Profile
The Mizuho Financial Group is one of the largest financial institutions in the world, offering a broad range of financial services
including banking, securities, trust and asset management, credit card, private banking, venture capital through its groupcompanies. The group has over 50,000 staff working in approximately 950 offices inside and outside Japan, and total assets ofover $1.5 trillion (as of March 2009). The group was created in September 2000 through the establishment of a holding companyof our three predecessor banks, The Dai-Ichi Kangyo Bank (DKB), The Fuji Bank (Fuji) and The Industrial Bank of Japan (IBJ). Under
the umbrella of the holding company Mizuho Financial Group, our principal group companies include Mizuho Corporate Bank,
Mizuho Bank, Mizuho Securities* and Mizuho Trust & Banking.
*The former Shinko Securities and the former Mizuho Securities merged as of May 7, 2009 (the new company name: Mizuho Securities).

Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)
Millions of yen
2009

For the Fiscal Years ended March 31,

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

¥

2008

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

Thousands of U.S. dollars
2009

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

35,991,919
40,122,563(4,130,644)(5,992,410)
1,333,358*Non-consolidated basis.

Millions of yen
2009

As of March 31,

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Net Assets¥ 152,723,070
30,173,632
70,520,224
86,539,020
4,186,606

2008

Thousands of U.S. dollars
2009¥ 154,412,105
33,958,537
65,608,705
86,264,041
5,694,159$ 1,554,275,096
307,079,507
717,690,050
880,714,637
42,607,434

2008

U.S. dollars
2009

Yen
For the Fiscal Years ended March 31,

2009

Per Share of Common StockNet Income (Loss)
Cash Dividends per Share*
Common Stock
Preferred Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock¥(54.14)¥25,370.25$(0.55)

10

10,000

0.10

20
30

20,00030,0000.20
0.31*Non-consolidated basis.

As of March 31,

Capital Adequacy Ratio (BIS Standard)

2009

2008

10.53%

11.70%

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

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

A
A+
A+
A+
A+
A+

a–1
a–1
a–1
a–1
a–1
—

—
AA–
AA–
AA–
AA–
AA–

—
—
—
—
J–1+
J–1+

—
Aa3
Aa3
Aa3
Aa3*
—

P–1
P–1
P–1
P–1
P–1*
—

A
A+
A+
A+
—
—

—
A–1
A–1
A–1
—
—

A
A
A
A
—
—

F1
F1
F1
F1
—
—

*Credit ratings for EMTN programme (Joint Medium-term Note Programme with Mizuho International, based on keepwell agreement with Mizuho Corporate Bank).
(As of August 31, 2009)

2009 Mizuho Financial Group Annual Review
Contents

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

2

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

6

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

8

Securities, Trust and Asset Management Business Strategies

10Management Structure

12

Business Outline

13

Office Network

14

Business Approaches Adopted by Each Global Group

16

Initiatives to Strengthen Cooperation among Group Companies

40

CSR Activities

42

Brand Strategy

44Management Systems

46

Internal Control Systems

51

Financial Analysis [Under Japanese GAAP]

69

Financial Data of Mizuho Financial Group, Inc. [Under Japanese GAAP]111

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

171

Status of Capital Adequacy

191

Senior Executives

235

Location of Overseas Offices

236

Investor Information

239

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

Forward-Looking Statements
This Annual Review contains statements that constitute forward-looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking statements do not represent any guarantee by management of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,””plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,“ ”target“ and similar expressions in relation to us or our management to
identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Thesestatements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range ofpossible reasons, including, without limitation: the incurrence of significant credit-related costs; declines in the value of our securities portfolio,
including as a result of the declines in stock markets and the impact of the dislocation in the global financial markets stemming from U.S. subprime loan issues; changes in interest rates; foreign exchange rate 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 forhedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; the effect ofchanges in general economic conditions in Japan and elsewhere; our ability to avoid reputational harm; and the effectiveness of our operation,legal and other risk management policies.
Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key
Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our latest annual report on Form 20-F filed with
the U.S. Securities and Exchange Commission (“SEC”). In addition, information regarding market developments after March 31, 2009 and theireffects on our financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 31, 2009 containing financial information for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC's web site at www.sec.gov.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter
our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of
the Tokyo Stock Exchange.

1

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

are determined to continue the same, although theway forward will not be easy. All the management andemployees of our group are working as one to increase
our group's corporate value and are striving to be “Afinancial partner that helps customers shape their
future and achieve their dreams.”

Financial Results for Fiscal 2008
Income Analysis
Consolidated gross profits for fiscal 2008 increased by¥146.0 billion to ¥1,806.9 billion, compared with theprevious fiscal year, due to the recovery in performanceof Mizuho Securities, which had recorded significant
losses for the previous fiscal year.
Gross profits of Mizuho Corporate Bank, Mizuho
Bank and Mizuho Trust & Banking (the Three Banks)
decreased by ¥235.8 billion, to ¥1,485.9 billion. Thiswas mainly because of decreases in income related tobusiness with domestic corporate customers (small andmedium-sized enterprises (SMEs) and middle-market
I was appointed President & CEO of Mizuho Financial

corporations), fee income associated with sales ofGroup in April 2009. I would like to take this opportu-

investment trusts and individual annuities, fee andnity to express my sincerest thanks for your continued

commission income from overseas business that wasinterest in and support of our group.

affected by the turmoil in the global financial markets,

Reviewing fiscal 2008, the global economy contin-

and income from the trust and asset management

ued to struggle as the financial crisis started to impact

business of Mizuho Trust & Banking, which was influ-

the real economy. Even in view of the continuing chal-

enced by domestic real estate market conditions.

lenging business environment, we believe a number ofConsolidated net business profits*1 increased byissues have been raised for the entire financial services¥111.4 billion, to ¥622.6 billion, compared with theindustry to address. Among them, in the wake of theprevious fiscal year, despite an increase in general and“turbulence” experienced in financial markets, whereadministrative (G&A) expenses, mainly those associatedhighly leveraged business activities had been a key

with employee retirement benefits.

focus, the significance of customer-oriented businessagain has been reaffirmed and emphasized.

2

Consolidated net loss for fiscal 2008 amounted to¥588.8 billion, which was a decline of ¥900.0 billion

This corresponds with our returning to the basics ofcompared with consolidated net income in the previous

our business model and directing our managerial

fiscal year. In addition to the previously mentioned fac-resources toward customer-driven business to fully uti-

tors, this net loss was primarily due to an increase inlize Mizuho's solid customer base, especially in Japan.

both domestic and overseas credit-related costs, mainly

In this regard, it is of utmost importance for us to beagainst the backdrop of the sharp economic downturn,able to offer financial services and solutions that accu-

and the conservative provision of reserves in light of therately and swiftly meet the needs of our customers.

uncertainty regarding future trends in the economic

We have, thus far, responded successfully toenvironment. Other factors accounting for the net losschanges in the times and the operating environment by

included the recording of losses associated with theimplementing reforms on our own initiative, and we

sharp declines in both domestic and overseas stockprices (¥514.1 billion of devaluation of stocks for the

Net interest income of the Three Banks for fiscal

Three Banks, of which ¥418.5 billion was recorded in2008 amounted to ¥968.8 billion, an increase of ¥14.8

the second half), continuously recorded losses on securi-

billion compared with the previous fiscal year, due totization products and others resulting from the global

the growth in our international operations, while that infinancial market turmoil, and the effect of conservative

our domestic operations declined slightly due to factors

estimates of future profits in relation to the calculationthat included a decrease in returns on securities.

of deferred income taxes.
*1. Consolidated net business profits = consolidated gross profits –G&A expenses (excluding non-recurring losses) + equity in income
from investments in affiliates and certain other consolidation
adjustments.

 Net Interest Income
The average loan balance of the Three Banks for the
first half and the second half of fiscal 2008 increased
respectively, mainly driven by the growth in the balanceof loans of domestic branches.
Although the domestic loan-and-deposit rate margin(total for Mizuho Corporate Bank and Mizuho Bank) for
the second half of fiscal 2008 was 1.46%, an improvement over the first half, mainly enhanced by increased
margins at Mizuho Corporate Bank, the figure for thefull fiscal year remained almost flat compared with theprevious fiscal year.
Loan Balance
Loan balance (*2)

Loan-and-deposit rate margin (*3)(Loan balance: trillions of ¥)75.0(Loan-and-deposit rate margin: %)1.50

 Non-Interest Income
Net fee and commission income of the Three Banks forfiscal 2008 decreased by ¥52.5 billion, to ¥299.2 billion,
compared with the previous fiscal year.
As for our business with individual customers, fee
income associated with sales of investment trusts andindividual annuities was significantly lower than that in
the previous fiscal year, due to stagnant stock market
conditions and other factors.
As for our business with corporate customers,
although fee and commission income associated withdomestic syndicated loans increased compared withthe previous fiscal year, fee and commission income
primarily from solution-related business for SMEs andmiddle-market corporations, foreign exchange business, and overseas business decreased. Profits from thetrust and asset management business of Mizuho Trust& Banking also decreased.
Net Fee and Commission Income (The Three Banks)(billions of ¥)
450

70.0

1.40

65.0

1.30

400

–49.1
350

–52.5
1.20

60.0

0

Fiscal2006(firsthalf)

Fiscal2006(secondhalf)

Fiscal2007(firsthalf)

Fiscal2007(secondhalf)

Fiscal2008(firsthalf)

Fiscal2008(second
half)

0

Loan
¥63.5 tn. ¥65.0 tn. ¥65.1 tn. ¥64.3 tn. ¥65.8 tn. ¥68.0 tn.
balance
Loan-and1.31% 1.37% 1.44% 1.47% 1.44% 1.46%
deposit1Q 1.29% 3Q 1.35% 1Q 1.44% 3Q 1.47% 1Q 1.46% 3Q 1.45%
rate
margin(*4) 2Q 1.32% 4Q 1.39% 2Q 1.44% 4Q 1.48% 2Q 1.43% 4Q 1.46%

300
250
0

Net Fee andCommission
IncomeFiscal 2006

Fiscal 2007

Fiscal 2008

¥400.8 bn.

¥351.7 bn.

¥299.2 bn.

Financial Soundness*2. Aggregate average balance of the Three Banks for the period,
excluding trust account and loans to MHFG.

Although our non-performing loan ratio of the Three*3. Aggregate figures of domestic operations of MHCB and MHBK
after excluding loans to MHFG, Deposit Insurance Corporationof Japan and the Japanese Government.

vious fiscal year, our net non-performing loan ratio*5,*4. 1Q: the first quarter, 2Q: the second quarter, 3Q: the third quarter, 4Q: the fourth quarter.

Banks was 1.77%, an increase compared with the prewhich reflects the effects of reserves for possible losses
on loans, remained at a low level of 0.73%, a decrease3

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

of 0.10% compared with the previous fiscal year, andwe have maintained sufficient financial soundness.
We recorded unrealized losses*6 of ¥572.3 billion
on other securities on a consolidated basis due to thedeclines in stock market prices.
We maintained our consolidated capital adequacy
ratio (Basel II BIS standard) at above the 10% level,
which was 10.53% as of March 31, 2009. We haveapplied the advanced internal ratings-based (AIRB)
approach to the measurement of credit risk fromMarch 31, 2009.
As of March 31, 2009, the balance of securitization

 Enhancement of Our Prime Capital
In July 2009, we decided to issue up to 3.0 billion
shares of our common stock (with a corresponding
total paid in value of ¥529.2 billion) so as to enhance
our prime capital, the capital element which has astronger ability to absorb losses in Tier 1 capital (coreitems in calculating the capital ratio).
Our decision is aimed at securing a solid and sufficient capital buffer in preparation for a further adverse
business environment and enhancing the flexibility torecapture business opportunities with our solid customer base to lead to our sustainable growth.

products for the group in total amounted to ¥3.3 trillion, of which the total balance of foreign currency
denominated securitization products amounted to¥0.6 trillion.
*5. Net non-performing loan ratio = (Disclosed claims under the
Financial Reconstruction Law (FRL) – Reserves for possible losses
on loans) / (Total claims – Reserves for possible losses on loans)*6. The base amount to be recorded directly to net assets after tax
and other necessary adjustments.

Disciplined Capital Management
 Repurchase and Cancellation of Our Common
SharesWe are pursuing “strengthening of a stable capitalbase” and “steady returns to shareholders” under our“disciplined capital management.” In July 2008, werepurchased our common shares of ¥150.0 billion andcancelled almost all of them in September 2008 for the
purpose of offsetting the potential dilutive effect of ourcommon shares from the conversion of the Eleventh
Series Class XI Preferred Stock.
However, in light of various factors including thecurrent financial market turmoil and global economic
downturn, we have been putting more priority on“strengthening of a stable capital base” since the second half of fiscal 2008 to prepare for a further adverse
condition in the business environment. We will continue to focus on strengthening our capital base as ourcurrent management priority since it has become more
important for financial institutions to maintain sufficient capital amid the prolonged stagnation of both
domestic and overseas economies.

 Strengthening of Our Capital Base throughIssuance of Non-Dilutive Preferred Securities
and Other Instruments
We issued non-dilutive preferred securities amounting
to ¥303.0 billion in July 2008, ¥355.0 billion in
December 2008, and US$850 million in February 2009,
respectively, through our overseas special purpose
companies, so as to enhance our group's capital basein light of the current financial market turmoil, in addition to securing the agility and improving the flexibilityof our capital strategy. In addition, in December 2008
and March 2009, Mizuho Bank and Mizuho Corporate
Bank made their first issues of dated subordinatedbonds for domestic individual investors, for a total of¥200.0 billion.
Furthermore, we issued non-dilutive preferred securities of ¥139.5 billion in June 2009 in the domestic
market.
Meanwhile, we redeemed non-dilutive preferred
securities of ¥176.0 billion which became redeemableat the issuer's option in June 2009.

Mizuho Initiatives
I will now report the initiatives of our three global
groups and corporate management. The three global
groups organized based on customer needs are working to leverage their respective strengths and promote close cooperation to provide customers with thehighest-quality financial services.
In the Global Corporate Group, Mizuho Corporate
Bank has largely completed the establishment of its

4

overseas network and has developed strategic relation-a broad range of trust business services to the cus-

ships with leading financial institutions in countries

tomers of Mizuho Bank and other group companies.

around the world. Mizuho Corporate Bank has also

The Global Asset & Wealth Management Group is

endeavored to provide a smooth supply of funding

offering full-scale private banking and high-quality

through syndicated loans and other loan products. In

asset management services.

the securities business, in May 2009, former Mizuho

In the area of internal controls, we are implement-

Securities, which was strong in the wholesale market,

ing initiatives to enhance internal control systems inand Shinko Securities, which had strengths in the mid-

compliance with Japan's Financial Instruments anddle and retail market, merged to form the new

Exchange Law, promoting customer protection, andMizuho Securities. Taking into account deregulatory

strengthening our compliance frameworks. In order todevelopments, Mizuho Corporate Bank and the newpromote corporate social responsibility (CSR), we have

Mizuho Securities will continue to strengthen their

engaged in activities including reducing the environ-cooperation going forward.

mental burden of our operations, providing support forIn the Global Retail Group, Mizuho Bank has coop-financial education, maintaining and preserving theerated more closely with Mizuho Investors Securities

natural environment through our business activities,

and Mizuho Trust & Banking and strengthened its

and creating barrier-free layouts in our offices. Also, as

branch network and branch support systems to provide

part of our brand strategy, we are actively conveying

highly convenient services for individual customers. In

our “Channel to Discovery” brand slogan inside andaddition, Mizuho Bank is striving to enhance theoutside the group to heighten awareness of this slogan.

Mizuho Mileage Club and other services, and, as partof its security measures, has upgraded its Internet

We are working to provide the highest-quality

banking log-in identification systems. Looking ahead,financial services to our customers by returning toMizuho Bank will strengthen its marketing initiatives

the basics of our business as a financial institution,

and, to meet the increasingly diverse and sophisticatedwhich are to “contribute to increasing customers'

financial needs of its customers, will expand its remotevalue” with the watchwords of “customer-oriented,”

service delivery channels and enhance the quality of its“frontline-oriented,” and “future-minded.”financial consulting and other services.
For SMEs and middle-market corporations, Mizuho

July 2009

Bank is responding quickly to their demand for funding
and sincerely regards providing a smooth supply offunds to these companies as part of its role as a financial institution in society. In addition, Mizuho Bank isoffering a broad range of business solutions to help

Takashi Tsukamoto

customers address the issues they are facing and taking

President & CEO

aggressive initiatives to assist them in business restruc-

Mizuho Financial Group, Inc.

turing in today's difficult economic environment.
In the Global Asset & Wealth Management Group,
Mizuho Trust & Banking has taken a range of initiatives, including the development of new products, theestablishment of additional offices specializing in offering advisory services, training staff to become highly
specialized personnel, and strengthening its businesspromotion staff. Also, through personnel exchanges
with Mizuho Bank, Mizuho Trust & Banking is offering

Notes: 1. The above message, which was prepared prior to ourannouncement of our financial results for the first quarterof fiscal 2009, contains statements that constitute forwardlooking statements within the meaning of the UnitedStates Private Securities Litigation Reform Act of 1995. See
the disclaimer at the bottom of page 1 of this Annual
Review for information regarding factors that could cause
actual results to differ from those in the forward-looking
statements.
2. In August 2009, we completed issuing 3.0 billion shares ofour common stock.

5

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

Aiming to Be a Top Corporate Finance Provider

we will offer financial solutions that meet the needs ofour customers in Japan and around the world and will
aim to become “a top corporate finance provider.”The Fiscal Year in Review
During the fiscal year ended March 31, 2009, we monitored the uncertain market environment and allocatedour corporate resources selectively and flexibly.
We continued to expand our overseas network,
principally in the growth markets of Asia. Mizuho
Corporate Bank (China) opened branches in Qingdao andGuangzhou, and in March 2009 we became the firstJapanese bank to open a branch in the inland region ofChina, in Wuhan. In other areas, we opened a branch in

Our Goal Is to Be a Bank that Is
Trusted and Strongly Supported by
Our Customers and Markets in Japanand around the World.

Taichung and a sub-branch in Kowloon in Hong Kong.
Also, Mizuho Corporate Bank Nederland set up a representative office in Madrid. For the time being, these
additions have concluded our active drive in recent
years to enhance our overseas network. Moreover, tostrengthen our capabilities for supporting our customers

I have been appointed President & CEO of Mizuho

in the expansion of their overseas operations, we have

Corporate Bank and would like to thank all of you forestablished cooperative relationships with government

your continuing support.

organizations in countries around the world.

Today's unprecedented financial crisis, which someIn our investment banking business, as a result of

have described as once in 100 years, has forced theobtaining financial holding company (FHC) status in thefinancial community to confront more serious condi-

United States, we are now positioned to provide inte-

tions than any it has experienced in the past. A number

grated commercial banking and investment bankingof financial institutions in Europe and the United States

services. As we have developed these activities, Mizuho

have been placed under government control, and the

Securities USA has become the first Japanese-affiliatedvery structure of the financial services industry has

investment bank to secure co-lead manager positions

been redrawn, as reflected in the virtual disappearance

for bond issues of US-based corporations, and isof institutions specializing in investment banking.

steadily expanding its record of accomplishments.

Amid the recent turmoil in financial markets, certain

Additionally, in view of the accelerated tempo of theinvestment banking services are expected to shrink inglobal expansion and development of the businessscale, including those related to securitization and col-activities of our Japanese customers, in August 2008,

lateralized debt obligations (CDOs). However, in view

we invested in and, together with Mizuho Securities,of the growth in customers' financial service needs,

concluded a strategic alliance with Evercore Partners, aalong with expansion in their business operations andUS-based investment banking company specializing in

the ongoing trend toward globalization, we must con-

M&A, with the aim of enhancing our capabilities fortinue to strengthen and promote our international

offering cross-border M&A advisory services.

strategy as well as the development of our traditional

As a consequence of the financial crisis and market

investment banking services, including M&A advisory

turmoil, our customers are returning to bank financing

services, underwriting of bonds and equities, and sales

to meet their funding needs. To be ready to provide in-and trading.

depth responses to their requirements, we are continu-

By strengthening and combining our commercial
banking and traditional investment banking operations,6

ing to focus on offering a smooth supply of funds andsyndicated loan arrangements.

Turning to Fiscal 2009

Mizuho Securities, will work to further strengthen our

Even in the midst of today's challenging economic envi-

business activities as a group.

ronment, encouraging signs of positive change are

Nurturing significantly stronger human resources is

emerging in the industrial sector. In addition to busi-

essential for sustainable corporate growth. Accordingly,

ness restructuring and realignments, our customers are

we are fully aware that training personnel with strate-

expanding their overseas business activities, acquiring

gic expertise and drawing on the capabilities of acompanies in other countries, and developing new

diverse range of human resources is of crucial impor-technologies and industries as they look to the nexttance. We want to have our personnel, regardless ofgeneration of products and services. Along with theseage, gender, or nationality, grow through the acquisi-

developments, the financial needs of customers aretion of experience, skills, and professional expertise, andbecoming significantly more diverse, sophisticated, andwe want to further develop the frameworks that will

global in scope. We believe that it will be important forencourage them to focus their full efforts on working.

us to grasp and respond to these needs quickly and

In addition, we regard the creation of sophisticatedaccurately. We have structured our business promotion

compliance structure suited to our business model as aorganization along industry lines and have stationed

high-priority management issue. Therefore, to respondindustry experts from our Industrial Research Division into the revisions in firewall regulations, we will work to

our offices worldwide. This enables us to identify

structure an even more sophisticated framework,changes in the industrial structure and customer needs

based on a full awareness of our social responsibilities

and then offer comprehensive financial solutions thatas a financial institution.

meet the needs of individual corporations.
In May 2009, we merged Mizuho Securities, which

The operating environment for financial institutions

is strong in the wholesale market, and Shinko

is still uncertain and must be monitored carefully. At

Securities, which has strengths in the middle and retailMizuho Corporate Bank, we believe that now is themarket, thereby creating a full-line securities andtime to remind ourselves of our reason for being as ainvestment banking company within the group. Also,

financial institution, which is “to financially support thealong with the implementation of revisions in Japan's

industries of Japan and the world.” Our aim is to be a

Financial Instruments and Exchange Law in June 2009,

bank that wins the trust and strong support of our cus-

the firewall restrictions separating banking and securi-

tomers and markets in Japan and around the world byties activities have been reviewed and revised. While

providing high-quality, sophisticated, and diverse

strictly observing legal regulations, we have introduced

financial solutions.

a system that allows relationship managers in certain
business promotion sections to hold posts concurrently

July 2009in Mizuho Corporate Bank and Mizuho Securities. As aresult, those relationship managers holding posts concurrently can offer the full range of banking and securities services and thus provide significantly more conve-

Yasuhiro Satonient services for customers. This system makes us pos-President & CEO

sible to offer our customers financial solutions more

Mizuho Corporate Bank, Ltd.

smoothly and seamlessly than under the previously
existing cooperative model.
In our international strategy, we believe there is considerable room for further expansion in the banking
and securities fields, especially in Asia. Accordingly, we
will draw on the strategic alliances we have concluded
with leading financial institutions in China, India, andelsewhere in Asia, and, while working together with7

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

Returning to the Origins of Commercial Banking: Putting the Customer First

information on housing loans and asset management
on weekends and holidays. Also, to respond to customer needs for securities and trust business services,
we have increased the number of Mizuho Investors
Securities “Planet Booth” in the lobbies of our branches to 148. We have also seconded personnel from
Mizuho Trust & Banking to set up “Trust Business
Office” to support our business promotion offices. We
have also made further major enhancements in services
offered to Mizuho Mileage Club members, who now
number more than 6.5 million persons, to make theirmemberships even more attractive. In June 2009, wereduced the minimum requirement for customers'
assets under management to make the preferential services available to more customers and made transfers

We Want Our Customers To Say“We Are Glad We Chose Mizuho”

to other banks free of charge up to specified limits.
In addition, to give customers an increased level of
security, in our “Mizuho Direct” Internet banking service, we have become the first bank in Japan to offer

The Year in Review

log-in via an improved “risk-based authentication.”

I have been appointed President & CEO of Mizuho

Also, in all our ATM installations, we have added ATMs

Bank and would like to thank all of you for your con-with biometric identification IC card features, bringing

tinuing support.

the total number to about 2,500 units.

We began fiscal 2008, ended March 31, 2009, withthe determination to establish Mizuho Bank as “Japan's
strongest retail bank.” To strengthen our managementfoundations, we set to work to strengthen three areasin particular: our customer base, our human resource
base, and our earnings base. Throughout the fiscal year,
we undertook a wide range of initiatives to encourage
our individual customers, our customers among small
and medium-sized enterprises (SMEs) as well as middlemarket corporations, and the managements of thesecompanies, to really mean it when they say “Mizuho
Bank is our best partner.” Services for Individual Customers
To offer our individual customers a high level of convenience and security, we are implementing a broad spectrum of initiatives. To enhance convenience, we haveincreased the number of “Mizuho Personal Square,”which are branches with a greater focus on the needsof individual customers, to 147. We have also augmented our team of financial consultants who canoffer proposals for asset management and other personalized services and have expanded our “Holiday
Consulting Events” services to provide customers with8

 Services for Corporate Customers
For our corporate customers, we have adopted aproactive stance, especially toward SMEs and middlemarket corporations, and regard providing a smoothsupply of funds to these companies as our role as afinancial institution in society. Specific initiatives include
offering a broader lineup of loan products, including
the “Super Wide,” a strategic loan fund of ¥1 trillion
that allows us to respond aggressively and speedily tofunding needs. Other loan products include the“Mizuho Eco-Special” and the “Mizuho Eco-Assist,”
which provide financial support for corporate customers
who are actively addressing environmental issues. We
have also made active use of the government's emergency loan guarantee system. Other loan products thatavoid excessive reliance on real estate collaterals andpersonal guarantees include our programs for securitizing receivables, the “Machinery Collateralized Loan,”and other asset-based lendings. To offer financing for
new businesses, we offer finance based on intellectual
property rights, and, for SMEs and middle-market
companies, we also arrange syndicated loans and havedeveloped a range of other funding schemes.

Looking Ahead to Fiscal 2009

assets to their heirs—we formed the Consulting

Based on the spirit of “putting the customer first,” weDivision in April 2008. This division is well-positioned tohave returned to the origins of commercial banking

address inheritance issues quickly and accurately and it

and are striving to develop together with our cus-

combines capabilities for consulting, private banking,tomers by working to deepen ties of trust with individ-

and trust business related services. We are continuinguals as well as SMEs and middle-market companies andto pursue customer satisfaction through offering com-their managements.

prehensive consulting services centered around the

To offer the best in financial services, we are focus-

Consulting Division and the full lineup of financial ser-ing on responding to the “true needs of our cus-

vices in cooperation with Mizuho Trust & Banking andtomers.” In other words, to help our customers address

Mizuho Investors Securities.

many of the issues and concerns they confront, we are

Also, to take active initiatives in supporting customers

listening to them carefully, learning about them inamong SMEs and middle-market companies that are

depth, and offering services and solutions that theyrealigning their business activities, in April 2009, wereally need. In addition, we are continuing to place

newly established the Credit Supervision Division IV. Thisthoroughgoing emphasis on compliance and customer

department provides strong support to companies forprotection, both of which are major preconditions forcontinuing and revitalizing their operations throughcustomer relationships, as we also actively engage inpreparation of revitalization plans and advice.

CSR activities.
In individual customer business, to reflect customer

The operating environment for financial institutions

needs even more accurately than in the past in the prod-

is expected to remain challenging, but we are respond-

ucts and services we offer, we formed the Personal

ing quickly to today's rapid and far-reaching changes

Marketing Division in April 2009. This department isand are continuing to evolve in order to develop

working to upgrade remote channel services andtogether with our customers.

expand the interface between Mizuho Bank and its cus-

Our aim is have our customers think “We are glad

tomers. We are also endeavoring to promote consulting-

we chose Mizuho.” With the objective of winning cus-

based business that will win greater customer satisfac-

tomer satisfaction, the management and staff of thetion through enhancement of the quality of financial

Mizuho Bank are devoting their fullest efforts and work-

consultants. Through these and related activities, we willing as one to be reliable as a service enterprise.

seek to respond to a diverse range of customer needs.
In corporate customer business, we are aware that

July 2009

supplying funding to SMEs and middle-market corporations is one of the social missions of financial institutions, and we are continuing to take active initiatives inthis area.

Satoru Nishibori

We have assigned staff specializing in offering busi-

President & CEO

ness and financial solutions to help customers address

Mizuho Bank, Ltd.

the issues they face. These staff members provide
advisory services in a wide range of fields, including
arrangements for structured finance and syndicatedloans, business succession, M&A, business matching,and development of overseas operations, and are continuing to offer optimal solutions in these fields.
Especially in the area of business inheritance services—which aim to address the key management issues oftransferring management rights to the next generationand helping business owners themselves to pass their
9Securities, Trust and Asset Management Business Strategies

Basic Strategy for the Securities Businessproducts and solutions to meet the varied investment

To pursue synergies by strengthening ties between theneeds of a wide range of customers at home andgroup's banks and securities companies, Mizuho is cre-overseas.

ating an organization that utilizes and integrates its

It is also making efforts to utilize its network ofbanking and securities functions to provide customers

overseas subsidiaries for the integrated development ofwith comprehensive solutions based on customer seg-

domestic and overseas business.

mentations. To this end, Mizuho securities (MHSC)
handles securities business for the Global Corporate

Mizuho Investors Securities

Group, and Mizuho Investors Securities (MHIS) handles

In addition to building a powerful cooperative network

securities business for the Global Retail Group.

with MHBK, MHIS is working closely with other group

Mizuho is aiming to maximize collective groupcompanies to achieve its goal of becoming “the secu-

capabilities by reinforcing mutual cooperation

rities company that customers trust most to be close

between the global groups so that the individual

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

To expand its cooperative channels with MHBK, it istheir strengths and characteristics in better satisfying

deploying joint branches known as “Planet Booth.” It is

customers' varied needs.

also proactively strengthening ties with the group by,among other things, promoting a financial instruments

Mizuho Securities

intermediary service with MHBK, a trust business withMHSC is working closely with MHCB and other group

MHTB as an agent, and an IPO support business incompanies to fulfill its aspiration of becoming “thecooperation with other group companies.

global investment bank that customers trust most.”
Following the merger of the former Shinko Securities

responds to customers' asset management needs

and the former Mizuho Securities on May 7, 2009, thethrough various securities-related solutions, to their

newly merged entity, Mizuho Securities, is making afunding needs through equity and bond underwriting

fresh start, combining the former Mizuho Securities'

services, and to their capital structure planning needs

global platform and the know-how it built up throughthrough consulting services, thus providing carefully

its original wholesale securities business with the for-tailored, high-quality products and securities services in

mer Shinko Securities' nationwide customer base anda speedy manner.

full-service securities business network to provide
higher-value-added financial services than ever before.
MHSC provides customers with all-round support
through its investment banking services, proposing
management strategies and procuring funding. It has
already secured a position as a market leader in thebond underwriting business and structured finance. It
has also occupied a top position in M&A and otherfinancial advisory services. These constitute its main
businesses, along with providing solutions throughunderwriting equities, support for IPOs, IR consulting,and financial and capital policy advisory services.
In providing and selling products, its principal operations cover sales and trading of bonds and equities,
research and funds (investment trusts). It provides timely,
high-quality information and offers high-value-added

10With this as its business promotion base, MHIS

Basic Strategy for the Trust Business

As the environment affecting the trust business

Through Mizuho Trust & Banking (MHTB), which offers

rapidly evolves, MHTB will promote greater coopera-

a full range of trust services as the core of the Global

tion among group companies to offer their customers

Asset & Wealth Management Group, and the Trust &a wide range of new products and services that accu-

Custody Services Bank (TCSB), which offers full-line cus-

rately match their needs by seizing the opportunities

tody services, the group is working to make the most ofpresented by legislative and other environmental

its trust functions to deliver the best solutions to cus-changes.

tomers of the entire group, whether they belong to the
Global Corporate Group or the Global Retail Group.

Trust & Custody Services Bank

By adopting a basic strategy of building stronger

Based on its advanced back-office and systems infra-

ties with group companies, MHTB and TCSB will pro-structure, its rigorous internal control systems, and its

mote cooperation with group companies and offer“customer first” principle, TCSB satisfies customer

new products and services to respond to customers'

needs for financial institutions and institutional

diversified needs quickly and accurately.

investors by offering a wide range of products, fromtrust and custody services to cutting-edge securities

Mizuho Trust & Banking

management models as a “full-line custodian bank.”

MHTB gives top priority to speedily and accurately
offering solutions in the form of original products andconsulting expertise and the rich know-how it has

Basic Strategy for the Asset Management
Business

accumulated over many years. By satisfying customers

In the investment trust and pensions markets, thein this way, it aims to become “the top brand in asset

group aims to become one of the world's leading play-

and wealth management.”

ers in terms of both quality of services and volume ofservices that make full use of the highly specialized

For individual customers, it offers various services

assets under management.

pertaining to wealth management, from consulting in

Our asset management companies, Mizuho Assetconnection with overall asset management and invest-

Management and DIAM, make the most of their indi-

ment to services relating to asset transfers—especiallyvidual specialties in offering high-quality products andinheritance and wills—loan products, deposits andservices to both group and non-group customers. In theinvestment trusts, and asset management products

distribution of investment trusts, they offer a widely var-that utilize its trust functions.

ied lineup of products designed to meet the increasingly

MHTB offers its corporate customers a wide range

complicated and sophisticated needs of customers.

of services and optimal solutions pertaining to asset

In the Japanese defined contribution pension busi-

management. These cover brokerage, securitizationness, the group is channeling its total resources intoand other aspects of the real estate business; struc-providing solutions for corporate management issues

tured products business offering new services in theby supporting the formation of assets for individuals to

area of asset securitization using trust schemes; pen-enjoy in their retirement.

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

11Management Structure

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

Mizuho Financial Group, Inc. (MHFG)

Global Corporate Group

Mizuho Corporate Bank, Ltd. (MHCB)

Mizuho Securities Co., Ltd. (MHSC)*

Global Retail Group

Mizuho Bank, Ltd. (MHBK)

Mizuho Investors Securities Co., Ltd.
(MHIS)

Global Asset & Wealth Management Group

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

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

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

Group Strategy Affiliates
Mizuho Financial Strategy Co., Ltd.
(MHFS)
Mizuho Research Institute Ltd. (MHRI)
Mizuho Information & ResearchInstitute, Inc. (MHIR)*MHSC and Shinko Securities merged as of May 7, 2009 (new company name: Mizuho Securities).

12

Business Outline

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

Banking
Business

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

Mizuho Bank(MHBK)

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

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

Mizuho Securities(MHSC)*

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

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

Mizuho Trust & Banking(MHTB)

Trust & Custody
Services Bank(TCSB)

Defined Contribution
Plan Services(DCPS)

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

A highly specialized trustbank focusing on
the custody business.

An entity that specializes inmanaging defined contribution
pension plans.

MizuhoAsset Management(MHAM)DIAM

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

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

UC CardMizuho Private
Wealth Management(MHPW)

MizuhoTrust Realty Company

A leader among credit cardcompanies in Japan.

A wealth management
services company.

A real estate agency.

MizuhoCredit Guarantee

Mizuho CapitalMizuho Factors

A credit guarantee andreal estate research company.

A principal venture capitalcompany.

A factoring company.

MizuhoResearch Institute(MHRI)

Mizuho Information& Research Institute(MHIR)

Mizuho-DL
Financial Technology

MizuhoFinancial Strategy(MHFS)

A think tank.

A company in charge ofIT strategy.

A research and development
company of financial technology.

An advisory company
for financial institutions.

Securities
Business

Trust and AssetManagement
Business

Other
Businesses

13Office Network

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

International Network (As of July 31, 2009)MHCB Overseas branch or relevant office Overseas representative office Major overseas subsidiary or relevant office
MHSC Overseas subsidiary Overseas representative office
MHTB Overseas subsidiary Overseas representative office

Beijing
LondonAmsterdam

TianjinDüsseldorf
Frankfurt

DIAM Overseas subsidiary

DalianLuxembourg
Moscow

Brussels

Qingdao
Seoul

Vienna

Paris

Wuxi

Nanjing
Wuhan

MadridXiamenZurichTehranMilan

Shenzhen

New Delhi

ShanghaiTaipeiTaichung
Kaohsiung

Guangzhou
Hong Kong
Mumbai
Hanoi

Bahrain
Dubai

ManilaBangkok
Ho Chi Minh City

Kuala Lumpur
Singapore
SydneyLabuanJakarta14

MHCB's Newly Established Offices (April 2008 — July 2009)
2008
April

Taichung Branch opened
Mizuho Corporate Bank (China) Qingdao Branch opened

September Mizuho Corporate Bank (China) Guangzhou Branch opened
Mizuho Corporate Bank Nederland
Madrid Representative Office opened
October

Kowloon Sub-Branch opened

2009
March

Mizuho Corporate Bank (China) Wuhan Branch opened

TorontoVancouver
ChicagoNew York

San Jose
Los Angeles
NassauHoustonCaymanMexico City

Atlanta

Network in Japan (As of July 31, 2009)
MHCB
Head Office and Branches: 18

MHBK
Head Office and Branches: 410
Sub-branches: 37
Agencies: 47

MHSC
Head Office and Departments: 3
Branches: 98

São PauloMHTBHead Office and Branches: 35
Sub-branches: 2

MHIS
Head Office and Branches: 56
Planet Booths*: 148*Planet Booths are the consulting boothsof MHIS located in MHBK's Branches

15

Business Approaches Adopted by Each Global Groupup

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Business Environment and Overview of the Global Corporate Group
Economic conditions in the United States and Europe remain stagnant as the dislocation in the world's financial markets
continues to have a serious impact on the real economy. The Japanese economy faces negative economic growth against
a background of weak corporate earnings and deteriorating consumer spending.
Under these conditions, customers among large, global corporations and other entities expect financial institutions to
go beyond resolving financial issues in areas such as funding and financial efficiency, and include business restructuring
through “selection and focus” and investment in expansion overseas.
For a financial group to enhance its competitiveness in satisfying these needs, it is essential to offer sophisticated, innovative solutions that transcend conventional concepts and frameworks by combining financial functions such as banking,securities and trusts.
To respond to the needs of large, global corporations and other entities, the Global Corporate Group provides justsuch highly specialized, innovative solutions by leveraging its all-around financial capabilities, strengthening and combining its commercial banking business and the traditional investment banking business.

16

Key Group Companies
 Mizuho Corporate Bank Mizuho Securities

MHCB provides optimal solutions to meet the increas-

MHSC offers optimal solutions in response to the wide-

ingly diverse and sophisticated needs of customers in

ranging needs of domestic and international institution-

the areas of both finance and business strategies, focus-

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

lic sector entities as well as individuals.

those listed on the first section of domestic stock

Its investment banking services range from equity

exchanges), financial institutions and their group com-and bond underwriting and support for IPOs to financial

panies, public sector entities, and Japanese and foreign

and capital policy advisory services, M&A advisory ser-companies overseas.

vices and structured finance. In providing and selling

In addition to taking full advantage of the functions

products, its principal operations cover sales and tradingof other group companies such as MHBK, MHSC andof bonds and equities, research reports and investment

MHTB, MHCB is utilizing its alliances with financial insti-

products.

tutions around the world to offer a comprehensive
range of groundbreaking financial service solutions on
an ongoing, multifaceted basis as it aspires to become a
top corporate finance provider that understands thebroad-ranging needs of its customers.

Highlights
 MHCB MHSC• MHCB's subsidiary in China, Mizuho Corporate Bank
(China), opened three new branches, one in Qingdao,
one in Guangzhou and one in Wuhan, bringing its
business promotion network in China (excluding
Hong Kong and Taiwan) to 10 offices.

• The new MHSC was launched when the former
Shinko Securities and the former MHSC merged on
May 7, 2009. Combining the former MHSC's global
platform with the former Shinko Securities' nationwide customer base and comprehensive securities
business network gives the new entity a robust
business structure to achieve its aim of offering
optimal solutions based on sophisticated products
and services.

• MHCB also opened the Taichung Branch, its third in
Taiwan, and the Kowloon Sub-Branch. In addition,
Mizuho Corporate Bank Nederland, MHCB's subsidiary in the Netherlands, established the Madrid
Representative Office.
• MHCB entered into a business alliance and investment agreement with Evercore Partners, an M&A
investment banking boutique in the United States.
• MHCB arranged the largest-ever “Ninja Loan” (crossborder syndicated loan) in the amount of ¥110.0 billion for Volvo Treasury, a subsidiary of the Volvo
Group, the world's second-largest truck manufacturers.

• As part of a program to strengthen its business inAsia, MHSC has established a representative officein Mumbai.
• In the Deal Watch Awards 2008 announced byThomson Reuters, MHSC received the “Straight Bondof the Year” and the “Local Government Bond of theYear” awards.

17

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Promptly Responding to Changes in the Market Environment
Despite a severe environment characterized by ongoing disruptions in the global financial markets and deteriorating economic conditions, customers' needs are becoming increasingly diverse, sophisticated and global, requiring financial institutions to offer comprehensive, high-level, innovative solutions.
In response to such needs, MHCB provides globally based financial solutions that make the most of its strengths as aprofessional of corporate finance while taking into consideration changes in the financial and economic environment.
By adopting advanced portfolio management methods and diverse and sophisticated hedging methods, as well as
enhancing its ability to respond to the risk of price fluctuations in credit products, MHCB is also building a robust management framework to deal with credit and market risk that can promptly respond to changes in the market environment.
In this way, it is deploying a globally based strategy that reflects changes in the market environment and building asolid risk management structure, as it aims to establish itself as a top brand name in the corporate finance sector andbecome the most trusted “bank of choice” among its customers.

Further Progress in Globalization
Strengthening the Global Network
As one of Japan's leading financial institutions, Mizuho offers domestic and foreign customers engaged in global businessactivities optimal solutions by selectively and flexibly allocating resources, while carefully monitoring trends in the market
environment on an ongoing basis. In doing so, it dynamically combines its rich experience in overseas markets with its
powerful overseas network and cutting-edge financial products.
With the increasing globalization of its customers' business, MHCB continued to reinforce its overseas network with aview to realizing more timely responses to customers' local needs.
During fiscal 2008, MHCB opened six new offices, focusing mainly on Asia. In China, Mizuho Corporate Bank (China)
opened three new branches, one in Qingdao in April, another in Guangzhou in September, and the third in Wuhan in
March, bringing the business promotion network in China (excluding Hong Kong and Taiwan) to 10 offices. With the
opening of the Wuhan Branch, MHCB became the first Japanese bank to have a business promotion office in inland
China. In other regions, MHCB opened the Taichung Branch—its third in Taiwan—in April and the Kowloon Sub-Branchin October, while its subsidiary in the Netherlands, Mizuho Corporate Bank Nederland, established the Madrid
Representative Office in September. With the opening of these new offices, MHCB has, for the time being, largely completed the expansion of its overseas network.

Strengthening Alliances
In order to cover regions and products not handled by Mizuho's network, MHCB continues to strengthen relationships
with leading local partners around the world. During fiscal 2008, MHCB entered into a business alliance and investment
agreement with Evercore Partners, an M&A investment banking boutique in the United States, in August, and also concluded collaborative agreements with partners in India.
MHCB is also building cooperative relationships with government agencies and other entities in various countries tostrengthen its support for customers' overseas business expansion.

18

Providing Solutions to Customers’ Needs
Sharing and Supporting Customers' Global Growth Strategies
MHCB aspires to become “a top corporate finance provider,” following management policies that are sensitive to businessenvironmental changes as it responds to customers' needs and business expansion and to the globalization of the economy. Drawing on its robust, long-term relationships with customers, it is working to develop its solutions business and thus
help raise its customers' corporate value over the medium to long term by strengthening and combining its commercial
banking business with its M&A advisory services and other aspects of its traditional investment banking business.
Acting as relationship managers (RMs) for the entire group, MHCB's RMs employ a “strategic advisory service-based
solutions business approach” as their code of behavior as they identify the management issues customers face. In addition
to providing proactive support as financial advisors to customers seeking funds, they offer M&A advisory services, various
forms of securitization, syndicated loans, pensions and cash management systems (CMS), and make maximum use of thebanking, securities, trust and other specialist functions embodied within the group to offer the best possible financial
solutions on a global basis.
Conceptual Image of Corporate Finance— Combining and Strengthening CB (Commercial Banking) and Traditional IB (Investment Banking) Functions
Strategic advisory functions based on robust relationships

Support for global operations(CB business)
Lending, settlement

Identify andshare customers'
global growthstrategies

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

Use the IB business to create and supplement CB business

Deep Understanding of Industry
MHCB's Industry Research Division acts as the research team for the Corporate Banking Unit, proposing comprehensive
solutions to customers centered on business and financial strategies. Its activities focus on three areas: (1) the “sectorspecific analyst function,” which uses wide-ranging information concerning industry and sectoral knowledge accumulated
over many years; (2) the “sector-specific strategist function,” which works on future business strategy proposals together
with customers; and (3) the “corporate finance function,” which supports the formulation of customers' financial andmanagement strategies. Altogether, some 100 specialists cooperate with business promotion divisions in providing
advices to customers. The environment facing customers is changing rapidly as a result of growing activity in the area ofstrategic cross-border corporate alliances and increasingly fierce competition for market share in emerging markets overseas. The Industry Research Division has led the field of domestic industrial research for some time. MHCB is now
strengthening its functions as a global partner who can work with customers in tackling management issues by expanding
the division's global operations, adding to its offices in the United States and Europe by setting up an office in Singapore
in April 2009.
Changes in industrial structures appear to be gaining further momentum as a result of the global economic and financial crisis. Against this background, the Industry Research Division shares business problems with customers on the basisof its deep understanding of industry, and offers sophisticated financial solutions designed to match their needs.

19

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Approach to Banking and Securities Cooperation
MHCB cooperates with MHSC in providing specialized, sophisticated solutions such as funding, M&A and securitization inline with customers' capital policies and business and financial strategies. For its part, MHSC is building an excellent
domestic track record for underwriting corporate bonds and M&A advisory services. In 2006, MHCB became the firstJapanese bank to obtain financial holding company (FHC) status in the United States. It now leverages this status to specialize in full-scale banking and securities services such as unified sales of banking and securities products primarily to US
corporate customers through its New York, Chicago, Los Angeles, Houston and Atlanta offices. It is steadily compiling asolid record centered on underwriting corporate bonds issued by blue-chip companies in the United States and Europe.
Among other things, it became the first Japanese banking group to serve as joint lead manager in a corporate bond issue
for an American company in the United States in May 2008.
In Japan, the revision of firewall restrictions in June 2009 has made it possible for employees to work as both bank andsecurities company staff members. It will therefore make the most of its experience in the United States to consolidate thebanking/securities RM (relationship manager) function within Japan in stages and offer solutions of even higher quality incollaboration with MHSC.
Glossary FHC Status
This status enables a banking group to engage in a broad range of investment banking businesses in the US, including the underwriting of salesof corporate bonds and equities.

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

 Public Sector Entities
MHCB endeavors to propose optimal solutions that bring together the sophisticated expertise and know-how of groupcompanies to meet the increasingly diversified needs of customers among public sector entities. It arranges PFI deals andsyndicated loans to satisfy customers' financing needs, proposes business claim securitization schemes as a new financemethod to help with management improvement, and proposes entrustment of advisory services and various kinds ofderivatives in response to upgrading risk management.
In the public bond business sector, MHCB will continue to provide issuers with stable support for funding using its
long-standing record and rich experience as a leading bank.

Offering Financial Solutions at the Global Level
Sophisticated Financial Services to Match Customers' Needs
 Whole Business Securitization (WBS)
MHCB is proactively developing business finance methods backed by future cash flow to be generated by specific businesses belonging to customers. When arranging such business finance, it is essential to be able to identify business risk,

20

utilize sophisticated financial engineering skills, and apply advanced financial technologies that bring together expertise in
the law, accounting and taxation.
A typical example is whole business securitization (WBS) and other arrangements that are tailor-made to satisfy customers' needs, such as future cash flow finance, which involves setting aside the cash flow generated from specific contracts. In fiscal 2008, it acted as mandated lead arranger in arranging a syndicated loan totaling ¥23.0 billion for a highspeed rail project that will link central Tokyo with the Narita International Airport in 36 minutes.

 Project Finance
MHCB is a world-class top player in the field of project finance (PF) arrangement and the financial advisory (FA) business,
which require high-level skills and ample knowledge.
Building on its experience and its record to date, it acted as lead arranger for a major syndicated loan totaling US$5.3
billion for the Sakhalin II Project, and successfully arranged finance totaling US$2.5 billion for Japanese firms to acquire
power plants in Singapore. In Japan, it successfully arranged a syndicated loan for the construction of the new building
for the Delegation of the European Commission to Japan, and continues to focus efforts on the PFI/PPP finance sector.
It is also compiling an impressive record in its FA business. Its selection by the Panama Canal Authority as the sole FA
for the project to widen the canal has led to success in raising a total of US$2.3 billion in funding.
Taking into consideration its environmental responsibility, MHCB is also putting considerable effort into the renewableenergy business. Quick to identify the needs of its customers and the times, it has taken a proactive approach to new sectors, participating in wind power generation projects at home and overseas, and becoming the first Japanese bank tointroduce project finance into a solar power generation project.
MHCB thus provides optimal solutions to the diverse needs of its customers by arranging finance and giving financial
advice in connection with various projects in Japan and overseas.

 Real Estate Finance
After expanding at a time when the real estate securitization market was evolving and becoming increasingly globalized,
the real estate market is now at a major turning point.
MHCB had an impressive performance and accumulated a great deal of experience over many years of involvement inmajor real estate projects such as the Tokyo Midtown Project, which redeveloped a site once occupied by the Defense
Agency. Taking advantage of its professional knowledge and technologies, MHCB is now offering optimal solutions inareas such as finance and real estate advisory services, whether they be financial and business strategies or domestic andoverseas real estate markets, to meet customers' various needs triggered by today's rapid environmental changes andcontribute to funding diversification.

 Asset Finance
MHCB offers optimal solutions by arranging securitization programs to satisfy the diversifying need for funding throughasset securitization on the one hand, and the need to improve management indices by removing assets from the balance
sheet on the other. In this way, it supports customers' financial strategies while at the same time responding to the varied
needs of investors.
It offers sophisticated, specialist products and solutions by utilizing a wide range of finance solutions using securitization methods such as inventory finance and structured lease, as well as using syndication methods.

Promoting Value-Added and Globalization in the Syndication Business
MHCB has been engaged in the syndicated loan business since its inception. In fiscal 2008, deals in Japan's domestic syndicated loan market amounted to ¥27.8 trillion, an increase of ¥1.6 trillion over the preceding fiscal year. As a result of
the recent rapid changes in the financial environment, syndicated loans have taken on renewed importance as a form ofmarket-oriented indirect financing.
MHCB has strengthened its global syndication system through tieups the world over by deploying syndication specialists

21

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —at its offices in the United States, Europe and Asia. In 2008,
it arranged its largest ever “Ninja Loan” (cross-border
syndicated loan) worth ¥110.0 billion for Volvo Treasury, aTrends in Japan's Syndicated Loan Market andMizuho's Share(Trillions of ¥)30

subsidiary of the world's second-largest truck manufacturers, the Volvo Group. In the first quarter of 2009, it also

25

took top place in Thomson Reuters' global ranking.
MHCB offers value-added products that make use of
the syndication function in order to ensure a smooth and

20

Arrangement ofSyndicated Loansin Japan (Fiscal 2008)
Mizuho's
Share:
Approx. 34%

15

stable supply of funds to meet customers' diversifying
needs. In addition to arranging syndicated loan deals that
replace corporate bonds and CP, it is involved with theJapan Bank for International Cooperation and Nippon
Export and Investment Insurance in deals, and “Ninja
Loans” to Japanese exporters and the overseas subsidiaries of Japanese firms.
It will continue to foster market development andrespond with precision to the financial needs of its cus-

10
50

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sources: Fiscal 1999 – Fiscal 2002: Thomson Reuters
Fiscal 2003 – Fiscal 2008: “Loans Syndicated and Loans Transferred”
from Japanese Bankers Association(Market share calculated by MHCB)

tomers through its involvement in the syndication business while paying careful attention to market conditions.

Global Portfolio Management Diversifies and Becomes More Sophisticated
MHCB has been proactively engaged in global portfolio management as part of its efforts to promote its “originate to distribute” business model. It is working to respond dynamically and flexibly to the increasingly global and diversified financeneeds of its customers. In doing so, it maintains and enhances the soundness and profitability of its global credit portfolio
by flexibly controlling credit risk through the credit market in response to changes in the status of the bank's entire credit
portfolio and the macroeconomic situation.
Specifically, MHCB is expanding its efforts in loan sales, credit derivatives and securitization, targeting the credit ofdomestic and foreign companies. It is also working to upgrade and diversify its operations by responding to the credit
price fluctuation risks that emerged as a result of the subprime loan problem.

Promoting the Global Transaction Business e-Business
MHCB responds to customers' needs for greater efficiency in cash management on a consolidation basis by offering various cash management services, such as zero balancing services, payment factory and so forth, often in combination with
Mizuho Advanced CMS, which enables inter-group loan and payment management.
MHCB also provides competitive cash management solutions on a global basis to overseas customers through Mizuho
Global CMS, Mizuho Global Cash Pooling Service. In areas where MHCB office network cannot cover, MHCB provides
Multi-Bank Cash Concentration Service (MBCC) handling fund movements between MHCB accounts and accounts withother banks.

 Foreign Exchange and Trade BusinessIn cooperation with specialist divisions and branches in Japan and overseas, MHCB proposes solutions to customers forhedging the potential currency exchange risk in their balance sheets and cash flow, issues guarantees for large value transactions in various export products toward emerging countries and opens accounts for projects. It also supports its customers
by providing the most advanced financial products optimized for all of their trade-related financial needs and overseas

22investments, by, for example, providing structured trade finance, commodity finance and ECA finance (finance co-working
with various Export Credit Agencies in developing countries).

 Yen Settlement and Custody Services
MHCB is working to upgrade its systems, make operations more robust and efficient and enhance service quality with aview to better response to the implementation of the Electronic Share Certificate System in Japan, shorter settlement
times and other ongoing fund and securities settlement reforms, and customers' increasingly diversified needs.
In the area of custody operations, it has become the first Japanese bank to acquire a business model patent for managing assets deposited by investors. In the area of foreign exchange yen clearing, it has also become the first Japanese bankto acquire SAS70 external certification in respect of internal controls.

 Pensions Business
Following the abolition of Tax Qualified Pension Plans and other institutional changes, MHCB draws on total groupstrengths to offer comprehensive pension services and has a first-class performance record in the field of defined contribution pension plans in Japan. MHCB also acts as a trust agent for MHTB.

Approaches to the Global Alternative Investment Business
MHCB is engaged in the “alternative” asset management business aimed at institutional investors such as pension funds.
Although the market environment has changed dramatically as a result of disruptions in the world's financial markets,diversification of investment assets remains a hot topic among institutional investors and pension funds. Demand for suchalternative investments that have a relatively low correlation with traditional investment assets such as equities and bonds
and is also recognized as an asset class is expected to continue.
MHCB will work to create more attractive investment products that reflect changes in customers' needs by expanding
its business which includes making efforts to expand its domestic asset management and sales activities.
Glossary The Alternative Asset Management Business
The alternative asset management business provides global institutional investors with sophisticated investment products that go beyond traditional
investment assets such as stocks and bonds. They include commodity funds, real estate funds and credit funds, and sophisticated investment products such as hedge funds created via various investment strategies, including arbitrage transactions.

Promoting the Global Market BusinessIn the sales and trading business, MHCB offers optimal financial solutions that use cutting-edge financial technologies tosatisfy customers' increasingly diverse and sophisticated global financial and business risk control needs.
It has expanded its product lineup from basic areas such as interest rates and foreign exchange to oil, metals, weather
and other commodity derivatives, and ultra-long-term, low-liquidity currency derivatives. At the same time, it offers highquality solutions by expanding its product range and strengthening its trading capabilities in respect of local currencytransactions in countries around the world. In particular, it has been doubling its major exchange deals with countries in
Asia in recent years. Through cooperation between its team of experts, who are thoroughly familiar with the market's
characteristics, and its network of overseas offices, it offers optimal exchange products, such as non-deliverable forwards(NDFs) which involve no deliveries in local currencies.
Through its tieup with Mizuho-DL Financial Technology (a group company specializing in the development of financial
technology), it offers sophisticated risk control methodologies that incorporate “dynamic foreign exchange hedging”—astatistical/probabilistic exchange risk hedging method that eliminates market views and arbitrariness—to take care ofareas that are not covered by existing risk management methods. Some 77 customers have made use of “dynamic foreignexchange hedging” since it was introduced in 2004.

23

Business Approaches Adopted by Each Global Group

Global Corporate Group— Approaches to Large and Global Corporations, and Other Entities —Aiming to Become “the Most Reliable Investment Bank with Global Reach”~MHSC Makes A New Start~
MHSC got off to a new start when its former entity merged with the former Shinko Securities on May 7, 2009. The newentity intends to meet everyone's expectations by delivering financial services that offer greater value than ever before.
MHSC will fuse the know-how and global operational platform built up by the former MHSC through its original wholesale securities business, with the former Shinko Securities' nationwide customer base and network as a full-service securities company. In its role as the securities company at the core of the Global Corporate Group, MHSC also aspires tobecome “the most reliable investment bank with global reach.”
MHSC has established securities subsidiaries in the United Kingdom, the United States, Hong Kong, Switzerland andother overseas financial markets, strengthening its global operating structure for underwriting and selling equities, government and corporate bonds, and engaging in the M&A advisory business. In December 2006, MHCB obtained financial holding company (FHC) status in the United States, making it possible for Mizuho Securities USA to offer a fullrange of securities services and steadily expand its record of accomplishments in the underwriting of US corporate
bonds and equities. As part of its efforts to expand its business network in Asia, MHSC opened a representative officein Mumbai in February 2009. It is also making preparations to establish an overseas subsidiary in Saudi Arabia (as of theend of June 2009).
In addition to using the merger as an opportunity to realize synergies in the wholesale, middle-market and retail sectors, and streamline its cost structure, MHSC is working to improve and strengthen its internal control systems in line withthe global trend toward financial supervision regulations, all with a view to creating a management structure that is highly
responsive to environmental changes.

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

Investment Banking Business
MHSC has sustained its sector-leading performance in thearea of bond underwriting operations. It is also building
long-term relationships of trust with its customers as a result*Underwriting amount basis. Total amount of issues: ¥14,204.1 billion.
(April 2008-March 2009 Contract date basis.)of its powerful bond selling capabilities, as well as its ability

Rank Company nameto set prices to reflect customers' demand with precision

1
2
3
4
5

and respond rapidly to changes in the market. It has growninto a major player in the equities underwriting business,
winning mandates in large finance deals.
In the area of M&A advisory services, MHSC draws on its
advanced sectoral knowledge and know-how to provide
advice to suit customers' management strategies, winning a
top-class reputation for its capabilities that consistently places24

Total SB League Table

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

Amount(billions of ¥)2,959.4
2,790.8
2,513.9
2,450.9
1,819.6

Share
(%)
20.83
19.65
17.70
17.26
12.81

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

it on the top rungs of the advisory rankings.
MHSC has secured a solid reputation among its cus-

M&A Advisory Ranking

monetary claims and other finance arrangement business. It(Acquisition targets: Japanese companies (excl. real estate deals),Acquiring entities: All nationalities)*Announced deals, based on no. of transactions(January to December 2008)

has also won the “ABS House of the Year” award for seven

Rank Advisor

consecutive years since 2000.

1
2
3
4
5

tomers as a market leader in securitizing real estate andLooking ahead, it will reinforce its ability to put forwardand execute proposals in line with customers' business strategy needs while striving to create new business opportunities.

Mizuho Financial Group*
NomuraCitigroup
Mitsubishi UFJ Financial Group
Daiwa Securities SMBC

No. of
deals
95
91
84
77
69

Amount (millions
of US dollars)
8,109
22,257
6,497
9,998
20,386

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

Products Provision and Sales Business
Having carved out a position as a market leader in the bond business, MHSC provides products that suit its customers'
investment strategies, engaging proactively in market making and offering high-quality information. In the equities business, it is also responding appropriately to its customers' increasingly sophisticated needs by making the most of the
expanded resources resulting from the merger.
Furthermore, MHSC's ability to respond to customer needs and expand market presence both at home and overseas is
being continually enhanced in areas that include selling to overseas investors, engaging in trading in overseas equities,
and arranging and offering a variety of high value-added products.
It is working to expand its services, adopting two different transaction approaches that allow individual customers tomake a choice according to their preferred investment styles. It is also putting considerable effort into giving advice tocompany owners, and proactively engaging in financial instruments intermediary service (securities sales agency) throughregional financial institutions.

25

Business Approaches Adopted by Each Global Group

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

 The Environment Facing SMEs and Middle-Market Corporations
The outlook for corporate earnings and consumer spending has become very unclear as a result of the deterioration in thedomestic and overseas economies since the fall of 2008. It is therefore essential to instill an even stronger sense of vitality
into the Japanese economy by promoting the creation and development of SMEs and middle-market corporations withgrowth potential, and venture businesses with a revolutionary, challenging spirit. Banks are strongly required to respondto these corporate customers' needs for stable lending services and management issue resolution.
With the close cooperation of the group companies of Mizuho and leading domestic and international companies, theGlobal Retail Group provides top-level products and services on a global scale in response to the increasingly diversified
and globalized needs of individuals, SMEs and middle-market companies.

26

Key Group Companies
 Mizuho Bank Mizuho Investors Securities

MHBK is proactively establishing “Mizuho Personal

In line with its aspirations to become “the securities

Square”—branches with a greater focus on convenience

company that customers trust most to be close tofor individual customers—as part of its services for indi-them” and to satisfy wide ranging securities transaction

viduals. In order to strengthen its consulting services, itneeds, MHIS is working with MHBK to establish joint

is training more financial consultants and expanding its

branches and promote financial instruments intermedi-

framework for providing more competitive products

ary service while cooperating with Mizuho's group com-through tieups with companies inside and outside thepanies in areas such as IPOs.

group. In the area of personal loans, it is reinforcing its

 Mizuho Capitalabilities to develop products that will enable it toMizuho Capital ranks among the top domestic venture

respond more flexibly to customers' needs. It is also

capital companies in performance, making full use of its

encouraging customers to deepen and expand theirrich pool of know-how and Mizuho's domestic andbanking transactions through the “Mizuho Mileage

overseas network in its proactive approach to invest-

Club,” a membership services package for individual

ment and consulting.

customers, while improving the convenience of settlement channels using “Mizuho Direct,” its online banking service and ATMs, and strengthening security of
those channels.
As for the needs of SMEs and middle-market corporations for funding and resolution of management
issues, it makes use of the financial functions and networks of Mizuho and business tieups to offer optimal

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

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

Highlights
 Mizuho Bank
Approaches to Individual Customers• MHBK continues to strengthen its consulting capabilities with a view to offering products and services that
better match the life events and financial needs ofcustomers.
• There are now 147 branches with “Mizuho Personal
Square” offering greater focus on individual customers, with the addition of four new ones.
• The number of “Planet Booth” jointly established by
MHBK and MHIS has reached 148.
• Membership of the “Mizuho Mileage Club” hastopped the 6.5 million mark.
• Taking customers' opinions into consideration, MHBK
conducted a rigorous review of the services offeredby the “Mizuho Mileage Club” and strengthened thepreferential treatment associated with commissions.

Targeting SMEs and Middle-Market Corporations• In accordance with efforts to facilitate corporate
finance, strengthened contacts with customers byredeploying headquarters personnel with businessexperience to branches in order to respond more
rapidly to the various needs of SMEs and middlemarket corporations.
• Reinforced its support initiatives for customers
among SMEs and middle-market corporations whoare environmentally conscious.
Providing Services by Transcending the Boundaries
between “Corporate” and “Individual” Customers• The “Consulting Division” and the “Business Promotion
Division for Employees of Corporate Customers” areplaying major roles in responding more flexibly to thediversifying needs of SMEs and middle-market corporate customers, and individual customers.

27

Business Approaches Adopted by Each Global Group

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

Reinforcing Business-Promotion Activities Tailored to the Customer’s Life StageMHBK seeks to become “the best partner for individual customers at all stages of life” by offering a variety of services
that will satisfy customers at each phase of their lives.
As customers face important events in their lives, from starting their first jobs or buying a new home to supporting
their children as they advance through the education system, MHBK offers products and services such as salary remittances and loans that meet their financial needs in a timely fashion.
It is also strengthening its consulting services to satisfy the growing need for asset management services among customers by providing appropriate advice that takes into account their investment requirements based on their future life
plans.
To support these endeavors, it makes extensive use of the RMDB (relationship marketing database). Accumulating andanalyzing information concerning customers on a daily basis enables MHBK to track their life stages and identify theirfinancial needs, making it easier to offer better products and services.

Strengthening Consulting Capabilities
MHBK deploys FC (financial consultants) at each of its branches.
Through its well-developed FC training program, it is strengthening its education of FC who can propose optimal solutions with the customer's benefit in mind at all times. Accurately identifying the customer's investment stance and objectives enables FC to put forward portfolio proposals that match the asset management needs of each individual customer,
thus providing more satisfactory consulting services.

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

Expanding Comprehensive Financial Services through Cooperation with Group Companies
MHBK uses its ties with group companies to offer comprehensive financial services.
To make life more convenient for customers who wish to engage in securities transactions when they visit MHBK
branches, the number of “Planet Booth” set up by MHIS in MHBK branch lobbies had reached 148 as of the end of
March 2009.
MHBK also provides MHTB trust products at the head office and all branches using the agent system for trust banking
business. In particular, customers have a growing need for assistance with inheritance and other matters that affect the
futures of their families, and there is steady annual growth in the number of consultations and transactions in connection
with testamentary trusts and estate distribution services, which handle complicated inheritance procedures on their behalf.

28

Creating Branches and Services that Facilitate Customer Use and Consultation Visits
MHBK continues its proactive efforts to establish what are popularly called “Mizuho Personal Square”—branches with agreater focus on individual customers—as part of its efforts to create a network of more attractive branches that customers can visit for consultations with greater ease, bringing the total to 147 as of the end of April 2009.
In addition to opening three centers in the Tokyo metropolitan area in fiscal 2008, MHBK established a new type ofbranch known as the “Mizuho Personal Square Oyamadai Lounge” in Tokyo's Setagaya Ward in April 2009, primarily tooffer asset management consulting services.
MHBK is also active in running seminars at its head office and branches to allow customers to gain easier access tofinancial information.
It additionally provides consultations on asset management and housing loans on holidays for customers who are toobusy to visit the bank on weekdays and couples who want to use consultation services together in a relaxed atmosphere.
Looking ahead, it will respond to the needs of customers who cannot visit branches easily by proactively strengthening
its consultation services concerning housing loans and asset management via telephone and the Internet.

“Mizuho Mileage Club” Membership Services Enhanced
MHBK's “Mizuho Mileage Club” has won the support of a great many customers, and in March 2009, the number ofpeople signed up for the service exceeded 6.5 million.
In April 2009, it conducted a rigorous review of the services offered, taking customers' opinions into account.
Responding to strong demand from customers for discounts on commissions, it expanded the criteria for commissionfree use of ATMs after banking hours by reducing the required balance from ¥500,000 to ¥100,000. It has also waived
the charges for up to three transfers to other banks per month for customers with ¥500,000 or more in their accounts.
In addition to running a members-only campaign whereby the original mileage point scheme is replaced by usefulpresents for members, it will also enhance the value of the products and services it offers.

Improving Loan Services for Individuals
MHBK is working to respond better to the borrowing needs of individual customers by strengthening its loan products
and services.
In the area of housing loans, it is improving its interest rate plans so that customers can select the repayment schemesthat best suit their needs and life plans.
It is also enhancing its lineup of unsecured loan products tailored to specific borrowing needs by, among other things,
offering the “Mizuho Bank Card Loan,” which features perhaps the most attractive interest rate levels in this segment.

29

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs and Middle-Market Corporations —Targeting SMEs and Middle-Market Corporations

In order to facilitate financing for SMEs, MHBK quickly identifies and shares the issues customers face through ample dialog with them, then responds to their funding needs proactively and swiftly. It also works with other group companies ofMizuho to proactively support customers' growth by correctly grasping their various business needs.

Efforts to Facilitate Corporate Finance
MHBK is working proactively to support growth among SMEs and middle-market corporations by responding accurately
to their increasingly diverse and sophisticated needs.
Under the tough business conditions, MHBK has become more aware than ever before of the role that financial institutions must play in responding smoothly to customers' funding demands. Looking ahead, it is striving to further reinforce
its products and services while enhancing its ability to respond to customers' fund procurement requirements. At thesame time, it is tackling the issue of providing appropriate support for dealing with management problems by devisingmore sophisticated solutions.
Initiatives to Facilitate Corporate Finance

Responding to Funding Needs• Reinforcing loan products responding todiversified customers' needs• Approach to small-scale corporate
customers

Responding to Solution Needs for Management Issues• Business matching(environmental business support)• Initiatives in the agricultural sector• Support for overseas business expansion• Business inheritance• Support for business revitalization, etc.

Strengthening Proposal Capabilities and Customer Contact Points
MHBK has established a solutions business promotion framework to enable it to respond to the varied and sophisticatedneeds of SMEs and middle-market corporations, and offer highly specialized services.
By reviewing its existing branch network and redeploying its RMs, it will build a framework that will allow it to offer
even more expert services. At the same time, it will further strengthen its points of contact with customers by strategically redeploying headquarters personnel with business experience to branches. By creating this kind of proactive business promotion framework, MHBK is endeavoring not only to provide funds but also to raise efficiency in its settlement
operations. It is also strengthening its abilities to propose solutions for management and other problems in a wide rangeof areas.

Approach to Funding Needs
MHBK is strengthening its lineup of products that can meet its customers' needs with precision. These include the ¥1 trillion “Super Wide” strategic loan fund, which responds promptly and proactively to funding demand among SMEs and30

middle-market corporations, and “Mizuho Eco-special” and “Mizuho Eco-assist,” which support customers who adopt a
positive approach to environmental issues with preferential interest rates.
It is also developing and offering new loan products that do not rely excessively on real estate collateral or personal
guarantees. To this end, it proposes loan asset securitization schemes from the perspective of balance sheet controls. It
also offers “Mizuho Movables-backed Loans,” which use movables such as machinery and equipment as collateral, andasset-based loans, which use accounts receivable or inventories and other operating revenue assets as collateral.
Additionally, it is improving its responses to new business funding needs by developing a variety of funding schemes,
including schemes to exploit intellectual property rights, and proactively setting up syndicated loans for SMEs and middlemarket corporations.

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

Approach to Management Issues and Needs
Further Promoting the Solutions Business
MHBK has deployed solutions support experts at headquarters to work closely with its branches in assisting SMEs andmiddle-market corporations with a wide range of management issues, including business and financial strategies.
More specifically, the solutions offered are very diverse, ranging from financing deals in areas such as structured
finance and syndicated loans to solutions associated with business strategies such as business inheritance, M&As and business matching, and advisory services on overseas business expansion.
In the area of support for business inheritance in particular, specialist units covering transactions with corporate andindividual customers provide high-quality consulting functions to deal with their respective needs in a manner that transcends the boundaries between the two segments.
In April 2009, it established Credit Supervision Division IV to provide proactive backing for business revitalization byoffering advice on management and the preparation of plans for revitalizing the businesses of customers with future
potential.

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

31

Business Approaches Adopted by Each Global Group

Global Retail Group— Targeting Individuals, SMEs and Middle-Market Corporations — Environmental Business Support
MHBK has been providing proactive support for environmentally conscious SMEs and middle-market corporations throughbusiness matching schemes since October 2007. Having established a consortium with manufacturers of environmentrelated facilities and environmental service businesses by concluding business matching contracts with them, it works on
introducing the most appropriate environmental business entities to customers among SMEs and middle-market corporations who are interested in making environmental improvements.
In February 2009, MHBK responded to demand from customers who adopt environmental improvement initiatives byhandling the “Mizuho Save the Earth Project—Business Matching Program,” which was attended by some 1,100 companies and resulted in a great many successful business negotiations.

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

Mobilizing Group Strengths
 Support for Overseas Business Expansion
Japanese companies are increasingly looking abroad, and while some are just moving into overseas markets, others aredeveloping businesses they have already established there. In order to satisfy these diverse needs, the bank provides
proactive support for customers' overseas projects through the group's Asian network, which is the most extensive of any
Japanese bank.
Specialist staff in Japan and overseas who are well versed in overseas business provide the best possible information
accurately and quickly according to the needs of the business in question and its development stage—local feasibility
study, overseas business strategy formulation, establishment of overseas subsidiary, post-establishment business management, and so on.
Its specialist staff proactively provide the Mizuho Global CMS and other solutions in response to customers' wideranging overseas business needs, from managing funds at overseas subsidiaries to operational support for imports andexports, and foreign exchange risk mitigation.
The bank draws on Mizuho's collective group strengths to provide powerful backup for customers' global strategies,
offering thoughtful, meticulous support in connection with every individual issue they face.

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

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

32

Promoting Offering Services by Transcending the Boundaries between Corporate and Individual Customers

Promoting the Comprehensive Proposal Approach
The needs of customers in the SME, middle-market corporation and individual segments are constantly diversifying, obliging financial institutions to respond more flexibly to needs that transcend the boundaries between corporate and individual
customers.
For example, one of the most important management issues facing customers in the SME and middle-market corporate
sector is business inheritance because it simultaneously raises succession issues pertaining to the company's ownershipand the owner's own assets. Since it is not just a question of handing on the business, MHBK responds swiftly to theowner's needs both as a business manager and as an individual.
In April 2008, MHBK established a new “Consulting Division” to bring together the corporate consulting functions forcompanies and corporate owners, private banking functions for high-net-worth customers, and trust business cooperation
promotion functions that were once dispersed among various divisions. This division seeks to enhance customer satisfaction by offering comprehensive consulting services that respond to the needs of corporate and individual customers, andcomprehensive financial services in cooperation with MHTB, MHIS and other group companies.
MHBK responds to customers' needs by offering comprehensive services that transcend the boundaries between corporate and individual customers and involve the Consulting Division and group companies. In this way, it aims to build
permanent relationships with customers and establish a firm position as Japan's strongest retail bank.

“Business Promotion Division for Employees of Corporate Customers” EstablishedMHBK provides products and services that satisfy the various needs of senior executives and employees of its own corporate customers and those of MHCB as they face various life events. These include opening accounts for receiving salary
remittances when taking up employment, offering comprehensive proposals on post-retirement lifestyle planning andmanaging retirement allowances, and consultations on housing loans for house purchases.
In an effort to enhance individual customer satisfaction, five offices have been established around the country to specialize in improving services and providing speedy and courteous responses to the diverse needs of these senior executives
and employees.

33

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —Business Environment and Overview of the Global Asset & Wealth Management Group
Against the background of structural changes to society accompanying the dwindling birthrate and aging population, as
well as reforms to legislative and accounting systems, the need for asset management and administration is increasing
among individuals and corporations alike.
In the world of trust business, moreover, revisions to the Trust Business Law in 2004 and Revisions to the Trust Law in2007 lifted restrictions limiting the assets that could be placed in trust, and expanded the scope for new trust schemes
such as intellectual property rights trust schemes based on copyrights and trademarks, and trust schemes associated withbusiness securitization, leading to a steady increase in the number of opportunities to offer solutions that make use oftrust functions.
The Global Asset & Wealth Management Group provides world-class products and services to meet diversified andsophisticated customer needs in the areas of trust and custody services as well as private banking services.

34

Key Group Companies
 Mizuho Trust & Banking

 Asset Management Companies

Trust banks may engage in trust business and related

Mizuho's asset management companies, Mizuho Asset

operations such as real estate, stock transfer agency,

Management and DIAM, constantly pursue optimaland testamentary trust, as well as banking business.

investment results in both the investment trust and the

One particular feature that sets trust banks apart frominvestment advisory businesses as they strive to respondother banks is their asset management function, which

accurately to customers' increasingly diversified andallows them to manage and administer customers'

sophisticated asset management needs.

assets.

 Mizuho Private Wealth Management

MHTB offers a full range of trust services to individual

As a full-fledged wealth management services company,

and corporate customers, and is working on strengthen-

MHPW provides optimal, high-quality, comprehensive,

ing its trust and asset management businesses, handling

integrative, and continued products and services tailoredpensions, asset management, real estate, securitization,

to the financial and non-financial needs of respective

and stock transfer agency business.

customers.

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

Highlights
 MHTB TCSB• The number of testamentary trusts exceeded 13,000
contracts.

• The balance of assets under administration increasedby ¥22 trillion compared with fiscal 2007 to ¥309 trillion, putting it in the top position in the sector.

• Established the new Trust Frontier Development
Department in October 2008 to specialize in productdevelopment.
• Opened a new type of business promotion officeknown as the “Seijo Trust Lounge” in October 2008.

35

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —Expanding the Trust Market
The enforcement of the revised Trust Business Law and the revised Trust Law has allowed greater flexibility with regard totrust schemes and the assets that can be placed in trust. MHTB is proactively taking advantage of this change to develop
trust products that use new assets and new trust schemes.
In October 2008, it established the Trust Frontier Development Department to specialize in enhancing its productdevelopment capabilities using the strengths of the trust bank, with its broad-based services, and fusing them with theknow-how it has accumulated through its operations. Looking ahead, it will develop leading-edge trust products in
response to the diversified needs of its customers.

 Advanced Trust Products
MHTB has developed a number of trust products and schemes. These include Japan's first greenhouse gas emissions credit trust scheme, intellectual property rights trust schemes based on copyrights and trademarks, security trusts, trust
schemes associated with business securitization, and regular insurance claim payment trusts that pay traffic accident insurance claims to victims on a regular basis. It also handles J-ESOPs (employee stock ownership plans)—trusts that use a company's stocks as a welfare service for employees—and escrow trusts to meet asset preservation needs in M&A and realestate-related and other transactions.

Cooperation with Group Companies
MHTB works with companies of Mizuho to provide their customers with trust functions.

 Exclusive Business Promotion Consultation Offices Established
In October 2008, MHTB opened a new type of business promotion office known as a “Trust Lounge” in the Seijo residential area of Tokyo. Specializing in consultations, the lounge offers unique trust services relating to asset management,
inheritances, real-estate-related business, and trusts. MHTB is strengthening its cooperation with MHBK, MHIS, andMizuho Trust Realty Company in the vicinity of the “Trust Lounge.” Future plans call for further expansion of a similar
type of business promotion office specializing in consultations so that MHTB can offer optimal solutions to a wider rangeof customers in cooperation with group companies.

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

36

Testamentary Trusts
At some stage, everyone faces the important question of how
to ensure their invaluable assets are properly passed on to theirheirs. MHTB provides assistance with asset inheritance using
the know-how it has built up over many years and the types of

MHTB's Testamentary Trusts Entrusted(No. of deals)
13,50013,000services that only trust banks can offer. The number of consul-

12,500tation desks is expanding. As of the end of June 2009, MHTB

12,000had signed trust agency contracts for testamentary trust busi-

11,500ness with a total of 19 financial institutions, including MHBK.

11,0000March 2007

March 2008

March 2009

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

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

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

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

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

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

7

asset management products which it offers to individual andcorporate customers.

6

Stock Transfer Agency Services
The stock transfer agency business involves handling various

0

March 2007

March 2008

March 2009

operations associated with stocks on behalf of the stock issuer.

37

Business Approaches Adopted by Each Global Group

Global Asset & Wealth Management Group— Dealing with Customers’ Demands for Asset Management and Administration —As a shareholder registry manager, MHTB manages shareholder
registers, calculates dividends, mails notices convening general
meetings of shareholders, counts voting rights, purchases fromholders of shares less than one unit, and sales to holders of

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

shares less than one unit. It also offers various services and consulting in line with progress in computerization, the increase in
M&A, the enforcement of the Companies Act and the Law

6.5

6.0

Concerning Book-Entry Transfer of Corporate Bonds, etc., andother changes in the external environment. Since the implementation of the Electronic Share Certificate System in 2009, it has

0

acted as a special account management institution handling

March 2007

March 2008

March 2009

Note: Includes foreign shareholders

procedures for altering addresses pertaining to stocks recorded in
special accounts and specifying methods for receiving dividends.

Real Estate Business
MHTB utilizes the extensive finance and asset transfer/inheritance consultation functions that only trust banks can offer to

MHTB's Securitized Assets (Real Estate) under
Administration as Trustee(Trillions of ¥)65help customers resolve their needs and problems effectively
and quickly through real estate brokerage and securitization,

4

appraisals, subdivision sales and land trusts—all areas in which
it has compiled an impressive record over the years.
0

Pensions Business

March 2007

March 2008

March 2009

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

Retirement Benefit Funds under Administrationas Trustee(Pension trust + Solely operated designated money trust +Discretionary investment contract, Book value basis)(Trillions of ¥)20
19with pension schemes in cooperation with the Mizuho Pension
Research Institute—the first such institute in Japan to specialize
in pensions.

18
17
16

Asset Management Business
Through its asset management business, MHTB offers fundswith various investment strategies to a wide range of customers, from public institutions that handle pensions management to corporate pensions. Other services catering to customers' needs include advice pertaining to combinations ofbasic asset allocation and investment strategies.

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

38

0March 2007

March 2008

March 2009

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

Investment Trust Balance(Trillions of ¥)12
11

Global Custody Business10

To better satisfy the diversified needs of customers, MHTB has
created a global custody business network through tieups with

9

TCSB, and its own overseas subsidiaries, Mizuho Trust & Banking(USA) and Mizuho Trust & Banking (Luxembourg).

0March 2007

March 2008

March 2009

TCSB Industry’s Leading Position of Assets under Administration in Japan
In cooperation with the group companies of Mizuho, TCSB has worked to expand its transactions with customers among
financial institutions and institutional investors. As a result, the balance of assets under administration reached ¥309 trillion as of the end of March 2009, maintaining TCSB's leading position among trust banks specializing in asset administration services. It will continue to exploit the economies of scale that result from its strong base of assets under administration to provide high-quality, high-value-added trust, and custody services that match the needs of its customers.

Mizuho’s Asset Management Performance Rated Highly
Mizuho's asset management companies have earned an
excellent reputation among investment trust evaluation organizations for their investment expertise and unique productcharacteristics.
By offering investment products that make the most of theAward-Winning
MHAM
Lipper Fund Awards Japan 2009
Best FundDIAM

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

Morningstar Fund of the Year 2008
Best Fund
Lipper Fund Awards Japan 2009
Best Group (overall)Best Fund

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

39

Initiatives to Strengthen Cooperation among Group Companies

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

Promoting Cooperation among Group Companies

MHBK

MHCB

MHIS

MHSC

MHTB

Approach to Individual Customers

consultations, offering unique trust services relating

MHBK, MHIS and MHTB are strengthening their cooper-

to asset management, inheritances and real-estate-ation to make their services more accessible to cus-

related business, and is strengthening its cooperation

tomers while working to identify their asset managementwith MHBK, MHIS and Mizuho Trust Realty Company

and administration needs accurately according to theirin the vicinity of “Trust Lounge.”

life plans.

 In cooperation with MHIS, MHBK has set up joint
branches known as “Planet Booth” at its head office

Approach to SMEs and Middle-Market
Corporations

and over one-third of its branches.

In addition to strengthening initiatives to facilitate corpo-

 MHBK offers testamentary trust, asset management

rate financing, MHBK, MHIS and MHTB are working

trust and other trust banking services as an agent for

closely together to proactively support their customers'

MHTB at its head office and all its branches.

growth by accurately responding to their various busi-

 MHTB has opened a new type of business promotion
office known as a “Trust Lounge” to specialize inness needs.

 MHBK utilizes MHCB's overseas network to support
customers who are expanding overseas.

 MHIS cooperates with MHBK to respond to its cus-

The Number of Planet Booths(Branches)150

tomers' fund management needs through securities
sales agency and introduction business.

 To facilitate smooth fund procurement by customers
100

in the area of public stock offerings, MHIS supports
IPOs as a securities company; Mizuho Capital provides
advice on investments and IPOs; and MHTB offers

50

advisory and stock transfer agency services.
040

 MHTB meets customers' funding needs by offering the
March 31, 2007

March 31, 2008

March 31, 2009

“Noteless” lump-sum accounts payable trust scheme.

Approach to Large and Global Corporations
and Other Entities

Strengthening Frameworks for Stronger
Cooperation among Group Companies

Working together, MHCB, MHSC and MHTB provide

 MHBK has established a Business Promotion Division foradvanced solutions by making the most of their com-

Employees of Corporate Customers to offer products

prehensive financial capabilities to help customers

and services to the employees of customers of MHCB.

increase their corporate value from a medium- to long-

 MHBK has also established a Consulting Division (Trustterm perspective.

Promotion Department) and by strengthening cooper- MHCB works together with MHSC to satisfy cus-

ation with MHTB, offers responses that transcend thetomers' needs in such areas as equity and bondboundaries between “corporate” and “individual”

issuance, and M&A.

customers in the area of business inheritance.

 MHCB leverages its financial holding company (FHC) Since this means offering MHTB's sophisticated con-status in the United States to cooperate with MHSC's

sulting functions to MHBK's customers, it involves

overseas subsidiary in offering the full range of bank-proactive interchanges of human resources.

 Following the revisions of the firewall regulations

ing and securities services.

 Following the revisions of the firewall regulations

between the banking and securities businesses, rela-

between the banking and securities businesses intionship managers (RMs) of some of MHCB's busi-

June 2009, MHCB and MHSC further strengthened

ness promotion divisions work concurrently as MHSC

their cooperative model with a view to offering evenstaff members aiming to work as comprehensive

higher-quality solutions.

contact persons for customers of MHCB and MHSC.

 MHTB cooperates with MHCB in providing trust functions such as trust schemes for asset securitization andIt has made Mizuho easier to offer both banking andsecurities services.

making effective use of real estate.
Proportion of Key Operations of MHTB Handled through Group Cooperation
Testamentary Trust AcceptanceReal-Estate-Related Earnings

Fiscal 2008

Fiscal 2003
34%

85%

Stock Transfer Agency Business(No. of pre-IPO companies entrusted)

Fiscal 2008

Fiscal 2003

55%

Fiscal 2008

Fiscal 2003

94%

45%
81%

41

CSR Activities

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

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

Support for Financial Education

 Maintain trust and protect depositors.

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

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

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

issues they will face in their daily lives.

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

Enhance Corporate Governancethrough sound and appropriate management.

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

Environmental Initiatives

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

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

Highly Responsive Communications

global warming, etc. and reduce our own consumption

 Realize responsive communications with stakeholders byof resources.

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

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

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

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

 Finance for Environment-Related Businesses
MHBK has strengthened its Mizuho Eco-Special loan product, which provides interest rate support for SME
customers who have adopted environmental programs.
MHCB is involved in financing wind and solar power generation and other environment-related projects,
and its loan balance amounted to ¥88.3 billion as of the end of March 2009.

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

 Emissions Trading Business
Four group companies—MHBK, MHCB, MHTB and MHIR—are working on initiatives in the emissions tradingbusiness from various angles. In October 2008, Mizuho became the only megabanking group in Japan to be
entrusted with the business of promoting the Clean Development Mechanism (CDM) launched by the Ministryof Economy, Trade and Industry (METI). Under this certification scheme for lowering domestic emissions ofgreenhouse gases, it supports the reduction of CO2 emissions by SMEs through environmental businessmatching.

Multifaceted Barrier-Free Initiatives
MHBK is promoting multifaceted barrier-free initiatives in the form of the Heartful Project to enable anyone to use its
facilities and services easily, regardless of age, gender or disability.
It has brought in experts in universal design to spearhead initiatives in creating barrier-free branches, facilities andequipment, design product pamphlets and websites that are easy to understand, and promote education aimed at
improving interaction with customers.
Development of Barrier-Free Facilities (Work completed at 424 manned branches as of March 31, 2009.)
418

393

Automatic entrance doors

366

Step-free design

385

Wider corridors

356

417

Guidance facilities for the visually impaired

348

411

159 162

Parking spaces for wheelchair users

184 186

Customer elevators*

123 126

Installation of wheelchair accessible elevators*

293 300

Customer toilets
166 172

Multifunction/wheelchair toilets

412

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

0

100

200

300

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

43Brand Strategy

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

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

Brand Strength
EnterprisingOpen

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

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

serve our customers.

In other words, each of us should

We think creatively about our busi-

We listen sincerely to our customers

anticipate how society and customers

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

make a difference in our customers'

ness any time we have the chance.

duce the most advanced and unique

lives. We keep focused on our cus-

We want to be open all the time.

products and services to better serve

tomer needs and continuously strive to

our customers. Because of our innova-

help them achieve their dreams.

tive mindset, we help our customers

We act enterprising all the time.

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

44

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

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

Brand Slogan

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

45

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

Corporate Governance Policy

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

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

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

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

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

through corporate governance, with strict observance of

Their participation serves to strengthen the management

all laws and regulations, pursuing our business activities

and monitoring functions of the board of directors.

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

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

In addition, we established the “Mizuho Code of

directors and directors' compensation, a Nomination

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

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

lished to advise the board of directors on these matters.

 Corporate Auditors
Social Responsibility and Public Mission:

The Board of Corporate Auditors receives reports on

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

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

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

outside corporate auditors.

ensure that we maintain close communication with the

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

directors' duties and review our business performance

activities in a manner that is in harmony with societal

and financial condition by attending board meetings andexpectations.

other important meetings to receive reports on the busi-

Placing Our “Customers First”:

ness from directors and other corporate officers, inspect-

We place our customers first and always offer the best

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

customers is the basis for the trust by our shareholders,

tors, among others.

society and all other stakeholders.

 Execution of Duties

Strict Compliance with Laws, Regulations and

MHFG introduced the executive officer system in order toInternal Rules:

separate managerial decision making and its implementa-

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

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

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

also strive to respect the laws, customs and cultures of

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

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

Respect for Human Rights:

discusses important matters concerning the execution of

We respect the human rights of our customers, corporate

business operations. Business Policy Committees were

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

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

46<Business Policy Committees>

We will firmly oppose the activities of any anti-social

Portfolio Management Committee:

elements that threaten the rule of law, public order

Discusses, coordinates and monitors basic portfolioand safety.

policies and their implementation.

ALM & Market Risk Management Committee:

specific issues. These committees discuss, disseminate

Discusses, coordinates and measures performance of

information and promote policies concerning operations

basic ALM policies, risk planning, fund procurement

under their jurisdiction.

and investment, and market risk control.
Compliance Committee:

Business Continuity Management Committee:

With the participation of external experts (one lawyer

Discusses, disseminates information and promotes

and one certified public accountant (CPA)) as special

basic Business Continuity Management policies.

members, discusses and coordinates legal compliance

Human Rights Awareness and Promotion Committee:

oversight, and matters related to antisocial elements

Discusses, disseminates information and promotes

and the handling of accidents.

policies concerning human rights initiatives.

Information Security Management Committee:

Committee to Encourage Employment of People

Discusses and coordinates the promotion of policies onwith Disabilities:

information management, risk management pertaining

Discusses, disseminates information and promotes

to information security, compliance with the Law

policies concerning the employment of handicapped

Concerning the Protection of Personal Information,

people and securing their role in the workplace.

and rules and regulations concerning information

Social Contribution Committee:

management.

Discusses, disseminates information and promotes

Disclosure Committee:

policies concerning activities that contribute to society.

Discusses, coordinates and measures performance ofEnvironmental Issues Committee:

basic disclosure policies and controls.

Discusses, disseminates information and promotes

CSR Committee:

policies concerning global environmental initiatives.

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

addressed, action plans and CSR reports.

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

cusses and determines important matters concerning

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

MHFG's Corporate Governance Structure
General Meeting of Shareholders

Nomination Committee
Compensation Committee

Board of Directors

Includes outside directors

Outside Directors

Audit

Corporate Auditors
Board of Corporate Auditors
Outside Corporate Auditors

Supervision
Management
Executive Management
Committee

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

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

Internal Audit Group47

Management Systems

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

an independent group in its own right under the control

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

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

External experts in their field (consisting at present of

MHFG, we manage profits for the group based primarily

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

on our principal banking subsidiaries and other core

Committee to strengthen the specialist nature and impar-

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

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

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

closer together through the unifying force of MHFG, we

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

core group companies* on the basis of the reports it

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

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

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

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

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

• risk controls and profitability assessments based on

regular basis and at other times as necessary by the head

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

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

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

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

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

cooperation so as to enhance effectiveness and efficiency

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

drawn up by MHFG.

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

(As of June 25, 2009)

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

48

Basically, the group companies have adopted a com-

Human Resources System

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

Vision for Human Resources: ROE on Human
Resources Investment

models.

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

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

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

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

ROE on Human Resources Investment

Specifically, in addition to our principal banking subResponsibility:

Observe the principles of
independent judgment andself-accountability.

Opportunity:

Provide equal opportunity.

Employability:

Develop expertise to enhancecompetitiveness.

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

Establishing a Corporate Culture Full of Vitality

MHFG

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

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

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

core group companies

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

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

Subsidiaries of the above group companies(As of June 25, 2009)(5) Being accountable for all actions.
*Personnel evaluation scheme whereby personal evaluations of managers
involve subordinates and persons from other divisions with whom they
have close working relationships.

49

Management Systems

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

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

Employees are employed by one of the group companies

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

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

maximum innovativeness and speed.

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

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

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

Positive Action Initiatives

the right person in the right job.

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

female employees, we are taking joint measures in our

We have put in place multi-featured compensation sys-

approach to positive action*.

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

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

Note: Contents appearing in this section describe the group's human resources
system in Japan.
(As of June 25, 2009)

Rejuvenating the Organization and Pursuing
Specialization
In January 2003, we launched an internal job application
system for branch general manager positions to encourage the quick development and advancement of younger
employees. As of May 31, 2009, we achieved a dynamic
rejuvenation of the organization by selecting 69 younger
and mid-carrer applicants in their thirties and appointing
them as branch general managers.
Common Platform for Human Resources
MHFG

MHCB

MHBK

MHTB

MHSC

MHIR

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

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

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

50

CommonPlatform

Internal Control Systems
Compliance Structure

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

Basic Compliance Policy

Hotline, a system designed for obtaining concerns

As one of Japan's leading comprehensive financial

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

social responsibilities and public mission at all times. We

Other core group companies such as MHTB and MHSC

define compliance as “the strict observance of all laws

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

the characteristics of their respective businesses.

rate activities that conform to the norms accepted by

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

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

group companies maintains its own compliance structure

appropriate responses when necessary.

in line with the basic policies established by MHFG.

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

tored and managed by their respective parent.

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

Compliance Activities

tive company, and such chief executive officers also head

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

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

MHCB, MHBK, and othercore group companies

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

51

Internal Control Systems

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

management required for achieving the following

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

our customers and improving customer convenience.

book for rigorous compliance enforcement and clarifies

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

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

products etc.) to customers regarding transac-

We conduct compliance training for directors, seniortions and products.

management and employees so that they are fully

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

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

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

management).

Every fiscal year, each of our group companies estab-

4. Ensuring the adequacy of managing customers

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

operations are outsourced (management ofrelated to the management of the compliance frame-

outsourcing).

work, training and assessments. Progress regarding the

5. Ensuring the adequacy of the management of

implementation of the compliance program is monitoredconflicts of interest refers to the management of

every six months.

the measures to be taken in order to appropriately(As of June 25, 2009)

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

Management of Customer Protection
Structure

Customer Protection Structure
Board of Directors

Basic Approach
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 of

Chief Executive Officer
(CEO)

MHFG
Executive
Management Committee

Officers responsible for the general managementof customer protection(Compliance and Legal Affairs Division)other 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.

Departments in charge ofmanagementof customer protection
Explanation of products
etc. management

Customer information
management

Customer service
management

Conflicts of interest
management

Outsourcing
management

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

MHCB, MHBK, and othercore group companies

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

52

Subsidiaries of the above group companies

In addition to designating the compliance department

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

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

requests for disclosure from “data subjects” (the people

structure by stipulating which departments are in charge

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

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

Overview of the Information Security
Management Systemagement tasks).

We have clarified the group management system as well

The chief executive officer of MHFG appoints officers

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

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

protection in order to promote appropriate management

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

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

the individual companies are to act as information secu-

task. The department responsible for each customer

rity management departments.

management task draws up and implement proposals

The chief executive officer of MHFG appoints a chief

concerning the management tasks under their jurisdic-

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

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

panies. The principal banking subsidiaries and other core

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

agement at their own group companies.

addition, the Information Security Management Office(As of June 25, 2009)has been established within the Compliance and Legal
Affairs Division to specialize in information security management and provide centralized monitoring and controlof the information security management situation at ourInformation Security Management
SystemInformation Security Management System
Board of Directors

Basic Approach
As the advanced information-telecommunication society

Chief Executive Officer(CEO)evolves and use of information increases exponentially,

priate usage of the same assets becomes the foundationof the company's competitiveness. As a provider of comprehensive financial services in Japan and abroad, we

Executive
Management Committee
Information Security
Management Committee

appropriate protection of the informational assets held by
a company becomes a social responsibility, while appro-

MHFG

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

Head of each unit

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 man-

MHCB, MHBK, and othercore group companies

agement as all acts associated with the appropriate protection and use of group informational assets. This

Subsidiaries of the above group companies

includes adopting information security management

53Internal Control Systems

principal banking subsidiaries and other core group companies. The information security management situation atStrengthening Disclosure Controls andProcedures

subsidiaries of our principal banking subsidiaries and othercore group companies is monitored and managed by our

Basic Principles

principal banking subsidiaries and other core group com-

We aim to win the highest regard of our shareholders

panies themselves. In every organizational unit, the head

and the market and to earn the trust of society as Japan'sof each unit is also responsible for information security

leading comprehensive financial services group. For thismanagement, and an information security management

reason, we place one of the highest management priori-

officer is appointed to check on how information is han-ties on continuing to disclose information to our cus-dled and ensure that personnel are fully aware of andtomers, shareholders, and investors both in and outside

well trained in safety management measures.

Japan in a fair, timely and appropriate manner, in order

Based on this information security management sys-that they may form proper judgments and appraisals oftem, we have drawn up and published the Privacy Policy

the group. To achieve this aim, we observe applicable

Regarding Customer Information* that complies withdomestic and international laws and regulations as well

Japan's Law Concerning the Protection of Personalas stock exchange rules relating to corporate disclosure,

Information. We are also building a system to deal withand we establish and implement appropriate Disclosure

requests for disclosure, and strengthening our safety

Controls and Procedures.

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

Outline of Disclosure Controls and Procedures
 Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are established

MHFG obtained certifications for the Information

to observe applicable domestic and international laws

Security Management Systems of all divisions of the com-and regulations as well as stock exchange rules and topany under both the Conformity Assessment Scheme,

implement fair, timely and appropriate corporate disclo-“ISO/IEC27001: 2005,” the international standard, andsure. The Disclosure Controls and Procedures are the“JIS Q 27001: 2006,” the domestic standard. MHBK also

process carried out by directors, officers and employees

obtained the same certifications for its “Planning, promo-of our group and include internal controls designed totion and sales supporting divisions of financial products

provide reasonable assurance regarding the reliability ofand services for individuals, corporate and public sector

financial reporting and the preparation of financial state-customers” of the head office.

ments. We have established the basic principles underly-

We are striving to strengthen our information man-ing our Disclosure Controls and Procedures as well as ouragement procedures by promoting efforts to obtain ainternal rules related to Disclosure Controls andbroader range of credentials. This includes encouraging

Procedures that govern the management framework forour principal banking subsidiaries and other core groupthe entire group including group companies, and wecompanies to acquire certification in specific operational

endeavor to establish, implement and continuously

sectors.

improve our Disclosure Controls and Procedures. Our dis(As of June 25, 2009)

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

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

their implementation. In addition, evaluation of the effec-

Risk Management Structure

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

Commitment to Risk Management

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

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

Progress in financial deregulation and internationalization

as well as all managers and other employees within our

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

disclosure. We have also developed the “Internal

ous risks, including credit, market operations, information

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

obtaining concerns regarding questionable accounting or

nize the conducting of operations tailored to the risks

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

management. In order to implement our business strat-

Moreover, we established “Disclosure Policy” which

egy while maintaining our financial stability, we maintain

includes basic principles regarding disclosure and frame-

comprehensive risk management and control measures.

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

announce on our website as well as this annual review.

established by its board of directors that are applicable toDisclosure Controls and Procedures System
Board of Directors
Chief Executive Officer
(CEO)

MHFG

risks to be managed, set forth the organizational structure and provide for the human resources training necessary for appropriate levels of risk management. The

Disclosure Committee

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

policies also provide for audits to measure the effectiveness and suitability of the risk management structure. Inline with these basic policies, we maintain various measures to strengthen and enhance the sophistication of
our risk management system.

Every organizational unit
Head of each unit

the entire group. These policies clearly define the kinds ofDisclosure Control
Officer

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

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

receives reports and applications concerning the risk
management situation from our principal banking sub-(As of June 25, 2009)

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

55

Internal Control Systems

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

MHFG
Report therisk management situation.

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

Give instructions
concerning
risk management.

Report the risk
management situation.

Subsidiaries
managed by theprincipal banking
subsidiaries andother core groupcompanies

General Concept of Risk Management
Approach to Basel II
The BIS Regulations, the regulations for international

Basic Approachstandards of the health of banks first implemented

We classify our risk exposures according to the various

in 1992, have been revised in light of developments

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

in risk management methods in order to betterrisk and operational risk, and manage each type of riskreflect the actual substance of the risks. These

according to its characteristics. In addition to managing

amended regulations, known as “Basel II,” focus oneach type of risk individually, we have established a risk

three main points. The first is minimum capitalmanagement structure to identify and evaluate overallrequirements relating to risk which should be main-

risk and, where necessary, to devise appropriate

tained by banks, with respect to which the calcula-responses to keep risk within limits that are manageriallytion method for credit risk was changed andacceptable in both qualitative and quantitative terms. In

operational risk was added. The second includes aline with the basic policies relating to overall risk manage-

supervisory review process with respect to assess-ment laid down by MHFG, companies within the groupment of risks that cannot be fully addressed throughidentify risk broadly and take a proactive and sophisticat-

minimum capital requirements alone. The third is

ed approach to risk management, including methodolo-

market discipline allowing for assessment by thegies for operations that involve exposures to multiple cat-market through appropriate disclosure. We haveegories of risk such as settlement and trust businesses.

obtained the necessary approvals from government
authorities on calculation methods for each type of

Risk Capital Allocation

risk and have been calculating capital adequacy

We endeavor to obtain a clear grasp of the group's over-ratios based on Basel II from March 31, 2007, when

all risk exposure and have implemented measures to keep

the Basel II was implemented in Japan. With regard

such risks within the group's financial base in accordanceto credit risk, we have been applying the Advancedwith the risk capital allocation framework. More specifi-

Internal Ratings-Based Approach, the most sophisti-cally, we allocate risk capital to our principal banking sub-cated of the three methods provided for by Basel II,

sidiaries, including their respective subsidiaries, and otherfrom March 31, 2009. In addition, we are planningcore group companies to control risk within the limits set

to apply the advanced measurement approach forfor each company. We also control risk within manageri-

operational risk and are making preparations

ally acceptable limits by working to ensure that the over-related thereto.

all risk we hold on a consolidated basis does not exceed

Glossary

56

shareholders' equity and other measures of financial

 Advanced Internal Ratings Based (AIRB) Approach

strength. To ensure the ongoing financial health of

AIRB is one of the calculation methods for credit risk assets provided forby Basel II. Under AIRB, both probability of default and loss given default
used for calculation of credit risk assets are estimated by the bank's own
internal experiences.

MHFG, our principal banking subsidiaries and other coregroup companies, we regularly monitor the manner inAllocation of Risk Capital(Example)
MHCB

MHFG

MHCB

Capital account, etc.

Principal
banking
subsidiaries
and othercore groupcompanies'
risk exposure*

MHBK
MHTB

Allocated risk capital

The group's risk
exposure

The group's financial
strength

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

Credit risk
Market risk

Allocation toeach business unit

Equity risk
Operational riskGroupcompanies, etc.

MHSC

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

MHBK
MHTB
MHSC

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 basic credit risk management policies. In addition, the portfolio

Credit Risk Management

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

Basic Approach

management and monitoring for the group. The chief

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

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

credit risk management planning and operations. The

loss of, the value of assets and off-balance-sheet instru-

Risk Management Division and the Credit Risk

ments, as a result of deterioration in a counterparty's

Management Division of MHFG jointly monitor, analyzefinancial position. We have established the methods andand submit suggestions concerning credit risk and formu-

structures necessary for grasping and managing credit

late and execute plans in connection with basic mattersrisk, which has become increasingly complex due topertaining to credit risk management.

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

ing sophistication of transactions. MHFG manages credit

Subsidiaries and Other Core Group Companies

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

Our principal banking subsidiaries and other core group

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

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

is “credit management,” in which we manage theforth by MHFG. Each company's board of directors deter-

process for each individual transaction and individual

mines key matters pertaining to credit risk. Our principal

obligor from execution until collection, based on ourbanking subsidiaries have each established business pol-assessment of the credit quality of the customer. Throughicy committees to discuss and coordinate overall manage-

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

ment of their individual credit portfolios and transaction

The second is “credit portfolio management,” in which

policies towards obligors. The senior executive officer of57

Internal Control Systems

risk management guidance to individual business promo-

Credit Risk Management Structuretion offices. MHSC and other core group companies fol-

MHFG

Board of Directors

low credit risk management procedures that suit thecharacteristics of their respective business sectors.

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

Executive Management
Committee

 Credit Business Regulations

Portfolio Management
Committee

The basic code of conduct for all of our officers andemployees engaged in the credit business is set forth inour credit business regulations. Seeking to fulfill the bank's

Risk Management Division, Credit Risk Management Division•Set risk management policies•Give instructions concerning
risk management

determined in light of fundamental principles focusing on•Report the risk
management situation

MHBK

MHTB

public welfare, safety, growth and profitability.

 Internal Rating System

Principal banking subsidiaries andother core group companies
MHCB

public and social role, our basic policy for credit business is

MHSC

Other coregroup
companies

One of the most important elements of the risk management infrastructure of our principal banking subsidiaries
is the use of an internal rating system that consists ofcredit ratings and pool allocations. Credit ratings consist

Board of Directors

Chief Executive Officer
Senior executive officers
responsible for risk management

Principal Banking
Subsidiaries
Executive Management
Committee
Business Policy Committees

of obligor ratings which represent the level of credit riskof the obligor, and transaction ratings which represent
the possibility of ultimately incurring losses related toeach individual claim by taking into consideration thenature of any collateral or guarantee and the seniority of
the claim. In principle, obligor ratings apply to all obligors

Divisions responsible for credit risk management(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
the obligors, as well as special reviews as required when-58

each principal banking subsidiary responsible for risk

ever the obligor's credit standing changes. This enables

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

agement planning and operations. The credit risk manage-

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

responsible for credit management and credit risk measur-

an initial phase of the self-assessment process regarding

ing and monitoring, and such division regularly presents

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

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

or classifications and are an integral part of the process

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

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

credit risk management. To provide checks and balances,

instruments (Please refer to Connection between Obligor

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

lished credit review divisions to function as internal audi-

Assessments, Claims Disclosed under the FRL and Non-

tors that are independent of the business divisions.

Accrual, Past Due & Restructured Loans). Pool allocations

 Individual Credit Management

are applied to small claims that are less than a specified

Our principal banking subsidiaries use a unified credit rat-

amount by pooling customers and claims with similar risk

ing system and credit risk measurement tools to ascertain

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

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

small claims within each pool. We generally review thetions from these viewpoints, providing internal audits andappropriateness and effectiveness of our approach toConnection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments,
Claims Disclosed under the FRL and Non-Accrual, Past Due & Restructured Loans
Definition of Obligor
Obligor Classifi- Ratings
cations of Self- (Major
Assessment Category)Definition of Ratings

Category I(NonCategorized)

Category II

Category III

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

Obligors whose certainty of debt fulfillment

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

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

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

All credit given
to Normal
Obligors.

NormalClaimsObligors whose current certainty of debt fulfill-

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

E1
Watch
Obligors

E2 R

Intensive
Control
Obligors

F1

Substantially
Bankrupt
Obligors

G1

Bankrupt
Obligors

H1

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

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

Claims forSpecialAttention

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

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

Method for Reserves and Write-Offs
Normal Obligors

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

Watch Obligors

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

Intensive Control
Obligors

Substantially
Bankrupt Obligors
Bankrupt Obligors

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

obligor ratings and pool allocations once a year in accor-balance-sheet instruments and write-offs. During thedance with predetermined procedures.

process of self-assessment, obligors are categorized into

 Self-Assessment, Reserves and Write-Offs

certain groups taking into consideration their financial

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

status of assets both as an integral part of credit risk

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

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

categorized into certain classes based on the risk of59

Internal Control Systems

impairment. This process allows us to identify and control
the actual quality of assets and determine the appropriate

Loss Distribution
Frequency

accounting treatment, including reserves for loan losses
Averageand off-balance-sheet instruments and write-offs.
Specifically, the credit risk management division of eachof our principal subsidiaries is responsible for the overall

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

control of the self-assessment of assets of the respective
banking subsidiaries, cooperating with the administrative
divisions specified for each type of asset, including loan

Loss amountportfolios and securities, in executing and managing
self-assessments.

 Credit Screening

Credit VaR
Expectedloss

Unexpected loss

Prevention of new non-performing loans through routine
credit management is important in maintaining the qual-

Portfolio Management

ity of our overall loan assets. Credit decisions involve

 Risk Measurement

analysis and screening of each potential transaction

We use statistical methods to manage the possibility ofwithin the relevant business division. In case the screen-loan losses by measuring the expected average loss for aing exceeds the authority of the division, the credit divi-

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

sion at headquarters carries out the screening. The credit

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

division has specialist departments for different indus-

In establishing transaction spread guidelines for credit

tries, business sizes and regions, carries out timely andtransactions, we aim to ensure an appropriate return from

specialized examinations based on the characteristics ofthe transaction in light of the level of risk by utilizing

the customer and its market, and provides appropriate

expected losses as a reference. Also, we monitor ouradvice to the business division. In addition, in the case ofcredit portfolio from various perspectives and set certain

obligors with low obligor ratings and high downside

limits so that losses incurred through a hypothetical real-risks, the business division and credit division jointly clar-ization of the full credit VaR amount would be within theify their credit policy and in appropriate cases assist oblig-

amount of risk capital and loan loss reserves.

ors at an early stage in working towards rehabilitation.

 Risk Control Methods

 Collection and Disposal of Non-Performing Loans

We recognize two types of risk arising from allowing too

With respect to collection and disposal of non-performing

large a proportion of overall credit risk to be allocated inloans, our specialist unit maintains central control andcertain areas. One type is “credit concentration risk,” which

pursues corporate revitalization or collection efforts, as

stems from granting excessive credit to certain individual

appropriate, toward taking the non-performing loans off-counterparties. The other type is “chain-reaction default

balance. Specifically, we believe that supporting the revi-

risk,” which arises from granting excessive credit to certain

talization efforts of corporations is an important role forcorporate groups, industrial sectors and other groupings.

financial institutions, and we support corporations under-

We manage these risks in line with our specific guidelines

going revitalization by reviewing business plans, advisingfor each. The individual risk management divisions of ouron revitalization methods and utilizing corporate revital-

principal banking subsidiaries are responsible for monitor-

ization schemes such as divestitures and mergers anding adherence to these guidelines and reporting to theiracquisitions, taking advantage of our group-wide

respective business policy committees. (Please refer toresources. These efforts have been steadily producing sat-

Allocation of Risk Capital and Control of Credit Risk.)

isfactory results. In addition, we work on final disposal of Portfolios of Our Principal Banking Subsidiaries

non-performing loans efficiently and swiftly by conduct-

60

and Certain Other Core Group Companies

ing bulk sales and by utilizing Mizuho Servicing, our sub-While MHCB's credit portfolio consists primarily of loans

sidiary that specializes in performing debt collection

to Japanese public companies and other major Japaneseservices for our group companies.

enterprises, it also includes a significant proportion of

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital
Credit concentration risk

Chain reaction default risk

 Individual company ratings-based
credit guidelines

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

Equivalent to credit concentration risk amounts

loans to overseas corporations, including foreign sub-

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

Equivalent to chain reaction default risk amounts

Market and Liquidity Risk Management

sidiaries of Japanese corporations that are diversified interms of the regions in which the borrowers are located.

Basic Approach

MHBK's portfolio is diversified among relatively small

We define market risk as the risk of losses incurred by theaccounts centered on individuals, domestic corporationsgroup due to fluctuations in interest rates, stock prices

including mainly small and medium-sized enterprises andand foreign exchange rates. Our definition includes the

middle-market corporations, public sector entities andrisk of losses incurred when it becomes impossible to exe-other customers in Japan. While retaining the principal

cute transactions in the market because of market confu-

features of each of the two banking subsidiaries' respec-

sion or losses arising from transactions at prices that are

tive portfolios, we aim to reduce expected losses while

significantly less favorable than usual. We define liquidity

simultaneously utilizing sophisticated financial tools

risk as the risk of losses arising from funding difficulties

based on which they make strategic acquisitions anddue to a deterioration in our financial position that makes

sales of assets. While closely monitoring the potential forit difficult for us to raise necessary funds or that forces us

unexpected losses, they also aim to raise overall groupto raise funds at significantly higher interest rates thancapital efficiency, boost profitability and shareholder

usual. MHFG manages market and liquidity risk for thevalue, and enhance the sophistication of their credit risk

group as a whole.

management.

Market Risk Management Structure
MHCB's Credit Portfolio Market Risk Management of MHFG

Other

Our board of directors determines key matters pertaining

Asia
Europeto market risk management policies. The ALM & market
Japan

North
Americarisk management committee of MHFG 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 MHFG is
responsible for matters relating to market risk manage-

MHBK's Credit Portfolio
Publicsector entities

ment planning and operations.

Other

Individuals

The Risk Management Division of MHFG is responsible
Domestic SMEs
and middle-market
corporations

for monitoring market risk, reports and analyses, proposals, setting limits and guidelines, and formulating andimplementing plans relating to market risk management.
The Risk Management Division assesses and manages
overall market risk of the group. It also receives reports
from our principal banking subsidiaries and other core

(At March 31, 2009)group companies on their market risk management that61

Internal Control Systems

Market and Liquidity Risk Management Structure

taken into account including business strategies, historicallimit usage ratios, risk-bearing capacity (profits, total capi-

MHFG

Board of Directors

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

Chief Executive Officer(CEO)

Executive Management
Committee
ALM & Market Risk
Management Committee

Head of Risk Management
Group (CRO) Market Risk Management at Our Principal
Banking Subsidiaries and Other Core Group
Companies
Our principal banking subsidiaries and MHSC which

Risk Management Divisionaccount for most of the group's exposure to market risk
have formulated their basic policies in line with the basic•Set risk management policies•Approve limits•Give instructions concerning
risk management•Report the risk
management situation•Apply for limits

policies determined by MHFG. Their boards of directors
determine important matters relating to market risk
management while their chief executive officers are

Principal banking subsidiaries andother core group companies
MHCB

MHBK

MHTB

MHSC

Other
core groupcompanies

responsible for controlling market risk. Their respective
business 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 mat-

Board of Directors

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

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

Offices
Risk Management Divisionters relating to basic asset and liability management policies, risk planning and market risk management andpropose responses to emergencies such as sudden market
changes. The chief risk officer of each subsidiary is responsible for matters pertaining to planning and implementing

Middle Offices

market risk management. Based on a common group risk

Front Offices

capital allocation framework, the above-mentioned subsidiaries manage market risk by setting limits according to
the risk capital allocated to market risk by MHFG.

62

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

These companies have established specialized company-

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

grated monitoring of market risk, submit reports, analyses

management committee of MHFG on a regular basis.

and proposals, set limits and formulate and implement

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

status of market risk management to their respective chief

companies and thereby prevent market risk from exceed-

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

and to their board of directors and executive management

strength represented by capital, etc. The amount of risk

committee on a regular basis. They also provide regular

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

additional costs that may arise in order to close relevant

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

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

independent of their front offices, which engage in mar-tion limits based on interest rate sensitivity as needed.

ket transactions, and their back offices, which are

These limits are discussed and coordinated by the ALM

responsible for book entries and settlements. When VaR is& market risk management committee, discussed further

not adequate to control risk, the middle offices manage

by the executive management committee, then deter-risk using additional risk indices, carry out stress tests andmined by the chief executive officer. Various factors areset stop loss limits as needed. They monitor their market

liquidity risk for individual financial products in the market

raised in the market. As with MHFG, the above-mentioned

while taking turnover and other factors into consideration.

companies have established classifications for the cash
flow affecting them, ranging from “normal” to “cause for

Liquidity Risk Management Structure

concern” and “critical,” and have established procedures Liquidity Risk Management of MHFG

for cases which are deemed to fall into the “cause for

Our liquidity risk management structure is generally theconcern” or “critical” categories.

same as the market risk management structure described

Each subsidiary has adopted stringent controls that callabove. However, the head of the Financial Control &for the submission of reports on liquidity risk management

Accounting Group of MHFG is additionally responsible forand cash flow management to the ALM & market risk

matters relating to planning and running cash flow man-

management committee and other business policy com-agement operations, while the Financial Planning Division

mittees, the executive management committee and theis responsible for monitoring and adjusting the cash flow

chief executive officer of each subsidiary.

management situation and for planning and implementing Our Response to Dislocation in Global Financial

cash flow management. Reports on the cash flow situa-

Marketstion are submitted to the ALM & market risk management

The dislocation in global financial markets stemming

committee, the executive management committee andfrom the U.S. subprime loan issues that began in the fis-the chief executive officer.

cal year ended March 31, 2008 worsened during the fis-

We measure liquidity risk using indices pertaining to

cal year ended March 31, 2009. Based on such market

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

environment, we have (i) strengthened the cash manage-

Limits on liquidity risk are discussed and coordinated byment of foreign currencies, (ii) strengthened the manage-

the ALM & market risk management committee, discussed

ment of maximum exposure limits for securitization andfurther by the executive management committee andother products, (iii) strengthened the monitoring of trad-

determined by the chief executive officer. We have estab-ing of securitization and other products and (iv) con-lished classifications for the cash flow conditions affecting

ducted measurement of the amount of risk capital of

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

securitization and other products based on stress testing.

and “critical,” and have established procedures for dealing
with cases which are deemed to fall into the “cause for

Status of MHFG's Market Risk

concern” or “critical” categories. In addition, we have con-

 Back Testing

structed a system under which we will be able to respond

In order to evaluate the effectiveness of market risk mea-smoothly in the event of emergency situations that affectsurements calculated using the value-at-risk method, we

our funding by establishing action plans.

carry out regular back tests to compare value-at-risk with

 Liquidity Risk Management at Our Principal

assumptive profits and losses. Assumptive profits andBanking Subsidiaries and Other Core Grouplosses accounts for general market risk. The graph below

Companies

shows daily value-at-risk of trading activities for the fiscal

The liquidity risk management structures of MHCB,

year ended March 31, 2009, and the corresponding

MHBK, MHTB and MHSC are generally the same as thepaired distribution of profits and losses:

aforementioned market risk management structures, but
the senior executives responsible for risk management
are responsible for matters pertaining to planning andconducting liquidity risk management, while the senior
executives of the asset and liability management andtrading units are responsible for matters pertaining toplanning and conducting cash flow management.
The methodologies used for ensuring precise control ofliquidity risk include the formulation of management
indices pertaining to cash flow, such as limits on funds

Fiscal 2008 Back Testing
Assumptive profit or loss (billions of yen)
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
(1.0)
(2.0)
(3.0)
(4.0)
(5.0)
(6.0)
(7.0)
(8.0)

0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

VaR (billions of yen)

63

Internal Control Systems

We had one case where profits/losses exceeded valueat-risk during the period.

reduction of interest rate risk related to the U.S. dollar for
the fiscal year ended March 31, 2009.

 Stress Testing
Because the value-at-risk method is based on statisticalassumptions, we conduct stress testing to simulate the

Fiscal 2008 Results of Calculations under the
Outlier Framework(billions of yen)levels of losses that could be incurred in cases where themarket moves suddenly to levels that exceed theseassumptions. The stress testing methods we use include
the calculation of losses on the basis of the largest fluctuations occurring over a period of more than five years
and the calculation of losses based on market fluctuations occurring during historical market events. In addition, we conduct stress testing based on a sharp drop in
the price of securitization and other products due todiminished market liquidity stemming from the U.S. sub-At March 31, 2007
At March 31, 2008
At March 31, 2009
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

Amountof loss

Broadlydefined Loss ratio
capital to capital

626.1
679.3
532.4
416.0
67.8
36.6

8,841.3
7,708.3
6,223.6

7.1%
8.8%
8.5%

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.

prime loan issues. The table below shows the assumed
maximum loss results of stress testing in trading activities

 Value-at Risk

using the methods described above:

We use the value-at-risk (VaR) method, supplemented
with stress testing, as our principal tool to measure mar-

Fiscal 2008 Stress Testing
At March 31, 2009 (billions of yen)ket risk. The value-at-risk method measures the maximum possible loss that could be incurred due to market

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

37.2

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

50.0

movements within a certain time period (or holding
period) and degree of probability (or confidence interval).

Trading Activities
VaR related to our trading activities is based on the following: Outlier Criteria• variance co-variance model for linear risk and monte-

As part of the new capital adequacy requirements undercarlo simulation for non-linear risk;

Basel II, the losses arising from a banking book in hypo-• confidence interval: one-tailed 99.0%;

thetical interest rate shock scenarios under certain stress• holding period of one day; andconditions are calculated and compared with the sum of• historical observation period of one year.

Tier 1 and Tier 2 capital. If the interest rate risk of thebanking book leads to an economic value decline of more

The following tables show the VaR related to our trad-

than 20% of the sum of Tier 1 and Tier 2 capital, we willing activities by risk category for the fiscal years ended

be deemed an “outlier” and may be required to reduce

March 31, 2007, 2008 and 2009 and as of March 31,

the banking book risk or adopt other responses. We mea-

2007, 2008 and 2009:

sure losses arising from our banking book each month asa part of our stress tests.
The table below shows the results of calculations oflosses in the banking book in cases where interest rate
fluctuations occur under stress conditions. The results ofcalculations of losses in the banking book show that they
are 8.5% of broadly-defined capital. Because the amountof risk on the banking book is therefore well under the
20% threshold and within controllable limits, we do not
fall under the “outlier” category. The loss ratio to capitaldecreased from the previous fiscal year due mainly to the64The graph below shows the VaR related to our bank-

VaR by Risk Category (Trading Activities)(billions of yen)
Fiscal 2006

the year ended March 31, 2009.

Daily average

Maximum

Minimum

At March 31

2.3
1.2
1.8
0.2
4.3

3.9
4.0
3.5
0.4
6.5

1.4
0.5
0.7
0.0
3.2

1.5
1.8
1.8
0.3
3.9

Interest rate
Foreign exchange
Equities
Commodities
Total

ing activities excluding our strategic equity portfolio for

Fiscal 2007

Fiscal 2008 VaR (Banking Activities)(VaR: billions of yen)

(%)

400

1.6

350

1.4

300

1.2

250

1.0

Daily average

Maximum

Minimum

At March 31

200

0.8

2.3
2.0
1.6
0.2
4.4

3.8
6.4
2.8
0.3
7.9

1.5
0.9
0.8
0.1
3.0

2.6
4.4
1.3
0.1
6.7

150

0.6

Daily average

Maximum

Minimum

At March 31

2.3
2.4
1.3
0.2
4.7

3.9
5.1
2.3
0.3
7.7

1.6
1.0
0.3
0.0
3.3

2.2
2.6
0.5
0.0
3.8

Foreign exchange
Equities
Commodities
Total

0.4

100

VaR

JGB Yield (5-Year)

50

0.2

0

0.0

08.04.01
08.04.15
08.04.29
08.05.13
08.05.27
08.06.10
08.06.24
08.07.08
08.07.22
08.08.05
08.08.19
08.09.02
08.09.16
08.09.30
08.10.14
08.10.28
08.11.11
08.11.25
08.12.09
08.12.23
09.01.06
09.01.20
09.02.03
09.02.17
09.03.03
09.03.17
09.03.31

Interest rate

Fiscal 2008
Interest rate
Foreign exchange
Equities
Commodities
Total

The following table shows the VaR figures relating toour banking activities for the fiscal years indicated:
VaR (Banking Activities)(billions of yen)

Fiscal 2006 Fiscal 2007 Fiscal 2008 Change
As of fiscal year end

The following graph shows VaR figures of our trading

Maximum
Minimum

activities for the fiscal year ended March 31, 2009:

Average

213.2
251.5
103.1
179.4

258.6
303.9
160.5
226.8

248.2 (10.4)
335.9 32.0
173.3 12.8
251.5 24.7

Fiscal 2008 VaR (Trading Activities)(VaR: billions of yen)

Characteristics of VaR Model

8.0
7.0

VaR is a commonly used market risk management

6.0
5.0

technique. However, VaR models have the following

4.0

shortcomings:

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

2.0

possible losses over a certain period at a particular0

confidence level using past market movement data.

08.04.01
08.04.15
08.04.29
08.05.13
08.05.27
08.06.10
08.06.24
08.07.08
08.07.22
08.08.05
08.08.19
08.09.02
08.09.16
08.09.30
08.10.14
08.10.28
08.11.11
08.11.25
08.12.09
08.12.23
09.01.06
09.01.20
09.02.03
09.02.17
09.03.03
09.03.17
09.03.31

1.0

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

The following table shows VaR figures of our trading

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

activities for the fiscal years indicated:market movements.
VaR (Trading Activities)(billions of yen)

• The use of a 99.0% confidence level does not take

Fiscal 2006 Fiscal 2007 Fiscal 2008 Change

account of, nor makes any statement about, any loss-

6.7
7.9
3.0
4.4

3.8
7.7
3.3
4.7

no cases no cases

1

3.9
6.5
3.2
4.3

As of fiscal year end
Maximum
Minimum
Average
The number of cases where
profits/losses exceeded VaR

(2.9)
(0.2)
0.3
0.3

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
Non-Trading Activities

We also conduct interest sensitivity analyses of interest

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

holding period is one month.

activities as of the dates indicated. As shown in the table,

65Internal Control Systems

we have reduced overall sensitivity to the risk of future

Operational Risk Management

increases in interest rates. Interest rate sensitivity (10 BPV)
shows how much net present value varies when interest

Basic Approach

rates rise by 10 basis (0.1%), and it explains the impact of

We define operational risk as the risk of loss that we mayinterest rate movements on net present value when short-incur resulting from inadequate or failed internaland long-term interest rates behave differently.

processes, people and systems or from external events.
We recognize that operational risk includes information

Interest Sensitivity by Maturity
At March 31, (billions of yen)
Up to one year
From one to five years
Over five years
Total

2007

2008

2009 Change

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

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

(9)
(25)
(18)
(53)

(2)
(11)
8
(5)

technology risk, operations risk, legal risk, humanresources risk, tangible asset risk, regulatory change risk
and reputational risk. We have determined risk management policies concerning risk management structures andmethods for each kind of risk. MHCB, MHBK, MHTB,MHSC, MHIS and TCSB each manage operational risk in Market Risk Equivalent

an appropriate manner pursuant to risk management

In order to calculate the amount of capital necessary topolicies determined by MHFG.

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

Operational Risk Management Structure

calculate general market risk (risks related to factors that

MHFG, MHCB, MHBK, MHTB, MHSC, MHIS and TCSB

apply generally to the market, e.g., interest rates, foreign

share common rules for data gathering, and we measureexchange rates) and the standardized measurement

operational risk on a regular basis, taking into accountmethod to calculate specific risks (risks other than general

possible future loss events and the changes in the businessmarket risk, e.g., credit quality and market liquidity of anenvironment and internal management.

individual security or instrument). In addition, our internal

We have established and are strengthening manage-

models are applied to trading transactions with market

ment methods and systems to appropriately identify,

liquidity based on the relevant holding period. Under theassess, measure, monitor and control the operational

internal models, the market risk equivalent is calculated
by taking the greater of (i) VaR on the calculation dateand (ii) the average VaR for the preceding 60 businessdays (including the calculation date) multiplied by a multiplication factor ranging from 3.00 to 4.00 that is determined based on the number of times VaR is exceeded
upon back testing.
The following table shows total market risk equivalent
as of the dates indicated calculated using the standardized measurement method and internal models:
Fiscal 2008 Market Risk Equivalent
At March 31, (billions of yen)
2008

2009

ChangeCalculated using standardized
measurement method

112.9

64.1

(48.8)

Calculated using internal models

51.2
164.2

43.2
107.3

(8.0)
(56.8)

Total market risk equivalent

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

66

Operational Risk Management Structure

MHFG

Board of Directors
Chief Executive Officer(CEO)

Executive Management
Committee

Senior executive officers
responsible for each typeof risk management
Operational risk management(Risk Management Division)

IT risk management
division
Operations risk
management division•Set risk management policies•Give instructions concerning
risk management

Divisions
responsible foreach type of risk
management•Report the risk
management situation

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

risks which arise from the growing sophistication anddiversification of financial operations and developments

Definition of Risks and Risk Management
Methods

relating to information technology by utilizing control

As shown in the table below, we have defined each com-self-assessments and improving measurement methods.

ponent of operational risk and we apply appropriate risk

Operational risk was introduced under Basel II withrespect to regulatory capital requirements from March

management methods in accordance with the scale andnature of each risk.

31, 2007 and MHFG selected the standardized approachfor the calculation of operational risk capital charge,
which calculates operational risk by dividing its activities
into eight business lines and multiplying gross income ofeach of those business lines by the applicable factor
assigned to each of the business lines.
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.

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 orappropriate to its scale and nature.
others learn about, or the media reports on, vari• Swiftly identify rumors and devise appropriate responses depending on the urgency andous adverse events, including actual materializapossible impact of the situation to minimize possible losses.
tion of risks or false rumors.

We also recognize and manage “Information Security Risk” and “Compliance Risk”, which constitute a combination of more than one of theabove components of operational risk, as operational risk.
(As of June 25, 2009)67

Internal Control Systems

Internal Audit Structure

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

Basic Approachat their respective domestic and overseas business offices,

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

independent from other business operations, for evaluat-

the internal audit divisions assess the suitability and effec-

ing the extent to which internal control achieves its objec-

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

and risk management. The credit review divisions audit

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

internal rules. We conduct internal audits from an objec-

the accuracy and suitability of matters deemed necessary

tive and comprehensive standpoint, independent of oper-

to assure the soundness of assets.

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

recommendations in connection with any problems that

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

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

panies to fulfill their managerial duties efficiently andbusinesses.

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

Internal Audit Management Structure

lished by MHFG, our principal banking subsidiaries and

MHFG

other core group companies conduct internal audits,

Board of Directors

which include the auditing of their respective subsidiaries.

Chief Executive Officer (CEO)Chairman of Internal
Audit Committee

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

Internal Audit Committee

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

Everyorganizational
unit

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

Management
by MHFG

Audit

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

Advice, guidance
and remedialrecommendations

Report theresults of internal
audit, etc.

MHCB, MHBK, and othercore group companies

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

other core group companies through internal audit
reports submitted by such subsidiaries. Our internal audit
committee discusses and makes decisions regarding internal audits at our principal banking subsidiaries and othercore group companies and submits the results, together
with the results of their examination of the internal audit
reports, to our board of directors.

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

68(As of June 25, 2009)

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

70

Financial and Economic Environment

72

Results for the Fiscal Year ended March 31, 2009

74

Status of Asset Quality

96

69

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

Total Income
Net Income (Loss)
Net Assets (Note 1)
Total Assets (Note 1)
Deposits
Debentures
Loans and Bills Discounted
Securities

2009

¥

3,536.5(588.8)4,186.6
152,723.0
86,539.0
2,300.4
70,520.2
30,173.6

2008¥

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

2007¥

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

2006¥

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

2005¥

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

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)

104.38(54.14)—

254,722.01
25,370.25
24,640.00

336,937.64
51,474.49
48,803.07

274,906.95
55,157.14
46,234.51

131,016.15
54,625.61
37,719.13

Capital Adequacy Ratio (BIS Standard) (Note 4)

10.53%

11.70%

12.48%

11.59%

11.91%Net Return on Equity
PER (Times) (Note 3)(29.6)%—x8.5%
14.38x16.7%
14.74x26.3%
17.45x

54.3%
9.28x

Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities

573.7
2,408.2
32.9

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

4,418.0(3,788.1)(557.7)

Cash and Cash Equivalents at the end of the fiscal year

5,048.6

2,055.7

3,089.0

3,387.9

5,602.0

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” is included for calculation of
net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Diluted Net Income per Share and PER are not required to be disclosed due to Net Loss per Share of Common Stock for the fiscal year ended March 31, 2009.
4. Capital Adequacy Ratio (BIS Standard) is based on the “Standards for Bank Holding Company to Consider the Adequacy of Its Capital Based on Assets and Others Held by It and Its Subsidiaries
Pursuant to Article 52-25 of the Banking Law” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006), commencing with the fiscal year ended March 31, 2007.
5. The ordinary general meeting of shareholders resolved on June 26, 2008 to allot shares or fractions of a share without consideration to all the shareholders or the holders of fractional shares, andwe accordingly conducted it on January 4, 2009.
The following are per share indicators after retroactive adjustments according to the allotment of shares or fractions of a share without consideration for reference.

(Reference)yen

As of or for the Fiscal Years ended March 31,

Net Assets per ShareNet Income per Share
Diluted Net Income per Share

70

2008

2007

2006

2005

254.7225.37
24.64

336.9351.47
48.80

274.9055.15
46.23

131.01
54.62
37.71

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

As of or for the Fiscal Years ended March 31,

2009

Operating Income¥
442.7
Net Income
378.8
Common Stock and Preferred Stock
1,540.9
Number of Shares Issued and Outstanding
Common Stock
11,178,940,660 shares
Second Series Class II Preferred Stock/
Third Series Class III Preferred Stock/
Fourth Series Class IV Preferred Stock/
Sixth Series Class VI Preferred Stock/
Seventh Series Class VII Preferred Stock/
Eighth Series Class VIII Preferred Stock/
Ninth Series Class IX Preferred Stock/
Tenth Series Class X Preferred Stock/
Eleventh Series Class XI Preferred Stock914,752,000 shares
Twelfth Series Class XI Preferred Stock/Thirteenth Series Class XIII Preferred Stock
36,690,000 shares
Net Assets (Note 1)
3,608.6
Total Assets (Note 1)
4,552.7
Net Assets per Share (Yen) (Note 2)
236.36
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
10
Second Series Class II Preferred Stock/
Third Series Class III Preferred Stock/
Fourth Series Class IV Preferred Stock/
Sixth Series Class VI Preferred Stock/
Seventh Series Class VII Preferred Stock/
Eighth Series Class VIII Preferred Stock/
Ninth Series Class IX Preferred Stock/
Tenth Series Class X Preferred Stock/
Eleventh Series Class XI Preferred Stock
20
Twelfth Series Class XI Preferred Stock/Thirteenth Series Class XIII Preferred Stock30
Common Stock—
Second Series Class II Preferred Stock/
Third Series Class III Preferred Stock/
Fourth Series Class IV Preferred Stock/
Sixth Series Class VI Preferred Stock/
Seventh Series Class VII Preferred Stock/
Eighth Series Class VIII Preferred Stock/
Ninth Series Class IX Preferred Stock/
Tenth Series Class X Preferred Stock/
Eleventh Series Class XI Preferred Stock—
Twelfth Series Class XI Preferred Stock/Thirteenth Series Class XIII Preferred Stock—Net Income (Loss) per Share (Yen) (Note 2)
32.00
Diluted Net Income per Share (Yen) (Note 2) (Note 4)
28.45
PER (Times) (Note 4)
5.87x
Dividend Propensity (Note 3)
31.24%

2008

¥

806.5
811.0
1,540.9

2007¥

1,250.0
1,239.7
1,540.9

2006

¥

128.9
790.2
1,540.9

2005

¥

26.4
30.8
1,540.9

11,396,254.66 shares
/
/
/
/
/
/
/
/
943,740 shares/
36,690 shares
3,512.8
4,658.9
220,538.65

11,872,195.49 shares
/
/
/
/
/
/
/
/
943,740 shares/
36,690 shares
3,176.4
4,764.0
183,338.04

12,003,995.49 shares//
150,000 shares
150,000 shares////
943,740 shares/
36,690 shares
2,752.3
4,793.0
94,861.81

12,003,995.49 shares
100,000 shares
100,000 shares
150,000 shares
150,000 shares
125,000 shares
125,000 shares
33,000 shares
140,000 shares
943,740 shares/
36,690 shares
2,986.2
3,178.6
41,782.20

10,000
/
/
/
/
/
/
/
/
20,000/30,000
—
/
/
/
/
/
/
/
/
—
/
—
68,658.41
64,138.22
5.31x
14.56%

7,000
/
/
/
/
/
/
/
/
20,000/30,000
—
/
/
/
/
/
/
/
/
—
/
—
102,168.76
95,550.05
7.42x
6.85%

4,000
/
/
47,60042,000—///20,000/30,000
—
/
/
—
—
—
/
/
/
—
/
—
63,040.65
53,235.99
15.27x
6.34%

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

Notes: 1. “Net Assets” and “Total Assets” are calculated in accordance with “Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Statement No.5, December 9, 2005) and“Guidance on Accounting Standards for Presentation of Net Assets in the Balance Sheet” (ASBJ Guidance No.8, December 9, 2005), commencing with the fiscal year ended March 31, 2007.
2. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002). “Net Deferred Hedge Losses, net of Taxes” is included for calculation of
net assets per share commencing with the fiscal year ended March 31, 2007 in accordance with the revision of the ASBJ Guidance No.4.
3. Dividend Propensity: Cash Dividends Declared per Share (Common Stock) / Net Income per Share (Common Stock). Dividend Propensity is not required to be disclosed due to loss position of
earnings per share for the fiscal year ended March 31, 2005.
4. “Diluted Net Income per Share” and “PER” are not required to be disclosed due to loss position of earnings per share for the fiscal year ended March 31, 2005.
5. The ordinary general meeting of shareholders resolved on June 26, 2008 to allot shares or fractions of a share without consideration to all the shareholders or the holders of fractional shares, andwe accordingly conducted it on January 4, 2009.
The following are per share indicators after retroactive adjustments according to the allotment of shares or fractions of a share without consideration for reference.

(Reference)
As of or for the Fiscal Years ended March 31,

Net Assets per ShareNet Income (Loss) per Share
Diluted Net Income per Share

yen

2008

2007

2006

2005

220.5368.65
64.13

183.33102.16
95.55

94.86
63.04
53.23

41.78
(0.58)—

71

Financial Analysis

Financial and Economic Environment

Economic Conditions in Japan and Overseas
Looking back over the economic climate during the fiscal year ended March 31, 2009, many financial institutions, mainly inEurope and the U.S., experienced shortages of capital and management difficulties in the wake of the turmoil of the securitization
market triggered by the subprime loan problem. As a result, uncertainties in financial markets increased significantly in the formof, for example, the tightening of credit on a global scale due to the deterioration of intermediary function of financial institutions.
These financial uncertainties had significant impacts on the actual economy. The serious economic downturn is continuing in
the U.S. and Europe, as personal consumption, housing investments and capital investments are further worsening. Emerging
countries and countries dependent on natural resources are also suffering from worsening economies.
As for the Japanese economy, corporate earnings were significantly aggravated, affected by drastic declines in exports due tothe deteriorating world economy and appreciation of the yen. As a result, the number of bankruptcies increased regardless ofindustry type and company size, and stock prices fell sharply. In addition, personal consumption decreased in the worsening environment of employment and income due to the rapid production adjustments. The serious downturn in the economy is continuing against the background of decreased domestic and foreign demand.

Financial Sector
Under these circumstances, leading countries are promoting coordination of global policies to stabilize the financial markets andachieve economic recovery through summit conferences and other means, and the effects are gradually being materialized.
However, there is a possibility that the actual economy deteriorates further due to protracted or worsening financial uncertainty.
Given the above business environment, it is important for us to further strengthen our profitability by allocating management
resources flexibly and providing superior financial services to meet customers' needs, while maintaining financial soundness andenhancing corporate governance such as risk management.

72

Trends in Interest Rates in Japan
(%)

(%)

3.0

1.00
0.90

Euroyen TIBOR (3-month) (right scale)
0.80

2.5

Long-Term Prime Rate
(left scale)

0.70

2.0

0.60

Short-Term Prime Rate (left scale)

0.50
0.40

1.5

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

0.30

Call Rate (Uncollateralized overnight)(right scale)

1.0

0.20
0.10

0.5

Apr. 2008

July 2008

Oct. 2008

Jan. 2009

Apr. 2009

0.00

Trends in TOPIX and Yen / Dollar Exchange Rate
(Point)(Yen / Dollar)
115

1,500

TOPIX (left scale)
1,400
110
1,300
1,200

105

Yen / Dollar Exchange Rate (right scale)

1,100

100
1,000
95

900
800

90
700
600

Apr. 2008

July 2008

Oct. 2008

Jan. 2009

Apr. 20098573

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

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

As of March 31,

2009

2008

ChangeNumber of consolidated subsidiaries
Number of affiliates under the equity method

145
22

146
21

(1)
1

2009

2008

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¥

1,806.9
1,068.8
55.8
416.6
301.5
(35.9)¥

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

Change¥146.0)
5.2(8.4)(77.8)
245.3(18.2)

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

1,192.7

1,124.5

68.1

554.3

201.7

352.6

Net Gains (Losses) related to Stocks(400.2)253.3(653.5)Equity in Income from Investments in Affiliates

(3.5)

9.0

(12.6)

Other(61.9)(111.0)49.0

Income (Loss) before Income Taxes and Minority Interests(405.8)486.0(891.9)

Income Taxes–Current

48.2

32.2

16.0

Income Taxes–Deferred

109.1

118.5

(9.4)

Minority Interests in Net Income

25.5

24.0

1.5

Net Income (Loss)¥(588.8)¥311.2

Net Income (Loss) per Share of Common Stock (Yen)¥(54.14)¥25,370.25¥(900.0))Credit-related Costs

¥

536.7

¥

83.0

¥

(453.6)(Reference) Consolidated Net Business Profits

¥

622.6

¥

511.1

¥

111.4

¥ (25,424.39)

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

74

Use and Source of Funds (Consolidated)
Billions of yen

Average balance
2009
2008

Change2009

Interest
2008(780.0)(201.7)(75.5)(1,244.0)¥ 2,144.4
36.3
8.2
149.0

¥ 2,864.7
73.7
12.8
460.3

(227.4)(2,361.7)
2,133.937.8
466.7
1,367.3

46.4
671.7
1,507.4(2,806.6)(3,490.0)(1,212.3)
882.2(1,383.1)¥ 1,075.5
477.1
17.5
46.3
196.5

¥ 1,801.1
709.5
23.7
58.0
606.8

(510.4)(10.0)
2,150.6

41.4
0.0
74.0

70.5
0.0
70.2

For the Fiscal Years ended March 31,

2009

Yield
2008

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

1.73%
1.82
3.21
1.97

2.30%
3.35
3.86
5.23

(0.56)%(1.53)(0.65)(3.26)

0.50
1.39
2.01

0.60
1.88
2.29

(0.09)(0.48)(0.27)

0.88%
0.59
0.63
0.63
1.67

1.44%
0.84
0.59
0.91
4.62

(0.56)%(0.25)
0.04(0.27)(2.95)

0.66
0.21
1.04

1.03
0.39
1.41

(0.37)(0.18)(0.37)For the Fiscal Years ended March 31,

Use of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted¥ 123,392.6
1,996.4
257.1
7,552.9¥ 124,172.7
2,198.2
332.6
8,796.9

7,512.9
33,343.0
67,711.7

7,740.4
35,704.8
65,577.8

Source of Funds¥ 121,684.0
Deposits
80,009.9
Debentures
2,754.6
Call Money and Bills Sold
7,256.0
Payables under Repurchase Agreements
11,732.3
Guarantee Deposits Received under Securities
Lending Transactions
6,284.6
Commercial Paper
10.0
Borrowed Money
7,121.2¥ 124,490.6
83,500.0
3,966.9
6,373.8
13,115.4
6,795.1
20.0
4,970.5¥¥

Change¥(720.3)(37.3)(4.5)(311.3)(8.6)(204.9)(140.0)¥(725.5)(232.3)(6.1)(11.6)(410.2)(29.1)(0.0)
3.8%

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

Net Fee and Commission Income (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2009

2008

¥ 416.6¥ 494.5¥ (77.8))

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¥ 514.9
121.1
56.7
110.8
39.1
32.2
32.4
5.9

¥ 596.7
121.7
90.3
117.0
58.6
34.1
32.6
5.9

¥ (81.7)(0.5)(33.6)(6.2)(19.5)
(1.9)
(0.1)
(0.0)

Fee and Commission Expenses
Remittance Business¥¥ 102.2
36.3¥

Net Fee and Commission Income

98.3
36.9

Change

(3.8)
0.5

75

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

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

As of March 31,

2009

2008

ChangeTotal Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted¥ 152,723.0
5,720.2
13,514.5
30,173.6
70,520.2¥ 154,412.1
3,483.8
13,856.2
33,958.5
65,608.7¥ (1,689.0)
2,236.4(341.7)(3,784.9)
4,911.5

Total Liabilities
Deposits
Debentures
Call Money and Bills Sold

148,536.4
86,539.0
2,300.4
6,449.8

148,717.9
86,264.0
3,159.4
6,693.7(181.4)274.9(858.9)(243.8)5,694.1
3,425.6
476.4—
1,792.0¥ (1,507.5))(871.5)(896.8)1.1
259.6

Net Assets
Shareholders' Equity
Valuation and Translation Adjustments
Stock Acquisition Rights
Minority Interests¥

4,186.6
2,554.1(420.3)1.1
2,051.6¥

Fair Value of Other Securities (Consolidated)
Billions of yen

As of March 31, 2009

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 29,713.7
2,788.9
19,496.0
7,428.7¥ 29,204.1
2,605.2
19,507.6
7,091.2¥

Gross unrealized
Gains

Losses

393.2
284.9
43.6
64.5

902.8
468.6
32.1
401.9

¥

Net unrealized*2
gains (losses)¥(509.6)(183.7)11.5(337.4)
Billions of yen

As of March 31, 2008

Acquisition cost

Fair value

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

Gross unrealized
Gains

¥

1,286.5
1,188.0
21.6
76.9

¥

Losses

608.7
211.3
119.7
277.6

Net unrealized*2
gains (losses)

¥

677.8
976.7
(98.1)(200.7)
Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost

Fair value¥ (2,185.2)(360.9)1,939.0(3,763.3)¥ (3,372.7)(1,521.4)
2,048.7(3,900.0)¥

Gross unrealized
Gains

LossesNet unrealized
gains (losses)(893.3)(903.0)22.0(12.4)

294.12)257.3(87.5)
124.3¥ (1,187.5)(1,160.4)
109.6(136.7)¥

Notes: 1. In addition to the balances shown in the above table, Other Securities include securities which do not have readily determinable fair values such as follows:
As of March 31, 2009
Non-publicly offered bonds¥1,820.9 billion
Unlisted stock¥ 416.2 billion
Unlisted foreign securities¥ 345.0 billion
Other¥ 249.3 billion
As of March 31, 2008
Non-publicly offered bonds¥1,912.5 billion
Unlisted stock¥ 427.8 billion
Unlisted foreign securities¥ 554.5 billion
Other¥ 262.7 billion
2. Net unrealized gains (losses) include ¥62.7 billion and ¥37.2 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2009 and 2008, 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, 2009 and 2008 were ¥(572.3)
billion and ¥640.6 billion, respectively.

76

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

As of March 31,

Other Securities
Japanese Stocks
Japanese Bonds
Other

2009

¥

(572.3)(183.7)(54.7)(333.8)¥2008

Change640.6
976.7(124.7)(211.3)¥ (1,213.0))(1,160.4)
69.9(122.5)

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

As of March 31,

2009

2008

Consolidated Capital Adequacy Ratio
Tier 1 Capital Ratio

10.53%
6.37%

11.70%
7.40%

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

3,765.0
2,793.1
334.5¥

4,880.1
3,221.8
393.6

Total Risk-based Capital¥

6,223.6¥

7,708.3

Risk-weighted Assets¥ 59,056.2¥ 65,872.8

77Financial Analysis

Results for the Fiscal Year ended March 31, 2009

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

2009
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)1,806.9 ¥1,068.8
55.8
416.6
301.5
(35.9)

1,485.9 ¥
968.8
54.5
299.2
192.8
(29.4)

320.9
100.0
1.3
117.4
108.6
(6.5)

82.2%
90.6
97.6
71.8
63.9
81.8

536.7

539.3

(2.5) 100.4

MHFG(Consolidated)
(a)

¥

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

83.0

92.5

(9.5) 111.5

Net Income (Loss)¥(588.8) ¥(576.9) ¥(11.8)

97.9%¥

311.2 ¥

193.5 ¥Net Business Profits¥

622.6 ¥

576.6 ¥

45.9

92.6%

¥

511.1 ¥

861.7 ¥ (350.5) 168.5%

117.6

62.1%

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

Billions of yen, %

78

2009
AggregatedFigures of theThree Banks (b)As of March 31,

MHFG(Consolidated)(a)Total Assets
Securities
Loans and Bills Discounted¥ 152,723.0 ¥ 150,731.1 ¥ 1,991.9
98.6%
30,173.6
30,728.8(555.2) 101.8
70,520.2
70,477.5
42.6
99.9(a) – (b) (b) / (a)MHFG(Consolidated)
(a)

2008
AggregatedFigures of theThree Banks (b)(a) – (b) (b) / (a)¥ 154,412.1 ¥ 145,912.9 ¥ 8,499.1 94.4%
33,958.5
34,320.9(362.4) 101.0
65,608.7
65,666.7(58.0) 100.0

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

For the Fiscal Years ended March 31,

Domestic Gross Profits
International Gross Profits

2009

¥

1,119.4
366.5

2008

¥

1,213.9
507.9

Change¥(94.4))(141.4)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

1,485.9
968.8
54.5
299.2
192.8
(29.4)(46.5)

1,721.8
954.0
63.0
351.7
368.9
(15.8)
84.7(235.8)14.8(8.4)(52.5)(176.0)(13.6)(131.2)

General and Administrative Expenses (excluding Non-Recurring Losses)
Expense Ratio

909.3
61.1%

860.1
49.9%

49.1
11.2%

Net Business Profits (before Provision for (Reversal of) General Reserve
for Possible Losses on Loans)Excluding Net Gains (Losses) related to Bonds

576.6
623.2

861.7
776.9

(285.0)(153.7)

Provision for (Reversal of) General Reserve for Possible Losses on Loans

107.0

12.0

94.9

Net Business Profits

469.6

849.6

(379.9)Net Non-Recurring Gains (Losses)
Net Gains (Losses) related to Stocks
Expenses related to Portfolio Problems
Other(907.1)(444.2)(448.2)(14.6)(519.9)240.1(214.8)(545.2)(387.1)(684.4)(233.3)
530.6

Income (Loss) before Income Taxes(767.1)(437.4)

329.6

Income Taxes–Current

21.3

0.5

20.7

Income Taxes–Deferred

118.1

135.5

(17.3)Net Income (Loss)¥(576.9)

¥

193.5

¥

(770.5)Credit-related Costs

¥

539.3

¥

92.5

¥

446.7

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. Credit-related Costs = Expenses related to Portfolio Problems + Provision for (Reversal of) General Reserve for Possible Losses on Loans + Reversal of Reserves for Possible Losses on Loans, etc. +Credit Costs for Trust Accounts.

Breakdown of Gross Profits (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Interest Income
Domestic Operations
International Operations

2009

¥

968.8
848.6
120.1

2008

¥

954.0
852.4
101.5

Change

¥

14.8
(3.7)
18.5

Fiduciary Income
Domestic Operations
International Operations

54.5
54.5
/

63.0
63.0
/

(8.4)
(8.4)
/

Net Fee and Commission Income
Domestic Operations
International Operations

299.2
233.8
65.3

351.7
276.7
75.0

(52.5)(42.8)(9.6)

Net Trading Income
Domestic Operations
International Operations

192.8
35.8
156.9

368.9
(11.7)
380.7(176.0)47.6(223.7)

Net Other Operating Income
Domestic Operations
International Operations(29.4)(53.5)
24.0(15.8)
33.5(49.3)(13.6)(87.0)
73.4

Gross Profits¥

1,485.9¥

1,721.8¥(235.8)79

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

Breakdown of Net Interest Income (MHCB and MHBK)
Billions of yen, %

2009

Yield
2008

¥ 2,108.5
2,165.1(2,833.8)

1.67%
1.92
1.42

2.04%
2.19
1.83

(0.36)%(0.26)(0.41)

113,057.8
84,677.7

4,268.4(387.8)

0.86
0.55

1.25
0.83

(0.38)(0.28)

/

/

/

0.81

0.79

0.01

/

/

/

1.37

1.35

0.01

Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities

94,444.9
54,358.1
24,506.8

88,568.1
52,350.1
24,496.2

5,876.7
2,008.0
10.6

1.29
1.61
0.87

1.35
1.65
0.95

(0.06)(0.04)(0.08)

Source of Funds
Deposits and Debentures

95,722.0
72,862.5

88,840.4
71,386.6

6,881.5
1,475.9

0.43
0.31

0.44
0.31

(0.00)
0.00

Interest Margins

/

/

/

0.85

0.90

(0.05)

Loan and Deposit Margin

/

/

/

1.29

1.34

(0.04)

International Operations
Use of Funds
Loans and Bills Discounted
Securities

24,022.0
10,006.4
7,100.6

26,168.3
9,849.3
9,945.1(2,146.3)
157.0(2,844.4)

3.08
3.61
3.30

4.31
5.02
4.00

(1.23)(1.41)(0.70)

Source of Funds
Deposits and Debentures

24,556.7
11,427.3

25,548.1
13,291.0(991.4)(1,863.7)

2.53
2.07

4.03
3.62

(1.50)(1.54)

Interest Margins

/

/

/

0.54

0.27

0.27

Loan and Deposit Margin

/

/

/

1.53

1.40

0.13

For the Fiscal Years ended March 31,

2009

Average balance
2008

Total
Use of Funds
Loans and Bills Discounted
Securities¥ 115,514.4
64,364.5
31,607.5¥ 113,405.8
62,199.4
34,441.4

Source of Funds
Deposits and Debentures

117,326.2
84,289.8

Interest Margins
Loan and Deposit Margin

ChangeChange(Reference) Interest Margins (Domestic Operations) (MHCB and MHBK)%For the Fiscal Years ended March 31,

2009

2008

ChangeReturn on Interest-Earning Assets
Return on Loans and Bills Discounted
Return on Securities

1.29%
1.62
0.87

1.35%
1.67
0.95

(0.06)%(0.04)(0.08)

Cost of Funding (including Expenses)
Cost of Deposits and Debentures (including Expenses)
Cost of Deposits and Debentures
Cost of Other External Liabilities

1.15
1.25
0.31
0.64

1.16
1.21
0.31
0.70

(0.01)
0.04
0.00(0.06)Net Interest Margin

0.13

0.19

(0.05)

Loan and Deposit Rate Margin (including Expenses)

0.36

0.45

(0.09)

Loan and Deposit Rate Margin

1.30

1.35

(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)%80

For the Fiscal Years ended March 31,

2009

2008

Return on Loans and Bills Discounted
Loan and Deposit Rate Margin (including Expenses)
Loan and Deposit Rate Margin

1.77%
0.51
1.45

1.78%
0.57
1.46

Change(0.01)%(0.06)(0.01)

Breakdown of Net Fee and Commission Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2009

2008

Change¥ 299.2¥ 351.7¥ (52.5)

Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 398.7
122.9
110.1
25.6
23.9
33.9
5.9

¥ 453.5
124.0
116.6
42.1
26.5
33.8
5.9

¥ (54.8)
(1.1)
(6.4)
(16.4)
(2.6)
1.0
0.0

Fee and Commission Expenses
Remittance Business

¥

99.5
36.7

¥ 101.8
36.2¥ (2.2)
0.5

2009

2008

Net Fee and Commission Income

Breakdown of Net Other Operating Income (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Other Operating Income
Total
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

Change¥(29.4)¥(15.8)¥(13.6)¥(29.4)
10.9(46.5)¥(15.8)(112.8)84.7¥(13.6)
123.7(131.2)

Domestic Operations
Net Losses related to Bonds(53.5)(50.6)

33.5
31.1(87.0)(81.8)

International Operations
Profits on Foreign Exchange Transactions
Net Gains (Losses) related to Bonds

24.0
10.9
4.1

(49.3)(112.8)
53.5

73.4
123.7
(49.4)Breakdown of General and Administrative Expenses (excluding Non-Recurring Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

2009

2008

¥ 281.9¥ 229.2

Non-personnel Expenses

580.3

581.6

(1.2)

Miscellaneous Taxes

47.0

49.2

(2.2)

¥ 909.3¥ 860.1

2009

2008

Change¥ (444.2)
83.9(42.1)(514.1)(4.1)
32.1¥ 240.1
319.7(6.5)(92.6)(2.0)
21.6¥ (684.4)(235.7)(35.6)(421.5)(2.0)
10.5

Expenses related to Portfolio Problems(448.2)(214.8)(233.3)Other(14.6)(545.2)(530.6)¥ (907.1)¥ (519.9)¥ (387.1)

Personnel Expenses

Total

Change

¥

¥

52.6

49.1

Breakdown of Net Non-Recurring Gains (Losses) (the Three Banks)
Billions of yen

For the Fiscal Years ended March 31,

Net Gains (Losses) related to Stocks
Gains on Sales
Losses on Sales
Losses on Devaluation
Provision for Reserve for Possible Losses on Investments
Gains (Losses) on Derivatives other than for Trading

Net Non-Recurring Gains (Losses)

81

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

(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)2009¥ 539.3
—
107.0
255.0
158.8
0.5
2.8
14.9

¥

2008

Change

92.5
—
30.7
91.3
(100.5)
(2.6)
1.0
72.5

¥ 446.7
—
76.2
163.6
259.3
3.1
1.8
(57.6)

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

2009

2008

Change¥ 150,731.1
6,892.7
8,902.030,728.8
70,477.5¥ 145,912.9
4,973.1
4,950.6
34,320.9
65,666.7¥ 4,818.1
1,919.5
3,951.4(3,592.1)
4,810.8

147,819.2
87,539.8
2,306.6
14,639.6—

141,103.9
87,159.8
3,171.0
10,982.3—

6,715.2
379.9(864.3)3,657.2—

2,911.8
3,199.3(287.6)0.1

4,809.0
4,262.0
546.9—(1,897.1)(1,062.6)(834.6)0.1

Note: Loans to MHFG are included as follows:
As of March 31, 2009: ¥700.0 billion (from MHBK)As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 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

82

2009

2008

¥ 12,307.7
10,076.8¥ 12,121.7
9,778.7

Change

¥

185.9
298.1

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

2009

2008

Change¥ 34,314.8¥ 35,560.7¥ (1,245.9))

53.4%

60.1%

(6.7)%

Percentage of Loans to SMEs
and Individual Customers, of Total Domestic Loans

Notes: 1. Loans to MHFG are included as follows:
As of March 31, 2009: ¥700.0 billion (from MHBK)As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 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).

Fair Value of Other Securities (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31, 2009

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 29,274.3
2,791.3
19,223.3
7,259.6¥ 28,767.8
2,577.9
19,234.3
6,955.5¥

Gross unrealized
Gains

Losses

373.0
262.9
43.1
66.8

879.5
476.3
32.1
371.0

¥

Net unrealized*2
gains (losses)¥(506.5)(213.3)11.0(304.1)
Billions of yen

As of March 31, 2008

Acquisition cost

Fair value

Other Securities*1
Japanese Stocks
Japanese Bonds
Other¥ 31,393.3
3,190.3
17,266.5
10,936.3¥ 31,995.2
4,085.9
17,167.8
10,741.3

Gross unrealized
Gains

¥

1,226.3
1,126.3
21.0
78.9

¥

Losses

624.4
230.7
119.7
274.0

Net unrealized*2
gains (losses)

¥

601.9
895.6
(98.6)(195.0)Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost

Fair value¥ (2,118.9)(399.0)1,956.7(3,676.7)¥ (3,227.4)(1,508.0)
2,066.4(3,785.8)¥

Gross unrealized
Gains

LossesNet unrealized
gains (losses)(853.3)(863.3)22.0(12.0)

255.0
245.6(87.5)
97.0¥ (1,108.4)(1,108.9)
109.6(109.1)¥

Notes: 1. In addition to the balances shown in the above table, Other Securities includes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥91.4 billion and ¥37.2 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2009 and 2008, 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, 2009 and 2008 were ¥(597.9) billion and¥564.7 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

2009

¥

(597.9)(213.3)(55.3)(329.2)

2008

¥

564.7
895.6
(125.2)(205.6)

Change¥(1,162.6))(1,108.9)
69.9(123.6)83

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

Segment Information by Global Group
Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2009

Gross Profits
Net Interest Income
Net Non-interest Income

¥

724.5
381.3
343.2

¥

528.2
316.5
211.7

¥

275.2
172.7
102.5

¥

130.5
90.1
40.4

MHSC

Others68.3 ¥
(9.7)
78.0

128.0
74.5
53.5

Tradingand others

¥

122.5
53.7
68.8

¥

General and Administrative Expenses

381.4

246.9

92.0

66.0

88.9

59.5

75.0

Others(35.4)

0.0

0.0

0.0

0.0

0.0

(35.4)Net Business Profits

¥

307.7

¥

281.3

¥

183.2

¥

64.5

¥

33.6

¥

8.8

¥

17.6

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Total of the Global Corporate Group
MHCB
Domestic International
For the Fiscal Year ended March 31, 2008

Gross Profits
Net Interest Income
Net Non-interest Income

¥

384.2
368.8
15.4

¥

606.4
293.6
312.8

¥

286.5
180.5
106.0

¥

141.4
73.4
68.0

MHSC

OthersTradingand others

¥

178.5
39.7
138.8

¥

36.1 ¥ (258.3)
(5.6)
80.8
41.7
(339.1)

General and Administrative Expenses

394.0

236.2

85.5

67.1

83.6

66.4

91.4

Others(48.3)

0.0

0.0

0.0

0.0

0.0

(48.3)(58.1) ¥370.2

Net Business Profits

¥

¥

201.0

¥

74.3

¥

94.9 ¥(30.3) ¥ (398.0)

Note: Credit-related costs for Trust Accounts are excluded from Gross Profits.

Notes: 1. Data on this page are calculated in accordance with the standards for disclosures described in FAS131 (Disclosuresabout Segments of an Enterprise and Related Information), same as the business segment information contained in
the registration statement on Form 20-F, which was filed with the U.S. Securities and Exchange Commission.
2. “Others” in each of the Global Groups includes elimination of transactions between companies within the respective
Global Groups. “Others” in MHFG includes elimination of transactions between the Global Groups.
3. Data on this page are based on the internal management figures and are the aggregates of the described segments inaccordance with the fiscal 2006 management accounting rules. As fractions on this page have been rounded to thenearest whole, some of the figures on this page are different from those on the other charts and so on.

84Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking

¥

¥

900.3
648.1
252.2

¥

827.7
603.7
224.0

¥

352.5
327.3
25.2

Corporatebanking

Tradingand others

¥

¥

442.3
297.9
144.4

32.9 ¥(21.5)
54.4

31.3
0.4
30.9

Others¥Total of the Global Asset & Wealth Management GroupMHTB
Others41.3 ¥
44.0
(2.7)

176.9
49.8
127.1

¥

130.1
48.6
81.5

¥

OthersConsolidated
Figures of
MHFG

46.8 ¥
1.2
45.6

5.3 ¥ 1,807.0(10.3)
1,068.9
15.6
738.1

615.9

571.1

235.7

234.2

101.2

44.0

0.8

132.0

91.3

40.7

(5.7)

1,123.6(13.8)

0.0

0.0

0.0

0.0

0.0

(13.8)

(3.2)

0.0

(3.2)

(8.4)

(60.8)

208.1 ¥

(68.3) ¥(12.7) ¥

26.7

2.9 ¥

2.6 ¥

622.62

270.6

¥

256.6

¥

116.8

¥

¥

41.7

¥

38.8

¥

Billions of yen

Total of the Global Retail Group
MHBK

MHIS
Retailbanking¥ 1,039.8
654.4
385.4

¥

¥

942.8
606.9
335.9

¥

353.7
311.0
42.7

Corporatebanking

Tradingand others

¥

¥

503.4
328.9
174.5

85.7 ¥(33.0)
118.7

53.0
0.7
52.3

Others¥Total of the Global Asset & Wealth Management GroupMHTB
Others44.0 ¥
46.8
(2.8)

231.1
55.4
175.7

¥

172.7
53.5
119.2

¥

OthersConsolidated
Figures of
MHFG

58.4 ¥
1.9
56.5

5.8 ¥ 1,660.9(15.0)
1,063.6
20.8
597.3

580.8

537.2

214.8

229.3

93.1

45.2

(1.6)

127.6

86.8

40.8

(9.1)

(14.7)

0.0

0.0

0.0

0.0

0.0

(14.7)

(1.5)

0.0

(1.5)

8.1

(56.4)

274.1 ¥

(7.4) ¥

7.8

16.1 ¥

23.0 ¥

511.2

444.3

¥

405.6

¥

138.9

¥

¥

30.9

¥

102.0

¥

85.9

¥

1,093.3

85

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

The Impact of the Dislocation in Global Financial Markets Stemming from US Subprime
Loan Issues
The following is an excerpt from information (managerial accounting basis) that we disclosed in presentation materials used in our
IR presentation regarding our financial results for the fiscal year ended March 31, 2009 that we held on May 22, 2009 regarding
the detailed status of our holdings of securitization products, etc., following the recommendations in “Report of the Financial
Stability Forum (“FSF”) on Enhancing Market and Institutional Resilience” dated on April 7, 2008. The presentation materials canbe found under “IR Presentations” on our website.

 Summary
Income Statement Impact of the Dislocation in Global Financial Markets
Managerial accounting basis, billions of yen, round figures

FY2008

Total Realized Gains/Losses in FY2008(A)+(B)

3 Banks (incl. Overseas Subsidiaries)(1) Losses on Sales of Securitization Products, etc. (incl. Devaluation)(o/w Foreign Currency Denominated)(12)(3) Provision of Reserve for Contingencies Associated with ABCP Programs(4)(4) Profits from Hedging by CDS (Related to Securitization Products)

+23
(A)

Mizuho Securities (incl. Overseas Subsidiaries)*2(5) Trading Losses on Securitization Products, Net of Hedges(o/w Foreign Currency Denominated)
Subtotal

86

(135)
(126)
(101)

(2) Net Losses on Provision of Reserve for Possible Losses on Sales of Loans*1

Subtotal

¥

(119)
(16)
(12)

(B)

(16)

Supplemental Information (Mar. 31, 2009) (Managerial accounting basis)<3 Banks (incl. overseas subsidiaries)>(1) Total balance of foreign currency denominated securitization products (fair value): approx. ¥540 billion···························P88
Total balance of yen denominated securitization products (fair value): approx. ¥2,549 billion············································ P94— Devaluation and losses on credit investments in Europe† (hedged portion): approx. ¥(17) billion— Devaluation and losses on credit investments in Europe† (unhedged portion): approx. ¥(44) billion† Credit investments related to the discontinuation of business primarily in Europe— Devaluation and losses on credit investments other than in Europe: approx. ¥(36) billion(o/w, ¥(25) billion on credit investment in Yen)
— Devaluation on RMBS CDOs which were acquired from our overseas ABCP conduit as a substitution payment ofloans in FY2007: approx. ¥(29) billion— Applied reasonably calculated prices as fair value for the majority of foreign currency denominated securitization
products. (P/L impact in FY2008 was approx. +¥107 billion)······················································································ P88(2) Balance of Loans Held for Sale*3: approx. ¥105 billion·······································································································P90— Reserve for Possible Losses on Sales of Loans: approx. ¥29 billion (Reserve ratio: 27.2%)— Reclassified a portion of Loans Held for Sale (¥348.2 billion) as loans other than Loans Held for Sale, based on thereasonably calculated prices, at the end of Dec. 2008
<Comparison to the amounts which would have been recorded if we had continued to classify the aforementioned
loans as Loans Held for Sale at the end of Mar. 2009>
Loans: ¥(27.7) billion, Reserve for Possible Losses on Sales of Loans: ¥(70.1) billion
Other within Other Ordinary Expenses: ¥(41.1) billion(3) Balance of assets acquired by our overseas ABCP conduits: approx. ¥150 billion ······························································ P89— Provision of Reserve for Contingencies for valuation losses against securitization products (with a US monoline
guarantee) (approx. ¥7 billion) included in the liquidity support of one of the overseas ABCP programs: approx.
¥(4) billion(4) Hedged proportions of foreign currency denominated securitization products: approx. 50%············································ P88<Mizuho Securities (incl. overseas subsidiaries)>*2(5) Total balance of foreign currency denominated securitization products (fair value): approx. ¥39 billion····························· P91
Total balance of yen denominated securitization products (fair value): approx. ¥188 billion···············································P95— CDS related to securitization products··························································································································P92*1. Separately recorded approx. ¥(19.0) billion of Credit Costs in FY2008 due to downgrading of some obligors to the Intensive Control Obligors classification or below*2. The balance of securitization products and the related gains/losses of Mizuho Investors Securities were negligible.
Excludes reserves for counterparty risks associated with the estimated amount claimable for the settlement of the CDS related to securitization products described in “CDS related to Securitization
Products” on P92.
*3. Includes commitments which had not yet been drawn but the documentations had been concluded87

Financial Analysis

Results for the Fiscal Year ended March 31, 2009 Banking Subsidiaries
Foreign Currency Denominated Securitization Products
3 Banks (incl. Overseas Subsidiaries) = Banking AccountManagerial accounting basis, billions of yen, round figures

Balances Marks (%)
Changes in FY08
as of
as of Gains/Losses
Forex
Mar. 08*1
Mar. 08(Realized
Rates(Fair Value) (=Fair Value+Changes/Face Value) in Unrealized)

1 Foreign Currency
Denominated
Securitization Products
2

78%

126

51

ABSCDOs, CDOs

3

CDOs backed by RMBS

4

CDOs except above

5

CDOs backed by Claims
against Corporations

6

CDOs backed by CMBS

7

¥ 889

RMBS with Underlying
Assets in US

9

RMBS except above(RMBS with Underlying
Assets mainly in Europe)10¥ (85) ¥ (108) ¥ (155)
(41)

(11)

Marks (%)
as ofMar. 09(=Fair Value/Face Value)

Unrealized
Gains/Lossesas ofMar. 09*2

62%¥ (53)¥ (101) approx.
50%

(3)

(44) approx.
30%

¥ 540

(26)

49

23

Realized
Gains/Lossesfor FY08*1,2(Reference)
HedgedProportions*3

36

28

(29)

(1)

(2)

5

3

0

(29)

—

*5

90

77

(11)

(11)

(24)

*5

44

55

(3)

(15)

approx.
30%

*6

90

(11) *6 (11) *6 (24)

*6

44

(15)

approx.
30%
—

RMBS

8

Balances
Sales,
as ofetc. Mar. 09*1,2(Fair Value)*7

ABS, CLOs and Others

*6

77

*6

*4

*6

55

(3)

*6

—

—

—

—

—

—

—

—

—

319

86

(36)

(57)

(38)

188

68

(21)

(37) approx.
60%

—

*7

—

*7

—

*7

—

*7

—

*7

—

*7

—

*7

—

*7

—

—
approx.
60%

319

86

(36)

(57)

(38)

188

68

(21)

(37)

444

85

(8)

(40)

(92)

303

79

(29)

(20) approx.
50%

11

CLOs

12

ABS

169

93

(8)

(19)

(74)

69

77

13

CMBS

79

89

(7)

(14)

(6)

52

14

SIV-related

—

—

—

—

—

—

*6

*6

195

*6

86

*6

7

*6

(7) *6 (12)

*6

182

*6

90

(6)

approx.
50%

(4)

(8)

approx.
40%

76

(5)

(6)

approx.
50%

—

—

0

—

*6

(20)

*6

*1. Except for the securitization products which were the reference assets of our securitization schemes for transferring credit risk to third parties (hedged portion), a Reserve for Possible Losses on
Investments has been provided since the end of fiscal 2007 against unrealized losses on securitization products related to the discontinuation of business regarding credit investments primarily inEurope, which had been made as an alternative to loans. The balance of reserve was approx. ¥32 billion as of Mar. 31, 2009. Since securities were recognized at fair value on the consolidated balance
sheet, the relevant balances as of Mar. 31, 2008 and Mar. 31, 2009 were those after being offset by the amount of Reserve for Possible Losses on Investments.
*2. Partial changes to the calculation method for fair value of securitization products
With respect to the vast majority of credit investments in securitization products made as an alternative to loans by our European and North American offices, we changed the calculation method forfair value and applied reasonably calculated prices based on the reasonable estimates of our management as fair value at the end of fiscal 2008. (The book value of the relevant securitization products
after the aforementioned change: approx. ¥515 billion. Please refer to page 1-28 of our Financial Statements for Fiscal 2008)(Impact during fiscal 2008) Balance as of Mar. 31, 2009: approx. +¥144 billion, Unrealized Gains/Losses as of Mar. 31, 2009: approx. +¥37 billion, P&L impact for FY2008: approx. +¥107 billion*3. The proportions of balances (fair value) of the securitization products, as of Mar. 31, 2009, which were the reference assets of our securitization schemes (with CDS and other means) for transferring
credit risk to third parties until maturity. In some of the securitization schemes, a portion of credit risk of the reference assets remained with Mizuho Financial Group through our retaining a small firstloss position and a portion of senior tranches.
(Reference) CDS†1 counterparties:
Financial services subsidiary (A- rating) of a multi-line insurance company: approx. ¥163 billion
Government-affiliated financial institution (AA- rating): approx. ¥98 billion†1 Notional amount basis. Ratings were based on the lowest external ratings as of Mar. 31, 2009.
*4. The proportion of US subprime mortgage loan-related assets to the total underlying assets of this CDO was up to approx. 40%. The entire balance (fair value) consisted of Super Senior tranche.
*5. The entire balance consisted of securitization products backed by original assets (non-securitized assets).
*6. Re-classified a part of the securitization products, which had been categorized in line 5 in the above table as of Mar. 31, 2008, to line 11 after a review of the definition of each category since ourdisclosure for the first quarter of fiscal 2008.
*7. Excluded US government-owned corporation bonds and government-sponsored enterprise bonds.
— The total balance of US government-owned corporation (Ginnie Mae) bonds and government-sponsored enterprise (Fannie Mae and Freddie Mac) bonds held was approx. ¥665 billion (of whichapprox. ¥663 billion was RMBS guaranteed by the Government National Mortgage Association (Ginnie Mae), a corporation wholly-owned by the US government), with approx. ¥18 billion of
unrealized gains. There was no holding of stocks of these entities.

Note: See P93 for details of breakdown by credit rating and geographic distribution and P94 for details of Yen denominated securitization products.

88Overseas ABCP Program/US Monoline/Loans Held for Sale/Others (Managerial accounting basis, round figures)
Overseas ABCP program related (Mar. 2009)<Assets acquired by overseas ABCP conduits (all in US)>• Balance as of Mar. 2009: approx. ¥150 billion• Breakdown of acquired assets
17%

42%
20%

Credit card receivables*1
Account receivables*1
Auto lease (rent-a-car) receivables*1
Loans against auto dealers
Others*1 (Note)

6%16%*1. Included approx. ¥82 billion of securitization products backed by marked assets (of whichapprox. ¥8 billion was guaranteed by US monolines as described below). The balance of
the above-mentioned securitization products decreased almost by half from that as ofMar. 2008 primarily due to the redemptions at maturities.
(Note) No US subprime mortgage loan-related assets were included• With respect to a part of liquidity facility for one of the overseas ABCP programs mentioned above, Mizuho Corporate Bank
recorded approx. ¥4 billion of Reserve for Contingencies for the equivalent amount of the entire valuation losses on approx. ¥7billion of securitization products backed by auto lease receivables (guaranteed by a US monoline) as of Mar. 2009.

Securitization products and loans guaranteed by US monolines (Mar. 2009)<Securitization products guaranteed by US monolines>• Approx. ¥8 billion of securitization products backed by auto lease receivables included in the acquired assets of the abovementioned overseas ABCP conduits sponsored by Mizuho Corporate Bank. (The balance decreased significantly from approx. ¥30
billion as of Mar. 2008 due to redemptions at maturities.)• Mizuho Corporate Bank recorded approx. ¥4 billion of Reserve for Contingencies on approx. ¥7 billion out of the above-mentioned
as of Mar. 2009. (Please refer to “Overseas ABCP program related (Mar. 2009)” noted above)<Loans guaranteed by US monolines>• Approx. ¥13 billion of Mizuho Corporate Bank's loan commitments to overseas infrastructure projects (of which approx. ¥6 billion
was drawn down). No US subprime mortgage loan-related exposures were included.
• There were no particular concerns about the credit conditions of the aforementioned projects as of Mar. 2009.
(Note) For the purpose of reference to the Mizuho Financial Group's exposures related to US monolines, P92 describes our securities
subsidiaries' exposures to such counterparties of credit default swaps (CDS) referring to securitization products, in addition to
the above-mentioned transactions of the banking subsidiaries.

Investments and loans associated with SIVs (Mar. 2009)• All exposures had already been written-off in FY2007.
• There was no SIVs established and provided liquidity support and other assistance by Mizuho.

Warehousing loan business*2 related to US subprime mortgage loan (Mar. 2009)• Nil*2. Loans provided to other financial institutions in connection with their structuring of securitization products until such products are sold

Loans to mortgage lenders in US (working capital, etc.) (Mar. 2009)• Approx. ¥45 billion (Approx. 40% of the lenders concerned had external ratings in the “A” range*3, and the rest had ratings in the“BB” range*3).
*3. Based on the lowest external ratings as of Mar. 31, 200989

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

Loans Held for Sale
<Balance of Loans Held for Sale including overseas LBO transactions>(for which Reserve for Possible Losses on Sales of Loans was recorded)Managerial accounting basis, billions of yen

Loans Held for Sale

Mar. 08¥

Reserve for Possible
Losses on Sales of Loans

806¥

Reserve Ratio

50

6.3%

Forex Rate Impact

approx. (31)——

Newly Underwritten

approx. 5——

Sales, etc.

approx. (674)

—

—

*

28

27.2%

Mar. 09105*of which approx. ¥7 billion was unused commitments(Additional explanation)
By Geographic Distribution (Mar. 2009)• The figures shown above exclude those related to Intensive Control Obligors or
5%
10%
below. The reserve ratio would be 35.5%, if including the balances of Loans
5%
Held for Sale to such obligors and the amounts of both Reserves for Possible
Losses on Loans and Reserve for Contingencies in relation to the relevantbalances.
80%• Out of the above-mentioned ¥105 billion, the LBO/MBO related Loans Held forSale amounted to approx. ¥81 billion, and the relevant reserve ratio was 30.2%.
(The figures shown above exclude those related to Intensive Control Obligors or
below. The reserve ratio would be 37.9%, if including the balances of Loans
Americas
EuropeHeld for Sale to such obligors and the amounts of both Reserves for Possible
Asia
Japan
Losses on Loans and Reserve for Contingencies in relation to the relevantbalances.)• Reserve for Possible Losses on Sales of Loans was provided based on the priority of the following valuation methods: (1)market prices, (2) market prices of similar transactions, (3) prices reasonably calculated by proprietary model reflecting factors
relative to each local market conditions.
• Top 5 transactions accounted for approx. 80%• With respect to a part of Loans Held for Sale by European offices (¥348.2 billion), we reclassified such loans as loans otherthan Loans Held for Sale, based on the reasonably calculated prices, at the end of Dec. 2008.
Comparison to the amounts which would have been recorded if we had continued to classify the aforementioned loans as
Loans Held for Sale at the end of Mar. 2009:
Loans: ¥(27.7) billion, Reserve for Possible Losses on Sales of Loans: ¥(70.1) billion
Other within Other Ordinary Expenses: ¥(41.1) billion<(Reference) Leveraged Loans> (Held for Sale + own loan portfolio)
Balance as of Mar. 2009: approx. ¥1.3 trillion(of which held for sale: approx. ¥0.1 trillion)

By Geographic Distribution (Mar. 2009)
9%
21%

9%

(Additional explanation)• Balances primarily include LBO financing and MBO financing.
• Includes commitments which had not been drawn but the documentations had
been concluded.
62%

AmericasAsia

90

EuropeJapan Securities Subsidiaries
Foreign Currency Denominated Securitization Products
Mizuho Securities (incl. Overseas Subsidiaries) = Trading AccountManagerial accounting basis, billions of yen, round figures

Balances
Marks (%)
as of
as of
Mar. 08
Mar. 08(Fair Value) (=Fair Value/
Face Value)

1 Foreign Currency Denominated
Securitization Products
2
3
4

5
6

ABSCDOs, CDOs
CDOs backed by RMBS
Hedged by CDS
with a Non-Investment
Grade Financial Guarantor
CDOs except above
CDOs backed by Claims
against Corporations

7

8
9

Hedged by CDS
with a Non-Investment
Grade Financial Guarantor
CDOs backed by CMBS
RMBS

10

RMBS backed by US
Subprime Mortgage Loans

11

RMBS except above(RMBS backed by Mid-Prime
Loans, Prime Loans and others)

12
13

RMBS backed
by Mid-Prime Loans (Alt-A)
ABS, CLOs and Others

¥ 105

22%

Changes in FY08
Realized
Forex
Losses
Rates

Sales,etc.

¥ (12)¥ (2)¥ (52)

50

18

(6)

(1)

(37)

24

10

(6)

(1)

(11)

*2 11

*2 17

*2 —

*2 —

*3,4 26

*4 83

*4 0

16

92

*2 —

Balances
Marks (%)
as of
as of
Mar. 09
Mar. 09(Fair Value) (=Fair Value/
Face Value)

¥ 39

12%

Realized
Gains/Losses
for FY08¥ (12)

6

2

(6)

6

2

(6)

*2 —

*2 —

*2 —

*2 —

*4 (0)*4 (26)

*4 —

*4 —

*4 0

—

—

(16)

—

—

—

*2 —

*2 —

*2 —

*2 —

*2 —

*2 —

*2 —

0

8

0

(0)

(0)

—

—

0

53

27

(1)

(1)

(50)

1

1

(1)

15

31

(0)

(0)

(15)

0

2

(0)

*5 38

*5 26

*5 (1)*5 (1)*5 (35)

*5 1

*5 1

*1

*5 (1)

19

26

(19)

0

1

2

67

(4)

(1)

35

32

79

(5)

*4 2

*4 73

*4 (3)*4 (1)

*4 26

*4 24

*4 83

*4 (3)

CMBS

0

43

(0)

(0)

(0)

0

14

(0)

SIV-related

—

—

—

—

*6 8

*6 8

72

(2)

14

CLOs

15
16

*1. The proportion of US subprime mortgage loan-related assets to the total underlying assets was approx. 10%. Approx. 50% of the balance (fair value) consisted of Super Senior tranche.
*2. CDO exposures hedged by CDS with a non-investment grade† US financial guarantor (monoline), net of allowances. (The hedging transaction was terminated in Aug. 2008.  included in line 3)† based on external ratings as of Mar. 31, 2008
*3. The entire balance consisted of securitization products backed by original assets (non-securitized assets).
*4. Re-classified the securitization products, which had been categorized in line 5 in the above table as of Mar. 31, 2008, to line 14 after a review of the definition of each category since our disclosure forthe first quarter of FY2008.
*5. Excluded US government-owned corporation bonds and government-sponsored enterprise bonds.
—The total balance of RMBS, which were issued or guaranteed by the US government-owned corporation (Ginnie Mae) or government-sponsored enterprises (Fannie Mae and Freddie Mac) was
minimal.
—Approx. ¥38 billion of the corporate bonds issued by Fannie Mae and Freddie Mac was held for the purpose of, among other things, market-making activities in the US, and all the bonds were
subject to mark-to-market accounting so that there were no unrealized losses (the recorded gains/losses for FY2008 were approx. ¥(2) billion).
—There was no holding of stocks of these entities.
*6. Obtained senior bonds issued by a SIV, in settlement of CDS transactions where such bonds were treated as collateral. These CDS transactions were related to CDO structuring business.

Note: See P93 for details of breakdown by credit rating and geographic distribution and P95 for details of Yen denominated securitization products.

91

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

CDS related to Securitization Products
By Credit Ratings of Counterparties*1 and Reference Assets
Managerial accounting basis, billions of yen, round figures

Notional
AmountAs of Mar. 2009

1 Total2of which Counterparties are US Monolines
3

¥ 298
27

¥ 208
20

Amount to be
Reserves
Claimed at thefor NPV
Settlement (NPV) (counterparty risks)
(C)
(D)

¥

70
7

¥

20
5

—

—

—

—

4

RMBS CDOs

—

—

—

—

5

Other CDOs (backed by Claims against Corporations)

—

—

—

—

189

158

31

7

6

AAA

(A)

Fair Valueof Reference
Asset
(B)

AA

7

RMBS CDOs

40

34

6

1

8

Other CDOs (backed by Claims against Corporations)

149

124

25

7

27

20

7

5
13

9
10

of which Counterparties are US Monolines

109

51

39

11

RMBS CDOs

*2 20

*2 0

*2 0

—

12

Other CDOs (backed by Claims against Corporations)

*3 90

*3 51

*3 39

*3 13

—
—

—
—

—
—

—
—

—

—

—

—

13
14
15

A-BBB

Non-Investment Grade or No Ratings
RMBS CDOs
Other CDOs (backed by Claims against Corporations)*1. Categorized by the lowest grade (external credit ratings as of Mar. 2009) in case of crossover credit. When the counterparty was guaranteed by third parties, categorized by the higher grade of eitherof them. In case of SPVs which do not have issuer ratings, categorized by the parties with which final risk resided.
*2. The balance of difference between the notional amount and the fair value of reference asset (approx. ¥20 billion) had already been received in cash from a CDS protection seller, thus the NPV for that
portion became nil (=no counterparty risk).
*3. For a portion of the amount, some of the rating agencies downgraded to BB equivalent rating as of May 19, 2009.

<CDS Transactions with Monolines, etc. (Concept Chart)>

Decline in value ofthe reference asset

92

Amount to beclaimed at thesettlement
(NPV)
(C)
Cash
received

Notional
amount of
CDS

Fair value ofthe reference
asset

(A)

(B)

(Provide reserves
if necessary)(D)

Please refer tofootnote *2 Other Supplemental Information
Foreign Currency Denominated Securitization Products by Credit Rating and Geographic Distribution
Foreign Currency Denominated Securitization Products by Credit Rating and Geographic Distribution(Banking Subsidiaries)
Managerial accounting basis, billions of yen, round figures

RMBS CDOs Other CDOs

Balance as of Mar. 09 (Fair Value)

¥

5

¥

44

Banking Subsidiaries (incl. overseas subsidiaries)
RMBS
CLOs
ABS
CMBS

¥

188

¥

182

¥

69

¥

Total

52

¥

540

By Credit Rating
AAA

0%

34%

10%

97%

25%

29%

AA

0%

21%

40%

0%

9%

40%

21%

A

0%

23%

34%

0%

51%

30%

23%

BBB

45%

0%

12%

15%

0%

12%

1%

8%

BB or Lower, No Ratings

100%

11%

2%

3%

3%

1%

4%

Total

100%

100%

100%

100%

100%

100%

100%

By Geography
US

100%

17%

0%

92%

10%

0%

34%

Europe

0%

83%

91%

8%

90%

100%

62%

Asia

0%

0%

9%

0%

0%

0%

3%

100%

100%

100%

Total

100%

100%

*1

100%

*1: By country
UK
46%
Netherlands 25%
Spain
12%
Others16%100%*1: Vintage
2004
6%2005 41%
2006 35%
2007 17%*2*2: Major underlying assets
Credit card receivables
Lease / Auto loan receivables
Others

34%
46%
20%

Foreign Currency Denominated Securitization Products by Credit Rating and Geographic Distribution(Securities Subsidiaries)
Managerial accounting basis, billions of yen, round figures

Securities Subsidiaries (incl. overseas subsidiaries)
RMBS CDOs
US SubOther
CLOs
SIV
Prime RMBS
RMBS

Balance as of Mar. 09 (Fair Value)

¥

6

¥

0

¥

1

¥

24

¥

8

Total

¥

39

By Credit Rating
AAA

0%

0%

0%

36%

0%

AA

0%

20%

0%

23%

0%

14%

A

0%

0%

0%

0%

100%

20%

BBB

23%

0%

14%

0%

6%

0%

4%

BB or Lower, No Ratings

100%

65%

100%

35%

0%

38%

Total

100%

100%

100%

100%

100%

100%
78%

By Geography
US

100%

100%

100%

65%

100%

Europe

0%

0%

0%

0%

0%

0%

Asia

0%

0%

0%

34%

0%

22%

Total

100%

100%

100%

100%

100%

100%

Vintage2006 13%2007 84%

93

Financial Analysis

Results for the Fiscal Year ended March 31, 2009

Yen Denominated Securitization Products
Yen Denominated Securitization Products (Banking Subsidiaries)
Managerial accounting basis, billions of yen, round figures

Banking Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 09
Unrealized Gains/Losses(Fair Value)
as of Mar. 09

1 Yen Denominated Securitization Products
2¥

ABSCDOs, CDOs

2,549

¥

*1

(34)

96

(6)

3

CDOs backed by RMBS

—

—

4

CDOs except above

96

(6)
(6)

5

CDOs backed by Claims against Corporations

94

6

CDOs backed by CMBS

2

(0)

7

RMBS*2

1,137

(8)

8

ABS, CLOs and Others

1,316

(21)
(20)

9

CMBS

849

10

ABS

406

0

11

CLOs

61

(1)

*1. Realized losses for banking subsidiaries in FY2008 was approx. ¥25 billion*2. Represented RMBS originated by Japanese financial institutions and others(Japan Housing Finance Agency Bonds were excluded)<Reference> Balances of the Japan Housing Finance Agency Bonds as of Mar. 2009
Balance: approx. ¥157 billion, Unrealized Losses: approx. ¥4 billion(Reference)Managerial accounting basis, billions of yen, round figures

Banking Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 09
Unrealized Gains/Losses(Fair Value)
as of Mar. 09

12 Foreign Currency Denominated Securitization Products
13 Total Securitization Products (Yen and Foreign Currency Denominated)

94

¥

540
3,090

¥

(53)
(87)

Yen Denominated Securitization Products (Securities Subsidiaries)
Managerial accounting basis, billions of yen, round figures

Securities Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 09
Realized Gains/Losses(Fair Value)
for FY08

1 Yen Denominated Securitization Products
2¥

ABSCDOs, CDOs

188

¥

45

(5)
(3)

3

CDOs backed by RMBS

1

(0)

4

CDOs except above

45

(3)

CDOs backed by Claims against Corporations

45

(3)

CDOs backed by CMBS

—

—

5
6
7

RMBS*1

8

ABS, CLOs and Others

9

(1)

134

(1)

9

CMBS

12

(0)

10

ABS

117

(2)

11

CLOs

5

1

*1. Represented RMBS originated by Japanese financial institutions and others(Japan Housing Finance Agency Bonds were excluded)<Reference> Balances of the Japan Housing Finance Agency Bonds as of Mar. 2009
Balance: approx. ¥15 billion, Realized Gains/Losses: negligible(Reference)Managerial accounting basis, billions of yen, round figures

Securities Subsidiaries (incl. overseas subsidiaries)
Balances as of Mar. 09
Realized Gains/Losses(Fair Value)
for FY08

12 Foreign Currency Denominated Securitization Products
13 Total Securitization Products (Yen and Foreign Currency Denominated)

¥

39
227

¥

(12)
(16)

95

Financial Analysis

Status of Asset Quality

 Disposal of Non-performing Loans (NPLs) in the Fiscal Year ended March 31, 2009
Consolidated Credit-related Costs resulted in ¥536.7 billion and Credit-related Costs in the aggregated figures of MHCB, MHBK
and MHTB (the Three Banks) resulted in ¥539.3 billion. This was primarily due to, in addition to decline in the domestic and overseas corporate sector's performance against the backdrop of the downturn in economic environment as well as effect by the turmoil in the global financial markets, the conservative provision of reserves in light of the unforeseeable future of the economic
environment.

 Outstanding Balance of NPLs
Status of Disclosed Claims
The Three Banks' aggregated figures of Disclosed Claims under the Financial Reconstruction Law (FRL) increased by ¥181.5 billion
from the end of the previous fiscal year to ¥1,384.7 billion. The classifications of those loans are shown in the table on page 100.
Of the total, Claims against Bankrupt and Substantially Bankrupt Obligors and equivalent increased by ¥171.4 billion. Claims
with Collection Risk increased by ¥222.5 billion to ¥598.0 billion. At the same time, Claims for Special Attention decreased by¥212.4 billion to ¥477.9 billion.
NPL Ratio
The aggregated NPL ratio for the Three Banks as of the end of March 2009 increased by 0.15 percentage points to 1.77% due tothe increase of Claims with Collection Risk claims or worse claims.
 Activities in Removal of NPLs from the Balance SheetWith respect to collection and disposal of impaired loans, our specialist unit maintains central control and pursues corporate revitalization 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 ¥339.9 billion in NPLs in fiscal 2008.
As a result, the removal ratio for NPLs amount categorized before fiscal 2007 has exceeded 95% as of the end of March 2009,
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.

96 Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

Credit-related Costs
Expenses related to Portfolio Problems (including Provisionfor (Reversal of) General Reserve for Possible Losses on Loans)

2009

¥

Losses on Write-offs of Loans
Reversal of Reserves for Possible Losses on Loans, etc.
Credit Costs for Trust Accounts

536.7

2008

¥

83.0

Change

¥

453.6

554.3

201.7

352.6

272.3
(17.6)—

128.0(118.6)
—

144.2
101.0
—

2009

2008

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)

¥

539.3
—
107.0
255.0
158.8
0.5
2.8
14.9

¥

92.5
—
30.7
91.3
(100.5)
(2.6)
1.0
72.5

Change

¥

446.7
—
76.2
163.6
259.3
3.1
1.8
(57.6)

97

Financial Analysis

Status of Asset Quality

 Overview of NPLs as of March 31, 2009 (the Three Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Category IV
Category III (Non-Collateralized)

Categorization

NonCategorization Category II

Bankrupt and Substantially
Bankrupt Obligors
308.7

Collateral, Guarantees, etc.:
279.8
Reserves for Possible Losses:
28.9

Reserve
Ratio
100%

476.3

118.5

Collateral, Guarantees, etc.:
260.1
Reserves for Possible Losses:
216.2

Reserve
Ratio
64.5%

Obligor

308.7

Watch Obligors

Intensive Control
Obligors
594.9

Claims for Special
Attention
477.9

Reserve Ratio against
Uncovered Portion
32.7%
Collateral, Guarantees, etc.:
112.8
Reserves for Possible Losses:
119.4

DirectWrite-offs

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

Claims against Bankrupt
and Substantially Bankrupt
Obligors
308.7

Loans to Bankrupt Obligors
108.7

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 51.0%·Reserve Ratiofor Uncovered Portion: 33.5%·Reserve Ratio
against Entire Claim: 24.7%

Claims with Collection Risk
594.9

Non-Accrual
Delinquent Loans
680.0

Coverage Ratio 80.0%
115.9 (Note 2)

Claims for Special
Attention (Note 1)
477.9
Coverage Ratio 48.6%

Loans Past Due forThree Months or More
18.7
Restructured Loans
458.0

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
78,119.0

Reserve Ratio
against Total Claims·Other Watch Obligors: 4.83%·Normal Obligors: 0.21%

Total Coverage
Ratio 73.6%

Total
1,381.6

Total
1,265.7

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims under
the FRL.

98

 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

2009

¥

320.0
600.8
499.9

2008

¥

Change

154.2
379.3
703.7

¥

165.7
221.5
(203.7)¥ 1,420.9¥ 1,237.4

¥

183.4

2009

2008

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

¥

535.9

¥

502.0

Change¥33.9))(Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2009

2008

Change

¥

0.0
3.1
—

¥

0.0
3.1
—

¥

(0.0)
(0.0)
—

¥

3.1

¥

3.1

¥

(0.0)

(Consolidated and Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

2009

¥

320.0
604.0
499.9

¥ 1,424.0

2008¥

Change

154.3
382.5
703.7

¥

165.7
221.4
(203.7)¥ 1,240.5

¥

183.4

99

Financial Analysis

Status of Asset Quality

Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

2009

¥

308.7
598.0
477.9

2008

¥

137.3
375.5
690.4

Change

¥

171.4
222.5
(212.4)

Subtotal

1,384.7

1,203.2

181.5

Normal Claims

76,767.6

73,157.1

3,610.5¥ 78,152.4¥ 74,360.4

Total

¥

3,792.0)

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 ¥0.4 billion and ¥0.6 billion as of March 31, 2009 and 2008, respectively, are not included in
the above figures for Trust Accounts.
Billions of yen

2009

Amount of Partial Direct Write-offs

¥

504.3

2008

¥

475.1

Change¥29.2))

Ratio of Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)%

As of March 31,

2009

2008

Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

0.39%
0.76
0.61

0.18%
0.50
0.92

Change0.21%
0.26(0.31)

Subtotal

1.77

1.61

0.15

Normal Claims

98.22

98.38

(0.15)

100.00%100.00%/Total
Note: Above figures are presented net of partial direct write-offs.

Disclosed Claims under the FRL and Coverage Amount (the Three Banks) (Banking Accounts)
Billions of yen

As of March 31,

Claims against Bankrupt and Substantially Bankrupt Obligors
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims with Collection Risk
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Claims for Special Attention
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Total
Collateral, Guarantees, and equivalent
Reserves for Possible Losses
Note: Above figures are presented net of partial direct write-offs.

100

2009

2008

Change

¥

308.7
279.8
28.9
594.9
260.1
216.2
477.9
112.8
119.4

¥

137.2
118.0
19.2
372.3
218.5
107.5
690.4
127.9
178.2

¥

171.4
161.8
9.6
222.5
41.5
108.7
(212.4)(15.1)(58.8)¥

1,381.6
652.7
364.6

¥

1,200.1
464.5
305.0

¥

181.5
188.2
59.6

Coverage on Disclosed Claims under the FRL (the Three Banks) (Banking Accounts)
Billions of yen, %As of March 31,

Coverage AmountReserves for Possible Losses on Loans
Collateral, Guarantees, and equivalent

2009

¥

1,017.4
364.6
652.7

2008

¥

769.6
305.0
464.5

Change

¥

247.8
59.6
188.2

Coverage Ratio
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

73.6%
100.0
80.0
48.6
51.0

64.1%
100.0
87.5
44.3
47.2

9.5%
—
(7.5)
4.2
3.8

Reserve Ratio against Non-collateralized Claims
Claims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)

100.0%
64.5
32.7
33.5

100.0%
69.9
31.6
31.5

—%
(5.3))
1.0
1.9(Reference) Reserve Ratio
Claims against Special Attention Obligors
Claims against Watch Obligors excluding Claims against Special Attention Obligors
Claims against Normal Obligors

24.71%
4.83
0.21

24.38%
5.35
0.11

0.33%
(0.52)
0.10

Note: Above figures are presented net of partial direct write-offs.

101

Financial Analysis

Status of Asset Quality

 Status of Non-Accrual, Past Due & Restructured Loans (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

2009

¥

112.1
700.3
18.7
480.1

2008

¥

Change

27.7
434.3
8.4
695.1

¥

84.4
266.0
10.2
(215.0)¥ 1,311.4¥ 1,165.7

¥

145.7

2009

2008

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

¥

464.9

¥

478.3

Change¥(13.3)

Ratio to Total Loans%

As of March 31,

2009

2008

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.15%
0.99
0.02
0.68

0.04%
0.66
0.01
1.05

(0.11)%
0.33
0.01(0.37)

1.85%

1.77%

0.08)%

2009

2008

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

¥

889.5
583.2
305.6
0.5

¥

684.4
510.9
173.4
0.0

Change¥205.1)
72.3
132.2
0.5

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2009

Amount of Partial Direct Write-offs

¥

540.0

2008

¥

515.8

Change¥24.1

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2009

2008

ChangeAfter Partial Direct Write-offs

67.83%

58.71%

9.11)%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

102

(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

2009

2008

Change

¥

—
3.1
—
—

¥

—
3.1
—
—

¥

—
(0.0)
—
—

¥

3.1

¥

3.1

¥ (0.0)

Ratio to Total Loans%

As of March 31,

2009

2008

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
9.38
.—
.—.

.—%
7.90
.—.
.—

.—%
1.48
.—.
.—

9.38%

7.90%

1.48%

2009

2008

Change

27.7
437.4
8.4
695.1

¥ 84.4)266.0
10.2(215.0)¥ 1,314.5¥ 1,168.8¥ 145.6

As of March 31,

2009

2008

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.15%
0.99
0.02
0.68

0.04%
0.66
0.01
1.05

0.11%
0.33
0.01
(0.37)

1.86%

1.78%

0.08%

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

¥

112.1
703.4
18.7
480.1

¥

Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

103

Financial Analysis

Status of Asset Quality

 Status of Non-Accrual, Past Due & Restructured Loans (the Three Banks)(Banking Accounts and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2009

¥

108.7
683.2
18.7
458.0

2008

¥

Change

24.9
422.5
8.4
681.8

¥

83.7)
260.6
10.2
(223.7)¥ 1,268.8¥ 1,137.8

¥

130.9

2009

2008

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

¥

434.3

¥

452.1

Change¥(17.7)

Ratio to Total Loans%

As of March 31,

2009

2008

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.15%
0.96
0.02
0.64

0.03%
0.64
0.01
1.03

0.11%
0.32
0.01
(0.38)

1.79%

1.73%

0.06%

2009

2008

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

¥

819.5
579.2
239.7
0.5

¥

589.0
472.1
116.7
0.0

Change

¥

230.5
107.0
122.9
0.5

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2009

Amount of Partial Direct Write-offs

¥

507.5

2008

¥

488.3

Change¥19.1

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2009

2008

ChangeAfter Partial Direct Write-offs

64.75%

51.91%

12.84%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

104 Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)

Billions of yen, %As of March 31,

2009
Outstanding
Balance Composition

2008
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 60,992.4
8,487.0
29.3
0.8
2.3
137.7
1,337.8854.3
749.9
2,870.1
5,617.1
7,306.2
6,215.6
5,377.6
670.8
7,969.8
13,365.4

100.00%
13.91
0.05
0.00
0.00
0.23
2.19
1.40
1.23
4.71
9.21
11.98
10.19
8.82
1.10
13.07
21.91

¥ 55,463.8
7,095.8
33.0
0.8
1.8
101.2
1,330.6
674.1
658.0
2,677.6
5,592.0
6,606.6
6,441.7
5,446.3
417.4
5,390.1
12,995.9

100.00%
12.79
0.06
0.00
0.00
0.18
2.40
1.22
1.19
4.83
10.08
11.91
11.62
9.82
0.75
9.72
23.43

¥ 5,528.5
1,391.2
(3.7)
(0.0)
0.4
36.4
7.1
180.1
91.8
192.4
25.1
699.6
(226.0)(68.6)
253.4
2,579.6
369.5

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

9,527.7
255.1
1,662.6
7,610.0

100.00
2.68
17.45
79.87

10,144.8
343.6
1,934.3
7,866.8

100.00
3.39
19.07
77.54

(617.0)(88.5)(271.7)(256.8)/(0.71)(1.62)
2.33¥ 70,520.2/¥ 65,608.7/¥ 4,911.5

/

Total

/
1.12)%(0.01)
0.00
0.00
0.05
(0.21)
0.18
0.04(0.12)(0.87)
0.07(1.43)(1.00)
0.35
3.35(1.52)

Notes: 1. Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.
2. Loans to special purpose entities for securitization of assets and others, which had been included in Service Industries, are included in Finance & Insurance.

Outstanding Balances by Industry (the Three Banks) (Banking Accounts and Trust Accounts)

Billions of yen, %As of March 31,

2009
Outstanding
Balance Composition

2008
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 64,192.4
8,483.8
29.3
0.8
2.3
137.7
1,337.8
854.3
1,939.2
2,870.3
5,614.7
8,669.0
6,276.8
5,423.6
686.1
7,879.8
13,986.3¥ 59,111.4
7,098.4
33.0
0.8
1.8
101.2
1,331.2
674.1
1,938.7
2,678.2
5,592.3
8,254.0
6,508.0
5,467.7433.9
5,340.1
13,657.1¥ 5,081.0
1,385.3
(3.7)
(0.0)
0.4
36.4
6.6
180.1
0.4
192.0
22.3
415.0
(231.2)(44.1)
252.1
2,539.6
329.2

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

8,546.1
254.9
1,990.4
6,300.7

100.00
2.98
23.29
73.73

8,946.1
342.7
2,253.8
6,349.4

100.00
3.83
25.19
70.98

(400.0)(87.8)(263.4)(48.7)/(0.85)(1.90)
2.75¥ 72,738.5/¥ 68,057.5/¥ 4,681.0

/

Total

100.00%
13.22
0.05
0.00
0.00
0.21
2.08
1.33
3.02
4.47
8.75
13.50
9.78
8.45
1.07
12.28
21.79

100.00%
12.01
0.06
0.00
0.00
0.17
2.25
1.14
3.28
4.53
9.46
13.96
11.01
9.25
0.74
9.04
23.10

Notes: 1. Loans to Finance & Insurance sector include loans to MHFG as follows:
As of March 31, 2009: ¥700.0 billion (from MHBK)As of March 31, 2008: ¥1,000.0 billion (from MHCB ¥500.0 billion; from MHBK ¥500.0 billion)
2. Loans to special purpose entities for securitization of assets and others, which had been included in Service Industries, are included in Finance & Insurance.

/1.21)%(0.01)
0.00
0.00
0.04
(0.17)
0.19(0.26)(0.06)(0.71)(0.46)(1.23)(0.80)
0.33
3.24(1.31)

105

Financial Analysis

Status of Asset Quality

Disclosed Claims under the FRL by Industry and Coverage Ratio (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen, %As of March 31,

2009
Disclosed Claims
under the FRL Coverage Ratio

2008
Disclosed Claims
under the FRL Coverage Ratio

ChangeDisclosed Claims
under the FRL Coverage Ratio

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 1,241.3
165.1
0.3
—
0.0
0.0
74.7
2.0
38.7
104.4
143.7
10.3
285.2
219.4
30.6
—
166.1

¥ 1,163.9
120.6
0.3
—
0.1
0.1
54.2
0.0
10.8
117.1
218.8
177.5
100.6
189.5
30.6
—
143.1

¥

Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other

143.4
—
1.0
142.4

Total

¥ 1,384.7

75.4%
69.9
99.4
—
100.0
100.0
70.4
73.0
49.1
52.7
71.0
52.2
89.1
65.2
100.0
—
94.0
58.7
—
116.1
58.3
73.6%

39.2
0.0
0.0
39.1
¥ 1,203.2

63.5%
65.7
61.7
—
104.4
60.8
66.1
100.0
64.0
47.2
55.2
38.6
86.3
64.0
100.0
—
93.0
84.5
67.6
99.9
84.5
64.1%

¥

77.3
44.5
0.0
—
(0.1)
(0.0)
20.5
2.0
27.8
(12.6)(75.0)(167.1)
184.5
29.8
(0.0)
—
22.9

11.8)%
4.1
37.7
—
(4.4)
39.1
4.2
(26.9)(14.8)
5.4
15.8
13.6
2.7
1.2
—
—
1.0

104.1
(0.0)
0.9
103.3

(25.7)—
16.1(26.1)

181.5

9.5)%

Non-Accrual, Past Due & Restructured Loans by Industry (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

As of March 31,

2009

2008

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Governments
Governments
Other¥ 1,155.6
156.4
0.3
—
0.0
0.0
73.5
2.0
37.2
101.6
132.6
25.4
279.6
199.9
3.0
—
143.5

¥ 1,100.4
115.5
0.3
—
0.1
0.0
53.2
0.0
9.1
113.7
211.8
196.2
100.0
167.5
3.0
—
129.4

Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other

113.2
—
1.0
112.1

37.4
0.0
—
37.3

¥ 1,268.8¥ 1,137.8

Total

Note: Loans to special purpose entities for securitization of assets and others, which had been included in Service Industries, are included in Finance & Insurance.

106

Change

¥

55.1
40.8
0.0
—
(0.1)
(0.0)
20.2
2.0
28.0
(12.1)(79.2)(170.8)
179.6
32.4
(0.0)
—
14.0
75.7
(0.0)
1.0
74.8

¥

130.9

 Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2009

Billions of yen, %As of March 31, 2008

Billions of yen, %UkrainePakistan
Others (2 Countries)

¥

3.6
0.0
0.0

Uruguay
Tanzania
Others (2 Countries)

¥

0.6
0.1
0.0

Total
Ratio to Total Assets

¥

3.7
0.00%

Total
Ratio to Total Assets

¥

0.8
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,

2009

Loan Amount
Number of Restructuring Countries

¥

2008

3.7
4

¥

Change

0.8
4

¥

2.9
—

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,

2009
Non-Accrual,
Outstanding
Past Due &Restructured Loans
Balance

Outstanding
Balance

Asia
Hong Kong
Korea
SingaporeThai¥ 1,940.6
460.1
248.2
299.4
265.4

17.2
1.8
—
7.0
1.8

¥ 2,066.9
433.9
341.1
335.5
269.6

¥

2008
Non-Accrual,
Past Due &Restructured Loans¥

ChangeNon-Accrual,
Outstanding
Past Due &Balance
Restructured Loans

5.9
0.2
—
—
0.6

¥ (126.3)
26.1(92.8)(36.1)
(4.2)

¥

11.2
1.5
—
7.0
1.1

Central and South America

2,563.3

0.1

2,292.5

0.1

270.8

(0.0)

North America

2,582.3

21.7

2,353.6

4.1

228.7

17.6

Eastern Europe

86.0

5.9

88.6

—

(2.5)

5.9

Western Europe

3,011.3

58.4

3,262.9

23.6(251.6)

34.8

Other

854.5

9.5

1,045.0

3.9(190.4)

5.5

Total

¥ 11,038.3¥ 113.1¥ 11,109.7¥ 37.8¥(71.4)¥

75.2

Note: Loans by Mizuho Corporate Bank (China), Ltd. which was established in June 2007 is not included in the above table.

107

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
2005
30, 2006
31, 2007
30, 2007
31, 2008 30, 2008 (a) 31, 2009 (b)Amount Categorized as below
up to Fiscal 2005

¥ 9,845.8¥ 337.7¥ 227.3¥ 185.0¥ 124.8¥ 107.2¥ 98.3 ¥(8.8)

of which the amount in the processof being removed from the balance sheet

1,035.2

82.6

49.5

40.4

26.8

21.7

21.0

(0.7)

2,366.4
7,479.4

98.1
239.5

64.7
162.6

56.6
128.3

38.2
86.6

32.3
74.9

31.4
66.9

(0.8)
(8.0)

122.8

88.0

64.9

50.2

44.8

39.8

(5.0)

12.2

10.2

6.0

5.2

3.2

2.1

(1.0)

16.6
106.1

38.3
49.6

34.0
30.9

33.1
17.0

31.1
13.7

30.9
8.8

(0.2)
(4.8)

405.3

77.8

48.8

36.3

27.1

(9.2)

17.9

12.4

8.8

7.2

5.6

(1.6)

19.1
386.1

12.4
65.3

8.8
39.9

7.3
29.0

6.5
20.6

(0.8)
(8.4)

432.2

91.9

62.9

47.5

(15.3)

26.4

17.7

15.2

9.9

(5.3)

57.9
374.3

22.2
69.6

17.7
45.1

11.1
36.4

(6.6)
(8.7)

196.9

118.3

77.1

(41.1)

31.2

31.1

31.5

0.4

34.7
162.1

36.2
82.1

34.3
42.8

(1.8)
(39.3)

270.1

152.9

(117.2)

75.7

61.3

(14.3)

80.4
189.7

67.5
85.3

(12.9)(104.3)

463.8

463.8

96.5

96.5

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2006of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2006of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2007of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the First Half of Fiscal 2008of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Amount Newly Categorized as below
during the Second Half of Fiscal 2008of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk
Total

126.8
126.8
336.9
336.9
¥ 906.8 ¥ 266.8/¥ 460.5¥ 720.7¥ 760.0¥ 512.8¥ 640.0of which the amount in the processof being removed from the balance sheet

/

94.9

77.7

85.4

89.9

154.3

228.3

74.0

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

/
/

114.8
345.7

122.2
598.4

161.0
598.9

137.3
375.5

205.3
434.7

308.7
598.0

103.4
163.3

Note: Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

108

Change(b)-(a)Progress in Removal from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)(the Three Banks) (Banking Accounts and Trust Accounts)
AmountNewly
Categolized

Up to Fiscal 2005
First Half of Fiscal 2006
Second Half of Fiscal 2006
First Half of Fiscal 2007
Second Half of Fiscal 2007
First Half of Fiscal 2008
Second Half of Fiscal 2008
Total

Balance
as of March 31,
2009

Billions of yen%

Accumulated
RemovalAmountAccumulated
Removal Ratio

ModifiedAccumulated
Removal Ratio

99.0%
67.5
93.3
88.9
60.8
43.4
/

99.2%
69.3
94.7
91.2
76.8
66.1
/

/

/

¥ 9,845.8
122.8
405.3
432.2
196.9
270.1
463.8

¥

98.3
39.8
27.1
47.5
77.1
152.9
463.8

¥

9,747.4
82.9
378.1
384.6
119.7
117.2
/

¥11,737.2

¥

906.8

¥ 10,830.3

Notes: 1. Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

Breakdown of Reasons for Removal from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Newly Categorized as Claims against Bankrupt and Substantially Bankrupt Obligors or Claims with Collection Risk Amount Removed
Up toFirst Half of Second Half ofFirst Half of Second Half ofFirst Half of from BS in the Second
Fiscal 2005
Fiscal 2006
Fiscal 2006
Fiscal 2007
Fiscal 2007
Fiscal 2008 Half of Fiscal 2008

Liquidation¥

Restructuring(39.5)

¥

(0.3)

¥

(1.8)

¥

(5.8)

¥

(1.3)

¥

(0.4)

¥

(49.2))

0.0

(0.0)

—

(0.0)

(0.0)

—

(0.0)

—
(12.6)

—
(1.6)

—
(4.2)

(0.0)
(5.9)

(0.0)
(9.4)

(0.0)
(5.7)

(0.0)
(39.5)

Direct Write-off

53.9

(1.3)

4.7

9.4

(4.8)

(38.9)

22.9

Other
Debt Recovery
Improvement in Business Performance(10.6)
(8.4)
(2.1)

(1.6)
(1.2)
(0.3)

(7.9)
(4.2)
(3.6)

(13.0)(10.5)(2.4)(25.6)(15.0)(10.5)(72.0)(52.8)(19.1)(130.9)(92.5)(38.3)(41.1)¥ (117.2)

Improvement in Business Performancedue to Restructuring
Loan Sales

Total

¥

(8.8)

¥

(5.0)

¥

(9.2)

¥

(15.3)¥¥(197.0)(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Up to First
Half of Fiscal 2006

Breakdown of Amount Removed
In Second Half
In First Half In Second Half
In First Halfof Fiscal 2006 of Fiscal 2007 of Fiscal 2007 of Fiscal 2008

¥

(6.9)

¥

(30.0)¥(35.8).9) ¥ (142.1)

Accumulated Removed
Amount from BS
In Second Halffrom Second Halfof Fiscal 2008of Fiscal 2000

Liquidation¥ (1,375.7)¥ (49.2)¥ (1,640.0))

Restructuring(1,773.2)(55.5)(11.0)

(2.6)

(1.8)

(0.0)

(1,844.4)

Improvement in Business Performancedue to Restructuring
Loan Sales(179.5)(4,157.7)(1.0)(38.0)(1.0)(26.2)(0.0)(60.9)—(19.4)(0.0)(39.5)(181.7)(4,341.9)

Direct Write-off

3,093.1

81.0

46.5

27.8

135.4

22.9

3,406.8

Other
Debt Recovery
Improvement in Business Performance(5,114.8)//(124.5)(67.7)(56.8)(371.0)(67.9)(303.0)(372.5)(138.8)(233.6)(114.9)(77.5)(37.3)(130.9)(92.5)(38.3)(6,228.8)//¥ (9,508.2)¥ (145.1)¥ (392.9)¥ (444.1)¥ (142.9)¥ (197.0)¥ (10,830.3)

Total

Notes: 1. Up to First Half of Fiscal 2006 denotes the term from the Second Half of Fiscal 2000 to the First Half of Fiscal 2006.
2. Figures from fiscal 2003 to the first half of fiscal 2005 include those of financial subsidiaries for corporate revitalization.

109

Financial Analysis

Status of Asset Quality

Write-Offs of Loans (the Three Banks) (Banking Accounts)
Billions of yen

For the Fiscal Years ended March 31,

Write-offs of Loans
Note: The above figures are included in Other Expenses on the statement of income.

110

2009

¥

271.0

2008

¥

126.7

Change¥144.3

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

112

Consolidated Financial Statements

113

Notes to Consolidated Financial Statements

121

111

Financial Data of Mizuho Financial Group, Inc.

Report of Independent Auditors

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated balance sheets of Mizuho Financial Group, Inc. and consolidated subsidiaries asof March 31, 2009 and 2008, and the related consolidated statements of income, changes in net assets, and cash flows for theyears then ended, all expressed in yen. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial positionof Mizuho Financial Group, Inc. and consolidated subsidiaries at March 31, 2009 and 2008, and the consolidated results of theiroperations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.
Additional Information
As described in Note 37 to the consolidated financial statements, Mizuho Securities Co., Ltd., a majority-owned consolidated subsidiary, and Shinko Securities Co., Ltd., an affiliate accounted for under the equity method, merged on May 7, 2009. After themerger, Mizuho Securities Co., Ltd. has become a majority-owned consolidated subsidiary of Mizuho Financial Group, Inc.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2009are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made on the basis described in Note 1.

Ernst & Young ShinNihon LLC
June 26, 2009112

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2009

As of March 31,

AssetsCash and Due from Banks (Notes 11, 31 and 38)
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased (Note 38)
Trading Assets (Notes 4, 11 and 38)
Money Held in Trust (Note 38)
Securities (Notes 5, 11, 22 and 38)
Loans and Bills Discounted (Notes 6 and 11)
Foreign Exchange Assets (Note 7)
Derivatives other than for Trading Assets (Notes 8 and 39)
Other Assets (Notes 8, 11 and 38)
Tangible Fixed Assets (Notes 9, 11, 23 and 32)
Intangible Fixed Assets (Note 32)
Deferred Tax Assets (Note 33)
Customers' Liabilities for Acceptances and Guarantees (Note 22)
Reserves for Possible Losses on Loans (Note 10)
Reserve for Possible Losses on Investments
Total Assets¥

5,720,253
141,296
6,270,321
5,819,418
2,612,368
13,514,509
40,69330,173,632
70,520,224
980,0037,872,780
4,138,508
842,809
303,854
722,160
3,939,818(889,579)(3)¥ 152,723,070

Liabilities and Net Assets
Liabilities
Deposits (Notes 11 and 12)¥ 86,539,020
Debentures (Note 13)
2,300,459
Call Money and Bills Sold (Notes 11 and 14)
6,449,829
Payables under Repurchase Agreements
9,173,846
Guarantee Deposits Received under Securities Lending Transactions (Note 11)4,110,941
Commercial Paper (Note 15)—
Trading Liabilities (Note 4)
7,995,359
Borrowed Money (Notes 11 and 16)
8,941,972
Foreign Exchange Liabilities (Note 7)
591,132
Short-term Bonds (Note 17)428,785
Bonds and Notes (Note 18)
4,597,403
Due to Trust Accounts
986,147
Derivatives other than for Trading Liabilities (Notes 19 and 39)
7,578,211
Other Liabilities (Note 19)
4,620,459
Reserve for Bonus Payments
47,942
Reserve for Employee Retirement Benefits (Note 20)
36,329Reserve for Director and Corporate Auditor Retirement Benefits
1,978
Reserve for Possible Losses on Sales of Loans
28,711
Reserve for Contingencies
20,555Reserve for Frequent Users Services
11,389Reserve for Reimbursement of Deposits
13,605Reserve for Reimbursement of Debentures
8,973
Reserves under Special Laws
1,750
Deferred Tax Liabilities (Note 33)
7,486
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 23)
104,355
Acceptances and Guarantees (Note 22)
3,939,818
Total Liabilities¥ 148,536,464

¥

2008

3,483,802
248,728
7,233,199
9,069,138
3,388,461
13,856,237
32,82733,958,537
65,608,705
803,141

Thousands of
U.S. dollars (Note 1)
2009$

10,984,529
802,692
284,825
607,920
4,733,852(684,465)(30)

58,215,482
1,437,985
63,813,570
59,224,694
26,586,285
137,538,260
414,140
307,079,507
717,690,050
9,973,578
80,121,927
42,117,936
8,577,344
3,092,350
7,349,489
40,095,849(9,053,319)(31)¥ 154,412,105$ 1,554,275,096¥ 86,264,041
3,159,443
6,693,712
11,511,019
6,927,740
30,0008,313,072
4,818,895
222,652
787,784
4,052,189
1,119,946$

9,795,054
43,37536,0197,057
50,895
14,095
8,349
9,614
—
2,680
11,354
105,096
4,733,852

880,714,637
23,411,966
65,640,444
93,362,985
41,837,384—
81,369,419
91,003,183
6,016,003
4,363,780
46,788,148
10,036,108
77,124,069
47,022,787
487,910369,725
20,139292,196
209,198
115,909
138,461
91,32817,81676,187
1,062,031
40,095,849¥ 148,717,945$ 1,511,667,662

113

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheets
Millions of yen
2009

As of March 31,

Net Assets
Common Stock and Preferred Stock (Note 24)
Capital Surplus
Retained Earnings
Treasury Stock (Note 24)¥

Total Shareholders' Equity

1,540,965
411,093
1,476,129(2,507)$

15,682,526
4,186,026
6,188,208(63,282)

3,425,680

25,993,478(519,574)
67,525
146,447(114,765)

401,375
5,985
147,467(78,394)(5,287,752)
687,2091,490,405(1,167,979)(420,367)

476,434(4,278,117)

1,187

—

12,0882,051,667

1,792,045

20,879,985

4,186,606

5,694,159

42,607,434¥ 152,723,070¥ 154,412,105$ 1,554,275,096

Total Valuation and Translation Adjustments
Stock Acquisition Rights (Note 21)
Minority Interests
Total Net Assets
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

114¥

2,554,119

Net Unrealized Gains (Losses) on Other Securities, net of Taxes (Note 38)
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes (Note 23)
Foreign Currency Translation Adjustments

Total Liabilities and Net Assets

1,540,965
411,318
608,053(6,218)

2008

Thousands of
U.S. dollars (Note 1)
2009Consolidated Statements of Income
Millions of yen
2009

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 25)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 26)
Other Operating Income (Note 27)
Other Income (Note 29)¥

Total Income
Expenses
Interest Expenses (Note 25)
Fee and Commission Expenses
Trading Expenses (Note 26)
Other Operating Expenses (Note 28)
General and Administrative Expenses (Note 21)
Other Expenses (Note 30)
Total Expenses
Income (Loss) before Income Taxes and Minority Interests
Income Taxes:
Current
Deferred
Minority Interests in Net Income
Net Income (Loss)¥

2,144,436
55,891
514,997
301,521259,151
260,568¥2008

2,864,796
64,355596,759
249,076
294,356
579,737

Thousands of
U.S. dollars (Note 1)
2009$

21,824,102
568,8085,241,167
3,068,613
2,637,404
2,651,825

3,536,565

4,649,081

35,991,919

1,075,584
98,343—295,102
1,192,701
1,280,711

1,801,156
102,233
192,927
312,094
1,124,527
630,079

10,946,311
1,000,848—
3,003,281
12,138,221
13,033,902

3,942,443

4,163,019

40,122,563(405,877)

486,062(4,130,644)

48,247
109,103
25,58632,212
118,546
24,079491,014
1,110,357
260,395

311,224$ (5,992,410)

2008

U.S. dollars (Note 1)
2009(588,814)¥

Per Share of Common StockYen
As of March 31,

Net Income:
Basic
DilutedCash Dividends

2009

¥

(54.14)—10.00¥

25,370.25
24,640.00
10,000.00$(0.55)0—0.10

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

115

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Millions of yen
2009

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¥

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
Disposition of Treasury Stock
Effect of Exclusion of an Affiliate from the Scope of the Equity Method
Effect of Decrease in the Equity Position of an Affiliate
Total Changes during the period¥

1,540,965$

15,682,526

—

—

—

1,540,965

1,540,965

15,682,526

411,093411,110

4,183,734

225
—
—

—
(16)
(0)

2,292
—
—

225

(16)

2,292

411,318

411,093

4,186,026

1,476,129

1,440,310

15,022,688

—

2,867

—

(133,898)(588,814)(101)(146,308)
1,046(101,229)
311,224(1)(180,189)
3,148(1,362,695)(5,992,410)(1,029)(1,488,994)
10,648

Total Changes during the period(868,076)

32,951(8,834,480)

Balance as of the end of the period

608,053

1,476,129

6,188,208(2,507)(32,330)(25,524)(150,359)
280
146,308—60(150,464)
100
180,189(3)—(1,530,217)
2,852
1,488,994—
613

Total Changes during the period(3,710)29,822(37,758)

Balance as of the end of the period(6,218)(2,507)(63,282)

3,425,680

3,360,055

34,863,424

—

2,867

—

(133,898)(588,814)(150,359)
404
—
1,046
—
—
—
60

(101,229)
311,224(150,464)
98
—
3,148
(16)
(0)
(3)
—

(1,362,695)(5,992,410)(1,530,217)
4,115—
10,648———613(871,560)

62,757(8,869,946)

Balance as of the end of the period
Retained Earnings
Balance as of the end of the previous period
Effect of Unification of Accounting Policies Applied toForeign Subsidiaries
Changes during the period
Cash Dividends
Net Income (Loss)
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Revaluation Reserve for Land, net of Taxes

Treasury Stock
Balance as of the end of the previous period
Changes during the period
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Increase in Stock issued by MHFG held by Equity-Method Affiliates
Decrease in Stock issued by MHFG held by Equity-Method Affiliates

Total Shareholders' Equity
Balance as of the end of the previous period
Effect of Unification of Accounting Policies Applied toForeign Subsidiaries
Changes during the period
Cash Dividends
Net Income (Loss)
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Revaluation Reserve for Land, net of Taxes
Effect of Exclusion of an Affiliate from the Scope of the Equity Method
Effect of Decrease in the Equity Position of an Affiliate
Increase in Stock issued by MHFG held by Equity-Method Affiliates
Decrease in Stock issued by MHFG held by Equity-Method Affiliates
Total Changes during the period
Balance as of the end of the period

116

1,540,965

2008

Thousands of
U.S. dollars (Note 1)
2009¥

2,554,119¥

3,425,680$

25,993,478

Consolidated Statements of Changes in Net Assets
Millions of yen
2009

For the Fiscal Years ended March 31,

Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity¥

401,375¥

2008

1,550,628

Thousands of
U.S. dollars (Note 1)
2009$

4,084,828(920,949)(1,149,253)

Total Changes during the period(920,949)(1,149,253)(9,372,580)

Balance as of the end of the period(519,574)

401,375(5,287,752)

5,985(111,042)

60,917

Net Deferred Hedge Gains (Losses), net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity(9,372,580)

61,539117,028

626,292

Total Changes during the period

61,539117,028

626,292

Balance as of the end of the period

67,525

5,985

687,209

147,467

150,616

1,500,790(10,385)

Revaluation Reserve for Land, net of Taxes
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity(1,020)(3,148)

Total Changes during the period(1,020)(3,148)(10,385)

Balance as of the end of the period

146,447

147,467

1,490,405(78,394)(38,964)(797,824)(370,155)

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(36,371)(39,429)

Total Changes during the period(36,371)(39,429)(370,155)

Balance as of the end of the period(114,765)(78,394)(1,167,979)

476,434

1,551,237

4,848,711(896,802)(1,074,803)(9,126,828)

Total Changes during the period(896,802)(1,074,803)(9,126,828)

Balance as of the end of the period(420,367)

476,434(4,278,117)

—

—

—

Total Valuation and Translation Adjustments
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity

Stock Acquisition Rights
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity

1,187

—

12,088

Total Changes during the period

1,187

—

12,088

Balance as of the end of the period

1,187

—

12,088

1,792,045

1,813,115

18,237,793

259,621(21,070)

2,642,192

259,621(21,070)

Minority Interests
Balance as of the end of the previous period
Changes during the period
Net Changes in Items other than Shareholders' Equity
Total Changes during the period
Balance as of the end of the period¥

2,051,667¥

1,792,045

2,642,192$

20,879,985

117

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Millions of yen
2009

For the Fiscal Years ended March 31,

Total Net Assets
Balance as of the end of the previous period¥
Effect of Unification of Accounting Policies Applied toForeign Subsidiaries
Changes during the period
Cash Dividends
Net Income (Loss)
Repurchase of Treasury Stock
Disposition of Treasury Stock
Cancellation of Treasury Stock
Transfer from Revaluation Reserve for Land, net of Taxes
Effect of Exclusion of an Affiliate from the Scope of the Equity Method
Effect of Decrease in the Equity Position of an Affiliate
Increase in Stock issued by MHFG held by Equity-Method Affiliates
Decrease in Stock issued by MHFG held by Equity-Method Affiliates
Net Changes in Items other than Shareholders' Equity
Total Changes during the period
Balance as of the end of the period¥

6,724,408$

57,949,928

—

2,867

—

(133,898)(588,814)(150,359)
404
—
1,046
—
—
—
60
(635,992)(101,229)
311,224(150,464)
98
—
3,148
(16)
(0)
(3)
—
(1,095,873)(1,362,695)(5,992,410)(1,530,217)
4,115—
10,648———613(6,472,548)(1,507,553)¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

118

5,694,159

2008

Thousands of
U.S. dollars (Note 1)
2009

4,186,606(1,033,116)¥

5,694,159(15,342,494)$

42,607,434

Consolidated Statements of Cash Flows
Millions of yen
For the Fiscal Years ended March 31,

2009

Cash Flow from Operating Activities
Income (Loss) before Income Taxes and Minority Interests¥ (405,877)
Depreciation
142,676
Losses on Impairment of Fixed Assets
10,898
Amortization of Goodwill
66
Equity in Loss (Gain) from Investments in Affiliates
3,584
Increase (Decrease) in Reserves for Possible Losses on Loans
207,169
Increase (Decrease) in Reserve for Possible Losses on Investments(27)
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans(22,184)
Increase (Decrease) in Reserve for Contingencies
6,460
Increase (Decrease) in Reserve for Bonus Payments
9,072
Increase (Decrease) in Reserve for Employee Retirement Benefits
472
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits(5,079)
Increase (Decrease) in Reserve for Frequent Users Services (Note 31)
3,040
Increase (Decrease) in Reserve for Reimbursement of Deposits
3,990
Increase (Decrease) in Reserve for Reimbursement of Debentures
8,973
Interest Income—accrual basis(2,144,436)Interest Expenses—accrual basis
1,075,584
Losses (Gains) on Securities
548,270
Losses (Gains) on Money Held in Trust(87)
Foreign Exchange Losses (Gains)—net
339,310
Losses (Gains) on Disposition of Fixed Assets
8,949
Net Decrease (Increase) in Trading Assets(173,012)
Net Increase (Decrease) in Trading Liabilities
114,658
Decrease (Increase) in Derivatives other than for Trading Assets (Note 31)(1,855,354)
Increase (Decrease) in Derivatives other than for Trading Liabilities (Note 31)
2,098,531
Net Decrease (Increase) in Loans and Bills Discounted(6,593,357)
Net Increase (Decrease) in Deposits
1,903,938
Net Increase (Decrease) in Debentures(858,983)
Net Increase (Decrease) in Borrowed Money (excluding Subordinated
4,318,212
Borrowed Money)
Net Decrease (Increase) in Due from Banks (excluding Due from Central Banks)
Net Decrease (Increase) in Call Loans, etc.
Net Decrease (Increase) in Guarantee Deposits Paid under Securities
Borrowing Transactions

2008

¥

486,062
132,721
2,698
27,688(9,083)(163,096)(144)
50,895
1,048
5,152
(655)
565
4,575
9,614
—
(2,864,796)
1,801,156(180,014)(238)
998,555(1,700)(3,723,814)
299,439

Thousands of
U.S. dollars (Note 1)
2009$(590,397)
3,828,635(1,563,995)(4,130,644)
1,452,034
110,915675
36,484
2,108,381(279)(225,773)
65,74492,3284,809(51,690)
30,93940,60991,327(21,824,102)
10,946,311
5,579,794(886)
3,453,193
91,082(1,760,763)
1,166,890(18,882,098)
21,356,923(67,101,139)
19,376,540(8,741,945)

225,338

43,946,803

663,824
1,022,085(523,301)
845,166

6,755,793
10,401,847

3,249,719(444,926)

33,072,661

Net Increase (Decrease) in Call Money, etc.
Net Increase (Decrease) in Commercial Paper
Net Increase (Decrease) in Guarantee Deposits Received under Securities
Lending Transactions(1,355,886)(30,000)

266,469—(13,798,964)(305,313)(2,816,799)

980,959(28,666,795)

Net Decrease (Increase) in Foreign Exchange Assets
Net Increase (Decrease) in Foreign Exchange Liabilities
Net Increase (Decrease) in Short-term Bonds (Liabilities)
Net Increase (Decrease) in Bonds and Notes
Net Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net (Note 31)(226,677)
369,818(358,999)
520,993(133,798)
2,233,069(1,138,316)(206,414)

51,635(99,831)(54,086)
825,207(15,412)2,922,168(1,803,557)(1,603,353)(2,306,913)
3,763,675(3,653,566)
5,302,196(1,361,681)
22,726,133(11,584,744)(2,100,704)

538,081
35,684

123,352
47,3625,476,087
363,167

Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities¥

573,765¥

170,714$

5,839,254

119

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statements of Cash Flows
2009

2008

Thousands of
U.S. dollars (Note 1)
2009

Cash Flow from Investing Activities
Payments for Purchase of Securities¥ (72,752,600)
Proceeds from Sale of Securities
57,885,003
Proceeds from Redemption of Securities
17,497,697
Payments for Increase in Money Held in Trust(49,100)
Proceeds from Decrease in Money Held in Trust
41,193
Payments for Purchase of Tangible Fixed Assets(106,101)
Payments for Purchase of Intangible Fixed Assets(114,952)
Proceeds from Sale of Tangible Fixed Assets
5,956
Proceeds from Sale of Intangible Fixed Assets
1,112
Payments for Purchase of Stocks of Subsidiaries (affecting the scope of consolidation)—
Proceeds from Sales of Stocks of Subsidiaries (affecting the scope of consolidation)—¥ (83,933,854)
66,532,713
16,585,885(23,000)
39,869(84,804)(128,392)
18,45010,216(136,627)838$ (740,409,126)
589,100,379
178,075,490(499,695)
419,235(1,079,806)(1,169,885)
60,616
11,318——Millions of yen
For the Fiscal Years ended March 31,

Net Cash Provided by (Used in) Investing Activities

2,408,207(1,118,704)

24,508,526

Cash Flow from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Investments by Minority Shareholders
Repayments to Minority Shareholders
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock

1,388(125,000)
274,000(127,902)
747,821(373,976)(133,393)(79,785)(150,359)
179

129,859(83,000)
239,704(142,589)
288,196(185,500)(101,115)(80,277)(150,464)
98

14,134(1,272,135)
2,788,520(1,301,673)
7,610,642(3,805,984)(1,357,557)(811,987)(1,530,217)
1,823

Net Cash Provided by (Used in) Financing Activities

32,972(85,087)

335,566(22,066)(160)(224,571)

Net Increase (Decrease) in Cash and Cash Equivalents

2,992,879(1,033,237)

30,458,775

Cash and Cash Equivalents at the Beginning of the Fiscal Year

2,055,793

3,089,030

20,921,975

(0)

—

(7)

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents

Net Decrease in Cash and Cash Equivalents for Exclusionfrom Scope of Consolidation
Cash and Cash Equivalents at the End of the Fiscal Year (Note 31)
See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

120¥

5,048,671¥

2,055,793$

51,380,743

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho Financial
Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company Law of Japanand the Financial Instruments and Exchange Law, and in conformity with accounting principles generally accepted in Japan(“Japanese GAAP”) which are different in certain respects from the application and disclosure requirements of International
Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of the
Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to the consolidated financial
statements include information which is not required under Japanese GAAP but is presented herein as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not add up
exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The
rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation. The inclusion of suchamounts is not intended to imply that Japanese yen has been or could be readily converted, realized or settled into U.S. dollars atthat rate or any other rate.

2. Principles of Consolidation(1) Scope of Consolidation
The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “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 ofMarch 31, 2009 and 2008 were 145 and 146, respectively. In the fiscal year ended March 31, 2009, Mizuho Capital Investment(JPY) 3 Limited and 9 other companies were newly consolidated upon their establishment and so on. In the fiscal year ended
March 31, 2009, Mizuho Credit Co., Ltd. and 10 other companies were excluded from the scope of consolidation as a result of
dissolution and other factors.
The numbers of affiliates under the equity method as of March 31, 2009 and 2008 were 22 and 21, respectively.
Investments in affiliates include The Chiba Kogyo Bank, Ltd., Shinko Securities Co., Ltd., and certain other affiliates. In the fiscal
year ended March 31, 2009, Japan Stockholders Data Service Co., Ltd. and 2 other companies were newly included in thescope of the equity method upon their establishment. In the fiscal year ended March 31, 2009, Mizuho Corporate Leasing(Thailand) Co., Ltd. and 1 other company were excluded from the scope of the equity method as a result of the disposition ofits shares, and other factors.
Non-consolidated subsidiaries, including Asian-American Merchant Bank Limited and certain other affiliates, are notaccounted for under the equity method, as they are not significant to the consolidated financial statements of MHFG.
25 special purpose entities, assumed not to be the subsidiaries of the investors under Article 8-7 of “Regulation for Financial
Statements,” are excluded from the scope of consolidation. The summary of the above special purpose entities are described in“Special Purpose Entities Subject to Disclosure.” As “Implementation Guidance on Disclosures about Certain Special Purpose
Entities” (ASBJ Guidance No.15, March 29, 2007) has been applied from the fiscal year commencing with April 1, 2007, MHFG
has applied the guidance since the fiscal year 2007.
(2) Year-end Dates of Consolidated Subsidiaries
The accompanying consolidated financial statements include the accounts of subsidiaries whose fiscal year-ends are other thanMarch 31. Fiscal year-ends of such subsidiaries are principally December 31.
Consolidated subsidiaries with balance sheet dates of October 31, the day before the last business day of June, and the day
before the last business day of December were consolidated based on their tentative financial statements as of and for theperiod ended December 31. Other consolidated subsidiaries were consolidated based on their financial statements as of theirrespective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took place
between their respective balance sheet dates and the date of the consolidated financial statements.
(3) Evaluation of Assets and Liabilities of Consolidated Subsidiaries
Assets and liabilities of consolidated subsidiaries, including the portion attributable to minority shareholders, are valued at fairvalue as of the respective date of acquisition.

121

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(4) Amortization of Goodwill and Negative Goodwill
In the fiscal year ended March 31, 2008, goodwill of Mizuho Securities Co., Ltd. was entirely written off in accordance withlosses recognized on the impairment of its stocks. As a rule, Goodwill and Negative goodwill are amortized over a period up to
20 years under the straight-line method. The entire amount is expensed as incurred if the amount has no material impact.
3. Summary of Significant Accounting Policies(1) Trading Assets and Trading Liabilities
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates, currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis and recorded in
Trading Assets or Trading Liabilities on the consolidated balance sheets. Income or expenses generated on the relevant tradingtransactions are recorded in Trading Income or Trading Expenses on the consolidated statements of income.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance sheet
date. Derivative financial products, such as swaps, forward contracts and option transactions, are stated at their fair values,
assuming that such transactions were terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and interest paid during the fiscal year, the gains or losses
resulting from any change in the value of securities and other monetary claims between the beginning and the end of the fiscal
year and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the endof the fiscal year, assuming they were settled at the end of the fiscal year.
(2) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council, January
22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries and affiliates, into three
categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost, determined by the moving average method.
(iii)Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other securities
which have readily determinable fair value are stated at fair value with changes in net unrealized gains or losses, net of
applicable income taxes after excluding gains and losses as a result of the fair-value hedge method, included directly in Net
Assets. The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market
price over the month preceding the consolidated balance sheet date. The fair value of securities other than Japanese stocks
is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date (costof securities sold is calculated primarily by the moving-average method). Other securities which do not have readily determinable fair values are stated at acquisition cost or amortized cost as determined by the moving-average method.
In addition, investments in non-consolidated subsidiaries and affiliates which are not under the equity method are stated atacquisition cost as determined by the moving average-method.
(Additional Information)
Net unrealized gains/losses on Other securities, net of taxes, have been receiving greater focus because of the considerable
change in the market circumstances these days, and the values of securities deemed as market prices such as those obtained
from brokers and financial information vendors have been more available. Hence, taking into account the convergence of
global accounting standards, if the values deemed as market prices could be obtained by the reasonable estimate, Other
securities formerly measured at acquisition cost as securities without fair values are measured at such values. Among Other
securities valued at acquisition cost, Reserve for Possible Losses on Loans are provided for the bonds which are issued by private placement (Article 2 Paragraph 3 of the Financial Instruments and Exchange Law).
Partial Changes in measurement of Fair Value of Other Securities
For floating-rate Japanese government bonds within Securities, our domestic consolidated banking subsidiaries and some ofdomestic consolidated trust banking subsidiaries had been applying market prices to establish book value. Based on our
determination that current market prices may not reflect fair value due to the extremely limited volume of actual transactions, we have applied reasonably calculated prices as book value from the fiscal year ended March 31, 2009. As a result,compared to applying market price as book value, Securities increased by ¥97,748 million ($994,790 thousand), Deferred122

Tax Assets decreased by ¥7,488 million ($76,215 thousand), Net Unrealized Losses on Other Securities, net of Taxes
decreased by ¥85,946 million ($874,686 thousand) and Minority Interests increased by ¥4,312 million ($43,889 thousand)on the consolidated balance sheet as of March 31, 2009. In deriving the reasonably calculated price, we used the discountcash 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 our domestic consolidated banking subsidiaries, we had previously applied as fair value thevaluations obtained from brokers and information vendors based on our determination that such valuations constitute reasonably calculated prices that can be used as a proxy for market prices. Given the current situation in which the volume ofactual transactions is extremely limited and there exists a considerable spread between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fair value,
and we have applied reasonably calculated prices based on the reasonable estimates of our management as fair value fromthe fiscal year ended March 31, 2009. As a result, Securities increased by ¥144,286 million ($1,468,420 thousand), and Net
Unrealized Losses on Other Securities, net of Taxes decreased by ¥36,908 million ($375,618 thousand) on the consolidatedbalance sheet as of March 31, 2009. In addition, Other Operating Income increased by ¥416 million ($4,239 thousand),
Other Operating Expenses decreased by ¥52,883 million ($538,199 thousand), losses due to the discontinuation of businessregarding credit investments primarily in Europe in Other Expenses decreased by ¥54,078 million ($550,364 thousand),
which led to a decrease in Loss before Income Taxes and Minority Interests of ¥107,378 million ($1,092,802 thousand) on
the consolidated statement of income for the fiscal year ended March 31, 2009. The book value that was reasonably calculated based on the reasonable estimates of our management mentioned above is ¥515,199 million ($5,243,223 thousand).
In deriving reasonably calculated prices based on the reasonable estimates of our management mentioned above, we usedthe discounted cash flow method. The price decision variables include default rates, recovery rates, pre-payment rates, anddiscount rates, and the subject Securities included residential mortgage-backed securities, collateralized loan obligations,commercial mortgage-backed securities, and other asset-backed securities.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities above.
Certain Other Securities which have readily determinable fair value are devalued to the fair value, and the difference
between the acquisition cost and the fair value is treated as the loss for the fiscal year (“impairment (devaluation)”), if thefair value (primarily the closing market price at the consolidated balance sheet date) has significantly deteriorated comparedwith the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fairvalue. The amount of impairment (devaluation) was ¥455,719 million ($4,637,893 thousand) and ¥79,482 million for the
fiscal years ended March 31, 2009 and 2008, respectively.
The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:
Security whose fair value is 50% or less of the acquisition cost
Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower(3) Securities Lending and Borrowing Transactions
Unsecured loaned securities which the borrowers have the right to sell or repledge amounted to ¥4,490 million ($45,701 thousand) and ¥4,794 million as of March 31, 2009 and 2008, respectively, and are included in trading securities under Trading
Assets. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral. Among them, the total of securities repledged were ¥8,066,097 million($82,089,327 thousand) and ¥7,435,947 million as of March 31, 2009 and 2008, respectively, securities re-loaned was ¥24
million as of March 31, 2008 and securities neither repledged nor re-loaned were ¥3,339,133 million ($33,982,629 thousand)and ¥6,535,867 million as of March 31, 2009 and 2008, respectively.
(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 sell or pledge thesebankers' acceptances, commercial bills, documentary bills and foreign exchange bills. The face value of these bills amounted to¥613,244 million ($6,241,034 thousand) and ¥826,360 million as of March 31, 2009 and 2008, respectively.

123

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(5) Derivatives
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives qualifying ashedges are mainly accounted for using either the fair-value hedge method or the deferral method of hedge accounting (see thefollowing note).
(6) Hedge Accounting
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied ashedge accounting methods.
The portfolio hedge for a large volume of small-value monetary claims and liabilities of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by the method stipulated in the JICPA Industry
Audit Committee Report No.24.
The effectiveness of hedging activities for the portfolio hedge for a large volume of small-value monetary claims and liabilities
is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between the base interest rate index of the hedged cash flow and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the correlation between the fluctuation in the market or cash
flows of the hedged instruments and that of the hedging instruments.
Net Deferred Hedge Gains (Losses), net of Taxes recorded on the consolidated balance sheets resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of AccountingStandards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), under which the overall interest
rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis using derivatives transactions. Thesedeferred hedge gains/losses are amortized as interest income or interest expenses over the remaining maturity and averageremaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses, before net of applicable income taxes, were ¥84,716 million($862,168 thousand) and ¥154,316 million as of March 31, 2009 and 2008, respectively. The unamortized amounts of grossdeferred hedge gains on the macro-hedges, before net of applicable income taxes, were ¥80,611 million ($820,394 thousand)and ¥143,643 million as of March 31, 2009 and 2008, respectively.
Domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary apply the deferred methodof hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Foreign
Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25). The effectiveness of the hedge is assessed byconfirming both the amount for the foreign currency position of the hedging instruments of currency-swap transactions,exchange swap transactions and similar transactions as the method of hedging the foreign exchange risks of monetary claims
and liabilities denominated in foreign currencies and the amount for the foreign currency position of the hedged monetaryclaims and liabilities denominated in foreign currency are equivalent.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio
hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency and Other
securities in foreign currency (except for bonds) identified as hedged items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange contracts exceed the amount of acquisition cost of the hedged foreign
securities in foreign currency.
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or between trading
accounts and other accounts, which are designated as hedges, are not eliminated and related gains and losses are recognizedin the statements of income or deferred under hedge accounting, because these inter-company derivatives are executed
according to the criteria for appropriate outside third-party cover operations which are treated as hedge transactions objectively
in accordance with JICPA Industry Audit Committee Reports Nos.24 and 25.
(7) Translation of Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic banking subsidiaries anda domestic trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in non-consolidated subsidiaries and affiliates not under theequity method, which are translated at historical exchange rates.

124Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the above transactions, aretranslated into Japanese yen primarily at the exchange rates in effect at each balance sheet date.

(8) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings
3 years to 50 years
Others2 years to 20 years
In accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible fixed assets acquired on orafter April 1, 2007 is computed by the procedure stipulated in the revised law.
As for the tangible fixed assets acquired before April 1, 2007 and depreciated to their allowable limit for depreciation, theirsalvage values are depreciated using the straight-line method in the following five fiscal years.
(9) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internal-use software
are capitalized and amortized over their estimated useful lives of mainly five years as determined by MHFG and consolidated
subsidiaries.
(10) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned with finance leasetransactions that do not transfer ownership is mainly computed by the same method as the one applied to fixed assets owned
by us.
(11) Deferred Assets• Bond issuance costs• Bond issuance costs are expensed as incurred.
• Debenture issuance costs• Debenture issuance costs are expensed as incurred. Debenture issuance costs booked on the consolidated balance sheet as ofMarch 31, 2006 are amortized under the straight-line method within a certain period by applying the previous accounting
method based on the tentative measure stipulated in “Tentative Solution on Accounting for Deferred Assets” (theAccounting Standards Board of Japan (“ASBJ” Report No.19, August 11, 2006).
• Bond discounts• Bonds are stated at amortized costs computed by the straight-line method on the consolidated balance sheets. Bond discounts booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line method over
the term of the bond by applying the previous accounting method and the unamortized balance is directly deducted frombonds, based on the tentative measure stipulated in the “Tentative Solution on Accounting for Deferred Assets” (ASBJ Report
No.19, August 11, 2006).
(12) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internallyestablished standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company
Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions (“Substantially
Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described below and expectedamounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive Control
Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts ofclaims net of expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 6 below) and others,
if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method is applied,
under which the reserve is determined as the difference between the book value of the loan and its present value of
future cash flows discounted using the contractual interest rate before the loan was classified as a Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for the losses estimated for each individual loan.

125

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience and otherfactors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses based on analyses of the political and economic climates of the countries. All claims are assessed by each claim origination department inaccordance with the internally established “Self-assessment Standard,” and the results of the assessments are verified andexamined by the independent examination departments. Reserves for Possible Losses on Loans are provided on the basis ofsuch verified assessments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by athird party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of collateralpledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are written off
against the respective claims balances. The total directly written-off amounts were ¥540,000 million ($5,495,627 thousand)and ¥515,809 million as of March 31, 2009 and 2008, respectively.
From the fiscal year ended March 31, 2008, the claims above include corporate bonds which are issued by private placement(Article 2, Paragraph 3 of the Financial Instruments and Exchange Law) and others.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and otherfactors for general claims and the assessment for each individual loan for other claims.

(13) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after
taking into consideration the financial condition and other factors concerning the investee company. Except for securitization
products which are included as reference assets of other securitization schemes of the Group's domestic banking subsidiary,
Reserve for Possible Losses on Investments is provided against unrealized losses on securitization products related with the discontinuation of business regarding credit investments primarily in Europe which were made as an alternative to loans by theGroup's domestic banking subsidiary. Since securities are recognized at fair value on the consolidated balance sheets, the balance of Securities is offset against that of Reserve for Possible Losses on Investments by ¥31,786 million ($323,490 thousand)and ¥45,939 million for the fiscal year ended March 31, 2009 and 2008, respectively.
(14) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accruedat the end of the fiscal year, based on the estimated future payments.
(15) Reserve for Employee Retirement Benefits
Reserve for Employee Retirement Benefits (including Prepaid Pension Cost), which is provided for future benefit payments toemployees, is recorded as the required amount, based on the projected benefit obligation and the estimated plan asset
amounts at the end of the fiscal year. Unrecognized actuarial differences are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of theemployees of the respective fiscal year.
(16) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit payments todirectors, corporate auditors and executive officers, is recognized at the amount accrued at the end of the respective fiscal year,
based on the internally established standards.
(17) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses.
Of the Loans Held for Sale for which we had recorded Reserve for Possible Losses on Sales of Loans, with respect to loans in theamount of ¥348,279 million ($3,544,466 thousand) to a borrower in Europe whose business condition is sound and has no
particular financial problem, we decided not to sell such loans for the foreseeable future based on our determination that it isreasonable to continue holding such loans based on the difficulty in selling at a fair price. We thus reclassified such loans asloans other than Loans Held for Sale, based on the reasonably calculated prices, at the end of December 2008. As a result, on
the consolidated balance sheet as of March 31, 2009, Loans and Reserve for Possible Losses on Sales of Loans decreased by¥27,728 million ($282,197 thousand) and ¥70,198 million ($714,421 thousand), respectively, compared to the amounts which126

would have been recorded if we had continued to classify those loans as Loans Held for Sale. In addition, Other Expenses
decreased by ¥41,130 million ($418,592 thousand) for the fiscal year ended March 31, 2009.

(18) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not covered by otherspecific reserves, in off-balance transactions, trust transactions and others. The balance is an estimate of possible future losses,
on an individual basis, considered to require a reserve.
(19) Reserve for Frequent Users Services
Reserve for Frequent Users Services is provided mainly to meet the future use of points of Mizuho Mileage Club at the amountdeemed necessary based on the reasonable estimate of the future usage of points.
(20) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities at the estimated amount of future claims for withdrawal to provide for claims by depositors and others.
In accordance with “Auditing Treatment relating to Reserve defined under the Special Tax Measurement Law, Reserves
defined under the Special Law and Reserve for Directors and Corporate Auditor Retirement Benefits” (JICPA Auditing andAssurance Practice Committee report No.42, April 13, 2007) effective from the fiscal year 2007, MHFG has adopted the reportfrom the fiscal year ended March 31, 2008.
(21) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimated amountfor future claims.
Even though the debentures derecognized from Liabilities had been recorded as a loss when claims were made, from the fiscal year ended March 31, 2009 Reserve for Reimbursement of Debentures is recorded due to the availability of a reasonableestimate as a result of the development and analysis of data on claims. As a result, in the fiscal year ended March 31, 2009,
Other Expenses and Loss before Income Taxes and Minority Interests both increased by ¥8,973 million ($91,328 thousand)compared with the corresponding amounts under the previously applied method.
(22) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥1,750 million($17,816 thousand) and ¥2,680 million as of March 31, 2009 and 2008, 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.
Reserve for Contingent Liabilities from Futures Transactions and Reserve for Contingent Liabilities from Securities
Transactions, which were recognized under Article 81 of the Financial Futures Transaction Law and under Article 51 of the
Securities and Exchange Law, respectively, are stated as Reserve for Contingent Liabilities from Financial Instruments andExchange from the fiscal year 2007 because of the enforcement of the Financial Instruments and Exchange Law on September
30, 2007.
(23) Lease Transactions
Finance leases of MHFG and domestic consolidated subsidiaries that do not involve the transfer of ownership to the lessee areaccounted for as operating leases in the fiscal year 2007.
As “Accounting Standard for Lease Transactions” (ASBJ Statement No.13, March 30, 2007) and “Guidance on AccountingStandard for Lease Transactions” (ASBJ Guidance No.16) are applied from the fiscal year beginning on or after April 1, 2008,
MHFG has applied the new accounting standard and guidance beginning with the fiscal year 2008.
Although MHFG accounted for finance leases that do not involve transfer of ownership to lessee as operating leases, by thisapplication, MHFG accounts for them as normal trade transactions including the transactions that started before the end of fiscal year 2007.
The amount of cumulative effect until the end of fiscal year 2007 on Loss before Income Taxes and Minority Interests isrecorded in Other Expenses.
This change increases Lease Assets in Tangible Fixed Assets by ¥8,661 million ($88,151 thousand), Lease Assets in Intangible
Fixed Assets by ¥1,354 million ($13,785 thousand), Lease Obligation in Other Liabilities by ¥18,667 million ($189,979 thousand), Other Expenses by ¥10,828 million ($110,205 thousand) and Loss before Income Taxes and Minority Interests by ¥8,299
million ($84,465 thousand) as of or for the fiscal year ended March 31, 2009.

127

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(24) Scope of Cash and Cash Equivalents in Consolidated Statements of Cash Flows
In the consolidated statements of cash flows, Cash and Cash Equivalents consist of cash and due from central banks included in“Cash and Due from Banks” on the consolidated balance sheets.
(25) Income Taxes
Deferred income taxes are recorded for corporate tax, inhabitants' taxes and enterprise taxes based on the differences between
the tax bases of assets and liabilities and those reported in the consolidated financial statements and tax losses carried forward,
using enacted tax rates which will be in effect when the differences are expected to be reversed. The assets and liabilities
method is used to determine deferred income taxes.
While corporate tax payments overseas were formerly treated as deductions under the Corporate Tax Law and recorded in
Other Expenses, in the fiscal year ended March 31, 2009, it was anticipated that it would apply the foreign tax credits against
current tax payable under the Corporate Tax Law and the amount was recorded in Current Income Taxes. As a result, Other
Expenses decreased by ¥20,684 million ($210,511 thousand) and Current Income Taxes increased by the same amount compared with the corresponding amounts under the previously applied method.
(26) Consumption Taxes
MHFG and its domestic consolidated subsidiaries are subject to Japanese consumption taxes. Japanese consumption taxes are
excluded from transaction amounts.
(27) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2009(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred Stock
Total

As of
March 31, 2008

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2009

Remarks

11,396943
36

11,167,820
913,837
36,653276
28—

11,178,940
914,752
36,690*1*2*3

12,376

12,118,311

305

12,130,382

4—

11,621
2,829

290
28

11,3352,801

414,451319

14,136*4*5*1 Increases are due to request for acquisition (conversion) of preferred stock (59 thousand shares) and allotment of shares or fractions of ashare without consideration (11,167,761 thousand shares), and decreases are due to cancellation of treasury stock (common stock).
*2 Increases are due to allotment of shares or fractions of a share without consideration and decreases are due to cancellation of treasury
stock (preferred stock).
*3 Increases are due to allotment of shares or fractions of a share without consideration.
*4 Increases are due to repurchase of treasury stock (283 thousand shares of common stock), repurchase of fractional shares and sharesconstituting less than one unit (11 thousand shares), and allotment of shares or fractions of a share without consideration (11,326
thousand shares), and decreases are due to cancellation of treasury stock (276 thousand shares of common stock), repurchase of fractional
shares and shares constituting less than one unit (11 thousand shares) and others.
*5 Increases are due to request for acquisition (conversion) of preferred stock (31 thousand shares) and allotment of shares or fractions of ashare without consideration (2,798 thousand shares), and decreases are due to cancellation of treasury stock (preferred stock).

128

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdownof stockacquisitionrightsClass of shares
to be issued
or transferred
upon exerciseof stockacquisitionrightsStockacquisition rights(Treasury stockacquisition rights)—

Number of shares to be issued
or transferred upon exerciseof stock acquisition rights (Shares)
As ofMarch 31,
2008

Increaseduring the
fiscal year

Decreaseduring the
fiscal year

As of
March 31,
2009

—
(—)

—
(—)

—
(—)

—
(—)

Stock acquisitionrights as
stock option
Consolidated subsidiaries(Treasury stockacquisition rights)
Total

Balance asof March
31, 2009

Balance asof March
31, 2009(Millionsof yen)(Thousandsof U.S.dollars)

¥

—
(—)

$

—
(—)

—

1,032

10,509

—

155
(—)

1,579
(—)

¥ 1,187(—)$ 12,088(—)—

Remarks(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2009
Cash Dividends
Cash Dividends
Resolution

June 26,
2008

(

)

Ordinary
General Meetingof Shareholders

Cash Dividends
per Share

Cash Dividends
per Share(Yen)(U.S. dollars)

RecordDate

Types(Millions of yen)(Thousand of
U.S. dollars)Common Stock¥ 113,922$ 1,159,403¥ 10,000$ 101.77

March 31,2008

Eleventh Series Class XI
Preferred Stock18,874

192,090

20,000203.54

March 31,
2008

Thirteenth Series Class XIII
Preferred Stock

1,100

11,20230,000305.31March 31,2008

¥ 133,898$ 1,362,695

/

/

Total

Effective
Date

June 26,
2008

Cash dividends with record dates falling in the fiscal year ended March 31, 2009 and effective dates coming after the end of
the fiscal year
Cash Dividends
Cash Dividends
Resolution

June 25,
2009

(

)

Ordinary
General Meetingof Shareholders

Total

Types

(Millions of yen)(Thousand of
U.S. dollars)Common Stock¥ 111,676$ 1,136,536

Eleventh Series Class XI
Preferred Stock

18,239Thirteenth Series Class XIII
Preferred Stock

Resource ofDividends

Cash Dividends Cash Dividends
per Shareper Share

RecordDate(Yen)(U.S. dollars)

Retained
Earnings¥ 10$ 0.10March 31,2009

185,620

Retained
Earnings20

0.20

March 31,
2009

1,100

11,202Retained
Earnings30

0.31

March 31,2009

¥ 131,015$ 1,333,358//

Effective
Date

June 25,2009

We conducted an allotment of shares or fractions of a share without consideration on January 4, 2009.

129

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2008(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock
Total
Treasury stock
Common stock
Total

As of
March 31, 2007

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2008

11,872
943
36

—
—
—

475
—
—

11,396943
36

12,852—475

12,376

265

215

476

4

265

215

476

4

Remarks*1*2*1 Decreases are due to cancellation of treasury stock (common stock).
*2 Increases are due to repurchase of treasury stock (215 thousand shares of common stock) and repurchase of fractional shares (0 thousand
shares), decreases are due to cancellation of treasury stock (475 thousand shares of common stock) and additional purchase of fractional
shares (0 thousand shares).

(ii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):

Resolution

June 26,
2007

(

)

Ordinary
General Meetingof Shareholders

Cash Dividends

Cash Dividends
per Share

Types(Millions of yen)

(Yen)

Common Stock¥ 83,081()

Ordinary
General Meetingof Shareholders

Total

130

March 31,2007

18,87420,000March 31,
2007

Thirteenth Series Class XIII
Preferred Stock

1,100

30,000March 31,2007

¥ 103,056/

Cash Dividends

June 26,
2008

7,000

Eleventh Series Class XI
Preferred Stock

Total

Resolution¥

RecordDate

Resource ofDividends

Cash Dividends
per Share

RecordDate

Types(Millions of yen)

Common Stock¥ 113,922

Retained
Earnings¥ 10,000March 31,2008

Eleventh Series Class XI
Preferred Stock18,874Retained
Earnings

20,000March 31,
2008

Thirteenth Series Class XIII
Preferred Stock

1,100

Retained
Earnings

30,000March 31,2008

¥ 133,898

(Yen)

/

Effective
Date

June 26,
2007

Effective
Date

June 26,2008

(28) Changes in the Basis for Presentation of Consolidation
For the fiscal year ended March 31, 2009
1. While Derivatives other than for Trading Assets (Assets) and Derivatives other than for Trading Liabilities (Liabilities) were formerly included within Other Assets and Other Liabilities, respectively, they are separately presented from this fiscal year due
to their increased materiality.
Derivatives other than for Trading Assets included within Other Assets and Derivatives other than for Trading Liabilities
included within Other Liabilities as of March 31, 2008 were ¥6,185,988 million and ¥5,633,810 million, respectively.
For the fiscal year ended March 31, 2008
1. Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
Given that the “Practical Solutions on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ Report No.18, May 17, 2006) can be adopted from the fiscal year beginning on or before March
31, 2008, MHFG has adopted the new standards commencing with this fiscal year.
2. Accounting Standards for Financial Instruments
The definitions of securities in “Accounting Standards for Financial Instruments” (ASBJ Statement No.10) and in “Practical
Guidelines on Accounting Standards for Financial Instruments” (JICPA Laws and Regulations Committee Report No.14) werepartially revised on June 15, 2007 and on July 4, 2007, respectively, which is applicable from the fiscal year ending on orafter the enforcement date of the Financial Instruments and Exchange Law. MHFG has adopted the revised standards andguidelines commencing with this fiscal year.
3. Practical Guidelines for Tax Effects on Consolidated Financial Statements
As for the tax effects of sales of investments (such as subsidiaries' stocks) within the Group, MHFG has adopted Paragraph30-2 of “Practical Guidelines for Tax Effects on Consolidated Financial Statements” (JICPA Laws and Regulations Committee
Report No.6, March 29, 2007) from this fiscal year.

131Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(29) Per Share Information
Per share information as of or for the fiscal years ended March 31, 2009 and 2008 are calculated based on thefollowing information:
Yen
As of or for the Fiscal Years ended March 31,

Net Assets per Share of Common StockNet Income (Loss) per Share of Common Stock
Diluted Net Income per Share of Common Stock

¥

2009

2008

104.38(54.14)—¥ 254,722.01
25,370.25
24,640.00

U.S. dollars
2009

$

1.06
(0.55)—

Notes: 1.Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2009

As of March 31,

2008

Thousands of U.S. dollars
2009

Net Assets¥ 4,186,606¥ 5,694,159$
Deductions from Net Assets
3,020,835
2,792,451
Paid-in Amount of Preferred Stock948,641
980,430
Cash Dividends on Preferred Stock
19,33919,975
Stock Acquisition Rights
1,187—
Minority Interests
2,051,667
1,792,045
Net Assets (year-end) related to Common Stock
1,165,770
2,901,708
Year-end Outstanding Shares of Common Stock, based on
which Net Assets per Share of Common Stock was calculated
11,167,604 Thousand shares
11,391 Thousand shares

42,607,434
30,743,291
9,654,396
196,822
12,08820,879,985
11,864,143/

2.Net Income (Loss) per Share of Common Stock is based on the following information.
Millions of yen
2009

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)¥(588,814)
19,33919,339(608,153)¥

11,231,269 Thousand shares

2008

Thousands of U.S. dollars
2009311,224
19,975
19,975291,249$(5,992,410)
196,822
196,822(6,189,232)

11,479 Thousand shares/

3.Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
2009

For the Fiscal Years ended March 31,

Adjustments to Net Income
Cash Dividends on Preferred Stock
Increased Number of Shares of Common Stock
Preferred Stock
Description of Dilutive Securities which were
not Included in the Calculation of Diluted Net
Income per Share of Common Stock as they
have no dilutive effects

2008

¥

Thousands of U.S. dollars
2009

—
¥
18,874$—
18,874—
1,106 Thousand shares—
1,106 Thousand shares
Eleventh Series Class XI Preferred StockFirst Series of Stock Acquisition Rights*1—
First Series of Stock Acquisition Rights
of MHTB*2,3

—
—
—
—

*1 The overview of the stock acquisition rights is described in “22. Stock Options.”*2 The overview of the stock acquisition rights is described in “22. Stock Options.”*3 The number of stock acquisition rights is 1,695.
(Retroactive adjustments according to the allotment of shares or fractions of a share without consideration)
We conducted the allotment of shares or fractions of a share without consideration on January 4, 2009.
Per Share Information on the assumption that such allotment had been made at the beginning of the fiscal year 2007 would be
as follows:
For the fiscal year ended March 31,

Net Assets per Share of Common StockNet Income per Share of Common Stock
Diluted Net Income per Share of Common Stock

132

2008

¥

254.72
25.37
24.64

/

4. Trading Assets and Liabilities
Millions of yen
2009

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

¥

2008

Thousands of U.S. dollars
2009

7,718,927
5,557,050
238,530¥ 10,004,618
3,705,984
145,633$

78,556,155
56,554,557
2,427,548¥ 13,514,509¥ 13,856,237$ 137,538,260¥

2,878,498
4,873,521
243,339¥

4,533,279
3,609,823
169,969$

29,294,709
49,598,228
2,476,482¥

7,995,359¥

8,313,072$

81,369,419

Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 18,605,904
81,171—
2,702,751
3,129,512
5,654,292¥ 16,712,496
120,063
5,997
3,071,320
4,645,478
9,403,181$ 189,353,804
826,086—
27,506,120
31,849,302
57,544,195¥ 30,173,632¥ 33,958,537$ 307,079,507

5. Securities
As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2Total*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥107,942 million ($1,098,535 thousand) and ¥90,936 million as of March 31, 2009 and 2008, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥3,147 million ($32,032 thousand) and ¥4,978 million as of March 31, 2009 and 2008, respectively.

133

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

6. Loans and Bills Discounted
Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 55,785,991
10,988,828
3,387,247
275,42975,057
7,669¥ 51,489,837
10,865,091
2,745,257
387,198
118,035
3,284$ 567,738,569
111,834,198
34,472,297
2,803,072
763,86278,052¥ 70,520,224¥ 65,608,705$ 717,690,050

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, 2009 and 2008 include the following:
Millions of yen
2009

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
Loans Past Due for Three Months or More*3
Restructured Loans*4
Total

2008

Thousands of U.S. dollars
2009¥

112,197
700,358
18,764
480,118¥

27,769434,330
8,492
695,144$

1,141,844
7,127,606
190,964
4,886,209¥

1,311,439¥

1,165,736$

13,346,623*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the Corporate Tax Law Enforcement Ordinance(Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are deferred in order to assist or facilitate therestructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, the deferral of interest payments, the extension of
maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer is in breachof contract conditions. The unutilized balance of these contracts amounted to ¥54,576,376 million ($555,428,212 thousand) and¥55,431,471 million as of March 31, 2009 and 2008, respectively. Of these amounts, ¥47,284,078 million ($481,213,909 thousand) and ¥46,637,717 million relate to contracts of which the original contractual maturity is one year or less, or which areunconditionally cancelable at any time as of March 31, 2009 and 2008, respectively.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affect future
cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse the execution ofloans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve aclaim, or other similar reasons. The banking subsidiaries require collateral such as real estate and securities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor customer's business conditions in accordancewith internally established standards and take necessary measures to manage credit risks such as amendments to contracts.

1347. Foreign Exchange Assets and Liabilities
Millions of yen
2009

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Advance from Foreign Banks
Due to Banks (Foreign)
Foreign Bills Payable
Foreign Bills Sold
Total

2008

Thousands of U.S. dollars
2009¥

357,113
134,647
96,317391,925¥

446,044
200,185
139,507
17,404$

3,634,373
1,370,317
980,227
3,988,661¥

980,003¥

803,141$

9,973,578¥

556,897
16,486
12,032
5,715

¥

7,540
189,447
16,933
8,730$

5,667,596
167,781
122,456
58,170¥591,132¥

222,652$

6,016,003

Millions of yen
2009

2008

8. Other Assets
As of March 31,

Derivatives other than for Trading Assets*1
Accrued Income
Prepaid Expenses
Other
Total

¥

Thousands of U.S. dollars
2009—
296,052
21,351
3,821,104¥ 6,185,988
381,790
18,172
4,398,578$—
3,012,950
217,294
38,887,692¥ 4,138,508¥10,984,529$ 42,117,936*1 While Derivatives other than for Trading Assets was formerly included within Other Assets, it is separately presented in the fiscal year ended March 31, 2009 due to its increased materiality.

9. Tangible Fixed Assets
Millions of yen
2009

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on Sales of Replaced Assets and Others

2008

Thousands of U.S. dollars
2009¥

410,391
283,992
8,678
19,931
119,815¥

395,873274,751—
7,044
125,023$

4,176,592
2,890,217
88,320202,849
1,219,366¥

842,809¥

802,692$

8,577,344¥

747,180
39,365¥

704,635
40,229$7,604,112
400,627

135

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

10. Reserves for Possible Losses on Loans
Millions of yen
2009

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

2008

Thousands of U.S. dollars
2009¥(583,295)(305,694)(589)¥(510,956)(173,423)(84)$(5,936,248)(3,111,074)(5,997)¥(889,579)¥(684,465)$(9,053,319)

Millions of yen
2009

2008

11. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets
Tangible Fixed Assets¥

4,012,042
8,960,855
12,437,626
1,014
297

¥

5,395,565
12,510,007
5,347,130
13,565
133

Thousands of U.S. dollars
2009$

40,830,883
91,195,350
126,578,730
10,326
3,023

The following liabilities were collateralized by the above assets:
Millions of yen
2009

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Borrowed Money¥

643,1962,020,400
2,983,330
3,546,611
7,677,083¥

2008

921,280
2,230,560
5,877,444
6,174,017
2,975,997

Thousands of U.S. dollars
2009$

6,545,859
20,561,775
30,361,597
36,094,153
78,130,300

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others werecollateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥10,205 million ($103,861
thousand) and ¥9,185 million, Trading Assets of ¥502,411 million ($5,113,078 thousand) and ¥421,623 million, Securities of¥2,524,405 million ($25,691,078 thousand) and ¥2,529,793 million as of March 31, 2009 and 2008, respectively, and Loans andBills Discounted of ¥604,444 million as of March 31, 2008. 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 ¥110,982 million ($1,129,475 thousand) and ¥122,807 million as of March 31,
2009 and 2008, respectively, collateral pledged for derivatives transactions of ¥1,237,247 million ($12,591,567 thousand) and¥1,172,978 million as of March 31, 2009 and 2008, respectively, margins for futures transactions of ¥61,079 million ($621,609
thousand) and ¥20,782 million as of March 31, 2009 and 2008, respectively, and other guarantee deposits of ¥8,277 million($84,243 thousand) and ¥13,448 million as of March 31, 2009 and 2008, respectively.
In accordance with JICPA Industry Audit Committee Report No.24, bills re-discounted are accounted for as financing transactions. The face value of these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills amounted to¥972 million ($9,900 thousand) as of March 31, 2009.

136

12. Deposits
Millions of yen
2009

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other

¥

Total

5,694,552
33,451,396
643,823
33,929,588
9,359,479
3,460,179¥¥ 86,539,020

2008

5,122,429
32,780,475
570,449
33,320,074
10,088,721
4,381,890¥ 86,264,041

Thousands of U.S. dollars
2009$

57,953,926
340,437,579
6,552,248
345,304,173
95,252,183
35,214,528$ 880,714,637*1 Ordinary Deposits include savings deposits.

13. Debentures
As of March 31,
IssuerDescription

MHCB

Coupon Debentures

MHBK

Coupon Debentures

MHBK

Millions of yen
2009

2008

0.55%–1.20% 0.35%–1.20%

12,584[2,758]20,033

128,075[28,071]

0.10%–0.56% 0.10%–0.56%

Coupon Debentures(with compound interest)

141,403[29,393]

206,238

1,439,074[299,140]

0.10%–0.56% 0.10%–0.56%

MHBK

Coupon Debentures(saving-type)658,480[93,126]

672,553

6,701,412[947,758]

0.10%–0.66% 0.10%–0.66%

MHBK

Coupon Debentures(saving-type with compound interest)

70,480[12,956]

73,127717,291[131,857]

0.10%–0.66% 0.10%–0.66%

3,159,443$ 23,411,966

2,300,459¥

Interest rates
2009$ 14,426,114[7,343,578]¥

1,417,510[721,580]

2008

2,187,490

Total

¥

Thousands of
U.S. dollars
2009¥

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. Repayments for Debentures are scheduled for the next five years as follows:
Fiscal year ending March 31, 2010 ¥859,814 million ($8,750,404 thousand)2011 ¥889,703 million ($9,054,588 thousand)2012 ¥197,789 million ($2,012,923 thousand)2013 ¥165,306 million ($1,682,334 thousand)2014 ¥187,845 million ($1,911,718 thousand)3. No collateral was provided for the above debentures.

14. Call Money and Bills Sold
Millions of yen
2009

As of March 31,

2008

Thousands of U.S. dollars
2009Call Money
Bills Sold¥

6,449,829—¥

6,693,712—$ 65,640,444
—

Total

¥

6,449,829¥

6,693,712$ 65,640,444

137

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

15. Commercial Paper
Millions of yen
2009

As of March 31,

Commercial Paper

¥

—

¥

2008

30,000

Average interest rates*1
2009
2008

Thousands of U.S. dollars
2009

$

—

—%

0.78%

*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.

16. Borrowed Money
Millions of yen
2009

As of March 31,

Borrowed Money
Bills rediscounted
Other Borrowings*2,3¥

8,941,972
972
8,941,000¥

2008

Thousands of U.S. dollars
2009

4,818,895—
4,818,895$ 91,003,183
9,900
90,993,283

Average interest rates*1
2009
2008

0.56%
2.68%
0.56%

1.09%
—%
1.09%

*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 ¥665,942 million ($6,777,353 thousand) and ¥791,061 million as of March 31, 2009 and 2008, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2010 ¥7,850,020 million ($79,890,291 thousand)2011 ¥ 80,832 million ($ 822,634 thousand)2012 ¥ 81,954 million ($ 834,061 thousand)2013 ¥ 117,608 million ($ 1,196,915 thousand)2014 ¥ 58,458 million ($ 594,932 thousand)

17. Short-term Bonds
Major components of Short-term Bonds at March 31, 2009 were as follows:
Issuer

Issue

MHFG

Jan. 2009–Feb. 2009

MHCB

Jan. 2009–Mar. 2009

MHBK

Millions of yen

Thousands of U.S. dollars

Apr. 2009–
May. 2009

154,400[154,400]

1,571,341[1,571,341]

0.20%–0.74%

Apr. 2009–
Jun. 2009

Mar. 2009

20,000[20,000]

203,542[203,542]

0.17%

Apr. 2009

MHSC

Jan. 2009–Mar. 2009

218,400[218,400]

2,222,675[2,222,675]

0.19%–0.99%

Apr. 2009–
Jun. 2009*1

Jan. 2009–Mar. 2009

21,985[21,985]

223,743[223,743]

0.49%–0.99%

Apr. 2009–
Jun. 2009

428,785$

Due

0.77%–0.80%¥

14,000[14,000]

Interest rates

142,479[142,479]

Total

¥

$

4,363,780*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, 2008 were as follows:
Issuer

Issue

MHFG

Jan. 2008

Millions of yen

Interest rates

20,0000.85%

Apr. 2008

MHCB

Jan. 2008–Mar. 2008

490,000

0.65%–0.80%

Apr. 2008–
Aug. 2008

MHSC

Nov. 2007–Mar. 2008

257,900

0.55%–0.80%

Apr. 2008–
Sep. 2008*1

Nov. 2007–Mar. 2008

19,884

0.54%–0.80%

Apr. 2008–
Jun. 2008

Total

¥

¥

787,784*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.

138

Due

18. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2009 were as follows:
IssuerDescription

Issue

Millions of yen

Thousands of U.S. dollars

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–
Mar. 2009¥ 2,064,368[—]$ 21,009,241[—]

0.00%–
9.00%

Sep. 2010 –Oct. 2038

MHBK

Straight Bonds

Sep. 2004–
Mar. 2009

761,200[—]

7,746,794[—]

0.91%–
4.26%

Sep. 2014 –MHTBStraight Bonds

Mar. 2004–
Mar. 2009

143,900[—]

1,464,482[—]

1.01%–
3.43%

Apr. 2014 –*1Straight Bonds

Jan. 2004–
392,153
Mar. 2004[—](US$3,000,000 thousand)(EUR 750,000 thousand)

3,990,975[—]

4.75%–
8.37%

Apr. 2014 –*2

Straight Bonds

Feb. 1997–
Jun. 2008

203,200[—]

2,067,983[—]

1.03%–
4.35%

Aug. 2010 –*3Straight Bonds

Jul. 1995–
Feb. 2009

456,195[—](US$1,477,274 thousand)(EUR 65,000 thousand)

4,642,743[—]

0.93%–
8.62%

Apr. 2010 –*4Straight Bonds

Feb. 2000–
576,386
Mar. 2009[87,313](US$ 111,042 thousand)(EUR
4,973 thousand)(AUD
520 thousand)

5,865,930[888,592]

0.00%–
20.00%

Apr. 2009 –Jul. 2047¥ 4,597,403$ 46,788,148

Total*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, 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, 2010 ¥ 87,313 million ($ 888,592 thousand)2011 ¥116,145 million ($1,182,027 thousand)2012 ¥689,188 million ($7,013,923 thousand)2013 ¥667,702 million ($6,795,266 thousand)2014 ¥593,176 million ($6,036,810 thousand)4. Bonds and Notes as of March 31, 2009 included subordinated bonds and notes of ¥2,249,622 million ($22,894,594 thousand).
5. No collateral was provided for the above Bonds and Notes.

139

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2008 were as follows:
IssuerDescription

Issue

Millions of yen

Interest rates

Due

MHCB

Straight Bonds

Sep. 1995–
Mar. 2008¥ 1,426,971

0.59%–
3.65%

Sep. 2010 –Jul. 2027

MHBK

Straight Bonds

Sep. 2004–
Jan. 2008

662,500

0.96%–
2.87%

Sep. 2014 –MHTBStraight Bonds

Nov. 2003–
Apr. 2007

162,200

1.01%–
3.31%

Nov. 2013 –*1

Straight Bonds

Jan. 2004–
419,231Mar. 2004(US$3,000,000 thousand)(EUR 750,000 thousand)

4.75%–
8.37%

Apr. 2014 –*2

Straight Bonds

Feb. 1997–
Sep. 2004

208,200

1.36%–
4.35%

Aug. 2010 –*3Straight Bonds

Jul. 1995–
Dec. 2007

513,132

0.93%–
8.62%

Apr. 2010 –

0.00%–
20.00%

Apr. 2008 –Jul. 2047(US$1,488,549 thousand)(EUR 65,000 thousand)*4

Straight Bonds

Feb. 2000–
659,953
Mar. 2008(US$ 125,118 thousand)(EUR
4,920 thousand)(AUD
1,520 thousand)Total¥ 4,052,189*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance (Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated 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, 2009 ¥ 65,472 million
2010 ¥ 84,805 million
2011 ¥129,850 million
2012 ¥682,992 million
2013 ¥682,130 million
3. Bonds and Notes as of March 31, 2008 included subordinated bonds and notes of ¥2,135,234 million.
4. No collateral was provided for the above Bonds and Notes.

19. Other Liabilities
Millions of yen
2009

As of March 31,

Derivatives other than for Trading Liabilities*1
Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*2,3
Other
Total

¥

2008

Thousands of U.S. dollars
2009—
186,709148,165
22,244
18,683
4,244,655¥ 5,633,810
263,371
148,273
28,710—3,720,888$—
1,900,157
1,507,893
226,389
190,147
43,198,201¥ 4,620,459¥ 9,795,054$ 47,022,787*1 While Derivatives other than for Trading Liabilities was formerly included within Other Liabilities, it is separately presented in the fiscal year ended March 31, 2009 due to its increased materiality.
*2 Average interest rate is 3.27% in the fiscal year ended March 31, 2009. It is the weighted-average interest rate of debts calculated from the interest rates and outstanding balances at the end of the
fiscal year.
*3 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2010 ¥7,583 million ($77,179 thousand)2011 ¥4,722 million ($48,060 thousand)2012 ¥2,876 million ($29,275 thousand)2013 ¥1,941 million ($19,754 thousand)2014 ¥ 966 million ($ 9,833 thousand)14020. Reserve for Employee Retirement Benefits(1) MHFG and domestic consolidated subsidiaries adopt the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin Seido”), the Taxqualified Pension Plans (“Tekikaku-Taishoku-Nenkin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”)
as Defined-Benefit Corporate Pension Plans. In addition, MHFG and certain domestic consolidated subsidiaries adopt DefinedContribution Pension Plans. Certain domestic consolidated subsidiaries established employee retirement benefit trusts.
(2) Reserve for Employee Retirement Benefits was reconciled as follows:
Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 1,156,667(998,778)¥ 1,171,273(1,295,219)$ 11,771,498(10,164,646)

Unfunded Projected Benefit Obligations
Unrecognized Actuarial Differences

157,889(680,451)(123,946)(405,558)

1,606,852(6,925,008)

Net Amounts
Prepaid Pension Cost

(522,562)
558,891(529,505)
565,524(5,318,156)
5,687,881

As of March 31,

Projected Benefit Obligations
Plan Assets

Reserve for Employee Retirement Benefits¥

36,329¥36,019$369,725

Notes: 1. The above Projected Benefit Obligations do not include additional retirement benefits paid to employees.
2. The above Projected Benefit Obligations include the amount measured by certain consolidated subsidiaries under the
non-actuarial method.

(3) Breakdown of Employee Retirement Benefit Expenses (Gains) was as follows:
Millions of yen
2009

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 Expenses (Gains) related to Employee Retirement Benefits

2008

Thousands of U.S. dollars
2009¥

21,01828,871(50,991)
62,2438,280¥

22,003
28,910(93,521)
23,355
6,559$

213,908
293,826(518,949)
633,455
84,275¥69,422¥(12,692)$

706,515)

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the non-actuarial method for calculating projected benefit
obligations are included in Service Cost in full.

(4) Assumptions used in calculation of the above information were as follows:
Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periods of Service
Prior Service Cost
Amortization of Unrecognized Actuarial Differences

2009
Mainly 2.5%
Mainly 2.26%5.87%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years

2008
Mainly 2.5%
Mainly 4.3%6.86%
Straight-line basis
Charged to Income(Loss) in the year
Primarily 10-12 years

141Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

21. Stock Options(1) Total amount of stock options expensed were as follows:
Millions of yen
2009

For the Fiscal Years ended March 31,

General and administrative expenses
Total

2008

Thousands of U.S. dollars
2009

¥

1,187

¥

—

$

12,088

¥

1,187

¥

—

$

12,088(2) Outline of stock options and changes
Mizuho Financial Group, Inc.
(i) Outline of stock options
As of March 31, 2009First Series of Stock Acquisition Rights of MHFG

Number of grantees

Directors
Executive Officers
Directors of subsidiaries of MHFG
Executive Officers of subsidiaries of MHFG

4
4
14
71

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

The grantee may exercise the Stock Acquisition Rights which have beenallotted based on his or her capacity as a Director or an Executive Officer
of MHFG, MHBK or MHCB immediately following the date on which suchgrantee loses the status as a Director or an Executive Officer of MHFG,MHBK or MHCB.

Required service period

July 1, 2008 to March 31, 2009

Exercise period

February 17, 2009 to February 16, 2029

5,409,000*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2009First Series of Stock Acquisition Rights of MHFG

Non-vested
As of March 31, 2008—

Granted

5,409,000

Forfeited—

Vested130,000

Outstanding

5,279,000

VestedAs of March 31, 2008—

Vested130,000

Exercised—

Forfeited—

Outstanding

130,000

Note: The above table is shown in number of shares.

(b) Price information
As of March 31, 2009

Exercise price
Average stock price upon exercise
Fair value at grant date

142

First Series of Stock Acquisition Rights of MHFG¥

1 per share—¥ 190.91 per share

(iii) Calculation for fair value of stock options
The fair value of First Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2009 is calculated as follows: Calculation method: The Black-Scholes Model Assumptions used in calculation
As of March 31, 2009First Series of Stock Acquisition Rights of MHFG

Volatility of stock price*1

61.05%

Estimated remaining outstanding period*2

1.78 years

Expected dividend*3¥ 10 per share

Risk-free interest rate*40.379%*1 Historical volatility calculated from MHFG stock prices over the 93 weeks ending on the business day (February 13, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 1.78 years.
*2 The average period of service of directors at MHFG and the subsidiaries of the grantees.
*3 The expected dividend on common stock for the fiscal year ended March 31, 2009.
*4 Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeited in
the future cannot be readily estimated.

Mizuho Trust & Banking Co., Ltd.
(i) Outline of stock options
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Number of grantees

Directors
Executive Officers

720

Number of stock options*1

Common stock

Grant dateFebruary 16, 2009

Condition for vesting

The grantee may exercise the Stock Acquisition Rights which have beenallotted based on his or her capacity as a Director or an Executive Officer
of MHTB immediately following the date on which such grantee loses thestatus as a Director or an Executive Officer of MHTB.

Required service period

July 1, 2008 to March 31, 2009

Exercise period

February 17, 2009 to February 16, 2029

1,695,000*1 Shown in number of shares(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended March 31, 2009Non-vested
As of March 31, 2008

First Series of Stock Acquisition Rights of MHTB—

Granted

1,695,000

Forfeited—

VestedOutstanding
VestedAs of March 31, 2008—
1,695,000—

Vested—Exercised—

Forfeited—

Outstanding—

Note: The above table is shown in number of shares.

143Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Price information
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Exercise price¥

1 per share¥

91.49 per share

Average stock price upon exercise—

Fair value at grant date(iii) Calculation for fair value of stock options
The fair value of First Series of Stock Acquisition Rights of MHTB granted in the fiscal year ended March 31, 2009 is calculated as follows: Calculation method: The Black-Scholes Model Assumptions used in calculation
As of March 31, 2009First Series of Stock Acquisition Rights of MHTB

Volatility of stock price*1

46.19%

Estimated remaining outstanding period*2

1.52 years

Expected dividend*3¥ 1 per share

Risk-free interest rate*40.359%*1 Historical volatility calculated from MHTB stock prices over the 79 weeks ending on the business day (February 13, 2009) prior to the grant date, an interval equivalent to the estimatedremaining outstanding period of 1.52 years.
*2 The average period of service of directors at MHTB
*3 The expected dividend on common stock for the fiscal year ended March 31, 2009 on one business day prior to the grant date of February 13, 2009.
*4 Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeited in
the future cannot be readily estimated.

22. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 3,822,044
100,004
17,769¥ 4,581,251
134,051
18,550$ 38,897,253
1,017,756
180,840¥ 3,939, 818¥ 4,733,852$ 40,095,849

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) amounted to ¥1,282,762 million ($13,054,776 thousand) and ¥1,438,495 million as of March 31,
2009 and 2008, 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 ¥882,035 million ($8,976,544 thousand) and ¥49,756 million ($506,379 thousand) as
of March 31, 2009 respectively, and ¥908,537 million and ¥86,775 million as of March 31, 2008 respectively.

14423. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34, dated March 31, 1998), land used for business operations ofdomestic consolidated banking subsidiaries was revalued on March 31, 1998. In accordance with Article 2, Item 4 of the
Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119, promulgated on March 31, 1998),
the revaluation was performed by the method of calculating the value along with reasonable adjustments, such as for the condition of the land.
The applicable income taxes on the entire excess of revaluation are included in Deferred Tax Liabilities for Revaluation Reservefor Land under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land, net of
Taxes included in Net Assets.
The difference at the consolidated balance sheet date between the total fair value of land for business operation purposes,
which has been revalued in accordance with Article 10 of the above-mentioned law, and the total book value of the land after
such revaluation was ¥123,580 million ($1,257,689 thousand) and ¥114,251 million as of March 31, 2009 and2008, respectively.

24. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2009 and 2008 were as follows:
Number of shares
As of March 31, 2009Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

Per share (Yen)

Issued andInterimYear-end
outstanding cash dividend cash dividend

24,115,759,000 11,178,940,660
1,369,512,000
914,752,000
1,500,000,000
36,690,000

¥

—
—
—

¥

10 ¥
20
30

With
Liquidation Convertible Redemption
value
or notor not

—
1,000
1,000

No
Yes
No

No
No
Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock 11,335 thousand shares
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, 2008
Class of stock

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

Authorized

24,392,259
1,398,500
1,500,000

Per share (Yen)

Issued andInterimYear-end
outstanding cash dividend cash dividend

11,396,254.66
943,740
36,690

¥

—
—
—

With
Liquidation Convertible Redemption
value
or notor not¥ 10,000 ¥—
20,000 1,000,000
30,000 1,000,000

No
Yes
No

No
No
Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock 4 thousand shares
2.The total number of shares of Class XII Preferred Stock, which are authorized to be issued, is 1,500,000.

145

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

25. Interest Income and Interest Expenses
Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 1,367,354
466,785
8,253
36,393
149,001
37,85378,793¥ 1,507,449
671,783
12,84773,783
460,390
46,492
92,049$ 13,915,679
4,750,518
83,998370,380
1,516,397
385,237
801,893¥ 2,144,436¥ 2,864,796$ 21,824,102¥¥$ 4,856,461
179,059
472,166
2,000,273
422,280218
754,056
2,261,798

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

477,195
17,594
46,394
196,546
41,493
21
74,093
222,244709,586
23,74658,020606,806
70,59678
70,255
262,065

Total

1,075,584

1,801,156

10,946,311

Net¥ 1,068,851¥ 1,063,639$ 10,877,791

26. Trading Income and Trading Expenses
Millions of yen
2009

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for Trading Transactions

¥

Total

¥

301,521

Trading Expenses:
Net Losses on Trading Securities
Total
Net

44,334
257,187¥

2008

15,952
233,124

Thousands of U.S. dollars
2009$

249,076

451,194
2,617,419
3,068,613—

192,927——

192,927—¥

56,149$ 3,068,613

Millions of yen
2009

2008

Thousands of U.S. dollars
2009

301,521

27. Other Operating Income
For the Fiscal Years ended March 31,

Gains on Foreign Exchange Transactions
Gains on Sales of Bonds
Other
Total

146

¥

18,013
188,774
52,363¥—
240,196
54,160$183,323
1,921,171
532,910¥259,151¥

294,356$ 2,637,404

28. Other Operating Expenses
Millions of yen
2009

For the Fiscal Years ended March 31,

Loss on Foreign Exchange Transactions
Losses on Sales of Bonds
Losses on Devaluation of Bonds
Amortization of Debenture Issuance Costs
Other

2008

Thousands of U.S. dollars
2009

¥

—
201,705
37,46931
55,896¥110,248
143,6116,869
81
51,284$¥295,102¥

312,094$ 3,003,279

For the Fiscal Year ended March 31, 2009

Millions of yen

Thousands of U.S. dollars

Gains on Sales of Stock
Recovery on Written-off Loans
Gains on Disposition of Fixed Assets
Other

¥

100,688
19,001
2,205
138,673$ 1,024,712
193,382
22,444
1,411,287¥

260,568$ 2,651,825

Total

—
2,052,777
381,326
318
568,858

29. Other Income

Total

Note: Other Income includes profits of ¥72,617 million ($739,032 thousand) related to credit risk mitigation transactions at domestic banking
subsidiaries and a trust banking subsidiary, and gains on derivatives related to stocks and others of ¥32,096 million ($326,645 thousand) atdomestic consolidated banking subsidiaries.
For the Fiscal Year ended March 31, 2008

Millions of yen

Gains on Sales of Stock
Recovery on Written-off Loans
Reversal of Reserves for Possible Losses on Loans
Gains on Disposition of Fixed Assets
Other

¥

343,965
39,83275,779
9,915
110,243$ 3,432,789
397,531756,285
98,955
1,100,239¥

579,737$ 5,785,799

Total

Thousands of U.S. dollars

147

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

30. Other Expenses
For the Fiscal Year ended March 31, 2009

Millions of yen

Impairment Losses of Stocks
Provision for Reserves for Possible Losses on Loans
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Impairment of Fixed Assets
Other

¥

Total

482,163
280,250
272,328
11,155
10,898
223,915

Thousands of U.S. dollars$

4,907,014
2,852,135
2,771,509
113,526
110,915
2,278,803¥ 1,280,711$ 13,033,902

Impairment loss
(Thousands of U.S. dollars)

Notes: 1. Losses on Impairment of Fixed Assets are recognized for the following assets:
Area

Principal purpose of use

Type

Impairment loss
(Millions of yen)—

Idle assets

Software, etc.

¥

—

—

Other

9,211

$

1,687

93,741
17,174

Regarding Software, etc., certain domestic consolidated subsidiaries recognized Losses on Impairment of Fixed Assets for idle assets due todiscontinuance of development of the next generation mainframe computer system. For the purposes of identifying idle assets for which
Losses on Impairment of Fixed Assets have been recognized, the individual asset is assessed as a unit. The recoverable amount is calculated
based on net realizable value. The net realizable value is evaluated with a realizable value of zero.
2. Other Expenses includes an amount of ¥10,828 million ($110,205 thousand) resulting from the adoption of accounting standards for leasetransactions mentioned in “3. Summary of Significant Accounting Policies (23) Lease Transactions.”
For the Fiscal Year ended March 31, 2008

Millions of yen

Impairment Losses of Stocks
Write-offs of Loans
Losses on Disposition of Fixed Assets
Losses on Impairment of Fixed Assets
Provision for Reserve for Contingent Liabilities from Futures Transactions
Amortization of Goodwill of Securities Subsidiary
Other

¥

102,621
128,089
8,215
2,698
0
25,715362,739$

1,024,164
1,278,335
81,987
26,9306
256,638
3,620,158¥

630,079$

6,288,218

Total

Thousands of U.S. dollars

Note: Other Expenses includes a loss of ¥95,289 million incurred in relation to receipt of securitized products as a substitution payment of loans
provided by the Group's domestic banking subsidiary to an overseas ABCP conduit, provision for Reserve for Possible Losses on Future Salesof Loans of ¥50,895 million, provision for Reserve for Possible Losses on Investments of ¥45,939 million, related with the discontinuation ofbusiness regarding credit investments primarily in Europe which was made as an alternative to loans by the Group's domesticbanking subsidiary.

31. Cash Flows(1) Cash and Cash Equivalents on the consolidated statements of cash flows reconciles to Cash and Due from Banks on the consolidated balance sheets as follows:

As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding due from Central Banks
Cash and Cash Equivalents

Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 5,720,253(671,581)¥ 3,483,802(1,428,009)$ 58,215,482(6,834,739)¥ 5,048,671¥ 2,055,793$ 51,380,743(2) While Decrease (Increase) in Derivatives other than for Trading Assets and Increase (Decrease) in Derivatives other than for
Trading Liabilities were formerly included within Other in Cash Flow from Operating Activities, they are separately presented
from the fiscal year ended March 31, 2009 due to their increased materiality.
Decrease (Increase) in Derivatives other than for Trading Assets and Increase (Decrease) in Derivatives other than for Trading
Liabilities included within Other in Cash Flow from Operating Activities as of March 31, 2008 were ¥(3,516,808) million and¥2,635,513 million, respectively.

14832. Lease Transactions(1) For the fiscal year ended March 31, 2009
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 “3. Summary of Significant Accounting Policies (10)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:
As of March 31, 2009

Millions of yen

Due in One Year or Less
Due after One Year

¥

Total

Thousands of U.S. dollars

39,529130,461$

402,291
1,327,716¥ 169,990$ 1,730,007

As of March 31, 2009

Millions of yen

Thousands of U.S. dollars

Due in One Year or Less
Due after One Year

¥

1,479
7,826

$

15,052
79,655

¥

9,305

$

94,707

Lessors:

Total(2) For the fiscal year ended March 31, 2008
Finance Leases (Lessees)
The Acquisition Cost Equivalents, Accumulated Depreciation Equivalents and Book Value Equivalents relating to finance leasetransactions accounted for as operating leases were summarized as follows:
Millions of yen

As of March 31, 2008

Equipment

Others

Total

Acquisition Cost Equivalents
Accumulated Depreciation Equivalents¥

46,15433,693¥

2,105 ¥
1,319

48,26035,013

Book Value Equivalents¥

12,461¥786 ¥

13,247

Future lease payments subsequent to the end of the fiscal year for finance lease transactions accounted for as operating leases(including the interest portion thereon) were summarized as follows:
As of March 31, 2008

Due in One Year or Less
Due after One Year
Total

Millions of yen

8,397

¥

8,397
14,601

22,999¥22,999149

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Lease Expense, Depreciation Equivalents and Interest Expense Equivalents relating to finance lease transactions accounted for as
operating leases were summarized as follows:
As of March 31, 2008

Lease Expense
Depreciation Equivalents
Interest Expense Equivalents

Millions of yen

—

¥

8,854
7,516
777

Notes: 1. The method for computing the amount of Depreciation Equivalents is as follows:
Depreciation equivalents are calculated by the declining-balance method, computed by multiplying the amounts by 10/9, which itself iscomputed assuming that the useful life is the lease term and that the residual value at the end of the lease term is 10% of theacquisition cost.
2. The method for computing the amount of Interest Expense Equivalents is as follows:
The amounts are defined as the difference between total lease payments and acquisition cost equivalents, which are allocated over thelease term by the interest method.

Operating Leases
The future lease payments subsequent to the end of the fiscal year for operating lease transactions were summarized as follows:
Lessees:
As of March 31, 2008

Due in One Year or Less
Due after One Year
Total

Lessors:

None

150

Millions of yen

41,074¥

41,074
134,702

175,776¥

175,776

33. Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2009

2008

Thousands of U.S. dollars
2009¥ 1,127,856
712,060
427,366
195,746
630,431¥ 1,323,244
515,968
312,021
190,596351,470$ 11,478,290
7,246,695
4,349,338
1,992,132
6,415,952

3,093,461(2,006,402)

2,693,300(1,501,783)

31,482,407(20,419,319)¥ 1,087,059¥ 1,191,517$ 11,063,088¥(202,707))(24,591)(145,085)¥(206,397)(214,192)(174,361)$ (2,062,975)))(250,266)(1,476,545)¥(372,384)¥(594,951)$ (3,789,786))¥

714,674¥596,566$

Millions of yen
2009

2008

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

7,273,302

Balances reported on the Consolidated Balance Sheets:
As of March 31,

Thousands of U.S. dollars
2009

Deferred Tax Assets
Deferred Tax Liabilities¥

722,160(7,486)¥607,920(11,354)$

7,349,489(76,187)

Net Deferred Tax Assets¥

714,674¥596,566$

7,273,302

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 ¥1,431,351 million ($14,566,978 thousand) and ¥1,079,359 million as of March 31, 2009 and 2008, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax assets in the above table
and in the balance sheets exclude the equivalent amount of deferred tax assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.

For the fiscal year ended March 31, 2008, the reconciliation of the statutory tax rate of MHFG to the effective income tax rate
was as follows:
For the Fiscal Year ended March 31, 2008

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends Received)
Tax Rate Differences between the Consolidated Subsidiaries
Amortization of Goodwill
Other

40.69)%(15.90)(4.01)
7.28
2.31
0.64

Effective Income Tax Rate

31.01)%

Note: For the fiscal year ended March 31, 2009, the reconciliation of the statutory tax rate of MHFG to the effective income tax rate is not stated as
MHFG recorded Loss before Income Taxes and Minority Interests.

151

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

34. Segment Information(1) Segment Information by Type of Business
Segment information by type of business as of or for the fiscal years ended March 31, 2009 and 2008 was as follows:
Millions of yen

2009Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business ¥ 3,065,295 ¥ 36,760 ¥ 3,102,055 ¥ 3,488,527 ¥ (386,471) ¥ 137,103,996 ¥ 125,863 ¥Securities Business
318,234
56,924375,158
396,578(21,420)
17,536,259
11,641
Other
130,899
151,470
282,370
263,456
18,913881,674
5,171

1,679 ¥ 189,924
9,218
8,638
—
22,491

Total
Elimination

10,898—3,514,428—

Consolidated
Results¥ 3,514,428 ¥

245,155(245,155)

3,759,584(245,155)

4,148,562(239,001)(388,978)(6,153)

155,521,931(2,798,860)

142,676—

221,054—— ¥ 3,514,428 ¥ 3,909,560 ¥ (395,131) ¥ 152,723,070 ¥ 142,676 ¥ 10,898 ¥ 221,054
Millions of yen

2008
Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business ¥ 3,950,412 ¥ 38,719 ¥ 3,989,132 ¥ 3,215,067 ¥ 774,064 ¥ 136,224,235 ¥ 118,034 ¥Securities Business
428,488
88,094
516,583
917,178(400,595)
22,359,454
10,938
Other
144,609140,531
285,141
255,372
29,7681,070,089
3,747

2,591 ¥ 166,150
430,819102
17,940Total
Elimination

2,698
—

4,523,510—

Consolidated
Results¥ 4,523,510 ¥

267,345(267,345)

4,790,856(267,345)

4,387,618(261,228)

403,237(6,117)— ¥ 4,523,510 ¥ 4,126,390 ¥ 397,120

159,653,779(5,241,674)

132,721—¥ 154,412,105 ¥ 132,721 ¥

214,910—

2,698 ¥ 214,910
Thousands of U.S. dollars

2009Type of Business

Ordinary Income Inter-segmentfrom Outside
Ordinary
Customers
IncomeOrdinary
IncomeOrdinary
Expenses

Ordinary
Profits(Losses)

Losses on
Depreciation Impairment of
Total Assets
Expense Fixed Assets

CapitalExpenditure

Banking Business $31,195,758 $ 374,116 $31,569,874 $35,503,023 $(3,933,149) $1,395,318,511 $1,280,922 $ 17,093 $1,932,877
Securities Business 3,238,695
579,320 3,818,015 4,036,016(218,001)
178,467,937
118,481
93,822
87,911Other
1,332,174 1,541,532 2,873,706 2,681,217
192,489
8,972,875
52,631—
228,903
Total
Elimination

35,766,627 2,494,968 38,261,595 42,220,256 (3,958,661)— (2,494,968) (2,494,968) (2,432,339)(62,629)

Consolidated
Results$35,766,627 $

1,582,759,323 1,452,034(28,484,227)—

110,915 2,249,691——— $35,766,627 $39,787,917$(4,021,290) $1,554,275,096 $1,452,034 $ 110,915 $2,249,691

Notes: 1. The above table shows Ordinary Income and Ordinary Profits instead of Sales and Operating Profits, respectively, of non-financial
companies.
2. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain special
expenses.
3. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
4. Major components of type of business are as follows: (1) Banking Business: banking and trust banking business (2) Securities Business:securities business (3) Other: investment advisory business and others
5. In the fiscal year ended March 31, 2008, in accordance with the revision of the Corporate Tax Law of 2007, depreciation of the tangible
fixed assets acquired on or after April 1, 2007 is computed by the procedure stipulated in the revised law. As for the tangible fixed assets
acquired before April 1, 2007 and depreciated to their allowable limit for depreciation, their salvage values are depreciated using thestraight-line method in the following five fiscal years.
6. As “Accounting Standard for Lease Transactions” (ASBJ Statement No.13, March 30, 2007) and “Guidance on Accounting Standard forLease Transactions” (ASBJ Guidance No.16) are applied from the fiscal year beginning on or after April 1, 2008, MHFG has applied the
new accounting standard and guidance beginning with this fiscal year. Although MHFG accounted for finance leases that do not involve
transfer of ownership to lessee as operating leases, by this application, MHFG accounts for them as normal trade transactions, including
the transactions that started before the end of fiscal 2007. The amount of cumulative effect until the end of fiscal 2007 on Income before
Income Taxes and Minority Interests is recorded in Extraordinary Losses. As a result, Total Assets increased by ¥7,047 million ($71,718
thousand), ¥42 million ($434 thousand) and ¥2,926 million ($29,783 thousand), for Banking Business, Securities Business and Other,respectively, compared with the corresponding amounts under the previously applied method.

152

(2) Segment Information by Geographic Area
Segment information by geographic area as of or for the fiscal years ended March 31, 2009 and 2008 was as follows:
Millions of yen

2009
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeOrdinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 2,606,492
378,876
344,862
184,196¥ 100,740
117,395
30,1571,303

3,514,428—

Total
Elimination
Consolidated Results

Ordinary
Expenses

Ordinary
Profits(Losses)

Total Assets¥ 2,707,233
496,271375,019
185,500¥ 3,113,927 ¥
398,604
479,813
154,037(406,693)
97,667(104,794)
31,462¥ 134,548,321
19,984,988
11,484,089
6,779,411

249,596(249,596)

3,764,025(249,596)

4,146,383(236,822)(382,358)(12,773)

172,796,812(20,073,741)—¥ 3,514,428¥ 3,909,560 ¥(395,131)¥ 152,723,070

Ordinary
Expenses

Ordinary
Profits(Losses)

Total Assets¥ 3,514,428¥

2008
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan¥ 3,301,156
642,019368,397
211,937¥

Millions of yen

Total
Elimination
Consolidated Results

4,523,510—

Ordinary
Income39,867
174,985
61,8752,232¥ 3,341,023
817,004
430,273
214,170¥ 2,659,266 ¥
783,432
784,035
167,553

681,756
33,571(353,761)
46,616¥ 135,347,671
18,913,933
13,830,061
7,092,483

278,960(278,960)

4,802,471(278,960)

4,394,287(267,897)

408,183(11,063)

175,184,150(20,772,044)—¥ 4,523,510¥ 4,126,390 ¥

397,120¥ 154,412,105

Ordinary
Expenses

Ordinary
Profits(Losses)¥ 4,523,510¥

2009
Geographic Area

Ordinary Income
from Outside
Customers

Inter-segment
Ordinary
IncomeJapan
Americas
EuropeAsia / Oceania excluding Japan$ 26,526,490
3,855,860
3,509,689
1,874,588$ 1,025,247 $ 27,551,737 $ 31,690,693 $ (4,138,956) $1,369,309,199
1,194,740
5,050,600
4,056,631
993,969
203,388,853
306,913
3,816,602
4,883,100(1,066,498)
116,874,515
13,261
1,887,849
1,567,656
320,193
68,994,624

Thousands of U.S. dollars

Total
Elimination
Consolidated Results

35,766,627—$ 35,766,627

2,540,161(2,540,161)$

Ordinary
Income38,306,788(2,540,161)

42,198,080(2,410,163)(3,891,292)(129,998)

Total Assets

1,758,567,191(204,292,095)— $ 35,766,627 $ 39,787,917 $ (4,021,290) $1,554,275,096

Notes: 1. The above table shows Ordinary Income and Ordinary Profits instead of Sales and Operating Profits, respectively, of non-financial
companies.
2. Ordinary Income represents Total Income less certain special income, and Ordinary Expenses represent Total Expenses less certain
special expenses.
3. Ordinary Profits represent Ordinary Income less Ordinary Expenses.
4. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations.
5. Americas includes the United States of America and Canada. Europe includes the United Kingdom. Asia / Oceania includes Hong Kongand the Republic of Singapore.
6. With respect to the credit investments in securitization products made as an alternative to loans by the European, North American and otheroffices of our domestic consolidated banking subsidiaries, we had previously applied as fair value the valuations obtained from brokers andinformation vendors based on our determination that such valuations constitute reasonably calculated prices that can be used as a proxy formarket prices. Given the current situation in which the volume of actual transactions is extremely limited and there exists a considerable gap
between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be
deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value
for the year ended March 31, 2009. As a result, Total Assets increased in Japan, Americas, and Europe by ¥22,040 million ($224,306
thousand), ¥17,479 million ($177,885 thousand), and ¥104,767 million ($1,066,229 thousand), respectively. Ordinary Income increased inEurope by ¥416 million ($4,239 thousand), and Ordinary Expenses decreased in Japan, Americas, and Europe by ¥6,814 million ($69,348
thousand), ¥589 million ($6,000 thousand), and ¥99,558 million ($1,013,215 thousand), respectively. Ordinary Profits increased in Americasby ¥589 million ($6,000 thousand), and Ordinary Losses decreased in Japan and Europe by ¥6,814 million ($69,348 thousand) and ¥99,975
million ($1,017,454 thousand), respectively.

153

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(3) Ordinary Income from Overseas Entities
Ordinary Income from Overseas Entities for the fiscal years ended March 31, 2009 and 2008 consisted of the following:
Millions of yen
2009

For the Fiscal Years ended March 31,

Ordinary Income of Overseas Entities
Total Ordinary Income¥

Ordinary Income of Overseas Entities' Ratio

2008

907,935
3,514,428¥ 1,222,354
4,523,510

25.8%

27.0%

Thousands of U.S. dollars
2009$

9,240,137
35,766,627/

Notes: 1. The above table shows Ordinary Income of Overseas Entities instead of Sales of Overseas Entities of non-financial companies.
2. Ordinary Income of Overseas Entities represents Ordinary Income recorded by overseas branches of MHCB and other overseas subsidiaries
excluding Inter-segment Ordinary Income.
3. Segment information on Ordinary Income from overseas entities is not presented as no such information is compiled.

35. Related Party
Effective the year ended March 31, 2008, MHFG has adopted “Accounting Standard for Related Party Disclosures” (ASBJ
Statement No.11) and “Guidance on Accounting Standard for Related Party Disclosures” (ASBJ Guidance No.13) issued on
October 17, 2006 earlier than the effective date as permitted.
For the fiscal years ended March 31, 2009 and 2008;
 There are no material additions to the current scope subject to disclosure.
 There are no material transactions with related parties to be reported pursuant to the standard and its guidance.
 There are no applicable information on the parent company and on the selected financial statements of important relatedcompanies.

36. Special Purpose Entities Subject to Disclosure
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
25 and 27 special purpose entities (mainly incorporated in the Cayman Islands) in their borrowings and fund raising bycommercial paper in order to support securitization of monetary assets of customers as of March 31, 2009 and 2008,
respectively. The aggregate assets and aggregate liabilities of these 25 and 27 special purpose entities at the latest closing dateamounted to ¥2,984,889 million ($30,377,467 thousand) and ¥2,984,039 million ($30,368,814 thousand) as of March 31,
2009 respectively, and ¥3,221,671 million and ¥3,220,723 million as of March 31, 2008 respectively. MHBK, MHCB and MHTB
do not own any shares with voting rights in any of these special purpose entities and have not dispatched any director or
employee to them.
Major transactions with these special purpose entities subject to disclosure as of or for the fiscal years ended March 31, 2009 and2008 are as follows:
Millions of yen
2009

As of March 31,

Loans
Credit and Liquidity Facilities¥ 2,051,070
543,269

154

Thousands of U.S. dollars
2009¥ 2,186,649
1,002,696$ 20,873,915
5,528,898

Millions of yen
2009

For the Fiscal Years ended March 31,

Interest Income on Loans
Fee and Commission Income, etc.

2008

¥

23,612
3,468

¥

2008

27,002
2,950

Thousands of U.S. dollars
2009$

240,304
35,298

37. Subsequent Events(i) Mizuho Securities Co., Ltd. (“former MHSC”), MHFG's consolidated subsidiary, and Shinko Securities Co., Ltd. (“Shinko”),
accounted for under the equity method, signed a merger agreement following the resolutions of respective board meetings on
March 4, 2009. Upon the approval of the merger agreement at the respective general shareholders meetings held on April 3,
2009, the merger (“Merger”) took effect on May 7, 2009.
(1) Name of the acquired company, business type, major reasons for the combination, date of the combination, legal form of
the combination, name of the company after the combination and grounds for determination of the acquiring company
Name of the acquired company
Shinko Securities Co., Ltd.
Business type
Financial Instruments Business
Major reasons for the combination
It was determined that it is necessary as a member of the Mizuho Financial Groupto leverage Shinko's strength as a securities arm of a banking institution, to be
more competitive in a market where there is now greater uncertainty, to improve
our service providing-capabilities to our clients and furthermore to reestablish ourbusiness to enable us to offer competitive cutting-edge financial services on a
global basis.
Date of the combination
May 7, 2009
Legal form of the combination
Shinko is the surviving entity, and the former MHSC is the absorbed entity.
Name of the company after
Mizuho Securities, Co., Ltd.
the combination
Grounds for determination of
As Mizuho Corporate Bank, Ltd., a shareholder of the former MHSC which is thethe acquiring company
legal absorbed entity, holds over half of the new company's voting rights as aresult of the Merger, the former MHSC is the acquiring company and Shinko is theacquired company under the accounting standards for business combination.
(2) Merger ratio, calculation method and number of new shares to be issued(A)Merger ratio
Company Name
Shinko (surviving entity)
Former MHSC (absorbed entity)
Merger Ratio
1
122(B) Calculation method of merger ratio
For the sake of fairness in calculating the merger ratio, Shinko and the former MHSC appointed a third-party for valuations respectively. Both companies made the final determination of the validity of the merger ratio based on the careful
exchange of views between the two companies, taking into account the financial and asset situation of the two companies and other factors in a comprehensive manner.
(C)Number of new shares to be issued
Shares of common stock: 815,570 thousand shares(ii) The Board of Directors of MHFG resolved on May 15, 2009 to issue new shares and MHFG filed a Shelf Registration Statementwith the Kanto Local Finance Bureau for the issuance of new shares as set forth below:(1) Type of Securities to be Offered: Common Stock of MHFG
(2) Planned Issuance Period:
Within one year commencing from the effective date of the Shelf Registration Statement(From May 23, 2009 until May 22, 2010)(3) Offering Method: Public Offering in Japan(4) Planned Amount of Issuance: Up to ¥600 billion(5) Use of Proceeds: To be invested in consolidated subsidiaries of MHFG
(6) Planned Principal Underwriters:
Mizuho Securities Co., Ltd. (5-1 Otemachi 1-chome, Chiyoda-ku, Tokyo)
Nomura Securities Co., Ltd. (9-1 Nihonbashi 1-chome, Chuo-ku, Tokyo)
JP Morgan Securities Japan Co., Ltd. (7-3 Marunouchi 2-chome, Chiyoda-ku, Tokyo)
Merrill Lynch Japan Securities Co., Ltd. (4-1 Nihonbashi 1-chome, Chuo-ku, Tokyo)

155

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii)The Board of Directors of MHFG resolved on May 15, 2009 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) Limited(2) Type of Securities: Non-cumulative Perpetual Preferred Securities(3) Aggregated Redemption Amount: ¥176,000 million(4) Scheduled Redemption Date: June 30, 2009
(5) Reason for the Redemption: Arrival of optional redemption date(iv)MHFG determined on June 23, 2009 the terms of the preferred securities announced in the “Announcement regarding
Establishment of Overseas Special Purpose Subsidiaries and Issuance of ‘Non-Dilutive’ Preferred Securities” dated May 15,
2009 as set forth below. Additional issuance may be made by MHFG's overseas special purpose subsidiaries established on
May 15, 2009 (Mizuho Capital Investment (JPY) 5 Limited, Mizuho Capital Investment (JPY) 6 Limited, and Mizuho Capital
Investment (JPY) 7 Limited).
(1) Issuer: Mizuho Capital Investment (JPY) 5 Limited(an overseas special purpose subsidiary established in the Cayman Islands, the voting rights of which are wholly owned
by MHFG)(2) Type of Securities: Non-cumulative Perpetual Preferred Securities(3) Total Amount Issued: ¥139,500 million ($1,419,702 thousand)(4) Dividend rate: 4.26% annually
Dividend rate is fixed until June 2014, and after which it is floating (non step-up).
(5) Planned Issued Date: June 30, 2009(v) MHBK, which is our consolidated subsidiary, resolved in its board of directors' meeting held on May 15, 2009 to submit thefollowing proposals to the general meeting of shareholders of its own to be held on June 24, 2009.
Both proposals were approved at the general meeting of shareholders of MHBK held on June 24, 2009.
(1) Reduction of Capital Reserve
In accordance with Article 448, Paragraph 1 of the Company Law, MHBK decreased the Capital Reserve and transferred thesame amount to Other Capital Surplus in order to ensure a sufficient source for future distributable amounts.
(A)The manner and amount of decrease in Capital Reserve
MHBK reduced Capital Reserve by ¥321,638 million ($3,273,340 thousand) out of the total amount of ¥762,345 million($7,758,455 thousand) and transferred the same amount to Other Capital Surplus.
(B) Effective dateJune 24, 2009
(2) Disposition of Surplus
In accordance with Article 452 of the Company Law, MHBK transferred a part of Other Capital Surplus, which wasincreased as stated in (1), to Retained Earnings Brought Forward for disposition of loss.
(A)The amount of decrease in Surplus
Other Capital Surplus: ¥130,913 million ($1,332,312 thousand)(B) The amount of increase in Surplus
Retained Earnings Brought Forward: ¥130,913 million ($1,332,312 thousand)As a result, on our consolidated balance sheet, Capital Surplus decreased by ¥130,913 million ($1,332,312 thousand) andRetained Earnings increased by the same amount.

156

38. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities in “Trading Assets,” Negotiable Certificates of
Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased,” certain items in “Other Assets,” and “Money
Held in Trust.”
Millions of yen

As of March 31, 2009

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*1:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust:
Other Money Held in Trust

Gross unrealized
Gains

Acquisition cost¥

179,134
50,038
11,189117,905
29,713,766
2,788,982
19,496,081
18,531,864
68,896—895,321
7,428,701
4,500,549
1,939,919
988,232

¥

1,316

1,571
101
3
1,466
393,202*2
284,982
43,69841,624715—
1,358
64,52152,751
2,723
9,047

¥

—

Losses————902,827*2
468,683
32,17917,622219—
14,337
401,964
135,391
28,760237,812Fair value¥

49

180,705
50,14011,193
119,372
29,204,140
2,605,281
19,507,600
18,555,865
69,392—
882,341
7,091,258
4,417,909
1,913,882
759,467
1,266
Millions of yen

As of March 31, 2008

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*1:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust:
Other Money Held in Trust

Gross unrealized
Gains

Acquisition cost¥

778,813489,92148,547240,344
31,898,991
3,149,964
17,557,001
16,321,913
67,4395,997
1,161,650
11,192,025
7,524,572
2,427,346
1,240,107
1,507

¥

5,018
204
15
4,799
1,286,586*2
1,188,056
21,603
15,813966—
4,823
76,926
48,747
8,910
19,268—¥Losses60
47
12—608,706*2
211,328
119,715
115,152206
04,355
277,661
114,006
8,757
154,898
6

Fair value¥

783,771490,078
48,549245,143
32,576,871
4,126,691
17,458,889
16,222,574
68,198
5,997
1,162,118
10,991,290
7,459,314
2,427,498
1,104,476
1,500

157

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

As of March 31, 2009

Gross unrealized
Gains

Acquisition cost

Bonds Held-to-Maturity:
Japanese Government Bonds
Japanese Local Government Bonds
Other
Other Securities*1:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust:
Other Money Held in Trust$

1,823,061
509,251
113,876
1,199,934
302,399,410
28,383,702
198,413,207
188,600,287
701,165—
9,111,755
75,602,501
45,802,460
19,742,722
10,057,319$

15,9901,028
37
14,9254,001,651*2
2,900,292
444,719423,611
7,283—
13,825
656,640
536,853
27,71392,074

13,395$Losses————9,188,150*2
4,769,834
327,492
179,345
2,232—
145,915
4,090,824
1,377,894
292,698
2,420,232—

Fair value$

506

1,839,051
510,279
113,913
1,214,859
297,212,911
26,514,160
198,530,434
188,844,553
706,216—
8,979,665
72,168,317
44,961,420
19,477,737
7,729,160
12,889*1 The fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date. The fair value of
securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.
*2 Unrealized Gains (Losses) include ¥62,770 million ($638,820 thousand) and ¥37,202 million which were recognized in the statements of income for the fiscal years ended March 31, 2009 and 2008,
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 are as follows:
Millions of yen
2009
As of March 31,

Fair value

Trading Securities
Money Held in Trust for Investment¥ 7,718,927
39,4262008

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)¥ (40,544)) ¥10,004,618—
31,326¥ (10,143)—

Thousands of U.S. dollars
2009
Unrealized
Fair value
gains (losses)$ 78,556,155
401,251$ (412,623))—

2. In addition to the balances shown in the above table, Other Securities included securities which do not have readily determinable fairvalues such as follows:
As of March 31, 2009

As of March 31, 2008

Non-publicly offered bonds
Unlisted stocks
Unlisted foreign securities
Other
Non-publicly offered bonds
Unlisted stocks
Unlisted foreign securities
Other¥1,820,998 million ($18,532,449 thousand)¥ 416,288 million ($ 4,236,606 thousand)¥ 345,015 million ($ 3,511,253 thousand)¥ 249,358 million ($ 2,537,741 thousand)¥1,912,519 million¥ 427,849 million¥ 554,581 million¥ 262,756 million

3. In the fiscal year ended March 31, 2008, Net Unrealized Gains/Losses on Other Securities, net of Taxes have been receiving greater focus
because of the considerable change in the market circumstances these days, and the values of securities deemed as market prices such as
those obtained from brokers and financial information vendors have been more available. Hence, taking into account the convergence of
global accounting standards, if the values deemed as market prices could be obtained by the reasonable estimate, Other Securities
formerly measured at acquisition cost as securities without fair values are measured at such values. This valuation is included in JapaneseCorporate Bonds (acquisition cost: ¥395,581 million, amount on consolidated balance sheets: ¥394,937 million), Foreign Bonds(acquisition cost: ¥760,726 million, amount on consolidated balance sheets: ¥711,421 million), and Other Debt Purchased (acquisition
cost: ¥2,427,346 million, amount on consolidated balance sheets: ¥2,427,498 million).
(Additional Information)
4. For Floating-rate Japanese Government Bonds within Securities, our domestic consolidated banking subsidiaries and some of domestic
consolidated trust banking subsidiaries had been applying market prices to establish book value. Based on our determination that current
market prices may not reflect fair value due to the extremely limited volume of actual transactions, we have applied reasonably calculated
prices as book value from the fiscal year ended March 31, 2009. As a result, compared to applying market price as book value, Securities
increased by ¥97,748 million ($994,790 thousand), Deferred Tax Assets decreased by ¥7,488 million ($76,215 thousand), Net Unrealized
Losses on Other Securities, net of Taxes decreased by ¥85,946 million ($874,686 thousand) and Minority Interests increased by ¥4,312
million ($43,889 thousand) on the consolidated balance sheet as of March 31, 2009. In deriving the reasonably calculated price, we usedthe discount cash flow method as well as other methods. The price decision variables include the yield of 10-year Japanese government
bonds and the volatilities of interest rate swap options for 10-year Japanese government bonds as underlying assets.

158

5. With respect to the credit investments in securitization products made as an alternative to loans by the European, North American andother offices of our domestic consolidated banking subsidiaries, we had previously applied as fair value the valuations obtained frombrokers and information vendors based on our determination that such valuations constitute reasonably calculated prices that can be used
as a proxy for market prices. Given the current situation in which the volume of actual transactions is extremely limited and there exists a
considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information
vendors cannot be deemed to be the fair value, and we have applied reasonably calculated prices based on the reasonable estimates ofour management as fair value from the fiscal year ended March 31, 2009. As a result, Securities increased by ¥144,286 million($1,468,420 thousand), and Net Unrealized Losses on Other Securities, net of Taxes decreased by ¥36,908 million ($375,618 thousand)on the consolidated balance sheet as of March 31, 2009. In addition, Other Operating Income increased by ¥416 million ($4,239
thousand), Other Operating Expenses decreased by ¥52,883 million ($538,199 thousand), losses due to the discontinuation of businessregarding credit investments primarily in Europe in Other Expenses decreased by ¥54,078 million ($550,364 thousand), which led to adecrease in Loss before Income Taxes and Minority Interests of ¥107,378 million ($1,092,802 thousand) on the consolidated statement ofincome for the fiscal year ended March 31, 2009. The book value that was reasonably calculated based on the reasonable estimates ofour management mentioned above is ¥515,199 million ($5,243,223 thousand). In deriving reasonably calculated prices based on thereasonable estimates of our management mentioned above, we used the discounted cash flow method. The price decision variables
include default rates, recovery rates, pre-payment rates, and discount rates, and the subject Securities included residential mortgagebacked securities, collateralized loan obligations, commercial mortgage-backed securities, and other asset-backed securities.

Projected Redemption Amounts for Bonds Held to Maturity and Other Securities with Maturity
Millions of yen

As of March 31, 2009

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

Within 1 year

1–5 years

5–10 years

Over 10 years¥

7,849,559
7,444,207
14,827—
390,523
1,424,358¥

9,779,741
8,189,100
33,790—1,556,850
2,499,197¥

2,097,514
1,631,256
31,499—434,758
1,009,276¥

1,663,012
1,341,339
1,053—
320,618
1,903,382¥

9,273,917¥ 12,278,938¥

3,106,791¥

3,566,395

Within 1 year

1–5 years

Millions of yen

As of March 31, 2008

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

¥

8,962,093
8,485,205
47,0495,997
423,841
1,213,128¥

5–10 years

Over 10 years

7,134,763
5,518,927
37,362—
1,578,473
4,733,116¥

1,905,074
1,234,163
27,849—643,060
1,877,175¥

1,907,946
1,474,199
7,801—
425,9442,849,376¥ 10,175,222¥ 11,867,879¥

3,782,249¥

4,757,322

Within 1 year

1–5 years

5–10 years

Over 10 years$ 79,885,600
75,760,309
150,901—
3,974,390
14,495,810$ 99,529,221
83,341,144
343,887—
15,844,190
25,434,533$ 21,346,579
16,601,428
320,576—
4,424,575
10,271,489$ 16,924,611
13,650,924
10,722—
3,262,965
19,370,882$ 94,381,410$124,963,754$ 31,618,068$ 36,295,493

Thousands of U.S. dollars

As of March 31, 2009

Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Other
Total

159

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Other Securities Sold during the Fiscal Year
Millions of yen

Proceeds
from sales

For the Fiscal Years ended March 31,

Other Securities

2009
Total amountof gains
on sales¥ 57,319,232 ¥Total amountof losses
on sales

289,020 ¥

226,218

Proceeds
from sales

2008
Total amountof gains
on sales¥ 67,364,166 ¥584,138

Total amountof losses
on sales¥ 140,224

Thousands of U.S. dollars

Proceeds
from sales

For the Fiscal Year ended March 31,

Other Securities

2009
Total amountof gains
on salesTotal amountof losses
on sales$583,342,483 $ 2,941,383 $ 2,302,240

Net Unrealized Gains/Losses on Other Securities
Net Unrealized Gains/Losses on Other Securities as of March 31, 2009 and 2008 are as follows:
As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Other Money Held in Trust

Millions of yen
2009¥ (573,437)(573,387)
(49)

¥

2008

Thousands of U.S. dollars
2009

640,580
640,587(6)$ (5,835,916)(5,835,410)(506)

Deferred Tax Assets
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes

59,225—(514,211)—
206,580
433,999602,747—(5,233,169)

Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains (Losses) on Other
Securities Owned by Affiliated Companies, which Corresponds
to the Shareholdings of Their Investor Companies
Net Unrealized Gains (Losses) on Other Securities, net of Taxes

3,493

35,08935,555(1,869)2,465(19,028)

401,375$ (5,287,752)¥ (519,574)¥*1 The difference between acquisition cost and fair value excludes ¥62,770 million ($638,820 thousand) and ¥37,202 million which were recognized in the statements of income for the fiscal years ended
March 31, 2009 and 2008, 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.

16039. Derivatives Information(1) Risk Control for Derivatives(a) Details of Derivative Financial Products
The Group transacts primarily in the following derivative financial products:(i) Interest rate-related products
Swaps, interest rate guarantees (FRA options), futures, futures options, and options(ii) Currency-related products
Futures, futures options, options, swaps, and forward trading(iii) Stock-related products
Index futures, index futures options, and over-the-counter options(iv) Bond-related products
Futures, futures options, and over-the-counter options(v) Other products
Credit derivatives, commodity derivatives, weather derivatives, etc.
(b) Purposes of Using Derivative Financial Products
The Group uses derivative financial products in response to the diverse needs of customers, to control the risk related to theassets and liabilities of the Group, as part of its asset and liability management (“ALM”), and for trading purposes.
To control the risk related to assets and liabilities, the Group primarily utilizes portfolio hedges, grouping numerous financial
assets and liabilities, such as loans and deposits with similar interest risk in accordance with risk management policies, using interest rate swaps, etc., as hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to themajority of these products, treating them as deferred hedges. The effectiveness of the hedges is assessed by periodically checking,by regression analysis and other methods, whether the derivative financial products highly reduce the exposure to changes in fairvalue and variable cash flows from hedged items.
(c) Trading Guidelines
In accordance with the purposes for which the Group uses derivative financial products, the Group deals in derivative financial
products based on the following guidelines:(i) Responding to customer needs
After obtaining an adequate understanding of customer requirements, the Group follows a common policy on selling financial
products by recommending the most appropriate financial vehicle for each customer's knowledge, experience, asset positionand purpose of investment. When actually making a sale, the Group endeavors to give full explanations to its customers toensure that they clearly understand the nature of each product, the risks involved and other important matters.
(ii) Risk control of assets and liabilities of MHFG (ALM)
MHFG's ALM & Market Risk Committee meets periodically to confirm or revise the trading guidelines for the purposes of
securing stable income while appropriately controlling risk.
(iii) Trading activities
The Group engages in trading activities to maximize income under reasonable risk limits and strict management.
(d) Details of Trading-Related Risk
The following are the main risks inherent in derivatives trading.
(i) Credit risk:
The risk of incurring a loss because the counter parties are unable to fulfill their obligations due to bankruptcy orother reasons.
(ii) Market risk:
The risk of incurring a loss because the value of the derivative products decreases due to fluctuations in market risk factors
such as interest rates, foreign exchange rates and bond and stock prices.
(iii) Market liquidity risk:
The risk of incurring a loss from the inability to execute transactions in the market and/or execution at unfavorable prices due
to illiquidity of the products.
(iv) Other risk:
The risk of incurring increased costs from the additional collateral because of downgrades in MHFG's, the banking subsidiaries' and others' credit rating.

161

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(e) Derivative Trading Risk Control Structure(i) Credit risk management structure
The Board of Directors determines important items concerning credit risk in accordance with the Basic Policy for Credit Risk
Management. MHFG has established the Portfolio Management Committee as one of its business policy committees. This
committee conducts overall deliberation on and adjustment of the group's credit portfolio management procedures. Under
the authority of the Chief Risk Officer, the Risk Management Department and the Credit Risk Management Department
jointly formulate and implement plans for basic matters related to credit risk management. The Group applies the same manner of credit risk management to derivative transactions as it applies to the other credit transactions.
(ii) Market risk management structure
The Basic Policies for Market and Liquidity Risk Management are determined by the Board of Directors. MHFG's Risk
Management Department is responsible for monitoring market risk, reports and analyses, proposals, setting limits, and for formulating and implementing plans relating to market risk management as a specialized risk management section.
The Group has established a solid management structure for market risk including comprehensive management (ALM) ofinterest rate risk and other types of risk. Through this structure, it comprehensively ascertains and manages risk, while managing assets to secure stable income and appropriately controlling risk.
MHFG has established the ALM & Market Risk Committee as one of the business policy committees charged with conducting overall deliberation on and adjustment of market risk management procedures. The committee decides the entire group's
monthly funding and investment policies, discusses and coordinates matters relating to ALM policies, risk planning and market
risk management, and responds to emergencies, such as sudden market changes.
In regard to reporting, the Risk Management Department receives the relevant data from the five core subsidiaries, as well
as reports on risk profiles and compliance with risk limits, both on a regular basis and as considered necessary. Based on thesereports, MHFG obtains a solid grasp of the market risk management situation. Reports on the status of market risk and compliance with risk limits are submitted to the President on a daily basis, and to the Board of Directors and the Executive
Management Committee on a regular basis and as considered necessary.

162

(2) Fair Value of Derivatives
The fair value of derivatives as of March 31, 2009 and 2008 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Tokyo Stock Exchange, the Tokyo International Financial
Futures Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts are based on the
discounted value of future cash flows, option pricing models and others.

(a) Interest Rate-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Listed:Futures:
Sold
BoughtOptions:
Sold
Bought¥Over-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtTotal

27,419,515
25,264,693¥

4,717,621
4,922,761

Unrealized
gains (losses)

Fair value¥(476,612)
476,742¥(476,612)
476,742

4,325,673
5,404,347

20,366
20,171(7,338)
8,199(6,003)
6,967

30,640,875
33,128,171

615,992
675,421(39,057)
49,639(39,057)
49,639427,295,005
421,373,263
35,769,404
606,553

275,349,409
274,127,417
25,362,804
354,042

14,535,225(13,964,999)
8,224(1,393)

14,535,225(13,964,999)
8,224(1,393)34,165,529
28,845,065

19,850,369
18,752,146(412,892)
409,882(412,892)
409,882

/

/

/

¥

585,722
Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtTotal¥

40,089,136
34,836,900¥

9,700,733
8,364,065

Unrealized
gains (losses)

Fair value¥(458,095)
435,577¥(458,095)
435,577

32,958,088
41,812,738

662,205
1,459,112(18,904)
22,370(6,003)
6,126

31,566,475
29,522,601

463,203553,642

2,708(2,332)

2,708(2,332)

528,045,937
531,247,787
31,332,858
864,889355,617,343
348,293,281
21,095,417
638,051

6,214,617(5,867,479)(11,459)436

6,214,617(5,867,479)(11,459)436

36,347,067
36,149,611

17,800,270
17,526,834(27,942,854)
27,946,346(27,942,854)
27,946,346

/

/

/

¥

317,587

163

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2009

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtFair value

Unrealized
gains (losses)$ 279,050,640
257,120,840$ 48,011,622
50,099,348$ (4,850,520)
4,851,851$ (4,850,520)
4,851,851

44,022,730
55,000,483

207,267
205,283(74,685)
83,450(61,100)
70,905

311,834,674
337,148,096

6,269,009
6,873,822(397,492)
505,183(397,492)
505,183

4,348,615,977
4,288,349,921
364,028,135
6,172,941

2,802,253,305
2,789,816,989
258,119,319
3,603,124

147,926,168(142,122,939)
83,700(14,182)

147,926,168(142,122,939)
83,700(14,182)

347,705,373
293,558,569

202,018,825
190,842,113(4,202,038)
4,171,413(4,202,038)
4,171,413

/

/

/

Total

$

5,960,949)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of AccountingStandards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.24) and others are excluded from theabove table.

(b) Currency-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
Bought
Total

164

¥

—
—

¥

—
—

Unrealized
gains (losses)

Fair value

¥

—
—

¥

—
—

22,493,472

16,139,275(492,979)(565,049)

21,832,746
13,089,923

1,772,571
920,760(202,466)
158,411(202,466)
158,411

10,977,837
11,901,575

7,143,873
8,151,512(1,282,273)
1,580,207(392,546)
772,307

/

/

/

¥

(229,344)

Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Listed:Futures:
Sold
Bought¥Over-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtTotal

34,73735,365¥——

Unrealized
gains (losses)

Fair value

¥

(2)
2

¥

(2)
2

21,465,777

16,301,664(165,695)

209,037

23,317,703
17,546,250

162,928
2,642,584

1,139,294(999,982)

1,139,294(999,982)

12,097,577
13,072,365

7,102,086
8,005,802(1,213,748)
1,468,598(337,961)
748,091

/

/

/

¥

758,480

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2009

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
Bought
Total

$

—
—

$

—
—

Unrealized
gains (losses)

Fair value

$

—
—

$

—
—

228,917,892

164,250,718(5,017,093)(5,750,558)

222,193,630
133,217,218

18,039,609
9,370,660(2,060,517)
1,612,164(2,060,517)
1,612,164

111,722,344
121,123,300

72,703,778
82,958,604(13,049,798)
16,081,904(3,994,976)
7,859,834///$ (2,334,053)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements ofincome.
2. The following transactions are excluded from the above table:•Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards
for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.25) and others.
•Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the
consolidated balance sheets.
•Transactions denominated in foreign currencies which are eliminated in consolidation.

165

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
Bought¥Total

127,266
47,275¥——

Unrealized
gains (losses)

Fair value¥(11,799)(671)¥(11,799))(671)

102,775
96,410—9,004(4,717)
4,493

69
(570)

378,840

373,651

71,80771,807

682,542
587,521353,585
265,533(164,415)
97,089(103,305)
57,64850
45,269—34,3290(1,162)0(1,162)

/

/

/

¥

12,017
Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtOther:
Sold
Bought
Total

166

¥

406,910
25,112¥——

Unrealized
gains (losses)

Fair value

¥

(238)
180

¥

(238)
180

104,667
214,655——(1,147)
1,611

303
(835)

1,118,389
886,851

516,414442,317(141,432)
78,042(65,421)30,78928,500362,581

28,500354,426(4,602)
46,977(4,602)
46,977

/

/

/

¥

7,153

Thousands of U.S. dollars

As of March 31, 2009

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

Contract value
Total
Over one year

Fair value

Unrealized
gains (losses)——$ (120,089)(6,830)$ (120,089)(6,830)1,045,956
981,173—
91,640(48,014)45,733711(5,809)3,855,489

3,802,681

730,794

730,7946,946,293
5,979,252

3,598,464
2,702,354(1,673,266)
988,089(1,051,346)
586,693513
460,710—349,376

0(11,826)

0(11,826)///$ 1,295,197
481,123$$

122,298

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.

167

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions
Millions of yen

2009

2008

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥ 1,439,219
1,090,299

Contract valueOver
one year¥

Fair Unrealized
value gains (losses)——¥ (9,931)
8,833

39,46282,393

—
—

(31)
224

40
(53)

672,831646,393

39,975
16,721(2,466)
287

/

/

/

Total

¥ (9,931) ¥ 1,666,812
8,833 1,519,789

Over
one year¥

Fair Unrealized
value gains (losses)——¥ (5,239)
5,636¥ (5,239)
5,636

35,24961,837

—
—

(106)
224

20
(19)

(356)
(1,485)331,990
341,449

—
5,990

(586)
350

209
(397)

¥ (2,952)

/

/

/

¥

Thousands of U.S. dollars

2009
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

$14,647,049
11,096,068

Over
one year$

Fair
Unrealized
value gains (losses)— $(101,071) $(101,071)—
89,90389,903

401,613
838,521

—
—

(325)
2,286

415
(546)

6,847,464
6,578,402

406,834
170,176(25,101)
2,925(3,627)(15,123)///$(30,049)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.

168

210

(e) Commodity-Related Transactions
Millions of yen

2009

2008

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

¥

18,924 ¥23,488Contract valueOver
one year

6,450 ¥
5,747

Fair
Unrealized
value gains (losses)

Total

4,720 ¥ 4,720) ¥(6,208)(6,208)13,605 ¥15,369Over
one year

Fair
Unrealized
value gains (losses)

2,131 ¥
2,962

(1,435) ¥ (1,435)
1,581
1,581

623,621607,075

483,277
460,691

87,570(59,486)

87,570(59,486)

545,476
520,642

387,170
358,760(173,221)
200,880(173,221)
200,880///¥ 26,596///¥ 27,804

Thousands of U.S. dollars

2009
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

Over
one year

Fair
Unrealized
value gains (losses)$ 192,600 $ 65,644 $ 48,043 $ 48,043)
239,048
58,490(63,189)(63,189)

6,346,649 4,918,356
6,178,253 4,688,494//

891,213(605,397)

891,213(605,397)/$270,670

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.
3. Commodities include oil, copper, aluminum and others.

169

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Millions of yen

Contract value
Total
Over one year

As of March 31, 2009

Over-the-Counter:
Credit Derivatives:
Sold
Bought

¥7,466,539
8,894,025

Total

¥

6,631,448
7,569,719/

Unrealized
gains (losses)

Fair value¥(475,432)
565,893¥(475,432))
565,893/¥

90,460/Millions of yen

Contract value
Total
Over one year

As of March 31, 2008

Over-the-Counter:
Credit Derivatives:
Sold
Bought¥ 12,933,582
14,896,086¥ 12,672,764
14,653,797

/

/

Total

Unrealized
gains (losses)

Fair value¥(387,287)
329,068¥(387,287)
329,068/¥(58,218)

Thousands of U.S. dollars

Contract value
Total
Over one year

As of March 31, 2009

Over-the-Counter:
Credit Derivatives:
Sold
BoughtFair value

Unrealized
gains (losses)$ (4,838,520))
5,759,141$ 75,987,578
90,515,220$ 67,488,788
77,037,650$ (4,838,520)
5,759,141

/

/

/

Total

$

920,621)

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.
3. “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

(g) Weather Derivative Transactions
Millions of yen

2009

2008

Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought

Total

¥

Total

17
—

Contract valueOver
one year

¥

/

—
—

Fair Unrealized
value gains (losses)

¥

/

2
—

¥

2)
—

/

¥

2

Total

¥

146
124
/

Over
one year¥——/

Fair Unrealized
value gains (losses)

¥

(1)
16

¥

(1)
16

/

¥

15

Thousands of U.S. dollars

2009
Contract value
As of March 31,

Over-the-Counter:
Weather Derivatives:
Sold
Bought
Total

Total

$

173
—
/

Over
one year

$

—
—
/

Fair
Unrealized
value gains (losses)

$

23
—

$

23
—

/

$

23

Notes: 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statements
of income.
2. Transactions are related to temperature, rainfall and others.

170

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

172

Non-Consolidated Statements of Income

173

Mizuho Corporate Bank, Ltd.
Non-Consolidated Balance Sheets

174

Non-Consolidated Statements of Income

176

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheets

177

Non-Consolidated Statements of Income

179

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheets180

Non-Consolidated Statements of Income

182

The Former Shinko Securities Co., Ltd.
and the Former Mizuho Securities Co., Ltd.
The Former Shinko Securities Co., Ltd.
Non-Consolidated Balance Sheets

183

Non-Consolidated Statements of Income

186

The Former Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets

187

Non-Consolidated Statements of Income

190

171

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheets
Millions of yen
2009

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¥

108,064
16,05692,007
4,444,677
1,327
4,123
4,431,880
7,345

Total Net Assets
Total Liabilities and Net Assets

176,094
10,440165,653
4,482,828
1,283
3,972
4,471,185
6,385$

1,099,783
163,412936,371
45,233,840
13,514
41,96945,103,605
74,752¥ 4,658,922$ 46,333,623¥

939,978700,000
160,000
79,9784,151¥ 1,142,276
1,000,000
140,000
2,276
3,800

$

944,130

1,146,076

9,608,492

3,607,610
1,540,965
385,241
385,241
1,687,622
4,350
1,683,272
1,683,272(6,218)
(32)
(32)
1,032

3,512,873
1,540,965
385,241
385,241
1,589,114
4,350
1,584,764
1,584,764(2,447)
(27)
(27)
—

36,714,949
15,682,526
3,920,634
3,920,634
17,175,071
44,27017,130,801
17,130,801(63,282)
(327)
(327)
10,5099,566,238
7,123,957
1,628,333
813,948
42,254

3,608,611

3,512,845

36,725,131¥ 4,552,741¥ 4,658,922$ 46,333,623

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

172

2008

¥ 4,552,741

Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Stock Acquisition Rights¥

Thousands of
U.S. dollars
2009Non-Consolidated Statements of Income
Millions of yen
2009

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries and Affiliates¥

442,701
410,517
32,183¥Thousands of
U.S. dollars
2009

2008

806,519
770,832
35,686$

4,505,408
4,177,869
327,539

Operating Expenses
General and Administrative Expenses

19,96819,96819,364
19,364203,217203,217

Operating Profits
Non-Operating Income
Non-Operating Expenses

422,733
46,31590,353

787,155
38,922
15,195

4,302,191
471,361
919,534

Income before Income Taxes
Income Taxes:
Current
Deferred

378,695

810,882

3,854,018

6
(126)

11
(131)

61
(1,283)Net Income¥

378,815¥

811,002$3,855,240

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

173

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 and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
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

174

2008

Thousands of
U.S. dollars
2009¥ 3,930,221
162,041
583,9172,724,465
138,491
5,301,421
2,026
15,406,851
29,911,387
796,974
11,411,405
117,585
26,09651,758252
1,215
38,26190,03079,88892
10,049312,980
3,871,723(330,952)(5,590)¥ 1,393,670
272,402
1,856,338
2,832,786
176,024
3,895,842
2,026
17,494,803
28,439,602
586,120
9,955,263
122,293
27,19056,342—
1,998
36,76282,00567,518—14,487140,262
4,532,620(216,809)(1,491)$ 39,998,184
1,649,113
5,942,572
27,727,108
1,409,439
53,953,000
20,628
156,796,780
304,410,623
8,110,874
116,134,802
1,196,674
265,587
526,752
2,570
12,374
389,391916,244
813,035
938
102,271
3,185,226
39,402,844(3,368,133)(56,890)¥ 74,424,982¥ 71,563,763$ 757,429,088

Millions of yen
2009Non-Consolidated Balance Sheets
2008

Thousands of
U.S. dollars
2009¥ 26,847,874
1,423,750
12,314,696
2,663,993
1,884,378
3,909,429
6,849,307
609,399
154,400
2,064,368
10,298,182
10,939—28,711
7,845
26,884
3,871,723¥ 27,635,452
2,199,100
8,968,569
5,598,199
2,604,496
3,170,152
3,747,304
241,119490,000
1,426,971
8,327,179
3,570
2,459
50,895
1,505
27,1404,532,620$ 273,233,004
14,489,619
125,327,664
27,111,678
19,177,476
39,786,583
69,705,959
6,201,905
1,571,341
21,009,241
104,805,438
111,332—
292,196
79,842
273,60239,402,844

72,965,883

69,026,738

688,889,742,579,724

1,648,063
1,070,965
330,334
330,334
246,763
110,701
136,062
136,062(188,964)(331,657)
105,320
37,372

2,103,229
1,070,965
330,334
330,334
701,930
70,700631,229
631,229433,794
346,058
50,00637,72916,772,472
10,899,298
3,361,838
3,361,838
2,511,336
1,126,616
1,384,720
1,384,720(1,923,108)(3,375,304)
1,071,858
380,338

Millions of yen
2009

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on 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
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains, net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

1,459,098

2,537,024

14,849,364¥ 74,424,982¥ 71,563,763$ 757,429,088

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

175

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Corporate Bank, Ltd.

Non-Consolidated Statements of Income
2008

Thousands of
U.S. dollars
2009¥ 1,073,677
622,878
333,815
149,905
153,323
171,210
164,453¥ 1,423,492
742,022467,918
157,307248,743
204,379
387,126$ 10,926,905
6,339,082
3,397,265
1,525,598
1,560,387
1,742,422
1,673,654

1,712,570

2,421,050

17,428,966

757,176
290,606
14,48432,961—
229,827
260,405
652,501

1,129,888
518,447
20,91437,4903,467
256,718
239,138
764,492

7,705,842
2,957,524
147,411335,456—
2,338,977
2,650,166
6,640,561

1,932,872

2,431,196

19,671,002(220,302)(10,145)(2,242,036)

20,767
14,459(255,529)

38
78,581(88,764)

211,353
147,151(2,600,540)

Millions of yen
2009

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 (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

176

¥

$

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets
As of March 31,

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
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

2008

Thousands of
U.S. dollars
2009¥ 2,738,999
8,740,000
120,451
1,719,219
1,555,582
1,266
13,376,053
37,126,612
124,652
2,781,170
654,363
229,256
340,547
5,548
18,55960,452
142,192
94,508554
47,130280,656
1,120,746(464,301)—¥ 3,272,160
4,668,200
3,131,603
2,333,582
1,179,748
1,500
15,151,302
33,745,801
120,477
2,701,901
604,504
217,780
321,415—
3,464
61,844130,249
104,920—
25,329372,563
1,157,505(347,614)(84,022)$ 27,875,016
88,947,690
1,225,843
17,496,639
15,831,284
12,889136,129,181
377,840,548
1,268,595
28,304,199
6,659,515
2,333,163
3,465,782
56,462
188,881615,227
1,447,105
961,820
5,639
479,6462,856,265
11,405,932(4,725,229)—¥ 70,017,665¥ 68,139,465$ 712,575,472

Millions of yen
2009

177

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheets
2008

Thousands of
U.S. dollars
2009¥ 57,135,748
882,949
1,666,100
588,323806,730
255,403
2,043,626
10,71320,000761,200
3,405,053
9,030—
11,277
12,6508,973
77,471
1,120,746¥ 56,092,954
971,953
1,433,100
495,835
1,375,995
280,431
1,115,189
13,706—
662,500
2,617,813
9,187
1,974
8,314
8,739
—
77,956
1,157,505$ 581,475,152
8,985,851
16,956,035
5,987,414
8,210,161
2,599,263
20,798,154
109,028
203,542
7,746,794
34,653,506
91,907—
114,767
128,740
91,327788,430
11,405,932

68,815,998

66,323,157

700,346,003

1,281,432
650,000
762,345762,345(130,913)(130,913)(130,913)(79,765)(190,725)
1,884
109,075

1,774,352
650,000
762,345762,345
362,006
362,006
362,006
41,955(46,300)(21,482)
109,738

13,041,246
6,615,103
7,758,455
7,758,455(1,332,312)(1,332,312)(1,332,312)(811,777)(1,941,028)
19,183
1,110,068

Millions of yen
2009

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Frequent Users Service
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
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 Reserves for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

1,201,667

1,816,308

12,229,469¥ 70,017,665¥ 68,139,465$ 712,575,472

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

178

Non-Consolidated Statements of Income
Millions of yen
2009

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¥

858,419616,565
115,060
208,277
38,39777,601
148,473

892,327
621,046
165,500
238,378
122,597
67,258144,854$

8,736,208
6,274,840
1,170,979
2,119,658
390,776
789,759
1,511,028

1,465,415

13,547,429

254,765
160,042
3,175
51,601
48,603
614,744567,718

285,427
165,625
3,068
49,34342,956558,913289,746

2,592,767
1,628,768
32,322525,156
494,640
6,256,301
5,777,715

1,537,432

1,226,388

15,646,579(206,262)

239,027(2,099,150)

519
86,819502
42,9975,286
883,571

Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)

2008

1,331,170

Expenses
Interest Expenses
Deposits
Debentures
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses¥

Thousands of
U.S. dollars
2009¥ (293,601)¥

195,527$(2,988,007)

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

179

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheets
Millions of yen
2009

As of March 31,

AssetsCash and Due from Banks
Call Loans
Gurantee Deposits Paid under Securities Borrowing Transactions
Other Debts Purchased
Trading Assets
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

180¥

223,555—
40,249288,052
51,955
1,945,977
3,439,591
3,166
184,479
31,34013,612
14,416167
3,144
19,92019,57748
294
50,11534,394(24,338)(1)¥ 6,288,459¥

Thousands of
U.S. dollars
2009

2008

307,347
10,00051,864335,964
40,465
1,674,882
3,481,359
1,428
204,768
31,953
13,763
14,442—
3,746
17,701
17,406—294
37,987
38,673(24,630)—¥ 6,209,765$

2,275,138—
409,620
2,931,537
528,758
19,804,374
35,004,998
32,222
1,877,465
318,957
138,531
146,713
1,708
32,005
202,736
199,243492
3,001
510,031350,033(247,694)(10)$ 63,998,165

Non-Consolidated Balance Sheets
2008

Thousands of
U.S. dollars
2009¥ 3,556,182
658,80974,85959,323
617,452
5
143,900
827,71337,474
2,063
11,526—
12,710955
34,394¥ 3,431,437
580,664442,549
32,30020,00012
162,200
952,087
67,513
1,901
10,852423
12,590875
38,673$ 36,191,561
6,704,758
761,852
603,741
6,283,860
55
1,464,482
8,423,704
381,383
20,997
117,302—129,356
9,721
350,033

6,037,369

5,754,083

61,442,805

269,891
247,231
15,367
15,367
7,426
8,061
(634)
(634)
(134)
(18,956)(14,373)(4,583)
155

384,478
247,231
15,367
15,367122,005
6,514
115,491
115,491(126)
71,20366,803
4,399—

2,746,703
2,516,100
156,395
156,395
75,57882,040(6,462)(6,462)(1,370)(192,921)(146,277)(46,644)
1,578

Millions of yen
2009

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Guarantee Deposits Received under Securities Lending Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Employee Retirement Benefit
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

251,089455,6812,555,360¥ 6,288,459¥ 6,209,765$ 63,998,165

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

181

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Statements of Income
Millions of yen
2009

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income¥

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income (Loss) before Income Taxes
Income Taxes:
Current
Deferred
Net Income (Loss)¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

182

54,50988,101
61,575
19,60940,585
1,176
8,242
7,419

¥

2008

63,003
100,959
61,996
29,64557,886
1,108
15,05628,713Thousands of
U.S. dollars
2009$554,749
896,612626,658
199,564
413,043
11,97083,88375,508200,034

266,7292,035,765

39,461
21,60914,992
8,068
98,24950,19147,467
20,14415,012
2,862
90,563
10,061

401,602219,917
152,580
82,119999,892
510,804

210,963

165,967

2,146,997(10,929)

100,761(111,232)13
16,89820
13,975

138
171,981

86,764$ (283,351)(27,842)¥

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

The Former Shinko Securities Co., Ltd. and the Former Mizuho Securities Co., Ltd.

The Former Shinko Securities Co., Ltd.
Non-Consolidated Balance Sheets
As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Fund Deposits
Trading Products
Trading Securities, etc.
Derivative Assets
Trade Date Accrual
Securities for Sale, etc.
Margin Transaction Assets
Customers' Loans Receivable in Margin Transactions
Collateral for Borrowed Securities for Margin Transactions
Loans Receivable Secured by Securities
Collateral for Borrowed Securities
Loans Receivable in Gensaki Transactions
Advances
Advances for Customers
Other Advances
Short-term Deposits
Variation Margin Paid
Short-term Loans Receivable
Advance Payment
Prepaid Expenses
Accounts Receivable
Accrued Revenues
Deferred Tax Assets
Allowance for Bad Debts
Fixed Assets
Tangible Fixed Assets
Buildings
Furniture and Fixtures
Land
Lease Assets
Intangible Fixed Assets
SoftwareRented House Right
Phone Right
Other
Investments and Other Assets
Investment Securities
Share of Affiliates
Long-term Deposits
Long-term Prepaid Expenses
Other Investments
Allowance for Bad Debts
Total Assets

2008

Thousands of
U.S. dollars
2009¥ 2,584,682
163,447
39,124
1,317,202
1,293,599
23,60339,2898,338
30,03011,89918,130948,137
796,087
152,050653
624
28
12,454
2,748
10,970
154
1,108
1,398
6,307
3,882
(566)
103,304
6,933
3,284
2,029
1,209
409
27,28424,06593
230
2,895
69,08623,01928,3398,095
1,656
10,745(2,769)¥ 4,056,798
78,23546,5201,474,953
1,456,805
18,147
83,898
8,726
53,71439,822
13,891
2,279,680
2,066,241
213,438
173
155
18
3,507
1,302
10,879
171
1,243
4,001
7,985
1,854
(50)
124,662
7,036
3,618
2,207
1,209
—
31,20429,06685
233
1,818
86,42140,64231,084
8,266
2,178
7,628
(3,378)$ 26,304,526
1,663,421
398,175
13,405,282
13,165,066
240,216
399,848
84,865
305,618
121,101
184,517
9,649,271
8,101,843
1,547,428
6,652
6,358
294
126,753
27,977
111,645
1,575
11,276
14,23064,18939,516(5,767)
1,051,336
70,55833,424
20,651
12,313
4,170
277,677
244,918
947
2,347
29,465703,101
234,268
288,415
82,38816,858109,356(28,184)¥ 2,687,986¥ 4,181,461$ 27,355,862

Millions of yen
2009

183

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

The Former Shinko Securities Co., Ltd. and the Former Mizuho Securities Co., Ltd.

The Former Shinko Securities Co., Ltd.
Non-Consolidated Balance Sheets
As of March 31,

Liabilities and Net Assets
Liabilities
Current Liabilities
Trading Products
Trading Securities, etc.
Derivative Liabilities
Margin Transaction Liabilities
Customers' Loans Payable for Margin Transactions
Collateral for Loaned Securities for Margin Transactions
Loans Payable Secured by Securities
Amounts Receivable on Loan Transactions
Loans Payable in Gensaki Transactions
Deposits Received
Deposits Received from Customers
Other Deposits Received
Received Margins
Short-term Loans Payable
Commercial Paper
Lease Liabilities
Advance Receipt
Accrued Liablity
Accrued Expenses
Income Taxes Payable
Reserve for Bonus
Reserve for Employees' Bonus
Reserve for Directors' Bonus
Reserve for Point Service
Reserve for Affiliate Reorganization Loss
Fixed Liablities
Corporate Bonds
Long-term Loans Payable
Lease Liabilities
Deferred Tax Liabilities
Reserve for Retirement Benefits
Reserve for Directors' Retirement Benefits
Reserve for Executive Officers' Retirement Benefits
Other Fixed Liabilities
Statutory Reserve
Reserve for Securities Transaction Liabilities
Reserve for Financial Instrument Transaction Liabilities
Total Liabilities

184

2008

Thousands of
U.S. dollars
2009¥ 2,369,043
636,694609,335
27,358
11,505
6,694
4,810
1,014,579
667,767
346,81130,432
28,264
2,168
17,296564,150
83,500
86
280
653
5,154
433
2,251
2,251
—
1,136
890
83,49133,00040,300
326
3,401
4,957
440
874
192
397
—
397

¥ 3,829,869
966,543
955,455
11,087
16,19013,9272,262
2,190,051
1,844,224
345,827
37,74934,023
3,725
28,009448,970
126,500
—
280
2,050
7,915
118
3,738
3,576
162
858
894
86,44933,00040,650
—
7,048
4,514
348
728
160
648
648
—

$ 24,109,946
6,479,689
6,201,255
278,434
117,089
68,132
48,957
10,325,455
6,795,928
3,529,527
309,710287,645
22,065
176,024
5,741,400
849,786
883
2,856
6,653
52,457
4,407
22,90922,909—11,5699,059
849,703335,844
410,136
3,322
34,61750,449
4,481
8,899
1,955
4,049
—
4,049

2,452,932

3,916,967

24,963,698

Millions of yen
2009

The Former Shinko Securities Co., Ltd.
Non-Consolidated Balance Sheets
Millions of yen
2009

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Other Retained Earnings
Retained Earnings Carried-forward to Next Period
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes

233,509125,167
82,521
51,407
31,11333,24633,24633,246(7,425)
1,544
1,544

Total Net Assets
Total Liabilities and Net Assets

2008

Thousands of
U.S. dollars
2009

254,421125,167
82,51751,407
31,11054,10954,10954,109(7,372)
10,073
10,073

2,376,450
1,273,838
839,825
523,180
316,645
338,353
338,353
338,353(75,566)
15,714
15,714

235,053

264,494¥ 2,687,986¥ 4,181,461

2,392,164$

27,355,862

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

185

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

The Former Shinko Securities Co., Ltd. and the Former Mizuho Securities Co., Ltd.

The Former Shinko Securities Co., Ltd.
Non-Consolidated Statements of Income
For the Fiscal Years ended March 31,

Operating Revenues
Commissions and Fees Received
Trading Profit or Loss
Profit or Loss on Securities for Sale, etc.
Financial Revenues
Financial Expenses¥

Net Operating Revenues

99,96046,28539,255(1,147)
15,567
13,371¥ 136,617
68,20350,817(1,740)19,337
17,469$ 1,017,310
471,047
399,511(11,678)
158,430
136,087

86,588

119,147

881,223

103,591
13,79341,493
15,575
16,20012,959
832
564
2,171

109,396
15,544
47,11815,792
16,05911,472
971
15
2,421

1,054,256
140,380
422,284
158,514
164,875
131,8908,469
5,744
22,100Operating Profit(17,002)

9,751(173,033)

Non-operating Revenues
Non-operating Expenses

2,668
156

3,419
371

27,155
1,596

Ordinary Profit(14,490)

12,799(147,474)

Extraordinary Profits
Extraordinary Losses

5,837
4,691

2,014
3,993

59,40547,747(13,345)

10,820(135,816)

294
(509)

785
1,931

2,997
(5,183)

Selling, General and Administrative Expenses
Transaction Expenses
Personnel Expenses
Real Estate Expenses
Offie Expenses
Depreciation
Taxes and Dues
Provision of Allowance for Doubtful Accounts
OthersNet Profit before Taxes, etc.
Income Taxes
Adjustment Amount for Income Taxes
Net Profit (Loss)¥ (13,130)

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

186

2008

Thousands of
U.S. dollars
2009

Millions of yen
2009

¥

8,104

$

(133,630)

The Former Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets
As of March 31,

AssetsCurrent Assets
Cash and Deposits
Cash Segregated as Deposits
Trading Assets
Trading Securities and Others
Loan Assets
Derivative Transactions
Operating Investment Securities
Operating Loan Receivables
Margin Transaction Assets
Loans Secured by Securities
Payments for Subscription
Guarantee Deposits
Variation Margin Paid
Short-term Loan
Accrued Income
Tax Refundable
Short-term Deferred Tax Assets
OthersAllowance for Doubtful Accounts
Fixed Assets
Tangible Assets
Buildings
Furniture and Fixtures
Intangible Assets
Software
OthersInvestments
Investment Securities
Investment in Affiliates
Long-term Loan to Affiliates
Long-term Guarantee Deposits
Long-term Prepaid Expenses
Long-term Deferred Tax Assets
OthersAllowance for Doubtful Accounts
Total Assets

2008

Thousands of
U.S. dollars
2009¥ 8,433,183
31,36323,6055,083,232
4,053,688
37,930991,61428,5140432
3,019,693
596
163,172—
57,775
14,900
775
7,200
1,926
(0)
221,805
8,499
2,655
5,844
12,823
12,77647
200,483
3,072
159,547
—
6,772
1,037
28,742
2,956(1,643)¥ 12,476,240
39,462
16,915
7,543,860
7,002,202
40,279501,379
33,4332,012
1,974
4,657,424
820
99,606
8,644
27,915
22,4605,949
11,4974,267(4)218,791
10,435
2,846
7,588
12,37012,32049
195,986
7,260
148,781
8,970
6,197
1,397
22,0181,361(0)$ 85,825,190
319,186
240,230
51,732,460
41,254,711
386,012
10,091,737
290,189—
4,400
30,731,658
6,072
1,660,619
0587,981
151,642
7,891
73,271
19,599(8)2,257,327
86,49827,02259,476
130,500
130,024476
2,040,329
31,261
1,623,720—
68,92010,555292,51330,083(16,723)¥ 8,654,988¥ 12,695,032$ 88,082,517

Millions of yen
2009

187

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

The Former Shinko Securities Co., Ltd. and the Former Mizuho Securities Co., Ltd.

The Former Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets
As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivative Transactions
Payable - Unsettled Trades
Margin Transaction Liabilities
Borrowings Secured by Securities
Deposits Received
Cash Collateral Received from Customers
Securities: Fail to Receive
Variation Margin Received
Short-term Borrowings
Commercial Paper
Short-term Bonds and Notes
Advance Receipt
Accrued Expenses
Reserve for Bonuses
OthersFixed Liabilities
Bonds and Notes
Long-term Borrowings
Long-term Borrowings from Affiliates
Reserve for Retirement Benefits
Reserve for Retirement Benefits for Directors and Operating Officers
OthersStatutory Reserves
Securities Transaction Liability Reserve
Futures Transaction Liability Reserve
Total Liabilities

188

2008

Thousands of
U.S. dollars
2009¥ 7,579,363
3,116,491
2,247,360
869,131
18,0482,619
1,635,110
10,32567,789—494
2,428,176
218,400
62,620013,5294,227
1,535
745,427
227,900
242,955
268,000
5,986
508
78
1,417
1,417
—

¥ 11,561,216
4,155,816
3,655,375
500,440
197,253
7,771
4,118,380
14,97434,7896—2,658,236
287,900
65,70011
16,6983,243
433
805,636
331,100
244,878
222,000
7,189
468
—
2,027
1,922
104

$ 77,135,794
31,716,783
22,871,569
8,845,214
183,680
26,658
16,640,648
105,079
689,889—
5,032
24,711,739
2,222,675
637,2890137,69043,015
15,6177,586,281
2,319,357
2,472,577
2,727,458
60,9175,171
801
14,421
14,421—

8,326,207

12,368,880

84,736,496

Millions of yen
2009

The Former Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheets
Millions of yen
2009

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid-in Capital
Retained Earnings
Legal Earned Reserve
Voluntary Reserve
Other Reserve
Unappropriated Retained Earnings
Revaluation/Translation Difference
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes

329,824
250,000
75,74275,742
4,082
—
4,082
—
4,082
(1,043)
(572)
(471)

Total Net Assets
Total Liabilities and Net Assets

2008

Thousands of
U.S. dollars
2009

325,742
395,146
325,288
325,288(394,692)
870(395,562)
1,500(397,062)
409
409
0

3,356,649
2,544,270
770,834
770,834
41,545—41,545—41,545(10,628)(5,822)(4,806)

328,781

326,151

3,346,021¥ 8,654,988¥ 12,695,032$ 88,082,517

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

189

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Four Subsidiaries

The Former Shinko Securities Co., Ltd. and the Former Mizuho Securities Co., Ltd.

The Former Mizuho Securities Co., Ltd.
Non-Consolidated Statements of Income
2008

Thousands of
U.S. dollars
2009

93,91659,813(26,393)
5,626
54,86944,200$ 1,100,420
422,738
152,760(16,445)
541,367
443,937

64,50549,716

656,483

68,20813,502
25,681
13,837
3,452
6,635
—
1,634
3,467

79,96821,65728,013
15,122
5,405
5,486
60
2,012
2,209

694,172
137,414
261,360
140,817
35,13367,526—
16,63135,291

Operating Profits(3,703)(30,252)(37,689)

Non-Operating Income
Non-Operating Expenses

9,303
30

10,788
6,169

94,678302

Ordinary Profits

5,570(25,633)

56,687Extraordinary Gains
Extraordinary Losses

6,121
8,787

18,452
439,074

62,30189,4282,904(446,256)

29,560251(1,429)978(9,373)

2,561(14,546)

4,082¥ (437,860)

Millions of yen
2009

For the Fiscal Years ended March 31,

Operating Income
Commission Income
Trading Income
Net Gains on Operating Investment Securities
Interest and Dividend Income
Less: Interest Expense¥ 108,127
41,53815,010(1,615)53,194
43,622Net Operating Income
Selling, General and Administrative Expenses
Commission and Other Transaction-related Expenses
Compensation and Benefits
Occupancy
Data Processing and Office Supplies
Depreciation
Amortization of Goodwill
Taxes and Dues Other than Income Taxes
OthersProfit before Income Taxes
Income Taxes - Current
Income Taxes - Deferred
Net Income (Loss)¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥98.26=US$1.00, the foreign exchange rate on March 31, 2009, has been used for translation.

190

¥

$

41,545)

Status of Capital Adequacy
Capital Adequacy Ratio Highlights

192

Status of Consolidated Capital Adequacyof Mizuho Financial Group, Inc.

194

Scope of Consolidation

194

Consolidated Capital Adequacy Ratio

196

Risk-Based Capital

198

Credit Risk

208

Methods for Credit Risk Mitigation

220

Counterparty Risk in Derivatives Transactionsand Long-Settlement Transactions

222

Securitization Exposure

224

Market Risk

233

Operational Risk

233

Equity Exposure in Banking Book

233

191

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel II Framework, based on the “International Convergence of Capital Measurement and Capital Standards: A Revised
Framework” issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy information toensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters Separately Prescribed by theCommissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc. pursuant to Article 19-2, Paragraph
1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No.10 of 1982)”(FSA Notice No.15 of 2007). As a method to calculate the amount of credit risk-weighted assets under the Basel II Framework, wehave adopted the advanced internal ratings-based approach since March 31, 2009 in place of the foundation internal ratingsbased approach that we had been using previously. The figures disclosed herein are therefore based on the foundation internalratings-based approach for the fiscal year ended March 31, 2008, and the advanced internal ratings-based approach for the fiscal
year ended March 31, 2009.

Capital Adequacy Ratio Highlights
Mizuho Financial Group (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

2009

2008

10.53%
6.37%

11.70%
7.40%

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

3,765.0
2,793.1334.5

5.¥4,880.1
3,221.8
393.6

Total Risk-based Capital¥

6,223.6¥

7,708.3

Risk-weighted Assets¥ 59,056.2¥ 65,872.8(Reference)
Mizuho Corporate Bank (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

2009

2008

11.89%
8.48%

12.17%
8.48%

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

2,697.8
1,345.3
261.3¥

2,982.4
1,620.5
324.1

Total Risk-based Capital¥

3,781.8¥

4,278.8

Risk-weighted Assets¥ 31,790.8¥ 35,147.3

Mizuho Corporate Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (BIS Standard)
Tier 1 Capital Ratio

192

2009

2008

11.75%
6.05%

13.99%
7.95%

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

1,862.6
1,862.6
111.9¥

2,505.9
2,082.3
177.1

Total Risk-based Capital¥

3,613.3¥

4,411.1

Risk-weighted Assets¥ 30,742.3¥ 31,514.6

Mizuho Bank (Consolidated)
Billions of yen

As of March 31,

Consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio

2009

2008

11.77%
6.65%

11.97%
7.28%

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

1,696.5
1,382.6
77.3¥

2,032.4
1,378.6
71.3

Total Risk-based Capital¥

3,001.8¥

3,339.6

Risk-weighted Assets¥ 25,497.9(Reference) Consolidated Capital Adequacy Ratio (BIS Standard)

11.87¥ 27,888.8

10.56%

11.87%

Mizuho Bank (Non-Consolidated)
Billions of yen

As of March 31,

Non-consolidated Capital Adequacy Ratio (Domestic Standard)
Tier 1 Capital Ratio

2009

2008

11.76%
6.63%

11.70%
7.00%

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

1,644.9
1,368.3
98.1¥

1,887.1
1,377.9
111.3

Total Risk-based Capital¥

2,915.2¥

3,153.8

Risk-weighted Assets¥ 24,776.0(Reference) Non-consolidated Capital Adequacy Ratio (BIS Standard)

10.45%¥ 26,935.8
11.63%

193

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Scope of Consolidation
1. Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation Rules for
Preparation of Consolidated Financial Statements
None as of March 31, 2009 and 2008.
(b) Number of Consolidated Subsidiaries
As of March 31,

2009

2008

Consolidated Subsidiaries

145

146

Our major consolidated subsidiaries are Mizuho Corporate Bank, Ltd., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. andMizuho Securities Co., Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2009:
Proportion of
Ownership
Interest (%)

Proportion of
VotingInterest (%)

Name

Country ofOrganization

Main Business

Domestic
Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Mizuho Securities Co., Ltd.
Mizuho Investors Securities Co., Ltd.
Trust & Custody Services Bank, Ltd.
Mizuho Asset Management Co., Ltd.
Mizuho Research Institute Ltd.
Mizuho Information & Research Institute Inc.
Mizuho Financial Strategy Co., Ltd.
Mizuho Private Wealth Management Co., Ltd.
Mizuho Factors, Limited
Mizuho Credit Guarantee Co., Ltd.
Mizuho Capital Co., Ltd.
Defined Contribution Plan Services Co., Ltd.

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

Banking
Banking
Trust and banking
Securities
Securities
Trust and banking
Investment management
Research and consulting
Information technology
Consulting
Consulting
Factoring
Credit guarantee
Venture capital
Pension plan-related business100.0%
100.0
74.7
89.8
66.5
54.0
98.7
98.4
91.5
100.0
100.0
100.0
100.0
50.0
60.0

100.0%
100.0
70.0
89.8
66.8
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
50.0
60.0

Overseas
Mizuho Bank (Switzerland) Ltd.
Mizuho Capital Markets Corporation
Mizuho Corporate Bank (Canada)
Mizuho Corporate Bank (China), Ltd.
Mizuho Corporate Bank (Germany) Aktiengesellschaft
Mizuho Corporate Bank (USA)Mizuho Corporate Bank Nederland N.V.
Mizuho International plc
Mizuho Securities USA Inc.
Mizuho Trust & Banking (Luxembourg) S.A.
Mizuho Trust & Banking Co. (USA)PT. Bank Mizuho Indonesia

Switzerland
U.S.A.
CanadaChina
Germany
U.S.A.
Netherlands
U.K.
U.S.A.
Luxembourg
U.S.A.
Indonesia

Trust and banking
Derivatives
Banking
Banking
Banking and securities
Banking
Banking and securities
Securities and banking
Securities
Trust and banking
Trust and banking
Banking100.0%
100.0
100.0
100.0
83.3
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0%
100.0
100.0
100.0
83.3
100.0
100.0
100.0
100.0
100.0
100.0
99.0

Notes: 1. Mizuho Trust & Banking and Mizuho Investors Securities are listed on the Tokyo Stock Exchange.
2. In addition to the principal consolidated subsidiaries shown in the above table, as of March 31, 2009, we owned 27.3% of theoutstanding shares of Shinko Securities Co., Ltd., an equity-method affiliate of ours listed on the Tokyo Stock Exchange which was
engaged in wholesale and retail securities businesses. Mizuho Securities and Shinko Securities merged on May 7, 2009. The corporatename of the merged company is Mizuho Securities Co., Ltd.

194

(c) Corporations Providing Financial Services for which Article 9 of the Consolidated Capital Adequacy Ratio
Notice is Applicable
None as of March 31, 2009 and 2008.
(d) Related Companies for which Deductions Set Forth in Article 8, Paragraph 1, Item 2, Subsections 1 to 3 of theConsolidated Capital Adequacy Ratio Notice are Applicable
None as of March 31, 2009 and 2008.
(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, 2009 and 2008.
(f) Restrictions on Transfer of Funds or Capital within the Holding Company's Corporate Group
None as of March 31, 2009 and 2008.

195

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Consolidated Capital Adequacy Ratio
2. Summary Table of Consolidated Capital Adequacy Ratio (BIS Standard)%, Billions of yen

As of March 31,

2009

Tier 1 Capital
Common Stock and Preferred Stock
Non-cumulative Perpetual Preferred Stock
Advance Payment for New Shares
Capital Surplus
Retained Earnings
Less: Treasury Stock
Advance Payment for Treasury Stock
Less: Dividends (Estimate), etc
Less: Unrealized Losses on Other Securities
Foreign Currency Translation Adjustments
Stock Acquisition Rights
Minority Interest in Consolidated Subsidiaries
Preferred Securities Issued by Overseas SPCs
Less: Goodwill Equivalent
Less: Intangible Fixed Assets Recognized as a Result of a Merger
Less: Capital Increase due to Securitization Transactions
Less: 50% of Excess of Expected Losses relative to Eligible Reserves
by Banks Adopting Internal Ratings-based Approach
Total of Tier 1 Capital before Deduction of Deferred Tax Assets (Total of the Above Items)
Deduction for Deferred Tax Assets
Total
Preferred Securities with a Step-up Interest Rate Provision
Ratio to Tier 1 = (B) / (A) X 100

(A)
(B)

¥

¥

1,540.9——411.0
1,475.7
2.5
—
133.8
—
(78.3)—
1,733.4
1,539.7
—
—
11.3

55.9
3,765.0—

54.9
4,880.1—

3,765.0
524.0
13.3913.91%

4,880.1
653.5
13.39%

Tier 2 Capital
45% of Unrealized Gains on Other Securities
45% of Revaluation Reserve for Land
General Reserve for Possible Losses on Loans
Excess of Eligible Reserves relative to Expected Losses by Banks Adopting Internal Ratings-based Approach
Debt Capital, etc.
Perpetual Subordinated Debt and Other Debt Capital
Dated Subordinated Debt and Redeemable Preferred Stock

—
112.8
7.9
—
2,759.0
789.8
1,969.2

289.7
113.6
7.9
—
2,810.4
662.0
2,148.3(C)2,879.9
2,793.1

3,221.8
3,221.8

Tier 3 Capital
Short-term Subordinated Debt
Tier 3 Capital Included as Qualifying Capital

(D)

—
—

—
—

Deductions for Total Risk-based Capital

(E)

334.5

393.6

Total Risk-based Capital

(F)

Total
Tier 2 Capital Included as Qualifying Capital(A) + (C) + (D) - (E)Risk-weighted Assets
Credit Risk-weighted Assets
On-balance-sheet Items
Off-balance-sheet Items
Market Risk Equivalent Assets [(I) / 8%](Reference) Market Risk Equivalent
Operational Risk Equivalent Assets [(K) / 8%](Reference) Operational Risk Equivalent
Adjusted Floor Amount

6,223.6¥

7,708.3
60,183.8
48,988.0
11,195.8
2,052.9
164.2
3,636.0
290.8
—

(M)

¥ 59,056.2¥ 65,872.8

Consolidated Capital Adequacy Ratio (BIS Standard) = (F) / (M) X 100

11.7010.53%

11.70%

7.406.37%

7.40%(G) + (H) + (J) + (L)Tier 1 Capital Ratio = (A) / (M) X 100(G)¥54,231.6
43,629.3
10,602.3
1,342.1
107.3
3,482.3
278.5
—

Total

196

1,540.9
—
—
411.3
607.9
6.2
—
131.0
516.0
(114.7)1.1
2,036.8
1,886.8
—
—
9.1

2008

(H)
(I)
(J)
(K)
(L)

Notes: 1. The above figures are calculated based on the BIS standard applied on a consolidated basis under the “Standards for Determining the
Status of Capital Adequacy in consideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking
Law Article 52-25” (FSA Notice No.20 of 2006 (the “Notice”)). For the figures as of March 31, 2009, we did not apply the exception to
the Notice (FSA Notice No.79 of 2008).
2. As it is not possible to break down common stock and preferred stock of Mizuho Financial Group, Inc. according to classes of stock, novalue for non-cumulative perpetual preferred stock is stated separately from capital.
3. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young
ShinNihon LLC, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy
ratio” (Industry Committee Report No.30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of theaccounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures
performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of the capital
adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor
the internal controls related to the calculation of the capital adequacy ratio.
4. The amounts of net deferred tax assets as of March 31, 2009 and 2008 were ¥714.6 billion and ¥596.5 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, 2009 and 2008 were ¥753.0 billion and ¥976.0 billion, respectively.
5. The “adjusted floor amount” is the amount obtained by multiplying (i) 12.5 by (ii) the excess, if any, of the required capital under thefoundation internal ratings-based approach multiplied by the rate prescribed in the Notice over the required capital under the advanced
internal ratings-based approach.

197

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Risk-Based Capital
3. Summary of Types of Capital Instruments(a) Summary of Preferred Securities
We have included each of the following preferred securities issued by our overseas special purpose companies as Tier 1 capital forthe purposes of our consolidated capital adequacy ratios. Preferred securities issued by Mizuho Preferred Capital (Cayman)
Limited were redeemed in full on June 30, 2009.
Preferred securities issued by SPCs of Mizuho Financial Group

198

IssuerMizuho Preferred Capital (Cayman) Limited (“MPC,” and thepreferred securities described below are referred to as the “MPC
Preferred Securities.”)Mizuho Preferred Capital (Cayman) 1 Limited (as “MPC1,” andthe preferred securities described below are referred to as the“MPC1 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Optionally redeemable on each dividend payment date falling in orafter June 2009 (subject to prior approval from regulatory
authorities)

Optionally redeemable on each dividend payment date falling in orafter June 2012 (subject to prior approval from regulatory
authorities)

Dividends

Floating dividend rate (No dividend rate step-up. As stated in“Dividend suspension events” below, dividend payments that aresuspended are non-cumulative.)

Floating dividend rate (No dividend rate step-up. As stated in“Dividend suspension events” below, dividend payments that aresuspended are non-cumulative.)

Dividend payment
date

Last business day of June in each year

Last business day of June in each year

Total amount issued¥176.0 billion¥171.0 billion

Issue date

March 15, 1999

February 14, 2002

Dividend suspension
eventsIf any of the following events arise, dividend payments are
suspended on a non-cumulative basis:(1) when Mizuho Financial Group issues to MPC a Loss
Absorption Certificate(1);(2) when dividends on Mizuho Financial Group's Preferred Stock(2)are suspended;(3) when Mizuho Financial Group issues to MPC a Distributable
Amounts Limitation Certificate(4) stating that there are no
Available Distributable Amounts(3); and(4) when the dividend payment date is not a Mandatory Dividend
Payment Date(5), and Mizuho Financial Group issues to MPC
a dividend instruction instructing it not to pay any dividends onsuch dividend payment date.

If any of the following events arise, dividend payments are
suspended on a non-cumulative basis:(1) when Mizuho Financial Group issues to MPC1 a Loss
Absorption Certificate(1);(2) when dividends on Mizuho Financial Group's Preferred Stock(2)are suspended;(3) when Mizuho Financial Group issues to MPC1 a Distributable
Amounts Limitation Certificate(4) stating that there are no
Available Distributable Amounts(3); and(4) when the dividend payment date is not a Mandatory Dividend
Payment Date(5), and Mizuho Financial Group issues to MPC1
a dividend instruction instructing it not to pay any dividends onsuch dividend payment date.

Mandatory dividend
event

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, full dividends must be paid on Parity
Preferred securities(6) in June of the calendar year in which such
fiscal year ends. However, it is subject to the following conditions:(1) no Loss Absorption Certificate(1) has been issued; (2) nopreferred stock dividend limitation has arisen with respect thereto(partial dividend payments are made to the extent applicable); and(3) no Distributable Amounts Limitation Certificate(4) has been
issued with respect thereto (partial dividends are paid to the extent
applicable).

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, full dividends must be paid on Parity
Preferred securities(6) in June of the calendar year in which such
fiscal year ends. However, it is subject to the following conditions:(1) no Loss Absorption Certificate(1) has been issued; (2) nopreferred stock dividend limitation has arisen with respect thereto(partial dividend payments are made to the extent applicable); and(3) no Distributable Amounts Limitation Certificate(4) has been
issued with respect thereto (partial dividends are paid to the extent
applicable).

Distributableamounts limitation

When Mizuho Financial Group issues a Distributable Amounts
Limitation Certificate(4) to MPC, dividends are limited to the
Available Distributable Amounts(3).

When Mizuho Financial Group issues a Distributable Amounts
Limitation Certificate(4) to MPC1, dividends are limited to the
Available Distributable Amounts(3).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(2) are
reduced, dividends on Parity Preferred Securities(6) are also reduced
by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(2) are
reduced, dividends on Parity Preferred Securities(6) are also reduced
by an equal percentage.

Claims on residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(2)Same priority as Mizuho Financial Group's Preferred Stock(2)IssuerMizuho Capital Investment (USD) 1 Limited (“MCI (USD) 1,” andthe preferred securities described below are referred to as “MCI
(USD) 1 Preferred Securities.”)Mizuho Capital Investment (EUR) 1 Limited (“MCI (EUR) 1,” andthe preferred securities described below are referred to as “MCI
(EUR) 1 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Starting from the dividend payment date falling in June 2016,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Starting from the dividend payment date falling in June 2011,
optionally redeemable on each dividend payment date in five-year
intervals (subject to prior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2016. Dividend payments that are suspended are
non-cumulative.)

Fixed dividend rate for the first five years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2011. Dividend payments that are suspended are
non-cumulative.)

Dividend payment
date

June 30th and December 30th of each year

June 30th of each year until June 2011, and June 30th andDecember 30th of each year thereafter

Total amount issued

US$600 million=C500 million

Issue date

March 13, 2006

March 13, 2006

Dividend suspension
events(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(11) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (USD) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (USD) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(USD) 1.

(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(12) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (EUR) 1 Preferred Securities, and Mizuho Financial Groupissues a dividend suspension notice to MCI (EUR) 1; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(EUR) 1

Mandatory
dividend event

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (USD) 1 Preferred Securities must be made on thedividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

If Mizuho Financial Group pays any dividends on its common stockwith respect to a fiscal year, dividend payments for the fullamount of MCI (EUR) 1 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (USD) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(11).

Dividends for the MCI (EUR) 1 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(12).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (USD) 1 Preferred Securities arealso reduced by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (EUR) 1 Preferred Securities are also
reduced by an equal percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(13)Same priority as Mizuho Financial Group's Preferred Stock(13)199

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

200

IssuerMizuho Capital Investment (JPY) 1 Limited(“MCI (JPY) 1,” and the preferred
securities described below are referred toas “MCI (JPY) 1 Preferred Securities.”)Mizuho Capital Investment (JPY) 2 Limited(“MCI (JPY) 2,” and the preferred
securities described below are referred toas “MCI (JPY) 2 Preferred Securities.”)Mizuho Capital Investment (JPY) 3 Limited(“MCI (JPY) 3,” and the preferred
securities described below (Series A and
Series B) are collectively referred to as“MCI (JPY) 3 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Non-cumulative perpetual preferred
securities

Mandatory
redemption date

None

None

None

Optional
redemption

Starting from the dividend payment datefalling in June 2016, optionally redeemableon each dividend payment date in five-year
intervals (subject to prior approval from
regulatory authorities)

Starting from the dividend payment datefalling in June 2018, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Starting from the dividend payment datefalling in June 2019, optionally redeemableon each dividend payment date (subject toprior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2016. Dividend paymentsthat are suspended are non-cumulative.)

Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2018. Dividend paymentsthat are suspended are non-cumulative.)

Series A
Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2019. Dividend paymentsthat are suspended are non-cumulative.)
Series B
Fixed dividend rate for the first ten years(although a floating dividend rate isapplied with respect to dividend payment
dates after June 2019. Dividend paymentsthat are suspended are non-cumulative.)

Dividend payment
date

June 30th and December 30th of eachyear

June 30th and December 30th of eachyear

June 30th and December 30th of eachyear

Total amount issued¥400 billion¥274.5 billion

Series A ¥249.5 billion
Series B ¥ 53.5 billion

Issue date

January 12, 2007

January 11, 2008

July 11, 2008

Dividend suspension
events(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(14) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 1 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 1; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 1(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(15) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 2 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 2; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 2(Mandatory dividend suspension or
reduction event)(1) When a Liquidation Event(7),Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has
occurred to Mizuho Financial Group;(2) when Mizuho Financial Group's
Available Distributable Amounts(16) isinsufficient, or dividends on its
preferred stock(13) are suspended or
reduced;(Optional dividend suspension or reduction
event)(3) when the capital adequacy ratio of
Mizuho Financial Group or its Tier 1
capital ratio fails to meet the minimum
requirement, or would fall short as aresult of the dividend payments on the
MCI (JPY) 3 Preferred Securities andwhen Mizuho Financial Group issues adividend suspension notice to MCI(JPY) 3; and(4) when Mizuho Financial Group fails to
pay dividends on its common stock andissues a dividend suspension notice to
MCI (JPY) 3

Mandatory dividend
event

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 1 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 2 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

If Mizuho Financial Group pays any
dividends on its common stock to holdersof record as of a prescribed record date in
the immediately preceding fiscal year,
dividend payments for the full amount of
MCI (JPY) 3 Preferred Securities must be
made on dividend payment dates during
the subsequent fiscal year; provided thatno event for the mandatory suspension or
reduction of dividends has occurred andthat no dividend suspension notice has
been issued in conjunction with theoccurrence of an optional dividend
suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (JPY) 1 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(14).

Dividends for the MCI (JPY) 2 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(15).

Dividends for the MCI (JPY) 3 preferred
securities are paid to the extent of Mizuho
Financial Group's Available Distributable
Amounts(16).

Dividend limitations

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 1 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 2 Preferred
securities are also reduced by an equal
percentage.

When dividends on Mizuho Financial
Group's Preferred Stock(13) are reduced,
dividends on MCI (JPY) 3 Preferred
securities are also reduced by an equal
percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)Same priority as Mizuho Financial Group's
Preferred Stock(13)IssuerMizuho Capital Investment (JPY) 4 Limited (“MCI (JPY) 4,” and thepreferred securities described below are referred to as “MCI (JPY)
4 Preferred Securities.”)Mizuho Capital Investment (USD) 2 Limited (“MCI (USD) 2,” andthe preferred securities described below are referred to as “MCI
(USD) 2 Preferred Securities.”)

Type of securities

Non-cumulative perpetual preferred securities

Non-cumulative perpetual preferred securities

Mandatory
redemption date

None

None

Optional
redemption

Starting from the dividend payment date falling in June 2015,
optionally redeemable on each dividend payment date (subject toprior approval from regulatory authorities)

Starting from the dividend payment date falling in June 2014,
optionally redeemable on each dividend payment date (subject toprior approval from regulatory authorities)

Dividends

Fixed dividend rate for the first seven years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2015. Dividend payments that are suspended are
non-cumulative.)

Fixed dividend rate for the first five years (although a floating
dividend rate is applied with respect to dividend payment dates
after June 2014. Dividend payments that are suspended are
non-cumulative.)

Dividend payment
date

March 31, 2009 and June 30th and December 30th of each year

June 30th and December 30th of each year

Total amount issued¥355 billion$850 million

Issue date

December 29, 2008

February 27, 2009

Dividend suspension
events(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(17) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (JPY) 4 Preferred Securities and when Mizuho Financial
Group issues a dividend suspension notice to MCI (JPY) 4; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(JPY) 4

(Mandatory dividend suspension or reduction event)(1) When a Liquidation Event(7), Reorganization Event(8), Insolvency
Event(9) or Governmental Action(10) has occurred to Mizuho
Financial Group;(2) when Mizuho Financial Group's Available Distributable
Amounts(18) is insufficient, or dividends on its preferred stock(13)are suspended or reduced;(Optional dividend suspension or reduction event)(3) when the capital adequacy ratio of Mizuho Financial Group or
its Tier 1 capital ratio fails to meet the minimum requirement,
or would fall short as a result of the dividend payments on the
MCI (USD) 2 Preferred Securities and when Mizuho Financial
Group issues a dividend suspension notice to MCI (USD) 2; and(4) when Mizuho Financial Group fails to pay dividends on its
common stock and issues a dividend suspension notice to MCI(USD) 2201

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Mandatory
dividend event

If Mizuho Financial Group pays any dividends on its common stock
to holders of record as of a prescribed record date in theimmediately preceding fiscal year, dividend payments for the fullamount of MCI (JPY) 4 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

If Mizuho Financial Group pays any dividends on its common stock
to holders of record as of a prescribed record date in theimmediately preceding fiscal year, dividend payments for the fullamount of MCI (USD) 2 Preferred Securities must be made on
dividend payment dates during the subsequent fiscal year;
provided that no event for the mandatory suspension or reductionof dividends has occurred and that no dividend suspension notice
has been issued in conjunction with the occurrence of an optional
dividend suspension or reduction event.

Distributableamounts limitation

Dividends for the MCI (JPY) 4 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(17).

Dividends for the MCI (USD) 2 preferred securities are paid to theextent of Mizuho Financial Group's Available Distributable
Amounts(18).

Dividend limitations

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (JPY) 4 Preferred securities are also
reduced by an equal percentage.

When dividends on Mizuho Financial Group's Preferred Stock(13)are reduced, dividends on MCI (USD) 2 Preferred securities are also
reduced by an equal percentage.

Claims for residual
assetsSame priority as Mizuho Financial Group's Preferred Stock(13)Same priority as Mizuho Financial Group's Preferred Stock(13)Notes:(1) Loss Absorption Certificate
Refers to a certificate that Mizuho Financial Group delivers to the issuer (in case of the loss
absorption event set forth in clause (iv) below, the issuance thereof is at our discretion) upon
any of the following events with respect to Mizuho Financial Group: (i) liquidation event thatshall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (a) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (b) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group; (ii)reorganization event that shall be deemed to occur if a competent court in Japan shall haveadjudicated (a) the commencement of a corporate reorganization proceeding of Mizuho
Financial Group under the Corporate Reorganization Law or (b) the commencement of a civil
rehabilitation proceeding of Mizuho Financial Group under the Civil Rehabilitation Law; (iii)
governmental action that shall be deemed to occur if the government authority in Japan (a)publicly declares Mizuho Financial Group is not able to pay its debts as they become due, (b)publicly declares Mizuho Financial Group's liabilities exceed its assets, (c) publicly declares
Mizuho Financial Group to be under public management or (d) issues an order that Mizuho
Financial Group be transferred to a third party; (iv) inadequate ratio event that shall bedeemed to occur if capital adequacy ratio or Tier 1 capital ratio fails to meet the minimum
requirement or would fall short as a result of a dividend payment on the relevant preferred
securities; (v) default event that shall be deemed to occur if Mizuho Financial Group is notable to pay its debts as they become due or would not be able to do so as a result of adividend payment on the relevant preferred securities; or (vi) insolvency event shall be deemed
to occur if the liabilities of Mizuho Financial Group exceeds its assets or would exceed its
assets as a result of a dividend payment on the relevant preferred securities.
(2) Preferred Stock
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments. It includes such preferred stocks that are issued in the future.
(3) Available Distributable Amounts
Refers to the maximum amount available for dividends (“Distributable Amounts”) calculated
based on the immediately preceding fiscal year's financial statements, less the aggregate
amount of dividends paid previously during the current fiscal year and scheduled to be paid
thereafter in respect of such fiscal year in respect of any Preferred Stock (provided that eachinterim dividend payment on Preferred Stock to be paid during such current Fiscal Year shallbe excluded in calculating Available Distributable Amounts). Notwithstanding the foregoing, if
there are securities issued by a company other than Mizuho Financial Group of which therights to dividends and the rights at the time of liquidation, etc., are determined by reference
to the financial condition and results of operation of Mizuho Financial Group and which rank,
in relation to MPC (with respect to the columns for MPC1, MPC5, MPC6 and MPC7, “MPC”
refers to MPC1, MPC5, MPC6 and MPC7, respectively), equal in point of subordination as theParity Preferred Securities (“Parallel Preferred Securities”), the Available Distributable Amounts
are adjusted as follows:
Available Distributable Amounts after the adjustment = Available Distributable Amounts x(Total of full dividend payment amount for Parity Preferred Securities in such fiscal year) /(Total of full dividend payment amount for Parity Preferred Securities in such fiscal year +Total amount of full dividend payment amount for Parallel Securities in such fiscal year)(4) Distributable Amounts Limitation Certificate
Refers to a certificate issued by Mizuho Financial Group on or before the annual general
meeting of shareholders to issuers if Available Distributable Amounts falls short of total
dividends to be paid on the dividend payment date, which shall set forth the Available
Distributable Amounts of such fiscal year.
(5) Mandatory Dividend Payment Date
Refers to a dividend payment date in June of a calendar year when a fiscal year of Mizuho
Financial Group ends with respect to which it paid dividends on its common stock.

202(6) Parity Preferred Securities
Refers to the collective designation for preferred securities and MPC Preferred Securities
issued by MPC (with respect to the columns for MPC1, MPC5, MPC6 and MPC7, “MPC”
refers to MPC1, MPC5, MPC6 and MPC7, respectively) which are perpetual and the dividend
payment dates and the use of proceeds are the same as that of the relevant MPC Preferred
Securities (or MPC1 Preferred Securities, MPC5 Preferred Securities, MPC6 Preferred Securities
or MPC7 Preferred Securities, as the case may be). (In the case of MPC6, for example, Parity
Preferred Securities are the collective designation that includes Series A, Series B as well asother preferred securities that satisfy the above conditions if newly issued in the future.)(7) Liquidation Event
Shall be deemed to occur where a liquidation proceeding is commenced by or against Mizuho
Financial Group or a competent court in Japan shall have (i) adjudicated Mizuho Financial
Group to be subject to bankruptcy proceedings or (ii) approved a preparation of areorganization plan for abolishment of all business of Mizuho Financial Group.
(8) Reorganization Event
Shall be deemed to occur if a competent court in Japan shall have adjudicated (i) thecommencement of a corporate reorganization proceeding of Mizuho Financial Group under
the Corporate Reorganization Law or (ii) the commencement of a civil rehabilitation
proceeding of Mizuho Financial Group under the Civil Rehabilitation Law.
(9) Insolvency Event
Shall be deemed to occur if (i) Mizuho Financial Group is not able to pay its debts as they
become due or would not be able to do so as a result of a dividend payment on the relevant
preferred securities, or (ii) if the liabilities of Mizuho Financial Group exceeds its assets orwould exceed its assets as a result of a dividend payment on the relevant preferred securities.
(10)Governmental Action
Shall be deemed to occur if the government authority in Japan (i) publicly declares Mizuho
Financial Group is not able to pay its debts as they become due, (ii) publicly declares Mizuho
Financial Group's liabilities exceed its assets, (iii) publicly declares Mizuho Financial Group to
be under public management or (iv) issues an order that Mizuho Financial Group betransferred to a third party.
(11)Available Distributable Amounts for MCI (USD) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (USD) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (USD) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (USD) 1 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (USD) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (USD) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (USD) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(12)Available Distributable Amounts for MCI (EUR) 1 Preferred Securities(Up to the dividend payment date falling in June 2011)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial

statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend payment
amount on preferred securities for the then current fiscal year that are equivalently
subordinated in nature with MCI (EUR) 1 Preferred Securities (“Equivalent Securities”).
(From the dividend payment date falling in December 2011)(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend payment amount on MCI (EUR) 1 Preferred Securities and the full dividend amounton Equivalent Securities to which dividends are paid in whole or in part or declared to be paidon or prior to the relevant dividend payment date of MCI (EUR) 1 Preferred Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (EUR) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date falling in June,
pro-rated between full dividends on MCI (EUR) 1 Preferred Securities for the dividend
payment date falling in December and full dividends on Equivalent Securities paid in whole orin part or declared to be paid from the day after the dividend payment date of MCI (EUR) 1
Preferred Securities falling in June up to the dividend payment date falling in December.
(13)Preferred Stocks
Refers to preferred stock of Mizuho Financial Group qualifying as Tier 1 capital and ranking
most senior compared to other preferred stock of Mizuho Financial Group as to dividend
payments and claims to residual assets.
(14)Available Distributable Amounts for the MCI (JPY) 1 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 1 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 1 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 1 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 1 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 1 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 1 Preferred
Securities falling in June up to the dividend payment date falling in December.
(15)Available Distributable Amounts for the MCI (JPY) 2 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 2 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 2 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 2 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 2 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 2 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 2 Preferred
Securities falling in June up to the dividend payment date falling in December.
(16)Available Distributable Amounts for the MCI (JPY) 3 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 3 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (JPY) 3 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (JPY) 3 Preferred

Securities.
(ii) Amount available in December (except for the amount available in December 2008)
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 3 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 3 Preferred
Securities falling in June up to the dividend payment date falling in December.
(iii) Amount available in December 2008
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends
on Equivalent Securities paid or declared to be paid from April 1, 2008 to June 30, 2008, prorated between full dividends on MCI (JPY) 3 Preferred Securities for the dividend payment
date falling in December 2008 and full dividends on Equivalent Securities paid in whole or inpart or declared to be paid from the day after June 30, 2008 up to the dividend payment datefalling in December 2008.
(17)Available Distributable Amounts for the MCI (JPY) 4 Preferred Securities(i) Amount available in March 2009
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the fiscal year ended March 31, 2008, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments) and (B) the dividends
on Equivalent Securities paid or declared to be paid from April 1, 2008 to December 30,
2008, pro-rated between the full dividend amount on MCI (JPY) 4 Preferred Securities and thefull dividend amount on preferred securities that are equivalently subordinated in nature withMCI (JPY) 4 Preferred Securities (“Equivalent Securities”) to which dividends are paid in whole
or in part or declared to be paid on or prior to the relevant dividend payment date of MCI(JPY) 4 Preferred Securities.
(ii) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (JPY) 4 Preferred Securities and the full dividend amount on
Equivalent Securities to which dividends are paid in whole or in part or declared to be paid onor prior to the relevant dividend payment date of MCI (JPY) 4 Preferred Securities.
(iii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (JPY) 4 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (JPY) 4 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (JPY) 4 Preferred
Securities falling in June up to the dividend payment date falling in December.
(18)Available Distributable Amounts for the MCI (USD) 2 Preferred Securities(i) Amount available in June
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less the amount of dividend payments
on Preferred Stock(13) (excluding interim dividend payments), pro-rated between the full
dividend amount on MCI (USD) 2 Preferred Securities and the full dividend amount on
preferred securities that are equivalently subordinated in nature with MCI (USD) 2 Preferred
Securities (“Equivalent Securities”) to which dividends are paid in whole or in part or declared
to be paid on or prior to the relevant dividend payment date of MCI (USD) 2 Preferred
Securities.
(ii) Amount available in December
Refers to Distributable Amounts of Mizuho Financial Group calculated based on the financial
statements for the immediately preceding fiscal year, less (A) the amount of dividend
payments on Preferred Stock(13) (excluding interim dividend payments), (B) the amount ofdividend payments on MCI (USD) 2 Preferred Securities made or declared to be made on or
prior to the dividend payment date falling in June and (C) the dividends on Equivalent
Securities paid or declared to be paid on or prior to the dividend payment date in June, prorated between full dividends on MCI (USD) 2 Preferred Securities for the dividend payment
date falling in December and full dividends on Equivalent Securities paid in whole or in part or
declared to be paid from the day after the dividend payment date of MCI (USD) 2 Preferred
Securities falling in June up to the dividend payment date falling in December.

203

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Summary of Preferred Stock
The preferred stocks that have been issued as stated below are included in Tier 1 capital of Mizuho Financial Group's consolidated
capital adequacy ratio.
Eleventh Series Class XI Preferred Stock
Amount outstanding as of fiscal
year end (excluding treasury
stock)¥911.95 billion¥36.69 billion

Preferred dividend payment

An annual dividend payment of ¥20 per preferred share toholders of preferred stock in priority to dividend payments
to holders of common stock.

An annual dividend payment of ¥30 per preferred share toholders of preferred stock in priority to dividend payments
to holders of common stock.

Non-cumulative clauseIn the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

In the event that all or part of the preferred dividends are
not paid during a given fiscal year, the shortfall is notaccumulated in or beyond the following fiscal year.

Non-participation clauseNo distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

No distribution of surplus exceeding the preferred dividend
payment is made to holders of preferred stock.

Preferred interim dividend
payment

If an interim dividend payment is made, ¥10 per share is tobe paid in priority to holders of common stock.

If an interim dividend payment is made, ¥15 per share is tobe paid in priority to holders of common stock.

Distribution of residual assets¥1,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

¥1,000 per preferred share is to be paid in priority toholders of common stock and no other distribution ofresidual assets is to be made.

(1)

Conversion
requestConversion
periodFrom July 1, 2008 to June 30, 2016.

Conversion
price¥322.00

Reset ofconversion
price

On July 1 of each year from July 1, 2009 to July 1, 2015
(hereafter, “Conversion Price Reset Date”), in the event themarket price of common stock on such date is below theeffective conversion price on the day before the relevant
Conversion Price Reset Date, the reset price is to be
adjusted as of the relevant Conversion Price Reset Date tosuch market price (minimum: ¥322), where market price isdefined as the average of the daily closing prices ofcommon stock as reported by the Tokyo Stock Exchange
for the 30 consecutive trading days commencing on the
45th trading day prior to the Conversion Price Reset Date.

n.a.

Adjustment of
the conversion
price

Adjustments to the conversion price are to be made upon
the issuance or disposition of common stock at a pricelower than the market price and in other specified
circumstances.

n.a.

Number ofshares ofcommon stock
to be provided
upon
conversion

The number obtained by dividing (i) the total issue price ofthe preferred stock submitted in connection with theconversion request by the holders of such preferred stockby (ii) the conversion price.

Mandatory conversion ofpreferred stock

204

Thirteenth Series Class XIII Preferred Stock

Mizuho Financial Group shall acquire on July 1, 2016 any
preferred stock in respect of which a request for conversion
has not been made by June 30, 2016 and deliver common
stock to the holder of such preferred stock. The number ofshares of common stock to be delivered is obtained by
dividing ¥1,000 by the average of the daily closing prices ofcommon stock as reported by the Tokyo Stock Exchange
for the 30 consecutive trading days commencing on the
45th trading day prior to July 1, 2016 (minimum: ¥322).

n.a.

n.a.

n.a.

n.a.

n.a.

On or after April 1, 2013, as determined by a resolution of
the general meeting of shareholders, all or a portion of thepreferred stock can be repurchased at the conversion priceset forth below.
The conversion price per share will be the sum of ¥1,000
and the preferred dividend pro-rated for the number ofdays from the first day of the fiscal year during which theconversion date falls; provided, however, that if preferredinterim dividends are paid, the conversion price per share is
to be reduced by the amount of such interim dividend.

Voting rights

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

The holders of preferred stock shall not have voting rights
at a general meeting of shareholders; provided, however,that the holders of preferred stock may have voting rightsfrom the date of a general meeting of shareholders if a
proposal for the payment of preferred dividends is not
submitted to such general meeting of shareholders, orimmediately after the closing of a general meeting ofshareholders if a proposal on the preferred dividends isrejected at such general meeting of shareholders, until, ineither case, such time as a resolution of a general meetingof shareholders for the payment of preferred dividends isapproved.

Preferential status

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

All classes of preferred stock rank pari passu with respect topreferred dividends, preferred interim dividends andresidual assets.

Conversion clauseNotes:(1) Conversion of the preferred stock is conducted through the acquisition of the relevant shares of preferred stock by Mizuho Financial Group followed by the delivery of the applicable number ofshares of common stock. As such, the word “acquisition” is used in lieu of “conversion” in our articles of incorporation. Conversion price (¥322.00) refers to the effective conversion price as of July
1, 2009.

(c) Summary of Debt Capital Instruments
1. Summary
The following debt capital instruments are included in Tier 2 capital:• Perpetual subordinated debt;• Dated subordinated debt; and• Dated preferred stock.
Of the above, perpetual subordinated debt and dated subordinated debt are in the form of subordinated bonds with subordination clause (corporate bonds with subordination clause) or subordinated loans (borrowing by means of loan agreement withsubordination clause) (collectively, “Subordinated Bonds, Etc.”). Specifically, such debt capital is raised as follows:(1) Subordinated bonds offered to investors in Japan and abroad;(2) Subordinated bonds using a Euro MTN program, etc.; and(3) Subordinated loans.
The Subordinated Bonds, Etc., are issued by or loaned to Mizuho Financial Group, its banking subsidiaries or overseas consolidated SPC subsidiaries.
In each case, the above instruments are based on terms that are in accordance with relevant public notices and supervisory
guidelines of the Financial Services Agency so as to ensure eligibility as Tier 2 capital.
At present, we have no dated preferred stock outstanding.
2. Subordination clause
Subordinated Bonds, Etc., include subordination clauses pursuant to which, in the event that certain grounds for subordinationarise, payments of principal and interest on the relevant Subordinated Bonds, Etc., are ranked lower in priority compared to the
execution of obligations relating to more senior claims which are obligations other than those that rank pari passu or junior tosuch Subordinated Bonds, Etc. (concerning the rights of holders of Subordinated Bonds, Etc., that seek payment, the order of priority in receiving payments in bankruptcy proceedings is junior to subordinated bankrupt claims as set forth in the Bankruptcy
Law). As a result, senior creditors have priority over holders of Subordinated Bonds, Etc., in the event of bankruptcy, corporate
reorganization and civil rehabilitation proceedings, etc.

205

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

3. Perpetual subordinated debt
Perpetual subordinated debt is a debt capital instrument with all of the following features:(1) Unsecured, fully paid and subordinated to other obligations;(2) Not redeemable or repayable, except when it is optional and the debtor anticipates that a sufficient capital adequacy ratio will
be maintained after such redemption or repayment or in connection with the raising of capital in an amount equal to or inexcess of the amount to be redeemed or repaid;(3) Applicable to absorb losses while the obligor continues to do business; and(4) Contains a provision that allows a deferred payment of interest.
4. Dated subordinated debt
Dated subordinated debt differs from perpetual subordinated debt in that it has a fixed redemption or repayment term of morethan five years.
In the case of both perpetual subordinated debt and dated subordinated debt, if a step-up in interest is provided for, the application of such step-up must be made at a time five years or more from the issue or loan date so as to prevent the interest to be
paid after step-up from being excessive, and the amount of step-up must be within the limit that the Financial Services Agency
determines in supervisory guidelines.

4. Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct the following assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring structure.
Maintaining a Sufficient BIS Capital Adequacy Ratio and Tier 1 Capital Ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether our
risk-based capital is adequate in qualitative as well as quantitative terms, in the light of our business plans and strategic targets tomatch the increase in risk-weighted assets acquired for growth, in addition to maintaining risk-based capital that exceeds theminimum requirements (8% under BIS standards, 4% under domestic standards).
Balancing Risk and CapitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group's overall risk
exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating capitalthat corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc. within the bounds of ourcapital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we examine whether an appropriate return on risk is maintained in addition to considering the effects
that interest rate risk related to our banking book, credit concentration risk and stress tests have on our capital.

206

5. Required Capital by Portfolio Classification
Billions of yen

2009
EAD
Required Capital

As of March 31,

Credit Risk
Internal Ratings-based Approach
Corporate (except Specialized Lending)Corporate (Specialized Lending)
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
Equities, etc.
PD/LGD Approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)Transitional Measure Applied
Regarded-method Exposure
Purchase Receivables
Securitizations
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
Others¥ 155,523.8
146,711.0
55,192.8
2,968.4
54,333.2
6,557.2
13,144.5
10,555.5336.7
2,252.2
3,538.9
817.4
332.0
—
2,389.5882.1
2,071.3
5,645.3
2,376.7
8,812.8
3,510.6
2,302.8
2,405.6
0.0
37.1
556.5

5,915.4
5,610.3
3,445.7
314.3
64.0
188.6
552.4
366.0
29.9
156.4
425.5
133.5
89.4
—
202.6
246.7
102.0
80.5
190.3
305.0
2.1
41.2
182.0
0.0
35.9
43.6

¥ 148,523.2
138,667.2
55,036.7
2,909.7
41,705.9
7,914.3
12,943.7
10,309.2
329.0
2,305.5
5,086.8
1,060.9277.6—
3,748.2
1,511.9
2,852.6
6,484.6
2,220.5
9,855.9
3,672.2
2,841.0
2,455.3
0.0
67.2
819.9

/

107.3

/

164.2

Standardized Approach
Interest Rate Risk
Equities Risk
Foreign Exchange Risk
Commodities Risk
Option Transactions

/
/
/
/
/
/

64.1
53.3
1.8
1.7
7.1
—

/
/
/
/
/
/

112.9
84.1
18.1
4.1
6.4
—

Internal Models Approach

/

43.2

/

51.2

Market Risk

Operational Risk (Standardized Approach)Total Required Capital (Consolidated)

¥

2008
EAD
Required Capital

/
¥

/

278.5
¥

4,724.4¥/¥/

6,261.6
5,931.0
3,470.1
279.0
63.7
118.0
555.3
386.7
23.0
145.5
628.0
234.3
75.8
—
317.8
359.1
118.8
160.5
178.0
330.6
3.3
48.8
183.2
0.0
30.4
64.8

290.8
¥

5,269.8

Notes: 1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deduction from capital. For
market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:
Corporate (excluding Specialized Lending): Credit to corporations and sole proprietors (excluding credit to retail customers)
Corporate (Specialized Lending): Credit that limits interest and principal repayment sources to cash flow derived from specific real estate,chattel, businesses, etc.
Sovereign: Credit to central governments, central banks and local governmental entities
Bank: Credits to banks and securities companies, etc.
Retail: Housing loans (residential mortgage), credit card loans (qualifying revolving retail loans) and other individual consumer loans andloans to business enterprises with total credit amount of less than ¥100 million (other retail), etc.
Equities, etc.: Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)* The transitional measure applies to those held from September 30, 2004 or earlier, and others are applied either the PD/LGD approachor the market-based approach.
Regarded-method Exposure: Investment trusts and funds, etc.
Purchase Receivables: Receivables purchased from third parties excluding securities (excluding securitizations)
Securitizations: Transactions in the form of “non-recourse” or having a “senior/subordinated structure” (excluding specialized lending)
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.

207

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Credit Risk
6. Credit Risk Management
Summary of Credit Risk Management
See pages 57 to 61 for a summary of our credit risk management policies and procedures.
We have adopted the advanced internal ratings-based approach since March 31, 2009 in place of the foundation internalratings-based approach that we had been using previously to calculate credit risk-weighted assets under Basel II. With regard tosome business units or asset classes that are deemed to be immaterial for purposes of calculating credit risk-weighted assets, weapply the standardized approach.
In connection with the adoption of the advanced internal ratings-based approach, we use our estimates of LGD (loss given
default), in addition to PD (probability of default). We use these estimates not only to calculate credit risk-weighted assets but also
for purposes of internal credit risk measurement and risk capital allocations. In accordance with regulations, we estimate PD byusing long-term averages of actual defaults, to which conservative adjustments are made, based on internal data, and makeadjustments to LGD in light of recessionary periods. We regularly perform verifications of PD and LGD through back testing andother methods.
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 58 to 59 for a summary of our internal rating system and rating assignment procedures.

208

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, 2009 and 2008.

Status of Credit Risk Exposure(a) Breakdown by Geographical Area
Billions of yen

As of March 31, 2009

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives¥ 81,273.6
16,523.9
2,938.3
1,987.5
6,114.8
80.9
4,077.0
1,325.2¥ 97,797.6/¥ 24,104.3
3,911.3
451.5
148.3
2,072.6—
1,104.9
133.9¥ 28,015.7/¥ 2,533.7
3,033.5
164.3
196.8
943.7
0.1
1,596.1
132.2¥ 5,567.3/¥¥

OthersTotal

5,460.4
3,342.4448.6
6.1
2,010.7
1.3
809.8
65.6
8,802.8/¥ 113,372.2
26,811.3
4,002.8
2,338.9
11,142.0
82.4
7,587.9
1,657.1¥ 140,183.5
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2008

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives¥ 70,384.1
16,931.7
3,199.2
1,721.4
5,659.0
86.1
4,669.5
1,596.3¥ 87,315.9/¥ 24,070.6
6,822.8
426.1
108.0
4,237.5—
1,862.5
188.5¥ 30,893.5/¥ 2,333.3
3,578.0
125.2
182.5
1,204.8
0.3
1,984.8
80.2¥ 5,911.3/¥¥

OthersTotal

5,338.5
1,211.3
457.4
7.6
196.7
2.7
415.0
131.5
6,549.8/¥ 102,126.6
28,544.0
4,208.1
2,019.7
11,298.1
89.2
8,931.9
1,996.7¥ 130,670.6
9,788.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

209

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Breakdown by Industry
Billions of yen

As of March 31, 2009

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 15,472.0
1,946.9
6,919.1
7,325.7
8,190.2
10,186.4
13,042.1
12,367.8
22,347.0¥ 97,797.6/

Securities¥

2,067.8
218.4
561.4
553.8
590.4
1,457.2—
4,070.4
18,495.8¥ 28,015.7/

OTC derivatives

¥

694.3
22.1
57.0
249.8
746.8
3,066.4
0.3
724.4
5.8
¥ 5,567.3/

Others

¥

¥

199.8
13.9
53.1
22.8
364.4
1,355.3
17.0
4,957.8
1,818.5
8,802.8
/

Total

¥

18,434.1
2,201.4
7,590.7
8,152.2
9,891.8
16,065.5
13,059.5
22,120.5
42,667.3¥ 140,183.5
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. We partially changed the method of industry breakdown as of March 31, 2009. As a result, ¥384.1 billion was recategorized from“Services Industries” to “Finance and insurance.”
Billions of yen

As of March 31, 2008

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersJapanese Government; Bank of Japan
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 14,412.7
1,900.5
7,526.9
7,461.4
8,356.7
9,922.3
12,839.8
11,756.7
13,138.4¥ 87,315.9/

Securities¥

2,973.5
201.7
604.4
538.7
804.4
2,284.8—
6,778.7
16,706.8¥ 30,893.5/

OTC derivatives

¥

626.9
25.0
54.1
244.8
793.4
3,656.6
0.3
504.9
5.1
¥ 5,911.3/

Others

¥

¥

275.2
14.8
93.5
150.2
447.4
1,778.8
18.0
2,846.0
925.4
6,549.8
/

Total

¥

18,288.4
2,142.1
8,279.0
8,395.3
10,402.1
17,642.7
12,858.2
21,886.5
30,775.9¥ 130,670.6
9,788.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

210

(c) Breakdown by Residual Contractual Maturity
Billions of yen

As of March 31, 2009

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthers
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 34,163.4
14,676.3
11,854.1
21,898.0
15,205.5¥ 97,797.6/

Securities¥

8,750.1
7,772.1
3,354.8
4,707.3
3,431.0¥ 28,015.7/

OTC derivatives

¥

611.8
2,562.4
1,209.7
1,077.0
106.1¥ 5,567.3/

Others¥¥1,424.2
37.9
8.1
24.5
7,307.9
8,802.8
/

Total

¥

44,949.7
25,048.9
16,426.9
27,707.1
26,050.7¥ 140,183.5
8,775.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2008

Less than One Year
From One Year to Less than Three Years
From Three Years to Less than Five Years
Five Years or MoreOthers
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures¥ 29,969.0
12,883.0
13,297.5
21,922.5
9,243.6¥ 87,315.9/

Securities¥

9,586.2
7,082.8
3,397.0
5,810.5
5,016.7¥ 30,893.5/

OTC derivatives

¥

492.3
2,717.9
1,510.3
1,074.2
116.5¥ 5,911.3/

Others¥¥

1,652.0
796.0
47.9
34.1
4,019.6
6,549.8
/

Total

¥

41,699.6
23,479.9
18,252.8
28,841.4
18,396.6¥ 130,670.6
9,788.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

211

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Status of Exposure Past Due Three Months or More or in Default(d) Breakdown by Geographical Area
Billions of yen

As of March 31, 2009

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,763.3
225.5
43.5
0.4
50.8
6.8
95.1
28.6
¥ 1,988.8/¥ 70.4
0.2
0.0
0.0
0.2
—
—
—
¥ 70.7/¥ 36.1
2.9
0.0
—
1.2
—
0.4
1.2
¥ 39.0/¥ 70.3
25.9
4.6
0.0
16.8
0.0
4.3
0.0
¥ 96.3/¥ 1,940.3
254.6
48.2
0.4
69.2
6.8
99.9
29.9
¥ 2,194.9
5.8

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
Billions of yen

As of March 31, 2008

Domestic
Overseas
Asia
Central and South America
North America
Eastern Europe
Western Europe
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

Securities

OTC derivatives

OthersTotal¥ 1,735.2
114.5
27.3
0.1
22.5
0.5
58.7
5.3
¥ 1,849.7/¥ 187.2
0.0
0.0
0.0
—
—
—
—
¥ 187.2/¥ 25.6
0.3
0.0
—
—
—
0.3
—
¥ 26.0/¥ 38.7
5.1
4.2
0.0
0.0
—
0.7
—
¥ 43.8/¥ 1,986.8
120.0
31.6
0.1
22.5
0.5
59.8
5.3
¥ 2,106.8
3.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. 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.

212

(e) Breakdown by Industry
Billions of yen

As of March 31, 2009

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

388.9
129.1
428.8
320.7
243.5
56.7
169.4
251.3
¥ 1,988.8/

Securities

¥

6.6
11.3
2.9
9.9
6.7
0.8
—
32.1
¥ 70.7/

OTC derivatives

Others¥¥ 18.5
2.7
10.8
7.2
29.5
19.1
1.4
6.7
¥ 96.3
/

6.1
0.7
1.1
3.8
14.7
1.0
0.0
11.3
¥ 39.0
/

Total

¥

420.2
144.0
443.8
341.9
294.5
77.6
170.9
301.7
¥ 2,194.9
5.8

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.
3. We partially changed the method of industry breakdown as of March 31, 2009. As a result, ¥15.0 billion was recategorized from“Services Industries” to “Finance and insurance.”
Billions of yen

As of March 31, 2008

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Others
Total
Exempt Portion

Loans, commitments
and other non-OTC derivative
off-balance-sheet exposures

¥

246.6
105.8
298.3
277.1
326.1
209.7
191.3
194.5
¥ 1,849.7/

Securities

¥

8.2
12.9
0.5
4.4
9.0
117.9
—
34.0
¥ 187.2/

OTC derivatives

Others¥¥ 10.7
0.9
0.6
6.4
11.1
7.0
1.5
5.3
¥ 43.8
/

3.7
1.1
0.3
0.8
8.5
2.5
—
8.7
¥ 26.0
/

Total

¥

269.4
120.8
299.9
288.8
354.8
337.2
192.8
242.8
¥ 2,106.8
3.6

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset
classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

213

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Status of Reserves for Possible Losses on Loans(f) Fiscal Year-End Balances of Reserves for Possible Losses on Loans and Changes during the Fiscal Year(after Partial Direct Write-Offs)
Billions of yen

As of, or for the Fiscal Years ended March 31,

General Reserve for Possible Losses on Loans

Specific Reserve for Possible Losses on Loans

Reserve for Possible Losses on Loans to Restructuring Countries

Total

2009

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

510.9
583.2
510.9
583.2
173.4
305.6
173.4
305.6

2008

¥

0.0
5.0
0.0
5.0

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance¥

684.43
889.5
684.4
889.5

500.8
510.9
500.8
510.9
352.3
173.4
352.3
173.4
3.1
0.0
3.1
0.0

¥

856.3
684.4
856.3
684.4

(g) Specific Reserve for Possible Losses on Loans by Geographical Area and Industry
Billions of yen

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersOverseas
Exempt Portion
Total

2009

¥

¥

218.7
16.1
5.4
50.2
34.6
35.0
2.8
60.0
14.1
80.5
6.4
305.6

2008

¥

¥

144.6
12.0
5.3
10.3
24.7
24.9
4.3
56.8
5.9
24.7
3.9
173.4

Change

¥

¥

74.0)
4.0
0.0
39.9
9.8
10.1
(1.4)
3.2
8.2
55.7
2.4
132.2

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.
Billions of yen

As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersOverseas
Exempt Portion
Total

2008

¥

¥

144.6
12.0
5.3
10.3
24.7
24.9
4.3
56.8
5.9
24.7
3.9
173.4

¥

¥

2007

Change

332.8
15.4
3.2
11.3
16.8
21.6
178.5
64.6
20.9
15.9
3.5
352.3

¥ (188.1))
(3.3)
2.1
(1.0)
7.8
3.2
(174.2)(7.8)(14.9)
8.8
0.3¥ (178.8)

Note: Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.

214

(h) Write-Offs of Loans by Industry
Billions of yen

For the Fiscal Years ended March 31,

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
OthersExempt portion
Total

2009

2008

¥ 32.4
20.8
86.2
10.6
47.7
17.5
3.2
53.0
0.6
¥ 272.3¥ 23.1
7.4
2.7
13.1
35.0
5.4
2.7
37.7
0.5
¥ 128.0

Notes: 1. The above table shows the breakdown of losses on write-offs of loans in our consolidated statement of income.
2. Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial
for purposes of calculating credit risk-weighted assets.
3. “Others” include overseas and non-Japanese resident portions.

Status of Exposure to which the Standardized Approach is Applied(i) Exposure by Risk Weight Category after Applying Credit Risk Mitigation
Billions of yen

On-balance Sheet

Off-balance Sheet

Total

701.9
29.4
439.0
0.0
48.6
2,027.9
0.1
—
—
—
—

¥ 2,699.7
0.0
1,827.7
—
13.2
987.5
0.0
—
—
—
0.0

¥ 3,401.7
29.5
2,266.8
0.0
61.8
3,015.4
0.2
—
—
—
0.0

¥

102.2
—
27.9
—
10.5
9.5
0.0
—
—
—
—

¥ 3,247.2¥ 5,528.4¥ 8,775.6

¥

150.4

As of March 31, 2009

Risk WeightWith external rating

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%

Total¥

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.
Billions of yen

On-balance Sheet

Off-balance Sheet

Total

629.1
12.4
644.9
0.0
95.8
2,515.8
0.0
—
—
—
—

¥ 2,946.8—
2,137.9
—
1.2
804.1
—
—
—
—
0.0

¥ 3,576.0
12.4
2,782.8
0.0
97.0
3,319.9
0.0
—
—
—
0.0

¥

71.5
—
0.6
—
5.9
28.5
—
—
—
—
—

¥ 3,898.3¥ 5,890.2¥ 9,788.6

¥

106.7

As of March 31, 2008

Risk Weight

Total

With external rating

0%
10%
20%
35%
50%
100%
150%
350%
625%
937.5%
1,250%¥

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

215

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(j) Deduction from CapitalBillions of yen

As of March 31,

2009

Deduction from Capital

¥

35.8

2008

¥

29.4

Status of Exposure to which the Internal Ratings-Based Approach is Applied(k) Specialized Lending Exposure under Supervisory Slotting Criteria by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight

2009

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

¥

168.7
860.3
216.9
121.8
307.2
4.5
17.2
363.6
13.4

¥ 2,074.0

2008

¥

180.6
809.9
219.2
99.4
291.9
5.0
2.7
279.5
8.2

¥ 1,896.7(l) Equities Exposure under Simple Risk Weight Method by Risk Weight Category
Billions of yen

As of March 31,

Risk Weight
Total

2009

300%
400%

2008

¥

273.3
58.7

¥

216.0
61.5

¥

332.0

¥

277.6

Note: Of the equity exposure under the simple risk weight method, 300% risk weight is applied for listed equities and 400% for unlisted equities.

216

(m) Portfolio by Asset Class and Ratings Segment (Corporate)
Billions of yen

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Corporate
4.78%
Investment Grade Zone
0.14
Non-investment Grade Zone
3.64
Default
100.0036.19%
37.30
33.26
55.69

/%
/
/
52.55

50.20%
26.40
81.96
41.58

Sovereign
0.01
Investment Grade Zone
0.00
Non-investment Grade Zone
1.59
Default
100.00

39.15
39.15
39.13
45.32

/
/
/
41.17

1.45
1.22
93.74
54.90

54,390.8
54,251.4
139.1
0.2

38,534.3
38,398.7
135.3
0.2

15,856.5
15,852.6
3.8
0.0

81.0
80.6
0.3
—

75.00%
75.00%
75.00%
—%

Bank
0.71
Investment Grade Zone
0.11
Non-investment Grade Zone
2.21
Default
100.00

38.16
37.71
40.12
98.61

/
/
/
96.46

29.14
23.91
93.94
28.50

6,709.6
6,180.4
499.3
29.8

2,508.7
2,254.0226.0
28.6

4,200.8
3,926.3
273.2
1.2

481.6
419.1
62.4
—

77.10%
77.41%
75.00%—%

Equity exposure
under PD/LGD approach
3.20
Investment Grade Zone
0.07
Non-investment Grade Zone
2.38
Default
100.00

90.00
90.00
90.00
90.00

/
/
/
90.00

168.11
119.15306.34
.—

817.4
570.2
226.7
20.3

817.4
570.2
226.7
20.3

—
—
—
—

—
—
—
—

—%
—%
—%
—%

Total
2.38%
Investment Grade Zone
0.06
Non-investment Grade Zone
3.59
Default
100.0038.01%
38.73
33.94
56.73

/%
/
/
53.64

27.71% ¥ 119,866.5 ¥ 85,533.2 ¥ 34,333.3 ¥ 10,681.2
12.08
92,786.8 62,761.6 30,025.2
8,623.1
84.28
25,190.5 20,976.3
4,214.2
2,030.3
40.93
1,889.1
1,795.2
93.9
27.7

75.45%
75.48%
75.27%
76.76%

As of March 31, 2009

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments

Weighted
Averageof Credit
Conversion
Factor(%)¥ 57,948.7 ¥ 43,672.7 ¥ 14,276.0 ¥ 10,118.6
31,784.8 21,538.5 10,246.2
8,123.3
24,325.2 20,388.1
3,937.1
1,967.5
1,838.6
1,745.9
92.6
27.7

75.37%
75.39%
75.27%
76.76%

EAD

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 59 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.

217

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Billions of yen

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

Corporate
4.09%
Investment Grade Zone
0.11
Non-investment Grade Zone
2.58
Default
100.0043.06%
42.95
42.99
46.28

/%
/
/
/

54.17% ¥ 58,585.6 ¥ 42,899.7 ¥ 15,685.8
27.07
32,145.2 20,723.9 11,421.2
93.22
24,713.9 20,544.0
4,169.8.—
1,726.4
1,631.7
94.7

Sovereign
0.01
Investment Grade Zone
0.00
Non-investment Grade Zone
1.05
Default
100.00

44.99
44.99
44.98
45.00

/
/
/
/

1.90
1.63
84.33
.—

41,795.4
41,658.4
136.8
0.1

33,095.0
32,964.6
130.2
0.1

Bank
0.10
Investment Grade Zone
0.07
Non-investment Grade Zone
1.05
Default
100.00

42.13
42.16
41.00
45.00

/
/
/
/

18.41
17.13
67.68
.—

8,141.6
7,934.3
206.9
0.3

Equity exposure
under PD/LGD approach
12.93
Investment Grade Zone
0.06
Non-investment Grade Zone
3.75
Default
100.00

90.00
90.00
90.00
90.00

/
/
/
/

130.66139.41291.43.—

1,060.9
864.3
62.1
134.3

Total
2.32%
Investment Grade Zone
0.05
Non-investment Grade Zone
2.56
Default
100.0044.19%
44.40
43.10
49.43

/%
/
/
/

32.32% ¥ 109,583.6 ¥ 80,118.2 ¥ 29,465.4
14.46
82,602.4 57,501.9 25,100.4
93.45
25,119.9 20,849.7
4,270.2.—
1,861.2
1,766.5
94.7

As of March 31, 2008

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)
(%)
(%)

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥

Weighted
Averageof Credit
Conversion
Factor(%)

/
/
/
/

/%
/%
/%
/%

8,700.3
8,693.7
6.6
—

/
/
/
/

/%
/%
/%
/%

3,062.4
2,948.8
113.1
0.3

5,079.2
4,985.4
93.7
—

/
/
/
/

/%
/%
/%
/%

1,060.9
864.3
62.1
134.3

—
—
—
—

/
/
/
/

/%
/%
/%
/%

/
/
/
/

/%
/%
/%
/%

¥

Notes: 1. Investment grade zone includes obligor ratings A1 to B2, non-investment grade zone includes C1 to E2 (excluding E2R), and default
includes E2R to H1 (see page 59 for details of obligor ratings).
2. “Corporate” does not include specialized lending exposure under supervisory slotting criteria.
3. Each asset class includes purchased receivables.

218

(n) Portfolio by Asset Class and Ratings Segment (Retail)Billions of yen

As of March 31, 2009PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Residential Mortgage
Non-default
Default

1.99%
0.84
100.0041.76%
41.65
51.09

/%
/
48.57

31.99%
31.98
33.17

Qualifying Revolving
Loans (Retail)Non-default
Default

3.63
3.16
100.00

85.54
85.55
84.26

/
/
80.40

72.67
72.79
48.31

336.7
335.1
1.6

234.4
233.1
1.3

Other RetailNon-default
Default

4.20
1.86
100.00

57.27
57.36
53.55

/
/
50.89

58.31
58.89
34.60

2,252.2
2,198.6
53.5

Total
Non-default
Default

2.41%
1.07
100.0045.54%
45.45
52.14

/%
/
49.57

37.54%
37.59
33.74

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥ 10,555.5 ¥ 10,114.0
10,433.3
9,997.5
122.2
116.4

¥ 441.5
435.7
5.7

¥

Weighted
Averageof Credit
Conversion
Factor(%)

11.2
11.2
—

75.00%
75.00%
—%

102.2
102.0
0.2

1,418.2
1,415.7
2.5

7.19%
7.19%
11.39%

2,225.8
2,176.0
49.7

26.3
22.6
3.7

33.4
29.3
4.1

68.08%
64.89%
90.88%¥ 13,144.5 ¥ 12,574.3
12,967.1 12,406.7
177.3
167.5

¥ 570.2
560.4
9.8¥ 1,462.8
1,456.2
6.6

9.11%
8.87%
60.60%

Notes: 1. Each asset class includes purchased receivables.
2. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of
undrawn commitments and weighted average of credit conversion factor.
Billions of yen

As of March 31, 2008

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL Default Risk Weight
(EAD
(EAD
Weighted
Weighted
Average)
Average)(%)(%)

Residential Mortgage
Non-default
Default

1.76%
0.91
100.0046.35%
46.29
53.07

/%
./
49.42

36.39%
36.29
48.31

Qualifying Revolving
Loans (Retail)Non-default
Default

3.42
2.97
100.00

69.87
69.83
77.70

/
./
73.36

57.44
57.44
57.42

329.0
327.4
1.5

232.8
231.5
1.2

96.1
95.8
0.2

1,406.4
1,404.2
2.2

6.81%
6.80%
11.29%

Other RetailNon-default
Default

4.29
1.79
100.00

49.23
49.09
54.62

/
./
50.83

50.72
50.74
50.13

2,305.5
2,246.8
58.7

2,255.8
2,201.5
54.2

49.6
45.2
4.4

58.9
54.4
4.5

76.58%
74.89%
96.80%

Total
Non-default
Default

2.25%
1.12
100.0047.46%
47.39
53.93

/%
./
50.23

39.48%
39.37
49.13¥ 12,943.8 ¥ 12,303.6
12,795.5 12,165.6
148.2
138.0

¥ 640.1
629.9
10.1¥ 1,471.5
1,464.7
6.8

9.99%
9.72%
68.42%

EAD

AmountofOn-balance Off-balance
Undrawn
Sheet
Sheet Commitments¥ 10,309.2 ¥ 9,814.9
10,221.2
9,732.4
87.9
82.4¥ 494.3
488.8
5.5

¥

Weighted
Averageof Credit
Conversion
Factor(%)

6.1 100.00%
6.1 100.00%——%

Notes: 1. Each asset class includes purchased receivables.
2. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of
undrawn commitments and weighted average of credit conversion factor.

219

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(o) Actual Losses by Asset Class
Billions of yen

2009
2008
Actual Losses Actual Losses

For the Fiscal Years ended March 31,

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other RetailTotal¥ 1,137.4
0.0
29.5
79.9
6.8
39.2

¥ 1,001.0
0.0
0.4
75.7
4.7
41.7

¥ 1,293.1¥ 1,123.8

Notes: 1. Actual losses are the sum of tax-qualified direct write-offs, losses from sales of non-performing loans, losses from debt forgiveness, losses
from debt-equity swaps, partial direct write-offs during the fiscal year, as well as specific reserves for possible losses on loans, generalreserves for possible losses on loans (for claims for special attention and lower), etc., as of the end of the fiscal year.
2. The data of actual losses by asset class has been accumulated since the fiscal year ended March 31, 2007.
3. Equity exposure under the PD/LGD approach is not included within the amount of actual losses because losses related thereto are notrecorded as a credit-related cost and it is difficult to determine whether the losses are due to credit risk.
<Analysis>
Actual losses increased by ¥169.3 billion from the previous fiscal year to ¥1,293.1 billion in the fiscal year ended March 31, 2009. The
increase was due mainly to the increase in losses from exposures to corporations reflecting the increase in the number of corporatebankruptcies as a result of the economic downturn.

(p) Comparison of Estimated and Actual Losses by Asset Class
Billions of yen

For the Fiscal Years ended March 31,

2009
Estimated Losses Actual Losses

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loans (Retail)
Other Retail
Total

2008
Estimated Losses Actual Losses

2007
Estimated Losses Actual Losses¥ 1,121.0
1.3
2.9
86.6
7.9
51.9

¥ 1,137.4
0.0
29.5
79.9
6.8
39.2

¥ 1,086.0
5.4
6.4
78.2
7.2
52.9

¥ 1,001.0
0.0
0.4
75.7
4.7
41.7

¥

/
/
/
/
/
/

¥ 1,126.5
0.9
3.8
110.5
4.9
63.1

¥ 1,271.8¥ 1,293.1¥ 1,236.5¥ 1,123.8¥/¥ 1,309.9

Notes: 1. Estimated losses are expected losses as of March 31, 2009 and March 31, 2008.
2. We began estimating expected losses by asset class from March 31, 2007.
3. Actual losses are the sum of tax-qualified direct write-offs, losses from sales of non-performing loans, losses from debt forgiveness, losses
from debt-equity swaps, partial direct write-offs during the fiscal year, as well as specific reserves for possible losses on loans, generalreserves for possible losses on loans (for claims for special attention and lower), etc., as of the end of the fiscal year.
4. The data of actual losses by asset class has been accumulated since the fiscal year ended March 31, 2007.
5. Equity exposure under the PD/LGD approach is not included within the amount of estimated and actual losses because losses related
thereto are not recorded as a credit-related cost and it is difficult to determine whether the losses are due to credit risk.

Methods for Credit Risk Mitigation
8. Risk Management Regarding Credit Risk Mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, we evaluate thevalue of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also conduct periodical
subsequent re-evaluations. Furthermore, we monitor the state of concentration of collateral type and concentration of credit risks
in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by “sovereign,banks or corporations above a certain credit rating” is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of the legal
system of the relevant jurisdiction, we take its effect into consideration.

220

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:
Note that, with respect to amounts as of March 31, 2009, with the adoption of the advanced internal ratings-based approach, theitems that reflect the effect of credit risk mitigation was partially changed.
Billions of yen

As of March 31, 2009

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
Others
Total

Financial
Collateral

Other
Collateral

Guarantees

CreditDerivatives¥ 2,480.5
2,065.8
0.3
400.3
13.9
—
—
13.9
—

¥ 4,869.5
4,800.5
16.4
0.8
51.7
—
—
51.7
—

Total

¥ 5,248.3
2,783.0
1,433.2
219.8
812.2
300.0
0.9
511.3
—

¥ 405.1
405.1
—
—
—
—
—
—
—

¥ 13,003.7
10,054.6
1,450.0
621.0
878.0
300.0
0.9
577.0
—

2,218.2
2,107.9
1.9
108.3
—
0.0
—

/
/
/
/
/
/
/

54.5
28.8
0.0
25.7
—
—
—

—
—
—
—
—
—
—

2,272.8
2,136.7
1.9
134.1
—
0.0
—

¥ 4,698.8¥ 4,869.5¥ 5,302.9¥ 405.1¥ 15,276.5

Eligible
Financial Collateral

Other Eligible
IRB Collateral

Guarantees

CreditDerivatives

Total¥ 2,700.0
2,130.3
0.2
542.3
27.0
—
—
27.0
—

¥ 4,388.1
4,282.5
28.1
7.6
69.7
—
—
69.7
—

¥ 3,486.6
1,809.6
624.8
234.7
817.4
328.0
1.0
488.3
—

¥ 713.5
693.5
—
20.0
—
—
—
—
—

¥ 11,288.4
8,916.1
653.2
804.8
914.2
328.0
1.0
585.2
—

2,508.2
2,428.8
5.2
73.2
—
0.7
0.0

/
/
/
/
/
/
/

94.1
11.6
0.8
81.7
—
—
—

34.2
—
—
34.2
—
—
—

2,636.6
2,440.5
6.1
189.2
—
0.7
0.0

¥ 5,208.2¥ 4,388.1¥ 3,580.8¥ 747.8¥ 13,925.1

Billions of yen

As of March 31, 2008

Internal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loans
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal

221

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
10. Management of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions
See pages 161 to 162 for a summary of our risk management policy for counterparty risk in derivative transactions, etc.

11. Status of Counterparty Risk in Derivatives Transactions and Long-Settlement Transactions(a) Status of Derivatives Transactions and Long-Settlement Transactions
Derivative Transactions
Billions of yen

2009

As of March 31,

Foreign Exchange-related Transactions
Interest rate-related Transactions
Gold-related Transactions
Equity-related Transactions
Transactions related to Precious Metals(Other than Gold)
Other Commodity-related Transactions
Credit Derivatives Transactions
Subtotal (A)Effect of Credit Equivalent Amounts Mitigation
by Close-out Netting Settlement Contracts (B)Subtotal (C)=(A)+(B)
Effect of Credit Risk Mitigation by Collateral (D)Total (C)+(D)

2008

Gross
Replacement
Cost

Gross
Add-onCreditEquivalent
AmountGross
Replacement
Cost

Gross
Add-onCreditEquivalent
Amount¥ 3,019.6
15,127.0
0.1
148.6¥ 2,201.2
4,275.4
0.0
45.9¥ 5,220.9
19,402.5
0.1
194.5¥ 2,978.0
9,621.1
0.1
109.2¥ 2,222.2
5,252.5
0.0
81.6¥ 5,200.3
14,873.7
0.2
190.9

0.4
203.2
499.0
18,998.2

0.2
130.7
1,101.0
7,754.80.7
334.0
1,600.1
26,753.0

0.5
212.8
313.6
13,235.7

0.2
114.6
2,055.5
9,727.0

0.7
327.5
2,369.2
22,962.8

/
/
/
/

/
/
/
/

18,408.6
8,344.3
1,030.6¥ 7,313.7

/
/
/
/

/
/
/
/

14,285.5
8,677.2
926.2¥ 7,750.9

¥

¥

¥

¥

Note: The current exposure method is used as the method of calculating credit equivalent amounts.

Long-Settlement Transactions
Billions of yen

2009

As of March 31,

Gross
Replacement
Cost

Long-Settlement Transactions

¥

11.7

2008
CreditEquivalent
AmountGross
Add-on

¥

0.5

¥

12.2

Gross
Replacement
Cost

¥

2.9

CreditEquivalent
AmountGross
Add-on¥10.6¥

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “effect of credit equivalent amounts mitigation by close-out netting settlement contracts” nor the “effect of credit risk
mitigation by collateral” applies to long-settlement transactions.

222

13.6

(b) Amounts of Credit Risk Mitigation by Type
Billions of yen

As of March 31,

2009

Financial Collateral
Other Collateral
Guarantees, Others
Total

¥

¥

42.2
75.8
20.2
138.2

2008

¥

¥

47.6
63.7
2.1
113.5

(c) Notional Amount of Credit Derivatives Subject to Credit Equivalent Amount Calculations
Billions of yen

2009
2008
Notional Amount Notional Amount

As of March 31,

Credit Derivatives Type:
Credit Default Swap

BoughtSold¥ 7,796.4
6,962.8¥ 13,324.6
12,314.5

Total Return Swap

Bought
Sold

—
—

—
—

BoughtSold¥ 7,796.4
6,962.8¥ 13,324.6
12,314.5

Total

Note: Credit derivatives used for credit risk mitigation are as follows:
Billions of yen

As of March 31,

Credit Derivatives Used for Credit Risk Mitigation

2009

¥

489.6

2008

¥

956.5

223

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Securitization Exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinated structure,” pursuant to the definitions set forth in the Consolidated Capital Adequacy Ratio Notice, etc.; provided that the transactions
do not include those which fall within specialized lending exposure.
Disclosed figures on securitization exposure in this section are based on transactions that are subject to the calculation of theamount of credit risk-weighted assets and do not include assets held in our (including our securities company subsidiaries) trading
account.
See pages 86 to 95 for the status of our group's securitization products (based on a definition thereof pursuant to our managerial accounting which differs from the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.), including
those held in our trading account and the status of our overseas ABCP programs, etc.

12. Summary of Securitization Exposure and Its Risk Management
We are associated with securitization transactions from various perspectives and positions. With respect to quantitative information related to (a) to (c) below, see “Quantitative disclosure items for securitization exposure” described beginning from the next
page that follows the definition set forth in the Consolidated Capital Adequacy Ratio Notice, etc.

(a) Securitization of Our Assets (“Securitization as Originator”)
For the purposes of mitigating credit concentration risk and controlling economic capital, etc., we engage in securitization transactions (such as synthetic CDOs) of which underlying assets include mortgage loans, exposure to our corporate customers andsecuritization exposure. When conducting a securitization as originator, we consider various sides of such transaction, including
the effects of reduction of economic capital and improvement of return on risk as well as the practical effects of risk transfers,
and make a comprehensive judgment on structure and appropriateness of transaction.
(b) Securitization Program (ABCP/ABL) Sponsor
As a means of supporting our customers in their securitization of account receivables and trade notes, etc., held by our customers, we retain securitization exposure by providing the asset-backed loan, or ABL, or providing an asset-backed commercial
paper, or ABCP, backup line, as sponsor. In such cases, in addition to gaining firm understanding of the actual risk profile throughdue diligence from the viewpoint of investors, we apply internal ratings and make evaluations by assessing such transactions andcarefully managing the exposure together with other direct loan assets.
(c) Investment in Alternative Credit Risk Assets (“Securitization Transactions as Investor”)
We hold securitization instruments, such as ABS, CMBS, RMBS, and CDO, for the purpose of investing in alternative credit risk
assets that are different from conventional credit risk assets in order to diversify our investment portfolio. The Portfolio
Management Committee, etc., establish investment limits for securitization transactions as investor, and we maintain a stringent
structure for management of such transactions. In addition, we implement stress tests based on scenarios under the market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as a meansof financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets, and to disclose
appropriately the risks and terms of the program to the investing customer.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash advance)and provide interest rate swaps to securitization conduits.
We conduct credit risk measurements on all credit transactions, including securitization transactions, and carry out periodic
monitoring on investment balance and performance on securitization transactions, etc., and report results to our Portfolio
Management Committee, etc.

224

Status of Response to Basel II
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions and apply
the supervisory formula approach (“SF”) in other cases pursuant to Consolidated Capital Adequacy Ratio Notice. We deduct securitization exposure from our capital when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we calculate
based on risk weight according to ratings by eligible external credit assessment institutions and weighted average risk weight ofunderlying assets.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service (Moody's), Standard & Poor's (S&P) and Fitch Ratings, Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment institutions for eachtype of securitization exposure).

13. Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized, their evaluation and accounting treatment are pursuant to Business Accounting Standards No.10, “Accounting Standards Relating to
Financial Products” (Business Accounting Deliberation Council, January 22, 1999).
In addition, in consideration of global convergence of accounting standards, we conduct valuations based on market price orother reasonably calculated price (such as a price quoted by a broker or an information vender) unless valuation is extremely difficult in practice. With respect to the credit investments in securitization products made as an alternative to loans by the European
and North American offices of domestic consolidated banking subsidiaries, we had previously applied as fair value the valuations
obtained from brokers and information vendors based on our determination that such valuations constitute reasonably calculated
prices that can be used as a proxy for market prices. Given the current situation in which the volume of actual transactions isextremely limited and there exists a considerable gap between the offers and bids of sellers and buyers, we determined that valuations obtained from brokers and information vendors cannot be deemed to be the fair value, and we applied reasonably calculated prices based on the reasonable estimates of our management as fair value. In deriving reasonably calculated prices based on
the reasonable estimates of our management, we used the Discounted Cash Flow Method, and the price decision variables
include default rates, recovery rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on “Report on Auditing
Securitized Instruments” announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

225

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

14. Quantitative Disclosure Items for Securitization Exposure
Securitization Exposure as Originator(a) Information by Type of Underlying Assets
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2009

Conventional Securitizations
Amount of Underlying Assets (a)Default Exposure¥

Residential
MortgageLoans— ¥ 271.9
—
2.6

Lease
Auto
Payment
Loans Receivables

¥

—
—

¥

Real
EstateCorporate

— ¥
—

14.8
1.3

Securitization
Products

¥

5.4
—

¥

Total

— ¥ 292.3—
4.0

Losses during the Fiscal Year

—

0.5

—

—

0.1

—

—

0.6

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

—

—

—

—

Gains and Losses Recognizedon Sales during the Fiscal Year

—

—

—

—

—

—

—

—

Securitization Subject to Early
Amortization Treatment

—

—

—

—

—

—

—

—

Synthetic Securitizations
Amount of Underlying Assets (b)Default Exposure

—
—

—
—

—
—

—
—

832.6
—

20.2
—

—
—

852.9
—

Losses during the Fiscal Year

—

—

—

—

—

—

—

—

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

580.6

20.2

—

600.9

— ¥ 847.5¥ 25.7

Total Amount of Underlying Assets (a)+(b)¥— ¥ 271.9

¥

—

¥

¥

— ¥1,145.2

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2009.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of the securitization exposure retained or purchased whose risk has been transferred (hedged) through securitization schemes, we havecategorized as securitization exposure as investor if the risk transfer (hedge) effects are not reflected in the calculation of capital adequacy
ratio, following the definition for classification of securitization exposure set forth in the Consolidated Capital Adequacy Ratio Notice, etc.
In making such categorization, classification based on type of underlying assets is conducted according to the principal underlying asset
type for each transaction, and transactions that are difficult to classify are included under “Others.”

226

Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2008

Conventional Securitizations
Amount of Underlying Assets (a)Default Exposure¥

Residential
MortgageLoans— ¥ 313.0
—
2.4

Lease
Auto
Payment
Loans Receivables

¥

—
—

¥

Corporate

Securitization
Products

RealEstate

— ¥
—

27.8
1.4

¥ 22.1—¥Total— ¥ 363.0—
3.8

Losses during the Fiscal Year

—

0.9

—

—

0.2

—

—

1.2

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

—

—

—

—

Gains and Losses Recognizedon Sales during the Fiscal Year

—

—

—

—

—

—

—

—

Securitization Subject to Early
Amortization Treatment

—

—

—

—

—

—

—

—

Synthetic Securitizations
Amount of Underlying Assets (b)Default Exposure

—
—

—
—

—
—

—
—

776.3
—

—
—

269.5
—

1,045.8—

Losses during the Fiscal Year

—

—

—

—

—

—

—

—

Amount of Exposures Securitized
during the Fiscal Year

—

—

—

—

329.1

—

22.9

352.0

— ¥ 804.1¥ 22.1

Total Amount of Underlying Assets (a)+(b)¥— ¥ 313.0¥—¥¥ 269.5 ¥1,408.9

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2008.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us,
exposure to assets originated by other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition ofdefault as set forth in the respective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The risk mitigating effects, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitizationtransactions are reflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of ¥269.5 billion in synthetic securitization transactions with underlying assets classified as “Securitization products,” the underlying
assets of such securitization products that are subject to transfers (hedges) of risk consist mainly of “residential mortgage loans” and also
include “real estate” and “corporate loans,” etc.

227

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(b) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

¥

—
—
—
—
—
—
—

0.0

¥

—

¥ 41.3CreditCards

Residential
Mortgage
Loans

Deduction from Capital
Total

Residential
Mortgage
Loans

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
41.2
—
—

¥

—
—
—
—
—
—

¥

—

Real
EstateCorporate

¥

—
—
—
—
—
—
—

5.3

3.0

¥

—

¥ 835.5¥ 21.8—¥ 785.1
9.6
—
—
17.8
17.5

Securitization
Products

¥

—
14.1
1.5
—
—
3.0

Total

¥

— ¥
—
—
—
—
—

785.1
23.8
1.5
41.2
17.8
20.5

—

8.3

¥

— ¥

898.6

Required
Capital

¥

6.1
0.7
0.0
3.4
0.0
2.0

¥

16.1

3.4

Billions of yen

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%¥

Deduction from Capital
Total

¥

—
—
—
—
—
—

¥

Lease
Auto
Payment
Loans Receivables

—
—
—
42.8
—
—

—

0.0

—

¥ 42.8

¥

—
—
—
—
—
—

¥

—
¥

—

¥

—
—
—
—
—
—

Real
EstateSecuritization
Products

Total

¥

3.0
—
—
—
—
—

¥ 256.9 ¥
—
—
—
11.9
—

993.2
—
—
48.4
15.6
19.9

0.7

17.8

¥

3.0

¥ 269.5 ¥ 1,095.1

Corporate

Securitization
Products

Corporate¥ 733.2
—
—
5.6
3.7
19.9

—

17.1

—

¥ 779.6—

Required
Capital

¥

6.4
—
—
5.7
0.3
4.5
13.1

¥

30.2

Capital Increase Due to Securitization Transactions
Billions of yen

CreditCards

As of March 31, 2009

Capital Increase due toSecuritization Transactions¥—

Residential
Mortgage
Loans

¥

7.8

Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

¥

—

Real
Estate

¥

— ¥

—

Total

¥

7.8

Billions of yen

CreditCards

As of March 31, 2008

Capital Increase due toSecuritization Transactions¥—

Residential
Mortgage
Loans

¥

9.3

Lease
Auto
Payment
Loans Receivables

¥

—

¥

—

Real
EstateCorporate¥—

Securitization
Products

¥

— ¥

—

Total

¥

9.3

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 ofSupplementary Provisions of the FSA Capital Adequacy Ratio Notice

228

2009

¥

—

2008

¥

—

Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL)(c) Information by Type of Underlying Assets
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2009

Amount of Underlying Assets
Default Exposure

¥

171.0
—

Estimated Loss Amount related toUnderlying Assets

4.2

Amount of Exposures Securitized
during the Fiscal Year¥ 1,083.4

Residential
MortgageLoans¥— ¥ 135.2 ¥
—
—
—

¥

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables

2.9

401.5 ¥
0.5

650.6
2.5

2.8

10.8

— ¥1,018.4 ¥ 2,696.8 ¥ 3,769.2

Real
Estate¥——Others

¥

—
¥

—

Total

86.4 ¥ 1,444.9
0.0
3.1
3.1

24.0

¥ 638.9 ¥ 9,207.0

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2009.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.
Billions of yen

CreditCards

As of, or For the Fiscal Year ended, March 31, 2008

Amount of Underlying Assets
Default Exposure¥

Estimated Loss Amount related toUnderlying Assets
Amount of Exposures Securitized
during the Fiscal Year

180.9
—
8.6

¥

504.6

Residential
Mortgage
Loans

¥

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables— ¥ 110.9 ¥
—
—
—

0.3

298.8 ¥
8.5

722.9
9.5

5.0

22.6

¥ 131.5 ¥ 652.2 ¥ 2,363.2 ¥ 3,020.7

Real
Estate

¥

—
—
—

¥

—

Others¥Total

52.3 ¥ 1,366.0
—
18.0
6.2

42.9

¥ 362.3 ¥ 7,034.8

Notes: 1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2008.
2. Securitization exposure that is acquired in securitization of customer's claims other than as sponsor (in the form of asset-backed securities,
trust beneficiary rights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and thefollowing parameters that are used in the calculation of capital adequacy ratio:· parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and· with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratingsbased approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.
7. Of “Amount of exposures securitized during the fiscal year,” a securitization product in the amount of ¥131.5 billion classified as“Residential mortgage loans” was acquired as a substitution payment of loans provided by Mizuho Corporate Bank, Ltd. to its sponsoringoverseas ABCP conduit. As we consolidated a special purpose company that issued such acquired securitization product as of the end of
the fiscal year, we include the securitization exposure held by such special purpose company in “Securitization exposure as investor.”

229

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(d) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets¥ 143.3
30.0
11.4
0.7
—
—

Residential
Mortgage
Loans

¥

—
—
—
—
—
—
—

—

—

—

¥

—

¥ 128.2¥ 397.2¥ 601.0

—

—

21.6

56.0

—
¥ 185.5

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables

78.8¥ 97.8
—
—
30.4
—
—

¥ 384.9
4.4
7.8
—
—
—

¥ 559.0
17.4
0.5
1.4
22.5
—

Real
Estate

¥

—
—
—
—
—
—

¥

—

OthersTotal¥

81.2 ¥ 1,266.3
2.2
54.1
8.4
28.3
—
32.5
—
22.5
—
—

¥

92.0 ¥ 1,404.0

—

—

—

Required
Capital

¥

8.3
1.3
1.7
3.3
6.3
—

¥

21.0

—

77.0

—

233.4

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
Billions of yen

CreditCards

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets¥ 27.4
—
11.7
159.3
—
31.3

Residential
Mortgage
Loans

¥

—
—
—
—
—
—
—

—

—

—

¥

—

¥ 109.1¥ 271.4¥ 678.0

—

—

57.4

79.7

—
¥ 229.7
165.4

Lease
Account
Auto
Payment
and Note
Loans Receivables Receivables¥ 13.6
30.0
64.7
—
0.7
—

¥ 177.6
65.9
27.8
—
—
—

¥ 436.4
30.5
174.7
31.8
4.5
—

Real
Estate

¥

—
—
—
—
—
—

¥

—

Others¥39.0 ¥
15.7
1.2
—
—
—

¥

56.0 ¥ 1,344.5

—

—

Total

694.2
142.2
280.3
191.1
5.3
31.3

—

46.0

Required
Capital

¥

5.2
4.4
15.4
25.0
2.5
22.1

¥

74.8

—

—

348.7

/

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation ofrequired capital.
2. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

230

2009

¥

—

2008

¥

—

Securitization Exposure as Investor(e) Information of Securitization Exposure Retained or Purchased
Exposure by Risk Weight Category and Underlying Asset Type and Amount of Required CapitalBillions of yen

CreditCards

As of March 31, 2009

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
MortgageLoans¥ 60.4 ¥ 1,347.2
—
14.1
5.9
21.3
—
0.9
—
1.3
—
—

Lease
Auto
Payment
Loans Receivables

CorporateReal
Estate¥ 329.6
—
0.1
—
—
—

¥ 295.1
2.7
0.9
—
—
—

¥ 299.0
38.7
11.6
0.9
2.3
—

¥ 576.2
150.8
17.8
—
0.2
—

3.9

—

—

13.7

28.5

¥ 66.4 ¥ 1,388.9¥ 329.7¥ 298.7¥ 366.4¥ 773.6

53.4
—

18.3
—

254.7
8.0

54.7
0.0

—

23.6
—

193.8
0.3

Total

Required
Capital¥ 135.0 ¥ 3,042.8
11.2
217.7
1.0
58.9
—
1.9
0.0
3.9
—
—

¥ 29.5
5.8
3.8
0.3
1.6
—

Others

8.1

54.3

37.9

¥ 155.6 ¥ 3,379.7¥ 79.2

16.9
3.1

615.8
11.5

/
/

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥6.5 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥0.8 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is categorized as securitization exposure as originator.
6. Securitization exposure as investor includes ¥45.4 billion liquidity facilities that we provide to ABCP programs sponsored by othercompanies. Note that such transactions are not included in the amounts disclosed in pages 86 to 95.
7. We classify securitization products whose underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO) as“resecuritizations.”

231

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

Billions of yen

CreditCards

As of March 31, 2008

Risk Weight

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Deduction from Capital
Total
Exposure whose Underlying
Assets are Foreign Assets
Exposure on Resecuritizations

Residential
MortgageLoans¥ 126.4 ¥ 1,626.8
1.9
17.2
56.1
18.9
—
—
—
1.3
—
—

Lease
Auto
Payment
Loans Receivables

CorporateReal
Estate¥ 318.7
—
0.3
—
—
—

¥ 428.1
16.9
4.0
2.5
—
—

¥ 355.5
55.1
2.3
0.2
—
—

¥ 629.1
166.1
23.9
—
—
—

13.3

—

—

16.8

20.6

¥ 184.6 ¥ 1,677.8¥ 319.0¥ 451.6¥ 430.1¥ 839.8

81.3
—

42.7
—

296.0
8.3

44.7
2.3

—

98.5
—

198.3
13.9

Total

Required
Capital¥ 187.0 ¥ 3,671.9
10.7
268.3
3.5
109.4
—
2.7
—
1.3
—
—

¥ 35.1
7.3
6.9
0.2
0.3
—

Others

7.7

58.5

35.8

¥ 209.1 ¥ 4,112.3¥ 85.8

21.4
3.7

783.2
28.3

/
/

Notes: 1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as
investor even when the assets underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions
for those managed CLOs, etc., were ¥8.0 billion (treated as deduction from capital for purpose of capital adequacy ratio calculation), andour sale of assets to such managed CLOs, etc., during the fiscal year was ¥14.4 billion.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
Transactions that are difficult to classify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are foreign assets is conducted according to the principal underlying assetsof each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio
is categorized as securitization exposure as originator.
6. Securitization exposure as investor includes ¥85.9 billion liquidity facilities that we provide to ABCP programs sponsored by othercompanies.
7. We classify securitization products whose underlying assets are securitization products such as ABS, etc. (e.g., ABS CDO) as“resecuritizations.”

Credit Risk-Weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the FSA Capital
Adequacy Ratio Notice
Billions of yen

As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary
Provisions of the FSA Capital Adequacy Ratio Notice

2009

¥

—

2008

¥

—

Note that, in addition to the above, within the provision of credit in the form of eligible servicer cash advance, set forth in Article
246 of the Notice, there was an undrawn portion to which no required capital is allocated.
The balances of such portion as of March 31, 2009 and 2008 were ¥28.3 billion and ¥39.1 billion, respectively.

232

Market Risk
See pages 61 to 66 for information regarding market risk.

Operational Risk
See pages 66 to 67 for information regarding operational risk.

Equity Exposure in Banking Book
15. Risk Management Related to Equity Exposure in Banking Book
With regard to equities in our banking book, we manage default risk through our credit risk management structure and pricefluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on a consolidated basis, and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices are valued
based on the average quoted market price over the month preceding the consolidated balance sheet date; other securities whichhave readily determinable fair values are valued at the quoted market price if available, or otherwise based on their reasonablevalue at the consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method); andother securities which do not have readily determinable fair values are stated at acquisition cost or amortized cost as determinedby the moving average method.

16. Status of Equity Exposure in Banking Book(a) Amounts Stated in Consolidated Balance Sheet
Billions of yen

As of March 31,

2009
Consolidated Balance Sheet
Amount¥ 2,625.2
461.3¥ 3,086.6

Exposure of Listed Stock, etc.
Other Equity Exposure
Total

Fair Value

2008
Consolidated Balance Sheet
AmountFair Value¥ 2,625.2/¥ 4,178.6
559.6¥ 4,178.6/¥¥ 4,738.3¥//

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and Losses on Sales Related to Equity Exposure
Billions of yen

2009
For the Fiscal Years ended March 31,

Sale of Equity Exposure

Gains and Losses
on Sales

¥

53.7

2008

Gains on Sales Losses on Sales

¥

100.2

¥

46.5

Gains and Losses
on Sales¥ 335.0

Gains on Sales Losses on Sales

¥

343.9

¥

8.8

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

233

Status of Capital Adequacy

Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc.

(c) Gains and Losses from Write-Offs Related to Equity Exposure
Billions of yen

For the Fiscal Years ended March 31,

2009
Gains and Losses from Write-offs

2008
Gains and Losses from Write-offs

Write-offs of Equity Exposure¥ (482.1)¥ (102.6)

Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized Gains and Losses Recognized in the Consolidated Balance Sheet and Not Recognized in theConsolidated Statement of Income
Billions of yen

2009

As of March 31,

Equity exposure

Net UnrealizedGains¥ (178.6)

2008

Unrealized
Gains

Unrealized
Losses¥¥ 469.2

290.5

Net Unrealized
Gains

¥

986.6

Unrealized
Gains

Unrealized
Losses¥ 1,200.6

¥

213.9

Note: The above figures include only Japanese and foreign stocks.

(e) Unrealized Gains and Losses Not Recognized in the Consolidated Balance Sheet or in the Consolidated
Statement of Income
None as of March 31, 2009 and 2008.

(f) Equity Exposure by Portfolio Classification
Billions of yen

As of March 31,

PD/LGD Approach
Market-based Method (Simple Risk Weight Method)
Market-based Method (Internal Models Approach)Transitional Measure Applied
Total

234

2009

2008

817.4
332.0
—
2,389.5¥ 1,060.9
277.6—
3,748.2¥ 3,538.9¥ 5,086.8¥

Senior Executives

Mizuho Financial Group

Mizuho Corporate Bank

Board of Directors

Board of Directors

Terunobu Maeda

Hiroshi Saito

Chairman

ChairmanTakashi Tsukamoto*

Yasuhiro Sato*

President & CEO

President & CEO

Head of Human Resources Group / Chief Human
Resources Officer (CHRO)

Norimasa Kuroda*

Tadayuki Hagiwara*
Managing Director

Tetsuji Kosaki*

Deputy President

Deputy President

Yutaka Miyamoto*Head of Financial Control and Accounting Group /Chief Financial Officer (CFO)

Deputy President

Hajime Saito*

Deputy PresidentManaging Director

Head of Internal Audit Group

Head of Internal Audit Group / Chief Auditor (CA)Hiroshi Motoyama*

Tetsuo Hiramatsu*

Satoru Nishibori

Managing Director

Director

Chief Strategy Officer / Head of Strategic Planning Group
Chief Financial Officer / Head of Financial Control &Accounting Group

Yasuhiro Sato
Director

Akihiko Nomiyama
Director

Mitsuo Ohashi

Hidetake Nakamura*Managing Director
Head of International Banking Unit

Director

Kanemitsu Anraku

Hidemi Hiroi

Corporate Auditors

Corporate Auditor

Akio Takenouchi
Corporate Auditor

Tsuneo Muneoka

Yukio Nozaki

Corporate Auditor

Corporate Auditor

Tsuneo Morita

Toshiaki Hasegawa

Corporate Auditor

Corporate Auditor

Yukio Nozaki

Takeshi Mitsuma
Corporate Auditor

Takuo Hirota
Corporate Auditor

Yukio Nozaki
Corporate Auditor

Toshiaki Hasegawa
Corporate Auditor

Mizuho Securities
Board of Directors
Takashi Kusama
Chairman

Keisuke Yokoo
President

Tetsuya Fukabori*
Deputy President

Corporate Auditors

Director

Corporate Auditors

Fumio Kabashima*
Deputy President

Akira Kawamura*
Deputy President

Hideo Abe*
Deputy President

Yutaka Endo*
Deputy President

Mizuho Trust & Banking

Corporate Auditor

Executive Officers

Masahiro Seki

Mitsuhiro Nagahama

Board of Directors

Managing Executive Officer

Teruhiko Ikeda

Corporate Auditor

Masami Ishizaka
Corporate Auditor

Executive Officers
Takeo Nakano

Head of the Americas

Keizo Ohashi
Managing Executive Officer
Head of Asia & Oceania

Shinya Wako
Managing Executive Officer

Managing Executive Officer

Head of Europe, Middle East and Africa

Head of Risk Management Group, Head ofCompliance Group, In charge of Financial Control
and Accounting Group / Chief Risk Officer (CRO) /Chief Compliance Officer (CCO)

Mizuho Bank

Daisaku Abe

Board of Directors
Seiji Sugiyama

Head of Strategic Planning Group, Head of IT,
Systems & Operations Group and General
Manager of Group Strategic Planning / Chief
Strategy Officer (CSO) / Chief Information Officer(CIO)

ChairmanShin Kuranaka

Deputy President

General Manager of Human Resources

Masakane Koike

Takashi Nonaka*
President and CEO

Nobutake Nishijima*
Deputy President

Mitsuaki Tsuchiya*
Deputy PresidentManaging Executive Officer

Executive Officer

ChairmanSatoru Nishibori*President & CEO

Tetsuro Ueno*
Manabu Yoshidome*
Deputy President

Executive Officer

Shuzo Haimoto*General Manager of Financial PlanningManaging Director

Naoto Tsumita*
Managing Director

Notes:1. * Indicates Directors concurrently serving as
Executive Officers.
2. Executive Officers, excluding the Directors
concurrently serving as Executive Officers andExecutive Officers responsible for global regional
operations and the head of the International
Banking Unit of Mizuho Corporate Bank, have notbeen listed.
3. Executive Officers, excluding Directors concurrently
serving as Executive Officers of Mizuho Bank, havenot been listed.
4. Members of the Board of Directors other than the
Chairman, President and the Deputy Presidents,
and the Corporate Auditors as well as the Executive
Officers of Mizuho Securities, have not been listed.
5. Members of the Board of Directors other than the
Chairman, President and CEO and the Deputy
Presidents, and the Corporate Auditors as well as
the Executive Officers of Mizuho Trust & Banking,have not been listed.

(As of June 25, 2009)235

Location of Overseas Offices(As of June 30, 2009)

Network of Mizuho Corporate Bank

Asia and Oceania(Country/Region)
China

Mizuho Corporate Bank (China), Ltd.
Head Office
21-23F, 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

Room 801, Nanjing Grand Hotel,
208 Guangzhou Road. Nanjing,
Jiangsu Province 210024,
The People's Republic of China
TEL 86-25-8332-9379

Wuhan Representative Office
Room 411, Shangri-la Hotel, 700 Jian She Dadao,
Wuhan 430015, The People's Republic of China
TEL 86-27-8342-5000* Wuhan Representative Office was abolished on July16, 2009.

Xiamen Representative Office
Room 2102, The Bank Center, No.189 Xiahe Road,
Xiamen, Fujian 361003,
The People's Republic of China
TEL 86-592-239-5571

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6525-1888

Hong Kong Branch

Mizuho Corporate Bank (China), Ltd.
Dalian Branch

17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2103-3000

6th Floor, Senmao Building, Zhongshan Road 147,
Xigang District, Dalian, liaoning Province 116011,
The People's Republic of China
TEL 86-411-8360-2543

Mizuho Corporate Bank (China), Ltd.
Guangzhou Branch
25th Floor, International Finance Place, No.8
Huaxia Road, Zhujiang New Town,
Guangzhou City, Guangdong Province,
The People's Republic of China
TEL 86-20-3815-0888

Mizuho Corporate Bank (China), Ltd.
Qingdao Branch
44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Qingdao City,
Shandong Province, 266071,
The People's Republic of China
TEL 86-532-8097-0001

Mizuho Corporate Bank (China), Ltd.
Shenzhen Branch
21st Floor, Shenzhen International Financial
Building, Jian She Lu, Shenzhen,
Guangdong Province 518001,
The People's Republic of China
TEL 86-755-8222-1918

Mizuho Corporate Bank (China), Ltd.
Tianjin Branch
E2ABC-5F, East Wing Binhai Finance Zone, No.20
Xinchengdong Road, TEDA, Tianjin, 300457,
The People's Republic of China
TEL 86-22-6622-5588

Mizuho Corporate Bank (China), Ltd.
Wuhan Branch
5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province,
The People's Republic of China
TEL 86-27-8342-5000

Mizuho Corporate Bank (China), Ltd.
Wuxi Branch

Hong Kong

Kowloon Sub-Branch
16/F., Sun Life Tower, The Gateway,
Tsim Sha Tsui, Kowloon,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2102-5399

Mizuho Capital Markets (HK) Limited
16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2537-3815

India

Mumbai Branch
Maker Chamber III, 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400021 India
TEL 91-22-2288-6638

New Delhi Branch
4th Floor, East Tower, Sood Tower, 25,
Barakhamba Road, New Delhi 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 Taepyung-ro
1-ka, Chung-ku, Seoul, Republic of Korea
TEL 822-3782-8500

Malaysia

Philippines

Manila Branch
26th Floor, Citibank Tower, Valero Street corner
Villar Street, Salcedo Village, Makati City,
Metro Manila, Philippines
TEL 63-2-860-3550

Singapore

Singapore Branch
168 Robinson Road, #13-00 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

TaiwanKaohsiung Branch
12th Floor, No.2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
TEL 886-7-236-8768

Taichung Branch
8th Floor, No.169, Fuhui 2nd Street,
Taichung 407, Taiwan
TEL 886-4-2374-6300

Taipei Branch
2nd Floor, Hung Kuo Building, 167 Tun Hua
North Road, Taipei 105, Taiwan
TEL 886-2-2715-3911

Thailand

Bangkok Branch
18th Floor, TISCO Tower, 48 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0200

VietnamHanoi Branch
Suite 403~407, 63 LTT Building,
63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-3936-3123/3124

Ho Chi Minh City Branch
18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
TEL 84-8-3827-8260/8292

Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Mizuho Corporate Australia Ltd.
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka, 87000
Federal Territory of Labuan, Malaysia
TEL 60-87-417766

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

Labuan Branch, Kuala Lumpur
Marketing OfficeMizuho Corporate Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

Kuala Lumpur Representative Office22nd Floor, Gugeng International Business
Building No.138 Jin Ma Road,
Economic and Technological Development Area
Dalian, Liaoning Province 116600,
The People's Republic of China
TEL 86-411-8793-5670

236

Nanjing Representative Office

Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6595

Europe and the Middle East(Country/Region)
AustriaMizuho Corporate Bank-BA
Investment Consulting GmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

BelgiumMizuho Corporate Bank Nederland N.V.
Brussels Branch
Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

France

U.A.E

U.S.A.

Paris Branch

Dubai Branch

Chicago Branch

Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

The Gate Village, Building Number 5, Level 2,
Dubai International Financial Centre,
P.O.Box No:506607, Dubai, United Arab Emirates
TEL 971-4-425-9200

311 South Wacker Drive, Suite 2020,
Chicago, IL 60606, U.S.A.
TEL 1-312-855-1111

Germany

Düsseldorf Branch
Königsallee 60 D, 40212 Düsseldorf,
F.R. Germany
TEL 49-211-13020

Mizuho Corporate Bank (Germany)
Aktiengesellschaft
Taunustor 2, 60311 Frankfurt am Main,
F.R. Germany
TEL 49-69-27282-0

RussiaZAO Mizuho Corporate Bank
(Moscow)
37 Bolshaya Ordynka, Moscow, 119017,
Russian Federation
TEL 7-495-729-5858

Moscow Representative Office
12 Trubnaya Street, Moscow 107045,
Russian Federation
TEL 7-495-787-2771

Italy

New York Branch
1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3000

Los Angeles Agency
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-243-4500

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, Georgia 30326, U.S.A.
TEL 1-404-364-1550

Milan Branch

Houston Representative Office

6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, Texas 77056, U.S.A.
TEL 1-713-499-4800

Spain

Mizuho Corporate Bank Nederland N.V.
Madrid Representative Office
Calle Orense 34, Planta 6, Edificio Iberia Mart II ,28020 Madrid, SpainTEL 34-91-598-2905

The Netherlands

Mizuho Corporate Bank Nederland N.V.
Apollolaan 171, 1077 AS Amsterdam,
The Netherlands
TEL 31-20-5734343

United Kingdom

London Branch
Bracken House, One Friday Street,
London, EC4M 9JA, U.K.
TEL 44-20-7012-4000

The Americas(Country/Region)
BahamasMizuho Corporate Bank (U.S.A.)
Nassau Branch
SG Hambros Building West Bay Street
P.O. Box N-7788 Nassau, Bahamas

BrazilSão Paulo Representative Office
Avenida Paulista, 1274-11, andar, Bela Vista,São Paulo, SP, CEP. 01310-925, Brazil
TEL 55-11-3251-4199

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
TEL 1-416-874-0222

Mizuho Corporate Bank of California
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-612-2700

Mizuho Corporate Bank of California
Silicon Valley Branch
1731 Technology Drive, Suite 100, San Jose,
California 95110, U.S.A.
TEL 1-408-487-1788

Mizuho Corporate Bank (USA)1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3030

Mizuho Corporate Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, Georgia 30326, U.S.A.
TEL 1-404-364-1550

Vancouver OfficeMizuho Corporate Bank (USA)
Chicago Representative OfficeRiver Plate House, 7-11 Finsbury Circus,
London, EC2M 7DH, U.K.
TEL 44-20-7012-4000

Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, U.S.A.
TEL 1-312-855-1111

Mizuho Capital Markets (UK) Limited

Mizuho Corporate Bank (Canada)

River Plate House, 7-11 Finsbury Circus,
London, EC2M 7DH, U.K.
TEL 44-20-7972-9900

100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada M5C 2W1
TEL 1-416-874-0222

Mizuho Corporate Bank (USA)
Houston Representative OfficeMizuho Investment Management(UK) Ltd.

Mizuho Corporate Bank (Canada)
Vancouver Office

Bracken House, One Friday Street,
London, EC4M 9JA, U.K.
TEL 44-20-7012-4300

Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

River Plate House Representative
OfficeBahrain

Cayman Islands

Bahrain Representative Office

Cayman Branch

Suite 201-202, Entrance 4,
2nd Floor, Manama Center, Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
TEL 973-17-224522

Coutts House, 1446 West Bay Road,
P.O. Box 707GT, Grand Cayman, Cayman Islands,
British West Indies

Iran

Tehran Representative Office
3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-8872-6593

MexicoMexico Representative Office5051 Westheimer Road, Galleria Tower II ,Suite 710, Houston, Texas 77056, U.S.A.
TEL 1-713-499-4800

Mizuho Corporate Bank (USA)Los Angeles Representative Office
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, U.S.A.
TEL 1-213-243-4500

Mizuho Alternative Investments, LLC
1251 Avenue of the Americas, New York, NY
10020, U.S.A.
TEL 1-212-282-3871

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York, NY 10018,
U.S.A.
TEL 1-212-547-1500

Torres E3, Blvd. Manuel Avila Camacho No.32,
Piso 7, Oficina 702 Col.
Lomas de Chapultepec 11000,
Mexico, D.F., Mexico
TEL 52-55-5281-5037

237

Location of Overseas Offices

Mizuho Desk(Country/Region)
Asia and Oceania

Maybank
Menara Maybank, 100 Jalan Tun Perak,
50050 Kuala Lumpur, Malaysia
TEL 60-3-2031-2346

Europe and the Middle East

Raiffeisen Zentralbank Osterreich AG
A-1030 Wein, Am Stadpark 9, Austria
TEL 43-1-71707-1375

Mashreqbank psc
Japan Desk, Mashreqbank Building 3F,
Dubai Internet City, Mashreqbank,
P.O.Box 1250, Dubai,
United Arab Emirates
TEL 971-4-363-2324/2285”Mizuho Desk”
By forming tie-ups with major financial institutions in regions where Mizuho does not possess
offices, we offer our customers financial services
through various institutions. (Transactions are
conducted directly between the customer and the
local financial institution.)

Network of Mizuho Securities

Network of Mizuho Trust & Banking

Beijing Representative OfficeLondon Representative Office

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6523-4779

River Plate House, 7-11 Finsbury Circus,
London EC2M 7HB, U.K.
TEL 44-20-7588-7400

Mumbai Representative OfficeMizuho Trust & Banking(Luxembourg) S.A.

Unit 94, 9th Floor, Free Press House,
215 Free Press Journal Marg, Nariman Point,
Mumbai, 400021, India
TEL 91-22-6747-7600

1B, Parc d'Activité Syrdall, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-4216171

Shanghai Representative Office
24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-8000

135 W. 50th Street, 16th Floor, New York,NY 10020, U.S.A.
TEL 1-212-373-5900

Mizuho Investment Consulting(Shanghai) Co., Ltd.

Network of DIAM

24th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-5888

DIAM Asset Management (HK) Limited

Mizuho Securities Asia Limited
11th Floor, CITIC Tower, 1 Tim Mei Avenue,
Central, Hong Kong, S.A.R.,
The People's Republic of China
TEL 852-2685-2000

Mizuho Bank (Switzerland) Ltd
Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

Mizuho International plc
Bracken House, One Friday Street,
London EC4M 9JA, U.K.
TEL 44-20-7236-1090

Mizuho Securities (Singapore) Pte. Ltd.
5 Shenton Way, #15-01, UIC Building
068808, Republic of Singapore
TEL 65-6221-3633

Mizuho Securities USA Inc.
1251 Avenue of the Americas, 33rd Floor,
New York, NY 10020, U.S.A.
TEL 1-212-209-9300

The Bridgeford Group, Inc.
445 Park Avenue, 20th Floor, New York, NY
10022, U.S.A.
TEL 1-212-705-0880

238

Mizuho Trust & Banking Co. (USA)Suites 1221-22, Two Pacific Place,
88 Queensway, Hong Kong, S.A.R,
The People's Republic of China
TEL 852-2918-9030

DIAM International Ltd
Bracken House, One Friday Street,
London, EC4M 9JA, U.K.
TEL 44-207-329-3777

DIAM SINGAPORE PTE. LTD.
2 Shenton Way #12-01 SGX Centre I ,Singapore 068804
TEL 65-6532-5470

DIAM U.S.A., Inc.
1133 Avenue of the Americas, 28th Floor,
New York, NY 10036, U.S.A.
TEL 1-212-350-7650

Investor Information

Date of Establishment(Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

January 8, 2003

Paid-in CapitalGoldman, Sachs & Co. REG(Standing proxy agent:
Goldman Sachs Japan Co., Ltd.)¥1,540,965 million

46,164,000

4.85

CREDIT SWISSE FIRST BOSTON EUROPEPB SEC INT NON-TREATY CLIENT (Standing
proxy agent: Citibank Japan Ltd.)45,690,000

4.80

Number of Shareholders

UBS AG LONDON A/C IPB SEGREGATEDCLIENT ACCOUNT (Standing proxy agent:
Citibank Japan Ltd.)41,195,000

4.32

Common Stock:
Preferred Stock:

MORGAN STANLEY & CO. INTERNATIONAL
PLC (Standing proxy agent: Morgan
Stanley Japan Securities Co., Ltd.)40,945,000

4.30

The Dai-ichi Mutual Life Insurance
Company

27,000,000

2.83

Meiji Yasuda Life Insurance Company

25,000,000

2.62

NOMURA INTL PLC A/C CB CLIENT(Standing proxy agent:
Nomura Securities Co., Ltd.)

20,645,000

2.16

Sompo Japan Insurance Inc.

19,000,000

1.99

MORGAN STANLEY & CO. INC (Standing
proxy agent: Morgan Stanley Japan
Securities Co., Ltd.)
18,790,000

1.97

1.71

Outstanding Shares
12,130,382,660 shares
Common Stock: 11,178,940,660 shares
Preferred Stock:951,442,000 shares

488,834
1,825

Major Shareholders(Common Stock)
Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)613,467,800

5.48

Japan Trustee Services Bank, Ltd.
(Trustee account 4G)

608,481,100

5.44

The Master Trust Bank of Japan, Ltd.
(Trustee account)421,309,500

3.76

The Dai-ichi Mutual Life Insurance
Company

209,950,000

1.87

BNP PARIBAS LONDON BRANCH FOR
BNPPPB EVOTOK (Standing proxy agent:
HSBC, Limited)
16,350,000

Japan Trustee Services Bank, Ltd.
(Trustee account 4)

160,188,100

1.43

Note: The numbers of Preferred Stock above are the total shares of the Eleventh
Series Class XI and Thirteenth Series Class XIII Preferred Stock.

Trust & Custody Services Bank, Ltd.
(Meiji Yasuda Life Insurance Company
Retirement Benefit Trust Accountre-entrusted by Mizuho Trust &Banking Co., Ltd.)
137,000,000

1.22

Nippon Life Insurance Company

132,630,760

1.18

THE BANK OF NEW YORK MELLON AS
DEPOSITARY BANK FOR DEPOSITARY RECEIPTHOLDERS (Standing proxy agent:Mizuho Corporate Bank, Ltd.)
130,047,800

1.16

SSBT OD05 OMNIBUS ACCOUNT CHINA
TREATY CLIENTS (Standing proxy agent:
Sumitomo Mitsui Banking Corporation) 129,380,041

1.15

Trust & Custody Services Bank, Ltd.
(Securities investment trust account)

0.73

81,606,500(As of March 31, 2009)

Note: THE BANK OF NEW YORK MELLON AS DEPOSITARY BANK FOR DEPOSITARY RECEIPT HOLDERS (company name changed from HERO & CO.) isa nominee of the shares deposited for the purpose of issuing American
Depositary Receipts (ADRs).

239

Investor Information

Stock Listings(Common Stock)
Tokyo Stock Exchange
Osaka Securities Exchange(ADR)
New York Stock Exchange
ADR* Information

Accounting Auditors

Outline of Mizuho Financial Group's ADR

Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit
100 sharesFiscal Year
April 1 to March 31

1. NYSE ticker symbol :2. CUSIP :3. Conversion ratio :4. Depositary bank :MFG
60687Y109
1 ADR = 2 common shares
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
5. Local custodian bank : Mizuho Corporate Bank, Ltd.

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of theCompany shall be convened no later than 3 months fromthe last day of each business year and an extraordinary
general meeting of shareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting
rights appearing in writing or electronically in the registerof shareholders as of the end of March 31 of each year as
the shareholders who are entitled to exercise their rights atthe ordinary general meeting of shareholders for the relevant business year.
2. In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, by aresolution of the Board of Directors and upon giving aprior public notice thereof.

Dividends from Surplus Approved by Resolution of
Ordinary General Meeting of Shareholders
Dividends from the surplus approved by a resolution of an
ordinary general meeting of shareholders shall be distributed
to the shareholders or registered stock pledgees appearing
in writing or electronically in the register of shareholders asof the end of March 31 of each year.

Interim Dividends
The Company may, by a resolution of the Board of Directors,
distribute interim dividends provided for in Article 454,
Paragraph 5 of the Company Law of Japan to the shareholders or registered stock pledgees appearing in writing or electronically in the register of shareholders as of the end of
September 30 of each year.

240* 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.

Abolishment of the Fractional Share System Dueto the Implementation of the Electronic Share
Certificate System
Due to the implementation of the electronic sharecertificate system on Monday, January 5, 2009, we haveabolished our fractional share system.
Specifically, as of Sunday, January 4, 2009, we
conducted an “allotment of shares or fractions of a sharewithout consideration” in accordance with the provisionsof Article 88 of the “Law Concerning Adjustment andCoordination of Relevant Laws in Association with the
Enforcement of the Company Law” by which thenumber of shares substantially increased 1,000 times.
Concurrently, we adopted the unit share system bywhich one unit of shares became 100 shares, andlowered the minimum investment amount to one-tenthof the current minimum investment amount.
As a result, for example, if you owned 0.25 fractional
shares, this became 250 shares, of which the breakdown
is 200 unit shares and 50 less-than-one-unit shares.
Fractional shares have been automatically recorded asshares in the special account opened by issuer and aremanaged separately from the general transfer accounts.
You will not be able to sell less-than-one unit shares on
the market.
To counter the effect of the allotment of shares or
fractions of a share without consideration, the conversion
ratio of our ADRs to the common shares was changed
from one (1) ADR representing 0.002 of a share ofcommon stock to one (1) ADR representing two (2)shares of common stock with the effective date ofJanuary 4, 2009.

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.

241

Privacy Policy Regarding Customer Information

Mizuho Financial Group, Inc. (“MHFG”) hereby establishes
and announces the “Privacy Policy Regarding Customer
Information” applicable to Mizuho Financial Group which iscomposed of MHFG, its consolidated subsidiaries and affiliates (which are accounted for by the equity method) that arelisted in MHFG's Financial Reports.

Policy of Management
Mizuho Financial Group recognizes appropriate protection
and use of personal information to be important social
responsibilities, and makes every effort to appropriately protect and use personal information complying with the
Personal Data Protection Law in Japan, other related regulations and the internal rules of Mizuho Financial Group, including the “Privacy Policy Regarding Customer Information”
when Mizuho Financial Group conducts business.

Proper Acquisition

Management of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to
any third party sensitive information (e.g. political affiliation,
religion, participation in labor union, race, ethnic group, family origin, legal address on family registry and medical information) unless authorized by law or it is necessary to conductbusiness on condition that Mizuho Financial Group has customer consent.
Security Measures
Mizuho Financial Group will maintain and manage accurate
and up to date personal information, and prevent leakage of
information with rational security measures. Mizuho Financial
Group will properly supervise employees and parties
entrusted with handling personal information.

Continuous Improvement

Mizuho Financial Group will acquire personal informationthat is necessary to conduct its business by proper and lawfulmeans.

Mizuho Financial Group will continuously review this policy
according to the development of information technologies
and the changes in social demand, and improve the management of personal information.

Purpose of Use

Procedures to Request Disclosure

Mizuho Financial Group will specify the purpose of use of
personal information and will not use it beyond the specified
purpose. Furthermore, Mizuho Financial Group will not use
personal information beyond the purpose limited by related
regulations.
The purpose of use of personal information is set forththrough the web site or other measures provided by eachcompany of Mizuho Financial Group.

Mizuho Financial Group will endeavor to properly andpromptly cope with following requests from customers:
 notification of the purpose of use
 disclosure of personal data correction, addition and deletion of personal data that do
not reflect the facts
 suspension of use and elimination of personal data suspension of providing personal data to a third party

Limitation on Providing Personal Information to a
Third Party

Customer Request

Mizuho Financial Group will not provide personal information
to any third party in principle unless the individual concerned
has agreed to such use or it is authorized by law. However,Mizuho Financial Group may provide personal information to
relevant entities without customer consent in following
cases:
 Mizuho Financial Group entrusts management of personal information that is necessary to achieve the purpose of use to a third party.
 Mizuho Financial Group is one of the parties in a consolidation transaction.
 Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.

Mizuho Financial Group will endeavor to cope with customer
requests for the management of personal information sincerely and promptly.

 Strengthening Information Security Management Systems
MHFG obtained certifications for the Information Security Management Systems of all divisions of the company under both the Conformity Assessment Scheme, “ISO/IEC27001:
2005,” the international standard, and “JIS Q 27001: 2006,” the domestic standard.
IS97580 / ISO IEC27001

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Contact Information

Mizuho Financial Group, Inc.
Marunouchi 2-chome Building,
2-5-1, Marunouchi,
Chiyoda-ku, Tokyo, 100-8333
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp/english/

Mizuho Corporate Bank, Ltd.

 MHFG's “News Release E-mail Distribution
Service”
MHFG offers an e-mail service for notifying registered users the title and the URL page of thegroup's news releases when releases are placed on
the group's website.
If you wish to register for this service, please
access MHFG's website (http://www.mizuhofg.co.jp/english/), and click “News Release E-mailDistribution Service.”

1-3-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8210,
Japan
Tel. +81-(0)3-3214-1111
URL: http://www.mizuhocbk.co.jp/english/

Mizuho Bank, Ltd.
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.mizuhobank.co.jp/english/

Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu,
Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
URL: http://www.mizuho-tb.co.jp/english/

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com/english/

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