012 and is making preparations to open the two sub-branches by
the end of March 2013.

30

Chicago

TorontoBostonVancouver

Hoboken
New York

San Francisco

Atlanta
HoustonNassauCaymanLos Angeles

Mexico City

Network in Japan (As of March 31, 2012)
MHCB
Head Office and Branches: 18

MHBK
Head Office and Branches: 396
Sub-branches: 37

São PauloMHTBHead Office and Branches: 36
Sub-branches: 14

MHSC
Head Office and Departments: 3
Business Promotion Offices: 98

MHIS
Head Office and Branches: 56
Planet Booths*: 152*Planet Booths are the consulting boothsof MHIS located in MHBK's Branches

31

CSR Activities

Strengthening CSR Activities
Mizuho places CSR initiatives at the core of corporate activities for creating new corporate value and achieving sustainablegrowth. In particular, we are advancing efforts in our medium to long-term CSR key areas—Environmental Initiatives,
Support for Financial Education, and Enhance Corporate Governance.

Environmental Initiatives through Financial Services
In addition to promoting greenhouse gas reductions, Mizuho is working to strengthen its environmental initiatives
through its financial services.
As a loan product for SMEs and middle-market customers that practice or aspire to environmentally conscious
management, MHBK offers Mizuho Eco-assist plus, which is a level above existing loan products. Utilizing its highlevel of financial expertise, MHCB is also engaged in various environmental initiatives, such as participating in environmental city projects and supporting infrastructure improvements overseas.

Support for Financial Education
Lectures and Courses for Universities
We dispatch officers with ample hands-on expertise to give lectures on cutting-edge financial practices and othertopics. Lectures are held at Kyoto University, Keio University, the University of Tokyo, Hitotsubashi University, andWaseda University.

Practical Financial Education at Elementary, Junior High and High Schools
We newly developed a textbook and a DVD to be used practically in lessons through joint research with Tokyo Gakugei
University, and Mizuho employees also participate in lessons making use of our textbooks, glossaries and guidelines.

Multifaceted Barrier-free Initiatives
MHBK promotes multifaceted barrier-free initiatives through the Heartful Project to enable anyone to use its facilities and services easily. In March 2012, Hyogo Prefecture certified Kawanishi Branch as the first Hyogo Residents'
Universal Facility. To move these initiatives forward still further, MHBK has launched the Mizuho Heartful Businessinitiative to support corporate and individual customers who are making proactive efforts to respond to the problems of falling birthrates and an aging society. It also provides Mizuho Heartful Loans to corporate customers who
are actively engaged in offering products and services or employment opportunities for the elderly or disabled people.

Social Contribution Activities
With the intent of ensuring daily safe commutes for schoolchildren, we present Yellow Badges linked to traffic accident insurance to the first graders nationwide*. By the 48th campaign in fiscal 2011, accumulative total of 58.86 million badges had been delivered.
*In cooperation with Sompo Japan Insurance, Meiji Yasuda Life Insurance and The Dai-ichi Life Insurance.

32Brand Strategy

Brand Promise
In order to establish a brand that befits a global comprehensive financial services group, Mizuho is committed toearnestly acting upon the following pledge that it makes to its customers.
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
In order to meet our customers' needs and expectations, and to maintain competitiveness in the future, Mizuho aims tobecome a financial group that customers recognize as being “enterprising, open, and leading-edge.” These three terms
describe Mizuho's brand strength and underpin all Mizuho employees' actions in our efforts to help our customers realize
their dreams and create a better future for us all.

Brand Slogan

Mizuho's brand slogan captures the commitment we have to being “A financial partner that helps customers shape their
future and achieve their dreams.” The slogan expresses the role Mizuho will play, not only to realize today's dreams, butalso to discover new possibilities that lie ahead and to create a better future.

Sub Slogan

We aim to become “the most trusted financial institution.” The sub slogan established in September 2011 conveys
Mizuho's unified commitment to implementing the reforms necessary for us to achieve this goal.
Everything we do, we do for our customers. We remain committed to the ideals represented by our sub slogan as wework together as a group to implement the reforms necessary for us to achieve our goal of becoming “the most trusted
financial institution.”

33

Management Systems

Corporate GovernanceCorporate Governance Structure
MHFG maintains the following corporate governanceCorporate Governance Policy

structure.

We have been working to achieve a streamlined and nim-

• Board Members and Board of Directors

ble management structure while strengthening our cor-

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

porate governance by inviting outside directors to joinbers, determines important matters pertaining to the man-our board, etc. We will continue our efforts to enhance

agement policy of MHFG and its group companies andthe transparency and efficiency of our managementmonitors the business conduct of directors and executive

through corporate governance, with strict observance ofofficers. Three of the directors are outside directors that

all laws and regulations, pursuing our business activities

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

in a fair and honest manner that does not conflict with

Their participation serves to strengthen the management

the norms accepted by society.

and monitoring functions of the board of directors.

In addition, we established the Mizuho Code of

In addition, a Nomination Committee and a Compen-

Conduct which is a set of common values and ethicalsation Committee have been established to advise theprinciples shared by the corporate officers and employees

board of directors, each consisting of three outside andof the group.

one in-house (President & CEO of MHFG) members.

Social Responsibility and Public Mission:

Nomination Committee

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

The Nomination Committee discusses candidates forsibilities and public mission as Japan's leading compre-

directors and senior executive officers (including

hensive financial services group. We therefore work to

appointments of executive directors and representative

ensure that we maintain close communication with thedirectors) of MHFG, MHCB, MHBK and other group

communities in which we operate and pursue corporatecompanies (in descriptions of the Nomination

activities in a manner that is in harmony with societal

Committee and Compensation Committee hereunder,

expectations.

the “Mizuho companies”) by taking into consideration

Placing Our “Customers First”:

results of evaluations from third-party assessment insti-

We place our customers first and always offer the best

tutions and other factors, and the President & CEO ofservice possible. We believe that being trusted by our

MHFG reports the results of the discussions to thecustomers is the basis for the trust by our shareholders,board of directors of MHFG. The Board of directors ofsociety and all other stakeholders.

MHFG considers the results of the discussions by the

Strict Compliance with Laws, Regulations andNomination Committee in determining personnel mat-Internal Rules:

ters of directors and executive officers to ensure impar-

We are committed to strict observance of all laws andtiality, transparency and objectivity in matters of person-

regulations and pursuing our business in a fair and hon-nel decisions affecting directors and executive officers.

est manner that does not conflict with the norms accept-

In addition, the President & CEO of MHFG reports to,

ed by society. As a global financial services group, weand asks for opinions from, the Nomination Committee

also strive to respect the laws, customs and cultures ofon the process of evaluating candidates such as basic

the foreign countries in which we operate.

policy and appointment standard, etc., in connection

Respect for Human Rights:

with appointments of directors (excluding outside direc-

We respect the human rights of our customers, corporatetors) and executive officers for the Mizuho companies.

officers, employees and other individuals and strive toCompensation Committee

achieve a corporate culture that promotes human rights.

The Compensation Committee discusses basic policies

Disavowal of Anti-Social Elements:

in determining compensation and compensation sys-

We will firmly oppose the activities of any anti-social

tem, etc., for directors and executive officers of theelements that threaten the rule of law, public order

Mizuho companies, and the President & CEO of MHFG

and safety.

reports to the board of directors of MHFG and also
notifies the results of discussions to the Mizuho

34

companies. Each of the Mizuho companies considers

ALM & Market Risk Management Committee:

the results of discussions of the Compensation

Discusses, coordinates and measures performance ofCommittee of MHFG and determines the basic policy,

basic ALM policies, risk planning, fund procurementcompensation system and other matters in order toand investment, and market risk control.

secure transparency and objectivity of compensation toCompliance Committee:

directors and executive officers. In addition, theWith the participation of external experts (one lawyer

Compensation Committee receives reports from theand one certified public accountant (CPA)) as special

Mizuho companies as necessary in light of confirming

members, discusses and coordinates legal compliancethe status of compliance with Japanese and overseas

oversight, and matters related to antisocial elements

regulations on compensation and provides its opinion

and the handling of accidents.

to the Mizuho companies.

Information Security Management Committee:
Discusses and coordinates the promotion of policies on•

Corporate Auditors

information management, risk management pertaining

The Board of Corporate Auditors receives reports on

to information security, compliance with the Law

important issues about audit matters, discusses them andConcerning the Protection of Personal Information,

makes decisions. Three of the five corporate auditors are

and rules and regulations concerning information

outside corporate auditors, and one of the three outside

management.

corporate auditors is a financial expert who is a Japanese-

Disclosure Committee:

qualified certified public accountant.

Discusses, coordinates and measures performance of

The Corporate Auditors audit the performance of thebasic disclosure policies and controls.

directors' duties and review our business performance

CSR Committee:

and financial condition by attending board meetings andDiscusses and coordinates matters concerning the sta-other important meetings to receive reports on the busi-

tus of CSR related initiatives, key matters to beness from directors and other corporate officers, inspect-addressed, action plans and CSR reports.

ing important documents and receiving reports from the

Financing Facilitation Management Committee:

Internal Audit Division, subsidiaries and accounting audi-

Discusses and coordinates basic financing facilitation

tors, among others.

management policies and matters concerning the pro-•motion of financing facilitation management related

Execution of Duties

MHFG introduced the executive officer system in order toinitiatives.

separate managerial decision making and its implementa-

IT Strategy Promotion Committee:

tion and to clarify levels of authority and responsibility.

Discusses and coordinates basic policies on IT strate-

In respect of the execution of duties, the President &gies, IT-related investment plans and their operational

CEO manages MHFG according to the fundamental man-policies, unification of IT and computer systems within

agement policies determined by the board of directors.

the group, individual IT investment policies, manage-

MHFG has strengthened its governance of the group by

ment of computer systems projects and individual

clearly identifying the President & CEO of MHFG as thecomputer systems-related matters and information“Group CEO (Chief Executive Officer).” The Executive

technology risk management, and evaluates invest-

Management Committee was established to serve as anment results of IT-related investments.

advisory body for the President & CEO and discusses

Customer Protection Management Committee:

important matters concerning the execution of business

Discusses and coordinates basic policies on customer

operations as necessary. Business Policy Committees were

protection and other management and progress, etc.,

established to discuss cross-sectional issues as necessary.

of various measures in connection with customer protection and other management.

<Business Policy Committees>
Portfolio Management Committee:

Five other committees have been established sepa-

Discusses, coordinates and monitors basic portfolio

rately from the Business Policy Committees to deal with

policies and their implementation.

specific issues. These committees discuss, disseminate
35

Management Systems

information and promote policies concerning operations

Group from the groups which it audits and establish it asunder their jurisdiction as necessary.

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

Business Continuity Management Committee:

External experts in their field (consisting at present of

Discusses, disseminates information and promotes

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

basic Business Continuity Management policies.

Committee to strengthen the specialist nature and impar-

Human Rights Awareness and Promotion Committee:

tiality of the committee.

Discusses, disseminates information and promotes

The internal audit infrastructure MHFG has establishedpolicies concerning human rights initiatives.

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

Committee to Encourage Employment of People

to carry out internal audits based on the basic audit poli-with Disabilities:

cies and the internal audit regulations determined by the

Discusses, disseminates information and promotes

board of directors. It also checks the internal control struc-policies concerning the employment of handicapped

ture of the principal banking subsidiaries and other corepeople and securing their role in the workplace.

group companies* on the basis of the reports it receives

Social Contribution Committee:

from them of the results of internal audits and problems

Discusses, disseminates information and promotes

and issues that have been investigated by them. Thus, allpolicies concerning activities that contribute to society.

information on the status of the principal banking sub-Environmental Issues Committee:

sidiaries and other core group companies' internal audits

Discusses, disseminates information and promotes

is held and controlled by MHFG's Internal Audit Division.

policies concerning global environmental initiatives.

The results of both MHFG's and the principal banking
subsidiaries and other core group companies' internal• Internal Audit Function and Others

audits are reported to the Internal Audit Committee on a

The Internal Audit Committee fulfills an internal audit

regular basis and at other times as necessary by the headfunction under the President & CEO. The committee dis-of the Internal Audit Group who is the director withcusses and determines important matters concerning

responsibility for internal audits.

internal audit on the basis of the basic policy determined

The Internal Audit Division, Corporate Auditors andby the board and reports all decisions made by the com-the accounting auditors exchange opinions and informa-mittee to the board.

tion on a regular basis and as necessary to strengthen

To ensure independence of the internal audit function
from the audited sections, we separate the Internal Audit

cooperation so as to enhance effectiveness and efficiencyof the overall audit function.

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 Auditors

Supervision
Management
Executive Management
Committee

President & CEO(Group CEO)Internal Audit Committee
Includes outside advisors

Business Policy Committees

36

Strategic Planning Group,
Financial Control andAccounting Group, etc.

Internal Audit GroupReason for Adopting Current Corporate
Governance Structureof view, making use of their abundant business experi-

MHFG adopted the current corporate governance struc-their management experiences.

ences and their wide-ranging insights gained throughture since we believe that strengthening the manage-

Outside corporate auditors contribute to the mainte-

ment monitoring functions by inviting outside directors

nance and enhancement of the standard of MHFG's cor-and outside corporate auditors contributes to theporate governance by making use of their high degree ofstrengthening of our corporate governance and that thisexpertise gained through their experiences.

is appropriate for securing the confidence of sharehold-* Principal banking subsidiaries and other core group companies:

ers, investors and others.

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

Outside directors provide various guidance on the(As of June 26, 2012)

company's general management from an objective point

About “Substantive One Bank” Structure• With respect to the business promotion structure in

Prior to the effective date of the merger of MHCB andthe relationship management business, customer

MHBK, MHFG, MHCB and MHBK have started tosegments were reorganized into 6 units, theimplement the “substantive one bank” structure in

Corporate Banking Unit (Large Corporations), theApril 2012 to realize the synergies generated from the

Corporate Banking Unit, the Financial Institutions &merger as soon as possible.

Public Sector Business Unit, the Retail Banking Unit,

Specifically, we have (a) unified the corporate
planning and management units and (b) reorganized

the Personal Banking Unit and the International
Banking Unit.

the relationship management units, products units• Organizations that provided product functions wereand markets unit across the banks and establishedreorganized into three units, the Investment Banking

new units.

Unit, the Transaction Banking Unit and the Asset(1) Corporate Planning and Management UnitManagement Unit.

• The groups within the Corporate Planning and• Organizations that provided market functions wereManagement Unit were reorganized according toconsolidated into the Markets Unit across MHCB

their respective duties and functions, and in princi-

and MHBK.

ple, the executive officer in charge assumes the cor-

• In principal, the executive officer in charge of each

responding post at each of MHFG, MHCB andunit assumes the corresponding post at each of

MHBK concurrently.

MHCB and MHBK concurrently.

• In principle, the executive officer of MHFG in charge

Through the establishment of this new organiza-of the Corporate Planning and Management Unittional structure, Mizuho aims to maximize group prof-

concurrently serves as the vice executive officer initability by improving customer convenience, strength-

charge of MHTB.

ening group governance and improving group man-(2) Relationship Management Units, Products Units andagement efficiency.

Markets Unit

37

Management Systems

Profit Management System

policy, overall profit plans and resource allocations drawn
up by MHFG. At the same time, under “substantive one

Profit Management System in Accordance with
Customer Segmentation and Business Functions

bank” structure, MHCB and MHBK implement integrated
management of units across the two banks.

We aim to reinforce our financial strength by vigorously

The above group companies have also introduced theincreasing profitability and cutting costs. Centered onallocation of risk capital among each company or among

MHFG, we manage profits for the group based primarily

each unit across MHCB and MHBK, which is one of theon our principal banking subsidiaries and other core

most important management frameworks of the group.

group companies.

Each group company or each unit engages in business

More specifically, we have clarified the strategic posi-

activities within the limits of that risk capital and RAROC

tions of our principal banking subsidiaries and other coreis then used as a performance index to evaluate thegroup companies within the group on the basis of our

return on allocated risk capital.

group business portfolio strategy and, by bringing them

Basically, the group companies have adopted a com-closer together through the unifying force of MHFG, we

mon profit management system and framework, but inare seeking to maximize group corporate value.

actual operations, each adopts a flexible, rapid-action

Based on our principal banking subsidiaries and othercore group companies, MHFG is making efforts to optimize its business portfolio through the following:• formulating plans for gross profits, net businessprofits and net income, and carrying out performance management,

approach that is optimized for its individual businessmodels.
Glossary
RAROC (Risk Adjusted Return on Capital)
RAROC is a measure of the profitability of allocated capital and is used as anindex for assessing capital efficiency. RAROC is calculated by dividing riskadjusted profits (profits adjusted to reflect statistically expected risk) by capital.

• allocating management resources such as investments and expenses, personnel, risk capital and risk-

Consolidated Profit Management

weighted assets, andWhile each principal banking subsidiary or core group• risk controls and profitability assessments based oncompany works to enhance its own profitability, we man-the allocation of risk capital drawn from equity capi-

age their profits on a consolidated basis as a means oftal and other sources.

building a balanced, optimized business portfolio for the

Further, our principal banking subsidiaries and certain

entire group and improving capital efficiency.

other core group companies establish their own profit

Specifically, in addition to our principal banking sub-plans for and manage the performance of their respective

sidiaries and other core group companies, we formulatecompany's business group/units based on the management

profit plans and manage performance for the strategicallyProfit Management System

MHFG

important subsidiaries and include their profits with thoseof our principal banking subsidiaries and other coregroup companies.
(As of June 26, 2012)• Profit plans and performance management• Allocation of management resources• Risk controls and profitability assessments

MHCB, MHBK, MHTB and othercore group companies

Each company manages its own groups,
units and branches, etc. (MHCB and MHBK
implement integrated management of units)

Human Resources System
Vision for Human Resources: ROE on Human
Resources Investment
The group and its employees have set a shared vision forhuman resources as follows:“We promote the ‘ROE’ principle for human resources

Subsidiaries of the above group companies

with a view to lasting value creation and creating an attractive and fulfilling working environment for employees.”
In this vision, “ROE” stands for the following:38

Supporting Group-wide Career Development
ROE on Human Resources Investment

Responsibility:

Observe the principles of
independent judgement andself-accountability.

We have adopted various group-wide measures under our
education and training schemes to actively support
employees in their personal career development efforts.
One such measure offered to group employees is a sophisticated education program under the name Mizuho

Opportunity:

Provide equal opportunity.

University, which draws on external resources. The Mizuho
University framework encompasses “action learning,”

Employability:

Develop expertise to enhancecompetitiveness.

whereby participants spend around six months making
suggestions to top management on such topics as businessstrategies and marketing; short-term programs that allow
individual participants to select subjects such as business

Establishing a Corporate Culture Full of Vitality

and interpersonal skills; and programs inviting applications

We have established the following five values as theto study at graduate schools and educational institutions in

Mizuho Values, and we are committed to instilling these

Japan and overseas, or take up external assignments.

values in all employees of the group as the axis of theentire group's operational approach, through such initiatives as our 360-degree employee performance evalua-

Rejuvenating the Organization and Pursuing
Specialization

tion system*.

In January 2003, we launched an internal “job applica-

Mizuho Values(1) Possessing a “customer-first” corporate objective.
(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.
* Personnel evaluation scheme whereby personal evaluations of managers
involve subordinates and persons from other divisions with whom they haveclose working relationships.

tion system for branch general manager positions” toencourage the quick development and advancement ofyounger employees. As of May 31, 2012, we achieved adynamic rejuvenation of the organization by selecting 94
younger and mid-career applicants in their thirties andappointing them as branch general managers.
We also provide group-wide job application opportunities each year to encourage employees to enhance theircareers and acquire greater specialization, and offer a“rookies' career design program” for young employees

Enhancing Group-wide Synergy

as well as a job fair to improve people's understanding ofWith regard to employees, we aim to create personnel

what other people do within the group. These initiatives

who are capable of maximizing their expertise and speed

are all designed to give employees more control over theof operations in line with the business models of eachdirection of their careers.

group company. To enhance the synergies between grouppersonnel, we have adopted a uniform compensation

Positive Action Initiatives

system (a group-wide common platform for all humanWith the aims of invigorating our organization by proac-

resources) and are working to further enhance thetively recruiting women, and of improving the motivation

deployment of the right people in the right jobs throughof female employees, we have formulated a group-widecross-company personnel transfers and other schemes.

fundamental policy to increase the involvement ofFurthermore, to enhance collaboration between thewomen in every aspect of our operations, and as suchbanking, trust banking, and securities entities within theengage in positive action*.

group, in addition to cross-company personnel transfers we*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.

are also instituting “trust bank trainee” and “securities
trainee” programs. These programs are designed to develop
personnel with a high degree of expertise and strengthen
the quality of personnel, with a focus on young employees,
sent overseas as we work to accelerate our global strategy.

Note: Content appearing in this section describes the group's human resources
system in Japan.
(As of June 26, 2012)39

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 have also establisheddefine compliance as “the strict observance of all laws

compliance structures adapted to the characteristics ofand regulations and the pursuit of fair and honest corpo-

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, MHBK and
MHTB each generally oversees compliance matters of theCompliance Activities

respective company, and such chief executive officers also

We have established the Mizuho Code of Conduct

head their respective compliance committees at which(please refer to page 34), which sets forth clear andimportant matters concerning compliance are discussed.
The four 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 four 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))“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:Tsukiji Mitsui Bldg., Tsukiji 4-7-1, Chuo-ku, Tokyo
104-0045
Mizuho Accounting Hotline, c/o Daiichi Fuyo Law OfficeE-mail : kaikei-mizuho@daiichifuyo.gr.jp• When reported matters are within the scope of the
Chief Compliance Officer (CCO)(Compliance Division)
Every organizational unit
Compliance Officer/
Compliance Administrator

Head of each unit

MHCB, MHBK, MHTB and othercore group companies

Subsidiaries of the above group companies

40

reporting 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.

concrete standards of ethical behavior, and distributed it
to all directors, senior management and employees ofManagement of customer protection refers to thethe group so that they are well aware of its content andmanagement required for achieving the following

act accordingly.

from the perspective of improving the protection ofEach of our group companies has also prepared aour customers and improving customer convenience.

compliance manual, which serves as a practical guide-

1. Ensuring the adequacy and sufficiency of thebook for rigorous compliance enforcement and clarifies

explanation of transactions, products etc. as well

the laws and regulations that the group companies mustas the provision of information (explanation ofobserve in pursuing their business activities and the com-

products etc.) to customers regarding transac-

pliance activities they are required to follow.

tions and products.

We conduct compliance training for directors, senior

2. Ensuring the adequacy and sufficiency of han-management and employees so that they are fullydling customer consultations and complaints

acquainted with the contents of the manual. We moni-(customer service).

tor the status of compliance levels through self assess-

3. Ensuring the adequacy of the management ofments conducted by individual organizational units andcustomer information (customer information

monitoring conducted by the compliance division ofmanagement).
4. Ensuring the adequacy of managing customers

each company.
Every fiscal year, each of our group companies estab-and customer information in the event that ourlishes a compliance program, which contains concrete

operations are outsourced (management of

measures for compliance enforcement such as measures

outsourcing).

related to the management of the compliance frame-

5. Ensuring the adequacy of the management ofwork, training and assessments. Progress regarding theconflicts of interest refers to the management of

implementation of the compliance program is monitored

the measures to be taken in order to appropriately

every six months.

address various situations of conflicts of interest(As of June 26, 2012)that have stemmed from transactions with customers (management of conflicts of interest).

Management of Customer Protection
Structure
Basic Approach

Customer Protection Structure
Board of Directors
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.

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

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

Customer information
management

Customer service
management

Conflicts of interest
management

Outsourcing
management

MHCB, MHBK, MHTB and othercore group companies

described below, clarifying the group management structure as well as management methods, and ensuring that

Subsidiaries of the above group companies

each company draws up customer protection management regulations.
41

Internal Control Systems

In addition to designating the compliance division as

MHTB have concluded the basic contract for the imple-

the customer protection general management division,

mentation of dispute resolution procedures with theeach company establishes its own management structure

Japanese Bankers Association, which is a designated dis-by stipulating which divisions are in charge of manage-pute resolution institution as defined in Japan's Banking

ment of explanation of products etc., management of

Act. MHTB has also concluded the basic contract for thecustomer service, management of customer information,

implementation of dispute resolution procedures with the

management of outsourcing, and management of con-

Trust Companies Association of Japan, which is a desig-

flicts of interest (hereinafter customer management tasks).

nated dispute resolution institution as defined in Japan's

The chief executive officer of MHFG appoints officers

Trust Business Act and Act on Concurrent Operation, etc.

responsible for the general management of customerof Trust Business by Financial Institutions.

protection in order to promote appropriate management

The designated dispute resolution institution takes theof customer protection. The Compliance Division is insteps towards resolution from a fair and neutral perspec-

charge of general management and monitor manage-

tive in cases where the solutions to customers' com-ment of each customer management task. The division

plaints adopted by the three banks are not accepted.

responsible for each customer management task draws(As of June 26, 2012)

up and implement proposals concerning the management tasks under their jurisdiction. MHFG also provides
centralized monitoring and management of customer
protection management at the principal banking sub-Information Security Management
Systemsidiaries and other core group companies. The principal
banking subsidiaries and other core group companies

Basic Approachalso manage customer protection management at their

As the advanced information-telecommunication society

own group companies.

evolves and use of information increases exponentially,
appropriate protection of the informational assets held byApproaches to the Financial Alternative
Dispute Resolution (ADR) System

a company becomes a social responsibility, while appro-

In order to deal expeditiously, fairly and appropriatelyof the company's competitiveness. As a provider of com-with complaints, etc., from customers, MHCB, MHBK andprehensive financial services in Japan and abroad, we

The Designated Dispute Resolution Institution as
Defined in Japan's Banking Act which MHCB, MHBK
and MHTB Concluded the Basic Contract withThe Designated Dispute Resolution Institution:
the Japanese Bankers Association
Contact:
Advisory Center of the Japanese Bankers Association
Tel.: +81-(0)3-5252-3772

priate usage of the same assets becomes the foundation

believe that appropriate protection and use of informational resources are extremely important issues.
We are striving to strengthen our information security
management system, defining information security management as all acts associated with the appropriate protection and use of group informational assets. This
includes adopting information security management
measures to ensure the confidentiality, integrity andavailability of our informational assets, and responding to

The Designated Dispute Resolution Institution as
Defined in Japan's Trust Business Act and Act on
Concurrent Operation, etc. of Trust Business by
Financial Institutions which MHTB Concluded the
Basic Contract withThe Designated Dispute Resolution Institution:
Trust Companies Association of Japan
Contact:
Trust Consultation Center of the Trust Companies
Association of Japan
Tel.: +81-(0)3-3241-7335

42

requests for disclosure from “data subjects” (the people
to whom specific information pertains) concerning personal information.

Overview of the Information Security
Management System
We have clarified the group management system as wellas management methods for information security management, and each company has drawn up its own regulations concerning information security management.

We are also building an information security manage-

Regarding Customer Information* that complies withment system, stipulating that the compliance divisions ofJapan's Law Concerning the Protection of Personal

the individual companies are to act as information secu-

Information. We are also building a system to deal withrity management divisions.

requests for disclosure, and strengthening our safety

The chief executive officer of MHFG appoints a chief
information security officer who supervises planning, proposals and implementation in connection with overall
group information security management, and the information security management committee handles discus-

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.

sions and coordination of cross-divisional issues relating(As of June 26, 2012)

to overall group information security management. In
addition, the Information Security Management
Department has been established within the Compliance
Division to specialize in information security management

Strengthening Disclosure Controls andProceduresand provide centralized monitoring and control of theinformation security management situation at our princi-

Basic Principles

pal banking subsidiaries and other core group companies.

We aim to win the highest regard of our shareholders

The information security management situation at sub-and the market and to earn the trust of society as Japan's

sidiaries of our principal banking subsidiaries and otherleading comprehensive financial services group. For thiscore group companies is monitored and managed by ourreason, we place one of the highest management priori-principal banking subsidiaries and other core group com-ties on continuing to disclose information to our cus-

panies themselves. In every organizational unit, the head

tomers, shareholders, and investors both in and outsideof each unit is also responsible for information security

Japan in a fair, timely and appropriate manner, in ordermanagement, and an information security managementthat they may form proper judgments and appraisals of

officer is appointed to check on how information is han-the group. To achieve this aim, we observe applicable

dled and ensure that personnel are fully aware of anddomestic and international laws and regulations as well

well trained in safety management measures.

as stock exchange rules relating to corporate disclosure,

Based on this information security management system, we have drawn up and published the Privacy Policy
Information Security Management System
Board of Directors
Chief Executive Officer
(CEO)

MHFG
Executive
Management Committee
Information Security
Management Committee

and we establish and implement appropriate Disclosure
Controls and Procedures.

Outline of Disclosure Controls and Procedures• Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws
and regulations as well as stock exchange rules and to

Chief Information Security Officer(Division in charge: Information Security Management
Department, Compliance Division)

implement fair, timely and appropriate corporate disclo-Every organizational unit
Information
Head of each unit
Security Officer

process carried out by directors, officers and employees

sure. The Disclosure Controls and Procedures are theof our group and include internal controls designed toprovide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial state-

MHCB, MHBK, MHTB and othercore group companies

ments. We have established the basic principles underlying our Disclosure Controls and Procedures as well as ourinternal rules related to Disclosure Controls andSubsidiaries of the above group companies

Procedures that govern the management framework forthe entire group including group companies, and we
43Internal Control Systems

endeavor to establish, implement and continuously

Risk Management Structure

improve our Disclosure Controls and Procedures. Our disclosure committee is the principal management body that

Commitment to Risk Management

is responsible for discussing and exploring matters relating to Disclosure Controls and Procedures.

Basic Approach•

Evaluation of Effectiveness of Disclosure

Progress in financial deregulation and internationalization

Controls and Procedures

has led to growth in the diversity and complexity of bank-

Our Disclosure Controls and Procedures are documented,

ing operations, exposing financial institutions to various

and evaluation of the overall effectiveness of ourrisks, including credit, market operations, information

Disclosure Controls and Procedures is conducted regularly

technology, legal, settlement and other risks. We recog-

by reviewing the contents of such documentation andnize the conducting of operations tailored to the risks

their implementation. In addition, evaluation of theand managing such risks as a key issue relating to overall

effectiveness and appropriateness of Disclosure Controls

management. In order to implement our business strat-and Procedures is conducted through internal audits.

egy while maintaining our financial stability, we maintain•comprehensive risk management and control measures.

Others

We established a Code of Ethics for Financial Profession-

MHFG maintains basic policies for risk management

als to be observed by all directors and executive officers,

established by its board of directors that are applicable toas well as all managers and other employees within our

the entire group. These policies clearly define the kinds ofgroup who engage in financial reporting, accounting or

risks to be managed, set forth the organizational struc-disclosure. We have also developed the Internal Controls

ture and provide for the human resources training neces-and Audit Hotline, a system designed for obtaining con-sary for appropriate levels of risk management. The

cerns regarding questionable accounting or auditing mat-policies also provide for audits to measure the effective-

ters from both inside and outside the group (please referness and suitability of the risk management structure. In

to page 40).

line with these basic policies, we maintain various meas-

Moreover, we established Disclosure Policy which
includes basic principles regarding disclosure and frame-

ures to strengthen and enhance the sophistication of ourrisk management system.

work of disclosure controls and procedures, andannounce on our website as well as this annual review.

Risk Management Structure
Each of our subsidiaries adopts appropriate risk manage-

Disclosure Controls and Procedures System
Board of Directors
Chief Executive Officer
(CEO)

MHFG

ment measures for its business based on the size andnature of its risk exposures, while MHFG controls risk
management for the group as a whole. MHFG regularly

Disclosure Committee

receives reports and applications concerning the risk
management situation from our principal banking sub-Chief Financial Officer (CFO)(in charge of Disclosure Controls and Procedures)and Other Heads of Groups

sidiaries and other core group companies and gives themEvery organizational unit

principal banking subsidiaries and other core group com-

Head of each unit

Disclosure Control
Officer

appropriate instructions concerning risk management. Ourpanies each maintains its own system for managing various types of risk, regularly receiving reports on the statusof risk at their respective subsidiaries, and gives them

MHCB, MHBK, MHTB and othercore group companies

Subsidiaries of the above group companies(As of June 26, 2012)44

appropriate instructions concerning risk management.

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

MHFG
Report therisk management situation.

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

Give instructions
concerning
risk management.

Report the risk
management situation.

Subsidiaries
managed by theprincipal banking
subsidiaries andother core groupcompanies

Approach to the BIS Regulations

credit risk, we have been applying the Advanced

The BIS Regulations, the regulations for international

Internal Ratings-Based Approach, the most sophisticat-

standards of the health of banks first implemented in

ed of the three methods provided for by Basel II, from1992, have been revised in light of developments in

March 31, 2009. In addition, we have been applying

risk management methods in order to better reflect

the Advanced Measurement Approach for the calcula-

the actual substance of the risks. These amended reg-tion of operational risk from September 30, 2009. In

ulations, known as Basel II, focus on three main

March 2012, the Financial Services Agency publishedpoints. The first is minimum capital requirements relat-

revisions to its capital adequacy guidelines to be

ing to risk which should be maintained by banks, withapplied from March 31, 2013, which reflects certain

respect to which the calculation method for credit risk

rules in the Basel III text. We are currently preparing

was changed and operational risk was added. The sec-

for its phased-in implementation.

ond includes a supervisory review process with respect
to assessment of risks that cannot be fully addressed
through minimum capital requirements alone. The
third is market discipline allowing for assessment by
the market through appropriate disclosure. We haveobtained the necessary approvals from government
authorities on calculation methods for each type ofrisk and have been calculating capital adequacy ratios
based on Basel II from March 31, 2007, when the

Glossary
Advanced Internal Ratings Based (AIRB) Approach
AIRB is one of the calculation methods for credit risk assets provided for by
Basel II. Under AIRB, both probability of default and loss given default used
for calculation of credit risk assets are estimated by the bank's own internal
experiences.

Advanced Measurement 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.

Basel II was implemented in Japan. With regard to

General Concept of Risk Management

to keep risk within limits that are managerially acceptablein both qualitative and quantitative terms. In line with the

Basic Approachbasic policies relating to overall risk management laid

We classify our risk exposures according to the various

down by MHFG, companies within the group identify risk

kinds of risk, including credit risk, market risk, liquidity

broadly and take a proactive and sophisticated approachrisk and operational risk, and manage each type of risk

to risk management, including methodologies for opera-

according to its characteristics. In addition to managing

tions that involve exposures to multiple categories of riskeach type of risk individually, we have established a risksuch as settlement and trust businesses.

management structure to identify and evaluate overallrisk and, where necessary, to devise appropriate responses
45Internal Control Systems

Allocation of Risk Capital(Example)
MHCB *2

MHFG

Capital account, etc.

Principal
banking
subsidiaries
and othercore groupcompanies'
risk exposure
*1

MHCB
MHBK
MHTB

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

Allocated risk capital

The group's risk
exposure

The group's financial
strength

Credit risk
Market risk

Allocation toeach business unit

Equity risk
Operational riskGroupcompanies, etc.
MHBK

Other risk exposure
MHTB*1. Including risk exposures of the subsidiaries of the core group companies.
*2. Allocated to MHSC by MHCB with the approval of MHFG.

Risk Capital Allocation

instruments), as a result of deterioration in obligors'

We endeavor to obtain a clear grasp of the group's over-financial position. We have established the methods andall risk exposure and have implemented measures to keep

structures necessary for grasping and managing credit

such risks within the group's financial base in accordancerisk, which has become increasingly complex due towith the risk capital allocation framework. More specifi-

financial deregulation, internationalization and the grow-cally, we allocate risk capital to our principal banking sub-ing sophistication of transactions. MHFG manages credit

sidiaries, including their respective subsidiaries, and otherrisk for the group as a whole. More specifically, we havecore group companies to control risk within the limits set

adopted two different but mutually complementaryfor each company. We also control risk within manageri-

approaches in credit risk management. The first approachally acceptable limits by working to ensure that the over-is “credit management,” in which we manage theall risk we hold on a consolidated basis does not exceed

process for each individual transaction and individual

shareholders' equity and other measures of financial

obligor from execution until collection, based on ourstrength. To ensure the ongoing financial health ofassessment of the credit quality of the customer. Through

MHFG, our principal banking subsidiaries and other core

this process, we curb losses in the case of a credit event.

group companies, we regularly monitor the manner in

The second is “credit portfolio management,” in which

which risk capital is being used in order to obtain a

we utilize statistical methods to assess the potential for

proper grasp of the risk profile within this framework.

losses related to credit risk. Through this process, we

Reports are also submitted to the board of directors andidentify credit risk and respond appropriately.

other committees of each company. Risk capital is allocated to MHCB, MHBK, MHTB and MHSC by risk cate-

Credit Risk Management Structure

gory, and is further allocated within their respective• Credit Risk Management of MHFG

business units based on established frameworks.

Our board of directors determines the group's key matters pertaining to credit risk management. In addition,

Credit Risk Management

the portfolio management committee of MHFG discusses
and coordinates the basic policies in connection with46

Basic Approachcredit risk management and matters in connection withWe define credit risk as the group's exposure to the risk

overall credit portfolio management and credit risk moni-of losses that may be incurred due to a decline in, or total

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

loss of, the value of assets (including off-balance-sheet

officer of MHFG, the Risk Management Division and theCredit Risk Management Division jointly monitor, analyze

regarding its risk management situation to MHFG. Eachand submit suggestions concerning credit risk and formu-

credit division determines policies and approves/disapproveslate and execute plans in connection with basic mattersindividual transactions in terms of credit review, credit

pertaining to credit risk management.

management and collection from customers in accor-• Credit Risk Management at Our Principal Banking

dance with the lines of authority set forth by each princi-

Subsidiaries and Other Core Group Companies
Our principal banking subsidiaries and other core grouppal banking subsidiary. In addition, from the standpoint ofcompanies manage their credit risk according to the scalesidiaries has established internal audit divisions that are

and nature of their exposures in line with basic policies set

independent of the business divisions in order to ensure

forth by MHFG. The board of directors of each company

appropriate credit risk management.

internal controls, each of our principal banking sub-determines key matters pertaining to credit risk management. Their respective business policy committees are

Individual Credit Management

responsible for discussing and coordinating overall man-

• Credit Codes

agement of their individual credit portfolios and transac-

The basic code of conduct for all of our officers andtion policies towards obligors. The chief risk officer of

employees engaged in the credit business is set forth ineach principal banking subsidiary and core group com-our credit code. Seeking to fulfill the bank's public andpany is responsible for matters relating to planning andsocial role, our basic policy for credit business is deter-

implementing credit risk management. The credit risk

mined in light of fundamental principles focusing on pub-management division of each principal banking subsidiary

lic welfare, safety, growth and profitability.

is responsible for planning and administering credit risk

• Internal Rating Systemmanagement and conducting credit risk measuring and

One of the most important elements of the risk manage-

monitoring, and such division regularly presents reports

ment infrastructure of our principal banking subsidiaries
is the use of an internal rating system that consists of

Credit Risk Management Structure

credit ratings and pool allocations. Credit ratings consist

MHFG

Board of Directorsof obligor ratings which represent the level of credit riskof the obligor, and transaction ratings which represent

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

Executive Management
Committee

the possibility of ultimately incurring losses related to

Portfolio Management
Committee

each individual claim by taking into consideration thenature of any collateral or guarantee and the seniority of
the claim. In principle, obligor ratings apply to all obligors

Risk Management Division, Credit Risk Management Division

and are subject to regular reviews at least once a year toreflect promptly the fiscal period end financial results of•Set risk management policies•Give instructions concerning
risk management•Report the risk
management situation

ever the obligor's credit standing changes. This enables

Principal banking subsidiaries andother core group companies
MHCB

MHBK

the obligors, as well as special reviews as required when-

MHTB

Other coregroup
companies

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 be
an initial phase of the self-assessment process regarding
the quality of our loans and off-balance-sheet instru-

Board of Directors

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

Principal Banking
Subsidiaries

ments, such obligor ratings are closely linked to the obligor classifications and are an integral part of the process

Executive Management
Committee

for determining the reserves for loan losses and write-offs

Business Policy Committees

in our self-assessment of loans and off-balance-sheet

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

instruments (Please refer to Connection between Obligor
Ratings, Definition of Obligor Classifications of SelfAssessments, Claims Disclosed under the FRL and NonAccrual, Past Due & Restructured Loans).
47

Internal Control Systems

Pool allocations are applied to small claims that are

our approach to obligor ratings and pool allocations once

less than a specified amount by pooling customers anda year in accordance with predetermined procedures.

claims with similar risk characteristics and assessing and• Self-assessment, Reserves, Off-balance-sheet

managing the risk for each such pool. We efficiently

Instruments and Write-offs

manage credit risk and credit screening by dispersing a

We conduct self-assessment of assets to ascertain the sta-sufficient number of small claims within each pool. We

tus of assets both as an integral part of credit risk man-generally review the appropriateness and effectiveness ofagement and in preparation for appropriate accounting

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

Category I(NonCategorized)

Category II

Category III

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

Obligors whose certainty of debt fulfillment

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

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 aresult of their poor or unstable businessconditions.

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

Claims forSpecialAttention

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

Credit given to
Credit toIntensive Conobligors which
trol Obligors
Claims withhas pledgedother than thoseCollection
collateral or is
included in CatRisk
covered 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
CredittoBankered 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

48

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.

treatment, including reserves for loan losses and off-

and acquisitions, taking advantage of our group-widebalance-sheet instruments and write-offs. During theresources. These efforts have been steadily producing sat-process of self-assessment, obligors are categorized into

isfactory results. In addition, we work on final disposal ofcertain groups taking into consideration their financial

non-performing loans efficiently and swiftly by conduct-condition and their ability to make payments, and credit

ing bulk sales and by utilizing Mizuho Servicing, our sub-ratings are assigned to all obligors, in principle, to reflectsidiary that specializes in performing debt collection

the extent of their credit risks. The related assets are thenservices for our group companies.

categorized into certain classes based on the risk of
impairment. This process allows us to identify and control

Portfolio Management

the actual quality of assets and determine the appropriate• Risk Measurement

accounting treatment, including reserves for loan losses

We use statistical methods to manage the possibility ofand off-balance-sheet instruments and write-offs.

losses by measuring the expected average loss for a one-Specifically, the credit risk management division of eachyear risk horizon (Expected Loss), the maximum lossof our principal subsidiaries is responsible for the overall

within a certain confidence interval (“credit Value-at-Risk

control of the self-assessment of assets of the respective(VaR)”). The difference between expected loss and creditbanking subsidiaries, cooperating with the administrative

VaR is measured as the credit risk amount (Unexpecteddivisions specified for each type of asset, including loan

Loss).

portfolios and securities, in executing and managing

In establishing transaction spread guidelines for credit

self-assessments.

transactions, we aim to ensure an appropriate return from• Credit Review

the transaction in light of the level of risk by utilizing

Prevention of new non-performing loans through routine

credit cost data as a reference. Also, we monitor ourcredit management is important in maintaining the qual-credit portfolio from various perspectives and set certain

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

limits so that losses incurred through a hypothetical real-

sis and screening of each potential transaction within theization of the full credit VaR would be within the amountrelevant business division. In case the screening exceedsof risk capital and loan loss reserves.

the authority of the division, the credit division at headquarters carries out the review. The credit division has
specialist departments for different industries, business

Loss Distribution
Frequency
Averagesizes and regions, carries out timely and specialized
examinations based on the characteristics of the customer and its market, and provides appropriate advice toThis 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.

the business division. In addition, in the case of obligors
with low obligor ratings and high downside risks, thebusiness division and credit division jointly clarify their

Loss Amountcredit policy and in appropriate cases assist obligors at an
early stage in working towards credit soundness.

• Collection and Disposal of Non-performing Loans

Credit VaR
Expected
Loss

Unexpected Loss

With respect to collection and disposal of non-performing
loans, our specialist unit maintains central control and• Risk Control Methods

pursues corporate restructuring or collection efforts, as

We recognize two types of risk arising from allowing too

appropriate, toward taking the non-performing loans off-large a proportion of overall credit risk to be allocated inbalance. Specifically, we believe that supporting thecertain areas. One type is “credit concentration risk,” which

restructuring efforts of corporations is an important rolestems from granting excessive credit to certain individual

for financial institutions, and we support corporations

counterparties. The other type is “chain-reaction default

undergoing restructuring by reviewing business plans,

risk,” which arises from granting excessive credit to certain

advising on restructuring methods and utilizing corporate

corporate groups, industrial sectors and other groupings.

restructuring schemes such as divestitures and mergers

We make appropriate management to control these risks
49

Internal Control Systems

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital
Credit concentration risk

1 Individual company credit guidelines

MHCB: Sets 1 , 2 , 3 , 4
MHBK: Sets 1 , 2 , 4
MHTB: Sets 1 , 2 , 4Chain reaction default risk

Control

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

in line with our specific guidelines for each. The individual

middle-market corporations, public sector entities andrisk management divisions of our principal banking sub-other customers in Japan. While retaining the principal

sidiaries are responsible for monitoring adherence tofeatures of each of the two banking subsidiaries' respec-these guidelines and reporting to their respective busi-

tive portfolios, we aim to reduce expected losses while

ness policy committees (please refer to Allocation of Risk

simultaneously utilizing sophisticated financial tools

Capital and Control of Credit Risk).

based on which they make strategic acquisitions and•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
and foreign exchange rates. Our definition includes therisk of losses incurred when it becomes impossible to exe-

MHCB's Credit Portfolio

cute transactions in the market because of market confu-

Othersion or losses arising from transactions at prices that are

Asia

significantly less favorable than usual. We define liquidity
Japan

Europerisk as the risk of losses arising from funding difficulties
due to a deterioration in our financial position that makes

North
America

it difficult for us to raise necessary funds or that forces us
to raise funds at significantly higher interest rates thanusual. MHFG manages market and liquidity risk for thegroup as a whole.

MHBK's Credit Portfolio
Publicsector entities

Other

Individuals

Market Risk Management Structure
Domestic SMEs
and middle-market
corporations• Market Risk Management of MHFG
Our board of directors determines key matters pertaining
to market risk management policies. The ALM & market
risk management committee of MHFG broadly discusses
and coordinates matters relating to basic asset and liability
management policies, risk planning and market risk man-

(At March 31, 2012)50

agement and proposes responses to emergencies such assudden market changes. The chief risk officer of MHFG isstrength represented by capital, etc. The amount of risk

responsible for matters relating to market risk manage-

capital allocated to market risk corresponds to VaR andment planning and operations.

additional costs that may arise in order to close relevant

The Risk Management Division of MHFG is responsi-

positions. For trading and banking activities, we set limits

ble for monitoring market risk, reports and analyses,

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

proposals, setting limits and guidelines, and formulatingtion limits based on interest rate sensitivity as needed.

and implementing plans relating to market risk manage-

These limits are discussed and coordinated by the ALM

ment. The Risk Management Division assesses and man-

& market risk management committee, discussed further

ages the overall market risk of the group. It also receivesby the executive management committee, then deter-

reports from our principal banking subsidiaries and othermined by the chief executive officer. Various factors arecore group companies on their market risk management

taken into account including business strategies, historicalthat enable it to obtain a solid grasp of the risk situation,

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

submitting reports to the chief executive officer on a daily

tal and risk management systems), profit targets and thebasis and to our board of directors and the executive

market liquidity of the products involved.

management committee of MHFG on a regular basis.

• Market Risk Management at Our Principal

To manage market risk, we set limits that correspondto risk capital allocations according to the risk profiles ofBanking Subsidiaries and Other Core Group
Companies

our principal banking subsidiaries and other core group

Our principal banking subsidiaries, which account forcompanies and thereby prevent market risk from exceed-

most of the group's exposure to market risk, have formu-

ing our ability to withstand losses based on our financial

lated their basic policies in line with the basic policies
determined by MHFG. Their boards of directors deter-

Market and Liquidity Risk Management Structuremine important matters relating to market risk manage-

MHFG

ment while their chief executive officers are responsible

Board of Directors

for controlling market risk. Their respective business
Chief Executive Officer(CEO)
Head of Risk Management
Group (CRO)

Executive Management
Committee
ALM & Market Risk
Management Committee

policy committees, including their ALM & market risk
management committees, are responsible for overall
discussion and coordination of market risk management.
Specifically, these committees discuss and coordinate matters relating to basic asset and liability management poli-

Risk Management Divisioncies, risk planning and market risk management and•Set risk management policies•Approve limits•Give instructions concerning
risk management•Report the risk
management situation•Apply for limits

MHBKchanges. The chief risk officer of each subsidiary is responsible for matters pertaining to planning and implementing

Principal banking subsidiaries andother core group companies
MHCB

propose responses to emergencies such as sudden market

MHTB

Other
core groupcompanies

market risk management. Based on a common 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.
These companies have established specialized company-

Board of Directors

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

Principal banking
subsidiaries and othercore group companies

wide market risk management divisions to provide inte-

Executive Management Committee

and proposals, set limits and formulate and implement

ALM & Market Risk
Management Committee

plans relating to market risk management. The risk man-

Offices
Risk Management Division

Middle Offices
Front Offices

grated monitoring of market risk, submit reports, analyses

agement divisions of each company submit reports on thestatus of market risk management to their respective chief
executive officers and top management on a daily basis,and to their board of directors and executive management
committee on a regular basis. They also provide regular51

Internal Control Systems

reports to MHFG. To provide a system of mutual checks

responsible for matters pertaining to planning and con-and balances in market operations, they have establishedducting liquidity risk management, while the senior exec-

middle offices specializing in risk management that are

utives of the asset and liability management and trading

independent of their front offices, which engage in mar-units are responsible for matters pertaining to planningket transactions, and their back offices, which are

and conducting cash flow management.

responsible for book entries and settlements. When VaR is

The methodologies used for ensuring precise control of

not adequate to control risk, the middle offices manage

liquidity risk include the formulation of management

risk using additional risk indices, carry out stress tests andindices pertaining to cash flow, such as limits on funds

set stop loss limits as needed. They monitor their market

raised in the market. As with MHFG, the above-mentioned

liquidity risk for individual financial products in the market

companies have established classifications for the cash

while taking turnover and other factors into consideration.

flow affecting them, ranging from “normal” to “cause forconcern” and “critical,” and have established procedures

Liquidity Risk Management Structure

for cases which are deemed to fall into the “cause for• Liquidity Risk Management of MHFG

concern” or “critical” categories.

Our liquidity risk management structure is generally the

Each subsidiary has adopted stringent controls that callsame as the market risk management structure described

for the submission of reports on liquidity risk management

above. However, the head of the Financial Control &and cash flow management to the ALM & market risk

Accounting Group of MHFG is additionally responsible formanagement committee and other business policy com-matters relating to planning and running cash flow man-mittees, the executive management committee and theagement operations, while the Financial Planning Division

chief executive officer of each subsidiary.

is responsible for monitoring and adjusting the cash flow
management situation and for planning and implementing

Status of MHFG's Market Risk

cash flow management. Reports on the cash flow situa-• Value-at Risktion are submitted to the ALM & market risk management

We use the VaR method, supplemented with stress test-

committee, the executive management committee anding, as our principal tool to measure market risk. The VaR

the chief executive officer.

method measures the maximum possible loss that could

We measure liquidity risk using indices pertaining to

be incurred due to market movements within a certain

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

time period (or holding period) and degree of probability

Limits on liquidity risk are discussed and coordinated by(or confidence interval).

the ALM & market risk management committee, discussed

Trading Activities

further by the executive management committee andVaR related to our trading activities is based on the following:

determined by the chief executive officer. We have estab-• variance co-variance model for linear risk andlished classifications for the cash flow conditions affecting
the group, ranging from “normal” to “cause for concern”• confidence interval: one-tailed 99.0%;

and “critical,” and have established procedures for dealing• holding period of one day; andwith cases which are deemed to fall into the “cause for• historical observation period of one year.

concern” or “critical” categories. In addition, we have con-

The following tables show the VaR related to our trad-

structed a system under which we will be able to responding activities by risk category for the fiscal years endedsmoothly in the event of emergency situations that affect

March 31, 2010, 2011 and 2012 and as of March 31,

our funding by establishing action plans.

2010, 2011 and 2012:•

Liquidity Risk Management at Our Principal
Banking Subsidiaries and Other Core Group
Companies

The liquidity risk management structures of MHCB,MHBK and MHTB are generally the same as the aforementioned market risk management structures, but thesenior executives responsible for risk management are
52

Monte-Carlo simulation for non-linear risk;

activities excluding our strategically-held equity portfolio(billions of yen)
Fiscal 2009
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

Interest rate
Foreign exchange
Equities
Commodities
Total

Fiscal 2010
Daily average

Maximum

Minimum

At March 31

1.5
1.4
1.1
0.0
2.9

2.1
2.4
1.8
0.3
3.8

1.1
0.6
0.4
0.0
2.2

1.4
1.9
1.1
0.1
3.6

Daily average

Maximum

Minimum

At March 31

1.9
1.9
1.1
0.0
3.8

2.4
2.8
1.7
0.1
4.8

1.4
0.7
0.5
0.0
2.8

1.8
1.8
0.5
0.0
3.0

Interest rate
Foreign exchange
Equities
Commodities
Total

Foreign exchange
Equities
Commodities
Total

Fiscal 2011 VaR (Banking Activities)(VaR: billions of yen)

(%)

300

0.6

250

0.5

200

0.4

150

0.3

100

0.2
0.1

50
VaR
0

JGB Yield (5-Year)
0.0

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

Fiscal 2011
Interest rate

for the year ended March 31, 2012.

11.04.01
11.04.15
11.04.29
11.05.13
11.05.27
11.06.10
11.06.24
11.07.08
11.07.22
11.08.05
11.08.19
11.09.02
11.09.16
11.09.30
11.10.14
11.10.28
11.11.11
11.11.25
11.12.09
11.12.23
12.01.06
12.01.20
12.02.03
12.02.17
12.03.03
12.03.17
12.03.31

VaR by Risk Category (Trading Activities)

VaR (Banking Activities)(billions of yen)
Fiscal 2009 Fiscal 2010 Fiscal 2011 Change
As of fiscal year end
Maximum
Minimum
Average

167.0
255.6
160.2
206.4

211.3
227.6
137.8
188.6

263.7
282.5
210.3
249.4

52.3
54.9
72.5
60.8

The following graph shows VaR figures of our trading
activities for the fiscal year ended March 31, 2012:

Characteristics of VaR Model
VaR is a commonly used market risk management

Fiscal 2011 VaR (Trading Activities)

technique. However, VaR models have the following(VaR: billions of yen)7

shortcomings:

6
5• By its nature as a statistical approach, VaR estimates4

possible losses over a certain period at a particular3

confidence level using past market movement data.

2

Past market movement, however, is not necessarily a1good indicator of future events, particularly potential
11.04.01
11.04.15
11.04.29
11.05.13
11.05.27
11.06.10
11.06.24
11.07.08
11.07.22
11.08.05
11.08.19
11.09.02
11.09.16
11.09.30
11.10.14
11.10.28
11.11.11
11.11.25
11.12.09
11.12.23
12.01.06
12.01.20
12.02.03
12.02.17
12.03.03
12.03.17
12.03.31

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

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

VaR (Trading Activities)(billions of yen, except number of cases)
Fiscal 2009 Fiscal 2010 Fiscal 2011 Change

2.8
4.8
2.1
3.1

3.6
3.8
2.2
2.9

3.0
4.8
2.8
3.8

(0.6)
0.9
0.5
0.9

no cases1

2

1

As of fiscal year end
Maximum
Minimum
Average
The number of cases where
profits/losses exceeded VaR

market movements.

es that might occur beyond this confidence level.
• VaR does not capture all complex effects of various
risk factors on the value of positions and portfolios
and could underestimate potential losses.

• Interest Sensitivity Analysis
We also conduct interest sensitivity analyses of interest
risk, our main source of market risk. The following table

Non-Trading Activities

shows sensitivity to yen interest risk in our banking

The VaR related to our banking activities is based on theactivities as of the dates indicated. As shown in the table,same conditions as those of trading activities, but the

we have reduced overall sensitivity to the risk of future

holding period is one month.

increases in interest rates. Interest rate sensitivity (10 BPV)

The graph below shows the VaR related to our banking

shows how much net present value varies when interest
53

Internal Control Systems

rates rise by 10 basis (0.1%), and it explains the impact of

we carry out regular back tests to compare value-at-risk

interest rate movements on net present value when short-with assumptive profits and losses. Assumptive profits

and long-term interest rates behave differently.

and losses accounts for general market risk. The graphbelow shows daily value-at-risk of trading activities forInterest Sensitivity by Maturity

At March 31, (billions of yen)

Up to one year
From one to five years
Over five years
Total

2010

2011

2012 Change

(10)
(28)
(14)
(53)

(10)
(36)
(19)
(65)

(10)
(54)
(24)
(89)

(0)
(18)
(5)
(24)

the fiscal year ended March 31, 2012, and the corresponding paired distribution of profits and losses. We had twocases where profits or losses exceeded value-at-risk during the period.
Fiscal 2011 Back Testing• Stressed Value-at-Risk

Assumptive profit or loss (billions of yen)In December 2011, according to revisions to the Basel IImarket risk framework (commonly referred to as Basel2.5), a new capital charge based on the stressed value-atrisk (“stressed VaR”) for trading activities is added to themarket risk. The stressed VaR measurement is based on acontinuous 12-month period of significant financial stress.
Stressed VaR related to our trading activities is based on

6
5
4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)

0

1

2

3

4

5

VaR (billions of yen)

the following:• variance co-variance model for linear risk andMonte-Carlo simulation for non-linear risk;

Note: We conduct our back testing and assess the number of cases
where profits/losses exceeds VaR based on a 250 business day
year. The expected average number of instances where one-day
trading profits and losses exceeded VaR at the 99% confidence
level is five.

• confidence interval: one-tailed 99.0%;
Because the value-at-risk method is based on statisti-• holding period of one day; and• historical observation period of one year of signifiThe following table shows stressed VaR figures of our

As of fiscal year end
Maximum
Minimum
Averagethe market moves suddenly to levels that exceed theseassumptions. The stress testing methods we use include

trading activities for the fiscal years indicated:
Stressed VaR (Trading Activities)

cal assumptions, we conduct stress testing to simulate
the levels of losses that could be incurred in cases where

cant financial stress.

the calculation of losses on the basis of the largest fluctu(billions of yen)ations occurring over a period of more than five years andFiscal 2011

the calculation of losses based on market fluctuations

6.8
10.5
5.0
7.4

Note: Maximum, minimum and average figures in the above table have been
calculated for the period from October 1, 2011 to March 31, 2012.

occurring during historical market events. In addition, we
conduct stress testing based on a sharp drop in the priceof securitization and other products due to diminishedmarket liquidity. The table below shows the assumed
maximum loss results of stress testing in trading activities•

Strategically-held Equity Portfolio Management
Activities

We take the market risk management approach with use
of VaR and risk indices for strategically-held equity portfolio management activities as well as for trading activities and non-trading activities. The risk index forstrategically-held equity portfolio management for theusing the methods described above:
Fiscal 2011 Stress Testing
At March 31, 2012 (billions of yen)
Assumed maximum loss result calculated by stress testing(holding period: one month)

24.1

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)

14.7

fiscal year ended 31 March 2012, sensitivity of the54

strategically-held equity portfolio to the 1% change in• Outlier Criteria

equity index of TOPIX, was 24.0 billion yen.

As part of the capital adequacy requirements under Basel•II, the losses arising from a banking book in hypothetical

Back Testing and Stress Testing

In order to evaluate the effectiveness of market riskinterest rate shock scenarios under certain stress condi-

measurements calculated using the value-at-risk method,tions are calculated and compared with the sum of Tier 1

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

The higher of (i) VaR on the calculation date and (ii)book leads to an economic value decline of more than

the average of VaR for the preceding 60 business days

20% of the sum of Tier 1 and Tier 2 capital, we will be(including the calculation date) multiplied by a multiplica-

deemed an “outlier” and may be required to reduce thetion factor ranging from 3.00 to 4.00 that is determinedbanking book risk or adopt other responses. We measure

based on the number of times VaR is exceeded upon

losses arising from our banking book each month as aback testing; andpart of our stress tests.

The higher of (i) stressed VaR on the calculation date

The table below shows the results of calculations ofand (ii) the average of stressed VaR for the preceding 60

losses in the banking book in cases where interest ratebusiness days (including the calculation date) multiplied

fluctuations occur under stress conditions. The results ofby the same multiplication factor as used in the bullet

calculations of losses in the banking book show that they

point above.

are 6.2% of broadly-defined capital. Because the amountThe following table shows total market risk equivalentof risk on the banking book is therefore well under theas of the dates indicated calculated using the standard-

20% threshold and within controllable limits, we do notized measurement method and internal models:fall under the “outlier” category. The loss ratio to capitaldecreased from the previous fiscal year due mainly to the

Fiscal 2011 Market Risk Equivalent
At March 31, (billions of yen)decrease of the fluctuation range of interest rate shock
scenario for the fiscal year ended March 31, 2012.

At March 31, 2010
At March 31, 2011
At March 31, 2012
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

681.4
784.9
483.2
205.0
222.4
33.5

(billions of yen)
Broadlydefined Loss ratio
capital to capital

7,658.0
7,910.9
7,775.02012

ChangeCalculated using standardized
measurement method

84.5

68.4

(16.0)

Calculated using internal models

26.6
111.1

98.2
166.6

71.5
55.5

Total market risk equivalentFiscal 2011 Results of Calculations under the
Outlier Framework
Amountof loss

2011

8.8%
9.9%
6.2%

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.

Note: VaR and stressed VaR used to calculate market risk equivalent is basedon 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.

Operational 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.
We recognize that operational risk includes information
technology risk, operations risk, legal risk, human• Market Risk Equivalent

resources risk, tangible asset risk, regulatory change risk

In order to calculate the amount of capital necessary toand reputational risk. We have determined risk manage-

meet the capital requirements relating to market risk (thement policies concerning risk management structures and“market risk equivalent”), we apply internal models tomethods for each kind of risk. MHCB, MHBK, MHTB,

calculate general market risk (risks related to factors that

MHSC, MHIS and TCSB respectively manage operational

apply generally to the market, e.g., interest rates, foreignrisk in an appropriate manner pursuant to risk manage-

exchange rates) and the standardized measurement

ment policies determined by MHFG.

method to calculate specific risks (risks other than generalmarket risk, e.g., credit quality and market liquidity of an

Operational Risk Management Structure

individual security or instrument). In addition, our internal

MHFG, MHCB, MHBK, MHTB, MHSC, MHIS and TCSB

models are applied to trading transactions with market

share common rules for data gathering, and we measureliquidity based on the relevant holding period.

operational risk on a regular basis, taking into accountUnder the internal models, the market risk equivalentis expressed as the sum of ;possible future loss events and the changes in the businessenvironment and internal management.
55

Internal Control Systems

ment methods and systems to appropriately identify,

Definition of Risks and Risk Management
Methods

assess, measure, monitor and control the operational

As shown in the table below, we have defined each com-risks which arise from the growing sophistication andponent of operational risk and we apply appropriate risk

diversification of financial operations and developments

management methods in accordance with the scale andrelating to information technology by utilizing control

nature of each risk.

We have established and are strengthening manage-self-assessments and improving measurement methods.

Measurement of Operational Risk Equivalent

Glossary
Control Self-Assessments
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

MHFG

Board of Directors
Chief Executive Officer(CEO)

Executive Management
Committee

Approach
We have been implementing the Advanced Measurement
Approach (AMA) from September 30, 2009, in place ofthe gross profit allocation approach (The Standardized
Approach (TSA)) that we had been using previously, forthe calculation of operational risk equivalent in association with capital adequacy ratios based on Basel II.
However, we use the Basic Indicator Approach (BIA) for
entities that are deemed to be less important in the meas-

Senior executive officers
responsible for each typeof risk management

urement of operational risk equivalent and for entities

Operational risk management(Risk Management Division)

IT risk management
division
Operations risk
management division• Implementation of Advanced Measurementthat are preparing to implement the AMA. The measurement results under the AMA are used not only as theoperational risk equivalent in the calculation of capital

Divisions
responsible foreach type of risk
management

adequacy ratios but also as Operational VAR for internalrisk management purposes for implementing action plansto reduce operational risk, etc.

• Outline of the AMA
Outline of Measurement System
We have established the model by taking account of four•Set risk management policies•Give instructions concerning
risk management•Report the risk
management situation

elements: internal loss data; external loss data; scenario
analysis and business environment; and internal control
factors (BEICFs). A statistical approach (one year holding

MHCB, MHBK, MHTB,MHSC, MHIS and TCSB

period/one-tailed 99.9 percentile confidence interval) istaken for the calculation of operational risk equivalent,
employing both internal loss data (i.e., actually experienced operational loss events) and scenario data toreflect unexperienced potential future loss events in themeasurement.
In the measurement of operational risk equivalent asof March 31, 2012, we did not exclude expected losses
and also did not recognize the risk mitigating impact of
insurance. In addition, we did not take into account theevents related to credit risk in measuring operational risk
equivalent.
Outline of Measurement Model
Operational risk equivalent is calculated as a simple sumof those related to the seven loss event types defined byBasel II, large-scale natural disasters and litigation. In the56

Definition

Principal Risk Management Methods

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

• Identify and evaluate the risk by setting specific standards that need to be complied withand implementing measures tailored based on evaluation results to reduce the risk.
• Ensure ongoing project management in systems development and quality control.
• Strengthen security to prevent information leaks.
• Improve effectiveness of emergency responses by improving backup systems and holding drills.

Operations Risk

Risk that customers may suffer service disruptions, as well as the risk that customers or thegroup may incur losses because senior executives
or employees fail to fulfill their tasks properly,
cause accidents or otherwise act improperly.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation and centralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

Legal Risk

Risk that the group may incur losses due to violation of laws and regulations, breach of contract, entering into improper contracts or otherlegal factors.

• Review and confirm legal issues, including the legality of material decisions, agreements
and external documents, etc.
• Collect and distribute legal information and conduct internal training programs.
• Analyze and manage issues related to lawsuits.

Information
Technology Risk

Human Resources
Risk

Tangible Asset Risk

Regulatory Change
Risk

Reputational Risk

Risk that the group may incur losses due to drain
or loss of personnel, deterioration of morale,• Conduct employee satisfaction surveys.
inadequate development of human resources,• Understand the status of vacation days taken by personnel.
inappropriate working schedule, inappropriate• Understand the status of voluntary resignations.
working and safety environment, inequality or
inequity in human resource management or discriminatory conduct.
Risk that the group may incur losses from damage to tangible assets or a decline in the qualityof working environment as a result of disasters,
criminal actions or 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 or othappropriate to its scale and nature.
ers learn about, or the media reports on, various• Swiftly identify rumors and devise appropriate responses depending on the urgency andadverse events, including actual materialization
possible impact of the situation to minimize possible losses.
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 the above
components of operational risk, as operational risk.

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)57

Internal Control Systems

measurement of operational risk equivalent as of MarchDistribution and Loss Severity Distribution. In the meas-

31, 2012, we did not reflect the correlation effects

urement process, we assume that final decisions will be

among operational risk related to each of the seven loss

made on all litigation within one year.

event types.

Verification

Operational Risk by the Loss Event TypeWe confirm the appropriateness of the measurement

Loss Distribution (Compound Poisson Distribution)model by verifying it, in principle, semi-annually.

Approach (LDA) is adopted for the calculation of opera-• Scenario Analysis

tional risk. LDA is based on the assumption that Poisson

Outline of Scenario Analysis

Distribution applies to the occurrence frequency of oper-

In the process of scenario analysis, scenario data is cre-ational risk events, and loss severity is expressed throughated as numerical values of occurrence frequency anda separate distribution. Operational risk is calculated forloss severity reflecting external loss data and BEICFs, ineach of the seven loss event types employing both inter-order to estimate unexperienced potential future opera-

nal loss data, based on our actual experience as opera-

tional risk events (of low frequency and high severity).

tional loss events and scenario data. Scenario data,

As for external loss data, we refer to data publicly

expressed as numerical values of occurrence frequency

reported by domestic and overseas media, and such data

and loss severity, reflects external loss data and BEICFs, inare reflected in the estimation of occurrence frequency

order to estimate unexperienced potential future loss

and loss severity distribution in the process of scenario

events (of low frequency and high severity).

analysis. In addition, BEICFs are utilized as indices toFrequency Distribution and Severity Distribution are
estimated employing the above mentioned internal loss

adjust occurrence frequency and loss severity distribution
in the process of scenario analysis.

data and scenario data, and Monte-Carlo simulations are

We categorize scenario analysis into four approaches

then applied to these distributions to measure opera-

in accordance with the characteristics of each loss event

tional risk. The detailed steps of creation of scenario data

type and risk management structures.

are explained later in Scenario Analysis.

Approach

Loss event type(s) to be applied

A

Internal fraud/External fraud/Customers, products & business practices/Execution, delivery & process management

Estimation of “Frequency Distribution” and “LossSeverity Distribution”
Frequency Distribution is estimated by applying information on occurrence frequency of both internal loss data

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failureand scenario data to Poisson Distribution. Loss Severity

58

Distribution is generated as the result of combining,

At MHFG, loss event types to which Approach A is

through a statistical approach (Extreme Value Theory), of

applied account for a considerable amount of operational

the actual distribution for the low severity distribution

risk. The detailed process of Approach A is explained

portion created by internal loss data and another loss dis-below as a typical example of scenario analysis.

tribution (Log-normal Distribution or Generalized Pareto

Setting Units for Scenario Analysis

Distribution) for the high severity distribution portion

In order to ensure completeness and sufficiency, we set

created by scenario data.

units that are commonly applied across group entities

Operational Risk of Large-scale Natural Disasters

that adopt AMA (the Group Entities) by referencing andMonte-Carlo simulation is applied to the datasets

categorizing risk scenarios recognized through control

expressed as a combination of the probability of occur-

self-assessment, internal loss data of the Group Entities

rence of large-scale natural disasters and the probableand external loss data, etc. Then each of the Group

loss amount in case of such occurrence, as opposed to

Entities selects the unit on which scenario analysis isestimating Frequency Distribution and Loss Severity

conducted from the units established on a groupwide

Distribution.

basis in accordance with its business activities and opera-

Operational Risk of Litigation

tional risk profile.

Each litigation is converted into data according to the

Estimation of Occurrence Frequency

profile of the individual litigation to which Monte-Carlo

Basic occurrence frequency (once a year) is calculated for

simulation is applied, as opposed to estimating Frequency

each scenario analysis unit. If a certain scenario analysis

unit has relative internal loss data of a pre-determinedthreshold amount or above, its basic occurrence frequency is calculated based on such data, and if not, thebasic occurrence frequency (the occurrence frequency per
year of losses at or above a pre-determined threshold) is
calculated with reference to the situation of occurrenceof internal loss data of less than the threshold amountand/or external loss data. The basic occurrence frequency
is then adjusted within a pre-determined range for the
purpose of reflecting the most recent BEICF to determine
the final occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate loss severity distribution, we use apre-determined series of severity ranges. Basic loss severity distribution is calculated for each scenario analysis
unit as an occurrence ratio (in percentile figures) of loss
at each severity range when losses at or above a predetermined threshold occurred, with reference to transaction amount data, external loss data, etc. Then thebasic severity distribution is adjusted, if necessary, fromthe viewpoint of statistical data processing to determine
the final loss severity distribution.
Creation of Scenario Data
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
Final loss severity distribution
Severity range (billions of yen)
0.1

0.5

1

5

Occurrence ratio (%)

40

30

15

10

5

100

Occurrence frequency (times)

0.4

0.3

0.15

0.1

0.05

1

10 Total

Final occurrence frequency(As of June 26, 2012)59

Internal Control Systems

Internal Audit Structure

Auditing Office at MHTB) to conduct internal audits attheir respective domestic and overseas business offices,

Basic Approachhead office divisions and group companies. Specifically,

Internal audits are designed as an integrated process,the internal audit divisions assess the suitability and effec-

independent from other business operations, for evaluat-

tiveness of business activities associated with complianceing the extent to which internal control achieves its objec-

and risk management. The credit review divisions (Credit

tives in key areas, including appropriate risk management,

Assessment and Auditing Office at MHTB) audit credit

efficient and effective business operations, reliable finan-

ratings and the status of credit management in addition

cial reporting and compliance with laws, regulations andto auditing the self-assessment of assets to verify theinternal rules. We conduct internal audits from an objec-

accuracy and suitability of matters deemed necessary totive and comprehensive standpoint, independent of oper-

assure the soundness of assets.

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

recommendations in connection with any problems that

Other core group companies have also established effec-

may be identified. Through this process, internal audits

tive and efficient internal audit structures adapted to theassist the boards of directors of each of our group com-characteristics of their respective 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, MHTB 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, MHBK and MHTBMHCB, MHBK and MHTB have also established internal
audit committees that are independent of their otherbusiness operations.
The three banks have established internal audit divisions and credit review divisions (Credit Assessment and60(As of June 26, 2012)

Senior Executives

Mizuho Financial Group

Ryusuke Aya

Takeo Nakano*

Executive Officer

Deputy President

Board of Directors

General Manager of Risk Management Division

Takashi Tsukamoto

Junichi Shinbo

Chairman

Yasuhiro Sato*
President & CEOGroup CEO

Junichi Nishizawa*

Executive Officer

Yasuhiro Sato
Director

General Manager of Portfolio Management DivisionCorporate Auditors

Haruki Nakamura

Yuta Chiba

Executive Officer

Corporate Auditor

General Manager of IT & Systems Planning Division

Yoshinobu Shigeji

Deputy President

Koji Fujiwara

Head of Human Resources Group, Head of Internal
Audit Group / Chief Human Resources Officer(CHRO) / Chief Auditor (CA)

Executive Officer
General Manager of Investor Relations Division

Masaaki Kono*

Executive Officer

Managing Director

General Manager of Executive Secretariat

Corporate Auditor

Mizuho Corporate Bank

Mizuho Trust & Banking

Managing Director

Board of Directors

Board of Directors

Head of Financial Control & Accounting Group /Chief Financial Officer (CFO)

Yasuhiro Sato*

Norimasa Kuroda

Head of Strategic Planning Group / Chief Strategy
Officer (CSO)

Hideyuki Takahashi*

Daisaku Abe*Managing Director
Head of IT & Systems Group, Head of Operations
Group / Chief Information Officer (CIO) / Chief
Operations Officer (COO)

Ryousuke Joukou

Corporate Auditor

Isao Imai
Corporate Auditor

Toshiaki Hasegawa

President & CEO

Chairman

Mitsuhiro Nagahama*Takashi Nonaka*

Deputy President

President & CEO

Tetsuo Hiramatsu*

Nobutake Nishijima*

Deputy President

Deputy President

Akihiko Nomiyama

Head of Internal Audit Group

Motoo Nagai*

Director

Mikito Nagai*

Deputy President

Mitsuo Ohashi

Deputy President

Director

Nobuhide Hayashi*

Kanemitsu Anraku

Managing Director

Director

Head of International Banking Unit

Mizuho Securities
Board of Directors

Corporate Auditors

Corporate Auditors

Hiroshi Motoyama

Yoshinobu Shigeji

Nobukatsu Funaki

Hideo Abe*

Corporate Auditor

Corporate Auditor

Toshinari Iyoda

Toshinari Iyoda

Corporate Auditor

Corporate Auditor

Masahiro Seki

Isao Imai

Corporate Auditor

Corporate Auditor

Masami Ishizaka

Toshiaki Hasegawa

Corporate Auditor

Corporate Auditor

Isao Imai

Executive Officers

Corporate Auditor

Executive Officers
Yasunori Tsujita
Managing Executive Officer
In charge of Strategic Planning Group

Masakane Koike
Managing Executive Officer
Head of Risk Management Group, Head ofCompliance Group / Chief Risk Officer (CRO) / Chief
Compliance Officer (CCO)

Kazunori Hashimoto
Executive Officer

Shinya Wako
Managing Executive Officer
Head of the Americas

Atsushi Narikawa
Managing Executive Officer

Executive Officer

Hidetake Nakamura*
Deputy President

Hajime Saito*
Deputy President

Kenichi Minamitani*
Deputy President

Mizuho Investors Securities
Board of Directors
Katsuyoshi Ejima*
President

Shuzo Fujii*

Hiroshi Suehiro

Deputy PresidentManaging Executive Officer
Head of Asia & Oceania excl. East Asia

Kiyoshi Miyake
Managing Executive Officer
Head of East Asia

Mizuho Bank

General Manager of Group Planning Division

Board of Directors

Tetsuo Iimori

Takashi Tsukamoto*Executive Officer

President & CEO

General Manager of Corporate Planning Division

Masatoshi Yano*

Mitsuo Ootani

Deputy President

Executive Officer

Makio Tanehashi*

General Manager of Compliance Division

Deputy President

Head of Europe, Middle East and Africa

General Manager of Group Human Resources Division

Tatsufumi Sakai

President

Deputy President

Notes:1. *Indicates the Directors concurrently serving as
Executive Officers.
2. Executive Officers, excluding the Directors concurrently
serving as Executive Officers and Executive Officers
responsible for global regional operations ofMizuho Corporate Bank, have not been 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 Chief Executive Officer
and the Deputy Presidents, and the Corporate
Auditors as well as the Executive Officers of Mizuho
Trust & Banking, have not been listed.
5. Members of the Board of Directors other than the
President and the Deputy Presidents, and the
Corporate Auditors as well as the Executive Officersof Mizuho Securities and Mizuho Investors
Securities, have not been listed.

(As of June 26, 2012)61

Location of Overseas Offices(As of June 30, 2012)

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(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

Room 2220, Suning Universal Hotel,
188 Guangzhou Road, Nanjing,
Jiangsu Province 210024,
The People's Republic of China
TEL 86-25-8332-9379

Xiamen Representative Office
Room 2102, The Bank Center, No.189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People's Republic of China
TEL 86-592-239-5571

Hong Kong

Hong Kong Branch

Yangon Representative Office
Room No.6055, 6th Floor, Sedona Business
Apartment, No.1, Ka Ba Aye Pagoda Road, YankinTownship, Yangon, Republic of the Union of
Myanmar
TEL 95-1-544-071

Philippines

Manila Branch
26th Floor, Citibank Tower, Valero Street corner
Villar Street, Salcedo Village, 1227 Makati City,
Metro Manila, Philippines
TEL 63-2-860-3500

Singapore

Singapore Branch
168 Robinson Road, #11-01 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

Taiwan6th Floor, Senmao Building, Zhongshan Road 147,
Xigang District, Dalian, Liaoning Province 116011,
The People's Republic of China
TEL 86-411-8360-2543

17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2103-3000

Mizuho Corporate Bank (China), Ltd.
Guangzhou 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

Taichung Branch

Mizuho Capital Markets (HK) Limited

Taipei 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

Kowloon Sub-Branch

16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2537-3815

India

44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District,
Qingdao, Shandong Province 266071,
The People's Republic of China
TEL 86-532-8097-0001

Mumbai Branch

Mizuho Corporate Bank (China), Ltd.
Shenzhen Branch

New Delhi Branch

30th Floor, Excellence Century Center Tower1,
No.2030 Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People's Republic of China
TEL 86-755-8282-9000

Mizuho Corporate Bank (China), Ltd.
Suzhou Branch
17th Floor, Genway Building,
188 Wangdun Road, Suzhou Industrial Park,
Suzhou, Jiangsu Province 215123,
The People's Republic of China
TEL 86-512-6733-6888

Mizuho Corporate Bank (China), Ltd.
Tianjin Branch
5th Floor, E2 ABC, East Wing Binhai Finance Zone,
No.20 Xinchengdong Road, TEDA, Tianjin 300457,
The People's Republic of China
TEL 86-22-6622-5588

Mizuho Corporate Bank (China), Ltd.
Wuhan Branch
5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People's Republic of China
TEL 86-27-8342-5000

Mizuho 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

62

Nanjing Representative Office

Myanmar

Maker Chamber III, 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400 021, India
TEL 91-22-2288-6638

4th Floor, East Tower, Sood Tower, 25,
Barakhamba Road, New Delhi, 110 001, India
TEL 91-11-3041-0900

Indonesia

PT. Bank Mizuho Indonesia
Plaza Bll-Menara 2, 24th Floor, Jl. M. H. Thamrin
No.51, Jakarta 10350, Republic of Indonesia
TEL 62-21-392-5222

Korea

Seoul Branch
19th Floor, Seoul Finance Center, 84, Taepyungro
1-ka, Chung-ku, Seoul, Korea
TEL 822-3782-8500

Malaysia

Kaohsiung Branch
12th Floor, No.2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
TEL 886-7-236-8768

8th Floor, No.169, Fuhui Parkway,
Taichung 407, Taiwan
TEL 886-4-2374-6300

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

Labuan Branch

Mizuho Corporate Australia Ltd.

Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka, 87000
Federal Territory of Labuan, Malaysia
TEL 60-87-417766

Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Labuan Branch, Kuala Lumpur
Marketing Office
Level 27, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Mizuho Corporate Bank (Malaysia)
BerhadLevel 27, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2058-6881

Europe and the Middle East(Country/Region)
AustriaMizuho Corporate Bank-BA
Investment Consulting GmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

BelgiumMizuho Corporate Bank Nederland N.V.
Brussels Branch
Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

FranceParis Branch
Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

Germany

Duesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf,
F.R. Germany
TEL 49-211-13020

Frankfurt Branch
An der Hauptwache 7,60313 Frankfurt am Main,
F.R. Germany
TEL 49-69-29-72-95-0

Iran

Tehran Representative Office

Mexico Representative Office

3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-8872-6593

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

TurkeyIstanbul Representative Office
Office 813, Tekfen Tower 8th Floor, Buyukdere
Caddesi No.209, 4. Levent 34394, Istanbul, Turkey
TEL 90-212-371-8474

U.A.E

Dubai Branch
The Gate Village, Building Number 5, Level 2,
Dubai International Financial Centre,
P.O.Box No:506607, Dubai, United Arab Emirates
TEL 971-4-425-9200

RussiaZAO Mizuho Corporate Bank
(Moscow)
5th Floor, 20, bld. 1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
TEL 7-495-212-0333

Moscow Representative Office
Millennium House Business Center,
12, Trubnaya Street, Moscow 107045,
Russian Federation
TEL 7-495-787-2771

6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

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

The Americas(Country/Region)
BahamasMizuho Corporate Bank (USA)Nassau Branch
SG Hambros Building West Bay Street
P.O. Box N-7788 Nassau, Bahamas

BrazilSão Paulo Representative Office
Avenida Paulista, 1274- 11andar, 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

Mizuho Capital Markets (UK) Limited

Cayman Branch

One Friday Street, London, EC4M 9JA, UK
TEL 44-20-3192-1300

c/o Intertrust Bank (Cayman) Limited,
P.O. Box 1034, Harbour Place, 4th Floor,
103 South Church Street,
Grand Cayman KY1-1102, Cayman Islands

Bahrain

U.S.A.

Chicago Branch
311 South Wacker Drive, Suite 2020,
Chicago, IL 60606, USA
TEL 1-312-855-1111

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

Houston Representative Office2700 Post Oak Blvd., Suite 1350, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Corporate Bank (USA)

Italy

Milan Branch

Mexico1251 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, USA
TEL 1-312-855-1111

Mizuho Corporate Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1350, 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 1-212-282-4420

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York, NY 10018,
USA
TEL 1-212-547-1500

Bahrain Representative Office
Suite 201-202, Entrance 4,
2nd Floor, Manama Center, Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
TEL 973-17-224522

63

Location of Overseas Offices

Mizuho Desk(Country/Region)
Austria

Raiffeisen Bank International AG
Am Stadtpark 9, A-1030 Vienna, Austria
TEL 43-1-71707-1375

U.A.E

Mashreqbank psc
Japan Desk, Mashreqbank Building 3F,
Dubai Internet City, Mashreqbank,
P.O.Box 1250, Dubai,
United Arab Emirates
TEL 971-4-363-2324/2285”Mizuho Desk”
By forming tie-ups with major financial institutions 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 Trust & Banking

Mizuho Securities USA Inc.
Hoboken OfficeMizuho Trust & Banking(Luxembourg) S.A.

Waterfront Corporate Center,
111 River Street, Suite 1100,
Hoboken, NJ 07030-5777, USA
TEL 1-201-626-1000

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-4216171

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York,NY 10020, USA
TEL 1-212-373-5900

Network of Mizuho Securities
Beijing Representative Office
8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6523-4779

Shanghai Representative Office
17th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-8000*Moved to the above address on July 1, 2012.

Mizuho Investment Consulting(Shanghai) Co., Ltd.
33th 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*Moved to the above address on July 1, 2012.

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 USA Inc.
Chicago Office
311 South Wacker Drive, Suite 700,
Chicago, IL 60606-6620, USA
TEL 1-312-294-8800

Mizuho Securities USA Inc.
San Francisco Office
3 Embarcadero Center, Suite 1620,
San Francisco, CA 94111, USA
TEL 1-415-268-5500

Mizuho Securities USA Inc.
Los Angeles Office
1875 Century Park East, Suite 700,
Los Angeles, CA 90067, USA
TEL 1-310-284-3270

Mizuho Securities USA Inc.
Boston Office
125 High Street, 21st Floor,
Boston, MA 02210, USA
TEL 1-617-273-8274

Mizuho Securities USA Inc.
Atlanta Office3455 Peachtree Road, 5th Floor,
Atlanta, GA 30326, USA
TEL 1-404-995-6830

Mizuho Securities USA Inc.
London Office
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7776-5800

Mizuho Securities India Private Limited
Unit 141-144, 14th Floor, Free Press House,
215 Free Press Journal Marg, Nariman Point,
Mumbai, 400 021, India
TEL 91-22-6121-7600

Mizuho Securities (Singapore) Pte. Ltd.
One Raffles Quay, North Tower Unit 32-02,
Singapore 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.
320 Park Avenue, New York,NY 10022, USA
TEL 1-212-209-9300

64

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¥2,254,972 million

Marubeni Corporation

14,500,000

3.88

SHIMIZU CORPORATION

10,000,000

2.67

Issued Shares

Electric Power Development Co., Ltd.

10,000,000

2.67

24,999,607,727 shares
Common Stock: 24,048,165,727 shares
Preferred Stock:951,442,000 shares

NIPPON EXPRESS CO., LTD.

10,000,000

2.67

JFE Steel Corporation

6,000,000

1.60

NIPPON STEEL CORPORATION

6,000,000

1.60

Number of Shareholders

ALL NIPPON AIRWAYS CO., LTD.

6,000,000

1.60

Common Stock:
Preferred Stock:

DAIICHI SANKYO COMPANY, LIMITED

6,000,000

1.60

CANON INC.

5,000,000

1.33

Kyushu Electric Power Company,
Incorporated

5,000,000

1.33

938,390
1,553

Major Shareholders(Common Stock)
Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,373,830,800

5.71

The Master Trust Bank of Japan, Ltd.
(Trustee account)881,719,300

3.67

SSBT OD05 OMNIBUS ACCOUNT TREATY CLIENTS (Standing proxyagent: The Hong Kong and Shanghai
Banking Corporation Limited)

607,227,433

2.52

Barclays Capital Japan Limited

382,687,100

1.59Japan Trustee Services Bank, Ltd.
(Trustee account 9)362,109,600

1.50Japan Trustee Services Bank, Ltd.
(Trustee account 4)

280,168,000

1.16

The Dai-ichi Life Insurance
Company, Limited

255,691,025

1.06Japan Trustee Services Bank, Ltd.
(Trustee account 1)

198,136,900

0.82Japan Trustee Services Bank, Ltd.
(Trustee account 6)

190,801,600

0.79

STATE STREET BANK - WESTPENSION FUND CLIENTS - EXEMPT(Standing proxy agent: Mizuho
Corporate Bank, Ltd.)

180,008,353

0.74

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 (27,155,428 shares).

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 (541,073,800 shares). Furthermore, the541,073,800 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 FINANCE CORPORATION

5,000,000

13.62

SHARP INTERNATIONAL FINANCE(U.K.) PLC (Standing proxy agent:Mizuho Corporate Bank, Ltd.)

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, 2012)65

Investor Information

Stock Listing(Common Stock)
Tokyo Stock Exchange
Osaka Securities Exchange

Accounting Auditors
Ernst & Young ShinNihon LLC

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.

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit
100 sharesFiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of theCompany shall be convened no later than 3 months fromthe last day of each business year and an extraordinary
general meeting of shareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register ofshareholders as of the end of March 31 of each year as theshareholders who are entitled to exercise their rights at theordinary general meeting of shareholders for the relevantbusiness year.
2. The provision of the preceding paragraph shall apply
mutatis mutandis to the record date for voting rights at thegeneral meetings of holders of classes of stock, where
there is a matter to be resolved at an ordinary general
meeting of shareholders that requires, in addition to such
resolution, a resolution by the relevant general meeting ofholders of class of stock.
3. In addition to the preceding two paragraphs, the Company
may temporarily set the record date whenever necessary,by a resolution 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.

66

ADR* Information
Outline of Mizuho Financial Group's ADR
1. Exchange :2. Ticker Symbol :3. CUSIP :4. Conversion ratio :5. Depositary bank :New York Stock Exchange
MFG
60687Y109
1 ADR = 2 common shares
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
6. Local custodian bank : Mizuho Corporate Bank, Ltd.

* ADRs are securities issued for the purpose of trading in the U.S. in place of
the underlying stock of foreign companies. As ADRs are registered with
the SEC as U.S. securities, they are traded, settled and held in custody insubstantively the same manner as the stocks of U.S. companies. ADR is anacronym for American Depositary Receipts.

Disclosure Policy

Basic Principles
We aim to win the highest regard of our shareholders andthe market and to earn the trust of society as Japan's leading
comprehensive financial services group. For this reason, weplace one of the highest management priorities on continuing to disclose information to our customers, shareholders,and investors both in and outside Japan in a fair, timely andappropriate manner, in order that they may form proper
judgments and appraisals of the group. To achieve this aim,
we observe applicable domestic and international laws andregulations as well as stock exchange rules relating to corporate disclosure, and we establish and implement appropriate
Disclosure Controls and Procedures.
Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws andregulations as well as stock exchange rules and to implement fair, timely and appropriate corporate disclosure.
The Disclosure Controls and Procedures are the processcarried out by directors, officers and employees ofMizuho Financial Group and include internal controls
designed to provide reasonable assurance regarding thereliability of Financial Reporting and the Preparation of
Financial Statements. We have established the basic principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls
and Procedures that govern the management framework
for the entire Mizuho Financial Group including groupcompanies, and we endeavor to establish, implement andcontinuously improve our Disclosure Controls andProcedures. Our Disclosure Committee is the principal
management body that is responsible for discussing andexploring matters relating to Disclosure Controls andProcedures.
(2) Evaluation of Effectiveness of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly
by reviewing the contents of such documentation andtheir implementation. In addition, evaluation of the effectiveness and appropriateness of Disclosure Controls andProcedures is conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial
Professionals” to be observed by all directors and executive officers, as well as all managers and other employees
within Mizuho Financial Group who engage in financial
reporting, accounting or disclosure. We have also developed the “Internal Controls and Audit Hotline”, a systemdesigned for obtaining concerns regarding questionableaccounting or auditing matters from both inside and outside Mizuho Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international laws and regulations as well as stock exchange
rules, we follow the defined disclosure procedures such as
publishing such information in business reports (JigyoHokoku), annual securities reports (YukashokenHokokusho) and other disclosure publications, as well as
providing such information through the information distribution systems of domestic and international stock
exchanges and through press releases. We also endeavor
to disclose other information in a fair, timely and appropriate manner. When we disclose such information, webasically publish on our website the information we disclose. In addition, we endeavor to utilize the latest disclosure methods and tools to provide more fair andwidespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above,
and with due attention to two-way communication, we
endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition and othermatters. In this way, we aim to earn the trust of the market and obtain an appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations as well as
stock exchange rules, we endeavor to grasp properly thetypes of information desired by the market and to disclose useful and appropriate information voluntarily andproactively. Regarding disclosure of information we consider particularly important, we communicate such information on an ad hoc basis as and when necessary, even if
a press release has already been issued, through suchmeans as special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor
to limit carefully our explanations to matters already disclosed and facts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding
Mizuho Financial Group in the market due to the spreadof rumors or otherwise, we endeavor to investigate theircauses and correct such misconceptions promptly.

67

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

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.

68

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.

Mizuho Financial Group will endeavor to cope with customer
requests for the management of personal information sincerely and promptly.

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

1

Financial and Economic Environment

3

Results for the Fiscal Year ended March 31, 2012

5

Status of Asset Quality

19

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)
Comprehensive Income
Net Assets (Note 1)
Total Assets (Note 1)
Deposits
Debentures
Loans and Bills Discounted
Securities

2012

¥

2,808.5
484.5
627.5
6,869.2
165,360.5
90,636.6—
63,800.5
51,392.8

2011¥

2,777.0
413.2
266.6
6,623.9
160,812.0
88,884.1
740.9
62,777.7
44,782.0

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

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)

187.1920.62
19.75

177.5320.47
19.27

191.53
16.29
15.57

104.38(54.14)—

254,722.01
25,370.25
24,640.00

Capital Adequacy Ratio (BIS Standard) (Note 4)

15.50%

15.30%

13.46%

10.53%

11.70%Net Return on Equity
PER (Times) (Note 3)

11.3%
6.54x

11.7%
6.74x

10.9%
11.35x(29.6)%—x8.5%
14.38xCash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

4,163.0(6,175.6)(680.6)

6,051.5(1,667.4)
155.0

13,432.7(14,153.5)
231.8

573.7
2,408.2
32.9

170.7(1,118.7)(85.0)Cash and Cash Equivalents at the end of the fiscal year

6,483.1

9,182.4

4,678.7

5,048.6

2,055.7

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).
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

1—Financial Analysis

2008

254.7225.37
24.64

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

As of or for the Fiscal Years ended March 31,

2012

Operating Income¥
37.7
Net Income
10.2
Common Stock and Preferred Stock2,254.9
Number of Shares Issued and Outstanding
Common Stock
24,048,165,727 shares
Eleventh Series Class XI Preferred Stock914,752,000 shares
Thirteenth Series Class XIII Preferred Stock
36,690,000 shares
Net Assets (Note 1)
4,688.3
Total Assets (Note 1)
6,128.4
Net Assets per Share (Yen) (Note 2)
177.82
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock6
Eleventh Series Class XI Preferred Stock20
Thirteenth Series Class XIII Preferred Stock30
Common Stock3
Eleventh Series Class XI Preferred Stock10
Thirteenth Series Class XIII Preferred Stock15
Net Income (Loss) per Share (Yen) (Note 2)
0.06
Diluted Net Income per Share (Yen) (Note 2) (Note 4)
0.06
PER (Times) (Note 4)
2,017.69x
Dividend Propensity (Note 3)
8,967.54%

2011

¥

46.4
18.5
2,181.3

21,782,185,320 shares
914,752,000 shares
36,690,000 shares
4,652.8
6,035.1
192.32
6
20
30
—
—
—
0.46
0.45
299.99x1,304.32%

2010

¥

33.7
3.3
1,805.5

2009

¥

442.7
378.8
1,540.9

15,494,397,690 shares 111,178,940,660 shares
914,752,000 shares
914,752,000 shares
36,690,000 shares
36,690,000 shares
4,011.1
3,608.6
5,225.9
4,552.7
223.59236.36
8
20
30
—
—
—
(0.54)
—
—x
—%

10
20
30
—
—
—
32.00
28.45
5.87x
31.24%

2008

¥

806.5
811.0
1,540.9

11,396,254.66 shares
943,740 shares
36,690 shares
3,512.8
4,658.9
220,538.65
10,00020,00030,000———68,658.41
64,138.22
5.31x
14.56%

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002).
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 per Share
Diluted Net Income per Share

yen

2008

220.53
68.65
64.13

Financial Analysis—2

Financial Analysis

Financial and Economic Environment

Financial and Economic Environment
Reviewing the economic environment over the fiscal year ended March 31, 2012, despite the continuing overall gradual recoveryof the global economy, the recovery remains weak due to destabilization of the international financial and capital markets causedby the fiscal problems in Europe and the decline in exports to Europe impacting the real economies of newly developing counties.
In the United States, gradual recovery in the economy continues on the basis of positive trends in consumer spending due to an
improvement in employment conditions among other things. However, the risk remains of a slackening in the economy withrising oil prices, considering there is still pressure to squeeze debt on a household level. In addition, there is uncertainty as to asustained economic recovery with the government pressed to implement a tight fiscal policy due to the constraints imposed by
the debt ceiling. In Europe, the economy has entered a slowdown phase, with the fiscal problems experienced by certain
countries impacting the real economy. Although the intense concern has been eased since the beginning of 2012 due to therestructuring of the debts of Greece and the provision of long-term funding by the European Central Bank (ECB), the future of
the European economy holds little prospect of a drastic speedy fix for the Euro-area's debt problems, and it is difficult to predict
the effects on the global economy. In Asia, although the region continues to maintain relatively strong economic growth, its
economy is slowing as a whole from the impact of, among others, the decline in exports associated with the economic stagnationin Europe.
In Japan, the recovery from the impact of the Great East Japan Earthquake continues. Despite the temporary standstill inexports and production due to the impact of the floods in Thailand in early fall 2011, there are visible signs of recovery. As for the
future direction of the economy, while there are boosting factors such as the growing demand in relation to reconstruction
efforts and a pause in the excessive appreciation of the value of the yen against other currencies, there are also several causes forconcern, such as rising oil prices, the downturn in overseas economies and electricity shortages, posing a risk that these factors
will act as a drag on economic growth.

3—Financial Analysis

Trends in Interest Rates in Japan
(%)

(%)

1.80

0.70

Long-Term Prime Rate (left scale)

0.60

1.60

Short-Term Prime Rate (left scale)
0.50
1.40
0.40

Euroyen TIBOR (3-month) (right scale)

1.20

0.30
1.00

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

0.20

0.80

0.10

Call Rate (Uncollateralized overnight) (right scale)
0.60

Apr. 2011

July 2011

Oct. 2011

Jan. 2012

Apr. 2012

0.00

Trends in TOPIX and Yen / Dollar Exchange Rate
(Point)(Yen / Dollar)
90

900

TOPIX (left scale)85

Yen / Dollar Exchange Rate(right scale)

800

80

75

700

Apr. 2011

July 2011

Oct. 2011

Jan. 2012

Apr. 201270

Financial Analysis—4

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

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

As of March 31,

2012

2011

ChangeNumber of consolidated subsidiaries
Number of affiliates under the equity method

149
23

152
22

(3)
1

2012

2011

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)

2,003.0
1,088.3
49.0
458.9
150.3
256.4

¥

2,025.3
1,109.4
49.3
458.8
243.9
163.6

Change¥(22.2))(21.1)(0.3)
0.1(93.6)
92.7

1,283.8

1,277.8

5.9

42.5

76.1

(33.5)

Reversal of Reserves for Possible Losses on Loans, etc.

70.3

/

70.3

Net Gains (Losses) related to Stocks(38.1)(70.5)

32.3

2.6

(6.1)

8.8
(35.8)

Equity in Income from Investments in Affiliates
Other

4.9

40.7

Income before Income Taxes and Minority Interests

716.4

635.4

81.0

Income Taxes–Current

55.3

18.3

36.9

Income Taxes–Deferred

97.4

120.1

(22.6)

Income before Minority Interests

563.6

496.9

66.6

Minority Interests in Net Income

79.1

83.7

(4.6)

Net Income

¥

484.5

¥

413.2

¥

71.2

Net Income per Share of Common Stock (Yen)

¥

20.62

¥

20.47

¥

0.14

Credit-related Costs¥(27.7)¥

16.6¥(44.3)(Reference) Consolidated Net Business Profits

¥

719.1

¥

741.7

¥

(22.6)

Notes: 1. For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses” until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission Expenses,” and reclassification of prior year figures has been
made accordingly.
2. For the fiscal year ended March 31, 2012,“Reversal of Reserves for Possible Losses on Loans, etc.”, which had been included in “Other” until the previous year, has been presented as “Reversalof Reserves for Possible Losses on Loans, etc.”.
3. 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.
4. 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.

5—Financial Analysis

Use and Source of Funds (Consolidated)
Billions of yen

Change2012

Interest
2011¥ 132,125.0
4,921.4
287.7
7,836.1¥ 124,062.1
916.9
307.1
7,828.0¥ 8,062.9
4,004.4(19.3)
8.0¥ 1,423.5
20.6
6.5
30.8

¥ 1,457.6
10.9
5.0
38.9

6,246.6
46,779.1
63,024.4

6,393.2
43,100.0
61,728.4(146.5)
3,679.1
1,295.9

9.9
348.4
888.4

9.4
356.5
900.0

Source of Funds¥ 134,403.6
Deposits
88,720.6
Debentures
85.5
Call Money and Bills Sold
5,874.6
Payables under Repurchase Agreements
12,426.3
Guarantee Deposits Received under Securities
Lending Transactions
6,987.8
Commercial Paper
312.3
Borrowed Money
13,180.2¥ 127,614.4
85,821.1
1,149.5
5,703.2
12,096.9¥ 6,789.1
2,899.5(1,063.9)
171.3
329.4

6,574.2
75.3
9,108.2

413.6
236.9
4,071.9

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

Average balance
2012
2011

¥

335.22
129.8
0.3
8.6
33.9

¥

348.2
133.1
6.5
8.5
47.8

Change¥(34.1))
9.7
1.5
(8.1)
0.4
(8.1)
(11.5)¥(13.0))(32.5)(6.1)
0.0(13.8)

14.4
0.8
35.0

14.0
0.1
30.6

0.3
0.7
4.4

For the Fiscal Years ended March 31,

2012

Yield
2011

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

1.07%
0.41
2.28
0.39

1.17%
1.19
1.64
0.49

(0.09)%(0.77)
0.63(0.10)

0.15
0.74
1.40

0.14
0.82
1.45

0.01
(0.08)(0.04)

0.24%
0.14
0.44
0.14
0.27

0.27%
0.15
0.56
0.15
0.39

(0.02)%(0.00)(0.11)(0.00)(0.12)

0.20
0.27
0.26

0.21
0.16
0.33

(0.00)
0.11.
(0.07)%

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

Financial Analysis—6

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

Net Fee and Commission Income (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2012

2011

¥ 458.9¥ 458.8¥

0.1

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¥ 566.8
132.7
116.5
105.0
40.8
27.7
24.8
5.7

¥ 562.4
120.3
125.4
105.2
37.8
28.2
25.1
5.9

¥

4.4
12.3
(8.8)
(0.1)
2.9
(0.5)
(0.3)
(0.1)

Fee and Commission Expenses
Remittance Business¥ 107.9
38.1¥ 103.6
38.5

¥

4.2
(0.4)

Net Fee and Commission Income

ChangeNote: For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses” until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission Expenses,” and reclassification of prior year figures has been
made accordingly.

7—Financial Analysis

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

As of March 31,

2012

2011

ChangeTotal Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted¥ 165,360.5
7,278.4
14,075.0
51,392.8
63,800.5¥ 160,812.0
9,950.9
13,500.1
44,782.0
62,777.7¥ 4,548.4(2,672.4)574.8
6,610.8
1,022.7

Total Liabilities
Deposits
Debentures
Call Money and Bills Sold

158,491.2
90,636.6—
5,668.9

154,188.0
88,884.1
740.9
5,095.4

4,303.1
1,752.4(740.9)573.5

Net Assets
Shareholders' Equity
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights
Minority Interests¥

6,869.2
4,762.7
146.6
2.1
1,957.6¥

6,623.9
4,248.2
80.9
2.7
2,292.1¥

245.2)
514.5
65.7
(0.5)
(334.4)

Fair Value of Other Securities (Consolidated)
Billions of yen

As of March 31, 2012

Acquisition cost

Fair value

Other Securities *1
Japanese Stocks
Japanese Bonds
Other¥ 49,714.6
2,352.7
36,316.1
11,045.7¥ 49,798.5
2,509.3
36,372.5
10,916.5

Gross unrealized
Gains¥ 649.9
453.5
91.9
104.4

Losses¥ 566.0
296.9
35.5
233.5

Net unrealized*2
gains (losses)¥ 83.8)156.5
56.4(129.1)
Billions of yen

As of March 31, 2011

Acquisition cost

Fair value

Other Securities *1
Japanese Stocks
Japanese Bonds
Other¥ 44,146.6
2,434.9
33,484.2
8,227.4¥ 44,145.9
2,640.6
33,472.8
8,032.4

Gross unrealized
Gains¥ 651.5
456.4
92.1
102.9

Losses¥ 652.1
250.6
103.5
297.9

Net unrealized*2
gains (losses)

¥

(0.6)
205.7
(11.3)(195.0)Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost¥

5,568.0(82.1)
2,831.9
2,818.3

Fair value¥

5,652.5(131.3)2,899.6
2,884.1¥

Gross unrealized
Gains

LossesNet unrealized
gains (losses)(1.5))
(2.8)
(0.2)
1.5

(86.0)
46.2(68.0)(64.3)¥ 84.4(49.1)
67.7
65.8

¥

Notes: 1. In addition to the balances shown in the above table, Other Securities excludes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥(7.3) billion and ¥(1.2) billion, which were recognized in the statements of income for the fiscal years ended March 31, 2012 and 2011, respectively, byapplying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax and consolidation adjustments as of March 31, 2012 and 2011 were ¥91.2
billion and ¥0.6 billion, respectively.

Financial Analysis—8

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

(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

2012

¥

2011

91.2
156.3
54.8
(119.9)¥Change0.6
205.7(12.9)(192.2)¥

90.5)(49.4)
67.8
72.2

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

As of March 31,

2012

2011

Consolidated Capital Adequacy Ratio
Tier 1 Capital Ratio

15.50%
12.76%

15.30%
11.93%

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

6,398.9
1,745.1
368.9¥

6,170.2
2,103.4
362.6

Total Risk-based Capital¥

7,775.0¥

7,910.9

Risk-weighted Assets¥ 50,144.9

9—Financial Analysis¥ 51,693.8

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

2012
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)2,003.0 ¥1,088.3
49.0
458.9
150.3
256.4

1,607.5 ¥
983.1
48.4
304.8
45.9
225.0

395.5
105.2
0.5
154.0
104.3
31.3

80.2%
90.3
98.8
66.4
30.5
87.7

(27.7)(24.7)

(2.9)

89.2

MHFG
(Consolidated)
(a)

¥

2011
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)2,025.3 ¥1,109.4
49.3
458.8
243.9
163.6

1,611.1 ¥1,010.0
48.7
288.1
121.2
142.9

414.1
99.3
0.6
170.7
122.7
20.6

79.5%
91.0
98.7
62.7
49.6
87.3

16.6

(16.0)

32.6 (96.4)

Net Income¥

484.5 ¥

428.1 ¥

56.3

88.3%

¥

413.2 ¥

447.0 ¥

(33.7) 108.1%

Net Business Profits¥

719.1 ¥

728.1 ¥

(9.0) 101.2%¥

741.7 ¥

742.3 ¥

(0.6) 100.0%

Notes: 1. For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses (excluding Non-Recurring Losses)” in Mizuho Trust & Banking until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission
Expenses,” and reclassification of prior year figures has been made accordingly.
2. 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.
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.

Billions of yen, %2012
AggregatedFigures of theThree Banks (b)As of March 31,

MHFG(Consolidated)(a)Total Assets
Securities
Loans and Bills Discounted¥ 165,360.5 ¥ 158,157.9 ¥ 7,202.5
95.6%
51,392.8
52,102.5(709.6) 101.3
63,800.5
63,878.6(78.1) 100.1(a) – (b) (b) / (a)MHFG(Consolidated)
(a)

2011
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)¥ 160,812.0 ¥ 153,135.2 ¥ 7,676.8 95.2%
44,782.0
45,294.9(512.8) 101.1
62,777.7
62,993.7(215.9) 100.3

Financial Analysis—10

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

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

For the Fiscal Years ended March 31,

Domestic Gross Profits
International Gross Profits

2012

¥

1,085.8
521.6

2011

¥

1,133.7
477.4

Change¥(47.8))
44.2

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

1,607.5
983.1
48.4
304.8
45.9
225.0
155.1

1,611.1
1,010.0
48.7
288.1
121.2
142.9
140.6

(3.6)
(26.9)(0.3)
16.7(75.2)
82.0
14.4

General and Administrative Expenses (excluding Non-Recurring Losses)
Expense Ratio

879.3
54.7%

868.7
53.9%

10.5
0.7%

Net Business Profits (before Provision for (Reversal of) General Reserve
for Possible Losses on Loans)Excluding Net Gains (Losses) related to Bonds

728.1
573.0

742.3
601.7

(14.2)(28.7)

Provision for (Reversal of) General Reserve for Possible Losses on Loans

7.8

—

7.8

Net Business Profits

736.0

742.3

(6.3)

Net Non-Recurring Gains (Losses)
Net Gains (Losses) related to Stocks
Expenses related to Portfolio Problems
Reversal of Reserves for Possible Losses on Loans, etc.
Other

(195.0)(50.3)(51.3)
68.2(161.5)(159.9)(76.2)(69.5)
85.6(99.7)(35.0)
25.8
18.2(17.4)(61.7)

Income before Income Taxes

541.0

582.4

(41.4)

Income Taxes–Current

40.7

13.0

27.6

Income Taxes–Deferred

72.0

122.3

(50.2)Net Income

¥

428.1

¥

447.0

¥

(18.8)

Credit-related Costs¥(24.7))¥(16.0)¥(8.7))

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. For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses (excluding Non-Recurring Losses)” in Mizuho Trust & Banking until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission
Expenses,” and reclassification of prior year figures has been made accordingly.
3. For the fiscal year ended March 31, 2012, “Reversal of Reserves for Possible Losses on Loans, etc.”, which had been included in “Other” until the previous year, has been presented as “Reversalof Reserves for Possible Losses on Loans, etc.”.
4. 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.

11—Financial Analysis

Breakdown of Gross Profits (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Interest Income
Domestic Operations
International Operations

2012

¥

983.1
753.2
229.8

2011

¥

1,010.0
792.1
217.9

Change¥(26.9))(38.9)
11.9

Fiduciary Income
Domestic Operations
International Operations

48.4
48.4
/

48.7
48.7
/

(0.3)
(0.3)
/

Net Fee and Commission Income
Domestic Operations
International Operations

304.8
218.9
85.8

288.1
215.4
72.6

16.7
3.4
13.2

Net Trading Income
Domestic Operations
International Operations

45.9
25.1
20.8

121.2
23.4
97.7

(75.2)
1.6(76.9)Net Other Operating Income
Domestic Operations
International Operations

225.0
40.0
185.0

142.9
53.8
89.1

82.0
(13.8)
95.9

Gross Profits¥

1,607.5¥

1,611.1¥(3.6)

Note: For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses (excluding Non-Recurring Losses)” in Mizuho Trust & Banking until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission
Expenses,” and reclassification of prior year figures has been made accordingly.

Financial Analysis—12

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

Breakdown of Net Interest Income (MHCB and MHBK)
Billions of yen, %For the Fiscal Years ended March 31,

2012

Average balance
2011

Total
Use of Funds
Loans and Bills Discounted
Securities¥ 124,973.4
59,783.5
45,379.4¥ 117,514.6
58,506.1
41,832.3

Source of Funds
Deposits and Debentures

124,261.7
86,738.9

118,675.3
85,135.5

2012

Yield
2011

¥ 7,458.7
1,277.4
3,547.1

1.04%
1.33
0.73

1.14%
1.38
0.81

(0.09)%(0.05)(0.08)

5,586.4
1,603.4

0.29
0.13

0.31
0.15

(0.02)(0.02)

ChangeChangeInterest Margins

/

/

/

0.75

0.82

(0.07)

Loan and Deposit Margin

/

/

/

1.20

1.23

(0.03)

Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities

102,575.0
49,023.4
37,585.3

97,942.7
49,625.3
34,684.0

4,632.3(601.8)2,901.3

0.86
1.24
0.49

0.97
1.32
0.58

(0.11)(0.07)(0.08)

Source of Funds
Deposits and Debentures

102,032.1
73,509.2

99,351.4
73,936.3

2,680.7(427.1)

0.16
0.06

0.19
0.10

(0.03)(0.03)

Interest Margins

/

/

/

0.69

0.77

(0.07)

Loan and Deposit Margin

/

/

/

1.17

1.21

(0.04)

International Operations
Use of Funds
Loans and Bills Discounted
Securities

25,670.2
10,760.0
7,794.1

21,152.98,880.7
7,148.2

4,517.2
1,879.2
645.8

1.69
1.76
1.87

1.88
1.76
1.96

(0.19)
0.00(0.09)

Source of Funds
Deposits and Debentures

25,501.4
13,229.7

20,904.9
11,199.1

4,596.5
2,030.5

0.81
0.48

0.88
0.47

(0.06)
0.00

Interest Margins

/

/

/

0.87

0.99

(0.12)

Loan and Deposit Margin

/

/

/

1.28

1.28

0.00

13—Financial Analysis

(Reference) Interest Margins (Domestic Operations) (MHCB and MHBK)%For the Fiscal Years ended March 31,

2012

2011

ChangeReturn on Interest-Earning Assets
Return on Loans and Bills Discounted
Return on Securities

0.86%
1.24
0.49

0.97%
1.32
0.58

(0.11)%(0.08)(0.08)

Cost of Funding (including Expenses)
Cost of Deposits and Debentures (including Expenses)
Cost of Deposits and Debentures
Cost of Other External Liabilities

0.81
0.97
0.06
0.25

0.86
0.99
0.10
0.30

(0.04)(0.02)(0.03)(0.04)Net Interest Margin

0.04

0.10

(0.06)

Loan and Deposit Rate Margin (including Expenses)

0.26

0.32

(0.05)

Loan and Deposit Rate Margin

1.17

1.21

(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)%For the Fiscal Years ended March 31,

2012

2011

Return on Loans and Bills Discounted
Loan and Deposit Rate Margin (including Expenses)
Loan and Deposit Rate Margin

1.38%
0.41
1.31

1.47%
0.47
1.36

Change(0.08)%(0.06)(0.05)

Financial Analysis—14

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

Breakdown of Net Fee and Commission Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2012

2011

Change¥ 304.8¥ 288.1¥ 16.7

Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 406.7
132.8
105.1
33.4
18.6
27.2
5.7

¥ 389.0
120.2
105.0
35.2
19.5
27.4
5.9

¥ 17.7
12.6
0.0
(1.7)
(0.9)
(0.2)
(0.1)

Fee and Commission Expenses
Remittance Business¥ 101.9
37.6¥ 100.9
37.9¥

Net Fee and Commission Income

1.0
(0.3)

Note: For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “General and
Administrative Expenses (excluding Non-Recurring Losses)” in Mizuho Trust & Banking until the previous year, have been included in “Net Fee and Commission Income” as “Fee and Commission
Expenses,” and reclassification of prior year figures has been made accordingly.

Breakdown of Net Other Operating Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2012

2011

Net Other Operating Income¥ 225.0¥ 142.9¥

82.0¥ 225.0
75.0
155.1¥ 142.9
16.0
140.6

¥

82.0
59.0
14.4

Domestic Operations
Net Losses related to Bonds

40.0
43.6

53.8
58.7

(13.8)(15.1)

International Operations
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

185.0
75.0
111.4

89.1
16.0
81.8

95.9
59.0
29.5

Total
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

ChangeBreakdown of General and Administrative Expenses (excluding Non-Recurring Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2012

2011

¥ 319.3¥ 300.7

Non-personnel Expenses

515.4

523.2

(7.8)

Miscellaneous Taxes

44.6

44.8

(0.1)

¥ 879.3¥ 868.7

Personnel Expenses

Total

Change

¥

¥

18.5

10.5

Note: For the fiscal year ended March 31, 2012, certain items in expenses regarding stock transfer agency business and pension management business, which had been recorded as “Non-personnel
Expenses” in Mizuho Trust & Banking until the previous year, have been included in “Fee and Commission Expenses,” and reclassification of prior year figures has been made accordingly.

15—Financial Analysis

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

2012

¥

Expenses related to Portfolio Problems¥(51.3)

Reversal of Reserves for Possible Losses on Loans, etc.

(76.2)
39.9(26.8)(87.3)(0.1)(1.8)

Change¥(69.5)

25.8(15.7)
(1.6)
45.8
0.0
(2.6)
18.2

68.2

85.6

(17.4)(161.5)(99.7)(61.7)¥ (195.0)¥ (159.9)

Other
Net Non-Recurring Gains (Losses)(50.3)
24.2(28.5)(41.5)
(0.1)
(4.4)

2011

¥

(35.0)

Note: For the fiscal year ended March 31, 2012,“Reversal of Reserves for Possible Losses on Loans, etc.”, which had been included in “Other” until the previous year, has been presented as “Reversal of
Reserves for Possible Losses on Loans, etc.”.

(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)

2012

¥

(24.7)—(51.9)
(3.2)
25.2
(0.0)
1.2
3.9

2011

¥

(16.0)—(68.4)
31.4
15.4
(0.1)
(0.4)
6.1

Change

¥

(8.7)
—
16.5
(34.6)
9.7
0.1
1.7
(2.2)

Financial Analysis—16

Financial Analysis

Results for the Fiscal Year ended March 31, 2012

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

2012

2011

Change¥ 158,157.9
8,158.2
8,874.0
52,102.5
63,878.6¥ 153,135.2
10,802.9
8,937.6
45,294.9
62,993.7¥ 5,022.7(2,644.7)(63.6)
6,807.5
884.9

151,956.9
91,627.7—
13,920.6—

147,419.6
89,989.7
740.9
13,269.3—

4,537.2
1,638.0(740.9)651.3—

6,201.0
5,898.7
302.3—

5,715.5
5,472.7
242.4
0.3

485.5
425.9
59.9
(0.3)

Note: Loans to MHFG are not included as follows:
As of March 31, 2012: ¥741.0 billion (from MHCB ¥41.0 billion; from MHBK ¥700.0 billion)
As of March 31, 2011: ¥741.5 billion (from MHCB ¥41.5 billion; from MHBK ¥700.0 billion)

Balance of Housing and Consumer Loans (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Housing and Consumer Loans
Housing Loans for Owner's Residential Housing

2012

2011

¥ 12,095.9
10,338.1¥ 12,383.8
10,488.4

Change¥(287.9)(150.3)Loans to Small and Medium-Sized Enterprises (SMEs) and Individual Customers (the Three Banks)(Banking Accounts and Trust Accounts)
Billions of yen, %As of March 31,

Loans to SMEs and Individual Customers
Percentage of Loans to SMEs
and Individual Customers, of Total Domestic Loans

2012

2011

¥ 31,807.7¥ 32,032.6

56.8%

55.7%

Change¥(224.9)1.0%

Notes: 1. Loans to MHFG are not included as follows:
As of March 31, 2012: ¥741.0 billion (from MHCB ¥41.0 billion; from MHBK ¥700.0 billion)
As of March 31, 2011: ¥741.5 billion (from MHCB ¥41.5 billion; from MHBK ¥700.0 billion)
2. Above figures do not include loans booked at overseas offices and offshore loans.
3. The definition of SMEs is as follows:Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail and service industries), or enterprises withfull-time employees of 300 or below (100 or below for the wholesale industry, 50 or below for the retail industry, and 100 or below for the service industry).

17—Financial Analysis

Fair Value of Other Securities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31, 2012

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 49,159.1
2,349.0
36,011.7
10,798.3¥ 49,226.1
2,482.7
36,067.8
10,675.6¥

Gross unrealized
Gains

Losses

629.8
443.7
91.5
94.5

562.7
310.0
35.4
217.2

¥

Net unrealized*2
gains (losses)

¥

67.0
133.6
56.0
(122.6)
Billions of yen

As of March 31, 2011

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 43,581.0
2,418.4
33,140.2
8,022.3¥ 43,565.8
2,600.1
33,128.1
7,837.4¥

Gross unrealized
Gains

Losses

635.0
447.5
91.3
96.1

650.2
265.8
103.4
280.9

¥

Net unrealized*2
gains (losses)¥(15.2)
181.7(12.1)(184.8)Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost¥

5,578.0(69.4)
2,871.4
2,776.0

Fair value¥

5,660.3(117.4)
2,939.6
2,838.1¥

Gross unrealized
Gains

Losses

(5.2)
(3.8)
0.2
(1.5)

(87.4)
44.1(67.9)(63.6)¥Net unrealized
gains (losses)¥

82.2(48.0)
68.2
62.1

Notes: 1. In addition to the balances shown in the above table, Other Securities excludes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥5.3 billion and ¥11.8 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2012 and 2011, 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, 2012 and 2011 were ¥61.7 billion and ¥(27.0)
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

2012

¥

61.7
133.3
54.5
(126.2)

2011¥(27.0)
181.7(13.7)(195.1)

Change¥88.8(48.3)
68.2
68.8

Financial Analysis—18

Financial Analysis

Status of Asset Quality

 Disposal of Non-performing Loans (NPLs) in the Fiscal Year ended March 31, 2012
Credit-related Costs in the aggregated figures of MHCB, MHBK and MHTB (the Three Banks) decreased by ¥8.7 billion from theend of the previous fiscal year to a net reversal of ¥24.7 billion. Consolidated Credit-related Costs decreased by ¥44.3 billion fromthe end of the previous fiscal year to ¥27.7 billion. This was primarily due to improvement of customer's categorization achieved
through our efforts to support revitalization of customer companies.

 Outstanding Balance of NPLs
Status of Disclosed Claims
The Three Banks' aggregated figures of Disclosed Claims under the Financial Reconstruction Law (FRL) decreased by ¥42.3 billion
from the end of the previous fiscal year to ¥1,165.6 billion. The classifications of those loans are shown in the table on page
Financial Analysis - 22.
Of the total, Claims against Bankrupt and Substantially Bankrupt Obligors and equivalent, and Claims with Collection Risk
decreased by ¥106.0 billion to ¥678.6 billion.
At the same time, Claims for Special Attention increased by ¥63.6 billion from the end of the previous fiscal year to¥487.0 billion.
NPL Ratio
The aggregated NPL ratio for the Three Banks as of the end of March 2012 decreased by 0.09 points from the end of theprevious fiscal year to 1.63%.
* 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 ¥406.2 billion in NPLs in fiscal 2011.
As a result, the removal ratio for NPLs amount categorized before fiscal 2010 has become about 95% as of the end of March
2012, 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.

19—Financial Analysis

 Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2012

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(27.7)

2011

¥

16.6

Change¥(44.3)

42.5

76.1(33.5)

38.5(70.3)—

71.6(59.4)—(33.0)(10.8)
—

2012

2011

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)¥(24.7)—(51.9)
(3.2)
25.2
(0.0)
1.2
3.9

¥

(16.0)—(68.4)
31.4
15.4
(0.1)
(0.4)
6.1

Change

¥

(8.7)
—
16.5
(34.6)
9.7
0.1
1.7
(2.2)

 Overview of NPLs as of March 31, 2012 (the Three Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Categorization

NonCategory II
Categorization

Bankrupt and Substantially
Bankrupt Obligors
157.0

Collateral, Guarantees, etc.:
133.8
Reserves for Possible Losses:
23.2

Reserve
Ratio
100%

430.7

87.7

Collateral, Guarantees, etc.:
270.3
Reserves for Possible Losses:
160.3

Reserve
Ratio
64.6%

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
157.0

Loans to Bankrupt Obligors
38.0

157.0

Watch Obligors

Intensive Control
Obligors
518.4

Claims for Special
Attention
487.0

Reserve Ratio against
Uncovered Portion
29.8%
Collateral, Guarantees, etc.:
143.1
Reserves for Possible Losses:
102.5

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 51.8%·Reserve Ratiofor Uncovered Portion: 30.6%·Reserve Ratio
against Entire Claim: 21.2%

Claims with Collection Risk
518.4

Non-Accrual
Delinquent Loans
558.4

Coverage Ratio 83.0%
79.1(Note 2)

Claims for Special
Attention (Note 1)
487.0
Coverage Ratio 50.4%

Loans Past Due forThree Months or More
20.2
Restructured Loans
466.6

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
71,181.2

Reserve Ratio
against Total Claims·Other Watch Obligors: 4.68%·Normal Obligors: 0.12%

Total Coverage
Ratio 71.7%

Total
1,162.5

Total
1,083.4

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under
the FRL.

Financial Analysis—20

Financial Analysis

Status of Asset Quality

 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

2012

¥

177.4
527.3
609.8

2011

¥

Change

247.2
559.4
522.1

¥

(69.8)(32.1)
87.7¥ 1,314.5¥ 1,328.8¥(14.2)

2012

2011

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

¥

321.3

¥

411.1

Change¥(89.7)))(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

2012

2011

Change

¥

—
3.0
—

¥

—
3.0
—

¥

—
(0.0)
—

¥

3.0

¥

3.0

¥

(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

21—Financial Analysis

2012

¥

177.4
530.3
609.8

¥ 1,317.6

2011¥

Change

247.2
562.5
522.1

¥

(69.8)(32.1)
87.7¥ 1,331.9¥(14.2)

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

2012

¥

157.0
521.5
487.0

2011

¥

231.4
553.2
423.3

Change¥(74.3)(31.6)
63.6

Subtotal

1,165.6

1,208.0(42.3)

Normal Claims

70,039.9

68,628.5

1,411.3¥ 71,205.5¥ 69,836.5

2012

2011

Total

¥

(1,368.9)

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

¥

294.5

¥

384.3

Change¥(89.7)

Ratio of Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)%

As of March 31,

2012

2011

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

0.22%
0.73
0.68

0.33%
0.79
0.60

(0.11)%(0.05)
0.07

Subtotal

1.63

1.72

(0.09)

Normal Claims

98.36

98.27

0.09

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

2012

2011

Change

¥

157.0
133.8
23.2
518.4
270.3
160.3
487.0
143.1
102.5

¥

231.4
212.6
18.7
550.1
299.0
162.9
423.3
110.4
92.7

¥

(74.3)(78.8)
4.4(31.6)(28.6)
(2.6)
63.6
32.6
9.8

¥

1,162.5
547.4
286.1

¥

1,204.9
622.1
274.4

¥

(42.3)(74.7)
11.6

Note: Above figures are presented net of partial direct write-offs.

Financial Analysis—22

Financial Analysis

Status of Asset Quality

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

2012

¥

833.5
286.1
547.4

2011

¥

896.6
274.4
622.1

Change¥(63.0)
11.6(74.7)

Coverage Ratio
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

71.7%
100.0
83.0
50.4
51.8

74.4%
100.0
83.9
48.0
51.8

(2.7)%
—
(0.8)
2.4
0.0

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%
64.6
29.8
30.6

100.0%
64.8
29.6
31.3

—%
(0.2))
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

21.28%
4.68
0.12

21.96%
4.34
0.20(0.67)%
0.34(0.07)

Note: Above figures are presented net of partial direct write-offs.

23—Financial Analysis

 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

2012

¥

40.7
582.6
20.2
589.5

2011

¥

Change

46.1
660.7
25.0
496.9

¥

(5.3)
(78.0)(4.7)
92.5¥ 1,233.1¥ 1,228.8

¥

4.2

2012

2011

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

¥

271.9

¥

343.4

Change¥(71.4)

Ratio to Total Loans%

As of March 31,

2012

2011

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.06%
0.91
0.03
0.92

0.07%
1.05
0.03
0.79

(0.00)%(0.13)(0.00)
0.13

1.93%

1.95%

(0.02)%

2012

2011

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

¥

691.7
447.5
244.1
0.0

¥

760.7
501.4
259.3
0.0

Change¥(69.0)(53.8)(15.1)(0.0)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2012

Amount of Partial Direct Write-offs

¥

327.6

2011

¥

416.3

Change¥(88.6)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2012

2011

ChangeAfter Partial Direct Write-offs

56.09%

61.90%(5.81)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

Financial Analysis—24

Financial Analysis

Status of Asset Quality(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

2012

2011

Change

¥

—
3.0
—
—

¥

—
3.0
—
—

¥

—
(0.0)
—
—

¥

3.0

¥

3.0

¥ (0.0)

Ratio to Total Loans%

As of March 31,

2012

2011

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
12.66
.—.
.—

.—%
11.86
.—.
.—

.—%
0.79
.—
.—

12.66%

11.86%

0.79%

2012

2011

Change

46.1
663.8
25.0
496.9

¥

(5.3)
(78.1)(4.7)
92.5¥ 1,236.2¥ 1,231.9¥

4.2

As of March 31,

2012

2011

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.06%
0.91
0.03
0.92

0.07%
1.05
0.03
0.79

(0.00)%(0.13)(0.00)
0.13

1.93%

1.96%

(0.02)%

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

¥

40.7
585.6
20.2
589.5

¥

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.

25—Financial Analysis

 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

2012

¥

38.0
561.5
20.2
466.6

2011

¥

Change

43.5
646.9
25.0
398.2

¥

(5.5)
(85.3)(4.7)
68.4¥ 1,086.5¥ 1,113.7¥(27.2)

2012

2011

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

¥

245.7

¥

317.0

Change¥(71.2)

Ratio to Total Loans%

As of March 31,

2012

2011

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.05%
0.87
0.03
0.73

0.06%
1.02
0.03
0.63

(0.00)%(0.14)(0.00)
0.09

1.70%

1.76%

(0.06)%

2012

2011

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

¥

582.8
411.2
171.6
0.0

¥

633.2
463.1
170.0
0.0

Change¥(50.3)(51.9)
1.6(0.0)

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 ¥0.0 billion and ¥0.1 billion as of March 31, 2012 and 2011, respectively, are not included in
the above figures for Trust Accounts.
Billions of yen

2012

Amount of Partial Direct Write-offs

¥

300.5

2011

¥

389.1

Change¥(88.6)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2012

2011

ChangeAfter Partial Direct Write-offs

53.79%

57.01%(3.21)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

Financial Analysis—26

Financial Analysis

Status of Asset Quality

 Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)

As of March 31,

Billions of yen, %2012
Outstanding
Balance Composition

2011
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition¥ 54,872.8
7,227.3
23.5
0.7
154.0
928.1
1,417.0765.2
2,900.1
4,843.2
5,618.4
6,286.3
1,588.9
2,691.2
1,218.9
5,927.2
13,282.2¥

Domestic Total (excluding Loans Booked Offshore) ¥ 54,162.9
Manufacturing
7,160.2
Agriculture & Forestry
32.7
Fishery
2.0
Mining, Quarryng Industry & Gravel Extraction Industry
144.5
Construction
865.6
Utilities
1,903.7
Communication
888.4
Transportation & Postal Industry
2,780.7
Wholesale & Retail4,800.0
Finance & Insurance
5,244.7
Real Estate
6,273.8
Commodity Lease
1,546.0
Service Industries
2,426.3
Local Governments
1,263.1
Governments
5,642.6
Other
13,187.7

100.00%
13.22
0.06
0.00
0.27
1.60
3.52
1.64
5.13
8.86
9.68
11.58
2.86
4.48
2.33
10.42
24.35

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

9,637.5356.8
2,806.5
6,474.1

100.00
3.70
29.12
67.18

7,904.9356.2
2,054.3
5,494.3¥ 63,800.5/¥ 62,777.7

Total

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.

27—Financial Analysis

100.00%
13.17
0.04
0.00
0.28
1.69
2.58
1.39
5.29
8.83
10.24
11.46
2.90
4.90
2.22
10.80
24.21

(709.9)(67.0)
9.2
1.3
(9.4)
(62.4)
486.7
123.2(119.3)(43.2)(373.7)(12.4)(42.9)(264.9)44.2(284.5)(94.5)/
0.05)%
0.02
0.00(0.01)(0.09)
0.94
0.25(0.16)
0.03(0.56)
0.12(0.04)(0.42)
0.11(0.38)
0.14

100.00
4.51
25.99
69.50

1,732.6
0.5
752.2
979.8

/
(0.81)
3.13(2.32)/¥ 1,022.7/

Outstanding Balances by Industry (the Three Banks) (Banking Accounts and Trust Accounts)

As of March 31,

2012
Outstanding
Balance Composition

Billions of yen, %2011
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition¥ 56,629.4
7,220.0
23.5
0.7
154.0
927.6
1,416.9778.8
2,900.0
4,842.9
6,804.6
6,351.0
1,588.9
2,689.0
1,231.9
5,856.6
13,842.1¥

Domestic Total (excluding Loans Booked Offshore) ¥ 55,972.8
Manufacturing
7,152.7
Agriculture & Forestry
32.7
Fishery
2.0
Mining, Quarryng Industry & Gravel Extraction Industry
144.5
Construction
865.5
Utilities
1,903.7
Communication
898.2
Transportation & Postal Industry
2,780.7
Wholesale & Retail
4,799.9
Finance & Insurance
6,453.2
Real Estate
6,337.8
Commodity Lease
1,546.0
Service Industries
2,426.5
Local Governments
1,275.2
Governments
5,599.4
Other
13,753.9

100.00%
12.78
0.06
0.00
0.26
1.55
3.40
1.60
4.97
8.58
11.53
11.32
2.76
4.34
2.28
10.00
24.57

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

8,693.7
356.4
3,049.4
5,287.8

100.00
4.10
35.08
60.82

7,166.8356.2
2,324.4
4,486.1

100.00
4.97
32.43
62.60

¥ 64,666.6/¥ 63,796.3

/

Total

100.00%
12.75
0.04
0.00
0.27
1.64
2.50
1.38
5.12
8.55
12.02
11.21
2.81
4.75
2.18
10.34
24.44

¥

(656.5)(67.2)
9.2
1.3
(9.4)
(62.1)
486.7
119.4(119.3)(42.9)(351.3)(13.1)(42.9)(262.5)43.3(257.1)(88.2)/
0.03)%
0.02
0.00(0.01)(0.09)
0.90
0.22(0.15)
0.03(0.49)
0.11(0.05)(0.41)
0.10(0.34)
0.13

1,526.8
0.1
724.9
801.7

/
(0.87)
2.65(1.78)

870.2/

Notes: 1. Loans to Finance & Insurance sector include loans to MHFG as follows:
As of March 31, 2012: ¥741.0 billion (from MHCB ¥41.0 billion; from MHBK ¥700.0 billion)
As of March 31, 2011: ¥741.5 billion (from MHCB ¥41.5 billion; from MHBK ¥700.0 billion)
2. Until March 31, 2011, all loans concerning “trust accounts” were aggregated into the outstanding balance. Beginning with April 1, 2012, based on the Ordinance for Enforcement of the
Banking Act, loans concerning money trusts, pension trusts, property formation benefit trusts, and loan trusts among trust accounts have been aggregated into the outstanding balance. The
figures of fiscal 2011 were reclassified in the same way.

Disclosed Claims under the FRL by Industry and Coverage Ratio (the Three Banks) (Banking Accounts and Trust Accounts)

Billions of yen, %As of March 31,

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
Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

2012
Disclosed Claims
under the FRL Coverage Ratio¥ 1,063.2
264.6
0.0
0.0
0.0
35.0
3.9
26.0
43.4
182.8
11.7
144.6
2.2
115.4
30.7
202.2
102.4
—
0.0
102.4
¥ 1,165.6

72.9%
63.9
75.3
100.0
100.0
71.6
59.1
63.6
81.9
62.7
31.0
84.9
81.8
61.8
100.0
89.6

2011
Disclosed Claims
under the FRL Coverage Ratio

¥

59.6
—
99.9
59.6
71.7%

¥

1,126.6
257.7
0.6
0.0
0.0
74.0
0.4
31.2
31.4
164.5
3.6
183.1
1.6
109.7
30.6
237.5

75.9%
57.8
92.7
100.0
100.0
74.4
57.3
66.2
83.8
67.2
52.4
86.5
87.4
71.0
100.0
93.6

81.3
—
2.0
79.2

53.7
—
100.0
52.4

1,208.0

74.4%

ChangeDisclosed Claims
under the FRL Coverage Ratio¥¥(63.4)
6.9
(0.5)
(0.0)
(0.0)
(39.0)
3.4
(5.2)
12.0
18.3
8.1
(38.4)
0.5
5.6
0.0(35.3)(3.0)%
6.0(17.3)
—
—
(2.8)
1.7
(2.5)
(1.9)
(4.5)
(21.4)
(1.5)
(5.6)
(9.1)
—
(4.0)

21.0
—
(2.0)
23.1

5.9
—
(0.0)
7.1

(42.3)(2.7)%

Financial Analysis—28

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

29—Financial Analysis

2012

2011

¥ 1,009.9
258.7
0.0
0.0
—
34.6
3.9
25.6
43.3
174.7
11.6
144.4
2.2
112.5
2.9
—
195.0

¥ 1,045.9
246.7
0.6
0.0
—
59.0
0.4
30.7
29.4
155.8
2.9
182.0
1.6
105.4
2.9
—
227.8

76.5
—
0.0
76.5

67.7
—
2.0
65.7

¥ 1,086.5¥ 1,113.7

Change¥(35.9)
11.9
(0.5)
(0.0)
—
(24.3)
3.4
(5.0)
13.9
18.8
8.6
(37.6)
0.5
7.0
(0.0)
—
(32.8)
8.7
—
(2.0)
10.8

¥

(27.2)

 Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2012

Billions of yen, %As of March 31, 2011

Billions of yen, %Argentina
Jamaica
Ecuador

¥

0.0
0.0
0.0

Argentina
Jamaica
Ecuador

¥

0.0
0.0
0.0

Total
Ratio to Total Assets

¥

0.0
0.00%

Total
Ratio to Total Assets

¥

0.0
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

Balance of Loans to Restructuring Countries (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen, Number of countries

As of March 31,

2012

Loan Amount
Number of Restructuring Countries

¥

2011

0.0
3

¥

0.0
3

Change¥(0.0)—

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,

2012
Non-Accrual,
Outstanding
Past Due &Restructured Loans
Balance

Outstanding
Balance

Asia
Hong Kong
South Korea
SingaporeThai¥ 3,094.8
669.4
456.7
434.5
435.5

22.1
0.9
1.5
3.9
5.7

¥ 2,429.7
557.2
362.6
321.2
353.4

¥

2011
Non-Accrual,
Past Due &Restructured Loans

¥

9.9
1.6
0.8
3.9
0.5

ChangeNon-Accrual,
Outstanding
Past Due &Balance
Restructured Loans

¥

665.0
112.2
94.0
113.2
82.0

¥

12.1
(0.6)
0.6
(0.0)
5.2

Central and South America

2,886.4

53.2

2,675.1

33.6

211.2

19.5

North America

2,506.2

2.7

2,111.1

2.8

395.0

(0.1)

Eastern Europe

20.8

—

39.9

9.1

(19.0)(9.1)

Western Europe

2,290.6

47.5

1,920.0

47.6

370.6

(0.1)

Other

908.1

8.4

801.9

4.6

106.1

3.7

Total

¥ 11,707.2¥ 134.0¥ 9,978.0¥ 107.9¥ 1,729.1¥

26.1

Note: Loans by Mizuho Corporate Bank (China), Ltd. which was established in June 2007 is not included in the above table.

Financial Analysis—30

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
2008
30, 2009
31, 2010
30, 2010
31, 2011 30, 2011 (a) 31, 2012 (b)Change(b)-(a)Amount Categorized as below
up to Fiscal 2008

¥ 11,737.2¥ 623.4of which the amount in the processof being removed from the balance sheet

1,295.3

178.9

132.2

109.7

81.1

56.1

40.2

(15.9)

2,702.2
9,034.9

235.0
388.3

185.6
247.8

156.8
179.8

123.8
146.9

94.3
125.4

75.1
114.9

(19.2)(10.4)

389.0

247.4

198.3

70.8

46.0

36.8

(9.2)

39.2

31.5

28.9

20.8

12.8

8.7

(4.1)

43.6
345.3

36.6
210.7

32.2
166.0

21.4
49.3

12.5
33.5

9.3
27.4

(3.1)
(6.0)

209.1

149.3

117.0

75.7

59.5

(16.1)

32.0

21.9

20.0

12.2

6.4

(5.7)

35.7
173.4

24.8
124.4

29.3
87.6

19.1
56.6

6.4
53.1

(12.6)
(3.4)

172.5

111.6

72.8

60.3

(12.4)

28.8

24.7

13.1

7.3

(5.8)

31.9
140.6

24.8
86.7

13.1
59.6

7.3
52.9

(5.8)
(6.6)

214.4

124.3

93.8

(30.4)

30.5

13.8

8.8

(5.0)

31.8
182.5

13.9
110.3

12.7
81.1

(1.2)
(29.2)

157.4

95.1

(62.3)

22.7

11.1(11.5)

22.7
134.7

13.9
81.1

(8.7)
(53.6)

142.8

142.8

30.8

30.8

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First 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
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
Amount Newly Categorized as below
during the First Half of Fiscal 2010

¥ 433.5 ¥ 336.6

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 2010of 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 2011

¥ 270.8 ¥ 219.7

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 2011of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Total

/ ¥1,012.5¥ 890.1 ¥ 856.9¥ 784.6 ¥ 696.1¥ 190.0 ¥ (29.7)

32.0
32.0
110.7
110.7
¥ 678.6 ¥ (17.5)

of which the amount in the processof being removed from the balance sheet

/

218.1

195.8

189.4

177.3

131.0

113.6

(17.3)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

/
/

278.7
733.7

258.0
632.0

245.8
611.0

231.4
553.2

175.8
520.3

157.0
521.5

(18.7)
1.2

31—Financial Analysis

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 2008
First Half of Fiscal 2009
Second Half of Fiscal 2009First Half of Fiscal 2010
Second Half of Fiscal 2010
First Half of Fiscal 2011
Second Half of Fiscal 2011
Total

Balance
as of March 31,
2012

Billions of yen%

Accumulated
RemovalAmountAccumulated
Removal Ratio

ModifiedAccumulated
Removal Ratio¥ 11,737.2
389.0
209.1
172.5
214.4
157.4
142.8

¥

190.0
36.8
59.5
60.3
93.8
95.1
142.8

¥ 11,547.1
352.2
149.5
112.2
120.5
62.3
/

98.3%
90.5
71.5
65.0
56.2
39.6
/

98.7%
92.7
74.5
69.3
60.3
46.7
/

¥ 13,022.7

¥

678.6

¥ 12,344.0//

Note: 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.

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 2008
Fiscal 2009
Fiscal 2009
Fiscal 2010
Fiscal 2010
Fiscal 2011 Half of Fiscal 2011

Liquidation¥

Restructuring(35.9)

¥

(8.1)

(3.1)

¥

(0.3)

(4.4)

¥

(0.7)

(3.7)

¥

—

(0.7)
(1.7)

¥

(0.4)

¥

—

(48.4)(11.0)

Improvement in Business Performancedue to Restructuring

(0.0)

(0.0)

—

—

(0.0)

(0.0)

(0.0)

Loan Sales(14.0)

(0.5)

(0.1)

(0.2)

(0.2)

(0.8)

(16.1)

Direct Write-off

50.6

2.4

2.8

1.8

(1.2)

(3.1)

53.4

Other
Debt Recovery
Improvement in Business Performance(22.2)(11.3)(10.8)

(7.7)
(4.6)
(3.0)

(13.5)(5.8)(7.6)(10.3)(4.0)(6.3)(26.3)(3.3)(23.0)(57.9)(19.5)(38.4)(138.2)(48.8)(89.4)(30.4)¥ (62.3)

Total¥(29.7)

¥

(9.2)

¥

(16.1)¥(12.4)¥¥(160.3)Financial Analysis—32

Financial Analysis

Status of Asset Quality(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Liquidation
Restructuring
Improvement in Business Performancedue to Restructuring
Loan Sales

Up to First
Half of Fiscal 2009

Breakdown of Amount Removed
In Second Half
In First Half In Second Half
In First Halfof Fiscal 2009 of Fiscal 2010 of Fiscal 2010 of Fiscal 2011¥¥

(1,655.1)(1,848.4)(16.0)(16.6)¥(19.2)¥(12.8)

Accumulated Removed
Amount from BS
In Second Halffrom Second Halfof Fiscal 2011of Fiscal 2000

(52.2)9) ¥(17.9)¥ (48.4)¥ (1,809.0)(76.2)(11.9)(11.0)(1,977.1))(181.7)

(2.9)

(0.1)

(0.1)

(6.5)

(0.0)

(191.6)(4,382.2)(61.6)(72.3)(43.1)(9.2)(16.1)(4,584.7)

Direct Write-off

3,399.3

(2.1)

68.2

78.8

18.1

53.4

3,615.9

Other
Debt Recovery
Improvement in Business Performance(6,445.3)//(232.0)(156.7)(75.2)(169.3)(109.7)(59.6)(193.8)(161.8)(32.0)(218.6)(76.2)(142.3)(138.2)(48.8)(89.4)(7,397.4)//¥ (11,113.7)¥ (331.5)¥ (205.8)¥ (286.6)¥ (245.9)¥ (160.3)¥ (12,344.0)

Total

Note: Up to First Half of Fiscal 2009 denotes the term from the Second Half of Fiscal 2000 to the First Half of Fiscal 2009.

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.

33—Financial Analysis

2012

¥

27.6

2011

¥

63.2

Change¥(35.6)

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]
Independent Auditors' Report

1

Consolidated Financial Statements

2

Notes to Consolidated Financial Statements

10

Financial Data of Mizuho Financial Group, Inc.

Independent Auditors’ Report

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc., which comprise the consolidated balance sheet as of March 31, 2012, and the consolidated statements of income, comprehensive income, changes in
net assets, and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for designing and operating such internal control as management
determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit of the consolidated
financial statements is not to express an opinion on the effectiveness of the entity's internal control, but in making these risk
assessments the auditor considers internal controls relevant to the entity's preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Mizuho Financial Group, Inc. as of March 31, 2012, and their consolidated financial performance and cash
flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for the convenience ofreaders, and, in our opinion, the accompanying consolidated financial statements have been properly translated on the basis
described in Note 1.

June 25, 2012
Tokyo, Japan

1—Financial Data of Mizuho Financial Group, Inc.

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2012

As of March 31,

AssetsCash and Due from Banks (Notes 18, 41, 43 and 44)
Call Loans and Bills Purchased (Note 43)
Receivables under Resale Agreements (Note 43)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 43)
Other Debt Purchased (Notes 43 and 44)
Trading Assets (Notes 11, 18, 43 and 44)
Money Held in Trust (Notes 43 and 44)
Securities (Notes 12, 18, 28, 43 and 44)
Loans and Bills Discounted (Notes 13, 18 and 43)
Foreign Exchange Assets (Note 14)
Derivatives other than for Trading Assets (Notes 43 and 45)
Other Assets (Notes 15, 18 and 44)
Tangible Fixed Assets (Notes 16, 18, 30 and 42)
Intangible Fixed Assets (Note 42)
Deferred Tax Assets (Note 29)
Customers' Liabilities for Acceptances and Guarantees (Note 28)
Reserves for Possible Losses on Loans (Notes 17 and 43)
Reserve for Possible Losses on Investments
Total Assets
Liabilities and Net Assets
Liabilities
Deposits (Notes 18, 19 and 43)
Debentures (Notes 20 and 43)
Call Money and Bills Sold (Notes 18, 21 and 43)
Payables under Repurchase Agreements (Notes 18 and 43)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 18 and 43)
Commercial Paper (Note 22)
Trading Liabilities (Notes 11 and 43)
Borrowed Money (Notes 18, 23 and 43)
Foreign Exchange Liabilities (Note 14)
Short-term Bonds (Note 24)
Bonds and Notes (Notes 25 and 43)
Due to Trust Accounts
Derivatives other than for Trading Liabilities (Note 45)
Other Liabilities (Note 26)
Reserve for Bonus Payments
Reserve for Employee Retirement Benefits (Note 27)
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities (Note 29)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 30)
Acceptances and Guarantees (Note 28)
Total Liabilities¥

7,278,477
249,032
7,123,397¥

2011

9,950,913
375,716
7,467,309

Thousands of
U.S. dollars (Note 1)
2012$

88,610,640
3,031,805
86,722,644

6,406,409
1,542,062
14,075,005
71,414
51,392,878
63,800,509
1,016,665
4,474,729
2,871,153
923,907
485,995
359,987
3,980,644(691,760)(10)

6,541,512
1,667,808
13,500,182
122,267
44,782,067
62,777,757
977,465
5,102,760
2,754,017
947,986
442,922488,769
3,673,339(760,762)(25)

77,993,786
18,773,593
171,353,855
869,422625,674,198
776,728,868
12,377,233
54,476,868
34,954,385
11,247,965
5,916,667
4,382,606
48,461,711(8,421,722)(132)¥ 165,360,501¥ 160,812,006$ 2,013,154,392¥ 90,636,656―
5,668,929
12,455,152¥ 88,884,158
740,932
5,095,412
11,656,119$ 1,103,441,156―
69,015,453
151,633,213

7,710,373
362,694
8,215,668
14,763,870
233,184
538,198
4,783,180
1,003,129
4,288,356
3,610,067
38,57736,0532,256
824,55915,76920,193
1,221
19,21983,2433,980,644

5,488,585
226,167
7,652,811
15,969,385
167,670
585,497
5,110,947
1,045,599
4,599,579
3,053,136
39,33635,6152,239
420
15,081
15,22913,344
1,382
17,59998,415
3,673,339

93,868,679
4,415,562
100,020,308
179,740,326
2,838,861
6,552,204
58,232,045
12,212,433
52,207,900
43,950,171
469,657
438,92127,476
101
298,991
191,984
245,843
14,874
233,981
1,013,430
48,461,711¥ 158,491,206¥ 154,188,007$ 1,929,525,280

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—2

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheetsー(Continued)
Millions of yen
2012

As of March 31,

Net Assets
Common Stock and Preferred Stock (Note 31)
Capital Surplus
Retained Earnings
Treasury Stock (Note 31)
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 44)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 30)
Foreign Currency Translation Adjustments
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights (Note 32)
Minority Interests
Total Net Assets
Total Liabilities and Net Assets¥

2,254,972
1,109,783
1,405,066(7,074)4,762,749
37,85767,045
144,635(102,850)
146,687
2,158
1,957,699
6,869,295¥ 165,360,501

¥

2011

2,181,375
937,680
1,132,351(3,196)

4,248,209(21,648)
68,769137,707(103,921)
80,9062,754
2,292,128
6,623,999¥ 160,812,006

Thousands of
U.S. dollars (Note 1)
2012$

27,452,799
13,510,883
17,105,751(86,122)57,983,311
460,887
816,237
1,760,843(1,252,139)
1,785,828
26,28023,833,693
83,629,112$ 2,013,154,392

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statements of Income
Millions of yen
2012

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 33)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 34)
Other Operating Income (Note 35)
Other Income (Note 37)¥

Total Income
Expenses
Interest Expenses (Note 33)
Fee and Commission Expenses
Trading Expenses (Note 34)
Other Operating Expenses (Note 36)
General and Administrative Expenses (Note 32)
Other Expenses (Note 38)
Total Expenses
Income before Income Taxes and Minority Interests
Income Taxes:
Current
Deferred
Total Income Taxes
Income before Minority Interests
Minority Interests in Net Income
Net Income

3—Financial Data of Mizuho Financial Group, Inc.

¥

1,423,564
49,014566,888
150,317355,745
263,024¥2011

1,457,687
49,388562,485
243,983
307,276
156,212

Thousands of
U.S. dollars (Note 1)
2012$

17,330,949
596,718
6,901,495
1,830,021
4,330,968
3,202,153

2,808,555

2,777,034

34,192,304

335,223
107,954―
99,277
1,283,847
265,803348,242
103,660—
143,596
1,277,848
268,261

4,081,120
1,314,279―
1,208,636
15,629,996
3,235,977

2,092,106
716,449

2,141,608
635,425

25,470,008
8,722,296

55,332
97,494
152,827
563,621
79,102

18,336
120,123
138,460
496,965
83,736

673,642
1,186,932
1,860,574
6,861,722
963,017484,519¥

413,228$

5,898,705

Per Share of Common Stock
Yen
2012

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

20.62
19.75
6.00

2011

¥

20.47
19.27
6.00

U.S. dollars (Note 1)
2012

$

0.25
0.24
0.07

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statements of Comprehensive Income
Millions of yen
2012

For the Fiscal Years ended March 31,

Income before Minority Interests
Other Comprehensive Income(Note 39):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income (Note 39)
Comprehensive Income Attributable to Owners of the Parent(Note 39):
Comprehensive Income Attributable to Minority Interests(Note 39):¥563,62163,962
51,913(1,560)11,821(1,106)¥

2011

496,965(230,296)(204,201)(14,463)(21)(11,953)

Thousands of
U.S. dollars (Note 1)
2012$

6,861,722
778,702632,016(18,999)
143,920(13,474)¥

2,894
627,584¥344
266,668$

35,2397,640,424¥

555,194¥

189,005$

6,759,123

72,39077,663881,301

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—4

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets

2011

Thousands of
U.S. dollars (Note 1)2012¥ 2,181,375¥ 1,805,565$ 26,556,793

350
73,24773,5972,254,972

375,810—375,8102,181,375

4,269
891,737
896,006
27,452,799

937,680

552,135

11,415,632

350
171,575
178
172,103
1,109,783

385,544——385,544937,680

4,269
2,088,813
2,169
2,095,251
13,510,883

1,132,351

854,703

13,785,631(216,472)
484,519(225)
4,893
272,714
1,405,066(134,966)
413,228(1,314)
701
277,648
1,132,351(2,635,413)
5,898,705(2,747)59,575
3,320,120
17,105,751(3,196)(5,184)(38,921)(13,318)(2,560)12,001(3,877)¥ (7,074)

—
(3)
1,990
1,987
(3,196)(162,140)(31,167)
146,106(47,201)(86,122)

Millions of yen
2012

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
Increase in Stock due to Share Exchange
Total Changes during the period
Balance as of the end of the period
Capital Surplus
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Increase in Stock due to Share Exchange
Disposition of Treasury Stock
Total Changes during the period
Balance as of the end of the period
Retained Earnings
Balance as of the end of the previous period
Changes during the period
Cash Dividends
Net Income
Disposition of Treasury Stock
Transfer from Revaluation Reserve for Land
Total Changes during the period
Balance as of the end of the period
Treasury Stock
Balance as of the end of the previous period
Changes during the period
Increase in Stock due to Share Exchange
Repurchase of Treasury Stock
Disposition of Treasury Stock
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.

5—Financial Data of Mizuho Financial Group, Inc.

¥$

Consolidated Statements of Changes in Net Assetsー(Continued)

2011

Thousands of
U.S. dollars (Note 1)2012¥ 4,248,209¥ 3,207,219$ 51,719,135

701
231,504(216,472)
484,519(2,560)11,953
4,893
514,539

761,354—(134,966)
413,228(3)675
701
1,040,990

8,538
2,818,410(2,635,413)
5,898,705(31,167)
145,528
59,575
6,264,176

4,762,749

4,248,209

57,983,311(21,648)

176,931(263,555)

59,50559,50537,857(198,579)(198,579)(21,648)

724,442
724,442
460,887

68,76983,093

837,221(1,723)(1,723)67,045(14,324)(14,324)
68,769(20,984)(20,984)
816,237

137,707

138,430

1,676,498

6,928
6,928
144,635

(722)
(722)
137,707

84,34584,345
1,760,843(103,921)(92,623)(1,265,178)

1,071
1,071
(102,850)(11,297)(11,297)(103,921)

13,03913,039(1,252,139)

80,906

305,831984,986

65,78165,781
146,687(224,924)(224,924)¥
80,906800,842
800,842
1,785,828

Millions of yen
2012

For the Fiscal Years ended March 31,

Total Shareholders' Equity
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Increase in Stock due to Share Exchange
Cash Dividends
Net Income
Repurchase of Treasury Stock
Disposition of Treasury Stock
Transfer from Revaluation Reserve for Land
Total Changes during the period
Balance as of the end of the period
Accumulated Other Comprehensive Income
Net Unrealized Gains (Losses) on Other Securities
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
Deferred Gains or Losses Hedges
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
Revaluation Reserve for Land
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
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
Total Changes during the period
Balance as of the end of the period
Total Accumulated Other Comprehensive Income
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¥$

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—6

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assetsー(Continued)
Millions of yen
2012

For the Fiscal Years ended March 31,

Stock Acquisition Rights
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
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
Total Net Assets
Balance as of the end of the previous period
Changes during the period
Issuance of New Shares
Increase in Stock due to Share Exchange
Cash Dividends
Net Income
Repurchase of Treasury Stock
Disposition of Treasury Stock
Transfer from Revaluation Reserve for Land
Net Changes in Items other than Shareholders' Equity
Total Changes during the period
Balance as of the end of the period

¥

2,754

2,301

$

33,534

(595)
(595)
2,158

452
452
2,754

(7,254)(7,254)
26,2802,292,128

2,321,700

27,905,139(334,428)(334,428)
1,957,699(29,572)(29,572)
2,292,128(4,071,446)(4,071,446)
23,833,693

6,623,999

5,837,053

80,642,794

701
231,504(216,472)
484,519(2,560)11,953
4,893(269,243)
245,296

761,354—(134,966)
413,228(3)675
701(254,044)
786,946

8,538
2,818,410(2,635,413)
5,898,705(31,167)
145,528
59,575(3,277,858)
2,986,318¥ 6,869,295¥ 6,623,999

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

7—Financial Data of Mizuho Financial Group, Inc.

¥

2011

Thousands of
U.S. dollars (Note 1)
2012$

83,629,112

Consolidated Statements of Cash Flows
Millions of yen
2012

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Gains on Negative Goodwill Incurred
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on
Investments
Increase (Decrease) in Reserve for Possible Losses on Sales of
Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Employee Retirement
Benefits
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Losses (Gains) on Securities Contribution to Employees'
Retirement Benefits Trust
Net Decrease (Increase) in Trading Assets
Net Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Net Decrease (Increase) in Loans and Bills Discounted
Net Increase (Decrease) in Deposits
Net Increase (Decrease) in Debentures
Net Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Net Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Net Decrease (Increase) in Call Loans, etc.
Net Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Net Increase (Decrease) in Call Money, etc.
Net Increase (Decrease) in Commercial Paper
Net Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Net Decrease (Increase) in Foreign Exchange Assets
Net Increase (Decrease) in Foreign Exchange Liabilities
Net Increase (Decrease) in Short-term Bonds (Liabilities)
Net Increase (Decrease) in Bonds and Notes¥

716,449
165,436
7,067
2,802(91,180)(2,689)(66,467)¥2011

635,425
165,840
3,546
—
—
6,185
(117,749)

Thousands of
U.S. dollars (Note 1)
2012$

8,722,296
2,014,084
86,04034,116(1,110,063)(32,738)(809,199)

(14)

(3)

(182)

(407)
9,486
(632)

(14,167)272(7,493)(4,965)
115,497(7,701)

482

1,457

5,876

17
539

126
480

218
6,572

6,849
(1,423,564)
335,223(121,258)(6)
104,847
5,309

2,519
(1,457,687)
348,242(86,011)28
386,503
4,821

83,386(17,330,949)
4,081,120(1,476,238)(82)
1,276,446
64,6371,416(639,202)
597,305
612,691—
179,713264,349
1,869,501

17,245(7,781,868)
7,271,798
7,459,113(295,324)(1,192,565)
1,900,536(740,932)(1,922,481)(1,241,644)
2,952,848(776,864)(3,595,375)(14,518,699)
23,137,777(9,020,367)(1,173,814)

6,335,771(14,290,418)(53,286)
478,782(405,202)(332,420)(648,730)
5,828,862

135,102
1,531,518
138,909(796,610)(255,529)
226,167

1,644,783
18,645,221
1,691,128

2,221,787(46,710)
65,672(47,299)¥ (50,399)(1,126,927)(291,489)(5,083)
93,100¥563,71127,048,790(568,671)
799,516(575,838)$ (613,586)

Financial Data of Mizuho Financial Group, Inc.—8

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Cash Flowsー(Continued)
Millions of yen
2012

For the Fiscal Years ended March 31,

Net Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net¥

2011

Thousands of
U.S. dollars (Note 1)
2012(42,469) ¥1,451,469(338,893)
40,646

20,167
1,523,605(373,999)(296,250)

4,203,229(40,201)

6,076,767(25,249)

51,171,527(489,432)

4,163,027

6,051,517

50,682,095(102,558,707)
82,444,484
14,009,218(43,485)
94,295(53,613)(93,506)
11,7070(85,279,500)
71,215,909
12,595,209(53,995)
51,080(75,803)(121,007)362
9(1,248,584,213)
1,003,706,891
170,552,940(529,407)
1,147,979(652,707)(1,138,377)
142,53210(634)(2,012)(7,726)20(294)
14,838

2,290
—
—

251
(3,588)
180,649

Net Cash Provided by (Used in) Investing Activities(6,175,676)(1,667,457)(75,184,766)

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

8,000(40,015)
170,000(441,530)4
627(54,855)(215,901)(106,383)(2,560)1,960—(15,000)—(369,013)
761,354
1,697—(133,925)(90,062)(3)
4

97,395(487,166)
2,069,637(5,375,336)
58
7,638(667,823)(2,628,459)(1,295,143)(31,167)
23,868(680,652)

155,051(8,286,498)(6,020)(35,434)(73,293)

Net Increase (Decrease) in Cash and Cash Equivalents(2,699,322)

4,503,677(32,862,462)

Cash and Cash Equivalents at the Beginning of the Fiscal Year
Increase in Cash and Cash Equivalents from Newly
Consolidated Subsidiary
Cash and Cash Equivalents at the End of the Fiscal Year
(Note 41)¥

9,182,461

4,678,783

111,790,372

0

—

1

Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Payments for Purchase of Stocks of Subsidiaries (affecting thescope of consolidation)
Proceeds from Sale of Stocks of Subsidiaries (affecting thescope of consolidation)
Payments for Purchase of Equity of Consolidated Subsidiaries
Proceeds from Sale of Equity of Consolidated Subsidiaries

Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents

6,483,138 ¥See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

9—Financial Data of Mizuho Financial Group, Inc.

9,182,461$$(517,042)
17,670,676(4,125,805)
494,846

78,927,911

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the
Company Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles
generally accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho 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 as of March 31, 2012 and 2011 were 149 and 152, respectively.
In the fiscal year ended March 31, 2012, PT. Mizuho Balimor Finance and five other companies were newly
consolidated as a result of acquisition of the stocks and other factors.
In the fiscal year ended March 31, 2012, MCAL Corporation and eight other companies were excluded from thescope of consolidation as a result of dissolution and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2012 and 2011.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2012 and 2011.
(b) The numbers of affiliates under the equity method as of March 31, 2012 and 2011 were 23 and 22, respectively.
Investments in affiliates include Orient Corporation and The Chiba Kogyo Bank, Ltd. and Joint Stock Commercial Bank
for Foreign Trade of Vietnam and certain other affiliates.
In the fiscal year ended March 31, 2012, Joint Stock Commercial Bank for Foreign Trade of Vietnam and three othercompanies were newly included in the scope of the equity method as a result of acquisition of the stocks and otherfactors.
In the fiscal year ended March 31, 2012, Japan Industrial Partners Inc. and two other companies were excluded fromthe scope of the equity method as a result of the sale of stocks and other factors.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2012 and 2011.
(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.

Financial Data of Mizuho Financial Group, Inc.—10

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, 2012 are as follows:
The day before the last business day of June

5 companies

September 30

1 company

December 29

18 companies

December 31

56 companies

March 31
69 companies(b) Consolidated subsidiaries with balance sheet dates of the day before the last business day of June and December 29
were consolidated based on their tentative financial statements as of and for the period ended December 31.
Consolidated subsidiaries with balance sheet dates of September 30 were consolidated based on their tentative
financial statements as of and for the period ended the consolidated balance sheet date. Other consolidated
subsidiaries were consolidated based on their financial statements as of and for the period ended their 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 20 and 23 special purpose entities (mainly incorporated in the Cayman Islands) in their borrowings and fundraising by commercial paper in order to support securitization of monetary assets of customers as of March 31, 2012
and 2011, respectively. The aggregate assets and aggregate liabilities of these 20 and 23 special purpose entities
amounted to ¥2,111,218 million ($25,702,679 thousand) and ¥2,110,042 million ($25,688,371 thousand), respectively,
as of March 31, 2012, and ¥2,146,309 million and ¥2,145,260 million, respectively, as of March 31, 2011. MHBK, MHCB
and MHTB do not own any shares with voting rights in any of these special purpose entities and have not dispatchedany director 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,
2012 and 2011 are as follows:
2012

Millions of yen
2011¥ 1,696,213
470,702¥ 1,701,545
427,325

2012

Millions of yen
2011

As of March 31,

Loans
Credit and Liquidity Facilities

For the fiscal years ended March 31,

Interest Income on Loans
Fee and Commission Income, etc.

11—Financial Data of Mizuho Financial Group, Inc.

¥

11,4892,423¥

12,887
2,271

Thousands of U.S. dollars
2012$ 20,650,278
5,730,489
Thousands of U.S. dollars
2012$

139,882
29,507

6. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses(Additional Information)
In light of the commencement of business by the domestic consolidated banking subsidiary in the American States,
credited loans held for the purpose of trading, are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including thegains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statements of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheets. Income or expenses generated on
the relevant trading transactions 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, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks 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 reasonablevalue at the consolidated balance sheet date (cost of securities sold is calculated primarily by the moving-averagemethod). Other securities, the fair values of which are extremely difficult to determine, are stated at acquisition costor amortized cost which is determined by the moving-average method.
In addition, investments in non-consolidated subsidiaries and affiliates which are not under the equity method arestated at acquisition 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 a loss for the fiscal year (“impairment (devaluation)”), if thefair 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 arecovery in the fair value. The amounts of impairment (devaluation) were ¥46,793 million ($569,681 thousand) and¥83,641 million for the fiscal years ended March 31, 2012 and 2011, 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

Financial Data of Mizuho Financial Group, Inc.—12

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

・Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted
In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The
face value of these bills amounted to ¥823,095 million ($10,020,644 thousand) and ¥734,051 million as of March 31,
2012 and 2011, respectively.

(5) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method ofhedge accounting (see (21) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 2 years to 50 years
Others2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly five years as determined by MHFG
and its consolidated subsidiaries.

(8) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets• 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. Bonddiscounts 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 isdirectly deducted from bonds, based on the tentative measure stipulated in the “Tentative Solution on Accounting for
Deferred Assets” (ASBJ Report No.19, August 11, 2006).

13—Financial Data of Mizuho Financial Group, Inc.

(10) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs
described below and expected amounts recoverable from the disposition of collateral and the amounts recoverable
under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 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 isapplied, under which the reserve is determined as the difference between the book value of the loan and its
present value of future cash flows discounted using the contractual interest rate before the loan was classified asa Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of
the assessments are verified and examined by the independent examination departments. Reserves for Possible
Losses on Loans are provided on the basis of such verified assessments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or
guaranteed by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds fromthe sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of theclaims) are written off against the respective claim balances. The total directly written-off amounts were ¥327,650 million($3,988,927 thousand) and ¥416,313 million as of March 31, 2012 and 2011, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.
Except for securitization 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 the Group's domestic banking subsidiary. Since securities arerecognized at fair value on the consolidated balance sheets, the balance of Securities is offset against that of Reserve
for Possible Losses on Investments by ¥1,292 million ($15,738 thousand) and ¥721 million for the fiscal years ended
March 31, 2012 and 2011, respectively.

(12) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

Financial Data of Mizuho Financial Group, Inc.—14

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(13) Reserve for Employee Retirement Benefits
Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future benefit
payments to employees, is recorded as the required amount, based on the projected benefit obligation and theestimated plan asset amounts at the end of the fiscal year. Unrecognized actuarial differences are recognized asincome or expenses from the following fiscal year under the straight-line method over a certain term within the averageremaining service period of the employees of the respective fiscal year.

(14) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors and executive officers, is recognized at the amount accrued at the end of therespective fiscal year, based on the internally established standards.

(15) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not coveredby other specific reserves, in off-balance transactions, trust transactions and others. The balance is an estimate ofpossible future losses, on an individual basis, considered to require a reserve.

(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities atthe estimated amount of future claims for withdrawal by depositors and others.

(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥1,221
million ($14,874 thousand) and ¥1,382 million as of March 31, 2012 and 2011, 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.

(20) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in nonconsolidated subsidiaries and affiliates not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the abovetransactions, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance sheet
dates.

15—Financial Data of Mizuho Financial Group, Inc.

(21) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by themethod stipulated in the JICPA Industry Audit Committee Report No.24.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
Deferred Gains or Losses on Hedges recorded on the consolidated balance sheets resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), underwhich the overall interest rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis
using derivatives transactions. These deferred hedge gains/losses are amortized as interest income or interest
expenses over the remaining maturity and average remaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses on the macro-hedges, before net of applicable income
taxes, were ¥7,813 million ($95,119 thousand) and ¥16,874 million as of March 31, 2012 and 2011, respectively.
The unamortized amounts of gross deferred hedge gains on the macro-hedges, before net of applicable income
taxes, were ¥5,732 million ($69,784 thousand) and ¥13,984 million as of March 31, 2012 and 2011, respectively.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency
position of the hedged monetary claims and liabilities is equal to or larger than that of currency-swap transactions,exchange swap transactions, and similar transactions designated as the hedging instruments of the foreignexchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statements of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports Nos.24
and 25.

Financial Data of Mizuho Financial Group, Inc.—16

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(22) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(23) Amortization Method of Goodwill and Amortization Period
Goodwill of Mizuho Trust & Banking Co., Ltd. is amortized over a period of 20 years under the straight-line method.
Goodwill of Eurekahedge Pte, Ltd. is amortized over a period of 10 years under the straight-line method. Goodwill of PT.
Mizuho Balimor Finance is amortized over a period of 9 years under the straight-line method. The amount of other
Goodwill is expensed as incurred since the amount has no material impact.

(24) 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. Issued but not yet Adopted Accounting Standard and Others
Revised ASBJ Statement No. 22 “Accounting Standard for Consolidated Financial Statements” (March 25, 2011)
This accounting standard mainly represents a revision to the “Concrete Treatments Related to the Revision of theDefinition of the Subsidiaries and Affiliates within the Consolidated Financial Statement System” (Business Accounting
Council, October 30, 1998)III.
Prior to the revision, special purpose entities that met specific conditions were presumed not to be subsidiaries ofinvestors in and companies transferring assets to the relevant special purpose entities. After the revision, this treatment
only applies to companies transferring assets to the special purpose entities.
Mizuho Financial Group is scheduled to apply this accounting standard from the beginning of the fiscal year starting on
April 1, 2013.
On adoption of this accounting standard, those special purpose entities that had not previously been treated as
subsidiaries, where the transferor of the assets to the special purpose entity is not a domestic bank subsidiary, will be
newly included within the scope of consolidation.
The impact of the application of this accounting standard and others issued but not yet adopted is currently underconsideration.

8. Changes in Presentation of Financial Statements
Certain items in expenses regarding stock transfer agency business and pension management business, which had
been recorded as “General and Administrative Expenses” in some domestic consolidated trust bank subsidiary until theprevious fiscal year, have been recorded as “Fee and Commission Expenses” beginning with this fiscal year, from thestandpoint that we should disclose our financial information which reflects economic conditions more clearly in a mannerthat actively responds to our profits, after turning the relevant trust bank subsidiary into a wholly-owned subsidiary of
MHFG.
In order to reflect the change in presentation of financial statements, reclassification of the previous fiscal year has
been made accordingly. As a result, “Fee and Commission Expenses” ¥95,693 million ($1,165,001 thousand) and“General and Administrative Expenses” ¥1,285,815 million ($15,653,952 thousand) presented in the previous fiscal year
have been reclassified as “Fee and Commission Expenses” ¥103,660 million ($1,261,997 thousand) and “General and
Administrative Expenses” ¥1,277,848 million（$15,556,956 thousand).

17—Financial Data of Mizuho Financial Group, Inc.

9. Additional Information(a) Mizuho Financial Group has applied “The Accounting Standard for Accounting Changes and Error Corrections”(ASBJ Statement No.24, December 4, 2009) and “Guidance on the Accounting Standard for Accounting Changes
and Error Corrections” (ASBJ Guidance No.24, December 4, 2009) beginning with the treatment of accountingchanges and corrections of prior period errors that are made after the beginning of this fiscal year.
Based on “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting PracticeCommittee Statement No.14), “Reversal of Reserves for Possible Losses on Loans” and “Recovery on Written-off
Claims” have been recorded in “Other Ordinary Income” beginning with this fiscal year. However, retrospective
application was not made for the previous fiscal period.
(b) One of our consolidated foreign securities subsidiaries has received requests for information from the U.S. Securities
and Exchange Commission concerning the structuring and offering of certain securitization transactions involving
subprime mortgages. It has been responding to such requests. In consideration of the individual risk and other factors,
the estimated amount of loss calculated by a reasonable method has been recorded in the financial statements.
(c) Mizuho Financial Group, Inc. (“MHFG”), Mizuho Bank, Ltd. (“MHBK”) and Mizuho Corporate Bank, Ltd. (“MHCB”)
announced on November 14, 2011 in the release titled “Memorandum of Understanding on Merger between Mizuho
Bank, Ltd. and Mizuho Corporate Bank, Ltd.” that MHBK and MHCB plan to conduct a merger (the “Merger”) byaround the end of the first half of fiscal year 2013, on the assumption that filings will have been made to, andpermission obtained from, the relevant authorities in Japan and any foreign countries. MHFG, MHBK and MHCB
determined at their respective meetings of the board of directors held on March 30, 2012 that the effective date of the
Merger shall be July 1, 2013.

10. Securities Lending and Borrowing Transactions
Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,149 million ($50,513
thousand) and ¥4,198 million as of March 31, 2012 and 2011, 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 underresale agreements and securities borrowed with cash collateral. Among them, the total of securities repledged were
¥8,097,653 million ($98,583,559 thousand) and ¥9,428,034 million as of March 31, 2012 and 2011, respectively, borrowed
securities re-loaned were ¥18,741 million as of March 31, 2011, and securities neither repledged nor re-loaned were
¥2,992,464 million ($36,431,271 thousand) and ¥1,961,545 million as of March 31, 2012 and 2011, respectively.

11. Trading Assets and Liabilities
As of March 31,

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

Millions of yen
2012

2011

Thousands of U.S. dollars
2012¥ 9,821,312¥ 9,497,860$ 119,567,965

4,095,682
158,010

3,845,432
156,889

49,862,219
1,923,671¥ 14,075,005¥ 13,500,182$ 171,353,855¥ 4,406,811¥ 4,249,792$ 53,650,008

3,624,212
184,6443,260,805
142,213

44,122,381
2,247,919¥ 8,215,668¥ 7,652,811$ 100,020,308

Financial Data of Mizuho Financial Group, Inc.—18

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

12. Securities
Millions of yen
2012

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Japanese Stocks*1
2
Other*
Total¥ 34,490,292
272,566
3,411,323
2,962,599
10,256,096¥ 51,392,878

2011

Thousands of U.S. dollars
2012¥ 30,490,199
230,169
3,954,636
3,116,298
6,990,763¥ 44,782,067$ 419,896,425
3,318,312
41,530,604
36,067,685
124,861,172$ 625,674,198*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥212,255 million ($2,584,069 thousand) and ¥205,755 million as ofMarch 31, 2012 and 2011, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥47,678 million ($580,457 thousand) and ¥3,811 million as of March 31, 2012
and 2011, respectively.

13. Loans and Bills Discounted
Millions of yen
2012

2011

Thousands of U.S. dollars
2012¥ 52,064,564
9,230,608
2,153,557
255,680¥ 51,427,310
8,727,440
2,308,108
206,134$ 633,851,534
112,376,535
26,218,129
3,112,736

89,895
6,202¥ 63,800,509

102,938
5,825¥ 62,777,757

1,094,419
75,515$ 776,728,868

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, 2012 and 2011 include the following:
Millions of yen
2012

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
3
Loans Past Due for Three Months or More*
4
Restructured Loans*
Total

2011

Thousands of U.S. dollars
2012¥

40,767
582,618
20,246
589,515¥

46,116
660,718
25,034496,991$

496,318
7,092,991
246,484
7,176,959¥

1,233,147¥

1,228,859$

15,012,752*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the
Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are
deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

19—Financial Data of Mizuho Financial Group, Inc.

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥59,863,135 million ($728,793,956
thousand) and ¥58,034,077 million as of March 31, 2012 and 2011, respectively. Of these amounts, ¥52,139,576 million($634,764,746 thousand) and ¥51,102,222 million as of March 31, 2012 and 2011, respectively, relate to contracts ofwhich the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customer's business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

14. Foreign Exchange Assets and Liabilities
Millions of yen
2012

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

¥

2011

Thousands of U.S. dollars
2012

585,445
302,160
126,8332,226¥ 539,414
276,993
159,438
1,619$

7,127,411
3,678,601
1,544,114
27,107¥ 1,016,665¥ 977,465$ 12,377,233¥

205,074
8,979
12,9646,165¥ 140,353
5,438
12,1899,688$

2,496,642
109,314
157,838
75,067¥233,184¥ 167,670$

2,838,861

15. Other Assets
Millions of yen
2012

As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

246,995
28,1202,596,037¥ 2,871,153

2011

¥

238,527
27,5972,487,892¥ 2,754,017

Thousands of U.S. dollars
2012$

3,007,004
342,344
31,605,037$ 34,954,385

Financial Data of Mizuho Financial Group, Inc.—20

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

16. Tangible Fixed Assets
Millions of yen
2012

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 andOthers2011

Thousands of U.S. dollars
2012¥

469,983
325,804
14,185
11,575102,359¥

475,869
321,987
14,922
28,777
106,430$¥

923,907¥947,986$ 11,247,965¥

827,245¥799,355$ 10,071,167

37,126436,7942011

Thousands of U.S. dollars
2012(501,450)$ (5,449,092)(259,301)(2,972,517)¥(10)(760,762)(113)$ (8,421,722)

Millions of yen
2012

2011

Thousands of U.S. dollars
2012

35,8785,721,732
3,966,448
172,704
140,918
1,246,163

17. Reserves for Possible Losses on Loans
Millions of yen
2012

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

¥

(447,588)¥(244,162)¥(9)(691,760)

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
6,013,994
21,164,469
8,938,619
7,977
94

¥

130
6,255,353
18,571,019
9,376,342
19,815
126

$

1,583
73,216,392
257,663,371
108,821,768
97,120
1,153

The following liabilities were collateralized by the above assets:
Millions of yen
2012

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money

21—Financial Data of Mizuho Financial Group, Inc.

¥

449,657
1,596,300¥

2011

824,972
1,878,300

Thousands of U.S. dollars
2012$

5,474,279
19,433,893

5,393,206

4,608,710

65,658,715

7,501,763
12,874,822

4,628,424
14,198,742

91,328,992
156,742,427

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥19,397 million($236,153 thousand) and ¥17,658 million, Trading Assets of ¥205,088 million ($2,496,821 thousand) and ¥189,100 million,
Securities of ¥2,300,771 million ($28,010,363 thousand) and ¥2,363,237 million, and Loans and Bills Discounted of¥73,206 million ($891,245 thousand) and ¥45,307 million as of March 31, 2012 and 2011, respectively. None of the assets
were pledged as collateral in connection with borrowings by the non-consolidated subsidiaries and affiliates.
Other Assets included guarantee deposits of ¥106,625 million ($1,298,093 thousand) and ¥106,814 million, collateralpledged for derivatives transactions of ¥549,980 million ($6,695,645 thousand) and ¥247,600 million, margins for futurestransactions of ¥92,841 million ($1,130,282 thousand) and ¥33,492 million, and other guarantee deposits of ¥49,449 million($602,014 thousand) and ¥35,782 million as of March 31, 2012 and 2011, respectively.
Rediscount of bills is conducted as financial transaction based on the JICPA Industry Audit Committee Report No.24.
However, there was no balance for bankers' acceptances, commercial bills, documentary bills or foreign exchange bills
purchased, as of March 31, 2012 and 2011.

19. Deposits
Millions of yen
2012

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥ 6,206,103
36,527,387
786,976
32,432,117
11,824,746
2,859,324¥ 90,636,656

2011

Thousands of U.S. dollars
2012¥ 6,142,259
36,557,770
835,186
32,479,840
9,650,236
3,218,865¥ 88,884,158$

75,555,193
444,696,705
9,580,917
394,839,516
143,958,445
34,810,380$ 1,103,441,156*1 Ordinary Deposits includes savings deposits.

20. Debentures
As of March 31,
Issuer Description

Millions of yen
2012

MHCB Coupon Debentures

¥

2011

－ ¥

－

Thousands of
U.S. dollars
2012$Interest rates
2012

2011

－

－

－

MHBK Coupon Debentures

－

4,306

－

－

0.24%–0.56%

MHBK Coupon Debentures(with compoundinterest)－

42,704－－

0.24%–0.56%

MHBK Coupon Debentures(saving-type)－629,425－－

0.06%–0.66%

MHBK Coupon Debentures(saving-type withcompound interest)－

64,496－－

0.06%–0.66%

Total

¥

－ ¥ 740,932$－

Note: No collateral was provided for the above debentures.

21. Call Money and Bills Sold
As of March 31,

Call Money
Bills Sold
Total

Millions of yen
2012¥ 5,668,929—¥ 5,668,929

2011

Thousands of U.S. dollars
2012¥ 5,095,412—¥ 5,095,412$ 69,015,453—$ 69,015,453

Financial Data of Mizuho Financial Group, Inc.—22

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

22. Commercial Paper
Millions of yen
2012

As of March 31,

Commercial Paper¥362,694

2011

Thousands of U.S. dollars
2012¥226,167$ 4,415,562

Average interest rates*1
2012
2011

0.40%

0.27%

*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.

23. Borrowed Money
Millions of yen
2012

As of March 31,

Borrowed Money
Bills rediscounted
Other Borrowings*2,3¥14,763,870―
14,763,870

2011

Thousands of U.S. dollars
2012¥15,969,385―
15,969,385$ 179,740,326―
179,740,326

Average interest rates*1
2012
2011

0.26%
—%
0.26%

0.23%
—%
0.23%

*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 ¥612,543 million ($7,457,311 thousand) and ¥644,329 million as of March 31, 2012 and 2011, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2013 ¥13,352,268 million($162,555,009 thousand)2014 ¥
79,599 million($
969,073 thousand)2015 ¥ 283,066 million($ 3,446,148 thousand)2016 ¥ 433,848 million($ 5,281,812 thousand)2017 ¥
90,943 million($ 1,107,178 thousand)

24. Short-term Bonds
Major components of Short-term Bonds at March 31, 2012 were as follows:
IssuerIssue

Millions of yen Thousands of U.S. dollars

MHFG

Jan. 2012–Mar. 2012

¥

MHCB

Jan. 2012–Mar. 2012

MHSC

Oct. 2011–Mar. 2012

*1

Jan. 2012–Mar. 2012

Total

¥

88,000[88,000]
97,400[97,400]
333,300[333,300]
19,498[19,498]
538,198

1,071,342[1,071,342]
1,185,780[1,185,780]
4,057,706[4,057,706]
237,376[237,376]$ 6,552,204

Interest rates

$

0.34%
0.08%–0.11%
0.10%–0.15%
0.13%–0.14%

Due

Apr. 2012–
Jun. 2012
Apr. 2012–
Jun. 2012
Apr. 2012–
Sep. 2012
Apr. 2012–
Jun. 2012*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, 2011 were as follows:
IssuerIssue

Millions of yen

MHCBJan. 2011–Mar. 2011

¥

MHSC
*1

Interest rates

114,900

0.09%–0.13%

Oct. 2010–Mar. 2011

454,100

0.10%–0.18%

Nov. 2010–Mar. 201116,497

0.14%–0.19%

Total

¥

585,497*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.

23—Financial Data of Mizuho Financial Group, Inc.

Due

Apr. 2011–
Jun. 2011
Apr. 2011–
Nov. 2011
Apr. 2011–
Nov. 201125. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2012 were as follows:
IssuerDescription

Issue

MHCB

Straight Bonds

Feb. 2004–
Mar. 2012

MHBK

Straight Bonds

MHTB

Straight Bonds*1

Straight Bonds

Feb. 2005–
Feb. 2012
Dec. 2005–
Aug. 2009
Mar. 2004*2

Straight Bonds*3

Straight Bonds*4

Straight Bonds

Total

Mar. 1998–
Jun. 2008
Jul. 1995–
Feb. 2009
Feb. 2000–
Mar. 2012

Millions of yen¥ 3,111,654[600,700](US$ 1,508,595 thousand)(EUR
5,000 thousand)738,200[3,400]88,500[—]123,210[—](US$ 1,500,000 thousand)
51,500[—]90,342[—](US$
20,000 thousand)579,773[95,794](US$ 114,838 thousand)(AUD
1,740 thousand)¥ 4,783,180

Thousands of U.S.
dollars

Interest
rates

Due

$ 37,882,326[7,313,124]

0.00%–
3.00%

Apr. 2012 –Oct. 2038

8,987,095[41,393]
1,077,429[—]
1,500,000[—]

1.13%–
4.26%
0.60%–
3.43%
5.79%

Apr. 2012 –

626,978[—]
1,099,864[—]

0.93%–
4.35%
0.83%–
3.90%

May 2018 –7,058,353[1,166,236]

0.00%–
14.00%

Dec. 2015 –Apr. 2014

May 2017 –Apr. 2012 –Jul. 2047$ 58,232,045*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, 2013 ¥ 699,894 million ($8,520,753 thousand)2014 ¥ 647,605 million ($7,884,171 thousand)2015 ¥ 799,172 million ($9,729,397 thousand)2016 ¥ 624,239 million ($7,599,696 thousand)2017 ¥ 640,268 million ($7,794,839 thousand)4. Bonds and Notes as of March 31, 2012 included subordinated bonds and notes of ¥1,436,608 million($17,489,750 thousand).
5. No collateral was provided for the above Bonds and Notes.

Financial Data of Mizuho Financial Group, Inc.—24

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2011 were as follows:
IssuerDescription

Issue

MHCB

Straight Bonds

Feb. 2004–
Mar. 2011

MHBK

Straight Bonds

MHTB

Straight Bonds*1

Straight Bonds*2

Straight Bonds*3

Straight Bonds*4

Straight Bonds

Nov. 2004–
Oct. 2009
Dec. 2005–
Aug. 2009
Mar. 2004
Feb. 1997–
Jun. 2008
Jul. 1995–
Feb. 2009
Feb. 2000–
Mar. 2011

Total

Millions of yen

(US$
(EUR

¥ 3,223,016
61,200 thousand)
5,000 thousand)
802,400
88,500124,725(US$1,500,000 thousand)
104,500
164,415(US$ 735,000 thousand)
603,391(US$ 91,542 thousand)(AUD
520 thousand)¥ 5,110,947

Interest
rates

Due

0.00%–
6.16%

Apr. 2011 –Oct. 2038

0.48%–
4.26%
0.67%–
3.43%
5.79%

Apr. 2011 –

0.95%–
4.35%
0.60%–
3.90%
0.00%–
25.00%

Jun. 2011 –Dec. 2015 –Apr. 2014 –Jun. 2011 –Apr. 2011 –Jul. 2047*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. 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, 2012 ¥ 721,290 million
2013 ¥ 696,563 million
2014 ¥ 643,344 million
2015 ¥ 790,050 million
2016 ¥ 624,096 million
3. Bonds and Notes as of March 31, 2011 included subordinated bonds and notes of ¥1,710,361 million.
4. No collateral was provided for the above Bonds and Notes.

26. Other Liabilities
Millions of yen
2012

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

¥

149,817
142,490
33,552
20,851
3,263,355¥ 3,610,067

2011

Thousands of U.S. dollars
2012

153,509146,205
16,003
23,793
2,713,623$ 1,823,926
1,734,730
408,481
253,850
39,729,184¥ 3,053,136$ 43,950,171¥*1 Average interest rate is 2.62% and 2.68% in the fiscal year ended March 31, 2012 and 2011. 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, 2013 ¥ 5,144 million($ 62,630 thousand)2014 ¥ 4,001 million($ 48,714 thousand)2015 ¥ 3,201 million($ 38,981 thousand)2016 ¥ 2,692 million($ 32,785 thousand)2017 ¥ 2,032 million($ 24,743 thousand)

25—Financial Data of Mizuho Financial Group, Inc.

27. Reserve for Employee Retirement Benefits(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin
Kikin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension
Plans. In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension
Plans while certain other domestic consolidated subsidiaries have established employee retirement benefit trusts.
(2) Reserve for Employee Retirement Benefits was reconciled as follows:
Millions of yen
2012

2011

Thousands of U.S. dollars
2012¥ 1,328,823(1,311,886)¥ 1,207,229(1,215,987)$ 16,177,542(15,971,344)

16,937(418,892)(401,955)
438,008( 8,757)(420,438)(429,196)
464,812206,198(5,099,737)(4,893,539)
5,332,460

As of March 31,

Projected Benefit Obligations
Plan Assets
Unfunded Projected Benefit
Obligations
Unrecognized Actuarial Differences
Net Amounts
Prepaid Pension Cost
Reserve for Employee
Retirement Benefits¥

36,053¥35,615$438,921

Notes: 1. The above Projected Benefit Obligations does not include additional retirement benefits paid to employees.
2. The above Projected Benefit Obligations includes 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
2012

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)¥¥

24,12529,962(27,545)¥2011

24,74629,829(39,570)

Thousands of U.S. dollars
2012$

293,710364,773(335,342)

74,38076,207905,529

17,606

7,782

214,342

98,994$ 1,443,012

118,529¥

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:
2012

Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periodsof Service
Prior Service Cost
Amortization of Unrecognized Actuarial Differences

2011

Mainly 1.7%
Mainly 0.75%-2.90%

Mainly 2.5%
Mainly 1.94%-4.44%

Straight-line basis

Straight-line basis

Charged to Income(Loss) in the year
Primarily 10-12 years

Charged to Income(Loss) in the year
Primarily 10-12 years

Financial Data of Mizuho Financial Group, Inc.—26

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

28. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
Millions of yen
2012

As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

2011

Thousands of U.S. dollars
2012¥

3,804,232
140,81335,599¥3,535,070
115,022
23,245$ 46,314,003
1,714,306
433,402¥3,980,644¥

3,673,339$ 48,461,711

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 ¥953,446 million ($11,607,581 thousand) and ¥1,032,321 million as of March 31, 2012 and 2011,
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 ¥741,934 million ($9,032,561 thousand) and ¥ – million ($ – thousand),
respectively, as of March 31, 2012, and ¥836,285 million and ¥383 million, respectively, as of March 31, 2011.

29. Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2012

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Other

¥

Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Prepaid Pension Cost
Net Unrealized Gains on Other
Securities
Other
Total
Net Deferred Tax Assets

157,029
637,642¥2011

359,086
642,752

Thousands of U.S. dollars
2012$

1,911,731
7,762,876

284,211358,6073,460,086

201,635
361,476

198,126
459,7362,454,780
4,400,734

1,641,995(955,253)

2,018,311(1,139,127)

19,990,207(11,629,579)¥

686,741¥

879,183$

8,360,628¥(150,202)¥(164,290)$(1,828,613)(67,855)(127,916)(78,858)(164,865)(826,096)(1,557,293)¥(345,973)¥(408,014)$(4,212,002)¥

340,768¥

471,169$

4,148,626

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 ¥1,319,015 million ($16,058,141 thousand) and ¥1,431,267 million
as of March 31, 2012 and 2011, 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.

27—Financial Data of Mizuho Financial Group, Inc.

For the fiscal years ended March 31, 2012 and 2011, the reconciliation of the statutory tax rate of MHFG to the effective
income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Adjustment to reduce the amount of deferred
tax assets at the end of period due tochanges in tax rates
Other
Effective Income Tax Rate

2012

2011

40.69%

40.69%(14.56)(15.69)(2.54)(2.72)(9.42)(4.18)

4.84
2.33

—
3.71

21.33%

21.79%

Adjustments of the amounts of deferred tax assets and deferred tax liabilities due to changes in tax rates of corporate
income tax and others:“Act on Partial Amendment to the Income Tax Act, etc. in order to Create a Tax System Responding to Structural
Changes of Economy and Society” (Act No. 114, 2011) and “Act on Special Measures Concerning Securing Financial
Resources Necessary for the Implementation of Measures to recover from the Great East Japan Earthquake” (Act No. 117,2011) were promulgated on December 2, 2011, and accordingly, the corporate income tax rate has been lowered and thespecial corporation tax for restoration has been imposed from the consolidated fiscal year beginning on or after April 1,
2012.
Due to these changes, the effective statutory tax rate used by MHFG for the calculation of deferred tax assets anddeferred tax liabilities has been revised from the previous rate of 40.69%. The rate of 38.01% has been applied to thetemporary differences, expected to be either deductible, taxable or expired from the fiscal year beginning on April 1, 2012
through the fiscal year beginning on April 1, 2014, while the rate of 35.64% has been applied to the temporary differences,
expected to be either deductible, taxable or expired on or after the fiscal year beginning April 1, 2015. In addition, due tothe revision of the carry-forward system of the net operating losses, the amount of net operating losses that can be
deducted has been limited to the equivalent of 80% of taxable income before such deductions from the consolidated fiscal
year beginning on April 1, 2012.
As a result of the changes in tax rates and the carry-forward system of the losses, Deferred Tax Assets decreased by¥22,705 million ($276,422 thousand), Net Unrealized Gains on Other Securities increased by ¥6,960 million ($84,734
thousand), Deferred Gains or Losses on Hedges increased by ¥5,020 million ($61,124 thousand), and Deferred Income
Taxes increased by ¥34,686 million ($422,280 thousand). Deferred Tax Liabilities for Revaluation Reserve for Landdecreased by ¥11,821 million ($143,920 thousand) and Revaluation Reserve for Land increased by the same amount.

Financial Data of Mizuho Financial Group, Inc.—28

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

30. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥165,480 million ($2,014,612 thousand) and ¥160,512 million and as ofMarch 31, 2012 and 2011, respectively.

31. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2012 and 2011 were as follows:
Number of shares

As of March 31, 2012
Class of stock

Common Stock
Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,048,165,727

Per share (Yen)Interimcash
dividend

Year-end
cash Liquidation
value
dividend

¥

¥

3

3

¥

Convertible
or notWith
Redemption
or not—NoNo1,369,512,000

914,752,000

10

10

1,000

Yes

No

1,500,000,000

36,690,000

15

15

1,000

No

Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
39,474 thousand shares
Eleventh Series Class XI Preferred Stock
541,073 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, 2011
Class of stock

Authorized

Issued andoutstanding

Common Stock
24,115,759,000 21,782,185,320
Eleventh Series Class XI
1,369,512,000
914,752,000
Preferred StockThirteenth Series Class XIII
1,500,000,000
36,690,000
Preferred Stock

Per share (Yen)Interimcash
dividend¥

Convertible
or notWith
Redemption
or not—No

No

Year-end
cash Liquidation
value
dividend

— ¥

6 ¥

—

20

1,000

Yes

No

—

30

1,000

No

Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
5,656 thousand shares
Eleventh Series Class XI Preferred Stock497,866 thousand shares
2.The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000,000.
3.The common stock shareholders approved an amendment to the Articles of Incorporation accompanied by anincrease in authorized shares of common stock and the total number of authorized shares at the 9th Ordinary
General Meeting of Shareholders of MHFG held on June 21, 2011, and the preferred stock shareholders resolved
the amendment at the general meeting held on June 29, 2011.
As a result of the amendment, the total number of authorized shares of the common stock increased from24,115,759,000 shares to 48,000,000,000 shares, effective on June 29, 2011,

29—Financial Data of Mizuho Financial Group, Inc.

32. Stock Options(1) Total amount of stock options expensed were as follows:
For the Fiscal Years ended March 31,

Millions of yen
2012

General and administrative expenses
Total

2011

Thousands of U.S. dollars
2012

¥ 788

¥ 1,367$ 9,603¥ 788¥ 1,367$ 9,603(2) Outline of stock options and changes
For the fiscal year ended March 31, 2012(i) Outline of stock options
As of March 31,
2012

First Series of Stock
Acquisition Rights of
MHFG

Second Series of Stock
Acquisition Rights of
MHFG

Third Series of Stock
Acquisition Rights of
MHFG

Fourth Series of Stock
Acquisition Rights of
MHFG

4 Directors
4 Directors
4 Directors
6
Directors
Executive
Executive
Executive
Executive
64
44
Officers
Officers
Officers
Officers
Directors of
Directors of
Directors of
Directors of
14 subsidiaries
14 subsidiaries
12 subsidiaries
26
subsidiaries
of MHFGof MHFGof MHFGof MHFG
Executive
Executive
Executive
Executive
Officers of
Officers of
Officers of
Officers of
71
71
71
130
subsidiaries
subsidiaries
subsidiaries
subsidiaries
of MHFGof MHFGof MHFGof MHFG
Number of stock Common
CommonCommonCommon5,409,000
5,835,000
6,808,000
12,452,000
*1
stock
stock
stock
stock
options
Grant dateFebruary 16, 2009
September 25, 2009
August 26, 2010
December 8, 2011
Condition for
The grantee may exercise the Stock Acquisition Rights which have been
The grantee may
vesting
allotted based on his or her capacity as a Director or an Executive Officer of exercise the StockMHFG, MHBK or MHCB immediately following the date on which such
Acquisition Rights
grantee loses the status as a Director or an Executive Officer of MHFG,
which have been
MHBK or MHCB.
allotted based on his or
her capacity as a
Director or an
Executive Officer of
MHFG, MHBK, MHCB,MHTB or MHSC
immediately following
the date on which suchgrantee loses thestatus as a Director oran Executive Officer of
MHFG, MHBK, MHCB,MHTB or MHSC.
Required service July 1, 2008
April 1, 2009
April 1, 2010
April 1, 2011
periodto March 31, 2009
to March 31, 2010
to March 31, 2011
to March 31, 2012
Exercise period February 17, 2009
September 28, 2009
August 27, 2010
December 9, 2011
to February 16, 2029
to September 25, 2029 to August 26, 2030
to December 8, 2031
Number of
grantees*1: Shown in number of shares

Financial Data of Mizuho Financial Group, Inc.—30

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2012

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

1,748,000－－
797,000
951,000

3,678,000－－
1,738,000
1,940,000

6,646,000－－
2,812,000
3,834,000－
12,452,000
4,000
216,000
12,232,000

40,000797,000
797,000－
40,00064,0001,738,000
1,673,000－
129,000

162,000
2,812,000
2,782,000－
192,000－
216,000
43,000－173,000

Non-vested
As of March 31, 2011
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2011
VestedExercised
Forfeited
Outstanding

Fourth Series ofStock Acquisition
Rights of MHFG

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2012

Exercise price
Average stock priceupon exercise
Fair value at grant
dateFirst Series of Stock
Acquisition Rights of
MHFG

Second Series of Stock
Acquisition Rights of
MHFG

Third Series of Stock
Acquisition Rights of
MHFG

Fourth Series of Stock
Acquisition Rights of
MHFG¥

1 per share¥

1 per share¥

1 per share¥

1 per share¥

132.46¥132.56¥132.37¥140.00¥ 190.91 per share¥ 168.69 per share¥ 119.52 per share¥ 91.84 per share(iii) Calculation for fair value of stock options
The fair value of Fourth Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2012
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2012

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Fourth Series of Stock Acquisition Rights of MHFG

34.038 %2.34 years¥ 6 per share
0.147%*1: Historical volatility calculated from MHFG stock prices over the 122 weeks ending on the business day (December 7, 2011) prior to the
grant date, an interval equivalent to the estimated remaining outstanding period of 2.34 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2012.
*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.

31—Financial Data of Mizuho Financial Group, Inc.

For the fiscal year ended March 31, 2011
Mizuho Financial Group, Inc.
(i)

Outline of stock options
As of March 31,
2011

Number of
grantees

Number of stock*1
options
Grant dateCondition forvestingFirst Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors

4 Directors

4 Directors

4

Executive Officers
Directors ofsubsidiaries of
MHFG
Executive Officersof subsidiaries of
MHFG

4 Executive Officers
Directors of
14 subsidiaries of
MHFG
Executive Officers of
71 subsidiaries of
MHFG

4 Executive Officers
Directors of
14 subsidiaries of
MHFG
Executive Officers
71 of subsidiaries of
MHFG

4Common stock

5,409,000 Common stock

5,835,000 Common stock

1271
6,808,000

August 26, 2010
February 16, 2009
September 25, 2009
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 thedate on which such grantee loses the status as a Director or an Executive Officer of MHFG, MHBKor MHCB.

Required service
July 1, 2008 to March 31, 2009 April 1, 2009 to March 31, 2010
periodExercise period
February 17, 2009
September 28, 2009
to February 16, 2029
to September 25, 2029

April 1, 2010 to March 31, 2011
August 27, 2010
to August 26, 2030

*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, 2011Non-vested
As of March 31, 2010
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2010
VestedExercised
Forfeited
Outstanding

First Series of Stock
Acquisition Rights of
MHFG

Second Series of Stock
Acquisition Rights of
MHFG

Third Series of Stock
Acquisition Rights of
MHFG

3,455,000－－
1,707,000
1,748,000

5,835,000－－
2,157,000
3,678,000－
6,808,000－
162,000
6,646,000－
1,707,000
1,667,000－
40,000－2,157,000
2,093,000－
64,000－162,000－－
162,000

Note: The above table is shown in number of shares.

Financial Data of Mizuho Financial Group, Inc.—32

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Price information
First Series of Stock
Acquisition Rights of MHFG

As of March 31, 2011

Exercise price
Average stock priceupon exercise
Fair value at grant date

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG¥

1 per share¥

1 per share¥

161.94¥165.96－¥ 168.69 per share¥ 119.52 per share¥ 190.91 per share¥

1 per share(iii) Calculation for fair value of stock options
The fair value of Third Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2011
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2011

Third Series of Stock Acquisition Rights of MHFG

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3

59.549 %2.00 years¥ 6 per share

Risk-free interest rate*40.129%*1: Historical volatility calculated from MHFG stock prices over the 104 weeks ending on the business day (August 25, 2010) prior to the grantdate, an interval equivalent to the estimated remaining outstanding period of 2.00 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, 2011.
*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, 2011

Number of grantees
Number of stock*1
options
Grant dateCondition for vesting
Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHTB

Directors
Executive
Officers
Common stock

7
20
1,695,000

Second Series of Stock
Acquisition Rights of MHTB

Directors
Executive
Officers
Common stock7
18
1,744,000

Third Series of Stock
Acquisition Rights of MHTB

Directors
Executive
Officers
Common stock7
19
2,586,000

February 16, 2009
July 10, 2009
July 8, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on
his or her capacity as a Director or an Executive Officer of MHTB immediately following thedate on which such grantee loses the status as a Director or an Executive Officer of MHTB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
July 11, 2009
July 9, 2010
to February 16, 2029
to July 10, 2029
to July 8, 2030

*1: Shown in number of shares

33—Financial Data of Mizuho Financial Group, Inc.

(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year
ended March 31, 2011

First Series of Stock
Acquisition Rights of MHTB

Second Series of Stock
Acquisition Rights of MHTB

Third Series of Stock
Acquisition Rights of MHTB

1,080,000－－
390,000
690,000

1,744,000－－
456,000
1,288,000－
2,586,000－－
2,586,000－
390,000
390,000－－－
456,000
456,000
－
－

－
－
－
－
－

Second Series of Stock
Acquisition Rights of MHTB

Third Series of Stock
Acquisition Rights of MHTB

Non-vested
As of March 31, 2010
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2010
VestedExercised
Forfeited
Outstanding

Note: The above table is shown in number of shares.
(b) Price information
First Series of Stock
Acquisition Rights of MHTB

As of March 31, 2011

Exercise price
Average stock price upon
exercise
Fair value at grant date¥1 per share¥

1 per share

¥

83.53

¥

83.26

－

¥ 110.00 per share¥ 70.03 per share¥ 91.49 per share¥

1 per share(iii) Calculation for fair value of stock options
The fair value of Third Series of Stock Acquisition Rights of MHTB granted in the fiscal year ended March 31, 2011
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2011

Third Series of Stock Acquisition Rights of MHTB

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3

47.665 %2.00 years¥ 1 per share*4

Risk-free interest rate

0.151%*1: Historical volatility calculated from MHTB stock prices over the 104 weeks ending on the business day (July 7, 2010) prior to the grant date,
an interval equivalent to the estimated remaining outstanding period of 2.00 years.
*2: The average period of service of directors at MHTB.
*3: The expected dividend on common stock on the business day (July 7, 2010) prior to the grant date for the fiscal year ended March 31, 2011.
*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.

Financial Data of Mizuho Financial Group, Inc.—34

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Mizuho Securities Co., Ltd.
(i)

Outline of stock options
Second Series of Stock
Acquisition Rights of MHSC

As of March 31, 2011

Number of grantees
Number of stock options*1
Grant dateCondition for vesting

Required service period
Exercise period

Third Series of Stock
Acquisition Rights of MHSC

Directors
8 Directors
9
Executive Officers
60 Executive Officers
41
1,217,000 Common stock
1,972,000
Common stock
August 18, 2009
July 9, 2010
The grantee may exercise the Stock Acquisition Rights which have been allottedbased on his or her capacity as a Director or an Executive Officer of MHSC
immediately following the date on which such grantee loses the status as a Director oran 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 the date on which said grantee finally and definitely loses the status as a
Director or an Executive Officer of MHSC.
July 1, 2009 to March 31, 2010
April 1, 2010 to March 31, 2011
August 19, 2009 to August 18, 2029
July 10, 2010 to July 9, 2030

*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, 2011

Second Series of Stock
Acquisition Rights of MHSC

Non-vested
As of March 31, 2010
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2010
VestedExercised
Forfeited
Outstanding

Third Series of Stock
Acquisition Rights of MHSC

1,165,000－－
444,000
721,000－
1,972,000
14,00058,0001,900,000

34,000444,000
478,000－－－
58,00058,000－－Note: The above table is shown in number of shares.
(b) Price information
As of March 31, 2011

Exercise price
Average stock price upon exercise
Fair value at grant date

35—Financial Data of Mizuho Financial Group, Inc.

Second Series of Stock
Acquisition Rights of MHSC¥
1 per share¥
252.77¥ 306.21 per share

Third Series of Stock
Acquisition Rights of MHSC¥
1 per share¥
233.86¥ 190.28 per share

(iii) Calculation for fair value of stock options
The fair value of Third Series of Stock Acquisition Rights of MHSC granted in the fiscal year ended March 31, 2011
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2011

Third Series of Stock Acquisition Rights of MHSC

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3

50.47 %
3.27 years¥ 5 per share

Risk-free interest rate*40.178%*1: Historical volatility calculated from MHSC stock prices over the 171 weeks ending on the business day (July 8, 2010) prior to the grant date,
an interval equivalent to the estimated remaining outstanding period of 3.27 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.

33. Interest Income and Interest Expenses
Millions of yen
2012

2011

Thousands of U.S. dollars
2012

900,011356,583
5,062
10,940$ 10,816,774
4,242,193
80,108
251,591

30,86038,975375,705

9,922
118,591

9,479
136,633

120,801
1,443,777¥ 1,423,564¥ 1,457,687$ 17,330,949

¥

¥

$

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¥

888,489
348,453
6,580
20,665

129,857
384
8,628

¥

133,111
6,533
8,572

1,580,930
4,686
105,051

33,91247,800412,864

14,407874
35,046112,111

14,089121
30,616
107,396

175,398
10,641
426,671
1,364,880

Total

¥

Net

¥ 1,088,340

335,223¥

348,242¥ 1,109,444$

4,081,121$ 13,249,828

Financial Data of Mizuho Financial Group, Inc.—36

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

34. Trading Income and Trading Expenses
Millions of yen
2012

2011

Thousands of U.S. dollars
2012

99,879¥ 107,595$ 1,215,966

50,438136,388

614,055¥ 150,317¥ 243,983$ 1,830,021

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total

¥

Trading Expenses:
Net Losses on Trading Securities

—

Total

¥

—

Net

¥ 150,317

—
¥

—

—
$

—

¥ 243,983$ 1,830,021

2011

Thousands of U.S. dollars
2012

35. Other Operating Income
Millions of yen
2012

For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Gains on Derivatives other than for
Trading or Hedging
Other
Total

¥

79,915
221,307¥

24,929235,533$

972,917
2,694,272

2,811
51,710—46,812

34,234
629,545¥ 355,745¥ 307,276$ 4,330,968

2011

Thousands of U.S. dollars
2012

84,268$

36. Other Operating Expenses
Millions of yen
2012

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other thanfor Trading or Hedging
Losses on Devaluation of Bonds
Other
Total

37—Financial Data of Mizuho Financial Group, Inc.

¥¥

55,603¥676,941—
9,790
33,882

9,378
6,584
43,365—
119,197
412,498

99,277¥ 143,596$ 1,208,636

37. Other Income
For the Fiscal Year ended March 31, 2012

Gains on Sales of Stock
Recovery on Written-off Loans
Reversal of Reserves for Possible Losses on Loans
Gains on Negative Goodwill Incurred
Other
Total
For the Fiscal Year ended March 31, 2011

Gains on Sales of Stock
Recovery on Written-off Loans
Reversal of Reserves for Possible Losses on Loans
Gains on Disposition of Fixed Assets
Other
Total

Millions of yen¥

54,98939,38435,32991,18042,140¥ 263,024

Thousands of U.S. dollars$

669,465
479,479
430,117
1,110,063
513,029$ 3,202,153

Millions of yen¥

54,71236,49520,32596
44,583¥ 156,212

38. Other Expenses
For the Fiscal Year ended March 31, 2012

Impairment Losses of Stocks
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Sales of Stocks
Special Retirement Payment in the Securities Subsidiary
Losses on Impairment of Fixed Assets
Other
Total
For the Fiscal Year ended March 31, 2011

Impairment Losses of Stocks
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Sales of Stocks
Losses on the Adoption of Accounting Standard for Asset
Retirement Obligations
Extraordinary Depreciation of the Shortening of Depreciation
Period of the Software
Other
Total

Millions of yen¥

49,31538,566
6,849
39,35010,005
7,067
114,646¥ 265,803

Thousands of U.S. dollars$

600,387
469,526
83,391
479,072
121,81086,0401,395,751$ 3,235,977

Millions of yen¥

94,42071,6594,917
29,006
3,091
1,761

63,404¥ 268,261

Financial Data of Mizuho Financial Group, Inc.—38

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
For the Fiscal Year ended March 31, 2012

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Share of Other Comprehensive Income of Associates Accounted for
Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive Income

39—Financial Data of Mizuho Financial Group, Inc.

Millions of yen

Thousands of U.S. dollars¥ 239,911¥ (149,733)¥ 90,178¥ (38,264)¥ 51,913

$
$
$
$
$

2,920,767(1,822,906)
1,097,861(465,845)
632,016¥ 44,119¥ (55,749)¥ (11,630)¥ 10,070¥ (1,560)

$
$
$
$
$

537,121(678,716)(141,595)
122,596(18,999)

$
$

—
—
—
143,920
143,920

¥
¥
¥
¥
¥

—
—
—
11,821
11,821$$$¥(2,123)
1,016(1,106)—(1,106)$(25,854)
12,380(13,474)—(13,474)

¥
¥

2,894
63,962$$35,239778,70240. Changes in Net Assets
For the fiscal year ended March 31, 2012(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
April 1, 2011

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2012

Remarks

21,782,185

2,265,980—

24,048,165*1

914,752——

914,752

36,690——36,69022,733,627

2,265,980—

24,999,607

5,656

133,814

102,424

37,046*2

497,866

43,207—541,073*3

503,522

177,022

102,424

578,120*1 Increases are due to request for acquisition (conversion) of preferred stock (151,921 thousand shares), exercise of stock acquisition rights (stock option)(4,748 thousand shares), and increase in stock due to share exchange (2,109,310 thousand shares).
*2 Increases are due to repurchase of shares associated with share exchange (22,027 thousand shares), repurchase of shares constituting less than one
unit (42 thousand shares), acquisition of shares by subsidiaries and others due to share exchange (111,744 thousand shares). Decreases are due toexercise of stock acquisition rights (stock option) (547 thousand shares), repurchase of shares constituting less than one unit (23 thousand shares) anddisposition of shares acquired by subsidiaries and others due to share exchange (101,853 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

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2011

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2012

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,2012(Millionsof yen)Balance asof March
31, 2012(Thousandsof
U.S.dollars)

Remarks

MHFG

Total

－

¥

－
(－)

$

－
(－)

－

2,158

26,280

－

－
(－)

－
(－)

－

¥ 2,158(－)$ 26,280(－)

Financial Data of Mizuho Financial Group, Inc.—40

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2012

Resolution

Types

June 21,2011

Common Stock(

Eleventh Series Class XI
Preferred StockThirteenth Series ClassXIII Preferred Stock

Ordinary
GeneralMeeting of
Shareholders)

Cash
Dividends(Millions of
yen)

Cash
Dividends(Thousand of
U.S. dollars)¥ 130,659 $ 1,590,689

¥6

8,337

101,50620

1,100

13,40030

November 14,
Common Stock¥ 72,025 $ 876,859
2011
Eleventh Series Class XI
3,834
46,685Preferred Stock
The Board of
Directors
Thirteenth Series Class
550
6,700
XIII Preferred Stock¥ 216,507 $ 2,635,839
Total

(

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)

)

¥3
10
15
/

$ 0.07

RecordDate

Effective
Date

March 31,2011

March 31,
June 21,2011
2011
March 31,0.37
2011
September 30,$ 0.042011
September 30, December 7,
0.12
2011
2011
September 30,
0.18
2011
/
0.24

Cash dividends with record dates falling in the fiscal year ended March 31, 2012 and effective dates coming after the endof the fiscal year

Resolution

Types

Cash
Dividends(Millions ofyen)June 26
2012

Common Stock¥(

Eleventh Series Class XI
Preferred StockThirteenth Series ClassXIII Preferred Stock

Ordinary
GeneralMeeting of
Shareholders

)

Total

41—Financial Data of Mizuho Financial Group, Inc.

72,063
3,736
550

¥

76,350Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share(Yen) (U.S. dollars)
Dividends$ 877,320

Retained
Earnings

Retained
Earnings
Retained
6,700
Earnings$ 929,513
45,493¥3
10
15/

Record Effective
Date
Date

$ 0.04 March 31,
2012
March 31, June 26,
2012
2012
March 31,
0.18
2012
/

0.12

For the fiscal year ended March 31, 2011(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
April 1, 2010

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2011

Remarks

15,494,397

6,287,787—

21,782,185*1914,752——

914,752

36,690——36,69016,445,839

6,287,787—

22,733,627

9,397

21

3,761

5,656

*2

415,471

82,395—497,866*3

424,868

82,416

3,761

503,522*1 Increases are due to request for acquisition (conversion) of preferred stock (287,787 thousand shares), capital increase by public offering (5,609,000
thousand shares), and capital increase by way of third-party allotment (391,000 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)(3,760 thousand shares) and sale of shares constituting less than one unit (1 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

Breakdown ofStockacquisitionrightsStock acquisitionrights (Treasury
stock acquisitionrights)Stock acquisitionrights as stock
optionConsolidated subsidiaries(Treasury stock acquisitionrights)Class of shares
Number of shares to be issued or transferred upon
to be issued or
exercise of stock acquisition rights (Shares)
transferred
upon exerciseof stock
Increase
Decrease
As of
As of
acquisition
during the
March 31,
April 1, 2010 during therightsfiscal year
fiscal year
2011

MHFG

Total

－

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31, 2011
(Millions of yen)¥

Remarks

－
(－)

－

1,786

－

968
(－)

－

¥ 2,754(－)

Financial Data of Mizuho Financial Group, Inc.—42

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2011
Resolution

Types

Cash Dividends(Millions of yen)

June 22,2010

Common Stock¥(

Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Ordinary
General Meetingof Shareholders

)

¥

Total

Cash Dividends
per Share(Yen)

123,880

¥8

9,985

20

1,100

30

134,966/

RecordDate

Effective
Date

March 31,2010
March 31,2010
March 31,2010

June 22,2010

Cash dividends with record dates falling in the fiscal year ended March 31, 2011 and effective dates coming after the endof the fiscal year
Resolution

Types

June 21,2011

Common Stock(

Ordinary
GeneralMeeting of
Shareholders)

Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Total

Cash Dividends(Millions of yen)

¥ 130,659
8,337
1,100

Resource ofDividends

Cash Dividends
per Share(Yen)

Retained
Earnings
Retained
Earnings
Retained
Earnings¥ 140,097

¥6
20
30

RecordDate

Effective
Date

March 31,2011
March 31,2011
March 31,2011

June 21,2011/

41. Cash Flows(1) Cash and Cash Equivalents on the consolidated statements of cash flows reconciles to Cash and Due from Banks on
the consolidated balance sheets as follows:

As of March 31,

Millions of yen
2012

2011

Thousands of U.S. dollars
2012¥ 9,950,913$ 88,610,640

Cash and Due from Banks
Less: Due from Banks excluding
due from Central Banks¥ 7,278,477(795,339)(768,452)(9,682,729)

Cash and Cash Equivalents¥ 6,483,138¥ 9,182,461$ 78,927,911(2) Significant non-fund transaction:
Transaction as a result of turning Mizuho Trust & Banking Co., Ltd., Mizuho Securities Co., Ltd., and Mizuho Investors
Securities Co., Ltd. into wholly-owned subsidiaries by means of the share exchange.
For the Fiscal Year ended March 31, 2012

Increase in Common Stock
Increase in Capital Surplus
Increase in Treasury Stock
Amount of additionally acquired shares of thesubsidiaries

43—Financial Data of Mizuho Financial Group, Inc.

Millions of yen

Thousands of U.S. dollars¥ 73,247
171,575
13,318$ 891,737
2,088,813
162,140

231,504

2,818,410

42. 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 (8) 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
2012

As of March 31,

Due in One Year or Less
Due after One Year
Total

2011

Thousands of U.S. dollars
2012¥

42,086
79,610¥35,37390,028$512,379
969,206¥

121,697¥

125,401$ 1,481,585

2011

Thousands of U.S. dollars
2012

Lessors:
Millions of yen
2012

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

915
4,520

¥

1,543
6,160

$

11,14255,038

¥

5,435

¥

7,703

$

66,180Financial Data of Mizuho Financial Group, Inc.—44

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

43. Financial Instruments
1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments
Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans, stocks
and bonds on the investment side, and also engages in trading business for certain financial products. Some majorityowned consolidated subsidiaries and other subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products
The main financial assets of the Mizuho group consist of loans to customers and securities such as Japanese stocks andgovernment bonds. The Group holds these securities for the purpose of reserves for deposit payments 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 loss of, 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 Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho group uses derivative financial products for trading purposes and so on as well.
Progress in financial deregulation and internationalization has led to growth in the diversity and complexity of financial
assets and liabilities of the Mizuho group, exposing the Group to various risks, including credit risk, liquidity risk andother risks.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our board of directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.

45—Financial Data of Mizuho Financial Group, Inc.

More specifically, we allocate risk capital to our principal banking subsidiaries and other core group companies tocontrol risk within the limits set for each company. We also control risk within managerially acceptable limits byworking to ensure that the overall risk we hold on a consolidated basis does not exceed shareholders’ equity andother measures of financial strength. To ensure the ongoing financial health of Mizuho Financial Group, our principal
banking subsidiaries and other core group companies, we regularly monitor the manner in which risk capital is being
used in order to obtain a proper grasp of the risk profile within this framework. Reports are also submitted to theboard 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 thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
Our board of directors determines the Mizuho group’s key matters pertaining to credit risk management while theirChief Executive Officers are responsible for controlling credit risk. In addition, we have established the Portfolio
Management Committee as one of its business policy committees. This committee of Mizuho Financial Groupdiscusses and coordinates basic policy in connection with credit risk management and matters in connection withoverall credit portfolio management and credit risk monitoring for the Mizuho group. Under the control of the Chief
Risk Officer of Mizuho Financial Group, the Risk Management Division and the Credit Risk Management Division
jointly monitor, analyze and submit suggestions concerning credit risk and formulate and execute plans inconnection 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 oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing 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 Mizuho Financial Group. Their respective
business policy committees are responsible for discussing and coordinating overall management of their individual
credit portfolios and transaction policies towards obligors.
The chief risk officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. The credit risk management division of each principal
banking subsidiary is responsible for planning and administering credit risk management and conducting credit risk
measuring and monitoring. Each credit division determines policies and approves/disapproves individualtransactions regarding review and management of and collection from customers in accordance with the lines ofauthority set forth by each principal banking subsidiary. In addition, from the standpoint of internal controls, each of
our principal banking subsidiaries has also established internal audit divisions that are independent of the businessdivisions in order to ensure appropriate credit risk management.
(d) Market Risk Management
The board of directors of Mizuho Financial Group determines key matters pertaining to market risk management
policies. In addition, we have established 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 assudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Division of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the division assesses and manages the overall market risk of theMizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries and other

Financial Data of Mizuho Financial Group, Inc.—46

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

core group companies. The division also submits reports to the Chief Executive Officer on a daily basis and to ourboard of directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.
For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
Our principal banking subsidiaries and certain other core group companies have formulated their basic policies inline with the basic policies determined by Mizuho Financial Group. Their boards of directors determine importantmatters relating to market risk management while their Chief Executive Officers are responsible for controllingmarket risk. Based on a common Mizuho Group risk capital allocation framework, the above-mentioned companies
manage market risk by setting limits according to the risk capital allocated to market risk by Mizuho Financial Group.
Our principal banking subsidiaries and certain other core group companies have the same market risk
management structure as the Mizuho Financial Group, such as their business policy committees being responsible
for overall discussion and coordination of the market risk management, including their ALM & market risk
management committees.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Overview of Banking Activities
The following table shows the VAR figures relating to our banking activities for the fiscal year indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2012

¥

263.7
282.5
210.3
249.4

2011

¥

211.3
227.6
137.8
188.6

2012

$

3,210,744
3,440,439
2,560,664
3,036,926[Definition of Banking business]
The following transactions are categorized as banking business, with trading business and strategically-heldequity being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding strategically-held equity), bonds, investment trusts, etc. and hedges against related
market risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR : the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of one year.

47—Financial Data of Mizuho Financial Group, Inc.

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal year indicated :Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2012

¥

3.0
4.8
2.8
3.8

2011

¥

3.6
3.8
2.2
2.9

2012

$

36,621
59,48934,50447,313[Definition of trading activities](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR: the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of 1 trading day; and• historical observation period of one year.
iii. Strategic Equity Holding
We make the same market risk management based on VAR and risk indices for strategic equity holding portfolio
as banking business and trading business.
The risk index of the strategic equity holding portfolio (sensitivity of the portfolio to a 1% change in TOPIX index)
is set as ¥24.0 billion ($292,702 thousand) and ¥25.7 billion for the fiscal year ended March 31, 2012 and 2011,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level does not take account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The variance co-variance model used as the measurement technique of VAR assumes that change in a market
movement follows a normal distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. The model might also
underestimate the risk when the normal correlation assumption between interest rate and share price collapses
under the circumstances when a rise in the interest rate and a deterioration of share price happen simultaneously.
We check the validity of the market risk measurement made by VAR approach periodically by the back-test
which compares VAR with actual profit and loss. In addition to VAR, we make a wide variety of management andcontrols such as risk indices monitoring, implementation of stress tests, loss limit monitoring in order to make strictrisk management by capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Division is responsible for monitoring and adjusting the cash
Financial Data of Mizuho Financial Group, Inc.—48

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

flow management situation and for planning and implementing cash flow management. Reports on the cash flow
situation are submitted to the 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 establishedclassifications 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 affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others
Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

49—Financial Data of Mizuho Financial Group, Inc.

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,
2012 and 2011. 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

As of March 31, 2012

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted*1
Reserves for Possible Losses on Loans¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) 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
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Reserves for Derivative Transactions *1
Total Derivative Transactions¥¥

7,277,642
248,733
7,123,397

Fair Value¥

7,277,642
248,733
7,123,397

Difference

¥

—
—
—

6,406,409
1,540,618

6,406,409
1,538,532—(2,086)

9,821,312
71,414

9,821,312
71,414——

1,801,614
48,834,754
63,800,509(600,616)
63,199,892
146,325,791
78,811,909
11,824,746—
5,668,929
12,455,152

1,816,139
48,834,754

14,525—¥¥63,446,573
146,584,911
78,755,639
11,824,450—
5,668,929
12,455,152¥¥

246,680
259,119(56,270)
(296)
—
—
—

7,710,373

7,710,373—¥

4,406,811
14,763,870
4,783,180
140,424,973¥

4,406,811
14,777,629
4,862,583
140,461,568¥—
13,75879,40336,595¥

511,326¥[249](39,934)
471,142¥

471,142¥—*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, and the item that is net debts in total is presented in brackets.

Financial Data of Mizuho Financial Group, Inc.—50

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
Consolidated Balance
Sheet Amount

As of March 31, 2011

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) 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
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

9,950,144
375,255
7,467,309

Fair Value¥

9,950,144
375,255
7,467,309

Difference

¥

—
—
—

6,541,512
1,667,151

6,541,512
1,665,020—(2,130)9,497,860
122,233

9,497,860
122,233——

1,202,123
42,932,743
62,777,757(654,284)
62,123,472
141,879,804
79,233,922
9,650,236
740,932
5,095,412
11,656,119

1,208,220
42,932,743

6,097
—

¥
¥

62,463,480
142,223,779
79,184,769
9,649,914
735,366
5,095,412
11,656,119¥¥

340,007343,974(49,153)(322)(5,566)——

5,488,585

5,488,585—¥

4,249,792
15,969,385
5,110,947
137,195,334¥

4,249,792
15,987,515
5,204,422
137,251,897¥—
18,13093,47456,563¥

737,937¥

238,832(46,203)
930,567¥

930,567¥—*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.

51—Financial Data of Mizuho Financial Group, Inc.

Thousands of U.S. dollars
Consolidated Balance
Sheet Amount

As of March 31, 2012$
(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) 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
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions

Fair Value

Difference

88,600,473 $3,028,163
86,722,644

88,600,473
3,028,163
86,722,644

77,993,786
18,756,012

77,993,786
18,730,611—(25,401)

119,567,965
869,422

119,567,965
869,422——

21,933,465
594,530,738
776,728,868(7,312,107)
769,416,761
1,781,419,429 $
959,482,711 $
143,958,445—
69,015,453
151,633,213

22,110,297
594,530,738

176,832—

772,419,938
1,784,574,037
958,797,654
143,954,838—
69,015,453
151,633,213

93,868,679

93,868,679—$

53,650,008
179,740,326
58,232,045
1,709,580,880 $

53,650,008
179,907,830
59,198,725
1,710,026,400$—
167,504
966,680
445,520$

6,225,061$[3,037](486,178)
5,735,846 $

5,735,846

$

—

$
$

$

$
$

—
—
—

3,003,177
3,154,608(685,057)(3,607)———*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, and the item that is net debts in total is presented in brackets.

Financial Data of Mizuho Financial Group, Inc.—52

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since contractual terms of these items are short(i.e., within six months) and fair values of these items approximate book values, we deem the book values to be fairvalues.
(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 bookvalues, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6)Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7)Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, stocks are based on the prices on stock exchanges, and bonds are based on themarket prices and others. For other Money Held in Trust, since fair values of these items approximate book values, wedeem the book values to be fair values.
The notes to Money Held in Trust based on holding purpose are stated in “44.Fair Value of Securities and Money
Held in Trust.”(8)Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value. 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 andvarious 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 fair value, are based on the reasonably calculated prices as book value. In deriving the reasonably
calculated prices, we used the discounted 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 and other offices of domestic majority-owned consolidated banking subsidiaries, given the current
situation in which the volume of actual transactions is extremely limited and there exists a considerable gap between theoffers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors
cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimatesof our management as fair value. In deriving reasonably calculated prices based on the reasonable estimates of ourmanagement 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 mortgagebacked securities, collateralized loan obligations, commercial mortgage-backed securities, and other asset backed
securities.
The notes to Securities based on holding purpose are stated in “44.Fair Value of Securities and Money Held in Trust.”

53—Financial Data of Mizuho Financial Group, Inc.

(9)Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the consolidated balance sheet amount as of the consolidatedbalance 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 of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1)Deposits
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits 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 them based on their terms and by discounting the future cash flows for those which do not have market
prices. The discount rates used in such calculations 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 approximatebook values, we deem the 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 Money classified 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, its majority-owned consolidated subsidiaries and other consolidated
subsidiaries are based on the market prices for Bonds and Notes which have market prices, and calculated bydiscounting the total amount of principal and interest by the interest rates considered to be applicable to similar Bonds
and Notes for those which do not have market prices.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

Financial Data of Mizuho Financial Group, Inc.—54

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(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 of financial instruments.
Millions of yen
2012
2011
Consolidated Balance
Consolidated Balance
Sheet Amount
Sheet Amount

As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships *2*3(iii) Other
Total *4¥¥

251,198
145,203
100,182
496,583¥

Thousands of U.S. dollars
2012
Consolidated Balance
Sheet Amount

280,340
156,965399
437,704¥$$

3,058,170
1,767,758
1,219,652
6,045,580*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.
*2 Of the Investments in Partnerships, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed
extremely difficult to determine fair values as being subject to disclosure of fair values.
*3 We do not treat Preferred Securities and others included in Other as being subject to disclosure of fair values as there are no market prices andother factors and they are deemed extremely difficult to determine fair values.
*4 During the fiscal years ended March 31, 2012 and 2011, the amounts of impairment (devaluation) were ¥12,636 million ($153,841 thousand) and¥15,562 million , respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities
As of March 31, 2012
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years¥ 6,420,008 ¥
31,837 ¥0
Due from Banks
249,032——
Call Loans and Bills Purchased
679,049
202,159
89,949Other Debt Purchased*1
14,425,239 12,963,255 11,360,536
Securities
1,000
700,000
1,100,000
Bonds Held to Maturity—
700,000
1,100,000
Japanese Government Bonds
1,000
—
—
Japanese Corporate Bonds
14,424,238 12,263,255 10,260,536
Other Securities with Maturities
12,594,011
9,735,267
7,352,000
Japanese Government Bonds
Japanese Local Government
51,096
66,37957,391
Bonds
717,113
1,061,129
388,824
Japanese Corporate Bonds
1,035,661
1,368,052
2,395,670
Foreign Bonds
26,35532,426
66,651Other*227,523,354 12,696,026
8,332,041
Loans and Bills Discounted¥ 49,296,684 ¥25,893,279 ¥19,782,528
Total

55—Financial Data of Mizuho Financial Group, Inc.

5-7 years¥——
38,783
1,687,451———
1,687,451
490,000

27,279
121,999
1,020,860
27,3113,710,233¥ 5,436,468

7-10 years¥——
20,143
2,971,403———
2,971,403
2,127,400

Millions of yen
Over 10 years¥——
518,392
3,533,539———
3,533,539
228,000

64,261
871
114,357
984,898
589,150
2,314,424
76,234
5,345
3,429,330
6,950,829¥ 6,420,877 ¥11,002,761

As of March 31, 2011
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

Due from Banks¥ 8,614,228 ¥
1,300 ¥
418 ¥Call Loans and Bills Purchased
375,716——
Other Debt Purchased
574,631
149,469
205,180
16,147,929 10,356,263
7,645,477
Securities *1
501
101,006
1,100,000
Bonds Held to Maturity—
100,000
1,100,000
Japanese Government Bonds
501
1,006
—
Japanese Corporate Bonds
16,147,427
10,255,257
6,545,477
Other Securities with Maturities
14,211,960
7,808,070
4,286,300
Japanese Government Bonds
Japanese Local Government
9,531
76,71080,801
Bonds
861,831
1,273,841
569,111
Japanese Corporate Bonds
1,045,502
1,061,948
1,568,923
Foreign Bonds
18,602
34,68640,340Other*227,356,207 12,857,598
7,436,960
Loans and Bills Discounted¥ 53,068,712 ¥ 23,364,631 ¥ 15,288,036 ¥Total
As of March 31, 2012
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

— ¥
— ¥
—
—
—
—
65,00931,866646,109
1,293,365
2,595,991
2,408,813
—
—
—
—
—
—
—
—
—
1,293,365
2,595,991
2,408,813
512,500
2,017,400
320,200
622
162,854557,083
60,304
3,434,182
4,792,556 ¥

59,614916
203,515871,054309,236
1,214,366
6,224
2,276
3,290,836
7,086,704
5,918,694 ¥ 10,141,627

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

387,606 $
1 $
— $
— $
—
Due from Banks$ 78,159,349 $
3,031,805
Call Loans and Bills Purchased
—
—
—
—
—
8,266,974
2,461,163
1,095,078
472,165
245,228
6,311,089
Other Debt Purchased
175,617,718 157,819,030 138,306,999 20,543,604
36,174,867 43,018,499
Securities *1
12,1808,522,036 13,391,770
Bonds Held to Maturity————
8,522,036 13,391,770
Japanese Government Bonds———
12,180Japanese Corporate Bonds
—
—
—
—
—
36,174,867 43,018,499
Other Securities with Maturities 175,605,538 149,296,994 124,915,229 20,543,604
5,965,425
25,899,683
2,775,749
Japanese Government Bonds 153,323,738 118,520,421 89,505,722
Japanese Local Government
622,069
808,132
698,698
332,108
782,344
10,611
Bonds
8,730,387
12,918,542
4,733,676
1,485,267
1,392,221 11,990,487
Japanese Corporate Bonds
12,608,486
16,655,132
29,165,696 12,428,304
7,172,517 28,176,578
Foreign Bonds
320,858
394,767
811,437
332,500
928,10265,074
Other
335,078,582 154,565,695 101,437,082 45,169,630
41,749,828 84,621,736
Loans and Bills Discounted *2$600,154,428 $315,233,494 $240,839,160 $ 66,185,399 $ 78,169,923 $133,951,324
Total*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 ¥622,537 million ($7,578,980 thousand) and ¥703,591 million, and loans with no maturities of ¥536,155 million ($6,527,335 thousand) and¥611,677 million as of March 31, 2012 and 2011, respectively.

Financial Data of Mizuho Financial Group, Inc.—56

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2012

Millions of yen

Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositDebentures
Call Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

Within 1 year

3-5 years

5-7 years

793,016 ¥87,052 ¥48,019 ¥—11,824,096
650
—
—
—
—
—
5,668,929—
13,352,268
362,666
524,791—538,200—
699,894
1,446,778
1,264,507¥ 106,576,140 ¥ 5,201,164 ¥ 2,582,315 ¥———
132,481—372,978592,513 ¥———
125,469—
462,772
636,261 ¥———
118,192—
422,658
540,851

3-5 years

5-7 years

7-10 years

516,824 ¥

81,438 ¥45,931 ¥86

9,649,726
510—
150,289258,264
332,378
5,095,412——
14,533,424
204,318
716,411585,500——
721,290
1,339,907
1,414,147¥ 106,097,527 ¥ 5,030,757 ¥ 2,979,762 ¥———
152,367—
702,471936,278 ¥———108,737—
388,093542,762 ¥———106,124—
366,953
473,164

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years¥

1-3 years

74,492,751 ¥ 3,391,069 ¥7-10 years

As of March 31, 2011

Millions of yen

Types of Financial Instruments*1

Deposits
Negotiable Certificates of
DepositDebentures
Call Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total
As of March 31, 2012
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositDebentures
Call Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

Over 10 years

Within 1 year¥

1-3 years

75,361,884 ¥ 3,227,756 ¥Within 1 year

1-3 years

3-5 years$ 906,899,826 $ 41,284,020 $ 9,654,448 $ 1,059,812 $Over 10 years

584,605 $—143,950,532
7,913
—
—
—
—
—
—
—
—
—
—
69,015,453
—
—
—
—
—
162,555,009
4,415,221
6,388,991
1,612,877
1,527,507
1,438,919
6,552,228—————
8,520,753
17,613,568
15,394,535
4,540,771
5,633,946
5,145,592$1,297,493,801 $ 63,320,722 $ 31,437,974 $ 7,213,460 $ 7,746,058 $ 6,584,511*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥148,000 million ($1,801,802 thousand) and ¥113,600 million($1,383,005 thousand), and ¥148,000 million and ¥178,099 million as of March 31, 2012 and 2011, respectively.

57—Financial Data of Mizuho Financial Group, Inc.

44. 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
Consolidated
Balance
Sheet Amount

As of March 31, 2012

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 theConsolidated Balance Sheet Amount Bonds Held-toMaturity:
Japanese Government Bonds

Fair value

Difference¥

1,801,614¥

1,816,139¥

14,525¥

1,751,602
1,750,602
1,000¥

1,766,189
1,765,189
1,000¥

14,586
14,5860¥50,01150,011¥

49,95049,950

¥

(61)
(61)
Millions of yen

Consolidated
Balance
Sheet Amount

As of March 31, 2011

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

Fair value

Difference¥

1,202,123¥

1,208,220

¥

6,097

¥

901,832
900,324
1,508¥

909,198
907,685
1,513

¥

7,365
7,360
5

¥

300,290
300,290¥

299,022
299,022¥(1,268)(1,268)

Thousands of U.S. dollars
Consolidated
Balance
Sheet Amount

As of March 31, 2012

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

Fair value

Difference$

21,933,465$

22,110,297$

176,832$

21,324,604
21,312,423
12,181$

21,502,189
21,490,005
12,184$

177,585
177,5823$

608,861
608,861$

608,108
608,108

$

(753)
(753)

Financial Data of Mizuho Financial Group, Inc.—58

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen
As of March 31, 2012

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

59—Financial Data of Mizuho Financial Group, Inc.

Consolidated Balance
Sheet Amount

Acquisition Cost

Difference¥

49,798,518¥

49,714,651¥

83,866*2¥

30,782,427
1,436,809
24,767,795
22,543,510¥

30,132,504
983,245
24,675,852
22,488,274¥

649,922453,564
91,94355,236

241,572
1,982,712
4,577,821
3,890,937
405,791
281,092¥

19,016,090
1,072,543
11,604,769
10,146,167

238,350
1,949,228
4,473,406
3,841,789
390,583
241,033¥

30,993
1,427,607
6,338,777
5,079,093
420,295
839,389¥965

19,582,147
1,369,523
11,640,285
10,149,589

3,222
33,484
104,415
49,14815,20840,059¥31,084
1,459,611
6,572,338
5,153,431
445,743
973,163¥

1,001(566,056)(296,979)(35,516)(3,422)(90)(32,003)(233,560)(74,338)(25,448)(133,773)¥(36)

Millions of yen
As of March 31, 2011

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated Balance
Sheet Amount

Acquisition Cost

Difference(632)*2¥

44,145,985¥

44,146,618¥¥

19,455,877
1,496,300
15,475,956
13,790,717
108,479
1,576,759
2,483,620
1,494,720
536,345452,554¥

18,804,366
1,039,885
15,383,770
13,738,553
106,340
1,538,876
2,380,710
1,462,783
519,822398,104¥

651,510456,414
92,18652,1642,139
37,883102,909
31,936
16,52254,450¥24,690,108
1,144,399
17,996,922
15,498,867
121,689
2,376,366
5,548,785
4,307,045
531,316
710,423¥

25,342,251
1,395,079
18,100,443
15,549,952
123,099
2,427,391
5,846,728
4,446,184
556,034
844,509¥(652,143)(250,680)(103,520)(51,085)(1,410)(51,025)(297,943)(139,139)(24,718)(134,085)

¥

984

¥

1,017

¥

(32)

Financial Data of Mizuho Financial Group, Inc.—60

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
Consolidated Balance
Sheet Amount

As of March 31, 2012

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$

606,263,917$

605,242,900$

1,021,017*2$

374,755,628
17,492,204
301,531,481
274,452,286
2,940,983
24,138,212
55,731,943
47,369,588
4,940,238
3,422,117$

366,843,250
11,970,364
300,412,135
273,779,818
2,901,754
23,730,563
54,460,751
46,771,236
4,755,090
2,934,425$

7,912,378
5,521,840
1,119,346
672,468
39,229407,649
1,271,192
598,352
185,148487,692$

231,508,289
13,057,509
141,280,364
123,522,856
377,329
17,380,179
77,170,416
61,834,589
5,116,813
10,219,014$

238,399,650
16,673,043
141,712,750
123,564,519
378,431
17,769,800
80,013,857
62,739,611
5,426,632
11,847,614$ (6,891,361)(3,615,534)(432,386)(41,663)(1,102)(389,621)(2,843,441)(905,022)(309,819)(1,628,600)$

11,751$

12,191$(440)*1 The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding theconsolidated balance sheet date. The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or otherreasonable value at the consolidated balance sheet date.
*2 Unrealized Gains (Losses) or Difference include losses of ¥7,343 million ($ 89,399 thousand) and losses of ¥1,242 million which were recognized in thestatements of income for the fiscal years ended March 31, 2012 and 2011, 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
2012
As of March 31,

Thousands of U.S. dollars
2012

2011

Unrealized
gains (losses)

Unrealized
gains (losses)

Unrealized
gains (losses)¥(15,009)¥(57,702)$(182,730)

Trading Securities

Millions of yen
2012

Thousands of U.S. dollars
2012

2011

As of March 31,

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Money Held in Trust for
Investment¥ 70,449—¥ 121,282—$ 857,671—* Fair values of trading securities as of March 31, 2012 and 2011 are described in “43. Financial Instruments.”

61—Financial Data of Mizuho Financial Group, Inc.

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
on saleson salesfrom sales

For the Fiscal Year ended March 31,
2012

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥

112,577
63,744,981
61,593,225¥ 41,125
67,95854,205¥

241,899
1,909,856
18,540,767¥ 82,398,326

561
13,191
168,446¥ 277,530

181
2,962
62,612¥ 81,238

Millions of yen
Total amount
Proceedsof gains
from sales
on salesTotal amountof losses
on sales

For the Fiscal Year ended March 31,
2011

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥

4,635
13,99010,846

187,355
49,916,098
48,472,744¥ 36,581
101,529
82,171¥ 12,925
23,59820,357

77,8171,365,536
20,204,651¥ 70,308,105

989
18,369154,937¥ 293,049

238
3,002
90,808¥ 127,332

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
on saleson salesfrom sales$

1,370,557
776,052,849
749,856,651

2,944,960
23,251,238
225,721,548$1,003,144,954$

500,680 $827,348
659,91356,429170,328132,054

6,831
160,604
2,050,724$ 3,378,752 $

2,207
36,067762,269
989,026

Notes: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2012 and 2011 are as follows:

Millions of yen
2012

As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Other Money Held in Trust
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains (Losses) on Other
Securities
Owned by Affiliated Companies, which is attributable to MHFGNet Unrealized Gains (Losses) on Other Securities¥

90,57390,609(36)
50,91639,656

¥

9,253
7,453
¥ 37,857¥

2011

Thousands of
U.S. dollars
2012

44
76
(32)
12,652(12,608)$ 1,102,673
1,103,113(440)
619,878
482,795

14,629112,6545,589(21,648)$

90,746
460,887*1 The difference between acquisition cost and fair value excludes ¥7,343 million ($ 89,399 thousand) and ¥1,242 million which were recognized in thestatements of income for the fiscal years ended March 31, 2012 and 2011, 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.

Financial Data of Mizuho Financial Group, Inc.—62

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

45. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2012 and 2011 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-countercontracts 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

As of March 31, 2012

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

63—Financial Data of Mizuho Financial Group, Inc.

Contract value
Total
Over one year¥

Fair value

Millions of yen
Unrealized
gains (losses)(95,539)
96,002¥ (95,539)
96,002¥ 13,156,006
12,941,769¥ 4,925,679
3,946,731

4,662,067
6,185,807

88,257—(1,609)
1,153

342
(523)

17,006,676
18,120,568

1,065,852
1,233,613(1,947)(350)(1,947)(350)

355,501,197
347,013,787
52,988,064
677,028

238,964,889
235,961,394
30,954,521
296,491

9,461,311(9,187,152)
19,886(2,864)

9,461,311(9,187,152)
19,886(2,864)

13,944,937
13,147,794

9,544,007
9,244,252(196,467)
198,723(196,467)
198,723

2,588,149
5,528,438
14,800/1,171,753
3,697,960—/

33,374(86,587)(4)¥ 237,927

33,374(86,587)(4)¥ 238,203

As of March 31, 2011

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

Contract value
Total
Over one year¥

Fair value

Millions of yen
Unrealized
gains (losses)(71,558)
71,681¥ (71,558)
71,681¥ 15,427,001
15,712,439¥ 6,265,807
6,987,209

2,543,165
3,563,089

30,005
10,027(2,332)
1,040

(619)
(384)

13,809,593
14,567,395

1,128,628
565,438(8,531)
8,579(8,531)
8,579

348,493,670
344,609,755
37,952,087
735,295

242,314,044
238,004,342
28,289,323
270,6888,971,459(8,655,181)
21,236(3,744)

8,971,459(8,655,181)
21,236(3,744)

15,051,037
14,650,321

11,060,568
10,690,804(200,736)
208,539(200,736)
208,5392,241,260
4,002,165
14,800/1,034,710
3,467,221
14,800/20,991(75,957)(9)285,478

20,991(75,957)(9)¥ 285,765¥

Financial Data of Mizuho Financial Group, Inc.—64

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2012

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

65—Financial Data of Mizuho Financial Group, Inc.

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year$

160,165,656
157,557,462$

59,966,879
48,048,843$(1,163,128)
1,168,772$ (1,163,128)
1,168,772

56,757,584
75,308,096

1,074,477—(19,599)
14,043

4,173(6,373)207,045,002
220,605,903

12,976,049
15,018,420(23,705)(4,267)(23,705)(4,267)

4,327,991,198
4,224,662,617
645,094,533
8,242,377

2,909,238,973
2,872,673,417
376,850,765
3,609,589

115,185,187(111,847,490)
242,105(34,870)

115,185,187(111,847,490)
242,105(34,870)

169,770,361
160,065,674

116,191,965
112,542,638(2,391,865)
2,419,325(2,391,865)
2,419,325

31,509,003
67,305,077
180,180/

14,265,319
45,020,210—/

406,307(1,054,148)(56)
2,896,611

406,307(1,054,148)(56)
2,899,967$$

(b) Currency-Related Transactions
Contract value
Total
Over one year

As of March 31, 2012

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
Bought
Total

¥

¥

—
—

Fair value

¥

¥

(0)
0

¥

(0)
0

24,146,988

16,883,358(215,170)(277,288)

26,906,919
16,186,314

2,588,376
2,286,110(71,236)
198,202(71,236)
198,2025,327,291
5,608,015

3,263,670
3,151,189(578,381)
901,550(79,192)
394,386

2,291,783

2,149,126

17,524(9,613)

5,739
91,631
/

—
—
/

36
6,497
259,023

36
6,497
161,791¥

Contract value
Total
Over one year

As of March 31, 2011

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Total

550
3,076

Millions of yen
Unrealized
gains (losses)

15,95416,098¥——¥Millions of yen
Unrealized
gains (losses)

Fair value

¥

(3)
2

¥

(3)
2

23,109,073

15,360,522(137,101)(258,838)

21,674,723
12,005,919

1,628,251
1,634,432

161,474(26,416)

161,474(26,416)

7,284,380
7,822,077

4,446,766
4,825,235(883,951)
1,396,574(200,132)
733,993

1,235,874/

894,762/¥(120,557)
390,020¥(74,619)
335,460

Financial Data of Mizuho Financial Group, Inc.—66

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2012

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

$

6,707
37,452

$

—
—

$

(2)
4

$

(2)
4

293,973,567

205,543,684(2,619,559)(3,375,807)

327,573,887
197,057,643

31,511,769
27,831,877(867,252)
2,412,981(867,252)
2,412,981

64,856,241
68,273,862

39,733,029
38,363,647(7,041,409)
10,975,776(964,119)
4,801,396

27,900,945

26,164,190

213,353(117,034)

69,8801,115,547
/

—
—
/

442
79,101
3,153,435

442
79,101
1,969,710$$(c) Stock-Related Transactions
Contract value
Total
Over one year

As of March 31, 2012

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal

67—Financial Data of Mizuho Financial Group, Inc.

¥

302,299
162,652¥——

Millions of yen
Unrealized
gains (losses)

Fair value¥(13,628)(20)¥(13,628)(20)

723,310
749,993

104,673
105,360(31,236)
26,262(10,945)2,402

528,292

511,878

27,732

27,732

1,204,935
1,048,093

422,255
360,700(116,965)
80,581(74,290)
52,59939,009/34,900/¥(546)(27,822)¥(546)(16,697)

Contract value
Total
Over one year

As of March 31, 2011

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal

As of March 31, 2012

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal¥

540,143
91,158¥——Fair value

¥

669
403

Millions of yen
Unrealized
gains (losses)

¥

669
403

307,040
275,206

36,81941,306(17,184)
11,693(6,649)(420)

566,092

503,198

42,74842,748655,392
585,700

409,460
356,328(92,327)
68,587(58,332)
48,41650,023/30,400/Contract value
Total
Over one year

$ 3,680,291
1,980,189

$

¥

1,144
15,734¥

1,144
27,980Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)——$ (165,923)(249)$ (165,923)(249)

8,805,819
9,130,670

1,274,324
1,282,688(380,288)
319,731(133,251)
29,245

6,431,612

6,231,787

337,625

337,625

14,669,294
12,759,848

5,140,685
4,391,295(1,423,982)
981,022(904,440)
640,365474,910/424,884/(6,658)$ (338,722)(6,658)$ (203,286)

Financial Data of Mizuho Financial Group, Inc.—68

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions
Millions of yen
2012

2011

Contract value
As of March 31,

Total

Over
one year

Fair
Unrealized
value gains (losses)

Listed:Futures:Sold¥ 2,949,505 ¥— ¥Bought2,436,041
12,035
Futures Options:Sold291,471—
Bought430,597—
Over-the-Counter:
Options:
Sold234,282
16,461
Bought227,402
14,965Total// ¥(5,038) ¥5,426(5,038) ¥ 1,278,197 ¥5,426
1,110,046¥

2,491(2,683)

—
—

(127)
322

(0)
(9)

(1,088)
1,126
952 ¥

(737)
495
(277)

528,755
534,043/

15,956
13,942/ ¥(1,451)
860
(588)

90
(666)
(777)

Fair
Unrealized
value gains (losses)

Listed:Futures:Sold$ 35,908,271 $— $ (61,342) $Bought29,657,186
146,525
66,067
Futures Options:Sold3,548,473—(5,108)
Bought5,242,233—
11,522Over-the-Counter:
Options:
Sold
2,852,231
200,403(13,254)
Bought2,768,477
182,196
13,710Total// $ 11,595 $69—Financial Data of Mizuho Financial Group, Inc.

2,491
(2,683)

122,763
160,850

Contract valueOver
One year— ¥—Unrealized
gains (losses)

140
(564)

Thousands of U.S. dollars

Total

Fair
value

(419)
946

2012

As of March 31,

Contract value
Over
Total one year

(61,342)
66,067
1,712(6,876)(8,975)
6,035(3,379)¥(e) Commodity-Related Transactions
Millions of yen
2012

2011
Contract value

Contract value
As of March 31,

Over
one year

Total

Listed:Futures:
Sold¥
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

88,72086,902¥

Fair
Unrealized
value gains (losses)

5,227 ¥ (2,813)
4,368
2,370

Total

Over
one year

Fair
value

Unrealized
gains (losses)¥ (2,813)
2,370¥ 71,662
69,939¥ 6,228
4,693¥ (9,795)
9,244¥(9,795)
9,244

0
0

—
—

(0)
0

1
(0)

142
137

—
—

(563)
649

(149)
204

282,583
269,258/

121,807
109,732/(39,485)
54,823¥ 14,895(39,485)
54,823¥ 14,896

337,209323,710/

184,797
169,817/(80,806)
101,224¥ 19,952(80,806)
101,224¥ 19,921

Thousands of U.S. dollars
2012
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

Over
one year

Fair
Unrealized
value gains (losses)$1,080,113
1,057,983$ 63,640
53,189$(34,254)
28,854$(34,254)
28,854

10
10

—
—

(2)
2

22
(12)

3,440,272
3,278,043/

1,482,924
1,335,915/(480,705)
667,445$181,340(480,705)
667,445$ 181,350

Note: Commodities include oil, copper, aluminum and others.

Financial Data of Mizuho Financial Group, Inc.—70

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions

Contract value
Total
Over one year

As of March 31, 2012

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

3,364,866
3,682,847/¥

Fair value

1,952,545
2,384,722/¥

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

4,421,584
4,618,106/¥

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal$ 40,965,018
44,836,226/¥¥

3,217,233
3,418,085
/

¥

5,895
21,442
27,338¥(351)
26,702
26,350Millions of yen
Unrealized
gains (losses)

Fair value

¥
¥

5,895
21,442
27,338

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

As of March 31, 2012

(351)
26,702
26,350¥Contract value
Total
Over one year

As of March 31, 2011

Millions of yen
Unrealized
gains (losses)$ 23,770,945
29,032,412/$$(4,282)
325,084
320,802$(4,282)
325,084$ 320,802

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.
(g) Weather Derivative Transactions
Millions of yen
2012

As of March 31,

Contract value
Over
Total
one year

Over-the-Counter:
Weather Derivatives:
Sold
Total

¥ —
/

¥

2011
Fair
Unrealized
value gains (losses)

— ¥
/ ¥

—
—

¥
¥

—
—

Thousands of U.S. dollars
2012

As of March 31,

Contract value
Over
Total one year

Fair
Unrealized
value gains (losses)

Over-the-Counter:
Weather Derivatives:
Sold
Total

$ —
/

$
$

Note: Transactions are related to rainfall.

71—Financial Data of Mizuho Financial Group, Inc.

$

—
/

—
—

$
$

—
—

Contract value
Over
Total
one year

Fair
Unrealized
value gains (losses)

¥ 10
/

¥
¥

¥

—
/

2
2

¥
¥

2
2

(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions
Millions of yen
As of March 31, 2012

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits,
debentures, borrowings
and others

Contract value
Total
Over one year

Fair value¥ 29,245,006
6,939,398
184,800¥ 18,531,597
4,658,361
170,000¥ 313,667(106,071)
221

66,95964,631(2,461)Other securities and others

Loans and borrowings
Note 2.

30,00041,465/30,00030,453/¥ 205,355
Millions of yen

As of March 31, 2011

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits,
debentures, borrowings
and others

Contract value
Total
Over one year

Fair value¥ 26,037,557
6,480,166
184,800¥ 16,904,753
5,039,746
184,800¥ 247,331(44,657)
232

62,87459,572(1,773)

Other securities and loans

Loans and borrowings
Note 2.

30,00037,437/30,00033,876/¥ 201,132

Financial Data of Mizuho Financial Group, Inc.—72

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2012

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Loans, deposits,
debentures, borrowings
and others$

356,038,555
84,482,577
2,249,817$

225,609,905
56,712,462
2,069,637$

3,818,689(1,291,353)
2,699

Other securities and others
815,189

786,844(29,971)

Loans and borrowings
Note 2.

365,230
504,809/365,230
370,747/$

2,500,064

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 andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “43.
Financial Instruments.”

73—Financial Data of Mizuho Financial Group, Inc.

(b) Currency-Related Transactions
Millions of yen
As of March 31, 2012

Primary Method :Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits,
borrowings and parent
company’s interest of
subsidiaries’ net assets¥

7,974,270¥

230,871
5,739/

2,729,241——/

Fair value¥(190,606)¥(14,683)(36)(205,326)
Millions of yen

As of March 31, 2011

Primary Method :Swaps
Forwards:
Sold
BoughtTotal

As of March 31, 2012

Primary Method :Swaps
Forwards:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits,
borrowings and parent
company’s interest of
subsidiaries’ net assets

Primary
hedged items

Loans, deposits,
borrowings and parent
company’s interest of
subsidiaries’ net assets¥

8,859,974
217,702
1,246/¥

1,217,707——/

Fair value¥

39,132¥(1,420)(7)37,705

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 97,081,457$ 33,226,709$ (2,320,510)

2,810,711
69,880/——/(178,759)(442)(2,499,711)$

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).

Financial Data of Mizuho Financial Group, Inc.—74

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions
Millions of yen
As of March 31, 2012

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Fair value

Other securities
¥

1,163

¥

—

68
248

—
—

/

/

¥

(285)

¥

(2)
9
(278)

Millions of yen
As of March 31, 2011

Fair Value Hedge Method :Index Futures:
Sold
BoughtTotal

As of March 31, 2012

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Fair value

Investment trusts
¥

74
184

¥

/

—
—

¥

/

¥

6
(11)
(5)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Other securities

75—Financial Data of Mizuho Financial Group, Inc.

$

14,167$—$ (3,473)

829
3,023

—
—

/

/

(31)
114
$ (3,390)46. Segment Information
Segment Information by Management Approach
1. Summary of Reportable Segment
The MHFG Group’s operating segments are based on the nature of the products and services provided, the type ofcustomer and the Group’s management organization.
The reportable segment information, set forth below, is derived from the internal management reporting systems usedby management to measure the performance of the Group’s operating segments. The management measures theperformance of each of the operating segments primarily in terms of “net business profits” (excluding the amounts ofcredit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) in accordance withinternal managerial accounting rules and practices.
MHFG manages its business portfolio through the three Global Groups: the Global Corporate Group, the Global RetailGroup and the Global Asset & Wealth Management Group. The Global Corporate Group consists primarily of MHCB
and MHSC, the Global Retail Group consists primarily of MHBK and MHIS, and the Global Asset & Wealth Management
Group consists primarily of MHTB.
Operating segments of MHCB and MHBK are aggregated within each entity based on customer characteristics andfunctions. Operating segments of MHCB are aggregated into three reportable segments, domestic, international, andtrading and others. Operating segments of MHBK are also aggregated into three reportable segments, retail banking,corporate banking, and trading and others. In addition to the three Global Groups, subsidiaries which provide services toa wide range of customers and which do not belong to a specific Global Group are aggregated as Others.
[The Global Corporate Group][MHCB (1)]MHCB is the main operating company of the Global Corporate Group and provides banking and other financial services
to large corporations, financial institutions, public sector entities, foreign corporations, including foreign subsidiaries ofJapanese corporations, and foreign governmental entities.
(Domestic (2))
This segment consists of the following three units of MHCB: corporate banking, global investment banking, and global
transaction banking. This segment provides a variety of financial products and services to large corporations,financial institutions and public sector entities in Japan. The products and services it offers include commercial
banking, advisory services, syndicated loan arrangements and structured finance.
(International (3))
This segment mainly offers commercial banking and foreign exchange transaction services to foreign corporations,
including foreign subsidiaries of Japanese corporations, through MHCB’s overseas network.
(Trading and others (4))
This segment consists of the global markets unit, and the global asset management unit. This segment supports thedomestic and international segments in offering derivatives and other risk hedging products to satisfy MHCB’s
customers’ financial and business risk control requirements. It is also engaged in MHCB’s proprietary trading, such as
foreign exchange and bond trading, and asset and liability management. This segment also includes costs incurredby headquarters functions of MHCB.
[MHSC (5)]Mizuho Securities is the securities arm of the Global Corporate Group and provides full-line securities services tocorporations, financial institutions, public sector entities and individuals.
The former Mizuho Securities and Shinko Securities merged to form the new Mizuho Securities in May 2009.
[Others (6)]This segment consists of MHCB’s subsidiaries other than MHSC and others. These entities offer financial products andservices in specific areas of business or countries mainly to customers of the Global Corporate Group.

Financial Data of Mizuho Financial Group, Inc.—76

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements[The Global Retail Group][MHBK (7)]MHBK is the main operating company of the Global Retail Group. MHBK provides banking and other financial services
primarily to individuals, SMEs and middle-market corporations through its domestic branch and ATM network.
(Retail banking (8))
This segment offers banking products and services, including housing and other personal loans, credit cards,
deposits, investment products and consulting services, to MHBK’s individual customers through its nationwide branch
and ATM network, as well as telephone and Internet banking services.
(Corporate banking (9))
This segment provides loans, syndicated loan arrangements, structured finance, advisory services, other banking
services and capital markets financing to SMEs, middle-market corporations, local governmental entities and otherpublic sector entities in Japan.
(Trading and others (10))
This segment supports the retail banking and corporate banking segments in offering derivatives and other risk
hedging products to satisfy MHBK’s customers’ financial and business risk control requirements. It is also engaged in
MHBK’s proprietary trading, such as foreign exchange and bond trading, and asset and liability management. This
segment also includes costs incurred by headquarters functions of MHBK.
[MHIS (11)]MHIS offers securities services to individuals and corporate customers of the Global Retail Group and provides those
corporate customers with support in procuring funds through capital markets.
[Others (12)]This segment consists of MHBK’s subsidiaries other than MHIS. These subsidiaries, such as Mizuho Capital and
Mizuho Business Financial Center, offer financial products and services in specific areas of business to customers of
the Global Retail Group.
[The Global Asset & Wealth Management Group][MHTB (13)]
MHTB is the main operating company of the Global Asset & Wealth Management Group and offers products andservices related to trust, real estate, securitization and structured finance, pension and asset management, and stocktransfers.
[Others (14)]This segment includes companies other than MHTB which are part of the Global Asset & Wealth Management Group.
These companies include Trust & Custody Service Bank, Mizuho Asset Management, DIAM and Mizuho Private WealthManagement. They offer products and services related to private banking, trust and custody, and asset management.
[Others (15)]This segment consists of MHFG and its subsidiaries that do not belong to a specific Global Group but provide theirservices to a wide range of customers. Under this segment, the MHFG Group offers non-banking services including
research and consulting services through Mizuho Research Institute, information technology-related services throughMizuho Information & Research Institute and advisory services to financial institutions through Mizuho Financial
Strategy.

77—Financial Data of Mizuho Financial Group, Inc.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts), Net
Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans), and the Amount of Assets by Reportable
Segment
The following information of reportable segment is based on internal management reporting.
Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciaryincome, Fee and commission income, Trading income, and Other operating income.
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) generalreserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring
expenses) and Other (Equity in income from investments in affiliates and certain other consolidation adjustments) are
deducted from Gross profits (excluding the amounts of credit costs of trust accounts).
Asset information by segment is not prepared on the grounds that management does not use asset information ofeach segment for the purpose of asset allocation or performance evaluation.
Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments isbased on the current market price.
Certain items in expenses regarding stock transfer agency business and pension management business, which had
been recorded as “General and administrative expenses (excluding Non-Recurring Losses)” in some domestic
consolidated trust bank subsidiary until the previous fiscal year, have been recorded as “Gross profits:(excluding theamounts of credit costs of trust accounts)” beginning with this fiscal year, from the standpoint that we should disclose
our financial information which reflects economic conditions more clearly in a manner that actively responds to our
profits, after turning the relevant trust bank subsidiary into a wholly-owned subsidiary of MHFG.

Financial Data of Mizuho Financial Group, Inc.—78

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) and Net Business Profits or
Losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) by Reportable Segment
Millions of yen

For the Fiscal Year ended March 31, 2012

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income
Total
General and Administrative Expenses(excluding Non-Recurring Losses)
OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

¥ 468,289
449,368¥ 917,658¥ 395,011
286,750¥ 681,761¥ 166,600
119,800¥ 286,400

465,444(52,077)

244,869—¥ 400,136¥ 436,892¥ 196,600

79—Financial Data of Mizuho Financial Group, Inc.

(5)

(6)

96,80061,600¥ 158,400¥ 131,611
105,350¥ 236,961

89,80062,00093,069144,845

—

—

—

—

96,400¥ 143,892¥ (28,452)¥¥(4,154)
120,547¥ 116,392

51,572
91,996¥ 143,569

77,432
42,070¥ 119,503
75,729(52,077)¥(8,304)MHIS

Others

(11)

(12)

674
43,910¥ 44,584¥ 37,874
8,575¥ 46,449¥ 545,372
253,296¥ 798,669¥ 239,200
39,700¥ 278,900¥ 254,600
121,600¥ 376,200

608,489(14,049)

556,444

243,000

221,700

91,74440,850

—

—

—

—

—

11,195(14,049)¥ 267,165¥ 242,225

35,900¥ 154,500

3,734¥ 21,205¥¥¥¥ 583,921
305,782¥ 889,704¥

51,825
Total

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income
Total
General and Administrative Expenses(excluding Non-Recurring Losses)
OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)

OthersGlobal Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income
Total
General and Administrative Expenses(excluding Non-Recurring Losses)
OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)¥MHSC

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(14)

(15)

722
46,842¥ 47,564¥ (7,315)
28,383¥ 21,068¥1,088,340
914,734¥2,003,075

39,094(1,862)

15,237(9,672)

1,206,310(77,661)

6,607¥ (3,841)¥ 719,104¥

43,444
131,199¥ 174,644¥

42,72284,357¥ 127,079

117,138(1,862)¥55,643¥78,043—¥49,036¥¥¥

Millions of yen

For the Fiscal Year ended March 31, 2011

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

MHSC

Others(5)(6)¥ 456,948
483,515¥ 395,778
282,556¥ 176,000
115,200¥

86,30056,900¥ 133,478
110,456¥

Total
General and Administrative Expenses(excluding Non-Recurring Losses)¥ 940,464¥ 678,334¥ 291,200¥ 143,200¥ 243,934¥ 149,734

471,321234,987

88,80062,10084,087

160,895

75,438OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)(56,688)

—

—

—

—

—

(56,688)¥ 412,455¥ 443,347¥ 202,400

81,100¥ 159,847¥ (11,161)¥ (19,730)

MHIS

Others(11)(12)

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income¥¥ 614,456
294,871¥ 571,752
237,545¥ 248,200
34,600¥ 266,900
124,900¥

Total
General and Administrative Expenses(excluding Non-Recurring Losses)¥ 909,327¥ 809,298¥ 282,800¥ 391,800

605,281554,750

237,700

OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)(15,894)——¥ 288,151¥ 254,547

45,100¥ 168,100¥

70,38542,009¥ 112,395¥ 42,115
7,544¥ 134,698¥ 50,369¥ 49,660

223,700

93,35041,012

9,519

—

—

—

(15,894)

9,357¥ 24,246

41,347¥¥589
49,780¥56,652
78,045(9,215)
158,949¥

Total

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)
Net Non-interest Income
Total
General and Administrative Expenses(excluding Non-Recurring Losses)
OthersNet Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

¥

43,425126,026¥(14)

42,53480,994¥891
45,032¥ 169,452¥ 123,528

117,52179,03938,481216

1,194,341(2,108)—(2,108)(14,552)(89,242)¥

49,822¥

44,488¥ 45,924¥ (5,386) ¥1,109,444
11,463915,877

¥

5,333

¥

6,077 ¥2,025,322¥ (8,691) ¥ 741,738

Financial Data of Mizuho Financial Group, Inc.—80

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

For the Fiscal Year ended March 31, 2012(1)

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

MHSC

Others(5)(6)

Gross Profits (excluding the amountsof credit costs of trust accounts)
Net Interest Income (expense)$ 5,701,118 $ 4,809,006 $ 2,028,244 $ 1,178,476 $ 1,602,286 $ (50,582) $ 942,694
Net Non-interest Income
5,470,760 3,490,993 1,458,486
749,939
1,282,568 1,467,589
512,178
Total$11,171,878 $ 8,299,999 $ 3,486,730 $ 1,928,415 $ 2,884,854 $ 1,417,007 $ 1,454,872
General and Administrative Expenses(excluding Non-Recurring Losses)
5,666,476 2,981,121 1,093,255
754,809
1,133,057 1,763,396
921,959————— (634,012)
Others(634,012)
Net Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)$ 4,871,390 $ 5,318,878 $ 2,393,475 $1,173,606 $ 1,751,797 $ (346,389) $ (101,099)(7)

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingand others
(8)
(9)
(10)

Gross Profits (excluding the amounts ofcredit costs of trust accounts)
Net Interest Income (expense)$ 7,108,856 $ 6,639,551 $ 2,912,101 $ 3,099,586 $ 627,864 $Net Non-interest Income
3,722,702 3,083,723
483,321 1,480,399 1,120,003
Total$10,831,558 $ 9,723,274 $ 3,395,422 $ 4,579,985 $ 1,747,867 $General and Administrative Expenses(excluding Non-Recurring Losses)
7,407,960 6,774,343 2,958,364 2,699,050 1,116,929
Others————(171,038)
Net Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)$ 3,252,560 $ 2,948,931 $ 437,058 $ 1,880,935 $ 630,938 $MHIS

Others(11)(12)

8,213 $
534,579
542,792 $461,092
104,400
565,492

497,324—

136,293(171,038)

45,468 $258,161

Total
Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

(14)

Gross Profits (excluding the amounts ofcredit costs of trust accounts)
Net Interest Income (expense)$ 528,913 $ 520,117 $
8,796 $ (89,059) $13,249,828
Net Non-interest Income
1,597,270 1,026,997
570,273345,555 11,136,287
Total$ 2,126,183 $1,547,114 $ 579,069 $ 256,496 $24,386,115
General and Administrative Expenses(excluding Non-Recurring Losses)
1,426,082
950,133
475,949
185,510 14,686,028
Others—(22,673)(117,750)(945,473)(22,673)
Net Business Profits (excluding theamounts of credit costs of trust
accounts, before reversal of (provisionfor) general reserve for losses onloans)$ 677,428 $ 596,981 $
80,447 $ (46,764) $ 8,754,614
Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general
corporations.
2.“Others (6)”, “Others (12)” and “Others (14)” include elimination of transactions between companies within the Global Corporate
Group, the Global Retail Group and the Global Asset & Wealth Management Group, respectively. “Others (15)” includes
elimination of transactions between the Global Groups.

81—Financial Data of Mizuho Financial Group, Inc.

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net businessprofits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve forlosses on loans) derived from internal management reporting by reportable segment are different from the amounts
recorded in Consolidated Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) of Segment Information and
Ordinary Profits
Thousands of
U.S. dollars

Millions of yen
2012

2011

2012

Gross Profits (excluding the amounts of credit costs of trust
accounts):
Total Amount of the Above Segment Information¥ 2,003,075¥ 2,025,322$ 24,386,115
Other Ordinary Income
170,143
95,9702,071,384
General and Administrative Expenses(1,283,847)(1,277,848)(15,629,996)
Other Ordinary Expenses(240,809)(254,945)(2,931,695)
Ordinary Profits¥
648,561¥
588,498$ 7,895,808
Note: Ordinary profits represents Total Income excluding certain special income less Total Expenses excluding certain
special expenses.
(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) of Segment Information and Income before Income Taxes andMinority Interests Recorded in Consolidated Statements of Income
Thousands of
U.S. dollars

Millions of yen
2012

Net Business Profits (excluding the amounts of credit costs oftrust accounts, before reversal of (provision for) general reserve
for losses on loans):
Total Amount of the Above Segment Information
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Net Gains (Losses) Related to Stocks
Net Extraordinary Gains (Losses)
Other
Income before Income Taxes and Minority Interests Recordedin Consolidated Statements of Income

¥

2011

719,104—(77,537)¥(42,569)(38,175)
67,88787,740¥716,449

741,738—(83,507)2012$(76,103)(70,520)
46,92676,892¥

635,425

8,754,614—(943,968)(518,250)(464,766)
826,489
1,068,177$

8,722,296

Financial Data of Mizuho Financial Group, Inc.—82

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Related Information(a) Information about Geographic Areas(i) Ordinary income
Millions of yen
2012

Ordinary IncomeJapan¥ 2,247,201 ¥Americas155,036

Europe¥Asia/Oceania
excluding Japan

133,452¥ 179,983 ¥Total

2,715,674
Millions of yen

2011

Ordinary Income

2012

Ordinary IncomeJapan¥ 2,340,338 ¥Japan$ 27,358,183 $Americas130,849

Europe¥Americas1,887,471

115,848

Europe$1,624,701

Asia/Oceania
excluding Japan

¥

129,754 ¥Total

2,716,791

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total$ 2,191,180 $ 33,061,535

Notes: 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidates subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2012 and 2011 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets on the consolidated balance
sheets of the Company.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

83—Financial Data of Mizuho Financial Group, Inc.

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen

For the Fiscal Year ended March 31, 2012

Impairment Loss

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

¥

1,381 ¥

243 ¥¥

5,650 ¥— ¥243

Others

(5)

(6)

¥

512 ¥

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Impairment Loss

— ¥

MHSC

5,083 ¥

— ¥

— ¥

MHIS

Others(11)

5,083 ¥

625

(12)

— ¥

566

Total

Impairment Loss

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

¥

13 ¥

(14)

2 ¥

11 ¥

21 ¥

7,067

Millions of yen

For the Fiscal Year ended March 31, 2011

Impairment Loss

Impairment Loss¥¥

1,380 ¥

3,437 ¥

(1)

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

1,260

¥

(7)

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

2,064

¥

— ¥

—

— ¥

¥

— ¥

1,260

MHSC

Others(5)¥

2,064 ¥

(6)

— ¥

MHIS

119

Others

(11)

(12)

94 ¥

1,278

Total

Impairment Loss

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

¥

2 ¥

(14)

2

¥

— ¥ (1,274) ¥3,546

Financial Data of Mizuho Financial Group, Inc.—84

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

For the Fiscal Year ended March 31, 2012

Impairment Loss

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

$ 16,821 $

2,970 $$— $Others(5)(6)

6,234 $

7,617

2,970 $

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Impairment Loss

—

MHSC

$ 68,787 $ 61,894

$

—

$

— $

61,894MHIS

Others

(11)

$

(12)

— $

6,893

Total

Impairment Loss

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

$

170 $

(14)

32 $

138 $

262 $

86,0407. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen

For the Fiscal Year ended March 31, 2012

Amortization of Goodwill
Unamortized Balance of Goodwill

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

¥

184 ¥
1,658

—
—

¥

60 ¥
2,131

—
—

¥

—
—

¥

—
—

—
—

¥

—
—

¥

—
—

¥

—
—
Total

Amortization of Goodwill
Unamortized Balance of Goodwill

85—Financial Data of Mizuho Financial Group, Inc.

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

¥

—
—

¥

(14)

—
—

¥

—
—

¥

2,557
56,802¥

2,802
60,592Others(5)¥

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Amortization of Goodwill
Unamortized Balance of Goodwill

¥

MHSC

(6)

— ¥
—

MHIS

Others

(11)

¥

184
1,658

(12)

— ¥
—

60
2,131

Millions of yen

For the Fiscal Year ended March 31, 2011

Amortization of Goodwill
Unamortized Balance of Goodwill

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

¥

—
1,972

¥

—
—

¥

56
—

¥

—
—

¥

—
—

¥

—
—

—
—

¥

—
—

¥

—
—

¥

—
—

Others(5)¥

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Amortization of Goodwill
Unamortized Balance of Goodwill

¥

MHSC

(6)

—
—

¥

MHIS

Others

(11)

¥

—
1,972

(12)

— ¥
—

56
—

Total

Amortization of Goodwill
Unamortized Balance of Goodwill

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

¥

—
—

¥

(14)

—
—

¥

— ¥
—

(56)
—

¥

—
1,972

Thousands of U.S. dollars

For the Fiscal Year ended March 31, 2012

Amortization of Goodwill
Unamortized Balance of Goodwill(1)$2,243 $
20,191— $—(7)

Amortization of Goodwill
Unamortized Balance of Goodwill$

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

742 $
25,954

— $
—

— $
—

— $
—

(5)

— $
—

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

— $
—

MHSC

— $
—

— $
—

Others(6)— $ 2,243—
20,191MHIS

Others

(11)

(12)

— $
742
—
25,954

Total

Amortization of Goodwill
Unamortized Balance of Goodwill

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

$

—
—

$

(14)

— $
—

— $ 31,131 $ 34,116—
691,530
737,675

Financial Data of Mizuho Financial Group, Inc.—86

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
Millions of yen

For the Fiscal Year ended March 31, 2012

Gain on Negative Goodwill Incurred

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers
(2)
(3)
(4)

(1)

¥

89,100

¥

—

¥

6,135

¥

—

¥

—

¥

—

¥

—

¥

—

¥

Others(5)—¥

Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

(7)

Gain on Negative Goodwill Incurred

¥

MHSC

(6)

— ¥

MHIS

Others(11)—¥

89,100

(12)

— ¥

6,135

Total
Global Asset & Wealth Management
Group
MHTB
Others(13)

Gain on Negative Goodwill Incurred

¥

—

¥

Others

(14)

—

¥

(15)

—¥

(4,055) ¥91,180For the Fiscal Year ended March 31, 2011
There is no applicable information.
Thousands of U.S. dollars

For the Fiscal Year ended March 31, 2012

Gain on Negative Goodwill Incurred(1)$1,084,739 $

— $

(7)

Gain on Negative Goodwill Incurred$

Global Corporate Group
MHCB
Domestic
InterTrading
national
andothers(2)(3)(4)

74,693 $

— $

— $

— $

— $

— $
Total

Gain on Negative Goodwill Incurred

87—Financial Data of Mizuho Financial Group, Inc.

Global Asset & Wealth Management
Group
MHTB
OthersOthers

(13)

(15)

$

— $

(14)

— $

— $ (49,369) $1,110,063

Others(5)— $Global Retail Group
MHBK
RetailCorporate
Tradingbankingbankingandothers
(8)
(9)
(10)

— $

MHSC

(6)

— $1,084,739

MHIS

Others

(11)

(12)

—$

74,693

47. Related Party
For the fiscal years ended March 31, 2012 and 2011
･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
related companies.

48. Matters Related to Combination and Others
1. Mizuho Financial Group, Inc. (“MHFG”) and Mizuho Trust & Banking Co., Ltd. (“MHTB”) determined, at their respective
meetings of the board of directors held on April 28, 2011, to turn MHTB into a wholly-owned subsidiary of MHFG bymeans of a share exchange and signed a share exchange agreement. As a result of the execution of the shareexchange on September 1, 2011, MHTB became a wholly-owned subsidiary of MHFG.
(1) Name of the company to which the share exchange was applied, purpose of business, effective date of the shareexchange, legal method of the share exchange, and main purpose of the share exchangea. Name of the wholly-owned
Mizuho Trust & Banking Co., Ltd.
subsidiary in the share exchange
b. Purpose of business
Trust and banking businessc. Effective date of the share
September 1, 2011exchanged. Legal method of the share
The share exchange in which MHFG became a wholly-owning parent andexchange
MHTB became a wholly-owned subsidiary pursuant to Article 767 of theCompany Law
e. Main purpose of the share
MHFG announced the Transformation Program as the Medium-term
exchange
Management Policy of Mizuho in May 2010, in order to respond promptly
and appropriately to the new business environment that surrounds
financial institutions, including changes in economic and social structuresand revisions of international financial supervision and regulations after
the global financial crisis. Our Group (“Mizuho”) has conducted afundamental review of the management challenges it faces, and the entire
group is now implementing measures to achieve sustainable growththrough initiatives for further enhancement of three areas, “profitability,”“financial base” and “front-line business capabilities,” while pursuing thegroup’s “customer first policy.”
The Transaction turning MHTB into a wholly owned-subsidiary is intended
to further enhance the “group collective capabilities” by integrating groupwide business operations, optimizing management resources, such as
workforce and branch network, and accelerating the implementation of theTransformation Program. Specifically, the Transaction aims to (i) ensure a
prompt decision-making process and flexibility of strategies and establish
a group management structure that can respond with greater flexibility to
the changes in the external business environment and challenges of thegroup as a whole as well as of each group company, (ii) further enhance
Mizuho's comprehensive financial services capabilities, which are
Mizuho’s strengths, and reinforce group collaboration that provides
seamless full-line services that include banking, trust and securities
functions, and (iii) pursue improvement of group management efficiency
by thoroughly promoting the consolidation of operations and the cost
structure reforms.

Financial Data of Mizuho Financial Group, Inc.—88

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Overview of the applied accounting treatment
As a result of the application of the accounting treatment stipulated in “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, December 26, 2008) and “Revised Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, December 26,2008), goodwill has been incurred.
(3) Acquisition cost and breakdown of additionally acquired shares of the subsidiary
Consideration for acquisition:
Common stock of MHTB
¥95,615 million ($1,164,056 thousand)Expenses directly necessary for acquisition: Advisory fees and others¥212 million ($2,585 thousand)Acquisition cost:¥ 95,827 million ($1,166,641 thousand)(4) Share allotment ratio, calculation method, and number of shares delivereda. Share allotment ratio:
MHFG
MHTB
Company Name
(wholly-owning parent company(wholly-owned subsidiary inin the share exchange)
the share exchange)
Details of allotment ofshares upon the share1
0.54
exchangeb. Calculation method:
MHFG and MHTB engaged in negotiations and discussions with reference to the calculation results of the shareexchange ratio provided by Merrill Lynch Japan Securities Co., Ltd. (“BofA Merrill Lynch”) and J.P. Morgan
Securities Japan Co., Ltd. (“J.P. Morgan”) and with consideration for MHFG’s and MHTB’s financial conditions,performance trends and stock price movements, etc. As a result, MHFG determined that the share exchange ratio
set forth above was beneficial to the shareholders of MHFG, and MHTB determined that the share exchange ratio
set forth above was beneficial to the shareholders of MHTB, and MHFG and MHTB resolved the share exchange
ratio for the share exchange at their respective meetings of the board of directors held on April 28, 2011.
c. Number of shares delivered:
Shares of common stock of MHFG: 824,271,984 shares(5) Amount, cause, amortization method, and amortization period of goodwill incurred¥58,258 million ($709,262 thousand)a. Amount of goodwill incurred:b. Cause:
Difference between MHFG’s increase in shares of stock corresponding to MHTB which became a wholly-owned
subsidiary and the acquisition costc. Amortization method and amortization period:
20 years under the straight-line method

89—Financial Data of Mizuho Financial Group, Inc.

2. MHFG, Mizuho Corporate Bank, Ltd. (“MHCB”) and Mizuho Securities Co., Ltd. (“MHSC”) determined, at their respective
meetings of the board of directors held on April 28, 2011, to turn MHSC into a wholly-owned subsidiary of MHCB bymeans of a share exchange and signed a share exchange agreement. As a result of the execution of the shareexchange on September 1, 2011, MHSC became a wholly-owned subsidiary of MHCB.
(1) Name of the company to which the share exchange was applied, purpose of business, effective date of the shareexchange, legal method of the share exchange, and main purpose of the share exchangea. Name of the wholly-owned
Mizuho Securities Co., Ltd.
subsidiary in the share exchange
b. Purpose of business
Financial instruments businessc. Effective date of the share
September 1, 2011exchanged. Legal method of the share
The share exchange in which MHCB became a wholly-owning parent andexchange
MHSC became a wholly-owned subsidiary pursuant to Article 767 of theCompany Law
e. Main purpose of the share
MHFG announced the Transformation Program as the Medium-term
exchange
Management Policy of Mizuho in May 2010, in order to respond promptly
and appropriately to the new business environment that surrounds
financial institutions, including changes in economic and social structuresand revisions of international financial supervision and regulations after
the global financial crisis. Mizuho has conducted a fundamental review ofthe management challenges it faces, and the entire group is now
implementing measures to achieve sustainable growth through initiatives
for further enhancement of three areas, “profitability,” “financial base” and“front-line business capabilities,” while pursuing the group’s “customer firstpolicy.”The Transaction turning MHSC into a wholly owned-subsidiary is intended
to further enhance the “group collective capabilities” by integrating groupwide business operations, optimizing management resources, such as
workforce and branch network, and accelerating the implementation of theTransformation Program. Specifically, the Transaction aims to (i) ensure a
prompt decision-making process and flexibility of strategies and establish
a group management structure that can respond with greater flexibility to
the changes in the external business environment and challenges of thegroup as a whole as well as of each group company, (ii) further enhance
Mizuho's comprehensive financial services capabilities, which are
Mizuho’s strengths, and reinforce group collaboration that provides
seamless full-line services that include banking, trust and securities
functions, and (iii) pursue improvement of group management efficiency
by thoroughly promoting the consolidation of operations and the cost
structure reforms.
(2) Overview of the applied accounting treatment
As a result of the application of the accounting treatment stipulated in “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, December 26, 2008) and “Revised Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, December 26,2008), negative goodwill has been incurred.
(3) Acquisition cost and breakdown of additionally acquired shares of the subsidiary
Consideration for acquisition:
Common stock of MHSC ¥110,336 million ($1,343,276 thousand)Expenses directly necessary for acquisition: Advisory fees and others¥42 million ($516 thousand)Acquisition cost:¥110,379 million ($1,343,792 thousand)Financial Data of Mizuho Financial Group, Inc.—90

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(4) Share allotment ratio, calculation method, and number of shares delivereda. Share allotment ratio:
MHFG
MHSC
(wholly-owning parent
Company Name
company of MHCB, which is a(wholly-owned subsidiary inwholly-owning parent company
the share exchange)in the share exchange)
Details of allotment ofshares upon the share1
1.48
exchangeb. Calculation method:
MHFG, MHCB and MHSC engaged in negotiations and discussions with reference to the calculation results of theshare exchange ratio provided by BofA Merrill Lynch and J.P. Morgan and with consideration for MHFG’s and
MHSC’s financial conditions, performance trends and stock price movements, etc. As a result, MHFG and MHCB
determined that the share exchange ratio set forth above was beneficial to the shareholders of MHFG, and MHSC
determined that the share exchange ratio set forth above was beneficial to the shareholders of MHSC, and MHFG,MHCB and MHSC resolved the share exchange ratio for the share exchange at their respective meetings of theboard of directors held on April 28, 2011.
c. Number of shares delivered:
Shares of common stock of MHFG: 951,166,005 shares(5) Amount and cause of negative goodwill incurreda. Amount of negative goodwill incurred:¥85,401 million ($1,039,712 thousand)b. Cause:
Difference between MHCB’s increase in shares of stock corresponding to MHSC which became a wholly-owned
subsidiary and the acquisition cost

91—Financial Data of Mizuho Financial Group, Inc.

3. MHFG, Mizuho Bank, Ltd. (“MHBK”) and Mizuho Investors Securities Co., Ltd. (“MHIS”) determined, at their respective
meetings of the board of directors held on April 28, 2011, to turn MHIS into a wholly-owned subsidiary of MHBK bymeans of a share exchange and signed a share exchange agreement. As a result of the execution of the shareexchange on September 1, 2011, MHIS became a wholly-owned subsidiary of MHBK.
(1) Name of the company to which the share exchange was applied, purpose of business, effective date of the shareexchange, legal method of the share exchange, and main purpose of the share exchangea. Name of the wholly-owned
Mizuho Investors Securities Co., Ltd.
subsidiary in the share exchange
b. Purpose of business
Financial instruments businessc. Effective date of the share
September 1, 2011exchanged. Legal method of the share
The share exchange in which MHBK became a wholly-owning parent andexchange
MHIS became a wholly-owned subsidiary pursuant to Article 767 of
the Company Law
e. Main purpose of the share
MHFG announced the Transformation Program as the Medium-term
exchange
Management Policy of Mizuho in May 2010, in order to respond promptly
and appropriately to the new business environment that surrounds
financial institutions, including changes in economic and social structuresand revisions of international financial supervision and regulations after
the global financial crisis. Mizuho has conducted a fundamental review ofthe management challenges it faces, and the entire group is now
implementing measures to achieve sustainable growth through initiatives
for further enhancement of three areas, “profitability,” “financial base” and“front-line business capabilities,” while pursuing the group’s “customer firstpolicy.”The Transaction turning MHIS into a wholly owned-subsidiary is intended
to further enhance the “group collective capabilities” by integrating groupwide business operations, optimizing management resources, such as
workforce and branch network, and accelerating the implementation of theTransformation Program. Specifically, the Transaction aims to (i) ensure a
prompt decision-making process and flexibility of strategies and establish
a group management structure that can respond with greater flexibility to
the changes in the external business environment and challenges of thegroup as a whole as well as of each group company, (ii) further enhance
Mizuho's comprehensive financial services capabilities, which are
Mizuho’s strengths, and reinforce group collaboration that provides
seamless full-line services that include banking, trust and securities
functions, and (iii) pursue improvement of group management efficiency
by thoroughly promoting the consolidation of operations and the cost
structure reforms.
(2) Overview of the applied accounting treatment
As a result of the application of the accounting treatment stipulated in “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, December 26, 2008) and “Revised Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, December 26,2008), negative goodwill has been incurred.
(3) Acquisition cost and breakdown of additionally acquired shares of the subsidiary
Consideration for acquisition:
Common stock of MHIS
¥37,460 million ($456,059 thousand)Expenses directly necessary for acquisition: Advisory fees and others¥36 million ($443 thousand)Acquisition cost:¥37,497 million ($456,502 thousand)Financial Data of Mizuho Financial Group, Inc.—92

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(4) Share allotment ratio, calculation method, and number of shares delivereda. Share allotment ratio:
MHFG
MHIS
(wholly-owning parent
Company Name
company of MHBK, which is a(wholly-owned subsidiary inwholly-owning parent company
the share exchange)in the share exchange)
Details of allotment ofshares upon the share1
0.56
exchangeb. Calculation method:
MHFG, MHBK and MHIS engaged in negotiations and discussions with reference to the calculation results of theshare exchange ratio provided by BofA Merrill Lynch and J.P. Morgan and with consideration for MHFG’s and
MHIS’s financial conditions, performance trends and stock price movements, etc. As a result, MHFG and MHBK
determined that the share exchange ratio set forth above was beneficial to the shareholders of MHFG, and MHIS
determined that the share exchange ratio set forth above was beneficial to the shareholders of MHIS, and MHFG,MHBK and MHIS resolved the share exchange ratio for the share exchange at their respective meetings of theboard of directors held on April 28, 2011.
c. Number of shares delivered:
Shares of common stock of MHFG: 322,928,897 shares(5) Amount and cause of negative goodwill incurreda. Amount of negative goodwill incurred:¥5,778 million ($70,351 thousand)b. Cause:
Difference between MHBK’s increase in shares of stock corresponding to MHIS which became a wholly-owned
subsidiary and the acquisition cost

93—Financial Data of Mizuho Financial Group, Inc.

49. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2012 and 2011 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

2012

¥

U.S. dollars
2012

2011

187.19
20.62
19.75

¥

$

177.53
20.47
19.27

2.28
0.25
0.24

Notes: 1. Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2012

2011

Thousands of U.S. dollars
2012¥ 6,869,295
2,374,513
410,368
4,287
2,158
1,957,699¥ 6,623,999
2,757,897
453,5769,438
2,754
2,292,128$ 83,629,112
28,908,127
4,995,961
52,193
26,28023,833,693

4,494,781

3,866,102

54,720,985

24,011,119 Thousand shares

21,776,528 Thousand shares

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
StockYear-end Outstanding Shares of Common
Stock, based on which Net Assets per
Share of Common Stock was calculated/

2. Net Income (Loss) per Share of Common Stock is based on the following information.
Millions of yen
2012

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)

¥

2011

Thousands of U.S. dollars
2012413,228$ 5,898,705

8,672
8,672

9,438
9,438

105,578
105,578475,847

403,789

5,793,127

484,519

23,073,543 Thousand shares¥

19,722,818 Thousand shares/

3. Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
2012

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 whichwere not included in the Calculation of
Diluted Net Income per Share ofCommon Stock as they have no dilutive
effects

¥

7,571
7,571
—
1,392,061 Thousand shares
1,380,433 Thousand shares
11,627 Thousand shares

—

2011

¥

Thousands of U.S. dollars
2012

8,324
8,337

$

92,17892,178(13)—

1,659,576 Thousand shares
1,649,424 Thousand shares
10,152 Thousand shares
Second Series of Stock
Acquisition Rights of*1
MHSC
Third Series of Stock
Acquisition Rights of
*2
MHSC

/
/
/

/

*1 The number of stock acquisition rights is 721.
*2 The number of stock acquisition rights is 1,914.

Financial Data of Mizuho Financial Group, Inc.—94

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

50. Subsequent Events
1. Mizuho Financial Group, Inc. (“MHFG”), Mizuho Bank, Ltd. (“MHBK”), Mizuho Corporate Bank, Ltd. (“MHCB”), Mizuho
Securities Co., Ltd. (“MHSC”) and Mizuho Investors Securities Co., Ltd. (“MHIS”) determined a basic policy for
conducting a merger between MHSC and MHIS (the “Merger”), and have been proceeding with consideration anddiscussions on the details of the Merger.
Based on the further consideration and discussions mentioned above, MHSC and MHIS have signed a merger
agreement with the approval of respective board of directors meetings of MHFG, MHBK, MHCB, MHSC and MHIS heldon May 15, 2012. The summary is as follows.
(1)Purpose of the Merger
The Merger is intended, as part of the new corporate structure, in the securities business, to enhance the retailbusiness in Japan, rationalize and streamline management infrastructure, and provide securities functions in a unified
manner through the group’s full-line securities company.
(2)Method of the Merger
MHSC will be the surviving company in the Merger, and MHIS will be the dissolving company in the Merger.
(3)Outline of New Company
a. Name of the company after the Merger
Mizuho Securities Co., Ltd.
b. Purpose of Business
Financial instruments business(4)Merger ratio, calculation method and number of new shares to be issued
a. Merger ratio:
Company NameMHSC (surviving entity)
MHIS (absorbed entity)
Merger Ratio
1
0.35
b. Calculation method of merger ratio:
For the sake of fairness in calculating the merger ratio, MHSC and MHIS determined the above merger ratio basedon the careful discussions between the two companies with the consideration of the calculation results by anindependent third-party.
c. Number of new shares to be issued:
Shares of common stock: 430,789,690 shares (scheduled)(5)Schedule of the Merger
Mizuho is planning to conduct the Merger on January 4, 2013 on the assumption that, among other things, filings will
have been made to, and permission will have been obtained from, the relevant authorities in Japan and any relevant
foreign countries which are required for the Merger.
2. The board of directors of MHFG has resolved, at the meeting of the board of directors held on May 15, 2012, to redeem
in full preferred securities issued by its group’s overseas special purpose subsidiary as set forth below.
(1)Issuer
Mizuho Preferred Capital (Cayman) 1 Limited(2)Type of securities
Non-cumulative Perpetual Preferred Securities(3)Total amount issued¥171,000 million(4)Scheduled redemption dateJune 29, 2012
(5)Major reasons for the redemption
Voluntary redemption date has arrived.

95—Financial Data of Mizuho Financial Group, Inc.

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

1

Non-Consolidated Statements of Income

2

Mizuho Corporate Bank, Ltd.
Non-Consolidated Balance Sheets3

Non-Consolidated Statements of Income

5

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheets

6

Non-Consolidated Statements of Income

8

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheets

9

Non-Consolidated Statements of Income

11

Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets

12

Non-Consolidated Statements of Income

15Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheets
Millions of yen
2012

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

Thousands of
U.S. dollars
2012

2011

¥

22,793
14,452
8,341
6,105,631
2,234
2,726
6,034,643
66,027¥

26,892
16,49010,401
6,008,266
1,446
3,202
5,938,822
64,793$

277,500
175,950
101,550
74,332,008
27,20033,192
73,467,779
803,837¥

6,128,424¥ 6,035,158$

74,609,508¥

1,187,205
741,070
440,000
6,135
252,885¥ 1,129,384
741,575
380,000
7,809
252,890$

14,453,434
9,022,036
5,356,708
74,6903,078,712

1,440,090

1,382,274

17,532,146

4,679,422
2,254,972
1,194,864
1,194,864
1,235,038
4,350
1,230,688
1,230,688(5,453)
6,753
6,753
2,158
4,688,334
6,128,424

4,645,383
2,181,375
1,025,651
1,025,651
1,441,554
4,350
1,437,204
1,437,204(3,196)
5,713
5,713
1,786
4,652,883¥ 6,035,158

56,968,864
27,452,799
14,546,689
14,546,689
15,035,774
52,95814,982,816
14,982,816(66,398)
82,21882,21826,28057,077,362
74,609,508¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

1—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries$

Non-Consolidated Statements of Income
Millions of yen
2012

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

37,781
7,954¥

Thousands of
U.S. dollars
2012

2011

46,422
16,543$459,967
96,84329,827
21,26021,26029,87819,673
19,673363,124
258,831
258,831

16,521
11,70017,814
10,407

26,74812,462
20,635
18,575201,136
142,443
216,878
126,701141
48
10,21763
0
18,511

1,723
586
124,392¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—2

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 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

2011

Thousands of
U.S. dollars
2012¥ 4,426,242
229,155
1,006,263
1,293,030
113,670
4,423,962
1
24,789,261
28,058,800
879,653
6,588,257
94,69524,931
50,639293
2,719
16,111
63,16655,545
1
7,619
62,494
3,953,368(220,237)(1,174)¥ 5,546,714
297,686
481,642
1,042,798
91,0544,499,655
2,024
23,345,084
26,367,776
792,269
7,359,024
103,726
25,982
51,113305
1,903
24,421
74,902
63,0772
11,822
136,9113,483,003(211,992)(2,508)$ 53,886,570
2,789,812
12,250,587
15,741,790
1,383,860
53,858,810
13
301,792,808
341,597,277
10,709,201
80,207,659
1,152,858
303,526
616,504
3,573
33,114
196,141
769,012676,225
21
92,766760,823
48,129,640(2,681,246)(14,297)¥ 75,760,611¥ 73,409,773$ 922,335,177

Millions of yen
2012

3—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Non-Consolidated Balance Sheetsー(Continued)

2011

Thousands of
U.S. dollars
2012¥ 29,510,685
11,946,104
4,572,422¥ 29,370,911
11,557,672
3,546,579$ 359,273,020
145,435,901
55,666,210

3,629,352
3,332,789
5,584,005
268,281
97,4003,112,154
6,106,435
8,131
8
2,003
16,861
3,953,368

1,961,840
3,140,425
7,443,572
195,177
114,900
3,225,016
6,006,029
7,279
420
974
21,082
3,483,003

44,184,962
40,574,501
67,981,567
3,266,145
1,185,780
37,888,413
74,341,801
98,995
101
24,386205,283
48,129,640

72,140,005

70,074,884

878,256,705

3,434,010
1,404,065
1,039,244
578,540
460,703
990,701
1,355
989,345989,345
186,594
2,024
156,015
28,5543,620,605¥ 75,760,611

3,164,140
1,404,065
1,039,244
578,540
460,703
720,831
1,355
719,475
719,475
170,749
3,011
138,904
28,833
3,334,889¥ 73,409,773

41,806,804
17,093,560
12,652,110
7,043,350
5,608,760
12,061,134
16,505
12,044,629
12,044,629
2,271,668
24,6501,899,389
347,62944,078,472$ 922,335,177

Millions of yen
2012

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
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 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

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—4

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Statements of Income

2011

Thousands of
U.S. dollars
2012¥ 675,903
354,552
214,666
158,169
21,272
198,487
22,702¥ 665,886
335,873
225,973
144,194
62,787
182,656
79,981$ 8,228,672
4,316,444
2,613,421
1,925,611
258,973
2,416,458
276,385

1,076,534

1,135,506

13,106,099

280,892
78,0603,419,676
950,338

23,24867,931
263,30290,909270,115
70,564
3,423
22,852
84,230255,316
124,454

283,033
827,015
3,205,537
1,106,759

726,283
350,251

756,969
378,537

8,842,020
4,264,079

40,34842,70012,61893,923491,220
519,854¥ 267,201¥ 271,995$ 3,253,005

Millions of yen
2012

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income―

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

5—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries―

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

2011

Thousands of
U.S. dollars
2012¥ 3,076,523
8,640,000
705,783
764,040
1,106,364
965
25,199,189
32,540,885
109,477
2,017,217
735,924
266,454384,135
12,0497,516
65,769221,406
96,434
2,686
122,285
222,795
959,117(344,674)(1)¥ 4,758,812
8,640,000
430,337
944,811
1,057,313
984
19,887,559
33,376,277
130,547
2,482,773
748,700
260,198
388,053
12,66825,36962,410216,366
99,545
2,796
114,023
235,826
953,547(403,089)(14)$ 37,454,636
105,186,267
8,592,444
9,301,681
13,469,250
11,751
306,783,412
396,163,695
1,332,812
24,558,287
8,959,392
3,243,906
4,676,590
146,690
91,503
800,7032,695,476
1,174,025
32,702
1,488,749
2,712,386
11,676,623(4,196,184)(17)¥ 75,955,014¥ 73,460,755$ 924,701,911

Millions of yen
2012

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—6

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheetsー(Continued)

2011

Thousands of
U.S. dollars
2012¥ 59,011,766―
1,193,800¥ 57,328,551
740,932
1,129,300$ 718,429,108―
14,533,723

2,410,375
275,934
6,753,601
12,397738,200
2,266,795
8,948
14,612
20,193
66,381
959,117

1,174,557
298,680
6,024,707
14,040802,400
2,829,438
9,070
14,07913,344
77,333
953,547

29,344,718
3,359,316
82,220,615
150,9318,987,095
27,596,727
108,943
177,894
245,843
808,147
11,676,623

73,732,123

71,409,983

897,639,683

2,128,988
700,000
1,057,242
490,707566,535
371,745
1,332
370,413370,41393,903(10,556)(11,621)116,081
2,222,891¥ 75,955,014

1,996,608
700,000
1,057,242
490,707566,535
239,365
1,332
238,033
238,033
54,163(58,823)
4,113
108,873
2,050,771¥ 73,460,755

25,919,019
8,522,036
12,871,231
5,974,037
6,897,194
4,525,752
16,2194,509,533
4,509,533
1,143,209(128,519)(141,486)
1,413,214
27,062,228$ 924,701,911

Millions of yen
2012

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for 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
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains(Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains(Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

7—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Non-Consolidated Statements of Income

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2011

Thousands of
U.S. dollars
2012¥ 634,488
444,381
117,172
203,465
23,337
98,743
108,280¥ 680,532
476,273
116,182
203,073
55,19766,561
68,426$ 7,724,474
5,410,053
1,426,500
2,477,053
284,119
1,202,139
1,318,249

1,068,315

1,073,790

13,006,034

89,11636,840384
55,720675
15,853603,972
148,171

108,781
53,712
3,108
55,252―
32,032605,250
100,604

1,084,934
448,503
4,686
678,357
8,227
193,004
7,352,963
1,803,896

913,510
154,805

901,922
171,867

11,121,381
1,884,653

436
24,213476
21,5705,315
294,785¥ 130,155¥ 149,821$ 1,584,553

Millions of yen
2012

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—8

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheets

2011

Thousands of
U.S. dollars
2012¥ 655,446
4,928
91,187
65,117
2,114,064
3,278,976
137
141,083
28,567
11,58014,2740
2,712
18,444
18,149―294
12,80949,548(17,971)(0)¥ 497,456―
135,487
61,592
2,062,272
3,249,647
180
163,447
29,046
12,057
14,295
10
2,682
19,684
19,3871294
21,98042,007(18,127)(0)$ 7,979,627
60,0001,110,144
792,763
25,737,327
39,919,359
1,679
1,717,594
347,794
140,981
173,783
4
33,026
224,550
220,960―
3,590
155,949
603,219(218,793)(2)¥6,442,339¥6,264,676$78,431,210

Millions of yen
2012

As of March 31,

AssetsCash and Due from Banks
Call Loans
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

9—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Non-Consolidated Balance Sheetsー(Continued)

2011

Thousands of
U.S. dollars
2012¥3,105,327
780,724¥3,290,237
582,328$37,805,301
9,504,800

384,723
65,282
766,352
14
88,500805,241
22,444
1,942
13,5201,157
49,548

190,798
63,532785,670
7
88,500849,340
25,9391,956
13,3151,150
42,007

4,683,754
794,766
9,329,837
179
1,077,429
9,803,286
273,247
23,652
164,605
14,090603,219

6,084,780

5,934,784

74,078,165

335,702247,369
15,505
15,50572,827
9,508
63,31963,319―21,85625,988(4,132)―

312,018
247,303
15,43915,43949,415
8,061
41,35441,354(140)
17,487
22,580(5,093)385
329,891¥6,264,676

4,086,958
3,011,562
188,765
188,765886,631
115,763770,868
770,868―
266,087
316,397(50,310)―

Millions of yen
2012

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 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 on Other Securities, net of Taxes
Net Deferred Hedge (Losses), net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

357,559¥6,442,339

4,353,045$78,431,210

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—10

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Statements of Income

2011

Thousands of
U.S. dollars
2012¥48,450
59,41041,66915,61745,156
2,061
13,385
6,456¥48,773
62,87346,516
13,681
41,737
3,239
13,37910,223$589,853
723,281507,304
190,130
549,755
25,094
162,959
78,598

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

174,920

180,227

2,129,540

16,687
5,675
22,9491,747
86,064
11,51820,3398,367
14,4503,340
95,98314,082

203,164
69,099279,394
21,2701,047,775
140,225

Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

138,966
35,953

148,196
32,031

1,691,828
437,712

(5)
5,167

0
6,827

(63)
62,910¥30,791¥25,203$374,865

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income

Net Income

Millions of yen
2012

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

11—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

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
Securities: Fail to Deliver
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 Loans to Subsidiaries and Affiliates
Long-term Deposits
Long-term Prepayment Expenses
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Total Fixed Assets
Total Assets

2011

Thousands of
U.S. dollars
2012¥ 120,089
54,676
7,405,021
6,489,752―
915,269
26,95449,94818,845
31,1034,556,635
4,378,597
178,038
55
103,903―
7,237
49,757
1,145
2,509
4,748
23,25911,471
2,051(24)¥ 325,808
101,0746,494,813
5,761,206
10,000723,60728,12942,86622,47820,387
4,887,413
4,733,409
154,00365
60,8192,040―
57,839
233
2,400
1,753
22,41912,28628(39)$ 1,462,008
665,649
90,151,221
79,008,425―
11,142,796
328,153
608,085
229,426
378,659
55,474,017
53,306,518
2,167,499
676
1,264,954―
88,113605,760
13,94030,54857,806283,171
139,653
24,974(298)

12,419,439

12,039,952

151,198,430

13,257
5,437
6,803
858
157
24,391
24,05665269
225,481
19,106
166,277
4,885
13,376
1,475
9,384
14,380(3,404)

14,235
6,215
6,416
1,209
393
23,72923,37384271
221,383
24,574
138,567―
13,565
1,934
31,93914,177(3,374)

161,402
66,201
82,82810,455
1,918
296,956
292,869800
3,287
2,745,091
232,6102,024,314
59,474
162,848
17,963
114,250
175,079(41,447)

Millions of yen
2012

263,131¥

12,682,570¥

259,3483,203,449

12,299,300$ 154,401,879

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—12

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheetsー(Continued)
Millions of yen
2012

As of March 31,

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
Securities: Fail to Receive
Variation Margin Received
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
Other Current Liabilities¥ 4,129,564
3,286,020
843,543
230,594
15,5591,927
13,631
2,821,691
1,271,673
1,550,017
54,60383,003――3,547,031
333,300
46,755
332
533
2,784
20,918
631
3,803
373
7,149

Total Current Liabilities
Fixed Liabilities
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¥¥

Thousands of
U.S. dollars
2012

2011

3,791,467
3,184,530
606,936
144,389
23,083
9,889
13,193
2,425,765
1,750,751
675,01363,31863,136
1,884
4,939
3,745,572
484,100
31,970
608
393
1,050
19,279
768
6,050
440
1,041

$

50,274,707
40,005,121
10,269,586
2,807,332
189,427
23,467
165,960
34,352,223
15,481,786
18,870,437
664,765
1,010,507――
43,182,754
4,057,706
569,212
4,054
6,495
33,894
254,663
7,692
46,305
4,551
87,046

11,298,630

10,809,261

137,553,333

376,885
349,400
228,500
147
11,471
1,251

390,642405,343
194,100
505
13,206
1,268

4,588,328
4,253,713
2,781,836
1,802
139,658
15,236967,656

1,005,065

11,780,573

1,013

1,173

12,337

1,013

1,173

12,337

12,267,300

13—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries¥

11,815,500$

149,346,243

Non-Consolidated Balance Sheetsー(Continued)

2011

Thousands of
U.S. dollars
2012¥ 125,167¥ 125,167$ 1,523,829

380,194
23,069403,264

380,194
31,171
411,366

4,628,620
280,858
4,909,478(117,433)(117,433)―
410,998(51,032)(51,032)(7,367)478,134(1,429,671)(1,429,671)―
5,003,636

3,119
1,151
4,271
―
415,269
12,682,570

2,935
2,147
5,083
582
483,800
12,299,300

37,982
14,01852,000―5,055,636
154,401,879

Millions of yen
2012

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 Stock
Total Shareholder's Equity
Valuation and Translation Adjustments
Valuation and Translation Adjustments of Other Securities
Net Deferred Hedge Gains (Losses), net of Taxes
Total Valuation and Translation Adjustments
Stock Subscription Rights
Total Net Assets
Total Net Assets and Liabilities

¥

¥

$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries—14

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Statements of Income

For the Fiscal Years 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, andCommissions 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
Financial Expenses
Net Operating Revenues
Selling, General and Administrative Expenses
Transaction Expenses
Personnel Expenses
Real Estate Expenses
Office Expenses
Depreciation and Amortization
Taxes and Dues
Provision for Reserves for Possible Losses on Loans
Other
Operating Income
Non-operating Revenues
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sale of Investment Securities, net
Reversal of Reserve for Financial Instruments Transaction
Liabilities
Reversal of allowance for doubtful accounts
Extraordinary loss
Loss on Disposal of Fixed Assets
Loss on Sale of Investment Securities, net
Loss on Impairment of Investment Securities
Loss on Impairment of Equity in Affiliated Companies
Loss on Valuation of Golf Club Membership
Losses on Impairment of Fixed Assets
Special Retirement Payment
Merger Expenses
Extraordinary Depreciation Expenses
Cumulative Effect of Adoption of Accounting Standard for Asset
Retirement Obligations
Loss on Cancellation of System Agreement
Income (Loss) before Income Taxes
Total Income Taxes
Adjustment Amount for Income Taxes
Income Taxes
Net Income (Loss)

2011

Thousands of
U.S. dollars
2012¥ 82,351
12,921¥ 107,690
20,967$ 1,002,572
157,312

16,20627,540

197,307

24,92428,29821,857(4,142)50,172150,238
30,353
119,884
151,971
25,60960,72724,15022,53813,299
1,892
14
3,738
(32,086)
5,599
998(27,484)
2,010
1,850

26,002
33,17937,782(1,146)49,365
193,692
31,136
162,556
173,380
31,481
66,60825,01426,964
16,742
2,307
―
4,262
(10,824)
2,528
97(8,393)
1,311
609

303,441
344,512266,101(50,429)
610,811
1,829,055
369,538
1,459,517
1,850,148
311,780739,320
294,010274,394
161,914
23,038174
45,518(390,631)
68,171
12,151(334,611)
24,474
22,524160―
16,430
1,070
1,082
72
1,821
14
512
10,549
1,307
―

687
14
90,113
660
433
1,073
85,832
57
―
―
―
1,626

1,950
―
200,036
13,03813,173886
22,176173
6,234
128,435
15,921―――(41,905)137
24,357
24,495¥ (66,400)

36
392(97,196)120(5,103)(4,983)(92,212)――(510,173)
1,673
296,542
298,215(808,388)

Millions of yen
2012¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥82.14=US$1.00, the foreign exchange rate on March 31, 2012, has been used for translation.

15—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries$

Status of Capital Adequacy
Capital Adequacy Ratio Highlights

1

Status of Mizuho Financial Group's Consolidated
Capital Adequacy

3

Scope of Consolidation

3

Consolidated Capital Adequacy Ratio

5

Risk-Based Capital

7

Credit Risk

24

Methods for Credit Risk Mitigation

39

Counterparty Risk in Derivatives Transactionsand Long-Settlement Transactions

40

Securitization Exposure

43

Market Risk

64

Operational Risk

64

Equity Exposure in Banking Book

64

Compensation of Directors, Corporate Auditorsand Employees

66

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 to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters
Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc.
pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law(Ministry of Finance Ordinance No. 10 of 1982)” (FSA Notice No. 15 of 2007).
As a method to calculate the amount of credit risk-weighted assets under the Basel II Framework, we have adopted theadvanced internal ratings-based approach. In addition, as a method to calculate the amount equivalent to the operationalrisk, we have adopted the advanced measurement approach.

■ Capital Adequacy Ratio Highlights
Mizuho Financial Group (Consolidated)
As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets

2012

Billions of yen
2011

15.50%
12.76%

15.30%
11.93%¥6,398.9
1,745.1
368.9¥7,775.0¥50,144.9¥6,170.2
2,103.4
362.6¥7,910.9¥51,693.8

2012

Billions of yen
2011

17.83%
15.87%¥4,430.8
682.8
137.2
¥4,976.4¥27,910.1

18.80%
16.10%¥4,528.8
881.2
122.9
¥5,287.1¥28,121.6

2012

Billions of yen
2011

20.19%
16.34%¥4,135.2
1,013.5
41.3¥5,107.4¥25,296.0

20.34%
15.82%¥4,053.6
1,214.8
57.0¥5,211.5¥25,617.3(Reference)
Mizuho Corporate Bank (Consolidated)
As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets
Mizuho Corporate Bank (Non-Consolidated)
As of March 31,

Non-consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets

1—Status of Capital AdequacyMizuho Bank (Consolidated)
As of March 31,

Consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets(Reference) Consolidated Capital Adequacy Ratio (BIS Standard)

2012

Billions of yen
2011

15.52%
11.39%¥2,428.1
977.6
98.9¥3,306.8¥21,299.9
15.46%

14.91%
10.38%¥2,374.7
1,129.5
93.4¥3,410.8¥22,868.8
14.60%

2012

Billions of yen
2011

15.62%
11.51%¥2,379.6
978.7
131.0
¥3,227.2¥20,656.9
15.47%

15.02%
10.54%¥2,329.4
1,129.4
140.6¥3,318.1¥22,091.2
14.68%

2012

Billions of yen
2011

18.26%
14.02%¥334.5103.5
2.4¥435.7¥2,386.0

16.34%
12.11%¥296.8110.8
7.2¥400.4¥2,449.6

2012

Billions of yen
2011

18.42%
14.13%¥332.4103.1
2.3¥433.1¥2,351.6

16.54%
12.28%¥296.3110.3
7.4¥399.1¥2,412.3

Mizuho Bank (Non-Consolidated)
As of March 31,

Non-Consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets(Reference) Non-Consolidated Capital Adequacy Ratio (BIS Standard)

Mizuho Trust & Banking (Consolidated)
As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets
Mizuho Trust & Banking (Non-Consolidated)
As of March 31,

Non-Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk-weighted Assets

Status of Capital Adequacy—2

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Scope of Consolidation(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation
Rules for Preparation of Consolidated Financial Statements
None as of March 31, 2012 and 2011.

(b) Number of Consolidated Subsidiaries
As of March 31,

2012

2011

Consolidated Subsidiaries

149

152

Our major consolidated subsidiaries are Mizuho Corporate Bank, Ltd., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd.
and Mizuho Securities Co., Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2012:

Name

Country ofOrganization

Main Business

Domestic
Mizuho Corporate Bank, Ltd. ............................. Japan
Mizuho Bank, Ltd. .............................................. Japan
Mizuho Trust & Banking Co., Ltd........................ Japan
Mizuho Securities Co., Ltd. ................................ Japan
Mizuho Investors Securities Co., Ltd.................. Japan
Trust & Custody Services Bank, Ltd. ................. Japan
Mizuho Asset Management Co., Ltd. ................ Japan
Mizuho Research Institute Ltd. .......................... Japan
Mizuho Information & Research Institute Inc. .... Japan
Mizuho Financial Strategy Co., Ltd. .................. Japan
Mizuho Private Wealth Management Co., Ltd. .. Japan
Mizuho Factors, Limited .................................... Japan
Mizuho Credit Guarantee Co., Ltd. .................... Japan
Mizuho Capital Co., Ltd...................................... Japan
Defined Contribution Plan Services Co., Ltd. ..... Japan
Overseas

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 business

Mizuho Bank (Switzerland) Ltd ......................... Switzerland
Mizuho Capital Markets Corporation ................ U.S.A.
Mizuho Corporate Bank (China), Ltd. ............... China
Mizuho Corporate Bank (USA) ......................... U.S.A.
Mizuho Corporate Bank Nederland N.V. .......... Netherlands
Mizuho International plc ................................... U.K.
Mizuho Securities USA Inc. .............................. U.S.A.
Luxembourg
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Trust & Banking Co. (USA) .................. U.S.A.
PT. Bank Mizuho Indonesia .............................. Indonesia

Trust and banking
Derivatives
Banking
Banking
Banking and securities
Securities and banking
Securities
Trust and banking
Trust and banking
Banking

Proportionof Ownership
Interest (%)

Proportionof VotingInterest (%)

100.0%
100.0
100.0
94.7
100.0
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
50.0
60.0

100.0%
100.0
100.0
94.7
100.0
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
50.0
60.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

Note: In September 2011, Mizuho Securities, Mizuho Investors Securities and Mizuho Trust & Banking became wholly-owned subsidiaries through stock-for
stock exchanges, and all three companies, formerly listed on the Tokyo Stock Exchange and other financial instrument exchanges, were delisted.

3—Status of Capital Adequacy

(c) Corporations Providing Financial Services for which Article 9 of the Consolidated Capital Adequacy
Ratio Notice is Applicable
None as of March 31, 2012 and 2011.

(d) Related Companies for which Deductions Set Forth in Article 8, Paragraph 1, Item 2, Subsections 1
to 3 of the Consolidated Capital Adequacy Ratio Notice are Applicable
None as of March 31, 2012 and 2011.

(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, 2012 and 2011.

(f) Restrictions on Transfer of Funds or Capital within the Holding Company’s Corporate Group
None as of March 31, 2012 and 2011.

Status of Capital Adequacy—4

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Consolidated Capital Adequacy Ratio(2) Summary Table of Consolidated Capital Adequacy Ratio (BIS Standard)%, Billions of yen
As of March31,

2012

2011

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
Tier 1 CapitalPreferred 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 (Totalof the Above Items)
Deduction for Deferred Tax Assets
Total
(A)
Preferred Securities with a Step-up Interest Rate Provision(B)
Ratio to Tier 1 = (B) / (A) × 100
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
Tier 2 Capital
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(C)
Short-term Subordinated Debt
Tier 3 Capital
Tier 3 Capital Included as Qualifying Capital(D)
Deductions for Total Risk-based Capital(E)
Total Risk-based Capital (A)+(C)+(D)-(E)(F)
Credit Risk-weighted Assets(G)On-balance-sheet Items
Off-balance-sheet Items
Market Risk Equivalent Assets [(I)/8%](H)
Risk(Reference) Market Risk Equivalent(I)weighted
Operational Risk Equivalent Assets [(K)/8%](J)
Assets(Reference) Operational Risk Equivalent(K)
Adjusted Amount for Credit Risk-weighted Assets(L)
Adjusted Amount for Operational Risk Equivalent(M)¥2,254.9――
1,109.7
1,405.4
7.0
―
76.3
―
(102.8)2.1
1,941.4
1,859.6
60.5
38.3
4.5

¥2,181.3――
937.6
1,132.3
3.1
―
140.0
7.0
(103.9)2.7
2,269.6
1,919.8
1.9
38.9
5.4

25.0

52.9

6,398.9―
6,398.9
524.0
8.18%
45.1
102.5
4.2

6,170.2―
6,170.2
524.0
8.49%
―
106.2
4.9

―
1,593.2
262.6
1,330.6
1,745.1
1,745.1――
368.9¥7,775.0
45,144.4
37,640.5
7,503.9
2,083.3
166.6
2,917.1
233.3
―
―

―
1,992.2
343.6
1,648.6
2,103.4
2,103.4――
362.6¥7,910.9
46,997.1
38,958.0
8,039.0
1,389.2
111.1
3,307.4
264.5――

Total (G) + (H) + (J) + (L) +(M)Consolidated Capital Adequacy Ratio (BIS Standard) = (F) / (N) × 100
Tier 1 Capital Ratio = (A) / (N) × 100¥50,144.9
15.50%
12.76%¥51,693.8
15.30%
11.93%

5—Status of Capital Adequacy(N)Notes: 1. The above figures are calculated based on the BIS standard applied on a consolidated basis under the “Standards for Determining the Status ofCapital 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, 2012 and 2011, we did not apply the exception to the Notice (FSA NoticeNo. 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, non-cumulative
perpetual preferred stock is not 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
Practical Guideline No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on
our consolidated financial statements. This consists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC
on a portion of the internal control structure concerning the calculation of 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, 2012 and 2011 were ¥340.7 billion and ¥471.1 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, 2012 and 2011 were ¥1,279.7 billion and ¥1,234.0 billion, respectively.
5. 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) theexcess, 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.

Status of Capital Adequacy—6

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■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 for the purposes of our consolidated capital adequacy ratios. The preferred securities issued by Mizuho Preferred
Capital (Cayman) 1 Limited were redeemed in full on June 29, 2012.
Preferred securities issued by SPCs of Mizuho Financial Group
IssuerMizuho Preferred Capital (Cayman) 1 Limited (as“MPC1,” and the preferred securities described
below are referred to as the “MPC1 Preferred
Securities.”)
Type ofNon-cumulative perpetual preferred securities
securities
Mandatory
Noneredemption
date
Optional
Optionally redeemable on each dividend
redemption
payment date falling in or after June 2012(subject to prior approval from regulatory
authorities)

Mizuho Capital Investment (USD) 1 Limited(“MCI (USD) 1,” and the preferred securities
described below are referred to as “MCI (USD) 1
Preferred Securities.”)Non-cumulative perpetual preferred securities
None

Dividends

Floating dividend rate (No dividend rate step-up.
As stated in “Dividend suspension events”
below, dividend payments that are suspended
are non-cumulative.)

Dividend
payment date
Total amountissuedIssue date

Last business day of June in each year

Starting from the dividend payment date falling in
June 2016, optionally redeemable on eachdividend payment date in five-year intervals(subject to prior approval from regulatory
authorities)
Fixed dividend rate for the first ten years(although a floating dividend rate is applied withrespect to dividend payment dates after June
2016. No dividend rate step-up. Dividend
payments that are suspended are noncumulative.)thJune 30th and December 30 of each year

¥171.0 billion

US$600 million

February 14, 2002

March 13, 2006

7—Status of Capital Adequacy

Dividendsuspension
eventsIf any of the following events arise, dividend
payments are suspended on a non-cumulativebasis:(1) when Mizuho Financial Group issues to MPC(1)
1 a Loss Absorption Certificate ;(2) when dividends on Mizuho Financial Group’s(2)Preferred Stock are suspended;(3) when Mizuho Financial Group issues to MPC
1 a Distributable Amounts Limitation(4)
Certificate stating that there are no(3)
Available Distributable Amounts ; and(4) when the dividend payment date is not a(5)
Mandatory Dividend Payment Date , andMizuho Financial Group issues to MPC 1 a
dividend 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(6)
securities in June of the calendar year in whichsuch fiscal year ends. However, it is subject tothe following conditions: (1) no Loss Absorption(1)
Certificate has been issued; (2) no preferredstock dividend limitation has arisen with respect
thereto (partial dividend payments are made to
the extent applicable); and (3) no Distributable(4)
Amounts Limitation Certificate has been issued
with respect thereto (partial dividends are paid tothe extent applicable).
When Mizuho Financial Group issues a(4)Distributable Amounts Limitation Certificate to
MPC1, dividends are limited to the Available(3)
Distributable Amounts .
When dividends on Mizuho Financial Group’s(2)Preferred Stock are reduced, dividends on(6)
Parity Preferred Securities are also reduced byan equal percentage.
Same priority as Mizuho Financial Group’s(2)Preferred Stock

Distributableamounts
limitation
Dividend
limitations

Claims on
residualassets(Mandatory dividend suspension or reduction
event)(7)(1) When a Liquidation Event , Reorganization(7)(9)
Event , Insolvency Event or Governmental
Action(10) has occurred to Mizuho Financial
Group;(2) when Mizuho Financial Group’s Available(11)
Distributable Amounts is insufficient, or(12)
dividends on its preferred stock aresuspended 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 paymentson the MCI (USD) 1 Preferred Securities, andMizuho Financial Group issues a dividend
suspension notice to MCI (USD) 1; and(4) when Mizuho Financial Group fails to pay
dividends on its common stock and issues adividend suspension notice to MCI (USD) 1.
If Mizuho Financial Group pays any dividends on
its common stock with respect to a fiscal year,
dividend payments for the full amount of MCI(USD) 1 Preferred Securities must be made on
the dividend payment dates during thesubsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred and that nodividend suspension notice has been issued inconjunction with the occurrence of an optional
dividend suspension or reduction event.

Dividends for the MCI (USD) 1 Preferred
Securities are paid to the extent of Mizuho
Financial Group’s Available Distributable
Amounts(11).
When dividends on Mizuho Financial Group’s
Preferred Stock(12) are reduced, dividends on
MCI (USD) 1 Preferred Securities are also
reduced by an equal percentage.
Same priority as Mizuho Financial Group’s
Preferred Stock(12)Status of Capital Adequacy—8

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

IssuerType ofsecurities
Mandatory
redemption
date
Optional
redemption

Dividends

Dividend
payment date
Total amountissuedIssue date

9—Status of Capital Adequacy

Mizuho Capital Investment(JPY) 1 Limited (“MCI (JPY)
1,” and the preferred
securities described below
are referred to as “MCI (JPY)
1 Preferred Securities.”)Non-cumulative perpetual
preferred securities
None

Mizuho Capital Investment(JPY) 2 Limited (“MCI (JPY)2,” and the preferred
securities described below
are referred to as “MCI (JPY)
2 Preferred Securities.”)Non-cumulative perpetual
preferred securities
None

Mizuho Capital Investment (JPY) 3
Limited (“MCI (JPY) 3,” and thepreferred securities described
below (Series A and Series B) arecollectively referred to as “MCI(JPY) 3 Preferred Securities.”)Non-cumulative perpetual preferred
securities
None

Starting from the dividend
payment date falling in June
2016, optionally redeemableon each dividend payment
date in five -year intervals(subject to prior approval
from regulatory authorities)
Fixed dividend rate for the
first ten years (although afloating dividend rate isapplied with respect todividend payment dates afterJune 2016. No dividend rate
step-up. Dividend
payments that aresuspended are noncumulative.)

Starting from the dividend
payment date falling in June
2018, optionally redeemableon each dividend payment
date (subject to priorapproval from regulatory
authorities)
Fixed dividend rate for the
first ten years (although afloating dividend rate isapplied with respect todividend payment dates afterJune 2018. Dividend rate
step-up is applied. Dividend
payments that aresuspended are noncumulative.)

Starting from the dividend payment
date falling in June 2019, optionallyredeemable on each dividend
payment date (subject to priorapproval from regulatory
authorities)

June 30th and December
30th of each year
¥400 billion

June 30th and December
30th of each year
¥274.5 billion

January 12, 2007

January 11, 2008

Series A
Fixed dividend rate for the first ten
years (although a floating dividendrate is applied with respect todividend payment dates after June
2019. Dividend rate step-up isapplied. Dividend payments thatare suspended are non-cumulative.)
Series B
Fixed dividend rate for the first ten
years (although a floating dividendrate is applied with respect todividend payment dates after June
2019. No dividend rate step-up.
Dividend payments that aresuspended are non-cumulative.)
June 30th and December 30th ofeach year
Series A ¥249.5 billion
Series B ¥53.5 billion
July 11, 2008

Dividendsuspension
events(Mandatory dividend
suspension or reduction
event)(1) When a Liquidation(7)
Event , Reorganization
Event(8), Insolvency(9)
Event or Governmental(10)
Action has occurred toMizuho Financial Group;(2) when Mizuho Financial
Group’s Available(13)
Distributable Amounts
is insufficient, or dividends(12)
on its preferred stock
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 meetthe minimum requirement,
or would fall short as aresult of the dividend
payments on the MCI(JPY) 1 Preferred
Securities and whenMizuho Financial Groupissues a dividend
suspension notice to MCI(JPY) 1; and(4) when Mizuho Financial
Group fails to pay
dividends on its common
stock and issues adividend suspension
notice to MCI (JPY) 1(Mandatory dividend
suspension or reduction
event)(1) When a Liquidation(7)
Event , Reorganization
Event(8), Insolvency(9)
Event or Governmental(10)
Action has occurred toMizuho Financial Group;(2) when Mizuho Financial
Group’s Available(14)
Distributable Amounts
is insufficient, or dividends(12)
on its preferred stock
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 meetthe minimum requirement,
or would fall short as aresult of the dividend
payments on the MCI(JPY) 2 Preferred
Securities and whenMizuho Financial Groupissues a dividend
suspension notice to MCI(JPY) 2; and(4) when Mizuho Financial
Group fails to pay
dividends on its common
stock and issues adividend suspension
notice to MCI (JPY) 2(Mandatory dividend suspension or
reduction event)(7)(1) When a Liquidation Event ,(8)
Reorganization Event ,Insolvency Event(9) or
Governmental Action(10) has
occurred to Mizuho Financial
Group;(2) when Mizuho Financial Group’s
Available Distributable(15)
Amounts is insufficient, or
dividends on its preferred(12)
stock are suspended or
reduced;(Optional dividend suspension or
reduction event)(3) when the capital adequacy ratioof Mizuho Financial Group or its
Tier 1 capital ratio fails to meetthe minimum requirement, or
would fall short as a result of thedividend payments on the MCI(JPY) 3 Preferred Securities andwhen Mizuho Financial Groupissues a dividend suspension
notice to MCI (JPY) 3; and(4) when Mizuho Financial Groupfails to pay dividends on its
common stock and issues adividend suspension notice to
MCI (JPY) 3

Status of Capital Adequacy—10

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Mandatory
dividend
event

Distributableamounts
limitation

Dividend
limitations

Claims forresidualassetsIf Mizuho Financial Grouppays any dividends on its
common stock to holders ofrecord as of a prescribedrecord date in theimmediately preceding fiscal
year, dividend payments forthe full amount of MCI (JPY)
1 Preferred Securities must
be made on dividend
payment dates during thesubsequent fiscal year;
provided thatno event for the mandatory
suspension or reduction ofdividends has occurred andthat no dividend suspension
notice has been issued inconjunction with theoccurrence of an optional
dividend suspension or
reduction event.
Dividends for the MCI (JPY)
1 Preferred Securities arepaid to the extent of Mizuho
Financial Group’s Available(13)
Distributable Amounts .
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced,
dividends on MCI (JPY) 1
Preferred Securities are also
reduced by an equal
percentage.
Same priority as Mizuho
Financial Group’s Preferred
(12)
Stock

11—Status of Capital Adequacy

If Mizuho Financial Grouppays any dividends on its
common stock to holders ofrecord as of a prescribedrecord date in theimmediately preceding fiscal
year, dividend payments forthe full amount of MCI (JPY)
2 Preferred Securities must
be made on dividend
payment dates during thesubsequent fiscal year;
provided thatno event for the mandatory
suspension or reduction ofdividends has occurred andthat no dividend suspension
notice has been issued inconjunction with theoccurrence of an optional
dividend suspension or
reduction event.
Dividends for the MCI (JPY)
2 Preferred Securities arepaid to the extent of Mizuho
Financial Group’s Available
Distributable Amounts(14).
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced,
dividends on MCI (JPY) 2
Preferred Securities are also
reduced by an equal
percentage.
Same priority as Mizuho
Financial Group’s Preferred
Stock(12)If Mizuho Financial Group pays any
dividends on its common stock toholders of record as of a prescribedrecord 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 ofdividends has occurred and that nodividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

Dividends for the MCI (JPY) 3
Preferred Securities are paid to theextent of Mizuho Financial Group’s
Available Distributable Amounts(15).
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced, dividends on
MCI (JPY) 3 Preferred Securities
are also reduced by an equal
percentage.
Same priority as Mizuho Financial
Group’s Preferred Stock(12)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.”)

Type ofsecurities

Non-cumulative perpetual
preferred securities

Non-cumulative perpetual
preferred securities

Mizuho Capital Investment(JPY) 5 Limited (“MCI (JPY) 5,”
and the preferred securities
described below (Series A,
Series B and Series C) arecollectively referred to as “MCI(JPY) 5 Preferred Securities.”)Non-cumulative perpetual
preferred securities

Mandatory
redemption
date
Optional
redemption

None

None

None

Starting from the dividend
payment date falling in June
2015, optionally redeemable oneach dividend payment date
(subject to prior approval from
regulatory authorities)

Starting from the dividend
payment date falling in June
2014, optionally redeemable oneach dividend payment date
(subject to prior approval from
regulatory authorities)

Series A
Starting from the dividend
payment date falling in June
2014, optionally redeemable oneach dividend payment date
(subject to prior approval from
regulatory authorities)
Series B
Starting from the dividend
payment date falling in June
2015, optionally redeemable oneach dividend payment date
(subject to prior approval from
regulatory authorities)
Series C
Starting from the dividend
payment date falling in June
2015, optionally redeemable oneach dividend payment date
(subject to prior approval from
regulatory authorities)

Status of Capital Adequacy—12

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Dividends

Fixed dividend rate for the firstseven years (although a floating
dividend rate is applied withrespect 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 is applied withrespect to dividend payment
dates after June 2014. No
dividend rate step-up. Dividend
payments that are suspended
are non-cumulative.)

Series A
Fixed dividend rate for the first
five years (although a floating
dividend rate is applied withrespect 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 firstsix years (although a floating
dividend rate is applied withrespect to dividend payment
dates after June 2015. No
dividend rate step-up.
Dividend payments that aresuspended are non-cumulative.)

Dividend
paymentdate
Total
amountissuedIssue date

March 31, 2009 and June 30thand December 30th of eachyear¥355 billion

June 30th and December 30thof each year

December 29, 2008

February 27, 2009

13—Status of Capital Adequacy$850 million

Series C
Fixed dividend rate for the firstsix years (although a floating
dividend rate is applied withrespect to dividend payment
dates after June 2015. No
dividend rate step-up.
Dividend payments that aresuspended are non-cumulative.)
June 30th and December 30thof each year
Series A ¥139.5 billion
Series B ¥72.5 billion
Series C ¥25.0 billion
Series A June 30, 2009
Series B August 31, 2009
Series C September 29, 2009

Dividendsuspension
eventsMandatory
dividend
event(Mandatory dividend
suspension or reduction event)(7)(1) When a Liquidation Event ,(8)
Reorganization Event ,Insolvency Event(9) or
Governmental Action(10) has
occurred to Mizuho Financial
Group;(2) when Mizuho Financial
Group’s Available(16)
Distributable Amounts is
insufficient, or dividends on(12)
its preferred stock aresuspended or reduced;(Optional dividend suspension
or reduction event)(3) when the capital adequacy
ratio of Mizuho Financial
Group or its Tier 1 capitalratio fails to meet theminimum requirement, or
would fall short as a result of
the dividend payments on
the MCI (JPY) 4 Preferred
Securities and when Mizuho
Financial Group issues adividend suspension noticeto 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
If Mizuho Financial Group pays
any dividends on its common
stock to holders of record as ofa prescribed record date in theimmediately preceding fiscal
year, dividend payments for thefull amount of MCI (JPY) 4
Preferred Securities must be
made on dividend payment
dates during the subsequentfiscal year; provided thatno event for the mandatory
suspension or reduction ofdividends has occurred and thatno dividend suspension notice
has been issued in conjunction
with the occurrence of an
optional dividend suspension or
reduction event.

(Mandatory dividend
suspension or reduction event)(7)(1) When a Liquidation Event ,(8)
Reorganization Event ,Insolvency Event(9) or
Governmental Action(10) has
occurred to Mizuho Financial
Group;(2) when Mizuho Financial
Group’s Available(17)
Distributable Amounts is
insufficient, or dividends on(12)
its preferred stock aresuspended or reduced;(Optional dividend suspension
or reduction event)(3) when the capital adequacy
ratio of Mizuho Financial
Group or its Tier 1 capitalratio fails to meet theminimum requirement, or
would fall short as a result of
the dividend payments on
the MCI (USD) 2 Preferred
Securities and when Mizuho
Financial Group issues adividend suspension noticeto 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
If Mizuho Financial Group pays
any dividends on its common
stock to holders of record as ofa prescribed record date in theimmediately preceding fiscal
year, dividend payments for thefull amount of MCI (USD) 2
Preferred Securities must be
made on dividend payment
dates during the subsequentfiscal year; provided thatno event for the mandatory
suspension or reduction ofdividends has occurred and thatno dividend suspension notice
has been issued in conjunction
with the occurrence of an
optional dividend suspension or
reduction event.

(Mandatory dividend
suspension or reduction event)(7)(1) When a Liquidation Event ,(8)
Reorganization Event ,Insolvency Event(9) or
Governmental Action(10) has
occurred to Mizuho Financial
Group;(2) when Mizuho Financial
Group’s Available(18)
Distributable Amounts is
insufficient, or dividends on(12)
its preferred stock aresuspended or reduced;(Optional dividend suspension
or reduction event)(3) when the capital adequacy
ratio of Mizuho Financial
Group or its Tier 1 capitalratio fails to meet theminimum requirement, or
would fall short as a result of
the dividend payments on
the MCI (JPY) 5 Preferred
Securities and when Mizuho
Financial Group issues adividend suspension noticeto 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
If Mizuho Financial Group pays
any dividends on its common
stock to holders of record as ofa prescribed record date in theimmediately preceding fiscal
year, dividend payments for thefull amount of MCI (JPY) 5Preferred Securities must be
made on dividend payment
dates during the subsequentfiscal year; provided thatno event for the mandatory
suspension or reduction ofdividends has occurred and thatno dividend suspension notice
has been issued in conjunction
with the occurrence of an
optional dividend suspension or
reduction event.

Status of Capital Adequacy—14

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Distributableamounts
limitation

Dividend
limitations

Claims forresidualassetsDividends for the MCI (JPY) 4
Preferred Securities are paid tothe extent of Mizuho Financial
Group’s Available Distributable(16)
Amounts .
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced, dividends
on MCI (JPY) 4 Preferred
Securities are also reduced byan equal percentage.
Same priority as Mizuho
Financial Group’s Preferred
(12)
Stock

Dividends for the MCI (USD) 2
Preferred Securities are paid tothe extent of Mizuho Financial
Group’s Available Distributable
Amounts(17).
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced, dividends
on MCI (USD) 2 Preferred
Securities are also reduced byan equal percentage.
Same priority as Mizuho
Financial Group’s Preferred
Stock(12)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, theissuance thereof is at our discretion) upon any of the following eventswith respect to Mizuho Financial Group: (i) liquidation event that shall bedeemed to occur where a liquidation proceeding is commenced by oragainst Mizuho Financial Group or a competent court in Japan shallhave (a) adjudicated Mizuho Financial Group to be subject to bankruptcy
proceedings or (b) approved a preparation of a reorganization 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 have adjudicated (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 tooccur 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 publicmanagement or (d) issues an order that Mizuho Financial Group betransferred to a third party; (iv) inadequate ratio event that shall bedeemed to occur if capital adequacy ratio or Tier 1 capital ratio fails tomeet the minimum requirement or would fall short as a result of adividend payment on the relevant preferred securities; (v) default eventthat shall be deemed to occur if Mizuho Financial Group is not able topay its debts as they become due or would not be able to do so as aresult of a dividend 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 aresult 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 ofMizuho Financial Group as to dividend payments. It includes suchpreferred 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 each interim dividend payment on Preferred Stock to be
paid during such current Fiscal Year shall be excluded in calculating
Available Distributable Amounts). Notwithstanding the foregoing, if there
are securities issued by a company other than Mizuho Financial Groupof which the rights to dividends and the rights at the time of liquidation,etc., are determined by reference to the financial condition and results ofoperation of Mizuho Financial Group and which rank, in relation to MPC1,

15—Status of Capital Adequacy

Dividends for the MCI (JPY) 5Preferred Securities are paid tothe extent of Mizuho Financial
Group’s Available Distributable
Amounts(18).
When dividends on Mizuho
Financial Group’s Preferred(12)
Stock are reduced, dividends
on MCI (JPY) 5 Preferred
Securities are also reduced byan equal percentage.
Same priority as Mizuho
Financial Group’s Preferred
Stock(12)equal in point of subordination as the Parity Preferred Securities(6)(“Parallel Preferred Securities”), the Available Distributable Amounts areadjusted 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 theannual general meeting of shareholders to issuers if Available
Distributable Amounts falls short of total dividends to be paid on thedividend 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 afiscal 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 thedividend 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 well as other preferred securities that satisfy theabove 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 tobankruptcy 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 haveadjudicated (i) the commencement 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 theliabilities of Mizuho Financial Group exceeds its assets or would 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 asthey become due, (ii) publicly declares Mizuho Financial Group’s
liabilities exceed its assets, (iii) publicly declares Mizuho Financial Groupto be under public management or (iv) issues an order that Mizuho
Financial Group be transferred 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof MCI (USD) 1 Preferred Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated
based on the financial statements for the immediately preceding fiscal
year, less (A) the amount of dividend payments on Preferred Stock(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (USD) 1 Preferred Securities made or declared to bemade 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 or in 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) Preferred Stocks
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1
capital and ranking most senior compared to other preferred stock ofMizuho Financial Group as to dividend payments and claims to residual
assets.
(13) 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (JPY) 1 Preferred Securities made or declared to bemade 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, pro-rated between full dividends
on MCI (JPY) 1 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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.
(14) 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (JPY) 2 Preferred Securities made or declared to bemade 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, pro-rated between full dividends
on MCI (JPY) 2 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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.
(15) 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (JPY) 3 Preferred Securities made or declared to bemade 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, pro-rated between full dividends
on MCI (JPY) 3 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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(12)(excluding interim dividend payments) and (B) the dividends on
Equivalent Securities paid or declared to be paid from April 1, 2008 toJune 30, 2008, pro-rated 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 in partor declared to be paid from the day after June 30, 2008 up to thedividend payment date falling in December 2008.
(16) 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(12)(excluding interim dividend payments) and (B) the dividends on
Equivalent Securities paid or declared to be paid from April 1, 2008 to

Status of Capital Adequacy—16

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

December 30, 2008, pro-rated between the full dividend amount on MCI(JPY) 4 Preferred Securities and the full dividend amount on preferred
securities that are equivalently subordinated in nature with MCI (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(12)(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 inwhole or in part or declared to be paid on or 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (JPY) 4 Preferred Securities made or declared to bemade 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, pro-rated between full dividends
on MCI (JPY) 4 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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.
(17) 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (USD) 2 Preferred Securities made or declared to bemade on or prior to the dividend payment date falling in June and (C) the

17—Status of Capital Adequacy

dividends on Equivalent Securities paid or declared to be paid on or prior
to the dividend payment date in June, pro-rated between full dividends
on MCI (USD) 2 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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.
(18) 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(12)(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 partor declared to be paid on or prior to the relevant dividend payment dateof 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(12)(excluding interim dividend payments), (B) the amount of dividend
payments on MCI (JPY) 5 Preferred Securities made or declared to bemade 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, pro-rated between full dividends
on MCI (JPY) 5 Preferred Securities for the dividend payment datefalling in December and full dividends on Equivalent Securities paid inwhole 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(12)(excluding interim dividend payments) and (B) the dividends on
Equivalent Securities paid or declared to be paid from April 1, 2009 toJune 30, 2009, pro-rated between full dividends on MCI (JPY) 5Preferred Securities for the dividend payment date falling in December
2009 and full dividends on Equivalent Securities paid in whole or in partor declared to be paid from the day after June 30, 2009 up to thedividend payment date falling 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.

Amount outstanding as of fiscal
year end (excluding treasury
stock)
Preferred dividend payment

Non-cumulative clause

Non-participation clause

Preferred interim dividend
payment
Distribution of residual assets

Conversion(1)requestConversion
periodConversion
price
Reset ofconversion
price

Eleventh Series Class XI
Preferred Stock¥373.6782 billion

Thirteenth Series Class XIII PreferredStock¥36.69 billion

An annual dividend payment of ¥20
per preferred share to holders ofpreferred stock in priority to dividend
payments to holders of common
stock.
In the event that all or part of thepreferred dividends are not paid
during a given fiscal year, the shortfall
is not accumulated in or beyond thefollowing fiscal year.
No distribution of surplus exceeding
the preferred dividend payment ismade to holders of preferred stock.
If an interim dividend payment ismade, ¥10 per share is to be paid inpriority to holders of common stock.
¥1,000 per preferred share is to be
paid in priority to holders of common
stock and no other distribution ofresidual assets is to be made.
From July 1, 2008 to June 30, 2016.

An annual dividend payment of ¥30
per preferred share to holders ofpreferred stock in priority to dividend
payments to holders of common
stock.
In the event that all or part of thepreferred dividends are not paid
during a given fiscal year, the shortfall
is not accumulated in or beyond thefollowing fiscal year.
No distribution of surplus exceeding
the preferred dividend payment ismade to holders of preferred stock.
If an interim dividend payment ismade, ¥15 per share is to be paid inpriority to holders of common stock.
¥1,000 per preferred share is to be
paid in priority to holders of common
stock and no other distribution ofresidual assets is to be made.

¥282.90(As of July 1, 2012)
On July 1 of each year from July 1,
2009 to July 1, 2015 (hereafter,“Conversion Price Reset Date”), in theevent the market 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 to suchmarket price (minimum: ¥282.90),
where market price is defined as theaverage 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 theConversion Price Reset Date.

n.a.
n.a.

n.a.

Status of Capital Adequacy—18

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Adjustment of
the conversion
price

Number ofshares ofcommon stock
to be provided
upon
conversion
Mandatory conversion ofpreferred stock

Adjustments to the conversion priceare to be made upon the issuance ordisposition of common stock at a pricelower than the market price and inother specified circumstances.
The number obtained by dividing (i)the total issue price of the preferredstock submitted in connection with theconversion request by the holders ofsuch preferred stock by (ii) the
conversion price.
Mizuho Financial Group shall acquireon July 1, 2016 any preferred stock in
respect of which a request for
conversion has not been made byJune 30, 2016 and deliver common
stock to the holder of such preferredstock. The number of shares ofcommon stock to be delivered is
obtained by dividing ¥1,000 by theaverage 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: ¥282.90).

Conversion clausen.a.

19—Status of Capital Adequacy

n.a.

n.a.

n.a.

On or after April 1, 2013, as
determined by a resolution of thegeneral meeting of shareholders, allor a portion of the preferred stock canbe repurchased at the conversion
price set 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 the conversion datefalls; provided, however, that if
preferred interim dividends are paid,
the conversion price per share is to be
reduced by the amount of suchinterim dividend.

Voting rights

Preferential status

The holders of preferred stock shallnot have voting rights at a general
meeting of shareholders; provided,
however, that the holders of preferredstock may have voting rights from thedate of a general meeting ofshareholders if a proposal for thepayment of preferred dividends is not
submitted to such general meeting ofshareholders, or immediately after theclosing of a general meeting ofshareholders if a proposal on thepreferred dividends is rejected at suchgeneral meeting of shareholders,
until, in either case, such time as a
resolution of a general meeting ofshareholders for the payment ofpreferred dividends is approved.
All classes of preferred stock rank paripassu with respect to preferred
dividends, preferred interim dividends
and residual assets.

The holders of preferred stock shallnot have voting rights at a general
meeting of shareholders; provided,
however, that the holders of preferredstock may have voting rights from thedate of a general meeting ofshareholders if a proposal for thepayment of preferred dividends is not
submitted to such general meeting ofshareholders, or immediately after theclosing of a general meeting ofshareholders if a proposal on thepreferred dividends is rejected at suchgeneral meeting of shareholders,
until, in either case, such time as a
resolution of a general meeting ofshareholders for the payment ofpreferred dividends is approved.
All classes of preferred stock rank paripassu with respect to preferred
dividends, preferred interim dividends
and residual assets.

(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 withsubordination clause (corporate bonds with subordination clause) or subordinated loans (borrowing by means of loan
agreement with subordination clause) (collectively, “Subordinated Bonds, Etc.”). Specifically, such debt capital is raised asfollows:(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 andsupervisory guidelines of the Financial Services Agency so as to ensure eligibility as Tier 2 capital, and the following is thesummary of such terms as of July 1, 2012.
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
subordination arise, payments of principal and interest on the relevant Subordinated Bonds, Etc., are ranked lower inpriority compared to the execution of obligations relating to more senior claims which are obligations other than those thatrank pari passu or junior to such 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.

Status of Capital Adequacy—20

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

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 amountequal to or in excess 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
more than five years.
In the case of both perpetual subordinated debt and dated subordinated debt, if a step-up in interest is provided for, theapplication of such step-up must be made at a time five years or more from the issue or loan date so as to prevent theinterest 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 thefollowing 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 to match the increase in risk-weighted assets acquired for growth, in addition to maintaining risk-based capital thatexceeds the minimum requirements (8% under BIS standards, 4% under domestic standards).
Balancing Risk and CapitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc., within thebounds of our capital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for ourrisk profile. When making 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 haveon our capital.

21—Status of Capital Adequacy

(5) Required Capital by Portfolio Classification
Billions of yen
2011

2012
As of March 31,

Credit Risk
Internal Ratings-based Approach
Corporate (except Specialized Lending)Corporate (Specialized Lending)
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loan
Other Retail
Equities
PD/LGD Approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)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
Basic Indicator Approach
Total Required Capital (Consolidated)
Notes:

EAD

Required
CapitalEAD

Required
Capital¥171,425.4
163,265.5
51,022.9
2,407.6
77,555.3
5,521.7
13,652.5
10,529.9346.3
2,776.2
3,357.6
964.4
274.2
―
2,118.8
1,261.8
1,834.9
3,818.1
2,832.6
8,159.8
4,273.0
1,159.0
2,064.2
―
37.0
626.5
/
/
/
/
/
/
/
/
/
/
/
¥/

¥4,733.5
4,482.3
2,517.0
242.5
63.1
123.1
623.7
418.2
31.0
174.4
353.0
97.7
75.6
―
179.6
270.5
54.2
74.0
160.8
251.2
4.2
24.1
164.5
―
24.4
33.7
166.6
68.4
38.5
22.2
4.2
3.3
―
98.2
233.3
192.5
40.8
¥4,011.5¥168,629.5
160,055.2
49,049.3
2,615.8
74,995.2
5,073.8
13,885.2
10,774.8
350.4
2,759.9
3,530.3
1,037.1
285.3―
2,207.9
1,035.1
1,929.8
4,422.1
3,518.1
8,574.3
4,664.3
1,250.4
2,038.9
0.0
39.4
581.1
/
/
/
/
/
/
/
/
/
/
/
¥/

¥5,084.9
4,834.2
2,690.6
326.0
53.8
134.4
665.1
447.5
33.3
184.2
375.5
109.9
78.3
―
187.2
255.5
68.7
89.6
174.7
250.6
3.3
24.5
157.5
0.0
30.1
35.1
111.1
84.5
49.8
26.1
4.3
4.2
―
26.6
264.5
218.5
46.0
¥4,135.5

1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deductions 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)Credits to corporations and sole proprietors (excluding credits to retail customers)

Corporate (specialized
lending)

Credits which limit interest and principal repayment sources to cash flow derived from specific real estate,chattel, businesses, etc, including real estate non-recourse loan, ship finance and project finance, etc.

Status of Capital Adequacy—22

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

SovereignCredits to central governments, central banks and local governmental entities

Bank

Credits to banks and securities companies, etc.

RetailHousing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual
consumer loans and loans to business enterprises with total credit amount of less than ¥100 million, etc. (otherretail).

Equities

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” and having a “senior/subordinated structure,” etc. (excluding
specialized lending).

7. EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible
losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs.

23—Status of Capital Adequacy

■ Credit Risk
(6) Credit Risk Management○ Summary of Credit Risk Management
See pages 46 to 50 (Internal Control Systems) for a summary of our credit risk management policies and procedures.
We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under Basel II. With
regard to some business units or asset classes that are deemed to be immaterial for purposes of calculating credit riskweighted 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 theseestimates for measuring credit risks for internal use, allocating risk capital and other purposes○ Status of Portfolios to which the Standardized Approach is Applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which the standardized
approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor’s Ratings Services(S&P) overseas.
We apply a 100% risk weight for all of our corporate exposure.

○ Summary of Our Internal Rating System
See pages 47 to 48 (Internal Control Systems) for a summary of our internal rating system and rating assignment
procedures.

Status of Capital Adequacy—24

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(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, 2012 and 2011.

○ Status of Credit Risk Exposure(a) Breakdown by Geographical Area
Billions of yen

As of March 31, 2012

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other Areas
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative offbalance-sheet
exposures

Securities

OTC
derivatives

OthersTotal¥77,828.0
17,071.5
4,363.0
2,258.9
5,825.6
29.2
3,222.0
1,372.5¥94,899.5/¥40,146.5
8,465.3
996.8
144.2
6,029.2―
1,140.7
154.2¥48,611.9/¥1,842.3
2,054.8
148.4
201.5
595.1
0.9
992.9
115.7
¥3,897.1/¥7,323.2
3,453.5
981.9
8.8
1,922.0
6.2
474.0
60.3
¥10,776.7/¥127,140.2
31,045.2
6,490.2
2,613.7
14,372.0
36.5
5,829.6
1,702.9¥158,185.4
8,122.8
Billions of yen

As of March 31, 2011

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other Areas
Total
Exempt Portion
Notes:

Loans, commitments
and other non-OTC
derivative off- balancesheet exposures

Securities

OTC
derivatives

OthersTotal¥80,450.9
13,971.5
3,452.6
2,062.6
4,602.1
48.8
2,706.2
1,098.9¥94,422.5/¥36,914.8
5,354.8
773.5
147.4
3,168.3―
1,122.5
142.9¥42,269.7/¥2,146.5
2,112.5
119.3
232.2
637.1
0.0
1,040.9
82.7¥4,259.0/¥10,636.2
3,010.2
869.9
3.5
1,721.0
1.5
255.8
158.3
¥13,646.5/¥130,148.6
24,449.2
5,215.4
2,445.9
10,128.7
50.4
5,125.6
1,483.0¥154,597.9
8,534.9

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.

25—Status of Capital Adequacy

(b) Breakdown by Industry
Billions of yen

As of March 31, 2012

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Japanese Government; Bank of Japan
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative offbalance-sheet
exposures

Securities

OTC
derivatives

OthersTotal¥13,808.8
1,374.8
6,752.2
3,575.2
7,474.5
9,899.3
11,907.2
15,769.1
24,338.1¥94,899.5/¥2,080.9
188.3
439.8
2,136.7
593.3
2,549.1―
5,946.2
34,677.4¥48,611.9/¥537.5
18.6
53.1
123.5
457.2
2,014.7
0.1
681.1
11.0
¥3,897.1/¥249.9
4.1
33.2
60.5
512.4
1,057.5
14.3
5,690.6
3,153.9¥10,776.7/¥16,677.2
1,585.8
7,278.4
5,896.1
9,037.6
15,520.7
11,921.8
28,087.1
62,180.5¥158,185.4
8,122.8
Billions of yen

As of March 31, 2011

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Japanese Government; Bank of Japan
Total
Exempt Portion
Notes:

Loans, commitments
and other non-OTC
derivative offbalance-sheet
exposures

Securities

OTC
derivatives

OthersTotal¥13,031.1
1,426.7
6,669.9
3,784.0
7,264.2
9,384.2
12,135.1
14,300.7
26,426.1¥94,422.5/¥2,228.1
198.3
512.1
989.9
589.1
1,864.0―
4,990.4
30,897.5¥42,269.7/¥617.2
22.1
51.7
157.8
655.0
2,069.9
0.2
675.9
8.8
¥4,259.0/¥225.4
4.9
42.0
82.2
513.2
1,314.5
14.0
5,813.5
5,636.4¥13,646.5/¥16,102.0
1,652.1
7,276.0
5,014.0
9,021.6
14,632.7
12,149.4
25,780.7
62,968.9¥154,597.9
8,534.9

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.

Status of Capital Adequacy—26

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(c) Breakdown by Residual Contractual Maturity
Billions of yen

As of March 31, 2012

Less than One year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOther than Above
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative offbalance-sheet
exposures

Securities

OTC
derivatives

OthersTotal¥29,665.1
12,628.3
11,347.2
28,158.3
13,100.3¥94,899.5/¥13,917.9
12,704.9
11,449.5
7,156.6
3,382.8¥48,611.9/¥536.91,606.1
937.4
746.9
69.7
¥3,897.1/¥1,897.0
43.9
27.8
1.8
8,806.0¥10,776.7/¥46,017.1
26,983.4
23,762.1
36,063.7
25,358.9¥158,185.4
8,122.8
Billions of yen

As of March 31, 2011

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOther than Above
Total
Exempt Portion
Notes:

Loans, commitments
and other non-OTC
derivative offbalance-sheet
exposures

Securities

OTC
derivatives

OthersTotal¥29,640.8
13,673.1
9,339.6
26,685.1
15,083.7¥94,422.5/¥15,622.7
9,881.0
7,815.5
5,387.3
3,563.0¥42,269.7/¥489.5
1,781.8
1,033.2
864.7
89.6¥4,259.0/¥1,928.9
38.9
27.0
0.0
11,651.6¥13,646.5/¥47,682.0
25,374.9
18,215.4
32,937.2
30,388.1¥154,597.9
8,534.9

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans
to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are
immaterial for the purpose of calculating credit risk-weighted assets.
2. Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

27—Status of Capital Adequacy

○ Status of Exposure Past Due Three Months or More or in Default(d) Breakdown by Geographical Area
Billions of yen

As of March 31, 2012

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other Areas
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative off-balancesheet exposures

Securities

OTC
derivatives

OthersTotal¥1,439.5
197.0
41.7
59.0
8.0
0.4
66.5
21.2
¥1,636.5
/

¥20.5
0.5
0.0
0.0
0.5
―
―
―
¥21.1
/

¥82.3
17.7
0.1
9.5
0.0
―
8.0
―
¥100.1
/

¥59.0
14.5
3.9
0.0
8.4
―
1.6
0.4
¥73.6
/

¥1,601.4
229.9
45.8
68.7
17.0
0.4
76.2
21.6
¥1,831.4
1.1
Billions of yen

As of March 31, 2011

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Other Areas
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative off-balancesheet exposures

Securities

OTC
derivatives

OthersTotal¥1,561.1
185.5
25.1
42.3
23.6
8.7
58.3
27.3
¥1,746.7
/

¥28.8
1.9
0.0
1.5
0.4
―
―
―
¥30.7
/

¥79.2
8.2
0.0
6.3
0.0
―
1.8
―
¥87.5
/

¥75.3
20.8
4.0
0.0
14.7
0.0
1.7
0.3
¥96.2
/

¥1,744.6
216.6
29.2
50.2
38.8
8.7
61.8
27.6
¥1,961.2
1.5

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans
to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are
immaterial for the purpose of calculating credit 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.

Status of Capital Adequacy—28

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Breakdown by Industry
Billions of yen

As of March 31, 2012

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Total
Exempt Portion

Loans, commitments
and other non-OTC
derivative off-balancesheet exposures

Securities

OTC
derivatives

OthersTotal¥386.7
53.7
251.1
205.6
268.2
21.2
236.2
213.3
¥1,636.5
/

¥8.0
2.7
5.3
3.4
0.8
0.2
―
0.3
¥21.1
/

¥35.1
0.2
0.0
5.6
41.6
3.0
0.0
14.2
¥100.1
/

¥16.6
1.1
0.8
6.2
31.1
10.5
1.3
5.7
¥73.6
/

¥446.6
58.0
257.4
221.0
341.9
35.0
237.5
233.7
¥1,831.4
1.1
Billions of yen

As of March 31, 2011

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Total
Exempt Portion
Notes:

1.

2.

Loans, commitments
and other non-OTC
derivative off-balancesheet exposures

Securities

OTC
derivatives

OthersTotal¥415.7
94.0
291.1
191.3
266.8
24.5
264.5
198.4
¥1,746.7
/

¥9.3
3.4
5.2
3.5
2.4
1.8
―
4.9
¥30.7
/

¥39.5
0.4
0.2
3.7
34.9
0.1
0.0
8.4
¥87.5
/

¥19.5
1.9
4.5
6.9
35.9
17.3
1.6
8.2
¥96.2
/

¥484.1
99.9
301.1
205.5
340.1
43.9
266.2
220.0
¥1,961.2
1.5

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.
Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

29—Status of Capital Adequacy

○ 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)
As of, or for the fiscal year 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

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

2012¥501.4
447.5
501.4
447.5
259.1
243.9
259.1
243.9
0.0
0.0
0.0
0.0
¥760.5
691.5
760.5
691.5

Billions of yen
2011¥563.8
501.4
563.8
501.4
317.7
259.1
317.7
259.1
0.1
0.0
0.1
0.0
¥881.8
760.5
881.8
760.5

Note: General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts
associated with regarded-method exposure and securitization exposure are not excluded.

Status of Capital Adequacy—30

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(g) Specific Reserve for Possible Losses on Loans by Geographical Area and Industry
As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Overseas
Exempt Portion
Total

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Overseas
Exempt Portion
Total

2012

2011

¥187.4
26.8
6.0
20.3
14.1
39.7
0.8
67.3
12.0
50.4
6.0
¥243.9¥220.0
27.0
18.6
19.7
17.0
39.0
0.5
84.2
13.5
34.2
4.8
¥259.1

2011

2010¥220.0
27.0
18.6
19.7
17.0
39.0
0.5
84.2
13.5
34.2
4.8
¥259.1¥274.8
24.7
6.4
30.2
22.5
29.0
9.4
71.1
81.2
36.2
6.7
¥317.7

Billions of yen
Change¥ (32.5)(0.1)(12.5)
0.6
(2.9)
0.6
0.2
(16.9)
(1.5)
16.1
1.2
¥ (15.1)
Billions of yen
Change¥ (54.8)
2.2
12.2(10.5)
(5.5)
10.0
(8.8)
13.1
(67.6)(1.9)(1.8)¥ (58.6)

Note: Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.

(h) Write-Offs of Loans by Industry
For the fiscal year ended March 31,

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Exempt Portion
Total

2012

Billions of yen
2011

¥7.1
1.1
1.7
3.4
7.5
0.0
12.2
5.0
0.1
¥38.5

¥13.3
1.8
8.6
9.1
19.8
0.4
9.3
8.8
0.1
¥71.6

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. “Other industries” include overseas and non-Japanese resident portions.

31—Status of Capital Adequacy

○ Statusof Exposure to which the Standardized Approach is Applied(i) Exposure by Risk Weight Category after Applying Credit Risk Mitigation
Billions of yen

As of March 31, 2012

Risk Weight

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

Total

On-balance
Sheet

Off-balance
Sheet

Total

¥452.3
67.4
288.5
―
4.4
2,144.8
0.1――――¥2,957.8¥3,702.0
0.1
796.1
―
1.0
665.7
―
―
0.0
―
0.0
¥5,165.0¥4,154.3
67.5
1,084.7―
5.4
2,810.5
0.1
―
0.0
―
0.0
¥8,122.8

With external
Rating¥139.1
―
8.7
―
2.0
42.8
―
―
―
―
―
¥192.8Billions of yen

As of March 31, 2011

Risk Weight

Total

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

On-balance
Sheet

Off-balance
Sheet

Total

¥714.7
1.2
302.1
0.0
73.9
1,863.2
0.0――――¥2,955.4¥3,893.1
―
847.9
―
8.2
829.9
―
―
0.0
0.0
0.0
¥5,579.4¥4,607.9
1.2
1,150.1
0.0
82.2
2,693.2
0.0
―
0.0
0.0
0.0
¥8,534.9

With external
Rating
¥90.0
―
9.2
―
5.5
34.6
―
―
―
―
―
¥139.6

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to
restructuring countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

Status of Capital Adequacy—32

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(j) Deduction from Capital
As of March 31,

2012

Deduction from CapitalBillions of yen
2011

¥21.9

¥27.9

○ Status of Exposure to which the Internal Ratings-Based Approach is Applied(k) Specialized Lending Exposure under Supervisory Slotting Criteria by Risk Weight Category
As of March 31,

Risk Weight

2012

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

¥―
13.1
―
84.0
15.5
2.4
41.9
236.7
7.1
¥400.9Billions of yen
2011¥158.0
757.2
235.9
4.1
80.2
15.4
―
402.5
102.4
¥1,756.1(l) Equity Exposure under Simple Risk Weight Method of Market-Based Approach by Risk Weight
Category
As of March 31,

Risk Weight
Total

300%
400%

2012

Billions of yen
2011¥204.969.2¥274.2¥217.767.6¥285.3

Note: Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities.

33—Status of Capital Adequacy

(m) Portfolio by Asset Class and Ratings Segment (Corporate, etc.)
Billions of yen

As of March 31, 2012

Corporate
Investment
Grade Zone
Non-investment
Grade Zone
Default
Sovereign
Investment
Grade Zone
Non-investment
Grade Zone
Default
Bank
Investment
Grade Zone
Non-investment
Grade Zone
Default
Equity Exposure
Under PD/LGD
Approach
Investment
Grade Zone
Non-investment
Grade Zone
Default
Total
Investment
Grade Zone
Non-investment
Grade Zone
Default

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default(EAD
Weighted
Average)(%)

Risk
Weight(EAD
Weighted
Average)(%)

EAD(Billionsof yen)Onbalance
Sheet

3.62

36.54

/

43.67

54,517.9

0.09

38.26

/

22.93

2.64
100.00
0.01

33.21
47.12
39.89

/
44.36
/

0.00

39.89

5.37
100.000.55

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversion
Factor
(%)

40,758.6

13,759.2 10,637.7

75.11

32,144.7

21,584.1

10,560.5

8,851.5

75.10

75.91
36.59
0.98

20,981.8
1,391.3
77,843.9

17,924.8
1,249.6
58,069.4

3,057.0
141.7
19,774.5

1,757.9
28.2
220.8

75.14
75.00
75.00

/

0.80

77,729.2

57,958.2

19,770.9

219.6

75.00

39.68
61.29
37.62

/
56.51
/

122.43
63.28
23.67

114.5
0.1
5,579.7

111.0
0.1
2,689.2

3.5―
2,890.5

1.2
―
309.8

75.00
―
75.49

0.09

37.43

/

19.80

5,024.4

2,460.3

2,564.0

248.1

75.61

0.97
100.00

38.02
73.41

/
70.53

59.47
38.17

534.1
21.2

210.7
18.1

323.3
3.1

61.6
―

75.00
―

0.33

90.00

/

122.93

964.4

964.4

―

―

―

0.06

90.00

/

107.68

872.7

872.7

―

―

―

1.64
100.00
1.45

90.00
90.00
38.83

/
90.00
/

271.51
―
19.49

90.5
1.1
138,906.1

90.5
1.1
102,481.7――――
36,424.3 11,168.4

―
―
75.12

0.03

39.71

/

8.57

115,771.1

82,875.5

32,895.5

9,319.3

75.11

2.61
100.00

33.60
47.55

/
44.79

76.57
36.58

21,721.0
1,413.9

18,337.1
1,269.1

3,383.9
144.8

1,820.8
28.2

75.14
75.00

Offbalance
Sheet

Status of Capital Adequacy—34

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Billions of yen

As of March 31, 2011

Corporate
Investment
Grade Zone
Non-investment
Grade Zone
Default
Sovereign
Investment
Grade Zone
Non-investment
Grade Zone
Default
Bank
Investment
Grade Zone
Non-investment
Grade Zone
Default
Equity Exposure
under PD/LGD
Approach
Investment
Grade Zone
Non-investment
Grade Zone
Default
Total
Investment
Grade Zone
Non-investment
Grade Zone
Default

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

Risk
EL Default
Weight(EAD(EAD
Weighted Weighted
Average) Average)
(%)
(%)

EAD
(Billionsof yen)Onbalance
Sheet

Offbalance
Sheet

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversion
Factor
(%)

4.08

35.30

/

46.38

51,448.3

38,017.0

13,431.3

9,671.1

75.10

0.11

36.51

/

23.60

29,926.6

20,015.7

9,910.9

7,797.9

75.12

3.29
100.00
0.00

32.37
51.50
38.73

/
48.63
/

80.84
38.08
0.88

20,116.7
1,404.975,302.4

16,723.2
1,278.0
54,017.2

3,393.5
126.8
21,285.2

1,843.8
29.3
114.2

75.03
75.10
76.70

0.00

38.73

/

0.80

75,235.2

53,951.3

21,283.8

113.9

76.71

2.51
100.00
0.79

38.66
43.59
37.55

/
39.62
/

96.54
52.58
25.13

67.1
0.1
5,157.1

65.7
0.1
2,440.6

1.4―
2,716.5

0.2
―
255.1

75.00
―
75.67

0.11

37.23

/

21.31

4,749.2

2,263.8

2,485.4

197.6

75.87

1.77
100.00

36.83
98.49

/
96.44

72.83
27.19

379.0
28.7

148.1
28.6

230.9
0.1

57.5
―

75.00
―

0.58

90.00

/

125.95

1,037.1

1,037.1

―

―

―

0.08

90.00

/

108.30

934.8

934.8

―

―

―

2.33
100.00
1.62

90.00
90.00
37.76

/
90.00
/

296.15
―
20.41

99.2
3.0
132,945.1

99.2
3.0
95,512.0――
37,433.1――
10,040.5

―
―
75.13

0.04

38.50

/

8.74

110,846.0

77,165.8

33,680.2

8,109.5

75.16

3.26
100.00

32.75
52.52

/
49.67

81.78
37.78

20,662.2
1,436.8

17,036.3
1,309.8

3,625.9
126.9

1,901.6
29.3

75.03
75.10

Notes: 1. Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default
includes E2R through H1 (see page 48 (Internal Control Systems) 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.

35—Status of Capital Adequacy

(n) Portfolio by Asset Class and Ratings Segment (Retail)Billions of yen

As of March 31,
2012

Residential
Mortgage
Non-default
Default
Qualifying
Revolving
Loan (Retail)Non-default
Default
Other RetailNon-default
Default
Total
Non-default
Default

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default(EAD
Weighted
Average)(%)

Risk
Weight(EAD
Weighted
Average)
(%)

2.85
0.81
100.00

42.09
41.96
48.10

/
/
46.02

33.65
33.78
27.63

10,529.9
10,313.0
216.8

3.98
3.57
100.005.74
1.76
100.003.47
1.07
100.00

79.22
79.23
77.21
52.00
52.13
48.85
45.04
44.96
48.49

/
/
74.07
/
/
46.34
/
/
46.25

72.79
72.92
41.51
45.41
45.92
33.34
37.04
37.22
29.63

346.3
344.9
1.4
2,776.3
2,663.6
112.6
13,652.5
13,321.6
330.9

EAD(Billions ofyen)

Onbalance
Sheet

Offbalance
Sheet

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversion
Factor (%)

10,244.4
10,033.7
210.7

285.4
279.3
6.0

6.2
6.2
―

75.00
75.00
―

237.2
236.0
1.1
2,752.3
2,643.8
108.5
13,234.0
12,913.5
320.4

109.1
108.8
0.2
23.9
19.8
4.0
418.5
408.0
10.4

1,384.9
1,382.9
1.9
22.4
18.3
4.1
1,413.6
1,407.5
6.0

7.88
7.87
13.72
72.45
67.39
94.85
9.20
8.95
69.01

EAD
(Billions ofyen)

Onbalance
Sheet

Billions of yen

As of March 31,
2011

Residential
Mortgage
Non-default
Default
Qualifying
Revolving
Loan (Retail)Non-default
Default
Other RetailNon-default
Default
Total
Non-default
Default
Notes:PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default(EAD
Weighted
Average)(%)

Risk
Weight(EAD
Weighted
Average)
(%)

3.16
0.90
100.00

41.64
41.51
47.37

/
/
45.30

34.47
34.64
27.46

10,774.8
10,529.4
245.4

4.42
3.93
100.005.77
2.03
100.003.71
1.20
100.00

79.63
79.63
79.16
51.46
51.52
50.17
44.55
44.46
48.36

/
/
76.06
/
/
47.70
/
/
46.17

75.18
75.35
40.96
49.61
50.28
32.62
38.51
38.75
29.07

350.4
348.7
1.7
2,759.9
2,654.5
105.3
13,885.2
13,532.7
352.5

Offbalance
Sheet

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversion
Factor (%)

10,444.5
10,206.5
238.0

330.2
322.9
7.3

7.6
7.6
―

75.00
75.00
―

241.6
240.2
1.4
2,730.8
2,629.5
101.2
13,417.1
13,076.3
340.7

108.7
108.5
0.2
29.0
24.9
4.1
468.1
456.3
11.7

1,436.5
1,434.1
2.3
26.0
21.9
4.1
1,470.2
1,463.7
6.5

7.57
7.57
12.29
73.67
69.80
94.20
9.10
8.85
64.29

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.

Status of Capital Adequacy—36

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(o) Actual Losses by Asset Class

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other Retail
Total
Note:

For the period from April 1, 2011
through March 31, 2012
Actual Losses

Billions of yen
For the period from April 1, 2010
through March 31, 2011
Actual Losses

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses on loans andgeneral 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 the relevant period. Equity
exposure under the PD/LGD approach is not included in the amount of actual losses.
<Analysis>
Actual losses of ¥29.5 billion in the period from April 1, 2011 through March 31, 2012 decreased by ¥49.2 billion compared with the period from
April 1, 2010 through March 31, 2011. This was due mainly to decrease in losses from residential mortgage and other retail exposure offset in partby an increase in losses from Corporate exposure.

37—Status of Capital Adequacy

(p) Comparison of Estimated and Actual Losses by Asset ClassFor the period from April 1, 2011
through March 31, 2012
Estimated Losses (Expected
Losses as of March 31, 2011)

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other RetailTotal¥989.6
1.3
31.9
150.4
12.2
74.7
¥1,260.3

After Deductionof Reserves

ActualLosses¥373.2(11.7)
4.1
43.2
4.2
24.1
¥437.2

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

For the period from April 1, 2009
through March 31, 2010
Estimated Losses (Expected
Losses as of March 31, 2009)

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other RetailTotal¥1,313.1
1.7
35.5
95.8
10.3
51.3
¥1,508.0

After Deductionof Reserves

ActualLosses¥473.3(10.8)
6.5
24.8
3.8
15.6
¥513.3¥166.5
0.3
1.0
33.2
0.2
4.3
¥205.8Billions of yen
For the period from April 1, 2010
through March 31, 2011
Estimated Losses (Expected
Losses as of March 31, 2010)¥1,296.9
1.5
38.4
122.6
10.2
51.2
¥1,521.1

After Deductionof Reserves

ActualLosses¥454.0(11.4)
8.3
31.1
3.5
15.0
¥500.6

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

Billions of yen
For the period from April 1, 2008
through March 31, 2009
Estimated Losses (Expected
Losses as of March 31, 2008)¥1,121.0
1.3
2.9
86.6
7.9
51.9
¥1,271.8

After Deductionof Reserves

ActualLosses¥350.0(11.1)
2.5
22.7
3.2
16.4
¥383.9¥345.3
0.0
28.6
17.2
2.1
3.8
¥397.3

Billions of yen
For the period from April 1, 2007
through March 31, 2008
Estimated Losses (Expected
Losses as of March 31, 2007)

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other Retail
Total
Notes:¥1,086.0
5.4
6.4
78.2
7.2
52.9
¥1,236.5

After Deductionof Reserves

ActualLosses¥217.0
(7.0)
2.6
6.8
2.3
8.8
¥230.5

¥74.6
0.0
(2.6)
5.1
(0.1)
(2.8)
¥74.1

1. Estimated losses after deduction of reserve are the amount after deductions 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 of the beginning of eachperiod. Equity exposure under the PD/LGD approach is not included in the amount of estimated losses.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses on loans
and general reserves 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 the relevant
period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.

Status of Capital Adequacy—38

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Methods for Credit Risk Mitigation(8) Risk Management Regarding Credit Risk Mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, we evaluate
the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also conductperiodical subsequent re-evaluations. Furthermore, we monitor the state of concentration of collateral type andconcentration of credit risks in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by“sovereign, banks or corporations above a certain credit rating” is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of
the legal system of the relevant jurisdiction, we take its effect into consideration.

(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, 2012

Internal Ratings-based
ApproachCorporate
SovereignBank
RetailResidential
Mortgage
Qualifying Revolving
Loan
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal

39—Status of Capital Adequacy

Financial
Collateral

Other Collateral

Guarantees

Credit Derivatives

Total¥2,337.0
1,942.5
0.0
367.0
27.3

¥4,733.6
4,500.7
21.2
33.7
177.9

¥5,228.5
3,507.5
493.3
222.7
1,004.8

¥34.1
34.1
―
―
―

¥12,333.4
9,985.0514.6
623.5
1,210.1

―

―

222.3

―

222.3

―
27.3
―
3,087.8
3,084.8
0.9
2.1
―
―
―
¥5,424.9

―
177.9
―
/
/
/
/
/
/
/
¥4,733.6

0.3
782.0
―
―
―
―
―
―
―
―
¥5,228.5

―
―
―
―
―
―
―
―
―
―
¥34.1

0.3
987.4
―
3,087.8
3,084.8
0.9
2.1
―
―
―
¥15,421.3

Billions of yen
As of March 31, 2011

Internal Ratings-based
ApproachCorporate
SovereignBank
RetailResidential
Mortgage
Qualifying
Revolving Loan
Other Retail
OthersStandardized
Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
Others
Total

Financial
Collateral

Other Collateral

Guarantees

Credit Derivatives

Total¥2,509.4
2,136.1
0.2
343.2
29.7

¥4,775.5
4,561.6
23.8
16.2
173.9

¥5,307.8
3,417.4
581.5
288.8
1,020.0

¥30.7
21.1
―
9.6
―

¥12,623.5
10,136.2
605.6
657.9
1,223.7

―

―

252.5

―

252.5

―
29.7
―

―
173.9
―

0.4
767.0
―

―
―
―

0.4
970.7
―

3,391.0
3,319.7
4.7
66.6
―
―
―
¥5,900.4

/
/
/
/
/
/
/
¥4,775.5

―
―
―
―
―
―
―
¥5,307.8

―
―
―
―
―
―
―
¥30.7

3,391.0
3,319.7
4.7
66.6
―
―
―
¥16,014.6■ Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions(10) Management of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
In managing the risk pertaining to counterparty risk in derivatives transactions and long-settlement transactions, we
generally allocate risk capital together with loans, etc. As to derivatives transactions with financial institutions, etc., weperiodically, where necessary, deliver and receive collateral to and from the counterparty based on the replacement cost to
mitigate credit risk (collateralized derivative transactions). In conducting such transactions, there is a risk in which we may
be required to provide additional collateral in cases where our credit profile deteriorates. We calculate reserves forderivatives transactions by multiplying the same reserve ratio that we use for loans, etc., against the replacement cost.

Status of Capital Adequacy—40

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(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

Current exposure method
Foreign Exchangerelated Transactions
Interest Rate-related
Transactions
Gold-related
Transactions
Equity-related
Transactions
Transactions Related
to Precious Metals(Other than Gold)
Other Commodityrelated Transactions
Credit Derivatives
Transactions
Subtotal
Netting Benefits by
Close-out Netting
Settlement Contracts
Subtotal
Effect of Credit Risk
Mitigation by
Collateral
Total

As of March 31, 2012
Gross
CreditReplacement
Gross
Equivalent
Cost
Add-onAmountAs of March 31, 2011
Gross
CreditReplacement
Gross
Equivalent
Cost
Add-onAmount¥2,154.3¥1,819.8¥3,974.2¥2,400.6¥1,794.6¥4,195.3

5,783.8

2,727.4

8,511.3

5,785.0

2,647.0

8,432.0

―

―

―

―

―

―

58.0

98.7

156.7

58.4

73.0

131.5

―

―

―

0.0

0.0

0.0

65.8

51.4

117.2

110.3

62.4

172.7

59.6
8,121.7

429.3
5,126.8

489.0
13,248.5

73.5
8,428.0545.8
5,123.1

619.3
13,551.1(B)(C)=(A)+(B)

/
/

/
/

8,524.4
4,724.1////

8,652.7
4,898.4(D)(C)+(D)

/
¥/

/
¥/

400.9
¥4,323.2

/
¥/

/
¥/

261.0
¥4,637.4(A)

Standardized Method
Total

CreditEquivalent
AmountCreditEquivalent
Amount¥198.0¥230.3

Note: The current exposure method and standardized method are used as the method to calculate credit equivalent amounts.

Long-Settlement Transactions
Billions of yen
2012

As of March 31,

Long-Settlement Transactions

Gross
Replacement
Cost

¥3.5

2011

Gross Addon

CreditEquivalent
AmountGross
Replacement
Cost

Gross
Add-onCreditEquivalent
Amount

¥0.7

¥4.3

¥5.9

¥0.9

¥6.9

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “netting benefits by close-out netting settlement contracts” nor the “effect of credit risk mitigation by collateral” applies
to long-settlement transactions.

41—Status of Capital Adequacy

(b) Amounts of Credit Risk Mitigation by TypeAs of March 31,

Financial Collateral
Other Collateral
Guarantees, Others
Total

2012

Billions of yen
2011

¥49.9
96.1
14.4
¥160.5

¥57.5
129.7
16.5
¥203.8(c) Notional Amount of Credit Derivatives Subject to Credit Equivalent Amount Calculations
As of March 31,

Credit Derivatives Type:
Credit Default Swap
Total Return Swap
Total

Protection Bought
Protection Sold
Protection Bought
Protection Sold
Protection Bought
Protection Sold

2012

Billions of yen
2011

Notional Amount

Notional Amount¥3,224.6
3,213.3――¥3,224.6
3,213.3¥4,230.7
4,275.2――¥4,230.7
4,275.2

2012

Billions of yen
2011¥127.5¥79.3

Note: Credit derivatives used for credit risk mitigation are as follows:

As of March 31,

Credit Derivatives Used for Credit Risk Mitigation

Status of Capital Adequacy—42

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Securitization Exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinatedstructure,” pursuant to the definitions set forth in the Consolidated Capital Adequacy Ratio Notice, etc.; provided that thetransactions do not include those which fall within specialized lending exposure.
The Notice was revised based on the “Enhancements to the Basel II Framework” and “Revisions to the Basel II market risk
framework” announced by the Basel Committee on Banking Supervision, and the revisions took effect on December 31,
2011 (the so-called “Basel 2.5 revisions”). In connection with such revisions, disclosure items relating to securitization
exposure have been added or changed starting from the Annual Review for the fiscal year ended March 31, 2012.

(12) Summary of Securitization Exposure and Its Risk Management
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book. Quantitative information related to (a) to (c) below is disclosed in “(14) Quantitative disclosure items forsecuritization exposure,” in accordance with the definitions set forth in the Consolidated Capital Adequacy Ratio Notice.
Securitization exposures are separately disclosed for calculation of credit risk-weighted assets and market risk equivalentamounts. (Quantitative information related to the market risk equivalent amounts is stated below starting as of, or for the
fiscal year ended, March 31, 2012).

○ The Role of Our Securitization Transactions(a) Securitization of Our Assets (“Securitization as Originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to theneeds of our investors, etc., we engage in securitization transactions the underlying assets of which include mortgage
loans and loans to our corporate customers. When conducting a securitization as an originator, we consider suchtransaction from various aspects, including the effects of reduction of economic capital and improvement of return on risk
as well as the practical effects of risk transfers, and make a comprehensive judgment on structure and appropriateness oftransaction.
(b) Securitization Program (ABCP/ABL) Sponsor
As a means of supporting our customers in their securitization of their account receivables and notes receivables, etc., weretain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions), andproviding asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to special
purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining firm
understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internal ratings andmake evaluations by assessing such transactions and carefully managing the exposure together with other direct loan
assets.
(c) Investment in Alternative Credit Risk Assets (“Securitization transactions as investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Portfolio Management
Committee, etc. set limits on the amount of investment for securitization transactions as investor, and we maintain astringent structure for management of such transactions. In addition, we implement stress tests based on scenarios underthe market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as ameans of financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets,
and to disclose appropriately the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
None of our affiliated entities hold securitization products in which we are involved as originators or sponsors.

43—Status of Capital Adequacy

○ Overview of Risk Characteristics in Securitization and Monitoring System
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio.
The structure of these products also contains risks related to the originators, the administrators, trustees and managers of
the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor theability, quality and operating performance of originators and managers in charge of controlling the underlying assets as wellas covenant information and credit status of the parties related to the program.
In addition, for resecuritization products, we pay attention to the underlying assets of the underlying securitization products.
We also assign internal ratings to all products and review the rating at least once a year. If there is a change in the credit
situations, we will review the internal rating as appropriate. As mentioned above, we have established a system tocomprehensively understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Portfolio Management Committee, etc.

○ Status of Response to Basel II
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions andapply the supervisory formula approach (“SF”) in other cases pursuant to the 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 averagerisk weight of underlying assets.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt the standardized
measurement method and calculate market risk equivalent amounts in connection with the specific risks of securitization
products based on risk weights according to ratings assigned by eligible external credit assessment institutions pursuant to
the Consolidated Capital Adequacy Ratio Notice.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch Ratings,
Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment
institutions for each type of securitization exposure).

(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” (BusinessAccounting Standards No. 10), etc., and we conduct valuations based on market price or other reasonably calculated price(such as a price quoted 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 analternative to loans by the European, 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 andinformation vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on thereasonable estimates of our management as fair value. In deriving reasonably calculated prices based on the reasonableestimates of our management, we used the discounted cash flow method, and the price decision variables include default
rates, recovery rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on “Report on Auditing
Securitized Instruments”, announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.
Status of Capital Adequacy—44

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(14) Quantitative Disclosure Items for Securitization Exposure○ Securitization Exposure as Originator (for Calculation of Credit Risk-weighted Assets)(a) Information by Type of Underlying Assets
Billions of yen
As of, or for the Fiscal Year ended,
March 31, 2012

Traditional Securitizations
Amount of Underlying
Assets (a)Default Exposure
Losses during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Gains and Losses
Recognized on Sales
during the Fiscal Year
Securitization Subject to
Early Amortization
Treatment
Synthetic Securitizations
Amount of Underlying
Assets (b)Default Exposure
Losses during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Total Amount of Underlying
Assets (a)+(b)45—Status of Capital Adequacy

Residential
Mortgage
Credit
Loans
Cards

Auto
Loans

Lease
Payment
Receivables

Real
EstateSecuritization
Products

Corporate

Total

―

¥169.1
2.3

¥―
―

¥―
―

¥―
―

¥―
―

¥―
―

¥169.1
2.3

―

0.7

―

―

―

―

―

0.7

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―
―

―
―

―
―

―
―

660.5
―

10.0
―

―
―

670.5
―

―

―

―

―

―

―

―

―

―

―

―

―

63.6

―

―

63.6

¥―

¥169.1¥―¥―¥660.5¥10.0¥―¥839.6¥―

Billions of yen
As of, or for the Fiscal Year ended,
March 31, 2011

Traditional Securitizations
Amount of Underlying
Assets (a)Default Exposure
Losses during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Gains and Losses
Recognized on Sales
during the Fiscal Year
Securitization Subject to
Early Amortization
Treatment
Synthetic Securitizations
Amount of Underlying
Assets (b)Default Exposure
Losses during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Total Amount of Underlying
Assets (a)+(b)Notes:

Residential
Mortgage
Credit
Cards
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥―
―

¥198.6
4.1

¥―
―

¥―
―

¥―
―

¥―
―

¥―
―

¥198.6
4.1

―

0.6

―

―

―

―

―

0.6

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―
―

―
―

―
―

―
―

847.5
―

34.6
―

―
―

882.1
―

―

―

―

―

―

―

―

―

―

―

―

―

50.0

12.8

―

62.8

¥―

¥198.6¥―¥―¥847.5¥34.6¥―¥1,080.8

1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2012 and 2011.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us, exposure toassets 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 of default 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 effects of risk mitigation, 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 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.

Status of Capital Adequacy—46

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure Intended to be Securitized─
Billions of yen

As of March 31, 2012

Exposure Intended to be
Securitized

Residential
CreditMortgage
Loans
Cards

¥―

¥―

Auto
Loans

Lease
Payment
Receivables

Corporate

¥―

¥―

¥―

Real
EstateSecuritization
Products

Total

¥―

¥―

¥―
Billions of yen

As of March 31, 2011

Exposure Intended to be
Securitized

47—Status of Capital Adequacy

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

¥―

¥―

¥―

¥―

CorporateReal
EstateSecuritization
Products

Total

¥―

¥―

¥―

¥―

(b) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations Deductedfrom Capital
Exposure whose
Underlying Assets are
Overseas Assets

Residential
Mortgage
Credit
Cards
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥―

¥36.2

¥―

¥―

¥660.5¥10.0¥―¥706.7

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
¥―

―
¥36.2

―
¥―

―
¥―

―
¥660.5

―
¥10.0

―
¥―

―
¥706.7

―

―

―

―

―

―

―

―

―

―

―

―

1.5

―

―

1.5

―

―

―

―

―

―

―

―

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥34.6

¥―

¥919.8Billions of yen

As of March 31, 2011

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations Deductedfrom Capital
Exposure whose
Underlying Assets are
Overseas Assets
Notes:

Residential
Mortgage
Credit
Loans
Cards

¥―

¥37.6

¥―

¥―

¥847.5

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
¥―

―
¥37.6

―
¥―

―
¥―

―
¥847.5

―
¥34.6

―
¥―

―
¥919.8

―

―

―

―

―

―

―

―

―

―

―

―

―

3.0

―

3.0

―

―

―

―

―

―

―

―

1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. “Credit cards” include shopping credit receivables, card loans, etc.
3. “Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.
4. “Exposure on resecuritizations” as of both March 31, 2012 and 2011 are classified following Article 1, Paragraph 2-2 of the Consolidated Capital
Adequacy Ratio Notice (hereinafter the same).

Status of Capital Adequacy—48

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Weight Category─
Billions of yen

As of March 31, 2012

Up to 20%
Up to 50%
Up to 100%
Risk
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥607.8
20.5
37.2
―
30.5
9.1
1.5
¥706.7

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥607.8
20.5
37.2
―
30.5
9.1
1.5
¥706.7

¥―
―
―
―
―
―
―
¥―
Billions of yen

As of March 31, 2011

Up to 20%
Up to 50%
Up to 100%
Risk
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥801.2
24.5
40.7
―
34.4
15.9
3.0
¥919.8

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥801.2
24.5
40.7
―
34.4
15.9
3.0
¥919.8

¥―
―
―
―
―
―
―
¥―

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

49—Status of Capital Adequacy─Amount of Required Capital by Risk Weight Category─
Billions of yen

As of March 31, 2012

Up to 20%
Up to 50%
Up to 100%
Risk
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥3.6
0.5
2.2
―
0.3
0.0
―
¥6.7

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥3.6
0.5
2.2
―
0.3
0.0
―
¥6.7

¥―
―
―
―
―
―
―
¥―

Billions of yen

As of March 31, 2011

Up to 20%
Up to 50%
Up to 100%
Risk
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥4.8
0.6
3.0
―
1.2
0.2
―
¥10.0

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥4.8
0.6
3.0
―
1.2
0.2
―
¥10.0

¥―
―
―
―
―
―
―
¥―

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31,

Risk
WeightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

2012

Billions of yen
2011

¥―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
¥―

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit
risk.

Status of Capital Adequacy—50

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Capital Increase due to Securitization Transactions─
Billions of yen

As of March 31, 2012

Capital Increase due toSecuritization Transactions

Residential
CreditMortgage
Loans
Cards

¥―

¥3.3

Auto
Loans

Lease
Payment
Receivables

Real
EstateSecuritization
Products

Corporate

Total

¥―

¥―

¥―

¥―

¥―

¥3.3

Auto
Loans

Lease
payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥―

¥―

¥―

¥―

¥―

¥4.2

Billions of yen

As of March 31, 2011

Capital Increase due toSecuritization Transactions

Residential
Mortgage
Credit
Cards
Loans

¥―

¥4.2

─Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of theConsolidated Capital Adequacy Ratio Notice─
As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 ofSupplementary Provisions of the Consolidated Capital
Adequacy Ratio Notice

51—Status of Capital Adequacy

2012

Billions of yen
2011

¥―

¥―

○ Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL) (for Calculation ofCredit Risk-Weighted Assets)(c) Information by Type of Underlying Assets
Billions of yen
As of, or for the Fiscal Year
ended, March 31, 2012

Amount of Underlying
AssetsDefault Exposure
Estimated Loss Amountrelated to Underlying
Assets during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year

Residential
Mortgage
Credit
Loans
Cards

Auto
Loans

Lease
payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥82.7
―

¥―
―

¥79.0
―

¥125.60.1¥465.5
13.8

¥―
―

¥24.0
―

¥777.1
14.0

0.6

―

1.2

0.8

14.3

―

0.0

17.1

¥546.6¥―¥471.6¥1,723.3¥2,637.0

¥―

¥84.7

¥5,463.5

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

Billions of yen
As of, or for the Fiscal Year
ended, March 31, 2011

Amount of Underlying
AssetsDefault Exposure
Estimated Loss Amountrelated to Underlying
Assets during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Notes:

Residential
Mortgage
CreditLoans
Cards¥115.4―¥――¥142.7―¥195.20.2¥443.6
7.7

¥―
―

¥9.9
0.0

¥906.9
8.0

0.6

―

3.6

1.9

9.1

―

0.0

15.5

¥1,079.9¥―¥771.5¥2,577.5¥2,408.0¥―¥153.5¥6,990.5

1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2012 and 2011.
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 andother 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 the following
parameters that are used in the calculation of capital adequacy ratio:
・ parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and・ with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratings-based
approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.

Status of Capital Adequacy—52

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(d) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

Residential
Mortgage
Credit
Cards
Loans

Lease
payment
Auto
Loans Receivables

Account
and Note
Receivables

Real
Estate

¥68.2

¥―

¥76.1

Others

Total

¥79.5

¥329.2¥―¥5.9¥559.1

―
64.6

―
―

―
12.8

―
56.3

―
126.0

―
―

―
22.5

―
282.5

―
¥132.9

―
¥―

―
¥89.0

―
¥135.9―¥455.3

―
¥―

―
¥28.4

―
¥841.7

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

47.2

―

41.0

24.6

90.4

―

22.5

225.9

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateBillions of yen

As of March 31, 2011

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets
Notes:

1.
2.
3.
4.
5.

Residential
Mortgage
CreditLoans
Cards

Others

Total

¥98.2

¥―

¥136.6¥158.7¥335.4¥―¥7.3¥736.5

―
34.9

―
―

―
10.7

―
38.0

―
117.9

―
―

―
22.8

―
224.4

―
¥133.1―¥――¥147.3―¥196.8―¥453.4

―
¥―

―
¥30.2

―
¥961.0

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

47.8

―

62.3

16.6

84.6

―

22.8

234.3

Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation of required
capital.
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.”
Credit cards” include shopping credit receivables, card loans, etc.
The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying
assets of each transaction.
“Exposure on resecuritizations” as of both March 31, 2012 and 2011 are classified following Article 1, Paragraph 2-2 of the Consolidated
Capital Adequacy Ratio Notice (hereinafter the same).

53—Status of Capital Adequacy─Exposure by Risk Weight Category─
Billions of yen
As of March 31, 2012

Up to 20%
Up to 50%
Risk
Up to 100%
Weight Up to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Exposure on
Sheet Resecuritizations¥537.1
18.3
0.3
3.3
―
―
―
¥559.1Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥281.7
0.2
―
―
―
0.5
―
¥282.5

¥―
―
―
―
―
―
―
¥―

¥818.8
18.5
0.3
3.3
―
0.5
―
¥841.7

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

Billions of yen
As of March 31, 2011

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥648.2
21.9
0.1
66.1
―
―
―
¥736.5

¥―
―
―
―
―
―
―
¥―

¥214.7
9.7
―
―
―
―
―
¥224.4

¥―
―
―
―
―
―
―
¥―

¥862.9
31.7
0.1
66.1
―
―
―
¥961.0

¥―
―
―
―
―
―
―
¥―

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

─Amount of Required Capital by Risk Weight Category─
Billions of yen

As of March 31, 2012

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥3.5
0.3
0.0
0.4
―
―
―
¥4.4

¥―
―
―
―
―
―
―
¥―

¥1.7
0.0
―
―
―
0.5
―
¥2.3

¥―
―
―
―
―
―
―
¥―

¥5.3
0.3
0.0
0.4
―
0.5
―
¥6.7

¥―
―
―
―
―
―
―
¥―
Billions of yen

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital

¥4.1
0.4
0.0
7.8
―
―
―

¥―
―
―
―
―
―
―

¥1.3
0.2
―
―
―
―
―

¥―
―
―
―
―
―
―

¥5.5
0.7
0.0
7.8
―
―
―

¥―
―
―
―
―
―
―

Total

¥12.3

¥―

¥1.6

¥―

¥14.0

¥―

As of March 31, 2011

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

Status of Capital Adequacy—54

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31,

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

2012

Billions of yen
2011

¥―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
¥―

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate creditrisk.

─Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of theConsolidated Capital Adequacy Ratio Notice─
As of March 31,

2012

Billions of yen
2011

Credit Risk-weighted Assets Calculated Pursuant to Article 15of Supplementary Provisions of the Consolidated Capital
Adequacy Ratio Notice¥―¥―○ Securitization Exposure as Investor (for Calculation of Credit Risk-Weighted Assets)(e) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

55—Status of Capital Adequacy

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
payment
Receivables

CorporateReal
Estate¥68.5

OthersTotal¥1,414.9¥118.7¥62.7¥192.1¥321.4¥108.6¥2,287.2

―
―

39.0
―

0.5
7.6

―
4.7

108.2
1.5

0.0
0.6

3.0
4.8

150.8
19.4

―
¥68.5

―
¥1,414.9―¥126.4―¥67.4―¥193.6―¥322.0―¥113.5―¥2,306.7

―

39.0

0.5

―

108.2

0.0

3.0

150.8

―

8.8

0.1

0.4

8.1

38.3

4.2

60.0

57.4

83.5

14.1

28.0

176.1

26.3

13.1

398.9

Billions of yen

As of March 31, 2011

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

Creditcards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateOthers

Total

¥28.5

¥1,488.4¥177.5¥98.5¥259.3¥394.6¥119.6¥2,566.7

―

41.6

―

―

150.0
7.7

―
0.8

119.3
1.6

0.0
0.4

3.0
3.2

313.9
13.9

―
¥28.5

―
¥1,488.4

6.9¥185.2―¥99.4―¥261.0―¥395.0―¥122.86.9¥2,580.6

―

41.6

156.9

―

119.3

0.0

3.0

320.8

―

9.9

―

0.4

8.5

42.3

4.6

65.9

19.3

122.4

7.0

19.6

189.1

30.2

11.9

400.0

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as investor evenwhen the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions for those managed
CLOs, etc., as of March 31, 2012 and 2011 were ¥0.7 billion and ¥1.0 billion, respectively (treated as deduction from capital for purpose of capital
adequacy ratio calculation).
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions
that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets ofeach transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio iscategorized as securitization exposure as originator.
6. Securitization exposure as investor as of March 31, 2012 and 2011 includes ¥1.5 billion and ¥1.6 billion liquidity facilities, respectively, that we
provide to ABCP programs sponsored by other companies.
7. “Exposure on resecuritizations” as of both March 31, 2012 and 2011 are classified following Article 1, Paragraph 2-2 of the Consolidated Capital
Adequacy Ratio Notice (hereinafter the same).

Status of Capital Adequacy—56

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Weight Category─
Billions of yen

As of March 31, 2012

On-balance
Sheet

Exposure on
Resecuritizations

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total¥1,856.4
292.2
59.6
4.1
15.7
―
58.9
¥2,287.2

¥53.0
86.8
0.5
―
0.2
―
10.2
¥150.8Off-balance
Exposure on
Sheet Resecuritizations

¥9.2
4.7
―
―
4.3
―
1.1
¥19.4

¥―
―
―
―
―
―
―
¥―

Total

Exposure on
Resecuritizations¥1,865.6
297.0
59.6
4.1
20.1
―
60.0
¥2,306.7

¥53.0
86.8
0.5
―
0.2
―
10.2
¥150.8Billions of yen

As of March 31, 2011

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total¥2,168.0
245.0
62.2
7.2
19.2
―
64.8
¥2,566.7¥303.2
―
―
―
―
―
10.7
¥313.9

¥10.2
―
―
―
2.6
―
1.0
¥13.9

¥6.9
―
―
―
―
―
―
¥6.9

¥2,178.2
245.0
62.2
7.2
21.9
―
65.9
¥2,580.6¥310.1
―
―
―
―
―
10.7
¥320.8

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

57—Status of Capital Adequacy─Amount of Required Capital by Risk Weight Category─
Billions of yen

As of March 31, 2012

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥13.8
7.9
4.2
0.8
6.6
―
48.9
¥82.4

¥0.8
1.9
0.0
―
0.1
―
0.4
¥3.4

¥0.0
0.0
―
―
1.2
―
1.1
¥2.5

¥―
―
―
―
―
―
―
¥―

¥13.9
8.0
4.2
0.8
7.8
―
50.1
¥85.0

¥0.8
1.9
0.0
―
0.1
―
0.4
¥3.4
Billions of yen

As of March 31, 2011

Up to 20%
Up to 50%
Risk
Up to 100%
WeightUp to 250%
Up to 650%
Over 650%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥17.4
6.5
4.2
1.5
9.2
―
54.7
¥93.7

¥3.2
―
―
―
―
―
0.8
¥4.1

¥0.0
―
―
―
0.7
―
1.0
¥1.9

¥0.0
―
―
―
―
―
―
¥0.0

¥17.5
6.5
4.2
1.5
9.9
―
55.8
¥95.6

¥3.3
―
―
―
―
―
0.8
¥4.2

Note: “Exposure on resecuritizations” as of March 31, 2011 is based on the risk weight in the Basel 2 text.

─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31,

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

2012

Billions of yen
2011

¥―
42.2
―
―
―
―
¥42.2

¥―
―
―
―
―
―
¥―

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate creditrisk.

─Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of theConsolidated Capital Adequacy Ratio Notice─
As of March 31,

2012

Billions of yen
2011

Credit Risk-weighted Assets Calculated Pursuant to Article 15of Supplementary Provisions of the Consolidated Capital
Adequacy Ratio Notice¥―¥―

Status of Capital Adequacy—58

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

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, 2012 and 2011 were ¥60.1 billion and ¥55.7 billion, respectively.

○ Securitization Exposure as Originator (for Calculation of Market Risk Equivalent Amounts)(f) Information by Type of Underlying Assets
Billions of yen
As of, or for the Fiscal Year
ended, March 31, 2012

Traditional Securitizations
Amount of Underlying
Assets (a)Amount of Exposures
Securitized during the
Fiscal Year
Gains and Losses
Recognized on Sales
during the Fiscal Year
Securitization Subject to
Early Amortization
Treatment
Synthetic Securitizations
Amount of Underlying
Assets (b)Amount of Exposures
Securitized during the
Fiscal Year
Gains and Losses
Recognized on Sales
during the Fiscal Year
Total Amount ofUnderlying Assets(a)+(b)Residential
Mortgage
Credit
Loans
Cards

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

¥2,853.0――¥2,853.0

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

¥―

¥―

¥―

¥―

¥2,853.0¥―¥―¥2,853.0

Note: Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.

─Exposure Intended to be Securitized─
Billions of yen

As of March 31, 2012

Exposure Intended to be
Securitized

59—Status of Capital Adequacy

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

¥―

¥―

¥―

¥―

CorporateReal
EstateSecuritization
Products

Total

¥―

¥―

¥―

¥―

(g) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

Residential
Mortgage
Credit
Cards
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥―

¥―

¥―

¥―

¥10.9

¥―

¥―

¥10.9

―
―

―
―

―
―

―
―

―
66.3

―
―

―
―

―
66.3

―
¥―

―
¥―

―
¥―

―
¥―

―
¥77.3

―
¥―

―
¥―

―
¥77.3

―

―

―

―

―

―

―

―

―

―

―

―

0

―

―

0

―

―

―

―

0

―

―

0

Notes: 1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2 . “Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.

─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥4.4
4.2
2.2
―
―
―
0.0
¥10.9

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
66.3
―
¥66.3

¥―
―
―
―
―
―
―
¥―

¥4.4
4.2
2.2
―
―
66.3
0.0
¥77.3

¥―
―
―
―
―
―
―
¥―

Status of Capital Adequacy—60

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥0.0
0.1
0.1
―
―
―
0.0
¥0.4

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
1.8
―
¥1.8

¥―
―
―
―
―
―
―
¥―

¥0.0
0.1
0.1
―
―
1.8
0.0
¥2.2

¥―
―
―
―
―
―
―
¥―

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

─Subject to Comprehensive Risk Measure─
Billions of yen
As of March 31, 2012

Securitizations

Resecuritizations

¥―
¥―

¥―
¥―

Total Amount of Securitization Exposure
Total Amount of Required Capital─Capital Increase due to Securitization Transactions─
Billions of yen

As of March 31, 2012

Capital Increase due toSecuritization Transactions

CreditCards

Residential
Mortgage
Loans

¥―

¥―

Auto
Loans

Lease
Payment
Receivables

Corporate

¥―

¥―

¥―

Real
EstateSecuritization
Products

Total

¥―

¥―

¥―

○ Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL) (for Calculation ofMarket Risk Equivalent Amounts)(h) Information by Type of Underlying Assets
Billions of yen
As of, or for the Fiscal Year
ended, March 31, 2012

Amount of Underlying
AssetsEstimated Loss Amountrelated to Underlying
Assets during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year

61—Status of Capital Adequacy

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

(i) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥―

¥―

¥―

¥―

¥―

¥―

¥―

¥―

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
―

―
¥―

―
¥―

―
¥―

―
¥―

―
¥―

―
¥―

―
¥―

―
¥―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

Status of Capital Adequacy—62

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization Exposure as Investor (for Calculation of Market Risk Equivalent Amounts)(j) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2012

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations
Deducted from Capital
Exposure whose
Underlying Assets are
Overseas Assets

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateOthers

Total

¥0.7

¥1.4

¥0.4

¥0.6

¥21.7

¥8.8

¥3.2

¥37.1

―
―

―
―

―
―

―
―

―
―

―
―

0.3
―

0.3
―

―
¥0.7

―
¥1.4

―
¥0.4

―
¥0.6

―
¥21.7

―
¥8.8

―
¥3.2

―
¥37.1

―

―

―

―

―

―

0.3

0.3

―

1.2

―

0.5

10.0

1.1

0.3

13.3

0.7

0.9

0.4

―

0.0

2.6

1.0

5.9

Notes: 1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions
that are difficult to classify are included under “Others.”
2. “Credit cards” include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets ofeach transaction.
4. “Exposure on resecuritizations” are classified following Article 1, Paragraph 2-2 of the Consolidated Capital Adequacy Ratio Notice (hereinafter thesame).

─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

63—Status of Capital Adequacy

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥6.5
3.1
4.9
―
9.1
―
13.3
¥37.1

¥―
―
―
―
―
―
0.3
¥0.3

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

¥6.5
3.1
4.9
―
9.1
―
13.3
¥37.1

¥―
―
―
―
―
―
0.3
¥0.3

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2012

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

¥0.1
0.1
0.3
―
2.5

¥―
―
―
―
―
―
0.3
¥0.3

¥―
―
―
―
―
―
―
¥―

¥―
―
―
―
―
―
―
¥―

Up to 1.6%
Up to 4%Risk
Up to 8%
Capital
Up to 20%
ChargeUp to 52%
Over 52%
Deduction from Capital
Total

―
13.3
¥16.5

Total

¥0.1
0.1
0.3
―
2.5
―
13.3
¥16.5

Exposure on
Resecuritizations

¥―
―
―
―
―
―
0.3
¥0.3

─Subject to Comprehensive Risk Measure─
Billions of yen
As of March 31, 2012

Securitization

Resecuritiation

¥―
¥―

¥―
¥―

Total Amount of Securitization Exposure
Total Amount of Required Capital■ Market Risk
See pages 50 to 55 (Internal Control Systems) for information regarding market risk.

■ Operational Risk
See pages 55 to 59 (Internal Control Systems) 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 andprice fluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on a consolidated basis,and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices arevalued based on the average quoted market price over the month preceding the consolidated balance sheet date; othersecurities which have readily determinable fair values are valued at the quoted market price if available, or otherwise
based on their reasonable value at the consolidated balance sheet date (cost of securities sold is calculated primarily by
the moving average method); and other securities the fair values of which are extremely difficult to determine are statedat acquisition cost or amortized cost and determined by the moving average method.

Status of Capital Adequacy—64

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(16) Status of Equity Exposure in Banking Book(a) Amounts Stated in Consolidated Balance Sheet
Billions of yen
2012

As of March 31,

Consolidated
Balance Sheet
Amount¥2,615.0
247.7¥2,862.8

Exposure of Listed Stock, etc.
Other Equity Exposure
Total

2011

Fair Value

Consolidated
Balance sheet
AmountFair Value¥2,615.0/¥/¥2,761.0
276.8¥3,037.9¥2,761.0/¥/

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and Losses on Sales Related to Equity Exposure
Billions of yen
2012
For the Fiscal Year ended
March 31,2011

Gains and
Losses on
Sales

Gains on
Sales

Losses on
Sales

Gains and
Losses on
Sales

Gains on
Sales

Losses on
Sales

¥15.6

¥54.9

¥39.3

¥25.7

¥54.7

¥29.0

Sale of Equity
Exposure

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

(c) Gains and Losses from Write-Offs Related to Equity Exposure
Billions of yen
2012

2011

For the Fiscal Year ended March 31,

Gains and Losses from Write-offs

Gains and Losses from Write-offs

Write-offs of Equity Exposure¥ (49.3)¥ (94.4)

Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized Gains and Losses Recognized in the Consolidated Balance Sheet and Not Recognized in
the Consolidated Statement of Income
Billions of yen
2012
As of March 31,

Equity Exposure

2011

Net Unrealized
Gains

Unrealized
Gains

Unrealized
LossesNet Unrealized
Gains

Unrealized
Gains

Unrealized
Losses¥178.4¥480.3¥301.8¥241.3¥491.4¥250.0Note: The above figures include only Japanese and foreign stocks.

(e) Unrealized Gains and Losses Not Recognized in the Consolidated Balance Sheet or in theConsolidated Statement of Income
None as of March 31, 2012 and 2011.

(f) Equities Exposure by Portfolio Classification
As of March 31,

PD/LGD Approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)Transitional Measure Applied
Total

65—Status of Capital Adequacy

2012¥964.4274.2―
2,118.8¥3,357.6

Billions of yen
2011¥1,037.1
285.3―
2,207.9¥3,530.3

■ Compensation of Directors, Corporate Auditors and Employees(17) Qualitative Disclosure(a) State of the Organizational System Relating to Compensation of Subject Directors, Corporate
Auditors and Employees of Mizuho group
1. Subject Directors, Corporate Auditors and Employees “Subject Directors and Corporate Auditors” and “Subject
Employees, etc.,” subject to disclosure as provided for in the FSA Notice No. 21 of 2012 (collectively, Subject Directors,
Corporate Auditors and Employees) are as follows:(1) Subject directors and corporate auditors
Subject directors and corporate auditors are directors and corporate auditors of Mizuho Financial Group, Inc. (MHFG).
Outside directors and outside corporate auditors are excluded.
(2) Subject employees, etc.
Subject employees, etc., are employees of MHFG, and directors, corporate auditors and employees of its major
consolidated subsidiaries, other than subject directors and corporate auditors, who are “persons who receive large
amounts of compensation” and materially affect the operation of business or the state of assets of MHFG or its major
consolidated subsidiaries, and are therefore subject to disclosure. The above does not include Subject directors or
corporate auditors.
(a) Major consolidated subsidiaries
A major consolidated subsidiary is an entity whose total assets as a percentage of consolidated total assets
exceeds 2% of a bank holding company or bank or is an overseas local entity that conducts banking businesssimilar to a branch. Specifically, it includes Mizuho Bank, Ltd. (MHBK), Mizuho Corporate Bank, Ltd. (MHCB),
Mizuho Corporate Bank (USA), Mizuho Trust & Banking Co., Ltd. (MHTB), Mizuho Securities Co., Ltd. (MHSC),
Mizuho Securities USA Inc., and Mizuho International Plc.
(b) Persons who receive large amounts of compensation
A person who receives large amounts of compensation refers to a person who receives compensation thatexceeds the base amount from MHFG or its major consolidated subsidiaries. The base amount at MHFG has been
set at ¥45 million. Such base amount has been set based on the average amounts of the compensation of
directors and corporate auditors of MHFG, MHBK, MHCB and MHTB for the last three fiscal years (excluding
persons who resigned or retired during each of such fiscal years), taking into account fluctuations in amounts ofcompensation over past fiscal years. The preceding base amount has been adopted as the common base in orderto unify the selection criteria of persons who receive large amounts of compensation at each of the companies inthis paragraph.
(c) Persons who materially affect the operation of business or the state of assets of Mizuho group
A person who materially affects the operation of business or the state of assets of Mizuho group means a person
who exerts significant influence on the operation of the business of MHFG or a major consolidated subsidiarythrough their work in conducting transactions or management, or who materially affects the state of assets byincurring losses on transactions. Specifically, it includes executive officers of MHFG and directors, corporate
auditors, executive officers, and market department employees of major consolidated subsidiaries.
2. Decisions on Compensation of Subject Directors, Corporate Auditors, and Employees(1) Decisions on compensation of subject directors, and corporate auditors
The compensation committee, which advises the board of directors of MHFG, is composed of three outside directors
and one in-house director (the President & CEO of MHFG). The committee discusses basic policies in determining
the compensation of directors and executive officers of MHFG, MHBK, MHCB, MHTB and MHSC, the compensation
system, and the amounts of compensation, and the president & CEO of MHFG reports to the board of directors of
MHFG and notifies each of the above companies of the results of the Committee’s discussions. Based on the resultsof discussions by the compensation committee of MHFG, each of the above companies, including MHFG, decides its
own policies in determining compensation for directors and executive officers, compensation systems, and amountsof compensation.
The compensation of corporate auditors is decided through discussion among corporate auditors within the scope ofthe total amount of corporate auditors’ compensation decided at our ordinary general meeting of shareholders.

Status of Capital Adequacy—66

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Decisions on compensation of subject employees, etc.
Matters relating to executive officers of MHFG and directors, corporate auditors and executive officers of MHBK,MHCB, MHTB and MHSC are as set out in (1) Decisions on compensation of subject directors and corporate auditors.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the major consolidated subsidiaries. Such system is designed and put into writing by thehuman resources departments of MHFG and the major consolidated subsidiaries which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Decisions on Compensation of Employees in Risk management departments and compliance departments
The compensation of employees in risk management departments and compliance departments is decided inaccordance with the salary and bonus system, and specific payment amounts are conclusively determined in accordancewith employee performance evaluations made by the relevant department and the human resources department,
independent from departments furthering business. Each employee of the risk management departments and thecompliance departments sets their own items for evaluation in the employee performance evaluations, subject to theapproval of their superiors. The degree to which the items are fulfilled is evaluated taking into account the degree of theemployee's contribution to risk-management and compliance.
4. Total Amount of Compensation Paid to Members of the Compensation Committee and Number of Meetings Held by theCompensation Committee
Number of Meetings Held
(April 2011 – March 2012)
Compensation Committee
4(Holding Company)
Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts thatare paid as consideration for the execution of duties by the compensation committee.

(b) Evaluating the Appropriateness of the Design and Operation of the System Relating toCompensation of Subject Directors, Corporate Auditors, and Employees of Mizuho group
1. Policies Relating to Compensation(1) Policies relating to compensation of subject directors and corporate auditors
Mizuho group has been endeavoring to ensure quality and stable revenue and to increase its corporate value while
fulfilling our social responsibilities and accomplishing our public mission. In addition, Mizuho group practices its“customer first policy”, and as a full-service global financial group, endeavors to provide the highest-quality services at
all times, with the aim of becoming “the Most Trusted Financial Institution”.
In determining the compensation for directors and corporate auditors of MHFG, our basic policy is to set anappropriate level based on business performance over the medium to long term, compensation levels of directors andcorporate auditors in other companies, including those in the same industry, economic and social conditions, as wellas the roles and responsibilities of directors and corporate auditors in contributing to the realization of our previously
mentioned objectives.
In addition, we have designed the compensation system with the aim of restraining excessive risk-taking andincreasing the consistency of the compensation scale of our directors and corporate auditors with the Mizuho group’s
goals.
The subjects of these compensation policies are directors and corporate auditors, and the policy for our directors isdetermined by a resolution of the board of directors of MHFG, while the policy for our corporate auditors is determinedby consultation among the corporate auditors of MHFG.
Further, MHFG, MHBK, MHCB, MHTB and MHSC all have the same basic policies as described above.
(2) Policies relating to compensation of subject employees, etc.
The policies relating to compensation for executive officers of MHFG, MHBK, MHCB, MHTB and MHSC are also thesame as the policies described in (1) Policies relating to compensation of subject directors and corporate auditors
above.

67—Status of Capital AdequacyCompensation for other employees, etc., is determined in accordance with their duties and responsibilities. Somebonuses that are linked to performance are determined after comprehensively evaluating the employee’s contribution
to business, including any qualitative contributions to the organization, in a manner that does not place an excessiveemphasis on results.

2. The Effect of the Overall Level of Compensation, etc., on Equity Capital
The compensation committee of MHFG receives reports on the amount of compensation paid to directors and executive
officers of MHFG, MHBK, MHCB, MHTB and MHSC in the previous fiscal year and confirms that there is no material
effect on the Mizuho group’s performance or the adequacy of equity capital.

(c) Compatibility between System for Compensation of Subject Directors, Corporate Auditors, andEmployees of Mizuho group and Risk Management and Matters Relating to Linking Compensation
with Performance
There was no compensation linked to business performance paid to any director of MHFG, MHBK, MHCB, MHTB and
MHSC in the fiscal year ended March 31, 2012. If there are any decisions regarding the calculation method and payment
amounts of performance-linked compensation for executive officers of any of the above companies, we will take into
account not only the profits for the period but also the various risks according to each executive officer, including
evaluating the business results based on the capital costs and credit costs attributable to the business handled andmaking adjustments based on other qualitative evaluations.
There is no system of performance-linked compensation for corporate auditors.
In addition, the compensation committee of MHFG receives reports on the compensation system, etc., from MHFG,MHBK, MHCB, MHTB and MHSC as necessary in light of confirming the status of compliance with Japanese andoverseas regulations on compensation and provides its opinion to the companies above.

Status of Capital Adequacy—68

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(18) Quantitative Disclosure Items(a) Matters Relating to Types and Total Amounts of, and Payment Method for, Compensation of Subject
Directors, Corporate Auditors, and Employees of Mizuho group─Total Amount of the Compensation, etc., of Subject Directors, Corporate Auditors and Employees─
Millions of yen

For the Fiscal Year ended March 31, 2012

Number of
Persons

Subject Directors and Corporate
Auditors (Excluding Outside
Directors and Outside
Corporate Auditors)
Subject Employees, etc.
Overseas Employees, etc.

13
140
124

Total Amount Total Amountofof Fixed
Compensation Compensation¥468
11,71910,713

¥468
4,445
3,887

Base
Compensation

Stock
Compensationtype Stock
Options

Others

¥392
3,560
3,071

¥74
81
13

¥2
803
801
Millions of yen

For the Fiscal Year ended March 31, 2012

Subject Directors and Corporate
Auditors (Excluding Outside
Directors and Outside
Corporate Auditors)
Subject Employees, etc.
Overseas Employees, etc.

Total Amountof Variable
Base
Compensation Compensation

¥―
7,183
6,753

¥―
―
―

Bonus

OthersRetirement
Benefits

Others

¥―
7,182
6,753

¥―
0
0

¥―
18
―

¥―
73
73

Notes: 1. Amounts of compensation of subject directors and corporate auditors include amounts of compensation received for duties performed as a director
or corporate auditor of a major consolidated subsidiary.
2. Total amount of fixed compensation includes ¥155 million of deferred compensation that arose during the fiscal year ended March 31, 2012 (subject
directors and corporate auditors: ¥74 million; subject employees, etc. : ¥81 million). The amount of fixed compensation deferred prior to the fiscal
year ended March 31, 2012 and paid during the fiscal year ended March 31, 2012 was ¥261 million (subject directors and corporate auditors: ¥219
million; subject employees, etc. : ¥42 million) and the outstanding amount as of March 31, 2012 was ¥348 million (subject directors and corporate
auditors: ¥155 million; subject employees, etc. : ¥192 million).
3. Total amount of variable compensation includes ¥1,050 million of deferred compensation that arose during the fiscal year ended March 31, 2012, allof which was for Subject Employees, etc., and could in the future be taken back in the event of poor business results or other detrimental factors.
The amount of variable compensation deferred prior to the fiscal year ended March 31, 2012 and paid during the fiscal year ended March 31, 2012was ¥304 million (subject employees, etc. : ¥304 million) and the outstanding amount as of March 31, 2012 was ¥1,050 million (subject employees,
etc. : ¥1,050 million).
4. Total amount of compensation for subject employees, etc., includes ¥1,210million of guaranteed amount for retention, etc. (number of subject
persons: 12), and ¥59 million of allowance for termination and resignation (number of subject persons: 4).
5. The exercise periods of the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option
agreements, exercise of the options is postponed, even during the exercise period, until the time of retirement of the director or employee.
Exercise Period
First Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
from February 17, 2009 to February 16, 2029
Second Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
from September 28, 2009 to September 25, 2029
Third Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
from August 27, 2010 to August 26, 2030
Fourth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
from December 9, 2011 to December 8, 2031(b) Other Relevant Matters Relating to Our System of Compensation for Subject Directors, Corporate
Auditors and Employees of Mizuho group
There are no relevant matters in particular other than those set out in the preceding paragraphs.

69—Status of Capital Adequacy

12AR̲H2̲3̲120831̲1st.qxd 12.9.4 3:28 PM ページ1

Contact Information

Corporate 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 approximately 56,000 staff working in approximately 920 offices inside and outside Japan, and total
assets of over US$2.0 trillion (as of March 2012).

Mizuho Financial Group, Inc.

The group was created in September 2000 through the establishment of a holding company of 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 major group companies include Mizuho Corporate Bank (MHCB), Mizuho Bank (MHBK),
Mizuho Trust & Banking (MHTB), Mizuho Securities (MHSC) and Mizuho Investors Securities (MHIS).
MHCB and MHBK transformed into “substantive one bank” structure in April 2012 prior to the legal merger scheduled on July

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/

1, 2013 (the trade name after the legal merger: Mizuho Bank, Ltd.). MHSC and MHIS plan to merge on January 4, 2013 (thetrade name after the merger: Mizuho Securities Co., Ltd.).
*The mergers between MHCB and MHBK as well as between MHSC and MHIS are planned to be conducted on the assumption that filings will have been
made to, and permission obtained from, the relevant authorities in Japan and any foreign countries.

Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)
Millions of yen
2012

For the Fiscal Years ended March 31,

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

¥

2011

2,808,555
2,092,106
716,449484,519
152,760¥

Thousands of U.S. dollars
2012

2,777,034
2,141,608
635,425
413,228140,097$

34,192,304
25,470,008
8,722,296
5,898,705
1,859,756*Non-consolidated basis.

Millions of yen
2012

As of March 31,

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Net Assets¥ 165,360,501
51,392,878
63,800,509
90,636,656
6,869,295

2011

Thousands of U.S. dollars
2012¥ 160,812,006
44,782,067
62,777,757
88,884,158
6,623,999$ 2,013,154,392
625,674,198
776,728,868
1,103,441,156
83,629,112

2011

U.S. dollars
2012

Yen
For the Fiscal Years ended March 31,

2012

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

¥

20.62

¥

20.47

$

0.25

6.00

6.00

0.07

20.00
30.00

20.00
30.00

0.24
0.37

Mizuho Corporate Bank, Ltd.
1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.mizuhocbk.com/

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/*Non-consolidated basis.

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)

2012

2011

15.50%

15.30%

Mizuho Securities Co., Ltd.

Ratings
As of July 31, 2012

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+

—
A1
A1
A1
A2*
—

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.).

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/“News Release E-mail Distribution• MHFG's
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 placedon 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.”