Mizuho Financial Group

Integrated
Report–Annual Review–
April 2016 – March 20172017

Our Corporate Philosophy

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

The Mizuho Values
Customer First:
The most trusted partner lighting
the future

Innovative Spirit:
Progressive and flexible thinking

Mizuho’s Corporate Identity

Corporate
Philosophy:
Mizuho’sfundamental
approach to businessactivities, based on the
raison d’etre of Mizuho

Vision:Mizuho’s vision for
the future, realized

Team Spirit:

through the practice ofDiversity and collective strength“Corporate Philosophy”

Speed:
Acuity and promptness

The Mizuho Values:
The shared values and principles ofPassion:Mizuho’s people, uniting all executives andCommunication and challenge for

employees together to pursue “Vision”

the future1

Mizuho Financial GroupThe most trusted financial services group with a global
presence and a broad customer base, contributing to
the prosperity of the world, Asia, and Japan2017 Integrated Report2

Editorial Policy
This Integrated Report includes financial information as well as
non-financial information on such subjects as ESG. The reportpresents information on Mizuho’s efforts related to strategies,
governance, and other subjects along with information on
how those activities are leading to the creation of value for ourcustomers, society, and Mizuho over the short, medium, and longterms. It was edited with the intention of providing stakeholders withconcise and clear explanations in a story-like form.
The content of this Integrated Report was reported to the
CSR Committee and the Audit Committee of MHFG, and, after
verification of appropriateness by the Disclosure Committee,
the report was given final approval by the President & GroupCEO.
We hope this report will further improve understanding of Mizuho
and its goal of being “the most trusted financial services group witha global presence and a broad customer base, contributing to theprosperity of the world, Asia, and Japan.”
Guidelines Referred To
International Integrated Reporting Council’s “International Integrated
Reporting Framework”(published on December 2013)

Contents

About Mizuho

5
Our Goals

11

Scope of the report
Period covered: From April 1, 2016 to March 31, 2017
Also includes some information after April 2017
Scope covered: In principle, MHFG and its subsidiaries and affiliates
Publication Information
Date of issue: September 2017
Definition
MHFG: Mizuho Financial Group
MHBK: Mizuho BankMHTB: Mizuho Trust & Banking
MHSC: Mizuho Securities
TCSB: Trust & Custody Services Bank
MHRI: Mizuho Research Institute
MHIR: Mizuho Information & Research Institute
MHPW: Mizuho Private Wealth Management
All figures contained in this report are calculated using accounting
principles generally accepted in Japan (“Japanese GAAP”).
Forward-Looking Statements
This Integrated Report contains statements that constitute forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, including estimates, forecasts, targets andplans. Such forward-looking statements do not represent any guarantee bymanagement of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,”“believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,”“probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar
expressions in relation to us or our management to identify forward-looking
statements. You can also identify forward-looking statements by discussionsof strategy, plans or intentions. These statements reflect our current views
with respect to future events and are subject to risks, uncertainties andassumptions.
We may not be successful in implementing our business strategies,
and management may fail to achieve its targets, for a wide range of possible
reasons, including, without limitation: incurrence of significant credit-related
costs; declines in the value of our securities portfolio; changes in interest
rates; foreign currency fluctuations; decrease in the market liquidity of ourassets; revised assumptions or other changes related to our pension plans;a decline in our deferred tax assets; the effect of financial transactions
entered into for hedging and other similar purposes; failure to maintainrequired capital adequacy ratio levels; downgrades in our credit ratings; ourability to avoid reputational harm; our ability to implement our Medium-term
Business Plan, realize the synergy effects of “One MIZUHO,” and implement
other strategic initiatives and measures effectively; the effectiveness of ouroperational, legal and other risk management policies; the effect of changes
in general economic conditions in Japan and elsewhere; and changes toapplicable laws and regulations. Further information regarding factors that
could affect our financial condition and results of operations is included in“Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and
Financial Review and Prospects” in our most recent Form 20-F filed with the
U.S. Securities and Exchange Commission (“SEC”) and our report on Form
6-K furnished to the SEC on July 28, 2017, both of which are available in
the Financial Information section of our web page at www.mizuho-fg.com/
english/ and also at the SEC’s website at www.sec.gov.
The contents of this Integrated Report were prepared prior to theannouncement of our financial results for the first quarter of fiscal 2017.
We do not intend to update our forward-looking statements. We areunder no obligation, and disclaim any obligation, to update or alter ourforward-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.

3

Mizuho Financial Group

Our Strategies for
Creating Value

23

Foundations for
Our Corporate Value

65

Financial Review/
Company Information

91

Appendix104

1

Our Corporate Philosophy

5

Mizuho’s Journey

Index by Purpose

Our Performance

7

Business Domain

9Mizuho by the Numbers

9

Mizuho by the Numbers

33

Mizuho in Fiscal 201691

Financial Review

Business Strategy
11 Message from the Group CEO
17 Message from the Group CFO

7Business Domain

21 Value Creation Process

23	Progress of the Medium-term
Business Plan
35	Business Strategies by

23	Progress of the Medium-term
Business Plan
		 27	Proactive involvement in financial
innovation

29	For the Sustainable Development ofSociety and Mizuho
33

65

Mizuho in Fiscal 2016

Business Strategies by Company/Unit		 35

Retail & Business Banking Company

		 39

Corporate & Institutional Company

		 43

Global Corporate Company

		 47

Global Markets Company

		 51

Asset Management Company

		 55

Global Products Unit

		 59

Research & Consulting Unit

63

Increasing the Global Presence

Corporate Governance79

Compliance

69 Board of Directors

82

Fiduciary Duties

83

IT Strategy

		 74	Message from the Chairman of
the Board of Directors

75

Risk Governance77

Risk Management85	Embed a Corporate Culture that
Encourages the Active Participation of
Our Workforce
89

91	Six-year Major Financial Data
92

97

Office Network

99

Group Companies

Review and Analysis for Fiscal 2016

103 Corporate Profile

Management Support for SME
106	

ESG Information(Environmental, Socialand Governance)
29	For the Sustainable
Development of Society andMizuho65

Corporate Governance85	Embed a Corporate Culture that
Encourages the Active
Participation of Our Workforce

Stakeholder Communication(FY2011-2016)

105 Compliance Contacts

Company/Unit

126 Senior Executives
Location of Offices outside Japan128	

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

131 Investor Information

240	Non-Consolidated Financial Statements

107 Internal Audit Structure

132 Disclosure Policyof Mizuho Financial Group, Inc.

108 Risk Management Structure133	Privacy Policy Regarding Customer

and Three Subsidiaries [Under

Customers and Regional Revitalization

125 Business Continuity Management

Information
134	Financial Analysis [Under Japanese
GAAP]

Japanese GAAP]254 Status of Capital Adequacy
330 Websites

2017 Integrated Report4About Mizuho

Mizuho’s Journey

Always standing at the forefront of its time,
1873
The Dai-ichi Kangyo
BankMizuho’s History

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

1880

1873: Establishment of
The Dai-ichi Bank 1971
Establishment of the Daiichi Kangyo Bank throughthe merger between
Nihon Kangyo BankThe Fuji Bank
1880: Establishment
of Yasuda Bank, 1948
Changed name to The
Fuji Bank

1999 Announcementof establishing acomprehensive financial
services group <First asa Japanese Bank><First in Japan>

1999 2000

Announcement ofmerger of the three
former banks

Establishment of MHFG

2002

MHTB
MHSC

Yasuda Bank
(photo: National Diet Library)

1902(photo: The Mainichi)

2002 Organization basedon customer segments
created through split
and merger method

Establishment of MHBK and former
Mizuho Corporate BankThe Industrial Bank ofJapan
Establishment as a
special bank that not
only offers long-term
fund but that equips thefunction of securities andtrust banking‌Consolidated Gross
Profits

2,233.6(JPY billions)406.9‌Profit Attributable to
Owners of Parent(JPY billions)

History of the Financial
Industry

1,993.0
627.3

2002

5

2,112.3

2003

2004

(2,377.1)

Phase I (-1980s)

Phase II (1990s)

Phase III (2000s)

Commercial banks, securities companies, andinsurance companies coexisted independently

Era of conglomerates andmega banks

Era of investment banks andproprietary transactions

1988
Accord of Basel I

Regulatoryenvironment

Mizuho Financial Group

1996
Japanese “Big Bang” financial reform

1992
Financial system
reform1998
Merger between Citicorp and Travelers

1999
US Gramm-Leach-Bliley Act

2004
Accord of Basel IIAbout Mizuho Mizuho’s Journey

Mizuho’sDNA

has carved out history
2014 Transformation
into a Company withThree Committee

2012 The group wide
collaboration amongbanking, trust banking,and securities function2016 Introduced afull-scale In-house
Company System<First as a Japanese
Mega-bank><First as aJapanese Bank>

2016

2012 2013

Substantive One Bank

2006

Merger of banks, Merger of
securities companies

2014

2011

Listed on NYSE

Strengthening functions of
the holding company

Turning of MHTB and MHSC into
wholly-owned subsidiaries of MHFG

2,002.4

2,117.3
1,660.9649.9

1,806.9

2,025.3

620.9
413.2

311.2

2005

1,996.6

2006

2007

2,003.0

484.5

Introduction of Inhouse Company
System2,171.7

2,035.2

560.5

688.4

2,247.7

2,221.6

2,092.7

611.9

670.9

603.5

2014

2015

2016

239.4

2008

2009

2010

2011

2012

2013

(588.8)Phase IV (2010s-)
Pursuit of “New Financial Services”

Subprime Mortgage Crisis
Lehman Crisis

2010
US Dodd-Frank Act

2013
Phase-in introduction of Basel III

Tightening of regulations
End of high return business model of
non-conventional investment banking

Pursuit of ideal model for Finance2017 Integrated Report6About Mizuho

Business Domain

Mizuho Financial Group is composed of MHFG (holding company) and its subsidiaries and affiliates and provides banking, trust banking,securities, and other financial services.
Under a holding company, the group has five in-house companies, which determine and promote strategies group-wide across banking, trust
banking, securities, and other business areas according to the attributes of customers, and two units that support all of the in-house companies.

Mizuho Financial Group
Banking

Trust Banking

Securities

MizuhoBank

MizuhoTrust&BankingMizuhoSecurities(MHBK)(MHTB)(MHSC)

Retail & Business Banking Company

Corporate & Institutional Company

Global Corporate Company

Global Markets Company

Asset Management Company

Global Products
Unit

Research &Consulting Unit

Other Core Group
Companies* US Bank Holding Company, which is one of MHFG’s Core Group
Companies and MHBK’s subsidiaries

7

Mizuho Financial Group

Mizuho Americas*

About Mizuho Business Domain(Group aggregate, management account, rounded figures) (JPY billions)[Reference] FY2016 Net Business Profits by

In-house Company
Recalculated the FY2016 results based on the
FY2017 management account rules. JPY40
billion difference between In-house Company
Total and Consolidated Net Business Profits
is due to adjustment of management accountwhich is not attributable to the In-house
Companies

FY2016 results

FY2017 plan

Retail & Business Banking Company

13.0

47.0

Corporate & Institutional Company

240.0

218.0

Global Corporate Company

115.0

123.0

Global Markets Company

315.0*

219.0

Asset Management Company

20.0

24.0

In-house Company Total

703.0

631.0

Consolidated Net Business Profits

663.4

640.0

*Global Markets Company net business profits including Net Gains related to ETF is JPY345 billion (preliminary)

Asset Management

Research &Consulting

Other Core Group
Companies

MizuhoPrivateWealthManagement(MHPW)

Customers
Individual Customers / SMEs
/ Middle-market Corporations
Large Corporations / Financial
Institutions / Public-sector Entities
Americas / EMEA /East Asia / Asia & Oceania
Investors

AssetManagement
One

Investors
MizuhoResearch
Institute(MHRI)
MizuhoInformation& ResearchInstitute(MHIR)

Trust andCustodyServices
Bank(TSCB)

2017 Integrated Report8About Mizuho

Human Capital and Intellectual
Capital

Employees:

Social and Relationship Capital

Individual Customers:

60,0001

No.

in analysts ranking for
4 consecutive years
Nikkei Veritas (Published on March 19, 2017):
the most popular bond/forex analyst economist
Institutional Investor: All Japan Research Team Ranking

24

Comprehensive
Securities Accounts:

1.7

millionSME & Middle-market
Borrowers, etc.

100,000

70

80%(Group aggregated, management account)46%

FY2016%

Loan Balance8(Average Balance, Two Banks9),
Non-performing Loan (NPL) Ratio■ Domestic Offices (JPY trillions) ■ Overseas Offices (JPY trillions)Non-performing Loan (NPL) Ratio(%)

72.6

71.5

Net
Interest
IncomemillionCoverage of Forbes Global
2007 (Non-JapaneseCorporate Customers):

Coverage of Listed
Companies in Japan:

Proportion of Non-interest Income from
Customer Groups (Gross Profits)

Financial Capital

Financial Information

Non-financial Information

Mizuho by the Numbers

Noninterest
Income

54%

73.8

16.7

18.5

20.0

54.7

54.1

53.8

1.20

1.00

1.00

FY2014FY2015FY2016

1 April 2016 to March 2017, bookrunner basis, financial closing date basis, Source: Thomson Reuters
2 January to December 2016, bookrunner basis, Source: Thomson Reuters
3 April 2016 to March 2017, underwriting amount basis, pricing date basis. Deals including straight bonds, investment corporation bonds, FILP agency bonds, municipal bonds (leadmanager method only), Samurai bonds, and preferred securities, excluding MHFG’s bonds. Source: I-N Information Systems
4 April 2016 to March 2017, bonds issued by investment grade corporations in the Americas, bookrunner basis. Source: Dealogic

9Mizuho Financial GroupAbout Mizuho Mizuho by the Numbers

1

Syndicated Loans:

No.

5

No.

in Japan 1(8 consecutive years) ,

1

DCM:

No.

in Japan 3

Globally 2(No.1 among Japanesebanks)(No.1 among Japanesefinancial institutions)ATMs6:

800

6,900

Joint Branches among
MHBK, MHTB, and MHSC:

115
38(JPY billions)

611.9

670.9

603.5

550.0

FY2014FY2015FY2016FY2017(Estimate)

11

countries and regions

March 31,
2015

15.41
12.64
10.50

March 31,2016

millionSmartphone Apps Downloaded.:

offices worldwide,
covering(%)■ Common Equity Tier 1 Capital Ratio■ Tier 1 Capital Ratio■ Total Capital Ratio

11.50
9.43

(Market share: 30.2%)

Mizuho Direct(Internet banking) Members:

BIS Capital Ratio

14.58

No.

in the Americas4

Branches in Japan:

Profit Attributable to Owners of Parent

1

9

No.

(Straight bonds, municipal
bonds, etc.)

190

M&A Advisory forAnnounced Deals(Japanese
corporations)5

16.28

13.30
11.34

March 31,20172

million DL

Cash Dividend per Share of Common Stock,
Dividend Payout Ratio■■ Cash Dividend per Share (JPY)Dividend Payout Ratio (%)

7.5

7.5

7.5

7.5

30

28

31

35*

FY2014FY2015FY2016FY2017(Estimated Dividend)*Assuming Net Income Attributable to MHFG for FY2017 of JPY550.0 billions

5 April 2016 to March 2017, number of deals basis. Any Japanese related deals, excluding real estate deals Source: Thomson Reuters
6 Number of proprietary ATM locations along with the number of other ATM locations offering the similar user fees through its own membership service. (1,906 MHBK ATM locations and
5,080 Aeon Bank ATM locations)
7 Top 200 corporations from Forbes Global 2000 (excluding financial institutions)
8 Excluding loans to MHFG. “Overseas Offices” is calculated based on an aggregate of banking and trust account basis and represents loans booked at overseas offices, including theimpact of foreign exchange transaction
9 Aggregate figures for MHBK and MHTB on a non-consolidated basis
2017 Integrated Report10Our Goals

Message from the Group CEO

11

Mizuho Financial GroupOur Goals Message from the Group CEO

As a financial services consulting
group, we must thoroughly alignourselves with our customers’ needs,
be their best financial solutions
partner, and shape the future of
economies and societies.
Yasuhiro Sato

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

2017 Integrated Report12Our Goals

Message from the Group CEO

Mizuho’s Ultimate Goal
Mizuho’s Corporate Philosophy*, “bringing fruitfulness for eachcustomer and the economies and the societies in which we operate.
Mizuho creates lasting value. It is what makes us invaluable,”embodies our commitment to working as a united group to bringsustainable and stable financial growth to a wide range of customers
and contribute to the development of economies and societies
around the world.
We believe that the unchanging value we generate as a financial
institution is firstly our ability to shape the future of economies andsocieties due to our capability to take measured risks and to provide
financial intermediary functions, and secondly our ability to act asa superior financial partner, supporting customers in the pursuit of
their dreams and hopes as well as guiding them towards solutions totheir issues or concerns. Though business models may change withthe times, the value generated by these abilities is unchanging andtherefore we have incorporated them into our Corporate Philosophy
which forms the basis for all of Mizuho’s business activities.
In line with this Corporate Philosophy, in our medium-termbusiness plan for fiscal years 2016 to 2018 we have positioned“becoming a financial services consulting group” as our ultimate goal.
Around the world, economic and societal change is taking place
at a rapid pace. Consumer values are becoming more diverse, social
structures are becoming more complex, and globalization continues
to advance. Under these circumstances, customer needs are
becoming more sophisticated and social expectations are rising fromyear to year. In order to meet these needs, we will work towards ourgoal of becoming a financial services consulting group by committing
to being “a medium- to long-term financial partner, thoroughly aligned
to our customers’ needs, both their immediate needs and concerns
as well as those which they have not yet realized, and drawing on ourconsulting capabilities to provide optimal solutions.” Here I would liketo share with you the progress we have made towards achieving theultimate goal we have set out for Mizuho as well as the direction wewill take going forward.
*Mizuho’s Corporate Identity is composed of our Corporate Philosophy, Vision, and theMizuho Values.

15 Years of Progress
April 2017 marked 15 years since Mizuho’s formation.
Looking back over the past years, it is clear that Mizuho has
been a trailblazer since our formation as Japan’s first megabank in
2002. From 2012 we have been operating under a strategy of intragroup collaboration among our banking, trust banking, and securities
entities. In 2014 we were the first Japanese megabank to adopt a“Company with Three Committees” model of corporate governance(prior to amendment of Japan’s Companies Act, referred to as a“Company with Committees” model). Then in 2016 we became thefirst Japanese bank to adopt an in-house company system based on
customer segments.

13

Mizuho Financial Group

Recently, financial industry business models have been
undergoing major change. In particular in the 2000s, primarily in theWest, where the adoption of a non-traditional investment banking
business model at first reaped huge profits only to collapse due tothe sub-prime mortgage issue and resulting global financial crisis.
Financial institutions had become distanced from customers’ trueneeds. Thus, at the end of this period of excessive prioritization offinancial and capital markets, financial institutions needed to reflect on
their true purpose and seek to return to it.
With an understanding of the history that brought us to thispoint, Mizuho positioned the goal of fully implementing the “Customer
First” principle at the core of our previous medium-term business plan
and we are seeking to further pursue this goal in our current mediumterm business plan.
I believe it is in Mizuho’s DNA to be a trailblazer and we willdraw on this quality in order to fully implement the “Customer First”
principle by continually transforming our organization to thrive in the
coming era.

The World is at a Major Turning Point
As for the business environment, the direction of the global economy
remains unclear and unpredictable. Although there are expectations fora recovery, centered on the US, there is remaining uncertainty
surrounding the policies of the new US administration, political issues in
Europe, and trends in the Chinese economy. Also, many developed
countries are experiencing depopulation, facing declining birthrates andan aging populace. Coupled with globalization, climate change, higher
geopolitical risk around the world, the rise of anti-globalization
sentiment, and issues surrounding income disparity and poverty, it isclear that major global economic and social structural changes aretaking place. I believe we are at a major turning point. We cannot
continue on in the same direction as before. We must transform ourorganization to enable us to weather these changes and thrive in the
coming era.
With negative interest rates having been introduced in Japan andEurope, the business environment continues to be challenging for
financial institutions. We will need to continue to keep a close eye on
the possibility of a US interest rate hike and changes to international
financial regulations which have been tightening since the global
financial crisis. At the same time, advancements in digital technology
have led to a push in many industries to further incorporate
technology and this change has been both rapid and continuous. The
financial industry is no different—Fintech startups and companies
from other industries are emerging as new service providers ofexisting financial services, often in partnership with financial
institutions. Needless to say, there is the potential for a major shift in
financial institution business models.

Our Goals Message from the Group CEO

Looking Back on the First Year of Our
Medium-term Business Plan
We established our current medium-term business plan with theaim of creating a new business model in response to changes in thebusiness environment.
In our plan, we identify “fully implementing the ‘Customer First’
principle” and “pursuing operational excellence” as two key concepts
for attaining our goal of becoming a financial services consulting
group. Additionally, the plan focuses on the progressive developmentof the One MIZUHO Strategy of collaboration among our banking,trust banking, and securities entities, which we introduced in theprevious medium-term business plan.
In fiscal 2016, the first year of the current plan, we introduced
an “in-house company system” as a means of furthering our efforts
to fully implement the “Customer First” principle. This system hasenabled us to better execute strategy based on customer segments,
delegate authority to in-house company heads in order to speed up
decision-making, and strengthen initiatives for increasing income on
an in-house company basis, among other benefits.
After banking, trust banking, and securities, we identified asset
management as the “fourth pillar” of the One MIZUHO Strategy. In
the past fiscal year we consolidated the group’s asset management
functions in the newly established company, Asset Management One.

Similarly, we brought together the research and consulting functions
which had been scattered throughout the group into a collective titled“One Think Tank” and established the Research & Consulting Unit
as a means of strengthening the “fifth pillar” of our strategy. These
were both major steps towards strengthening the group’s consulting
capabilities.
As for our pursuit of operational excellence, I am personallyserving as the Chairman of the Operational Excellence Promotion
Committee in order to lead our efforts to transform employee
mindsets. In promoting operational excellence, we aim to increase
the efficiency of our overall operations by simplifying and streamlining
operations, speeding up decision-making, and making otherimprovements. By combining these efforts with initiatives forincreasing the sophistication of our operations through the proactive
incorporation of digital innovation, we aim to achieve not only areduction in costs, but more importantly, enhance the value of theservices we provide our customers. In fiscal 2016, some of the shortterm initiatives we advanced were those for streamlining and trimming
down Head Office functions and those for revising our productand service offerings. We also fleshed out specific strategies andmade progress towards medium- to long-term structural reforms by
consolidating shared group functions and utilizing digital technology
in order to transform our business processes.

2017 Integrated Report14Our Goals

Message from the Group CEO

Despite the challenging business environment in fiscal 2016,
including negative interest rates, under our newly implemented inhouse company system Mizuho was able to increase non-interest net
income on a group basis and make progress towards the disposalof cross-shareholdings. As a result, we achieved Profit Attributableto Owners of Parent of JPY603.5 billion, exceeding our projection of
JPY600 billion set at the start of the fiscal year. We were also able
to maintain a sufficient Consolidated Common Equity Tier 1 Capital
Ratio (CET1 Capital Ratio)* of 9.27%*Basel III fully-implemented basis (based on current regulations), excluding Net Unrealized
Gains on Other Securities.

Accelerating the One MIZUHO Strategy throughCommitment to Customer-focused Business
Operations and Fundamental Enhancement of
Productivity
Though the business environment is likely to remain uncertain in fiscal
2017, it is an important year for Mizuho as we seek to position
ourselves to succeed in the upcoming final fiscal year of our current
medium-term business plan.
Our management policy for this fiscal year is to accelerate the
One MIZUHO Strategy through commitment to customer-focusedbusiness operations and fundamental enhancements to productivity.
We will implement a variety of initiatives in line with this management
policy and the five basic policies under the medium-term businessplan.
As a means of fully implementing the “Customer First” principle,
we will work to further optimize the in-house company system as wellas ensure that our actual business operations are in line with ourpolicies and action plan regarding Mizuho’s fiduciary duties*. Also, in
addition to our pursuit of operational excellence, we will implement
fundamental structural reforms as a means of responding to changes
in the global economic climate and the regulatory environment for
financial institutions. And with an eye to preparing for the future
beyond the period of our current medium-term business plan, we will
devise and move towards the implementation of strategy with a focus
on strengthening cost competitiveness and increasing Gross Profits.
In terms of strengthening cost competitiveness, we will revise ourchannel strategy to optimize the way we provide in-branch, online,
and mobile services. We will also transform business operations
through the use of digital technologies such as blockchain, streamline
and increase organizational efficiency on a group-wide basis, andimplement IT system structural reforms, among other measures. As
for increasing Gross Profits, our plans include significantly shifting

Structural Reforms which Position Us to Succeed during the Current Medium-term Business Plan and Beyond

FY2016FY2017FY2018Business environment

Medium-term business plan: “Progressive Development of One MIZUHO—The Path to a Financial Services Consulting Group”
Unpredictability in the global economy

Increasing uncertainty in terms of ability tomeaningfully increase Gross Profits

Structural changes in the economy and society
Cost structure reform is becoming increasingly
Challenging business environment for financial institutions

essential for maintaining competitiveness

Fully implement the “Customer First” principle

Mizuho’s initiatives

Pursue operational excellence
Introduction of the in-house company system
Selecting and focusing on business areas
5 Basic
Policies

Mizuho Financial Group

respond to further changes in the business environment
Directives

Establishment of a resilient financial base
Proactive involvement in financial innovation
Embedding a corporate culture that encourages the active
participation of our workforce to support a stronger Mizuho

15

Implement structural reforms from FY2017 onward toStrengthen costcompetitiveness

Increase
Gross Profits

Reforms inhuman resourcesmanagement

Our Goals Message from the Group CEO

management resources to areas with high profitability and growthpotential, strengthening non-interest business, and utilizing digitaltechnology to create new business. Another one of our top priorities
is to ensure a stable and smooth migration to Mizuho’s nextgeneration IT system. We have been carefully preparing for thesystem migration and are planning to roll out the new system tobranches and departments in stages after completing a thoroughmigration rehearsal and other testing.
*Fiduciary duties is a general term for the broad range of various roles and responsibilities
that fiduciaries are expected to fulfill when engaging in certain business activities, inorder to live up to the trust that is placed in them by their customers.

Continually Enhancing Corporate Value
In addition to these initiatives, it is essential that we continuallystrengthen Mizuho’s corporate governance as this will not only
support our efforts to become a financial services consulting groupbut also contribute to the ongoing enhancement of our corporate
value. Mizuho has already proven to be a front-runner in corporate
governance among Japanese financial institutions as a result of ourefforts to strengthen the functions of our holding company and ourearly transition to the “Company with Three Committees” model.
In June 2017, Mizuho became the first Japanese bank to appoint
external directors for the positions of Chairman of the Board of
Directors and Chairmen of all three legally required committees inJapan. In doing so, we have put in place a framework to ensure amore transparent and fair decision-making process as well as more
effective supervision. Going forward, we will continue to ensure
strict compliance with Japanese laws and regulations in addition toproactively implementing global best practices in terms of business
operations and administration, as befitting a globally expanding
financial group. Going forward, we will make every effort to further
enhance the sophistication of our corporate governance.
We will also put an equally strong emphasis on enhancing
employee engagement and embedding a robust corporate culture. At
Mizuho, we strongly believe that a financial institution’s most valuableasset is its people. We will continue to implement fundamental
reforms in human resources management in order to maximize
employee engagement throughout our entire workforce. As wetransition to human resources management practices which respect
and focus on the individual, we will promote diversity and inclusion asa means of supporting the advancement, development, and active
participation of women, non-Japanese nationals, and other diverse
talent. We will also put forward initiatives in areas such as flexible
work arrangements and employee health management. In terms ofcorporate culture, I am confident that we will continue to cultivatea robust corporate culture through the accumulation of the day-today actions of each individual as we all remain aware of the Mizuho
Values and seek to put them into practice. Each office will continue
to identify their own specific goals in the form of an “office vision”
and work towards achieving it. These efforts are another means ofencouraging each individual employee to take proactive measures inorder to exemplify the Mizuho Values.
Additionally, Mizuho is committed to addressing sustainability in avariety of fields, including social and environmental issues. Therefore,
we aim to ensure that our corporate social responsibility (CSR)
initiatives are strategic from a medium- to long-term perspective.
Mizuho’s CSR initiatives aim to contribute to the sustainable
development of society which, in turn, creates a foundation for thecreation of new corporate value and further development for Mizuho.
That is why we have positioned CSR as a core component of ourbusiness activities. In recent years, more is expected of companies
in terms of addressing social issues, especially considering theshared world-wide goals for sustainable development which are
now in place such as the United Nations’ sustainable development
goals (SDGs) and the Paris Agreement, a new framework on climatechange. Mizuho intends to meet these high expectations by runningour business in a way that creates value for our stakeholders while
simultaneously fulfilling our role within and duty to society. We will also
proactively share information on our CSR activities and strengthencommunication with stakeholders.

In Conclusion
As structural changes in the economy and society continue toadvance at a rapid pace, Mizuho must always be at the forefront of
this change. After all, it is in our DNA to be a trailblazer and we must
maintain a broad and forward-looking perspective in order to foresee
our customer’ needs and predict further economic and social change.
By identifying solutions and strategies for these needs and changes,
we can work in close partnership with our customers to contribute to
the sound development of local economies and societies. Throughthese actions, Mizuho can achieve a sustainable competitive
advantage, enhance our corporate value, and continue to be an
irreplaceable and reliable presence for all of our stakeholders: ourshareholders and customers, the local societies in which we operate,
and our employees and their families.
We appreciate your continued support and will do everything in
our power to not only meet but exceed your expectations.

July 2017

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

2017 Integrated Report16

Our Goals

Message from the Group CFO

We aim to contribute to the growth anddevelopment of our customers and society
by establishing a stable profit structure androbust financial base, while engaging in soundrisk-taking and providing optimal solutions.

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

Mizuho’s Financial Management Principles

Overview of Fiscal 2016

Mizuho aims to contribute to the sustainable growth of our diverse

During fiscal 2016, despite a challenging business environment

range of stakeholders, particularly our customers, the economies

including the continued negative interest rate policy of the Bank ofand industries of Japan and countries around the world, and ourJapan (BOJ) and increased uncertainty in the global economy, undershareholders.

the newly introduced in-house company system, the group achieved

To achieve this, our fundamental approach to financial

JPY603.5 billion in Profit Attributable to Owners of Parent (exceeding

management is to establish a stable profit structure and a robust

our projection of JPY600 billion) due in part to factors such as profit

financial base that can withstand changes in the businessfrom cross-shareholding disposal and extraordinary gains as a result

environment, and to fulfill our sound risk-taking function to help ourof the establishment of Asset Management One.

customers, economies, and industries realize growth.

Under the BOJ’s negative interest rate policy, our loan anddeposit rate margin continues to narrow, and it is increasingly

17

Mizuho Financial GroupOur Goals Message from the Group CFO

important for us to counteract the reduction in net

structure reforms to make us well-prepared for theinterest income by increasing non-interest income.

future, working to establish a stable profit structure

In fiscal 2016 we were able to produce solidand robust financial base.
Regarding specific financial targets, by the end

results such as an increase in solution businessrelated income from the Customer Groups, but weof fiscal 2018 we aim to achieve a CET1 Capitalmust seek to further accelerate our initiatives for

Ratio of approx. 10%, Consolidated ROE2 ofbecoming a financial services consulting group as

approx. 8%, RORA (Profit Attributable to Owners ofoutlined in our medium-term business plan.

Parent) of approx. 0.9%, a Group Expense Ratio■ Profit Attributable to Owners of Parent

603.5

JPY

billion-JPY67.3 billion (year-on-year)

3

As for our capital, one of our top priorities

of approx. 60% (excluding expenses related to theamong the financial targets in the medium-term

next-generation IT system, etc.: higher 50% level),business plan is achieving a higher Consolidated

and a reduction in cross-shareholdings of JPY550

Common Equity Tier 1 Capital Ratio (CET1 Capitalbillion4. In fiscal 2016 we have made steady

Ratio)1 and we have made progress by increasing it

progress towards each of these targets.

■ Consolidated Net Business Profits

663.4

JPY

billionCurrently, the direction of the world economy

to 9.27%.

is more unpredictable and uncertain due toMedium-term Business Plan
Targets and Progress-JPY189.4 billion (year-on-year)

increasing geopolitical risk, structural issues whichhave materialized, and other factors. In such anenvironment, it is more critical than ever that we

In May 2016 Mizuho established and released our

respond quickly and advance business structure

current medium-term business plan, “Progressive

reforms in anticipation of what the future holds. In

Development of ‘One MIZUHO’”, which is a three-addition to fully implementing the “Customer First”

 rogress in Fiscal 2016 Towards■P
Medium-term Business Plan Targets

9.27

%

year plan through to the end of fiscal 2018. In theprinciple in line with our medium-term business

CET1 Capital Ratio

current economic environment, with the slowdown

plan, we will seek to strengthen income fromin emerging economies, unstable commodity

Customer Groups, primarily non-interest income,prices, developed economies losing steam, andby significantly shifting risk assets, personnel, and

8.5

other factors, we cannot expect the same level ofother management resources to areas with higheconomic growth as there has been in the past.

profit and growth potential.

Therefore, we are aiming to advance business%

Consolidated ROE

0.9%

RORA (Profit Attributable to
Owners of Parent)■ Financial Targets for Fiscal 2018

Group Expense Ratio3

Approx. 60%
CET1 Capital Ratio1

Approx.10%

Excluding expenses related to the nextgeneration IT system, etc.: higher 50%
level
Cross-shareholdings Disposal

JPY550 billion4
Consolidated ROE2

Approx. 8%

RORA (Profit Attributableto Owners of Parent)

Approx. 0.9%

1. Basel III fully-effective basis (based on current
regulations), excluding Net Unrealized Gains on
Other Securities
2. Excluding Net Unrealized Gains on Other
Securities
3. Group aggregated
4. Shares listed on the Japanese stock markets,
acquisition cost basis, cumulative amount from
FY2015 to FY2018

2017 Integrated Report18

Our Goals

Message from the Group CFO

Establishing a Stronger Financial
Position■ Operational Excellence

Speed

Cost

Quality
Accuracy

Sustainability

Basic policy: Enhance the “4Cost Structure Reform

Controlling the Balance Sheet Strategically

Under a continually challenging business

Taking into consideration changes to international

environment where it is difficult to achieve significant

financial regulations, the increasing uncertainty ingrowth in Gross Profits, cost structure reform isthe economic climate, and other concerns, it ismore important than ever. The front office andimportant that we control the balance sheet flexibly

Head Office must work together in the pursuit ofand proactively in anticipation of potential change,

operational excellence and increase awareness ofand that we achieve an optimal balance of risk andcost performance in order to control expenses andreturn. By implementing ROE management at the in-ensure effective expenditure.

house company level as a means of establishing an

Also, by utilizing Fintech and taking advantage

effective management framework based on customerof the amendments to Japan’s Banking Act in ordersegments, we aim to enhance awareness of risk andto consolidate business operations within the group,

return and actively reallocate assets as we clarify

We will pursue operational

we will take different and innovative approaches inwhich business areas we will focus on or scale backexcellence and move forward

order to fundamentally improve productivity.

from based on an analysis of the growth potential andelements of operation” to ahigher levelwith cost structure reforms.

profitability of each area within our business portfolio.

■ Balance Sheet Control Initiatives for Fiscal 2017

■ Strengthen balance sheet control to enhance resilience toward changing external environment and tightening regulations

Consolidated Total
Assets JPY200 trillion

Yen•	Improve risk-return•	Reduce low-profitability
assetsLoans:
JPY78 trillion(+JPY4 trillion)

Deposits:
JPY130 trillion(+JPY13 trillion)

Securities:
JPY32 trillion
Stocks•Promote crossshareholdings disposal toachieve the disposal target
on an acquisition cost
basis

Bonds

•Fullyinstill early warning
system reflecting theexternal environment
conditions•Identify the timing toreconstruct bond portfolio

19

Mizuho Financial GroupAs of March 2017:( ) represent changes from March 2016(-JPY7 trillion)

Other Assets
JPY89 trillion Other Liabilities:
JPY60 trillion(+JPY9 trillion)(-JPY6 trillion)•	Accelerate the shift fromsavings to investment/
asset building•	Increase investment
products balance andaccelerate the groupwide integrated businesspromotion

Non-yen•	Enhance attention toward
non-yen funding costs
including customer
deposits•	Accumulate customer
deposits systematically• Steadily accumulate
Retained Earnings in orderto achieve CET1 Capital
Ratio of approx. 10%

Net Assets:
JPY9 trillion(-JPY0 trillion)Our Goals Message from the Group CFO

Disposal of Cross-shareholdings

Mizuho will work to build a stable capital base to a level that is

Regarding cross-shareholdings, we assess the meaning of holding

comparable with competing financial groups.

based on criteria such as profitability, and unless we consider these

As for the policy to return profits to shareholders, we haveholdings to be meaningful, we will not hold the shares of other

implemented a steady dividend payout policy setting a dividend payout

companies as cross–shareholdings. In order to maintain a stableratio on a consolidated basis of approximately 30% as a guide for our

financial base, it is essential that we reduce share price fluctuation risk

consideration. Based on this policy, we have decided to make cash

to an appropriate level as it has a significant impact on our financial

dividend payments of JPY7.50 for fiscal 2016. Going forward, we

situation. For the period from March 31, 2015 until March 31, 2019

continuously aim to realize steady returns to shareholders.

(the end of the current medium-term business plan), our target is areduction of JPY550 billion in the book value of cross-shareholdings.
We have made steady progress towards this goal as of March 2017.

■ Steady Return to Shareholders■ ■Cash Dividend per Share of Common Stock (JPY)Dividend payout ratio (%)■ Progress Towards Cross-shareholdings Disposal Targets

1

26(JPY billions)

1,962.9

1,847.1

Reduction amountas of March 2017
JPY275.3 billion

Reduction target
by March 2017
JPY250 billion

1,687.5

Reduction target
by March 2019
JPY550 billion

30

352

31

28

23

6.0

6.5

FY2012FY2013

7.5

7.5

7.5

7.5

FY2014FY2015FY2016FY2017
estimates

2. Assuming Profit Attributable to Owners of Parent for FY2017 of JPY550.0 billion

Dialogue with Shareholders and Investors
Mizuho places its highest management priorities on continuing toMarch 2015

March 2016

March 2017

March 2019

1. Shares listed on the Japanese stock markets, acquisition cost basis

disclose information to our shareholders and investors in a fair, timely,
and appropriate manner, in order for them to form relevant judgments
and appraisals of the group.

Financial Management to
Support Sustainable Growth

For individual investors, in addition to information posted on our
dedicated webpage for individual investors, in October 2016 we held
an online informational session with the CFO specifically for individual

Capital Adequacy and Return to Shareholders

investors.

A stable capital base is essential to ensuring Mizuho’s sustainable

For analysts and institutional investors, following periodic

growth and our ability to meet the expectations of stakeholders byannouncements of financial results, Mizuho holds online conferences

maintaining our financial soundness and fulfilling our role as a financial

and IR meetings where members of management give presentations

intermediary even during times of economic downturn. At the sameon management strategy, financial position, and other topics.

time, we understand the importance of our obligation to provide

Additionally, we have hosted informational sessions on our businessreturns to our shareholders and investors. Therefore, Mizuho continues

strategies regarding individual business areas and have participated in

to carry out a disciplined capital management policy which maintains

conferences for investors held by securities companies.

the optimal balance between strengthening our capital base andproviding steady returns to shareholders.
To strengthen Mizuho’s capabilities for coping with changes in thebusiness environment, including trends in global financial regulations,Through these events and other opportunities, we hope toincrease dialogue with our shareholders and investors and utilize
their feedback to improve our corporate management and enhanceaccountability with the goal of increasing Mizuho’s corporate value.

2017 Integrated Report20

Our Goals

Value Creation Process

Mizuho’s Corporate Philosophy includes “bringing fruitfulness for each customer and the economies and the societies in which we operate.
Mizuho creates lasting value. It is what makes us invaluable.”
To implement this Corporate Philosophy, Mizuho is drawing on its strengths, and taking into consideration the growing sophistication ofcustomer needs and the changes occurring in the business and social environment. It is also structuring a new business model, the financial
services consulting group, by taking the One MIZUHO Strategy to the next stage. Specifically, based on the foundations of the “Customer First”

Mizuho’s Corporate Identity

Business
Environment
Economy• Persistence of negative interest

rates• Concerns about US interest ratehike
• Expansion of geopolitical risk
• Rise of anti-globalism sentiment

Regulations and Competition• Strengthening of international
financial regulations• Revision of Banking Act• Advancement of technology

A Financial Services Consulting Group
Fully Implement the Customer First
Principle (Customer-Focused)

One MIZUHO Strategy
Provide services for each customer segment on a group-wide basis
under the in-house company system

Five companies
Corporate & Institutional Company
Global Corporate Company
Global Markets Company• Advancing age of corporate

Asset Management Company

executives• Rapid changes in business

Two units

Retail & Business Banking Company• Steady medium- to long-term asset
building for individuals

Pursue Operational Excellence

Research &Consulting Unit

Customers

What Mizuho Aims to Become in the Medium Term

Global Products
Unit

Issues for Customers
and Society

Medium- and Long-term CSR
Initiative Policy

Advanced Governance System

environment

Society• Depopulation, declining birthrates,

Corporate Governance
P65-74

Risk Governance
P75-76and an aging populace• Globalization• Intensification of climate change• Industrial development centered inemerging countriesBusiness Strategies
by Company/Unit
P35-6221

Mizuho Financial Group

Mizuho’s Strengths

Mizuho by the Numbers P9-10

Human and intellectual capitalSocial and relationship capital

Strong workforceNo.
1 in industrial expertise among
Japanese banks
Sophisticated product capabilities

Broad customer baseExtensive
global network and otherchannelsOur Goals Value Creation Process

principle and “operational excellence” and through the full use of its sophisticated risk-taking capability and financial intermediary functions,Mizuho will thoroughly align itself with its customers’ needs, be their best financial solutions partner, and shape the future of economies andsocieties.
Through using these initiatives to gain competitive advantage and to increase its corporate value by securing sustainable and stable profits,
Mizuho will fulfill even greater social missions than ever before.

Realize increased corporate value and fulfill even greater social mission
Unchanging value as a financial institution

Address customer issues andcontribute to sustainable growth
The most trusted partner in solving
problems and supporting the sustainablegrowth of customers and communities

Build the future of economies
and societies

Risk-taking
capabilities

Fully deploy our

Supporting industrial development tosolve global issues

Vitalizing local economies

Activating financial assets in Japanby fulfilling our fiduciary duties

Supporting business/asset succession
and innovative companies

Creating and innovating businesses
using new technology

Promoting responsible investment
and financing

consulting capabilities

Financialintermediaryfunctions

Financial capital
Stable funding structureSound loan assets
Strong capital base

Our Strategies for Creating Value
P23-64

Share issues aimed at further growth2017 Integrated Report22

Our Strategies for Creating Value

Progress of the Medium-term Business Plan

In fiscal 2016, Mizuho began to implement its three-year medium-

Essence of New Medium-term Business Plan Based on Our RAF

term business plan, entitled Progressive Development of “OneMIZUHO”—The Path to a Financial Services Consulting Group.

Risk appetite

Under the new medium-term business plan, Mizuho will perfectwill be the full implementation of the “Customer First” principle

Medium-term risk appetite policy(FY2016-2018)

Businessstrategies‌Highlyvalue the “customer first”
principle and asset quality toestablish sustainable and stableprofit base through selection
and concentration of risk-taking
areas‌Expand and strengthen noninterest business to improve therisk-return structure

Financialstrategies‌Seek
to attain a sufficient CET1
ratio to guard against any
stress resulting from external
environment change‌Strengthen non-yen currency
funding structure and balance
sheet control‌Cross-shareholding disposal

ManagementfoundationsE‌ stablishing governance measuresfor each customer segment byimproving the management of
the RAF‌Develop and establish risk
culturepromoted in the previous medium-term business plan and the pursuitof “operational excellence.” Mizuho has also defined 5 basic polices
based on medium-term risk appetite policy and business portfolio
analysis and 10 basic strategies as specific representations of those 5
policies with regards to business strategy, financial strategy, andmanagement foundations.
In the plan’s first year (fiscal 2016), the group united in taking
action based on the management policy of “strengthening our
foundation for establishing a sustainable competitive advantage.”

Mizuho’s Risk Appetite Framework (RAF) P75-76
Mizuho has positioned the RAF as the management control
framework to support optimization of orderly risk-taking and riskreturn. Specifically, we will further concretely define our risk appetite*in establishing our medium-term and fiscal year business plans. The
risk appetite will be the basis for establishing our business strategy,
resource allocation, and budget, thus integrating risk management,
business strategy, and profits in order to maximize our risk-return.
*Risk appetite consists of a risk appetite policy that serves as the fundamental
policy regarding our risk-taking activities and risk appetite metrics that serve asmeans of quantifying the level of risk-taking based on the risk appetite policy.

Business portfolio analysis

financial services consulting group. The two foundations for this effort

Areas to focus on
Areas to streamline

the One MIZUHO Strategy by creating a new business model as a

Fully Implementing the “Customer First” Principle-Introduction of the In-house Company SystemThe needs of customers and society are becoming increasingly

units to enhance expertise and promote utilization across all the in-sophisticated with the rapid changes taking place in the global

house companies.

economic and social environment. In order to satisfy these needs,

we were able to move forward steadily with putting in place“Customer First” principle, and by fully deploying the consulting

infrastructure and various types of frameworks. As a result, we havecapabilities of the group’s asset management and research &achieved our initial objectives with positive benefits such as strategy

consulting functions, in addition to the banking, trust banking, andexecution based on customer attributes, speeding up of decision

securities functions.

making by delegating authority to company heads, and strengthening

To thoroughly strengthen our “Customer First” principle approachand to realize our goal of becoming a financial services consulting
group, we have introduced a new in-house company system.
Specifically, Mizuho has established five in-house companies thatof measures to increase each in-house company’s profitability.
Starting in fiscal 2017, we are addressing higher-level themes
such as optimizing personnel allocation/collaboration between
in-house companies and further reforming our cost/personnel

formulate and implement group-wide strategies across banking, trust

structure. As our in-house company system operations increase inbanking, securities entities, etc. for each customer segment. Productsophistication, we will be even better able to satisfy customer needs.

and research functions have been reorganized into two independent23

In fiscal 2016, the first year for the in-house company system,

Mizuho must provide optimum solutions by fully implementing our

Mizuho Financial GroupOur Strategies for Creating Value Progress of the Medium-term Business Plan

Essence of the medium-term business plan
Mizuho’s
objectives

Financial services consulting group−The most trusted partner in solving problems and supporting the sustainable growth of customers and communities−

Fully implement the “Customer First” principle

Pursue operational excellence(Customer-Focused)

5 basic
policies

Introduction of the
in-house company
systemSelecting andfocusing ofbusiness areas

Establishmentof a resilient
financial base

Proactive involvement infinancial innovation

Embedding a corporate culture thatencourages the active participation of ourworkforce to support a stronger Mizuho

1 Strengthening our model for non-interest income business on a global basis

Businessstrategies
10 Basic
strategies

Financialstrategies
Managementfoundations

2 Responding to the shift from savings to investment 

P51-543 Strengthening our research and consulting functions 

P59-624 Responding to Fintech 

P27-285 Promoting the Area One MIZUHO strategy P35-386 Controlling the balance sheet strategically and reforming the cost structure 

P17-20

7 Disposing of cross-shareholdings 

P17-208 Completing implementation of the next-generation IT system 

P83-84

9 Fundamental reforms of HR management 

P85-8810 Continued initiatives towards embedding a corporate culture to support a strong organization 

P85-88

Measures to Increase Sophistication of In-house Company System Operations

FY2017FY 2016
Introduction of in-house company system
Objectives

Previous medium-termbusiness plan period
Unit system‌Consistency ofstrategy‌Speed up
decision-making
processes
and enhancegroup’s frontline
capabilities‌Clear responsibility
for profits

Increased sophistication for in-housecompany system operations
Measures for higher-level themes
Future issues

Benefits
Strategy execution based on
customer attributes

Optimization of personnel allocation/
collaboration between companies

Speeded up decision making by

Further reform of cost/personnel

authority delegation to company heads

structure

Strengthened measures to increase
profitability of each in-house company

Building of a foundation
for unified group
operations

Completed the system design for achieving initial objectives

2017 Integrated Report24Our Strategies for Creating Value

Progress of the Medium-term Business Plan

Pursuing Operational Excellence
In fiscal 2016, Mizuho made steady progress on problem-

In order to bring a sustainable competitive advantage to Mizuho, we

solving-type measures aimed at streamlining Head Office functions

are pursuing operational excellence by improving operations thatprovide the driving force for our strategies together with our “Customer

and revising products and services. We also moved forward withFirst” principle strategy.

structural-reform-type measures such as consolidation of groupcommon operations and innovation of business processes using

To accomplish this, we will thoroughly review our existing
business processes, revise our channel strategy for branch anddigital technology. Along with these, steady change was also seen in

online/smartphone services, consolidate common operations, andeach individual employee’s mind-set with respect to everyday work.
Going forward, we will further accelerate employee mind-set

incorporate technology innovation (Fintech, etc.) and new ideas.
With such initiatives, we aim to improve operational efficiency and toreforms, while also moving to execute particularly structural-reform-

enhance service value for customers by raising the sophistication oftype measures.

our operations.

Measures for Achieving Operational Excellence

Improvecustomer
service

Channel strategy

Standardization and systematization

AI×big data

All branches provide
banking, trust banking,and securities services

Speed upCreate new
business

Maximize operational excellence effects via structuralreform-type measures
FY2016

Strengthen
cost
competitiveness

Expensereductioneffect12

JPY(results)

billionAll problem-solving-type(compared to
FY2015)

No. of measures

Approx.

FY2017200 (results)

JPY

35

‌Revise channel
strategy‌Consolidate
common operations‌Utilize technology

FY2018billionJPY

70billionProblem-solving-type
JPY15 billion

Problem-solving-type
JPY30 billion

Structural-reform-type
JPY20 billion

Structural-reform-type
JPY40 billion

Approx.

Problemsolving-type+
Structuralreform-type

Pursue a sustainable
competitive
advantage throughfurther structuralreforms

300

Foster an employee mind-set and embed a corporate culture
Mind-setreforms

25

Mizuho Financial Group

Utilize know-how and bestpractices within group

Stimulate measures led by
frontline offices

Eliminate inward-facing energy

Our Strategies for Creating Value Progress of the Medium-term Business Plan

Selecting and Focusing of Business Areas
In order to optimally allocate limited management resources and achieve sustainable growth, in fiscal 2016 we clarified focus areas and areas tostreamline by analyzing our business as a whole based on market attractiveness and Mizuho’s competitive advantages. Going forward, we will
move to steadily shift management resources from the areas to streamline to the focus areas. This should lead to increased profitability.

Selecting and Focusing of Business Areas
Business portfolio analysis

Management resource rebalancing
Areas for streamlining and selection

High

Attractivenessof market

Focus areas
Areas forstreamlining andselection
Competitive advantage

Low‌ ross-shareholdings
C‌Low-profitability lending

Strengthening of noninterest business via groupcollaboration

Creation of new businessusing technology‌ ow-profitability
Ltransactions‌ &A/DCM2/ECM3
M‌Face-to-face consulting‌Fintech‌IT digitalization   ‌Global 300

High
Up to FY2017 (plan)

Quantitative assessment

Qualitative assessment

Profitability

Volatility

Regulatory impact

Capital efficiency

In-house company collaboration

Technology

Focus areas

RWA

1

Up to fiscal 2017 (plan)

Approx. -JPY2.3 trillion

RWA

Headcount Approx. -1,000

Approx. JPY3.9 trillion

Headcount Approx. 1,340

FY2016 RWA Approx. -JPY0.8 trillion

FY2016 RWA Approx. JPY1.7 trillion

Results Headcount Approx. -430

Results Headcount Approx. 590

1. Risk asset 2. Bond underwriting 3. Equity underwriting

Embedding a Corporate Culture that Encourages the Active Participation of Our Workforce

P85-88In order to create a sustainable competitive advantage by strengthening the workforce that supports Mizuho, in fiscal 2016 we moved forward with a variety of measures
for the establishment and spread of the fundamental reform of HR management to promote active participation of all employees. We also promoted measures for theestablishment of a strong corporate culture that encourages all employees to take initiative. We will continue to implement and strengthen measures such as these.

Embedding a Corporate Culture that Encourages the Active Participation of Our Workforce

Fundamental reform of HR management topromote active participation of all employees

Efforts to establish a strong culture

Corporate
governance

1 Encouraging all employees to put theMizuho Values* into practice‌Penetration of the Corporate Philosophy; making
the Vision of Individual Offices a core component‌Continuing General Managers’ Off-site Meetings‌Utilizing training programs

1 HR management that respects employees’ individuality‌Development-focused HR management
aimed at enhancing employees’ strengths‌Multi-track HR management that responds
to the career goals of a diverse workforce‌Promoting the health and wellbeing of employees
and maintaining a healthy work environment

2 Strategic employee rotation

Integrated threepart initiativeHR
management

Culture3 Development of future executive leaders
4 Globalization of Mizuho’s talent and HR management
5 Promotion of diversity and inclusion

Take the practice of the ideals and values of
the One MIZUHO concept to the next level

2 Further promoting internal communication‌Creating a sense of unity and improving loyalty‌Vitalizing measures for mutualcommunication between employees‌Sharing examples of practicing Mizuho
Values at a higher level* ‌The values and principles shared by all of Mizuho’s
internal stakeholders to pursue the Vision: Customer First,
Innovative Spirit, Team Spirit, Speed, and Passion2017 Integrated Report26

Our Strategies for Creating Value

Progress of the Medium-term Business Plan

Proactive involvement infinancial innovation
Through making use of cutting-edge technology and collaborating with external organizations,Mizuho is endeavoring to provide highly convenient services for its customers more so than before
Approach to Financial Innovation■ Financial Environment
In recent years, a worldwide trend toward offering innovative financial
services has emerged, and it has been referred to as “Fintech.” Fintech
includes such technologies as big data, artificial intelligence (AI),and blockchain, and it is looked to as the harbinger of new financial
services. Along with this trend, in Japan also, the Banking Act has
been revised to enable financial institutions to collaborate with venturebusinesses that are expected to develop new financial services topromote open innovation. In this connection, the so-called “5% rule,”
which, under the Banking Act, limited voting ownership in othercompanies by financial institutions to 5% has been relaxed for enabling
investment into finance-related IT companies (Fintech companies).
■ Directions for Mizuho’s Initiatives
Mizuho, as a megabank, has built up, on the one hand, a customer
base and an information base, while also developing strengths in
the form of financial knowledge and technology. On the other hand,
Mizuho’s business position has not always been strong in terms ofinnovative creation, advanced technology, and assessment of futurebusiness potential. In today’s business environment, by collaboratingwith large vendors that have these strengths and Fintech companies,
Mizuho is looking to create new businesses and provide highly
convenient services for our customers more so than before, as toestablish an advanced brand image as a financial institution.

Promotion Structure
To attain these goals, Mizuho established its Incubation Project Team,an independent and specialized team in July 2015 to strengthen
new business creation and initiatives across the group. In addition,
beginning in April 2017, to reinforce the creation of new businesses
and realize greater efficiency and sophistication in existing businesses,
we established the position of CDIO*, who is in charge with themission of driving digital innovation. Accompanying the appointmentof a CDIO, we also realigned our Incubation Project Team to form theDigital Innovation Department to enhance the structures for promoting
digital innovation.
* Chief Digital Innovation Officer

27

Mizuho Financial GroupOur Strategies for Creating Value Progress of the Medium-term Business Plan

Fiscal 2016 Results
In fiscal 2016 also, Mizuho continued to actively
pursue collaborative businesses with other companies
to provide new services through open innovation.

Verification of Services Utilizing Blockchain Technology
Mizuho is promoting the use of blockchain technology for financial
services by working toward the start-up of the first verification project led
by Japanese companies that will make use of this technology for global
international remittances and international securities settlement services.

New Payments Services
Big Data and AI-based Fintech Lending Services
In November 2016, Mizuho and Softbank set up a joint company, named
J.Score, to provide big data and AI-based Fintech personal lending
services, and this company has already begun
activities to build its brand image. Beginning in
September 2017, it is scheduled to provide thefirst score-based lending services via smartphones
in Japan, and it will continue to gradually raise thelevel of its services.

In October 2016, Mizuho began collaboration with Metaps and WiL, withthe aim of joint business development. The goals of this collaboration is
to utilize the customer bases and knowledge on financial services of the
MHFG and MHBK to create and offer new financial settlement services.

Digitalwallet app

Payment

Shop

Payment via QRor bar code

Bank account¥Transfers

Establishment of Fintech
Laboratory Facilities
In October 2016, the first laboratory
facilities1 were established forstructuring a Fintech Ecosystem2 andto improve customer services. With theestablishment of this facility, it will bepossible to combine the technologies and knowledge of the Fintech
companies with Mizuho’s knowledge of financial services to facilitate
open innovation and provide speedy technical verifications.
1. ‌‌Innovation lab set up within the FinTech Center of Tokyo Finolab, which is jointly
operated by Mitsubishi Estate, Dentsu, and Information Services International–Dentsu.
2. ‌An industrial ecosystem created through the multi–faceted, continuous, interrelated
connections between Fintech companies, financial institutions, businesses,
investors, regulatory authorities, and specialists such as lawyers and accountants.

Our Measures Going Forward
Since establishing its Incubation Project Team, Mizuho has
conducted surveys and research, principally in key component
technologies such as big data, AI, and blockchain fromthe medium- to long-term perspective, and accumulated
knowledge and know-how. Beginning in fiscal 2017, Mizuho
has gone beyond just accumulating this technology and knowhow and is endeavoring to provide customers with even better
services through creating new businesses as well as improving
the efficiency and sophistication of existing businesses.
Specifically, since 2016, Mizuho has been taking initiatives
to release new services, such as new lending schemes
and settlement methods as well as gone to commercialize
blockchain technology for use in the trade finance field.
Moreover, Mizuho’s activities in this field have not been
limited to finance, but also have included the establishment of
new companies with WiL and other new venture investmentcompanies based in Silicon Valley. After having establishedthese new companies, Mizuho will be also engaged in creatingnext-generation business models and actual commercializationof related businesses through the broad use of IoT.

Loading money

Transfers using
electronic money

Electronicmoney

Cash withdrawal

Bank

Cash withdrawal
using electronicmoney

Loading money from bankaccounts (conversion toelectronic money)

Offering Services Using Robotics
Mizuho has installed humanoid robots programmed with AI in its
branches to provide functions that include analyzing customers’
insurance coverage and providing support for opening customer
accounts. In addition, to provide completely new services that have notexisted before, Mizuho is giving consideration to using the knowledge
and know-how that it has accumulated from these initiatives in otherchannels other than robots, including mobile devices and ATMs.

Create Next-generation Business Model through Enhanced Business Promotion Structure
Open innovation

Pursue actual
business

Global expansion

Collaborate flexibly with

Create added value

Co-creation and information

other industries, etc.

at an early stage

gathering on a global basis

Department newly
established under
the direct controlof Group CEO

CEO

CDIO

Digital Innovation Department

New

Reorganization

Director specializing Head count:approx. 30
in Fintech

Secondment /Dual appointmentNew
platform

Investment

Third-party
shareholders

Idea

Establish an IOT
incubator company

Commercialize(MHFG non-consolidated)

Monetize2017 Integrated Report28

Our Strategies for Creating ValueFor the Sustainable Development of Society and Mizuho

Increasing Our Corporate Valueand Contributing to
the Sustainable Development of Society
In order for Mizuho to increase our corporate value and fulfill our public mission, in addition
to strengthening our financial base, it is indispensable for us to maintain and strengthen ourmanagement foundation, which includes our brand and our relationships of trust with ourown employees, our customers, and local communities.
We position corporate social responsibility (CSR) as a pillar of corporate conduct as we
manage our business in consideration of a variety of stakeholders, with whom we createshared values. In addition, we strive to ensure that each of our staff carries out his/her dayto-day work with an awareness of our social responsibilities and public mission.
In order to promote CSR initiatives as a unified group, Mizuho has defined Mediumand Long-term CSR Initiative Policy. It specifies the direction to be taken as (1) strengthen
efforts to promote businesses that contribute to the sustainable development of society, (2)reinforce the group’s foundations that underpin activities in line with society’s expectations,and (3) promote social contribution activities that take into consideration the needs of
local regions and society. We have also defined eight priority initiatives based on Mizuho’s
strategy and changes in the external environment.
With regard to environmental, social, and governance (ESG) issues, we are making
strategic efforts as part of our CSR initiatives.
For more details on the initiatives, please access MHFG’s website.
https://www.mizuho-fg.com/csr/

ESG Evaluation
Mizuho considers ESG evaluations to be part of investor expectations, and we are utilizing
the evaluations to improve our CSR activities. The ESG initiatives that have been carriedout by Mizuho thus far have received high evaluations, and Mizuho has been included in a
number of global social responsibility investment indices.

SocialResponsibility
Indices which
include Mizuho(as of June 2017)

29

Mizuho Financial GroupOur Strategies for Creating Value For the Sustainable Development of Society and Mizuho

Medium- and Long-term CSR Initiative Policy and Eight Priority Initiatives
Eight Priority Initiatives (FY2016-2018)

Strengthen efforts to‌Promote initiatives that take into

promote businesses

consideration structural changes

Core businessMedium- and Long-Term CSR Initiative Policyin the economy and societythat contribute to
the sustainable‌Promote initiatives fordevelopment ofresponsible investment andsocietyfinancing

Changing external
environment

Foundations

UN Sustainable
Development Goals(SDGs), etc.

Reinforce the‌Strengthen management foundations
on a group and global basis
Foundations for Our‌Promote diverse talent management andgroup’s foundations

Corporate Value

strategic human resource developmentthat underpin

P65-90activities in line‌Promote initiatives for management of customer

with society’s

protection and financial crime prevention

expectations‌Promote initiatives for reducing environmental‌https://www.mizuho-fg.com/csr/

burden from our own businessenvironment/

Mizuho’s

Social contributions

strategies

Promote social
contribution
activities that take‌Promote ongoing financial
education initiatives

into consideration‌Promote activities that take into

the needs of local

consideration the needs of local

regions and society

regions and society

2017 Integrated Report30

Our Strategies for Creating ValueFor the Sustainable Development of Society and Mizuho

Strengthen Efforts to Promote Businesses that Contribute to the Sustainable Development of SocietyCore business

A variety of structural changes are proceeding rapidly in the social and economic environment, including depopulation, declining
birthrates and aging populace, technology innovation, globalization, and climate change.
Mizuho is aware of the need to address them from medium- to long-term risk and opportunity perspectives. We intend to actively
contribute to the solution of social issues through our business, and carry on responsible business activities that take both humanrights and environmental issues in consideration.
Mizuho aims to become a financial services consulting group−the most trusted partner in solving problems and supporting thesustainable growth of customers and communities. We are working to contribute to the sound development of our customers as wellas the economy and society by anticipating customer needs and economic/social changes from a progressive and forward thinking
approach and by finding solutions for the problems that arise.

Main initiatives

1

2

Supporting industrial development to solve global issues
such as environment/energy, infrastructure, health, food, etc.

5

Activating financial assets in Japan

See also P54

	Fulfill fiduciary duties in development, management, sales, and	Supply risk money and provide advisory services, research,administration of financial products with the goal of achieving

consulting, and policy recommendations in collaboration withcapital flows that will enable economic growth and the steady asset

various institutions around the worldbuilding of households

Vitalizing local economies

See also P38, 42	Provide management and financial support to local companies

6

Creating and innovating businesses
using new technology

See also P28

	Support local efforts to vitalize economy and recover from disasters,	Streamline business process and improve/expand services throughin collaboration with local governments and financial institutions

leading-edge technology and open innovation

3

Business and asset succession

4

Supporting innovative companies

See also P58

	Provide solutions tailored to the issues facing each customer
See also P38, 58

	Supply risk money through financing and investment targeting
innovative companies important to Japan’s future, develop businessthrough business matching, and help solve issues confronted by

7

Initiatives for responsible investment and financing
	Manage environmental and social risk by applying the Equator
Principles to project financing
	Fulfill stewardship responsibilities for maximizing customer’s
medium- to long-term investment returns and the sustainablegrowth of investee companies

Social contributions

management of companies through seminars and mentoring

31

Promote Social Contribution Activities to Meet Needs of Local Regions and Society
Local communities are the foundation for Mizuho’s continued existence, and they have a deep connection to Mizuho through our
corporate activities and the actions of each employee. Mizuho addresses the needs of local communities and society in its activities.
In doing so, we believe we can fulfill our role as a corporate citizen and contribute to the community we are part of as we engage inour business activities. We believe that these activities also contribute to strengthening relationships of trust with customers and local
communities and to increasing the growth and social awareness of our employees.
Financial education is a good example of how we can give back to the society the knowledge and know-how that we haveaccumulated as a financial institution. In response to society’s need for career education and greater financial literacy, we havedefined targets for the provision of financial education, which we are promoting globally.

Mizuho Financial GroupOur Strategies for Creating Value For the Sustainable Development of Society and Mizuho

Close Up

1

Supporting Industrial Development to Solve Global Issues

See also P62

Promotion of Environmental Finance

Developing Alliances with African institutions

Mizuho promotes the development and providing of financial products
and services that encourage environmental awareness in order toachieve sustainable energy supplies and to respond to climate change
issues.

MHBK participated in the Sixth Tokyo International Conferenceon African Development (TICAD VI) and signed agreements
for business cooperation with African development banks andinvestment promotion agencies of Kenya and Zambia. These
agreements cover a range of sectors including agriculture,
infrastructure, and energy andare also intended to deal withpoverty. Mizuho will continue tosupport business development in
Africa and contribute to Africa’s
development.

Environment-related Funding Provided by MHBK (JPY billions)■ Environment-related project finance ■ Financing with consideration to the environment ■ Other

709.5

667.1

697.0

39.9

43.1

74.2

104.4

595.4

519.6
FY2014

35.1
57.8
604.1

FY2016FY2015

Close Up

7

Responsible Investment and Financing
Environmental and Social Risk Management with Respect to Project Financing

Strengthening Framework for Promoting Responsible Investing

MHBK recognizes that large-scale development projects may haveadverse impacts on the environment and local communities. To minimize
and/or mitigate the environmental and social risks associated with suchlarge-scale developments, MHBK, in collaboration with project proponents
who are our customers, conducts appropriate environmental and social
risks assessment/due diligence as required under the Equator Principles1.

MHTB and Asset Management One are taking initiatives aimed
at promoting ESG investment and the fulfillment of stewardship
responsibilities. Integrated in October 2016 as the group’s
investment arm, Asset Management One has established the
Responsible Investment Department and has been working
on engagement, such as purposeful dialogue with investee
companies regarding ESG, and on proxy voting. In addition,
to develop capabilities for purposeful dialogue to help improvesustainable corporate value, it has expanded ESG analysts incharge of engagement in global passive investment, and has
begun engagement with overseas companies in partnership with
Hermes EOS, one of the largest engagement service companies
with a proficient engagement process.

Closed Transactions Screened for Equator Principles Compliance 2(No. of projects)■ Europe/ Middle East/ Africa ■ Asia & Oceania■ Americas

67
9

48

47

30

8
17

28

22

FY2014FY2015729
12FY2016

1. A financial industry benchmark
for determining, assessing, andmanaging environmental andsocial risk in projects.
2. The figures have been assured
by a third party.

Number of People Receiving Financial Education
Targets

FY2016-2018:over

20,000FY2016

12,859
Accumulative total (FY2006-2016):

Approx.

62,000Student Work Experience

School Visits by Employees (India)

2017 Integrated Report32

Our Strategies for Creating Value

Mizuho in Fiscal 2016

Strategy

May 2016

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

May 2016

Established an advisory committee and the Fintech
Council made up of experts in various fields with theaim of generating new finance business based on
speedy and discontinuous ideas.

July 2016

With consideration of the Federal Reserve Board’s rule
regarding the operations of foreign banking organizations with
US operations, established a US bank holding company—
Mizuho Americas — and brought its primary US-based
entities together under the holding company.

October 2016

Integrated the group’s asset management functions into a newcompany, Asset Management One with the aim of achieving
significant development as a global asset management company.

November 2016

Set up a joint company J.Score with Softbank toprovide big data and AI-based Fintech personal lending
services.

November 2016

Facing a significant change in the external environment, hosted the Mizuho Global Council
meeting to make the best use of recommendations and proposals from various outside experts
in its business and to exchange opinions with the world’s prominent business leaders.

January 2017

For the purpose of thorough implementation of customeroriented operation of asset management-related business,
established the Fiduciary Duty Advisory Committee andFiduciary Duty Promotion Offices.

March 2017

January-April 2017

Continued to expand the office network, as follows:
January: 	Changed the trade name of Mizuho Bank Nederland to
Mizuho Bank Europe	Upgraded the Madrid Representative Office to theMadrid Branch
March: Opened Mizuho Bank Mexico
April: 	Opened the Phnom Penh Branch in Cambodia

With the goals of spurring further growth in theJapanese securities settlement market andcontributing to the enhancement of Japan’s
investment chain, signed a memorandumof understanding for the integration of trustbanks specializing in asset administration
services.

June 2017

MHBK, MHTB, and MHSC have each changed to a
Company with Audit and Supervisory Committee in order tofurther enhance their respective governance systems.

33

Mizuho Financial GroupOur Strategies for Creating Value Mizuho in Fiscal 2016

External Evaluation“Customer First” Principle
September 2016
Received a special award “Kizuna” in Service & Hospitality Award from theJapan Institute of Information Technology. We have been highly appraisedfor the endeavors of frontline offices and corporate headquarters to work inunison to become the best financial services provider.

Financial Innovation
October 2016

March 2017

Recognized for providing innovative services and creating a newcustomer experience through introduction of the humanoid robot
Pepper, received the highest award for channel innovation fromthe Bank Administration Institute (BAI), a US-based banking andfinancial industry group that promotes financial innovation.

Recognized for successful business use of the results of the analysis
of huge volumes of data, became the first financial institution toreceive the Analytics Award, one of the Data Management Awards
presented by the Japan Data Management Consortium.

April 2017
Recognized for creating a unique customer experience withthe humanoid robot Pepper and the LINE account balance
checking service, received the Celent Model Bank 2017highest award for consumer banking channel innovation.

May 2017
Recognized for its overall active efforts to strengthen competitiveness andcreate new value with technological innovation, selected as a Competitive
IT Strategy Company Stock for two consecutive years by the Ministry of
Economy, Trade and Industry and the Tokyo Stock Exchange.

Encouraging Active Participation of Our Workforce
January 2017

February 2017

Chosen for the 2017 Bloomberg Financial Services Gender–
Equality Index, which includes financial institutions from 17
countries. Members are selected for their active efforts tobuild workplace environments of gender equality, for theirinformation disclosure, and achievements/policies, etc.

Recognized as a company that approaches employee health andwellbeing from a management perspective by putting into practicestrategic workforce health management under the 2017 Certified Health& Productivity Management Organization Recognition Program (Large
Enterprise Category),
which was establishedby the Ministry of
Economy, Trade andIndustry and Nippon
Kenko Kaigi.

March 2017

Recognized as being actively engaged in promoting the participation of our female employees, and received Semi-Nadeshiko Brand
designation, conferred jointly by Japan’s Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.

Disclosures
February 2017

Mizuho’s 2016 Integrated Report received an Award
for Excellence in Nikkei Annual Report Awards 2016 forincorporating a corporate governance perspective.

2017 Integrated Report34

Our Strategies for Creating Value

Retail & Business Banking Company

Individual Customers

SMEs

Middle-market Corporations

We are committed to becoming
trust banking, and securities
relationship with our customers,
Medium- to Long-term Company Strategy
While net interest income, which used to be the main source ofrevenue, is decreasing in the context of prolonged low interest rates,
we are seeing changes in the business environment, such as a seriesof digital innovation and the entry of non-financial enterprises, such as
Fintech ventures, in the market hitherto dominated by financial
institutions. A transformation from the traditional business model isurgent.
Under such circumstances, the Retail & Business Banking
Company is aiming to establish a new retail business model bymaking the maximum use of the competitive advantage in integratedbanking, trust banking, and securities functions to serve the diverse
needs of households, SMEs, and middle-market corporations. We
are also using advanced technologies and external collaborations in
improving the user-friendliness of our services.
Specifically, we will reallocate staff in key sectors across thegroup, further ramp up our personnel training, and work to improve
the quality and productivity of our services so that we can restructure

Head of Retail & Business Banking Company

Toshitsugu Okabe

1. Current Environment

35• Increasing uncertainty in the global economy• Negative interest rate policies continue• Increasing convergence of strategies of our competitors• Entry of non-financial enterprises such as Fintech ventures

Customers• Recovery expected of the asset management business• SMEs and middle-market corporations looking forsuccessors outside the founders’ family as they reach old
age without successors

Society• Financial assets held by households exceed JPY1,800
trillion• Japan’s demographic changes

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• An established customer-focused consulting structurewith integrated banking, trust banking, and securities
functions• Reallocated human resources to key sectors (trust
banking and securities), trained people who can work
across banking, trust banking, and securities entities• Customer base and channel network
Staffed locations: 797 (as of June 30, 2017)

Challenges• Deteriorating net interest income due to the continuing
negative interest rate policies• High expense ratio

Our Strategies for Creating Value Retail & Business Banking Company

a financial services consulting company that combines banking,services by developing our consulting business with closeand by maintaining customer-focused business operations.
business around non-interest income. We will also work to expand
our customer base and maximize profits by developing convenient,
non-face-to-face services using Fintech. Furthermore, Mizuho isaiming to be a company that grows along with regional communities
and economies. We will contribute to the revitalization of regional
communities and economies through the Area One MIZUHO
Promotion Project, with our banking, trust banking, and securities
entities in each area working as a team to address local issues.
For individual customers, we will maintain customer-focusedbusiness operations, fulfilling our social responsibility byencouraging a shift from savings to investments/asset building. We
will expand our product lineup and work to improve our customers’
financial literacy. We will also move forward with initiatives to improvethe convenience of non-face-to-face services for our customers forexample by making our online and smartphone services moresophisticated.

For SMEs and middle-market corporations, we will strengthen
our initiatives for consulting-based support on such matters as growthstrategies, business succession, and IPO. By doing this, we can, as
an integrated group, provide both corporations and their owners with
optimal solutions that resolve latent issues.
In the medium-to-long term, we will fundamentally transform ourbusiness through operational excellence, for example, by optimizing
work procedures through the use of AI and robotics. We will also
rethink our branch strategy in each region, such as increasing thenumber of joint branches that can provide banking, trust banking, andsecurities services, while also utilizing digital channels. Such initiatives
will both cut costs and improve customer convenience.

2. Value Creation
Value for Customers

Value for Society• Serving a wide range of customer needs with financial
services consulting that integrates our banking, trust banking,and securities functions• Facilitate the flow of funds to enable the sustainable growth ofhousehold financial assets and the Japanese economy• High-quality customer-focused services that maintain a highlevel of expertise and professional ethics• New value in services such as remittances, payments, andasset management by utilizing Fintech• Support the growth strategies of SMEs and middle-market
corporations• Adopt an integrated approach that combines our banking,trust banking, and securities functions to address regional
challenges, and collaborate with local businesses and citizens• Sophisticated business and assets succession solutions for
SMEs and middle-market corporations confronting such issues
as aging top executives and insufficient human resources

2017 Integrated Report36Our Strategies for Creating Value

Retail & Business Banking Company

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
The effects of negative interest rate policies meant that decreases inloan deposit income and an unstable market environment continued
in fiscal 2016. Although the Retail & Business Banking Company was
unable to attain our Net Business Profits target, we did achieve somesuccesses, such as the expansion of our customer base throughintegrated banking, trust banking, and securities initiatives.
We continued our efforts to establish a face-to-face consulting
system by reallocating marketing personnel across the group, withthe aim of encouraging households to shift from savings toinvestments/asset building. Partly because of this, 2.53 million
customers used our investment products in fiscal 2016 (an increaseof 30,000 year-on-year) and our assets under management expanded
steadily to JPY37 trillion (a 5% increase year-on-year). We alsoenhanced user-friendliness, for example, by introducing advanced
technology and the services of outside companies.
As an approach to challenges such as business expansion andsuccession for SMEs and middle-market corporations, we provided
consulting-based support for growth strategies and M&A. We also
strengthened our support system for innovative companies withoutstanding technologies and ideas. Partly because of this, we had
the largest share of transactions supporting SME and middle-market
corporation M&A. Also, for IPO, we supported 16 deals as the leadmanager (a 14% increase year-on-year) and 31 deals as the transfer
agent (a 63% increase year-on-year).
In fiscal 2017, we will accelerate our integrated banking, trust
banking, and securities strategies, as well as thoroughly enforce andfurther develop our consulting style that maintains close relationships
with our customers. We will also establish key strategies based on
customer needs, and work to boost user-friendliness and increase

profits by making face-to-face services more sophisticated andfurther reinforcing digital contents in non-face-to-face channels.
For individual customers, we will enhance customer-focusedconsulting services so that we can meet their needs regarding theshift from savings to investments/asset building and asset succession.
For their long-term asset building, we will further promote iDeCo1 andNISA2 transactions by giving more focus on financial education forcustomers. We will also accelerate our digital innovation initiatives andmake our products more user-friendly as well as develop a businessmodel that will boost profitability and expand our profit base.
Specifically, we will develop business that utilizes big data, forexample, by expanding alliances with online service providers such as
the one with J.Score featuring a new type of lending services.
For our corporate customers, especially among SMEs andmiddle-market corporations, we will upgrade our solutions functions
and enhance collaboration with the Research & Consulting Unit inorder to further develop our consulting-based support for their growthstrategies to deal with management issues such as M&A, IPO, andbusiness succession.
In addition to the aforementioned initiatives, we will promote
operational excellence, revise work processes by utilizing digitaltechnology innovations, and take actions to cut costs.
1. Individual-type defined contribution pension plan
2. Small-lot, tax exempt investment accounts

3. Business Plans

37

Risk Appetite Policy

Action Plans• Promote initiatives to establish and entrench customerfocused business operations• Implement sophisticated consulting business that willcontribute to the asset building in the household sector• Proactively invest resources in key sectors aimed at
augmenting non-interest income• Provide optimal solutions that support the growth strategies
of our SME and middle-market corporation customers• Make efficient use of resources and establish a low-costbusiness model by utilizing digital innovations and externalalliances• Make our online and smartphone services more userfriendly by utilizing digital innovations

Mizuho Financial Group• Boost efficiency and productivity by transforming work
processes

Our Strategies for Creating Value Retail & Business Banking Company

2016 HIGHLIGHTSNet Business Profits Results/Plan(JPY billions)

Balance of Managed Investment Products (left axis) and Users (right axis)(Group aggregate, management account, rounded figures)(JPY trillions)
40

35

47

2.53

2.50

30

(million users)
3

37

2.5

13
0

FY2016
results*

FY2017plan

0

FY2015
results

FY2016
results* FY2016 results recalculated based on FY2017 management account rules

M&A for SMEs and Middle-market Corporations*

IPO deals in which Mizuho was the Lead Manager*

IPO deals in which Mizuho was the Transfer Agent*(League table ranking)(No. of deals)(No. of deals)

No. 1

14

16

31
19

No. 2

FY2015
results

FY2016
results

FY2015
results

FY2015
results

FY2016
results

FY2016
results* Any Japanese involvement, excluding real estate deals* Prepared based on data from CAPITAL EYE. Top Left

* Prepared based on disclosure materials of each company,

Source: Thomson Reutersbasis, excluding REIT and global offerings.

excluding REIT, ETF and PRO MARKET

Solutions that Support Sustainable Growth for Our Customers and Society
Area One MIZUHO Promotion Project
Mizuho is engaged in the Area One MIZUHO Promotion Project, which adopts an
integrated approach that combines our banking, trust banking, and securities
functions to address regional issues in collaboration with local public entities,
financial institutions, businesses, and citizens.
It aims to strengthen partnerships with local communities so that we canactively tackle such issues as regional socioeconomic problems due to depopulationand the increasing need for welfare and medical care that accompanies the aging ofsociety, and can contribute to the social and economic revitalization of regions.

Membership-based Service to Support the Growth of Innovative Companies
Mizuho established M’s Salon in November 2016. This is a membership-based
service to support the growth of companies that have the potential to bring about
innovation. It offers its members a range of service options that will help to resolve
management issues typically confronted by growing companies that use outstanding
technologies and ideas in creating innovative business, and help to accelerate their
growth.
We will contribute to the Japanese economy and social progress through our
support for the innovative companies that will play a leading role in the future.

Local
communities
Local
publicentities

Local
communities

Regional
financial
institutions
Companies
andcitizens

MHBK
MHTB

EconomyMHSC

Innovative
companies
From seeds
to themiddle stage

Local
Mizuhooffices

Supporters
Collaborating
Companies

Business
Development

Mentors
Training
mentorCapitalVenturecapitalGroup
companies

2017 Integrated Report38Our Strategies for Creating Value

Corporate & Institutional Company

Large Corporations

Financial Institutions

Public-sector Entities

We aim to be our customers’
strengths to provide solutions
Medium- to Long-term Company Strategy
The outlook of the global economy is very uncertain and factors suchas the tightening regulations regarding the balance sheets of financial
institutions make our business environment even more uncertain.
In addition, with increasing demand for improved corporate
governance, our customers’ cross-border and cross-sector needs
are becoming increasingly complicated and diverse as globalization
and business restructuring across industries pick up speed.
The Corporate & Institutional Company’s strengths are the strong
relationships we have built with our customers, the sophisticatedrisk-taking capabilities we have accumulated through developing new
financial businesses, and a well-established style of offering
comprehensive solutions based on our One MIZUHO Strategy that
integrates banking, trust banking, and securities functions.
On the other hand, although we do have strengths in the realestate sector, we are still in the process of consolidating our positionin trust banking and some areas of our securities business needfurther strengthening, such as participation in large-scale deals with afocus on cross-border M&As.

Head of Corporate & Institutional Company

Kosuke Nakamura
1. Current Environment• Increasing uncertainty in the global economy, changes inthe business environment as a result of negative interest
rate policies• Stricter regulations regarding the balance sheets offinancial institutions• Increasing convergence of strategies of our competitors

Customers• Increasing need for capital and growth strategies that pay
due attention to globalization and interests ofstakeholders• Unclear business outlooks as a result of rapid transitionsin the business environment

Society• Increasing public-private-sector collaboration in areas
such as agriculture and the revitalization of regional
economies

39

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• Ahead of our competitors in the integrated operation ofbanking, trust banking, and securities functions• Sophisticated risk-taking capabilities accumulated
through developing new financial businesses• Strong relationships with customers among large
corporations, financial institutions, and public-sector
entities• Accelerating our initial plan to reduce cross-shareholdings

Challenges• Streamlining marketing system and work processes• Further strengthening our trust banking and securities
business, such as cross-border M&A• Rebuilding our business portfolio by rebalancing
resources

Our Strategies for Creating Value Corporate & Institutional Company

most trusted and reliable partner by focusing our collective
for their diverse and increasingly sophisticated issues and needs.

Taking into account the persisting external uncertainties, it isessential that we strengthen our focus areas by rebalancing theallocation of assets and personnel, and build a robust and profitablebusiness portfolio that can withstand future downside risks.
Recognizing this, we will further develop the One MIZUHOStrategy and transform our business model into one that creates agreater value chain. Instead of simply getting deeply involved in justone of our customer’s business issues, the entire group will work
together to address customer’s various management challenges. For
example, in addition to M&A, we will work as a group to support
growth, and, at the same time, maximize our business opportunities.
Ultimately, we want to be seen as their long-term partner who canaddress subsequent issues such as currency hedging, financing, andpost-M&A integration.
In order to transform our business model, it is essential that wehave an ongoing commitment to enhancing our customer’s corporate
value. It is also essential that we have a broad perspective so that weare sensitive to changes in the social and business environments inaddition to the customer’s individual issues. We must have both amicro- and a macro-approach. At the same time, we need long-term
initiatives to develop human resources capable of creating new value
chains, as well as the mobility to flexibly allocate resources such as
assets and personnel in a timely manner so that we do not let
opportunities go to waste. This will be done by making full use of theadvantages of the in-house company system, which enables coherent
strategy planning and prompt decision making.
Through such initiatives, we will aim to be our customers’ mosttrusted and reliable global partner and to contribute to the growth ofglobal economies. We will continue to support our customers’sustainable growth with our comprehensive lineup of financial
solutions.

2. Value Creation
Value for Customers

Value for Society• Provide optimal solutions that promptly address customers’
diverse issues and needs• Provide a stable and steady flow of funds to large
corporations, financial institutions, and public-sector entities
to help boost economies• Continue support in enhancing our customers’ corporate
value through the value chain business model• Provide risk money based on sophisticated risk-taking
capabilities• Contribute to the revitalization of the Japanese economy by
fostering new industries, reorganizing existing industries, andrevitalizing regional economies• Facilitate infrastructure development through PPP/PFI (publicprivate-sector)

2017 Integrated Report40

Our Strategies for Creating Value

Corporate & Institutional Company

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
The in-house company system was launched in fiscal 2016 under
new business conditions such as negative interest rate policies. In
spite of the unfavorable business environment, we made a steadyprogress in responding to stricter regulations regarding the balance
sheets and demand for more effective corporate governance, in
addition to success in winning mandates for large-scale M&A deals.
As a result, we achieved our Net Business Profits target of JPY240
billion. We performed impressively in the league tables, holding onto
the top slot for two consecutive years for Japan straight bonds andmunicipal bonds (underwriting amount) and for M&A (with any
Japanese involvement, number of transactions), and moving into the
top slot for M&A (with any Japanese involvement, amount).
The reduction of cross-shareholding is one of our most importantmanagement issues, and we were approximately JPY25 billion aheadof schedule in our cumulative reduction targets for fiscal 2015 to2016. We also displayed appropriate risk-taking capabilities utilizing
our expertise on industries, and aggressively allocated assets tohigh-profitability sectors such as hybrid financing. In addition, we
proactively reallocated human resources from the Head Office to key
business segments that are selected based on growth potential andprofitability. We also made efforts to reinforce group-wide businesspromotion, such as collaborating with the national government or
local public entities to introduce PPP/PFI (private-public) and industryacademia collaborations in growth industries.
However, we are still in fourth place in the league table for equityrelated business, and we are faced with the challenge of improving

our presence in this segment as well as the high-profitability securities
business such as cross-border M&A.
In fiscal 2017, our company will promote cross-border M&A
business by reinforcing global sector collaborations. This will give
impetus to the business model transformation that we are aiming for.
M&A presents the opportunities for the securities business, as well as
being the all-important starting points of value chains. This strategy
will be powerfully promoted as our most important theme for fiscal
2017. Specifically, we will work with the Global Corporate Company
and enhance global collaboration of regional sector bankers. The
newly established position of executive officer in charge of specificglobal corporations in MHBK will take the lead in global marketing.
We will rebalance our resource allocation and promote businessprocess innovation through group-wide operational excellence. For
example, we aim to fundamentally change our business promotion
style by upgrading our business infrastructure, incorporating mobile
technologies and constructing a real-time data sharing platform.
By implementing these strategies, we will accelerate initiatives totransform our business model and build a robust business portfolio.

3. Business Plans
Risk Appetite Policy

Action Plans• Invest resources strategically and flexibly in key sectors• Strengthen cross-border M&A business through global
industry sector collaborations• Rebuild our business portfolio through selective risk taking• Thoroughly enforce our compliance system that underpins
our strategies and reinforce asset controls• Accelerate business model transformation by rebalancing
asset portfolio based on growth potential and profitability• Streamline work procedures and business promotion styleby putting operational excellence into practice41

Mizuho Financial GroupOur Strategies for Creating Value Corporate & Institutional Company

2016 HIGHLIGHTSNet Business Profits Results/Plan(JPY billions)(Group aggregate, management account, rounded figures)

240

218

FY2016
results*

FY2015
results

FY2016
results

FY2018plan

Japan straight bonds and municipal
bonds (underwriting amount)

1st

1st

1st

M&A (deals involving Japanesecompanies) (No. of deals)

1st

1st

1st

M&A (deals involving Japanesecompanies) (amount)

7th

1st

Top 5

Total equity underwriting
worldwide (underwriting amount)

3rd

4th

2nd

League Tables

FY2017plan* FY2016 results recalculated based on FY2017 management account rules

Progress of Cross-shareholding Reduction Plan1

Proportion of Non-interest Income*
FY2015(JPY billions)

FY2016

Corporate & Institutional Company

1,962.9
Non-interest
income51%

Interest income Non-interest
income%%49

57

6% year-on-year+

Interest income

Reduction amountas of March 2017
JPY275.3 billion

FY2018 target
Approx. 60%* Rounded figures, management account

March
2015

1,687.5

Reduction Target
by March 2019
JPY550 billion

March
20172

March
20192

1,847.1

43%
March
2016

Reduction Target
by March 2017
JPY250 billion

1. Shares listed on the Japanese stock markets, acquisition cost basis
2. The Corporate & Institutional Company’s book values after the end of March 2017 reflect thetransfer to the Retail & Business Banking Company.

Solutions that Support Sustainable Growth for Our Customers and Society
Collaboration with the National Institute ofAdvanced Industrial Science and Technology (AIST)
Based on a partnership agreement concluded in
December 2015 with AIST, MHBK implemented
initiatives intended to foster key regional companies.
These initiatives included holding open innovation
seminars and business matching events for customers.
We will continue to implement initiatives that promote
innovations aimed at boosting Japan’s growth potential
and revitalizing regional communities.

Successful Case of a Cross-border M&A Value Chain Business
Mizuho provided integrated support as a group for a customer, who
overtook an overseas competitor after years of deliberations. MHSC wasappointed FA1 and MHBK arranged the currency hedging and financing.
This case is a good
MHBK
example that shows how
Business
Mizuho earned the customstrategy
MHBK
MHSC
er’s trust through years of
discussions, and how highly
PMI2
M&A (FA)
Cross-border
the group’s integrated caM&A
pabilities are regarded. We
will continue employing our
MHBK
MHBK
comprehensive strengths in
Permanent
Currency
supporting customers enloans
hedgesMHBK
hance their corporate value.
Bridge loans

Signing of the partnershipagreement with AIST

1. Financial advisor 2. Post-merger integration2017 Integrated Report42Our Strategies for Creating Value

Global Corporate Company

Americas

EMEA

East Asia

Asia & Oceania

We aim for sustainable growthof our customers’ businesses
Medium- to Long-term Company Strategy
The US continues to show robust economic performance, however
the economies of Europe and Asia remain relatively weak. The outlook
for the world economy has become more uncertain against abackground of a new administration in the US and increasing
geopolitical risk due to Brexit and other factors. Furthermore, with thetightening of various regulations, business environment surrounding
the financial industry remains uncertain.
Regardless, our company aims to become the most trusted,sustainable partner of Japanese companies entering new markets
overseas, as well as non-Japanese companies. We provide solutions thatreflect a deep understanding of the businesses of our customers and ourcompany’s strengths in corporate finance.
For Japanese corporate customers, we support businessexpansion overseas by offering optimal financial solutions andconsulting advice. Our activities range from providing information forcustomers considering entry into overseas markets to supporting
business and financial strategies.

Head of Global Corporate Company

Akira Sugano

1. Current Environment

43• European banks exiting non-core businesses such as
through selling• Uncertainty in the global economy due to such factors as
new US administration, Brexit, etc.
• Strengthening of liquidity and capital adequacy requirements• Rising cost of USD funding accompanying Fed rate hikes

Customers• Further progress in globalization of Japanese companies• Acceleration of entry into Asia by European, US, andother multinational companies

Society• Emerging countries in process of industrial development
and capital market development• Progress in industry realignment on a global basis

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• Solutions capabilities supported by in-depth knowledgeof customers’ businesses and integrated management ofbanking, trust banking, and securities functions• Collaborative office network and abundant information on
local companies and regulations in Asia
• Blue-chip customer base and high-quality portfolio• Large footprint in Asia and North America

Challenges• Controlling expense increases due to regulatory costs,
inflation, etc.
• Establishing stable funding base, mainly through non-yen
depositsOur Strategies for Creating Value Global Corporate Company

by offering solutions that draw on our in-depth understanding
and our strengths in corporate finance.

For non-Japanese companies, we are implementing our Global
300 Strategy which involves focusing on a group of approximately
300 blue-chip companies around the world. As part of this strategy,
we use the industry sector-based approach to serving thesecustomers, focusing on sectors where we have an in-depth
understanding and a record of accomplishments to develop close
relationships with the management of companies. Through thisstrategic approach, we aim to build long-term relationships withblue-chip companies that contribute to sustainable growth on bothsides.
On the other hand, as liquidity and capital become scarce, it isessential for us to build a powerful financial base to develop long-term
partnerships with these companies. Achieving this includes
transforming our business portfolio based on profitability andreallocating assets. Specifically, we are shifting assets to Global 300
and other high-profitability segments, along with downsizing lowprofitability assets and non-yen assets with low liquidity, such as Over10-year bonds.

Additionally, to meet our customers’ broad business and financial
strategy needs, we will strengthen not only loan financing but alsotransaction banking capabilities. This involves offering M&A, bondunderwriting (DCM), and other securities-related products as well astransaction banking services such as deposit, settlement, and tradefinance that contribute to our customers’ global businessdevelopment and efficient cash management. By strengthening our
product and service offerings as a financial services consulting group,
we aim to enhance our profitability.
Moreover, in order to develop a stable business andmanagement foundation, we will continue to pursue operational
excellence and enhance non-yen currency funding capabilities. To
achieve operational excellence, we will streamline our organization
and business processes on a group basis, and facilitate swift decision
making through a decentralized scheme. To enhance our non-yen
currency funding capabilities, we will continue our efforts to attract
non-yen currency deposits and diversify our funding sources throughthe issuance of non-yen currency denominated bonds.

2. Value Creation
Value for Customers

Value for Society• Offer diverse solutions such as M&A, DCM, and transaction
banking through collaboration among banking, trust banking,and securities entities• Contribute to the development of global industries andemerging economies• Support Japanese companies entering new markets throughagreements with government agencies around the world andlocal financial institutions• Contribute to the further development of financial markets andfinancial education around the world• Provide latest information on global political and economic
trends through gathering and analysis of information oninternational strategies

2017 Integrated Report44Our Strategies for Creating Value

Global Corporate Company

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
During fiscal 2016, the Global Corporate Company continued to facechallenging economic conditions, including the slowdown of
economic growth in China and the rising regulatory expenses. Amid
this environment, the company’s Net Business Profits were slightly
below the target for the fiscal year. However, we undertook a range
of initiatives to improve our services and profitability.
In our transactions with non-Japanese companies, we steadily
expanded our business through implementation of our Global 300
strategy. We focused on taking the industry-sector specific approachand enhancing the collaboration between banking and securities
functions. As a result, in fiscal 2016, we secured the ninth position in
the DCM (bond underwriting) ranking in the Americas for the second
consecutive year, and increased our share from 3.5% to 4.8%. Theseand other indicators show our increasing market presence,
particularly in the US. In transaction banking, we reinforced ourorganizational framework, upgraded our lineup of products, andenhanced the services we offer.
In order to provide in-depth support to companies entering newmarkets and expanding their businesses abroad, we are continuing toaugment our global office network. Recently, we opened Mizuho
Bank Mexico and a branch in Phnom Penh, Cambodia. In addition,
we took active initiatives to conclude cooperative arrangements withgovernment agencies and financial and non-financial institutions
around the world in order to promote foreign direct investment by
Japanese companies.
In the further pursuit of operational excellence, the Head Officeand the Regional Headquarters are working in concert to maximize
group-wide productivity. Such efforts include eliminating overlapping
operations and introducing electronic workflows in place of paperbased operations. In the US, we integrated administrative functions
among the US group companies by establishing a bank holding

company. In addition, to secure liquidity in non-yen currencies, whichis essential for building a sustainable business foundation, we worked
to increase our non-yen currency deposits. As a result, at the end of
fiscal 2016, the balance of our non-yen currency deposits rosesignificantly to USD172.7 billion, up USD26.4 billion year-on-year.
We will continue pursuing our Global 300 strategy, while also
improving our services further as well as our profitability, in theAmericas, Europe, and the rest of Asia, through full use of ouranalysis and proposal functions for each industry sector. We will offer
a wide range of solutions to meet the diverse customer needs forsecurities products, transaction banking, and other services.
Moreover, to establish a sustainable business and managementfoundation, we are working to streamline our organizational structure
and business processes as well as increase operating efficiency
through the use of robotics and blockchain technology. These efforts
are all aimed at improving both customer service and our cost
structure. Along with these initiatives we are also continuing to takeinitiatives to establish a stable funding base, mainly for non-yen
currencies.
As we implement these strategies, we will accelerate initiatives toexpand our business, strengthen bottom-line profits, and transform
our business portfolio structure. By continuing to offer services thatare in line with customer needs, we will achieve sustainable growth
together with our customers into the years to come.

3. Business Plans
Risk Appetite Policy

Action Plans• Focus on developing relationships with blue-chip nonJapanese companies, especially the Global 300• Shift management resources from low-profitability tohigher-profitability segments• Reallocate capital and liquidity from low-profitability
segments to higher-profitability segments with prospects
for business expansion• Ensure thoroughgoing cross-selling between transaction
banking and securities/market products• Increase the volume of non-yen currency deposits andimprove deposit quality• Promote operational excellence through integrated
operation on a group-wide basis, streamlining of businessprocesses, and other measures• Secure non-yen currency deposits and diversify non-yen
currency funding sources

45

Mizuho Financial GroupOur Strategies for Creating Value Global Corporate Company

2016 HIGHLIGHTSNet Business Profits Results/Plan(JPY billions)(Group aggregate, management account, rounded figures)

Non-interest Income outside Japan(USD billions)

123

115

FY2016
results*

Up

FY2017
plan

1.4

1.4

FY2015
results

FY2016
results

30% from FY2015

FY2018plan*FY2016 results recalculated based on FY2017 management account rules

US Bond (DCM) Ranking*

Non-JPY Deposits1(USD billions)

146.3

172.7

Up

10% from FY2015(USD millions)
200
150

Ranking (Share) ■ Net Business Profits

9th (4.8%)

13th (2.9%)9th (3.5%)

(%)
6
4

100
2

50

FY2015
results

FY2016
results

0

FY2018plan2

1. MHBK and principal subsidiaries basis, including deposits of central banks, etc. Global
Corporate Company management basis
2. Change from FY2015 estimates

FY2014
results

FY2015
results

FY2016
results

0*Bonds worth USD250 million or more, excluding off-shore issuance. Source: Dealogic

Solutions that Support Sustainable Growth for Our Customers and Society
Global 300 Strategy

Upgrading our Systems for Transaction Banking

In the major deals for US company AT&T, one of our
Global 300 customers, we secured the position of
bookrunner for successive deals: USD4 billion in May
2016 and USD10 billion in January 2017. These deals
in the dynamically realigning Technology, Media, andTelecom (TMT) sector were symbolic of the high status
our Global 300 strategy involving a series of businessand financial strategy proposals can gain for us.
Looking ahead, we are aiming to substantially raise our
profile as a global player.

We are strengthening our operating structure for transaction banking as asource of stable non-interest income and non-yen funding. We established
our Global Transaction Banking Department in Singapore in April 2016
and recruited global transaction bankers for our four regional offices in the
US, Europe, East Asia, and Asia & Oceania. Through these initiatives, we
are working to strengthen our capabilities for meeting the increasingly
sophisticated fund management needs of our customers who are
expanding their businesses globally.
Global Transaction Banking Department Network
40
London Office10
China Office
110
Singapore
Head Office

50
Tokyo Office50
New York
Office20
Hong Kong
OfficeHeadcount(rounded
figures)2017 Integrated Report46

Our Strategies for Creating Value

Global Markets Company

Investors

We aim to become a leading
capabilities for offering
Medium- to Long-term Company Strategy
Although the world economy is continuing to recover at a moderatepace, concerns about rising populism and geopolitical risk and otherfactors are bringing greater uncertainty. Along with the transition to astage of normalization in financial policy, primarily in the US, signs ofchange are emerging in the interest rate environment, such as
shrinkage in the spreads between short-term and long-term rates. On
the other hand, AI and other technology innovation are expected tobring changes in market structure. As this highly uncertain economic
and market environment may continue, there are signs that customers
are shifting from savings to investments/asset building, and the needfor risk hedging, asset management, and cross-border transactions isincreasing. Amidst this environment, we have a social responsibility tomeet these needs while also responding to changes in the market
structure accompanied by technology innovation.
The Global Markets Company conducts Sales & Tradingbusiness by offering solutions to customers, and engages in ALM*/

Head of Global Markets Company

Junichi Kato

1. Current Environment

47• Increasing global political uncertainty and higher volatility• Signs of change in the interest rate environment withshrinkage in the spreads between short-term and long-term
rates• Greater need to cope with tighter financial regulations

Customers• Shift from savings to investments/asset building• Greater need for risk hedging and asset management• Increase in cross-border transactions

Society•	Changes in market structure accompanied by AI and othertechnological progress

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• Capabilities for offering sophisticated products andsolutions through collaboration among banking, trust
banking, and securities functions• Operating structure tailored to each customer segment• Efficient portfolio management structure characterized byearly warning control and appropriate allocation

Challenges• Strengthen product offering capabilities• Strengthen capabilities for meeting investor needs• Develop a global business infrastructure• Improve the sophistication of portfolio management

Our Strategies for Creating Value Global Markets Company

Asian player in the global market by strengthening our
products for each customer segment

Investment business through securities investment and liquidity
management. The strengths of our company in Sales & Tradingbusiness include, under the One MIZUHO Strategy, our deep
understanding of customers’ needs, our capabilities for analysis andforecasting financial market trends in detail and our ability forproviding products/solutions that draw on our knowledge, experience,and professional expertise. We are working to substantially strengthen
these capabilities by adopting an operating structure that satisfies theneeds of customer segments and individual companies and offering
optimal product solutions to meet increasingly diverse needs, thereby
contributing to their sustainable growth. Moreover, as global financial
professionals, we are continuing to take initiatives to promote thesound development of financial markets through providing market
liquidity and participating actively in industry associations.
The strengths of the ALM/Investment business include the early
warning control to quickly identify changes in the markets and theefficient portfolio management based on prompt decision making andappropriate allocation. By carrying out efficient portfolio management

thoroughly, we will maintain the soundness of our portfolios and work
to secure stable profits.
Meanwhile, we will respond to the increasing need of global
investors by enhancing our lineup of products and further
development of our structure. In the medium to long term, we willdevelop a global business infrastructure that adopts cutting-edge
technologies, and, by pursuing greater convenience for customers
and operational excellence to promote efficiency and improvementsof our operational processes, we will aim for further enhancement ofour competitiveness.
Through these activities, we will achieve both customer
satisfaction and high profitability, as a leading Asian player in the
global market.
*Asset Liability Management: Comprehensive management of assets and liabilities

2. Value Creation
Value for Customers

Value for Society• Offer optimal solutions that make use of market products tomeet a wide range of customers’ risk hedging and asset
management needs• Continuously provide liquidity in offering a wide range ofmarket products as global financial professionals• Offer information on market trends based on global
information gathering and analysis capabilities• Contribute to the development of sound financial markets bycomplying with various regulations and participating inindustry associations

2017 Integrated Report48

Our Strategies for Creating Value

Global Markets Company

Results in Fiscal 2016 and Plans for Fiscal 2017 and Beyond
In fiscal 2016, despite the difficult business environment affected by
the impact of negative interest rates and the sharp rise in US treasury
yield in the second half of the fiscal year, the Global Markets Company
made Net Business Profits of JPY315.0 billion (excluding income
related to ETFs1) and met its plan target for the fiscal year.
In the Sales & Trading business, as financial markets showedmajor fluctuations, we made profits well above the target by acquiringflow-type business, such as derivatives, foreign exchange, bonds,
and equities to meet risk hedging and management needs ofcustomers and by taking positions flexibly. Moreover, this development
steadily increased our presence in the market. The collaboration
between Mizuho’s banking and securities functions including
strengthening the sales approach to financial institutions started tobring some good results such as the steady rise of customers’
evaluations in the market.
In the ALM/Investment business, the investment environment
deteriorated further with the increasing global uncertainty due toBrexit and other factors, the widening of the negative margin on
long-term government bonds in the Japanese market andsubsequent reversal and rise in interest rates, and the sharp rise in
US treasury yield following the presidential election in the US.
However, the success of our appropriate position management inresponse to changes in the market environment combined with early
warning control enabled us to maintain the soundness of our portfolio
and achieve profits generally on target.
In fiscal 2017, a highly uncertain environment is likely to continue
due to political developments in Europe and the US. In addition, as
various financial regulations, including IRRBB2, are scheduled to be

implemented, we are entering a stage where the ability to respond tothese regulations will make competitive advantage.
Under these conditions, the Global Markets Company will
allocate resources on a priority basis to its Sales & Trading business.
We will take a flexible approach to risk taking and strengthen our
product offering capabilities. Specifically, while we cope with thevarious regulations, we will reorganize our operating structure ofderivatives business in the US, Europe, and Asia to allow integrated
operation and strengthen our appeal to global customers, which will
also lead to enhanced profitability. In addition, we will accelerate ourefforts to improve CVA3 management under future Basel regulations.
In fact, we became the first Japanese megabank to establish a CVA
Office in April 2017.
In the ALM/Investment business, we will work to enhance
non-yen currency funding capabilities through sophisticating themanagement of balance sheet. We will enhance the efficiency of ourportfolio management through early warning control, diversification,and prompt decision making. We will make appropriate judgments on
restructuring our bond portfolios. We will also accelerate initiatives toutilize cutting-edge technologies for efficient and sophisticatedoperations.
Going forward, through these efforts, we will endeavor tocontribute to the sustainable growth of our customers and sounddevelopment of financial markets.
1. Exchange-traded Funds
2.	Interest Rate Risk on Banking Book: With the Basel capital adequacy requirements,
stricter rules were applied for disclosure of interest rate risk in the banking account3.	Credit Valuation Adjustment: Method to reflect counterparty’s credit risk in thevaluation of derivatives transactions

3. Business Plans
Risk Appetite Policy

Action Plans• Strengthen capabilities for flexible risk taking and productoffering by focusing resource to Sales & Trading business• Further enhance product offering capabilities• In addition to improving sophistication of balance sheet
management, ensure accuracy in allocations and efficiency• Make appropriate judgments on restructuring bondportfolios• Achieve further integration by reorganizing derivatives
business operations in the US, Europe, and Asia
• Sophisticate balance sheet management• Maximize efficiency in portfolio management through early
warning control and investment diversification andappropriate decision making• Use cutting-edge technology to enhance operating
efficiency and sophistication

49

Mizuho Financial GroupOur Strategies for Creating Value Global Markets Company

2016 HIGHLIGHTSNet Business Profits Results/Plan(JPY billions)

315(Group aggregate, management account, rounded figures)

Sales & Trading Revenue(JPY billions)

219

FY2016
results*

FY2017plan*FY2016 results recalculated based on FY2017 management account rules

375

345

300

FY2015
results

FY2016
results

FY2018plan*Global Markets Company management basis

Excluding ETFs (including ETFs: JPY345 billion)

Japanese Equity (Ranking & Share)

Trading share

FX (Ranking & Score)

Customer satisfaction among corporate customers(Asia, excluding Japan)
7.8%
4th*

8.4%

502

2nd*

529
7th*

19th*
2015
results

2015
results

2016
results*Among 20 companies*Among 35 companies

Source: Greenwich Global Japanese Cash Equities Commission-weighted Trading Share

Source: Greenwich Quality Index Asia excluding Japan FX

2016
results

Solutions that Support Sustainable Growth for Our Customers and Society
Offering Clearing Services and Active Participation in Industry Associations
Mizuho offers the clearing services of Japan Securities Clearing Corporation (JSCC). MHBK
won the leading market share of customers using clearing services for JPY interest rate
derivatives, for two years in a row since 2015. In addition, Mizuho is an active participant in theInternational Swap Dealers Association (ISDA) and other industry associations. By doing so weare supporting customers to meet various regulations and are contributing to the sounddevelopment of financial markets.

Established the CVA Office ahead of Other Japanese Banks
Since the collapse of Lehman Brothers, the importance of managing counterparty risk has
become more important than ever in the derivatives market.
Credit Valuation Adjustment (CVA) is the method to reflect the counterparty’s credit risk inthe valuation of derivatives transactions. The Basel Committee on Banking Supervision
requires banks to improve the framework for CVA.
MHBK established a CVA Office ahead of other Japanese banks in April 2017. Throughthe appropriate control of CVA risk, we will continue to contribute to sound development ofderivatives markets and fulfill customers’ needs.

Dealing room in the MHBK Head Office2017 Integrated Report50

Our Strategies for Creating Value

Asset Management Company

Investors

We will contribute to activating
to long-term asset building by
Medium- to Long-term Company Strategy
Taking into consideration ongoing negative interest rates andpopulation decline marked by falling birthrates and an aging
population, the importance of asset building via asset management
can only increase in the future.
In this kind of environment, a major issue facing Japan is for
public and corporate pensions to achieve stable investment
performance and thereby sustain the pension system. Likewise, forindividual households it will become even more important to prepare
for retirement by engaging in asset building with self-help efforts.
The Asset Management Company works together with Mizuho’sbanking, trust banking, and securities entities and Asset Management
One and cooperates with other in-house companies to serve theneeds of a wide range of customers, from individuals to institutional
investors (pension funds, financial institutions, corporations, etc.) byproviding products and solutions backed by sophisticated investment

Head of Asset Management Company

Katsunobu Motohashi

1. Current Environment• Demand for a higher level of fiduciary duties• Deteriorating investment market environment andintensifying global competition

Customers• Increased convenience and greater need for asset
management as a result of NISA1 and iDeCo2 regulatory
reform• Greater need for investment sophistication and diversification
as a result of the negative interest rate environment• Downward pressure on trust fees due to the popularity ofpassive investments and ETFs

Society• Progress in technology innovation (AI, Robo-advisor, etc.)
1. Nippon Individual Savings Account: Small-lot, tax-exempt investment accounts
2. Individual-type defined contribution pension plan

51

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• One of the largest outstanding assets under managementin Japan and Asia
• Investment expertise cultivated in pension business andproduct-development expertise honed in investment trust
business• One of the largest investment trust marketing systems inJapan• Ability to provide comprehensive pension consulting andsolutions

Challenges• Further strengthening of integrated management in AssetManagement One• Further building up of balance of investment trusts toaccommodate increased customer needs• Development of flagship funds conducive to medium- tolong-term asset buildingOur Strategies for Creating Value Asset Management Company

Japan’s financial assets by supporting customers’ mediumfulfilling the highest level of fiduciary duties.

capabilities. This, in turn, contributes to activating Japan’s financial
assets.
For our individual customers, we make use of advanced
investment know-how cultivated in our pension business to provide
investment trust and other products useful for medium- to long-term
asset building. In addition, with respect to investment trust sales
companies (banks, securities companies, etc.) in direct contact withcustomers, we make full use of Asset Management One’s marketingsystem, one of Japan’s largest, to provide Seminar One and otherunique training programs covering not only investment education but
also support for human resource development. Through this support
for enhancing sales skills at sales companies, we are working to raise
understanding of asset-building needs and methods among theindividual customers. Through these efforts, we will increase thebalance and ratio of investment trusts among asset undermanagement by building up investment trust balances of products
and developing flagship funds conducive to medium- to long-term
asset building.
For institutional investors, who manage pension funds, inaddition to improving the sophistication of their investments, we areaccelerating our efforts to provide comprehensive consulting andsolutions covering customer needs such as building pension
portfolios, ALM analysis, and pension governance support. As aleader in fulfilling fiduciary duties, we are endeavoring to obtain higher
evaluations from our customers.
Furthermore, we are continuing with initiatives aimed at
integrated management in order to reap greater benefits from theintegration of asset management companies into Asset Management
One. We will be further developing investment capabilities that serveas an engine of asset management business. Regarding theenhancement of our investment capabilities, we are taking a mediumto long-term perspective as we work to make active use of leadingedge technologies such as AI and big data.
Through the initiatives mentioned above, we will drive the shift
from savings to investments/asset building and establish asset
management business as the fourth pillar of Mizuho.
* In October 2016, the new company Asset Management One was established throughthe integration of DIAM, the asset management function of MHTB, Mizuho AssetManagement, and Shinko Asset Management.

2. Value Creation
Value for Customers

Value for Society• Individuals: Respond to the ever growing need for steadyasset building from medium- to long-term perspectives as
more people prepare for retirement• Support self-help efforts of individual customers’ asset
building in the medium to long term thereby contributing toactivation of Japan’s financial assets• Institutional investors: Respond to the need for comprehensive
pension consulting, portfolio diversification and steady
performance, and investment alternatives to Japanese
government bonds in the negative interest rate environment• Increase future national wealth and provide companies withgrowth money, thereby contributing to a virtuous circle for theJapanese economy

2017 Integrated Report52

Our Strategies for Creating Value

Asset Management Company

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
Fiscal 2016 was a challenging year for asset management business,with difficult investment conditions continuing due to low interest rates
worldwide. The inflow of funds into public investment trusts reachedits lowest level since the global financial crisis of 2008. Nevertheless,
we made efforts to offer investment trust products that contribute to
the shift from savings to investments/asset building and as a result
we were able to achieve our company’s Net Business Profit plan. In
addition, assets under management increased by JPY1 trillion to
JPY53 trillion, compared to the previous fiscal year.
With the launch of Asset Management One in October 2016, we
achieved one of our key management goals: integration of our groupasset management functions. The size of its assets under management
is among the largest in Asia. Our investment capabilities are highly
evaluated by customers, and we have the largest balance of assets
under management from the world’s largest public pension fund
(GPIF*).
Since its start, Asset Management One has provided investment
trusts that curb downswings exceeding a specified level and thatutilize pension fund know-how also employed by the GPIF. It has also
held 2,800 seminars and study meetings in total for investment trust
sales companies.
Looking ahead, through integrated management, we will bring
together asset management expertise developed over many years by
the four integrated companies, and provide the best solutions tocustomers as asset management professionals. We will thereby strive
to achieve still greater success as a global asset managementcompany.

We are also making even greater efforts with regard to thedefined-benefit (DB) pensions and defined-contribution (DC) pensions
that serve as a stable business foundation. For DB pensions, taking
advantage as the only trust bank that has outsourced investment
operations, MHTB is accelerating the development of acomprehensive pension consulting service which has at its corefiduciary management service that exercises asset management
authority and responsibility on behalf of pension funds.
In addition, Mizuho has one of the largest shares of pension
subscribers (over 1.1 million) for DC pensions in Japan, a system thathas been further developed in recent years and that supports the selfhelp efforts of individuals as they build assets for their retirement. In
conjunction with the recent deregulations for iDeCo, which greatly
expanded the pool of eligible people, in November 2016 we releaseda pension version of the SMART FOLIO automated investment
advisory service to help new subscribers with the selection of
investment products. We will continue to work to improve
convenience for our customers.
By further enhancing the integrated management of AssetManagement One and differentiating our pension services, we willcontinue to focus on operational excellence, thereby contributing toactivating Japan’s financial assets.
* Government Pension Investment Fund

3. Business Plans
Risk Appetite Policy

Action Plans• Allocate resources to investment capabilities, investment
trust and pension businesses, viewing asset managementbusiness as a growth area contributing to the expansion ofMizuho’s non-interest income as well as improved balance
sheet control• Strengthen capabilities to cope with needs for sophisticatedinvestment and medium- to long-term asset building• Introduce sophisticated investment methods, including useof digital innovations• Focus efforts on expanding investment trust business andimproving pension services• Taking into account the shift from savings to investments/
asset building, allocate more resources to investment trusts• Accelerate offering of comprehensive pension consulting/solutions

53

Mizuho Financial GroupOur Strategies for Creating Value Asset Management Company

2016 HIGHLIGHTSNet Business Profits Results/Plan

Assets under Management as of March 2017

(JPY billions) (Group aggregate, management account, rounded figures)

20

Corporate / Individual DC Subscribers(thousands)

Investment Trusts

24

14 trillion

JPY

995

(26%)

Total

1,122
1,064

53 trillion

JPY
Pension, etc.
FY2016
results*

FY2017plan

39 trillion

JPY

May 2014(74%)

May 2015

May 2016* FY2016 results recalculated based on FY2017 management account rules

Solutions that Support Sustainable Growth for Our Customers and Society
Fiduciary Management Initiatives
In order to fulfill mandatary and fiduciary duties in pension funds,
there is growing needs to entrust investment and other operations toexternal institutions.
MHTB outsources investment operations to Asset Management
One, etc. We thereby maintain a unique advantage in engaging in
fiduciary management service.
We analyze and examine our customers’ pension portfolio, andgive advice on formulating and revising asset allocation plans on a
medium- to long-term basis, making good use of MHTB’s experienceand knowledge as professionals. We also provide support withrespect to pension governance and overall pension operations.
As a leader in fulfilling fiduciary duties, we are enhancing ourconsulting capabilities in order to obtain higher evaluations from ourcustomers.

Fiduciary Management

Customers
Outsourcing Overall operation support

Policy and asset
mix formulation/
revision

Portfolio analysis/
examination

Asset manager

Monitoring/
Reporting

MHTB
Specialized
institution (fiduciary
manager)

Asset manager

Construction of
governance inpensions

Asset manager

Asset manager

Asset management

Expanding Our Service Lineup to Meet Customers’ Medium- to Long-term Asset Building Needs
At Asset Management One, we make good use of investment know-how cultivated inpension business, and provide investment trusts that meet the medium- to long-term asset
building needs of our customers.
For example, in a balanced fund with exposure to five overseas assets and full foreignexchange hedging, we provide options for curbing downswings exceeding a specified level inorder to meet the needs of customers looking for stable investment.
In addition, in a small- and medium-cap stock fund focused on global growth, we
provide our individual customers with access to pension investment strategies also employedby the GPIF.
We will continue to contribute to activating Japan’s financial assets by providing
investment trusts that drive the shift from savings to investments/asset building.

2017 Integrated Report54

Our Strategies for Creating Value

Global Products Unit

Transaction Banking

Investment Banking

We aim to improve our ability
consulting unit” that displays
Medium- to Long-term Unit Strategy
The Global Products Unit consists of an investment banking businessand a transaction banking business. It acts as the product function
platform for the entire group.
As the global economy becomes increasingly uncertain, the riskof price fluctuations in stocks, bonds, real estates and commodities
is becoming greater. Our customers’ needs are becoming moresophisticated and diverse as companies become more globalized.
Furthermore, transformations in the business environment aregathering speed with technological innovations such as Fintech.
The unit’s strengths are our close collaboration with groupcompanies such as banking, trust banking, and securities, and ourexpertise and know-how on products. At the same time, expansion
into new business sectors is a challenge that we must tackle in orderto respond to changes in economic and social environments.
Given the current circumstances, we will aim to become a“products consulting unit” that displays advanced expertise anddelivers optimal solutions to meet our customers’ needs. We will do

Head of Global Products Unit

Shinji Taniguchi

1. Current Environment• Increasing risk of price fluctuations in stocks, bonds, realestate, and commodities• Commoditization of a wide variety of products

Customers• Increasing need for asset management in a low interest
rate environment• Increased M&A activities for business transformation suchas succession and expansion beyond the borders

Society• Introduction of new settlement businesses by Fintech
ventures, etc.
• Expansion of high quality infrastructure investments andconcession business*• Entry of non-financial institutions

Strengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• Enhanced collaboration among group companies• Expertise and know-how to achieve a high level of
performance in a wide range of areas in the investmentbanking and transaction banking businesses• Operational framework and platform that cut acrosscustomer segments on a global basis for each product

Challenges• Create a room for new risk asset investment and boost
ROE• Accelerate development of new products that respond totechnology innovations and changes in the businessenvironment• Manage human resources more efficiently* Arrangements under which the operation of public facilities, etc., is assigned to a private-sector business, while the ownership of the facilities remains with the public sector.

55

Mizuho Financial GroupOur Strategies for Creating Value Global Products Unit

to respond to customer needs and to become a “products
a high level of expertise on a global basis.

this by further refining our operational framework and platform on a
global basis, as well as by expanding new business domains.
In the global transactions sector, we will boost our ability toprovide our customers with services by realigning our organization,for example by creating a one-stop system capable of handling tradefinance and cash management, and by establishing a global
collaboration structure between our offices.
We will also respond seamlessly to our customers’ needs andsupport their corporate growth by offering a wide range of products
and solutions that are appropriate for their development stage. We
will leverage our banking, trust banking, and securities functions not
only in our M&A advisory and financing business and when serving as
an intermediary in the real estate sector, but also in currencytransactions and when we serve as the IPO bookrunner or transfer
agent when a company becomes listed on the stock exchange.
In addition, we will contribute to the growth of industries andmeet social needs by supporting companies’ globalization, in eachsector and through initiatives to expand the use of renewable energy
by funding the solar power and wind power industries.
We will also boost user-friendliness for our customers by
expanding new business domains using technology, as in theconstruction of the API* for the secure connection of Fintech services
in the online banking sector, and initiatives utilizing blockchains in the
trade finance business.
Through such initiatives, we will aim to become a “products
consulting unit” and to contribute to greater convenience for ourcustomers and to social progress.
* Application Programming Interface: Programs and interfaces used to connect systems
to external services, etc.

2. Value Creation
Value for Customers

Value for Society• Value chains that combine multiple solutions throughcollaboration among group companies• Contribute to companies’ globalization through support insuch areas as M&A and transaction banking• Optimal solutions for customer’s business strategies, such as
M&A and IPOs

• Contribute to the growth of various industries by providing
solutions in the light of policy backing for infrastructure export
and concession business• Support for customers expanding globally through our office
network that connects the world in a wide range of productareas• Provide solutions that respond to social changes bydeveloping new products that incorporate advanced
technology• Facilitate the greater use of renewable energy through means
such as supporting the solar power and wind power industries

2017 Integrated Report56

Our Strategies for Creating Value

Global Products Unit

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
Our investment banking business and transaction banking businessboth achieved good results overall in fiscal 2016.
In the M&A sector, we worked on large-scale transactions aswell as meeting business succession needs of middle-market
corporations. We engaged in a total of 182 transactions during the
fiscal year, involving a total amount of JPY6.9 trillion, winning us the
top slot in the league table for both the number of deals and theamounts.
Similarly, in the syndicated loans sector, we placed top for theeighth year running as the market leader for syndicated loans inJapan.
We also performed well overall in the league tables for domestic
project finance and other sectors, as well as in external evaluations in
the transaction banking sector.
In addition to these achievements, we launched various new
initiatives in our business sectors, leveraging the unit’s strength inintegrating banking, trust banking, and securities entities. In the realestate sector, we created new business opportunities throughalliances with our subsidiary Simplex, such as establishing a private
placement REIT. In the project finance sector, we provided investment
opportunities in global project finance receivables for investors in andoutside Japan through the securitization of loan receivables.

We also reorganized our middle-market M&A advisory businessand global transactions business as a way to improve customer
convenience. In addition to endeavouring to provide meticulous
services, we started accepting corporate account applications online
as a way to save customers’ time.
In order to sophisticate group-wide value chains that organicallycombine multiple solutions, in fiscal 2017 we will further strengthen
the unit’s internal and external collaboration, and move forward withexpanding and optimizing the breadth of the solutions we provide bygiving greater emphasis to fostering human resources and reinforcing
their expertise. The expansion of new business domains toaccommodate the needs of our customers and of society at large isan ongoing task from fiscal 2016. We will work to achieve that aim bydrawing upon the diverse expertise of the group and collaboratingwith other in-house companies and units.
Facing major changes in the external environment, we will
provide product support for the group, and contribute to resolving thevarious issues of our customers and of society.

3. Business Plans
Risk Appetite Policy

Action Plans• Offer product functions cross-sectionally to in-housecompanies and entities with the aim of expanding thegroup’s non-interest income business• Respond to a wide range of customer needs by seamlessly
offering diverse products that integrate our groupcompanies’ banking, trust banking, and securities functions• Maintain asset liquidity for ultra-long-term assets andnon-yen currency assets in the light of regulations andmarket trends• Strategically reduce risk assets to generate new asset
investment reserves and achieve a high ROE• Explore new business domains by developing productsthat use latest technologies, including non-conventional
products

57

Mizuho Financial Group• Leverage our product expertise and market sensitivity toopen up new business domains• Further boost productivity through the use of advanced
technology and streamlining the organization

Our Strategies for Creating Value Global Products Unit2016 HIGHLIGHTS
Accomplishments in Investment Banking

Accomplishments in Transaction Banking
FY2016 Results

M&A Advisory for Announced Deals (Japan
corporations)1

No. 1

Project Finance (Japan)2

No. 1

Syndicated Loans (Japan)3

No. 1

ABS Lead Manager4

No. 1

Japan Publicly Offered Bonds (Industrial
bonds & electric power bonds)5

No. 1

1. Number of deals basis, excluding realestate deals
2. Amount basis, bookrunner basis

FY2016 Results
1

CMS

No. 1
2

No. 1

Custody (Sub-custodian)

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

3. Amount basis, bookrunner basis
4. Amount basis, asset-backed securities
5. Underwriting amount basis, excluding own
bonds

Solutions that Support Sustainable Growth for Our Customers and Society
Maintaining Close Relationships with Customers Listing- IPO bookrunner and stock transfer agent -IPO-related Business

The Global Products Unit provides services for customers considering
an IPO, with MHSC serving as the bookrunner and MHTB as thestock transfer agent. Collaborations among group companies allow
us to efficiently provide our customers with multiple services.
In fiscal 2016, MHSC served as the bookrunner in 16 deals, and
MHTB provided stock transfer agent services for roughly 60% of
those customers. We will continue to promote collaboration amonggroup companies to provide solutions that meet the comprehensive
needs of our customers.

■ No. of deals where MHTB became
the stock transfer agent2■ No. of deals where MHSC
was the bookrunner1

19
15
5 6
FY2013
results

Collaborations with Regional Financial Institutions- Regional banks have started to handle MHTB’s living trusts-

14

No.1

MHSC-arranged
IPOs in which
MHTB Acted as
Stock Transfer Agent

31

Retail & Business Banking
Company management basis

63%

No.2

16
29%

9

FY2014
results

FY2015
results

FY2016
results

FY2015
results

FY2016
results

1. Prepared using CAPITAL EYE based on large financial institutions. Excludes REITs
and global offerings
2. Prepared using disclosed materials from each company. Excludes REITs, ETF, andprofessional market.

1 ‌
Solicitation/
sales

Trust
agent
contract

4 ‌Trust dividends
added to trust fundPay to beneficiaries,
such as family, as aninheritancePrincipal
andinterest

Regional financial
institutions

Regional financial
institutions

5 ‌
Monetary
asset

3 ‌
Investment(deposit)(vendor)Beneficiaries
such as family(secondary beneficiary(ies))

2 ‌
Trust
settings(monetary
asset)(depositee)

Trust
contract

MHTB(trustee)

Customer(entrustor and primary
beneficiary)

Living trusts are products where, as the trustee, MHTB takes custodyof monetary asset as trust property. It is transferred to thebeneficiary(ies) based on the conditions laid out beforehand incontract when the need of property inheritance arises.
Hokkaido Bank and North Pacific Bank began handling MHTB’s
living trusts on October 3, 2016 and February 1, 2017 respectively.
With the aging of the population, there is growing interest in asset
succession and inheritance. We will continue to work in alliance with
regional financial institutions to meet the diverse needs of ourcustomers, providing more accessible specialized trust fund products.

Main investment:
fixed-term
deposit accountSurplus funds:savings account2017 Integrated Report58Our Strategies for Creating Value

Research & Consulting Unit

We aim to be the No. 1 Think
our evolving research andissues they confront.
Medium- to Long-term Unit Strategy
Mizuho’s Research & Consulting Unit was newly established in April
2016 as One Think Tank to bring together Mizuho’s research andconsulting functions. It aims to become the fifth pillar supporting
Mizuho’s objective of being a financial services consulting group asenvisioned in its medium-term business plan.
As One Think Tank, this unit integrates Mizuho’s banking, trust
banking, and securities entities together with its research andconsulting entities (MHRI, MHIR, and Mizuho-DL Financial
Technology) and, thereby, enables Mizuho to offer its capabilities
seamlessly to its customers. The unit is, therefore, positioned to help
resolve such corporate issues as management/financial strategy,
passing on businesses and assets to the next generation, and IT
systems as well as take initiatives to solve such broader issues ofsociety and the public sector as environment/energy, infrastructure,and health care.
In today’s changing environment, it is becoming increasingly
difficult to predict the future course of developments in the economy,

Head of Research & Consulting Unit

Keiichiro Ogushi

1. Current Environment

59• Increasingly unpredictable economic, financial, and social
environment, which is undergoing rapid changes• Increasing convergence of strategies of our competitors

Customers• Increasing needs to pass on businesses/assets to thenext generation with aging of proprietors

Society• Emergence of new business fields along with rapid digital
innovation• Expanding opportunities in public-private partnerships,with the trend of increased private-sector participation ingovernment projects

Mizuho Financial GroupStrengths

Internal Conditions

External Environment

Economy, Regulations, and Competition• Research function with broad coverage ranging frommacroeconomy to industry trends• Consulting functions with broad coverage ranging frommanagement/financial strategy to environment, social
security, IT, and healthcare• Expertise in technology fields, including IT systems anddata analysis• Broad customer relationship through the largest corporate
membership organization among Japanese banks

Challenges• Shortage of resources to cope with broadening researchand consulting needs• Fusion of innovative technology with consulting business• Research and consulting network to cope with globalization

Our Strategies for Creating Value Research & Consulting Unit

Tank, supporting the growth of our customers by using
consulting capabilities to the fullest extent to address thefinance, and society. We have identified four key points for our
initiatives in the current medium-term business plan and we aim to be
the No. 1 Think Tank as the best team of experts capable of providing
optimal solutions for our customers.
Major Initiatives(1) “Advance utility functions” though collaboration among our
in-house companies to address increasingly complicated businessissues of our customers(2) “Enhance One Think Tank brand value” through proactively
promoting our advanced knowledge/know-how(3) “Advance global solutions to our customers” in the midst of rising
uncertainty in the global business environment(4) “Promote a market-driven approach” from the viewpoint of“Customer First”
The true value of our unit will be evaluated by how we canrespond to the changes in business environment surrounding Mizuho
and our customers, especially to rapid digital innovation.

As One Think Tank, we will further enhance our strengths indigital technology fields such as IT and data analysis, in order tosupport both Mizuho’s own innovation and the growth of ourcustomers.
We will help our customers expand their business and increase
efficiency by applying digital technology, for example, sophisticatedbig data analysis for marketing support and AI-based or Fintech
solutions.
Other initiatives will include using ICT to develop online channels
that are highly accessible and offer a larger number of customers theinformation and solutions we have developed as One Think Tank.
Also, we will aim to improve the contents and convenience of Mizuho’s
corporate membership service which is one of the largest in scale
among Japanese banks.
We will continue to evolve as One Think Tank and, in addition to
the knowledge we have garnered from our research and consulting
activities, adopt new digital technologies to be developed which will
be a key factor in this further evolution.

2. Value Creation
Value for Customers

Value for Society• Contribute to customers’ growth strategies by offering
comprehensive solutions encompassing digital technology• Contribute to the revitalization of regions and the fostering of
next-generation growth industries by making use of respective
expertise of MHBK’s Industry Research Department, MHIR,
and MHRI• Help customers formulate growth strategies, withcomprehensive measures ranging from high-level debate
based on in-house industry research to advice on
reorganization and its financial implications• Provide comprehensive know-how to wide-ranging customers
covering SMEs, middle-market corporations, and businessowners through our corporate membership service• Provide institutional investors with decision-making support
through industry-leading analyst research• Contribute to addressing social, infrastructure, andenvironmental issues globally through provision of PPP/PFI
advisory services based on knowledge of public policy• Help to navigate through increasingly uncertain social andeconomic conditions through reports and forums that transmit
high-level expertise and know-how in a range of areas, from
economic/social trends to structural changes in industries andin individual fields such as the environment, social security,and IT2017 Integrated Report60

Our Strategies for Creating Value

Research & Consulting Unit
Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond
We positioned fiscal 2016, the first year of One Think Tank, as theyear to establish a foundation for our utility function by concentrating
the group’s research and consulting functions and establishing a
structure for in-house companies to work in collaboration. Over thisone-year period, the Research & Consulting Unit has put highest
priority on having customers and in-house companies make use of
the unit’s utility functions.
The unit has increased the use of its research capabilities in andoutside Japan. This was accomplished through the release of One
Think Tank reports, including reports on Brexit and the US presidential
election which were highly evaluated for their timeliness and quality,
and the holding of the One Think Tank Forum, which provided avenue for presenting ideas regarding the Japanese economy andsociety in the year 2020. To respond to the issues of individual
customers and provide optimal solutions on a fee and non-fee basis,the unit also collaborated with the in-house companies to provide
consulting. As such, we have managed to gain a firm foothold in our
activities as One Think Tank.
On the other hand, as uncertainty over the economy, finance,and society continues to grow, customers’ expectations regarding
research and consulting functions are increasing. To meet these
expectations, we believe that it will be important for the unit to create
an even more solid foundation for its activities.
In its research functions, the unit provides top quality informationin Japan related to politics, economy and industry. Also, in global
research, the unit is working to achieve greater differentiation bystrengthening its ties with related parties in and outside of the unit.
In its consulting functions, the current and latent needs ofcustomers are increasing in a broad range of fields. The unit is giving
close attention to such issues as business succession, which is
become increasingly important along with the aging of businessowners, and transformation of organizational and HR systems thatare needed for flexible work arrangements. Looking ahead, the unit
will expand its capabilities for responding to these consulting needs.
Building on the foundations laid in fiscal 2016, the unit will work toachieve greater collaboration and fusion among its internal resources
and pursue greater depth and breadth in its One Think Tank initiatives
in fiscal 2017.
As we pursue our market-driven approach, aimed at closely
allying with customer needs, we will also take initiatives in digital
innovation with a view to our long-term growth strategy. At the sametime, we will give priority to strengthening our capabilities for meeting
expanding research and consulting needs and working to achieve
greater expertise in our global research.
To strengthen our capabilities for meeting expanding researchand consulting needs, we will reinforce our consulting team and work
to optimize the allocation of resources within our unit, with the goalsof enabling the unit as a whole to respond to increasing needs. In
addition, we will enhance the consulting capabilities at frontline officesof each in-house company.
To achieve greater expertise in our global research, we will focus
our efforts especially on Asia. In fiscal 2017, we will focus on providing
support to Japanese companies expanding outside Japan and
non-Japanese companies entering Japanese and other Asianmarkets. To this end, we will strengthen our knowledge of Asia
outside Japan, and collaborate with our group’s in-house companies.
We will continue to address various issues facing our customers
which are becoming more diverse, complex, and global in scope by
consolidating capabilities within the unit and enhancing collaboration
with in-house companies, thereby strengthen our presence as One
Think Tank.

3. Business Plans
Risk Appetite Policy

Action Plans• Provide optimal solutions based on the risk appetite
policies of the individual in-house companies and address
customer issues linked to increasing uncertainty• Move One Think Tank solutions and technologies forward
through accelerating collaboration/fusion within our unit
• To support the growth of our customers, establish a newmembership organization named “MIZUHO MembershipOne” that incorporates Mizuho’s present corporate
membership system• Strengthen the unit’s overall capabilities through optimal
allocation of management resources inside and outside theunit and, thereby, meet increasing needs for research andconsulting

61

Mizuho Financial GroupOur Strategies for Creating Value Research & Consulting Unit2016 HIGHLIGHTS
Equity Research

Bond and FX Research

Captured top position in Nikkei Veritas Analysts Rankings for 2017*
for the fourth consecutive year

Regained top position in Nikkei Veritas Bond and FX Analyst/Economist
Ranking in 20171 for the first time in seven years

2013

2014

2015

2016

2013

2017

2014

2015

2016

2017

st

1

MHSC

1

2nd

Nomura2nd

3

SMBC Nikko

3

4th

MUFG
Morgan Stanley
Daiwa
Securities Group

4th

SMFG/
Nikko Group

5th

Daiwa

rd

5th
*Nikkei Veritas Analyst Popularity Ranking (Issued March 19, 2017)

strd

MizuhoMUFG Group
Nomura2

1. Nikkei Veritas Bond and FX Analyst/Economist Popularity Poll (Issued March 26, 2017)
2. The No. 3 ranking from 2013 to 2015 held by BNP Paribas Securities

Solutions that Support Sustainable Growth for Our Customers and Society
Support for Developing Countries through Commercializationof Agricultural Business in Rwanda, Africa

Presentation of a One Think Tank Forum as a Tokyo 2020
Nationwide Participation Program

MHIR launched MIZUHO Global Agri–Innovation program tosupport Japanese agribusiness overseas. As its symbolic
project, MHIR is undertaking the commercialization of gentianand sunflowers in Rwanda jointly with Toyota Motor and otherlisted Japanese companies, universities, and government
ministries. This project has greatly contributed to creating asustainable growth model for developing countries using
Japanese agricultural technology.

Mizuho is a Tokyo 2020 Gold Banking Partner and together with
Nihon Keizai Shimbun, which is a Tokyo 2020 Official Partner in
the newspapers category, held the “Mizuho One Think Tank &Nikkei 2020 Forum.” This forum was the first Tokyo 2020
Nationwide Participation Program held by sponsoring companies
from the fields of economy and technology. Mizuho, together
with members of the Tokyo Organising Committee of the
Olympic and Paralympic Games,
made keynote addresses, presenting
the unique perspective of One Think
Tank on the theme of how Japan
should be moving forward in the
coming years.

Contributing to Increasing Service Value Added by Applying
Knowledge in Digital Technology

Contributing as a Pioneer in PPP/PFI Advisory

MHIR is drawing on its strengths in digital technology to help its
customers promote sophistication of marketing methods andlogistics systems. One example of this is the start-up of theworld’s largest joint taxi dispatching service in a single city thatmakes use of a common platform for realtime location tracking.
Using a smartphone application, thisservice matches user location andvehicle movement data to enable
the best vehicle distribution acrosstaxi companies.

MHRI has a proven track record of undertaking a broad range ofjoint public-private sector projects, including airports, seaports,
water supply, and wastewater treatment facilities. In fiscal 2016,
MHRI received the mandate to provide advisory services for theprivatization of the concession for Kumamoto Airport. In
rebuilding the airport, which had been damaged by a series ofearthquakes in April 2016, MHRI played an advisory role indrafting the reconstruction plan anddesigning the concession scheme.
The project served as a symbol ofKumamoto’s recovery from thedisaster and contributed to theregion’s economic recovery.

2017 Integrated Report62

Our Strategies for Creating Value

Increasing the Global Presence

Enhancing Sector Coverage and Products,
Becoming a Lead Bank in the US
Mizuho’s wholesale business in the Americas saw a major expansion since the acquisition of the US loan
portfolio from the Royal Bank of Scotland (RBS). The synergy effect with the RBS and the collaboration amongbanking, securities and trust functions have been the major advantage in winning underwriting, advisory andother value-added deals that bring in non-interest income.

2016
Established the US bank holding

2company, Mizuho Americas

1955
Nihon Kangyo Bank launched US operation

1956
The Dai-ichi Bank
launched US operation
The Industrial Bank of Japanlaunched US operation2010
Launched the Super 30 (later upgraded
to Global 300) strategy for global

2015

business

Acquired the US loan portfolio of theRoyal Bank of Scotland (RBS)

1953
Fuji Bank launched US operation

1950
63

Mizuho Financial Group■ Number of First Tier Relationships
with US Global 300 Corporate Customers

85

1
15
Before RBS

After RBS

2016

Our Strategies for Creating Value Increasing the Global Presence1

Investment Banking Platform Supercharged by the RBS Acquisition

Mizuho’s 2015 acquisition of the majorityof the Royal Bank of Scotland (RBS)’s US
corporate and investment banking assets,
highlighted by a USD36.5 billion loan
portfolio for approximately 200 customers
and the addition of more than 130 personnel
across customers coverage, capital markets,risk management, and operations, was a
game-changer that significantly accelerated
Mizuho’s growth in the Americas region.
Since 2010, Mizuho has been pursuing the focused businessdevelopment strategy called Super 30/50 or Global 300*, building
long-term relationship with selected non-Japanese corporate
customers across the world. The synergy effect of the RBS
integration has fundamentally changed Mizuho’s market position,customer access, and product depth, pushing up the number of firsttier relationships with existing customers and resulting in a significant
improvement in non-interest income. Mizuho will continue enhancing
its product capability across debt capital markets (DCM), loan capital
markets (LCM), foreign exchange (FX), and other important capital
markets areas, promoting cross-sells with securities- and derivativesrelated products, for greater profitability.

2* Initially launched in 2010 as “Super 30/50” strategy, where 30 to 50 blue-chip nonJapanese company groups were selected from each of the four region outside Japan(Americas, EMEA, East Asia and Asia & Oceania) for focused business development. The
strategy was renamed “Global 300” strategy in 2016 and pursued as such since then.

9

US Investment-grade Bond Underwriting Ranking

15th (2014)

th (2016)■ Non-interest Income in the Americas
■ Securities-related ■ Loan-related■ Derivatives, etc.

760

(USD millions)* MHBK managerial accounting, rounded figures

920

960

FY2015FY2016540

FY2013

FY2014

Accelerating Banking-Securities-Trust Collaboration under a Bank Holding Company

Mizuho established a US bank holding
Verizoncompany (BHC), Mizuho Americas in July
2016. It has resulted in accelerated crossentity linkages between banking, securities,
USD 6,150,000,000
and trust functions in the US, increasing
Senior Notes
efficiency and operational excellence by
optimizing resources and capital across
Active Bookrunnerentities and expanding capacity to manage
risk and execute with speed and precision.
July 2016
In the area of investment banking andadvisory, Mizuho has continued to expand strategic capital raisingsolutions in DCM, equity capital markets (ECM) and M&A throughintegrated banking and securities functions, with syndicated financecapabilities as a starting point with customers. A case in point is thehigh-profile transaction with Verizon, a major US telecom company.
Mizuho won the first active bookrunner mandate for Verizon among
Bank of America Merrill Lynch, Deutsche Bank, and Goldman
Sachs in July 2016. Its successful performance on the deal resulted
in winning a subsequent mandate from the same customer asbookrunner on initial securitization transaction.
Furthermore, Mizuho is reorganizing its product functions andimproving business processes to better support its rapid businessexpansion.

Focus Areas for Fiscal 2017 and Beyond
For further expansion of Investment Banking & Advisory business, Mizuho will leverage its Corporate Finance Advisory and Solutions(CFAS) function in providing enhanced support to customers, focusing on sectors including Technology, Media and Telecom (TMT)and Healthcare. Moreover, it will continue to pursue cross-border M&A deals by leveraging its customer base in Asia, supporting US
and multinational customers through all phases of the business investment cycle, including post-merger integration.
For Global Markets business, it will fully integrate derivatives and FX business within markets and continue to expand Sales &Trading products lineup.

2017 Integrated Report64Foundations for Our Corporate Value

Corporate Governance

Mizuho’s Corporate
Governance
MHFG, as the group’s holding company, is taking continuing initiatives to realize “what we aim to be” with regard to our
Board of Directors and corporate governance. To fulfill our social role and mission by giving due regard to creating value forshareholders and other stakeholders, realizing improved corporate value through continuous and stable corporate growth,and contributing to economic and industrial development and prosperity of society inside and outside of Japan, we haveestablished our corporate governance system consisting with the Board of Directors at its core, and endeavor to further
enhance our corporate governance.

First as a Japanese bank

■ Progress of Strengthening Corporate GovernanceIntroduced a full-scale in-housecompany system

2017

2016

First as a Japanese Mega-bankT ransformation into a Company with Three Committees
Disclosed Corporate Governance Guidelines

2014
2013

2015
First as a Japanese bank hairmen of the Board of Directors and the three legallyCrequired committees have become fully comprised ofindependent outside directors¯ MHBK, MHTB, and MHSC have each become a Company
with Audit and Supervisory Committee

1999
First in Japan

Establishing the group-wide collaboration amongbanking, trust banking, and securities functions
 ommencement of One Bank and One
C
Securities StructureA nnouncement of establishing a comprehensive
financial services group

65

Mizuho Financial GroupFirst as a Japanese bankF iled the Corporate Governance Report in compliance with the
Corporate Governance CodeDisclosed the Policy Regarding Cross-holdings of Shares of Other
Listed Companies and the Standards Regarding the Exercise of Voting
Rights Associated with Cross-shareholding

Foundations for Our Corporate Value Corporate Governance

Basic Policy regarding MHFG’s Corporate Governance System
Effectiveness

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

Delegating decisions on business execution to the executive officers

SpeedTransparency
and Fairness
GlobalPerspective

Make it possible for the management to make swift and flexible decisions and realize expeditious corporate management by the
Board of Directors’ delegating decisions on business execution to the executive officers

Securing independence of management supervision
Utilize committees, etc., comprising mainly outside directors who are independent from the management of Mizuho, and securetransparency and fairness in decision-making processes regarding the appointment and dismissal of, and compensation for, themanagement as well as the effective supervision of the management

Adopting global standards
Establish a governance structure appropriate for a financial group expanding across the globe, by actively adopting operations andpractices that are recommended at a global level

Principal Features of MHFG’s Corporate Governance System
Majority of the Board of Directors shall comprise non-executive directors

Composition of theBoard of Directors

In light of the role of the Board of Directors to supervise the management, the number of non-executive directors (outside directors andinternal non-executive directors) shall comprise a majority of the directors in the Board of Directors.
Meanwhile, we appoint a sufficient number of internal directors for the purpose of ensuring quality, including expertise, in decision making
and effective supervision by directors who are familiar with financial businesses and regulations as well as Mizuho’s business model.

The Chairman of the Board of Directors shall, in principle, be an outside director.

Chairman of theBoard of Directors

The Chairman of the Board of Directors shall, in principle, be an outside director (or at least a non-executive director) in light of therole of the Board of Directors to supervise the management.
The Deputy Chairman of the Board of Directors shall be selected from among the internal non-executive directors and shall assist the
Chairman in the performance of his or her duties.

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

Composition of
the Nominating
Committee andCompensation
Committee

The Nominating Committee shall determine the contents of proposals regarding the appointment and dismissal of directors of MHFG tobe submitted to the general meeting of shareholders, and shall exercise approval rights in MHFG with respect to the appointment anddismissal of directors of each of the Core Subsidiaries*. The Compensation Committee shall determine the compensation for directors andexecutive officers of MHFG, exercise approval rights in MHFG for compensation for directors of the Core Subsidiaries.
All members of both committees, including the Chairman, shall be appointed from among the outside directors (or at least non-executive
directors) to ensure objectivity and transparency in the process of appointment of, and compensation for, directors.
*MHBK, MHTB, and MHSC

Chairmen of
the Nomination,
Compensation, andAudit Committees

The Chairmen of the Nominating, Compensation, and Audit Committees shall be outside directors.

Compliance with the Corporate Governance Code
The Corporate Governance Guidelines set out the fundamental perspectives regarding corporate governance in Mizuho, and theframework of the corporate governance system, including the roles, composition, and governing policies regarding the Board of
Directors, executive officers, Nominating Committee, Compensation Committee, and Audit Committee for MHFG as a Company withThree Committees.
In addition, the Corporate Governance Report, which sets out the status of the corporate governance system of MHFG, is
submitted to the Tokyo Stock Exchange and displayed on the websites of that exchange and MHFG.
Corporate Governance Guidelines
https://www.mizuho-fg.com/company/structure/governance/pdf/g_guideline.pdf
Corporate Governance Reporthttps://www.mizuho-fg.com/company/structure/governance/pdf/g_report.pdf

2017 Integrated Report66Foundations for Our Corporate Value

Corporate GovernanceCorporate Governance System
We have adopted a Company with Three Committees with the belief that, under the current legal system, aCompany with Three Committees is the most effective as a system to realize the basic policy regarding
MHFG’s corporate governance system.
Composition of the Board of
Directors
	Non-executive directors
shall comprise a majority ofthe directors in the Board ofGeneral Meeting of Shareholders
Su per v i s i on

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

Appointment of Directors

Directors.
Chairman of the Board of
Directors
	The Chairman shall, in principle,

Board of Directors

	In principle, all members shallbe appointed from among theoutside directors.
Chairmen of the Nominating
Committee, Compensation
Committee, and Audit
Committee
	The Chairmen of the Nominating,Compensation, and Audit
Committees shall be outside
directors.

Chairman

Chairman

Determines
the compensation

Internal non-executive
directors:
Internal directors who
concurrently serve as
executive officers:

Determines the contents of proposals forgeneral meetings of shareholders regarding
the appointment and dismissal of directors*All members, in principle,
shall be outside directors.

Outside directors:

be an outside director.
Composition of the Nominating
Committee and Compensation
Committee

Nominating
Committee

Compensation Chairman
Committee

Determines the compensation for eachindividual director and executive officer*All members, in principle,
shall be outside directors.

Human Resources
Review Meeting*The Chairman shall, in principle,
be an outside director.
*Non-executive directors shall comprisea majority of the directors.

Audits the executionof duties

Audit
Committee

Chairman

Audits the legality and appropriatenessof the execution of duties by directors
and executive officers*Majority of members shallbe outside directors

Risk Committee

Outside Director Session- Appoints and dismisses executive officers- Delegates decisions on business execution- Supervises the execution of duties

M an agem en t

Executive
Officers

Audits the execution ofduties by executive officers

Determines the compensationfor executive officers

President & Group CEO

Makes decisions on business execution, based on delegation from the Board of Directors,
and implements business execution

Directors
 or MHFG’s Overview ofF
Independence Standards of
Outside Directors, please refer
to our website.

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

67

Mizuho Financial Group

Appointment of Directors
In the course of appointing directors who
concurrently serve as executive officers, candidates
to be appointed as directors are personnel who
satisfy matters such as the appointment policy set
out by the Nominating Committee, and executive
officers such as the Group CEO and others who
have been delegated the duties (CFO, CRO, CCO,
CSO, etc.) to carry out checks and balances withrespect to the management.
Each candidate to be appointed as an outside
director must satisfy the following in order to fully
exert his or her supervisory function.
(1) The candidate has deep insight and knowledge
and extensive experience in areas such as
corporate management, risk management,compliance with laws and regulations, crisis
management, financial accounting, internal
control, macroeconomic policy (including financeand industry), organizational and cultural reform,or global management.
(2) The candidate has the ability to get an overview
and understanding of the overall management ofMizuho, the ability to grasp essential issues andrisks, and the ability to appropriately interview
management and express opinions to andpersuade management, etc.
(3) It is recognized that the candidate is independent
from management of the group in light of the
Independence Standards of Outside Directors of
MHFG.

Foundations for Our Corporate Value Corporate GovernanceOutside Directors■ Outside directors and reason for appointment as an outside director
Name

Tetsuo Seki

Reason for appointment as an outside director
Expected to contribute to, among others, (i) strengthening theeffectiveness of both the decision-making and supervisory functionsof MHFG’s Board of Directors and (ii) MHFG’s effort to further enhanceinternal control systems and group governance, leveraging his extensive
experience and deep insight as a top executive, etc.

Expected to contribute to, among others, (i) strengthening the effectivenessof both the decision-making and supervisory functions of MHFG’s Board of
Takashi Kawamura Directors and (ii) MHFG’s effort to enhance group governance, leveraging
his extensive experience and deep insight as a top executive who has
implemented bold management and governance reforms.

and take efforts to be informed of the management environment andthe state of business surrounding our group. We provide our directors
on a continuing basis with opportunities to acquire and improveknowledge that is necessary to fulfill their expected roles and duties.
In particular, for outside directors to fully fulfill their functions,each outside director is offered opportunities to acquire the necessary
knowledge about our group’s business, finance, and organizational
structure at the time of appointment and continuously thereafter.

■ Opportunities to acquire and improve knowledge for outside directors
At the time of appointment

Tatsuo Kainaka

Expected to contribute to, among others, (i) strengthening theeffectiveness of both the decision-making and supervisory functionsof MHFG’s Board of Directors and (ii) the further enhancement of thecorporate governance, compliance, and crisis management system of
MHFG, leveraging his extensive experience, deep insight, and high levelof expertise as a prosecutor, judge, and attorney-at-law.

Intensive explanations at the time of appointment will be conducted individually for each
newly appointed outside director.
¯ Explanations from executive officers in charge, the Deputy Chairman of the Board of
Directors, and the General Manager of the Corporate Secretariat on corporate identity,business contents, business strategy, medium-term business plan, annual businessplan, organizational structure/authorities, finance, risk/compliance management,
human resources, IT systems/operation, internal audits, governance system, etc.

Hirotake Abe

Expected to contribute to, among others, strengthening the effectivenessof both the decision-making and supervisory functions of MHFG’s Boardof Directors, leveraging his extensive experience, deep insight, and highlevel of expertise as a certified public accountant.

Post-appointment (shown below are examples conducted for fiscal 2016)

Hiroko Ota

Expected to contribute to, among others, strengthening the effectivenessof both the decision-making and supervisory functions of MHFG’s Boardof Directors, leveraging her extensive experience, deep insight, and highlevel of expertise as a university professor and a Minister of State for
Economic and Fiscal Policy of the Cabinet Office, which includes theability to see things from a macroeconomic perspective (e.g., from apublic policy and economic policy perspective) as well as a high level ofawareness of the problems that must be resolved for the revival of theJapanese economy.

Izumi Kobayashi

Expected to contribute to, among others, strengthening the effectivenessof both the decision-making and supervisory functions of MHFG’s Boardof Directors, leveraging her extensive experience and deep insight as a
top executive in Japan and overseas.

Director Training
In order to fulfill their roles in the monitoring and advising functions of
the Board of Directors, our directors proactively gather information‌
Visitsto domestic departments and branches of the Core Subsidiaries as well as theKansai operation center‌Outside Director Session‌¯ Discuss management issues, operations of the Board of Directors, the current stateof the governance structure, etc.
Off-site meetings on management issues‌¯ Enable a deeper mutual understanding with outside directors through free
discussions with head of in-house companies as well as President & CEOs of theCore Subsidiaries (newly established in fiscal 2016)
Lunches following the Board of Directors meetings‌‌¯ Help outside directors to obtain necessary knowledge through exchanging
information with internal and external specialists and authorities, the sharing of IRrelated information, etc.
Executive reception (dinner)¯ ‌‌‌Help outside directors to deepen their understanding towards the management teamAttendance at meeting of the General Managers of the Core Subsidiaries
Thorough explanations of proposals prior to the Board of Directors’ meetings andimplementation of follow-up (after each meeting)2017 Integrated Report68Foundations for Our Corporate Value

Corporate Governance

Board of Directors

Composition of the Board of Directors

6 outside
directors

5 directors
who concurrently serveas executive officers
7 internal
directors

8 non-executive directors

Area of expertise of outside directors

3
1
1

directors

Management

director

Yasuhiro Sato

Takanori Nishiyama

Koichi Iida

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

Member of the Board of Directors,
Managing Executive Officer /Head of Compliance Group (Group CCO)

Member of the Board of Directors,
Managing Executive Officer /Head of Strategic Planning Group (Group CSO)

2003 Executive Officer / Senior Corporate
Officer of International Banking Unit of
MHCB 2004 Managing Executive Officer / In
charge of business promotion 2006 Executive
Managing Director / Head of Corporate
Banking Unit 2007 Deputy President /Chief Auditor 2009 President & CEO of
MHCB, Member of the Board of Directorsof MHFG 2011 Member of the Board of
Directors of MHBK, President & Group CEO of
MHFG 2013 President & CEO of MHBK (Note)2014 Member of the Board of Directors(current) Member of the Board of Directorsof MHTB (current) Member of the Board of
Directors of MHSC (current) 2014 Member ofthe Board of Directors, President & Group CEOof MHFG (current)

2012 General Manager of Branch Banking
Division No.5 of MHBK 2014 Executive
Officer / General Manager of Omiya
Branch 2015 Managing Executive Officer / In
charge of Corporate Banking 2016 Managing
Executive Officer / In charge of Banking 2017
Member of the Board of Directors, Managing
Executive Officer / Head of Compliance Groupof MHFG (current) Executive Managing
Director / Head of Compliance Group of MHBK
(current)

2012 General Manager of Corporate Banking
Division No.10 of MHCB, Head of Corporate
Coverage Department I of MHSC 2013
General Manager of Corporate Banking
Division No.10 of MHBK (Note) 2015 Executive
Officer / General Manager of Corporate
Banking Division No.10 2016 Member of theBoard of Directors, Managing Executive Officer/ Head of Financial Control & Accounting
Group of MHFG Executive Managing Director/ Head of Financial Control & Accounting
Group of MHBK 2017 Member of the Boardof Directors, Managing Executive Officer /Head of Strategic Planning Group of MHFG
(current) Executive Managing Director / Headof Strategic Planning Group of MHBK (current)

Tetsuo Seki

Takashi Kawamura

Tatsuo Kainaka

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

Outside director
Member of the Nominating Committee(Chairman) / Member of the Compensation
Committee

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

1963 Joined Yawata Iron & Steel 1993
Director of Nippon Steel 1997 Managing
Director 2000 Representative Directorand Executive Vice President 2003
Executive Advisor 2004 Senior Corporate
Auditor 2006 Independent Director ofTerumo 2007 Outside Director of Sapporo
Holdings, Outside Director of Tokyo Financial
Exchange, Chairperson of the Japan
Corporate Auditors Association, Outside
Director of Japan Post Holdings 2008
Executive Advisor to Nippon Steel, President(Representative Director) of the Shoko Chukin
Bank 2013 General Advisor of the Shoko
Chukin Bank (current) 2015 Member of theBoard of Directors (Outside Director) of MHFG
(current) 2016 Audit & Supervisory Board
Member of Sapporo Holdings (current)

1962 Joined Hitachi 1995 Director 1997
Executive Managing Director 1999
Executive Vice President and Representative
Director 2003 Chairman of the Board andRepresentative Executive Officer, Hitachi
Software Engineering 2005 Chairmanof the Board, Hitachi Plant Engineering &Construction 2006 Chairman of the Board,
Hitachi Software Engineering 2007 Chairman of
the Board, Hitachi Maxell 2009 Representative
Executive Officer, Chairman, President and Chief
Executive Officer and Director, Hitachi 2010
Representative Executive Officer, Chairman and
Director 2011 Chairman of the Board 2014
Director of Hitachi, Member of the Boardof Directors (Outside Director) of MHFG
(current) 2016 Outside Audit & Supervisory
Board Member of Nikkei (current) 2017
Chairman of the Board of Directors (Outside
Director) of Tokyo Electric Power (current)

1966 Appointed as Public Prosecutor 2002
Superintending Prosecutor of the Tokyo High
Public Prosecutors Office, Justice of theSupreme Court 2010 Admitted to the Tokyo
Bar Association Joined Takusyou Sogo Law
Office (current) 2011 President of the Life
Insurance Policyholders Protection Corporationof Japan (current) 2012 Corporate Auditor(External) of Oriental Land (current) 2013
Member of the Board of Directors (Outside
Director) of MHBK 2014 Member of theBoard of Directors (Outside Director) of MHFG
(current)Law

director

Finance/accounting

1

director

Economic and fiscal policy

Tenure of office of directors

0-3 years 7 directors
3-6 years 5 directors
6 or more years

69

1 director

Mizuho Financial GroupFoundations for Our Corporate Value Corporate Governance

Makoto Umemiya

Yasuyuki Shibata

Ryusuke Aya

Nobukatsu Funaki

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

Member of the Board of Directors,
Managing Executive Officer /Head of Risk Management Group (Group CRO)

Member of the Board of Directors
Deputy Chairman of the Board of Directors
Member of the Audit Committee /Member of the Risk Committee (Chairman)

Member of the Board of Directors
Member of the Audit Committee

2012 General Manager of Osaka Branchof MHBK 2014 General Manager ofFinancial Planning Division of MHFG General
Manager of Financial Planning Division of
MHBK 2015 Executive Officer / General
Manager of Financial Planning Department
of MHFG Executive Officer / General
Manager of Financial Planning Department
of MHBK 2017 Member of the Board of
Directors, Managing Executive Officer / Headof Financial Control & Accounting Group of
MHFG (current) Executive Managing Director /Head of Financial Control & Accounting Groupof MHBK (current)

2011 General Manager of Hong Kong Treasury
Department of MHCB 2013 General Manager
of Hong Kong Treasury Department of
MHBK (Note) 2014 General Manager ofAmericas Treasury Division 2015 Executive
Officer / General Manager of Americas Treasury
Division 2016 Executive Officer / General
Manager of Risk Management Department
of MHFG Executive Officer / General
Manager of Risk Management Department
of MHBK 2017 Member of the Board of
Directors, Managing Executive Officer / Headof Risk Management Group of MHFG (current)
Executive Managing Director / Head of Risk
Management Group of MHBK (current)

2012 Executive Officer / General Manager of
Risk Management Division of MHFG Executive
Officer / General Manager of Risk Management
Division of MHBK Executive Officer / General
Manager of Risk Management Division of
MHCB 2013 Managing Executive Officer /Head of Risk Management Group of MHFGManaging Executive Officer / Head of Risk
Management Group of MHBK Managing
Executive Officer / In charge of Risk Management
Group of MHTB Managing Executive Officer/ In charge of Risk Management Groupof MHSC 2014 Member of the Board of
Directors, Managing Executive Officer / Head of
Risk Management Group of MHFG Executive
Managing Director / Head of Risk Management
Group of MHBK 2017 Member of the Boardof Directors of MHFG (current) Member ofthe Board of Directors (Audit & Supervisory
Committee Member) of MHBK (current)

2010 Audit & Supervisory Board Member of
MHCB 2013 Audit & Supervisory Board
Member (Outside Member) of MHSC, Audit &Supervisory Board Member of MHFG 2014
Member of the Board of Directors of MHFG
(current)

Hirotake Abe

Hiroko Ota

Izumi Kobayashi

Outside director
Member of the Compensation Committee /Member of the Audit Committee

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

Outside director
Member of the Nominating Committee /Member of the Risk Committee

1970 Joined Tohmatsu Awoki 1985
Temporarily transferred to Deloitte & Touche
New York Office 1990 Senior Partnerof Tohmatsu & Co. 2001 CEO 2004
Executive Member of Deloitte Touche
Tohmatsu 2007 Senior Adviser of Deloitte
Touche Tohmatsu 2010 Established theCertified Public Accountant Hirotake Abe
Office (current) Outside Corporate Auditorof CONEXIO (current) Visiting Professor,
Chuo Graduate School of International
Accounting 2011 Outside Corporate Auditorof Honda Motor 2012 Outside Audit andSupervisory Board Member of NIPPON STEEL& SUMITOMO METAL 2015 Member of theBoard of Directors (Outside Director) of MHFG
(current)

1996 Associate Professor, the Graduate Schoolof Policy Science, Saitama University 1997
Associate Professor, National Graduate Institutefor Policy Studies 2001 Professor, National
Graduate Institute for Policy Studies 2002
Director for Economic Research, Cabinet
Office 2003 Deputy Director General for
Economic Research, Cabinet Office 2004
Director General for Economic Research,
Cabinet Office 2005 Professor, National
Graduate Institute for Policy Studies 2006
Minister of State for Economic and Fiscal
Policy 2008 Professor, National Graduate
Institute for Policy Studies (current) 2009
Vice-President, National Graduate Institute for
Policy Studies 2012 Outside Director of JXTG
Holdings (current) 2013 Outside Director ofPanasonic (current) 2014 Member of theBoard of Directors (Outside Director) of MHFG
(current)

1981 Joined Mitsubishi Chemical Industries(currently Mitsubishi Chemical) 1985
Joined Merrill Lynch Futures Japan 2001
President and Representative Director, Merrill
Lynch Japan Securities 2002 Outside
Director, Osaka Securities Exchange 2008
Executive Vice President, the Multilateral
Investment Guarantee Agency, the WorldBank Group 2013 Outside Director, ANA
HOLDINGS (current), Outside Director, Suntory
Holdings 2014 Outside Director, Mitsui &Co. (current), Member of the Risk Committeeof MHFG (Outside Expert) 2015 Vice
Chairperson, Japan Association of Corporate
Executives (current) 2016 Member of theBoard of Governors, Japan Broadcasting
Corporation (current) 2017 Member of theBoard of Directors (Outside Director) of MHFG
(current): Internal director: Outside director: Director who concurrently serves
as executive officers: Non-executive director
MHCB: Mizuho Corporate Bank
Note: The former MHBK and the former
MHCB conducted a merger on
July 1, 2013, whereby the former
MHCB was the surviving company
in an absorption-type merger, andthe former MHCB changed its
trade name to MHBK.

2017 Integrated Report70Foundations for Our Corporate Value

Corporate GovernanceOperation of the Board of Directors and Each Committee
Board of Directors

Nominating Committee

Main roles

The main roles of the Board of Directors are making decisions
on business execution such as the basic management policy,
which are matters to be determined solely by the Board of
Directors under laws and regulations, and supervising theexecution of duties by directors and executive officers as
defined in the Companies Act. The Board of Directors hasdelegated decision making, in principle, to the President &Group CEO for matters other than those to be determinedsolely by the Board of Directors under laws and regulations.
The Chairman of the Board of Directors plays a central rolein narrowing down the agendas to concentrate on truly
necessary proposals and, regarding proposals associated withcore management issues, the Board of Directors promotes
comprehensive discussions of essential points in a free andvigorous manner with the inclusion of high-quality opinions andsuggestions from outside directors.

The Nominating Committee comprises mainly outside directors whoare sufficiently independent from the management of the group, andthe role of the Nominating Committee is ensuring objectivity andtransparency in executive appointments. Regarding appointment of
MHFG’s directors, the Core Subsidiaries’ directors and other related
issues, the President & Group CEO drafts proposals in accordancewith the Nominating Committee Chairman’s instructions, and theNominating Committee engages in repeated deliberations regarding
those proposals. During this process, the Human Resources Review
Meeting, which consists of the President & Group CEO and outside
directors who serve as members of the Nominating Committee
and the Compensation Committee, undertake deliberations basedon consideration of objective indicators of external evaluations,specialized expertise gained through work experience and otherfactors. They also undertake such measures as those to ensure
opportunities to obtain information from individual personal
interviews and reports presented by executive officers to the Boardof Directors. Through these activities, the Committee ensureseffectiveness of a highly transparent process mainly handled byoutside directors to determine executive appointments.

Composition• The Chairman shall, in principle, be an outside director.
• Majority of the Board of Directors shall comprise nonexecutive directors.

• The Chairman shall be an outside director.
• The members shall all be outside directors.

Operation

The Board of Directors held 13 meetings during fiscal
2016 and had high-quality discussions regarding changing
Mizuho’s revenue structure through the introduction of the inhouse company system, business portfolio, reforming thecost structure, branch strategy, the head office reform, etc.
In addition, to realize such objectives as providing directors
with a good understanding of the overall management from awide perspective, the Board of Directors received reports onsuch topics as the execution of priority strategies, businessperformances, and other important issues.

The Committee held 12 meetings in fiscal 2016 and, among others,
decided on the candidates for directors of MHFG and approved
the selection of directors and representative directors of the Core
Subsidiaries.

Number of meetings in fiscal
2016 (average attendance)

13 meetings (100%)

12 meetings (100%)In the preparation of the fiscal 2017 business plan, Board of Directors’ discussions were held from an early stage and directors were deeply
involved in each process.
The executive officers and outside directors collaborated on preparation of the basic strategy framework embodied in the basic management policies.

DecemberReflected opinions ofoutside directors

Macro-environment
Key management issues
Discussed awareness of issues as
President & Group CEO and sharedmajor points of contention andthoughts on the directions to be taken

71

Mizuho Financial Group

January

Reflected opinions ofoutside directors

February

Reflected opinions ofoutside directors

Group-wide fundamental
perspectives

Basic policy of
individual companies

As the group-wide fundamental
perspectives, discussed basic
policies, priority strategies that should
be formulated by management, etc.

As the fundamental perspectivesof individual companies, discussed
each company’s annual operating
policy, profit plan, etc.

March

Business plan decisions

Foundations for Our Corporate Value Corporate GovernanceCompensation Committee

Audit Committee

The Compensation Committee comprises mainly outside
directors who are sufficiently independent from the
management of the group, and the role of the Compensation
Committee is to ensure objectivity and transparency inexecutive compensation. Through a highly transparent andobjective review process mainly handled by outside directors,
the Compensation Committee determines the compensationfor each individual director and executive officer as defined in
the Companies Act of MHFG, exercises the approval rights
held by MHFG regarding compensation of each individual
director of the Core Subsidiaries, and determines the basic
policy and executive compensation system for MHFG
and the Core Subsidiaries. Considering such factors as
MHFG’s medium- to long-term business performance andexamples of other companies including those in the same
industry as well as economic and social circumstances, theCompensation Committee engages in repeated deliberations
regarding the compensation system based on the role andresponsibility assigned to each officer, and gives necessary
revision.

The main roles of the Audit Committee are auditing the legality
and appropriateness of the execution of duties by directors andexecutive officers as defined in the Companies Act. Regarding
items necessary for auditing the execution of duties by directors
and executive officers as defined in the Companies Act, theAudit Committee obtains timely and appropriate reports andexplanations from directors, executive officers as defined in
the Companies Act, employees, and the independent auditor(“Directors, etc.”) and gives instructions and recommendations
when necessary. In addition, the Audit Committee ensuresthe effectiveness of its audits by confirming the processes
and contents of decision making by the business execution
departments through measures by the full-time Audit Committee
members such as arranging for the attendance at important
meetings held by the business execution departments, examining
important decision-related documents, obtaining reports from
Directors, etc., and coordinating operations with the Internal Audit
Group and other group units.

• The Chairman shall be an outside director.
• The members shall all be outside directors.

• The Chairman shall be an outside director.
• Majority of the Audit Committee shall comprise outside directors.

The Committee held 13 meetings in fiscal 2016 and revised
the executive compensation system for MHFG and theCore Subsidiaries based on the introduction of the in-housecompany system and other factors. Among others, theCommittee also decided on the compensation of individual
directors and executive officers as defined in the Companies
Act of MHFG and approved the compensation of individual
directors of the Core Subsidiaries.

In fiscal 2016, the Audit Committee held 18 meetings anddetermined, in addition to the formulation of an auditing plan,such matters as approvals on the basic internal auditing planand the entrustment to the Head of the Internal Audit Group.
It also confirmed such matters as the circumstances regarding
the execution of duties by directors and by executive officers as
defined in the Companies Act.

13 meetings (100%)

18 meetings (98.8%)▲

Compensation Policy

MHFG sets out the Mizuho Financial Group
Compensation Policy concerning the determinationof compensation for each individual director,
executive officer, and specialist officer (“Directors,etc.”) of MHFG as well as the Core Subsidiaries.
Executive compensation for MHFG and theCore Subsidiaries pursuant to such policy aims
to function as incentive and compensation foreach officer to exercise the designated function
to the fullest with respect to striving to realize

management with consideration to value creationfor various stakeholders and improve corporate
value through continuous and stable corporate
growth based on our basic management policies
under our Corporate Identity.

 Human Resources Review
Meeting
We established the Human
Resources Review Meetingthat consists of the President &Group CEO and outside directors
who serve as members of theNominating Committee andCompensation Committee asa deliberative body that mainly
conducts the deliberation of
proposals to appoint executive
officers as defined in the
Companies Act, and executive
officers as defined in our internal
regulations with titles of MHFG,
and executive officers as defined in
our internal regulations with the titleof Core Subsidiaries.
Risk Committee
We established the Risk Committeethat in principle fully consists of
non-executive directors or external
experts as an advisory body thatmainly advises the Board of
Directors with respect to thedetermination and the supervision
regarding risk governance, as wellas the supervision of the status ofrisk management, etc.
Outside Director Session
In order to deepen outside
directors’ understanding of Mizuho
and reflect their frank outsider’s
perspective opinions in our overallmanagement to the maximum
extent, we hold an Outside
Director Session at least once a
year where only outside directors
attend to discuss management
issues, operations of the Board of
Directors, the current state of thegovernment structure, etc.

Compensation policy
https://www.mizuho-fg.com/company/structure/
governance/pdf/compensation.pdf

2017 Integrated Report72Foundations for Our Corporate Value

Corporate GovernanceEvaluating the Effectiveness of the Board of Directors
As a front runner in the area of corporate governance, Mizuho is aiming to increase its corporate value through pursuing “growth-oriented”
governance reforms designed to foster “earning potential.”
In order to confirm the progress and results of the reforms and to identify issues to be addressed going forward, we conduct theevaluation of the effectiveness of the Board of Directors as a whole.
For fiscal 2016, an interim evaluation was made at an Outside Director Session where only outside directors attended; a third-party
institutional evaluator provided a Third-Party Evaluation; and, based on the interim evaluation and the Third-Party Evaluation, a selfevaluation was made and issues to be addressed as well as measures to be taken going forward were discussed in order to secure theeffectiveness of the Board of Directors.

Outline of the Evaluation
Response to the issues recognized in fiscal 2015
It was confirmed that improvements were seen in issues identified in
the previous fiscal year’s evaluation and that, going forward, continual
efforts are being taken to address the remaining issues as follows.
(1) To further make deliberations at the Board of Directors’ meetings
more fulfilling and efficient• There has been greater substantiation of discussions at Boardof Directors’ meetings, as a result of measures for refinement ofstrategic proposals, clarification of issues raised in documents, and areduction of the time for proposal explanations.
• We have recognized that, going forward, it is necessary to explain
proposals in ways to encourage discussions and to take further
measures supporting more in-depth discussions.

Efforts Going Forward
In line with the increased sophistication of corporate governance, it
was recognized that further issues can be addressed, and we willcontinue to make further efforts on the following points:(1) Strengthening the mechanisms that support the increased
sophistication level of corporate governance(2) Taking further measures to help the management to take advantage
of implications from the enhanced supervision(3) Undertaking further enhancement of operations of the Board of
Directors’ meetings and Audit Committee meetings

Based on this evaluation of effectiveness, we will further consider anddevise additional necessary measures to maximize the supervisory
functions of the Board of Directors.

(2) To further utilize outside directors’ insights and to reflect them onbusiness execution• We utilized newly established Off-site Meetings on Management
Issues* as settings to provide information to outside directors andachieve mutual understanding.
• We have recognized that it is necessary to take further measures toachieve mutual understanding between supervision and execution.
(3) To agree on how the Board of Directors should be engaged indialogue with stakeholders• It was confirmed that there were deeper discussions regarding
the distribution of surplus and the use of voting rights, as well as astrengthening of information disclosed and dialogue with investors.

Summary
With regard to the Board of Directors and corporate governance, it
was confirmed that “what we (Mizuho) aim to be” was largely realized
and that the present condition of corporate governance is generally
good. Corporate governance has become even more sophisticatedthan before, there have been more active discussions of the topic
than before, and various schemes have been implemented toadvance corporate governance. Based on this, the effectiveness of
the Board of Directors as a whole has accordingly been secured andthere have been improvements from fiscal 2015.

73

Mizuho Financial Group valuation Method regarding the Evaluation of theE
Effectiveness of the Board of Directors for Fiscal 2016
The Board of Directors conducted self-evaluation through thefollowing procedure:(1) The interim evaluation was made in December 2016 at an
Outside Director Session where only outside directors attended;(2) Utilizing the experience of a third-party institutional evaluatorwith extensive knowledge of financial institutions and corporate
governance, a Third-Party Evaluation was made, based on
individual interviews given to all directors after they answeredquestionnaires, as well as interviews with heads of in-housecompanies, the Corporate Secretariat supporting the Board of
Directors and the Audit Committee office; and(3) The Board of Directors in the April and May 2017 meetings took
into account the interim evaluation and the Third-Party Evaluation
mentioned above, and discussed issues to be addressed
regarding ensuring the effectiveness of the Board of Directors andmeasures to be taken going forward.

* Meetings to enable a deeper mutual understanding with outside directors throughfree discussions with heads of in-house companies as well as the CEOs of the Core
Subsidiaries

Foundations for Our Corporate Value Corporate Governance

Message from the Chairman of the Board of Directors

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

Hiroko Ota

How the Board of Directors Meetings Are Operated
Mizuho began the full-scale corporate governance reforms in fiscal
2014 and for the past three years, MHFG’s internal and outside
directors have worked together with strong resolve to implement
governance reform. The group is steadily changing. In fiscal
2016, the Board of Directors held 13 meetings in total and heldcomprehensive discussions on strengthening the group’s profitability,
such as clarification of its business portfolio, cost structure reform,and branch strategy, while adopting diverse perspectives of outside
directors.

As the Chairman of the Board of Directors
The biggest role of the Chairman of the Board of Directors is tomake discussions livelier and more productive at the meetings. It isnecessary to narrow down the matters to be discussed to ensure thatenough time can be devoted to the items on the agenda, and clarify
the issues to be discussed on the matters to ensure substantive
discussions. To do this, it is also necessary to make sure that concise
and well-prepared materials are submitted, and I work with the
Corporate Secretariat to prepare these documents in advance.
I feel it is important for effective governance that an outside
director serves as Chairman of the Board. I set the agenda froman outsider’s perspective, and this makes it possible to conduct
persuasive discussions. On the other hand, it is important thatcompany information is properly communicated to the outside
directors. Unless information is shared with outside directors, thedirectors cannot perform their role properly. Mizuho supports thisthrough the Corporate Secretariat, a specialized department thatmaintains close contact with outside directors. Going forward, I
will work together with the Board members to make the Board of
Directors what it aims to be.

Issues to Be Addressed Going Forward
The essential issue for Mizuho going forward is strengthening
profitability. Our governance reforms can be said to have beensuccessful only when we achieve a substantial increase in profitability.
While we are taking steps for clarification of the business portfolio
and branch strategies, more thorough implementation of productivity
improvements, and cost structure reforms are necessary. In addition,
the human resource management reform that we are currently
undertaking is one of our most important challenges. Under thegroup’s traditional human resource management, personnel are
selected according to the year-group of entering the company
based on the evaluations they have accumulated since joining theorganization, and there are concerns that personnel may be marked
down disproportionately for the mistakes they have made. It will taketime to implement these changes, which aim to break away fromthe seniority and point-deduction system, and allow all employees
to demonstrate their ability. However, I believe that such efforts will
deeply instill governance reform throughout the group, and makeMizuho a strong organization where its members communicate
openly and vigorously to create value.
Fiscal 2017 is the second year of the medium-term businessplan. The results of the introduction of the in-house company
system will be evaluated this year. I would like to operate the Boardof Directors in a manner in which outside directors and management
will share a sense of crisis and expeditiousness.

2017 Integrated Report74Foundations for Our Corporate Value

Risk GovernanceRisk Governance Overview
Risk governance is a part of Mizuho’s corporate governance framework, centered on its risk appetite framework (RAF). The Board of
Directors determines fundamental matters regarding the RAF, along with its management systems and specific risk appetites, anddocuments them as a risk appetite statement (RAS). Mizuho also works to foster and promote a sound risk culture to support the risk
governance framework. To ensure strong risk governance, we maintain a risk management and compliance structure that operates inaccordance with the principles of the “three lines of defense.”

Risk Appetite Framework (RAF)
The purpose of our RAF is to (1) maximize our corporate value
by securing sustainable and stable profits and (2) fulfill our social
responsibilities. Based on such purpose, our core risk appetite is to takeappropriate risk and provide solutions based on our customers’ actual
needs, establishing our competitive advantage against our peers.
MHFG has positioned the RAF as the management control
framework to support optimization of orderly risk-taking and risk/

Formulation and Monitoring of Risk Appetite
Mizuho’s risk appetite consists of a risk appetite policy that serves
as the fundamental policy regarding our risk-taking activities and risk
appetite metrics that serve as means of quantifying the level of risktaking based on the risk appetite policy.
Risk appetite is determined through management discussions
on the outlook for external factors such as the macroeconomic,
regulatory, and competitive environments, along with potential risk
events such as economic slowdown and turbulence in financial
markets. These are then incorporated into main and risk scenariosthat are shared internally.
We then formulate a group-wide risk appetite policy basedon our awareness of these external environments, create specificstrategies and measures according to this policy and determine
corporate resource allocation and profit plans. Our risk appetite

return. Specifically, we will further concretely define our risk appetite
in establishing our medium-term and fiscal year business plans. The
risk appetite will be the basis for establishing our business strategy,
resource allocation, and budget, thus integrating risk management,
business strategy, and profits in order to maximize our risk-return.

metrics are expressed in terms of capital strength, profitability, andliquidity utilizing measures such as CET1 Capital Ratio, ROE, and
LCR.
Further, the risk appetite for the entire group is shared with
the in-house companies that implement strategies, to ensure theeffectiveness of the RAF. The in-house companies formulate individual
risk appetite policies to implement the group’s overall policy, and set
risk appetite metrics and levels to meet the overall metrics and levels.
Monitoring of the operational status for the established risk
appetite is conducted on a quarterly basis and as necessary. This
monitoring enables timely and appropriate actions, including flexible
revisions to our risk appetite and strategies, to be discussed andcarried out in the event of environmental changes that increase risk or
impede our risk appetite and strategies.

Mizuho’s RAF Control Structure

Supervision
Board of Directors• Determines basic matters regarding RAF andRAS• Supervises business execution by the
management based on the above determinations

Management
President & Group CEO

Management Governance Enhancement Committee [Chairman: Group CEO]• Formulates risk appetite policy• Establishes risk appetite metrics/level• Formulates RAS

Audit Committee• Audits the execution of duties by the directors
and the management regarding RAF
Risk Committee• Advises the Board of Directors and makes
proposals to the management regarding risk
governance75

Mizuho Financial GroupManagement Committee• Conducts business operations consistent
with the risk appetite• Embeds a sound risk culture in each lineof business

Risk Management Committee [Chairman: Group CRO1]• Monitors the operation of RAF
Balance Sheet Management Committee [Chairman: Group CFO2]• Formulates and promotes balance sheet management-centered strategies related torisk control and risk taking
1. Head of Risk Management Group 2. Head of Financial Control & Accounting GroupFoundations for Our Corporate Value Risk Governance

Verification of Risk Appetite by Stress Testing
Our group assesses the suitability of our risk appetite and thevalidity of our business plans through stress testing that calculates
and assesses the financial effect of the main and risk scenarios wedetermined have on our capital ratio and business results. The results
are analyzed and verified to confirm the outlook for capital ratio andbusiness results under the main scenario. We also confirm that thenecessary capital ratio and results can be secured should therisk scenario occur, and, in the event that they fall below necessary

standards, we consider and revise our risk appetite and businessplans.
Our stress testing also serves as a foundation for understanding
the characteristics of our business portfolio and enables planningin advance about the course of action that should be taken if therisk scenario occurs, and is conducted regularly to enhance our risk
management capabilities.

Risk Culture
Mizuho fosters a sound risk culture in which all directors and employees
maintain a high level of awareness regarding risk, and endeavor to
make proper judgements and take appropriate actions rooted in good
sense and ethical standards. Such judgements and actions allow us toachieve our risk appetite and enhance our corporate value.
Mizuho has established the Behavioral Guidelines for a Sound
Risk Culture, and works to instill its principles in executive officers
and employees through training sessions and other measures.
For Mizuho to put the “Customer First” principle into practice andenhance our corporate value, it is essential that all members maintainan attitude of not just avoiding risks, but taking the risks they should.
These guidelines provide a foundation for the appropriate values andcourses of action for Mizuho’s executive officers and employees totake when approaching risks, to which they can refer when they are
unsure of a judgement that needs to be made in their daily work.
Putting these guidelines into practice improves our ability to addressand counter risks, and fosters a sound risk culture.
These initiatives are also important from the standpoint ofinternal control, ultimately helping to prevent inappropriate behavior
by executive officers and employees.

Three Lines of Defense

Third line

Internal Audit Function
The third line-of-defense is independent of the first and second lines
and conducts assessment and examination on the operations of thefirst and second lines, and is responsible for providing advice andguidance to settle issues.

Basic policies
Submit/report

Third line

Internal Audit Group

Core group companies*

 epartment(s) inDcharge of risk
Internal
management/
audit
compliance

Basic policies
Submit/report

Monitoring
Companies/unitsFirst line-of-defense
autonomous control

Internal Audit GroupInternal
audit
Second line

Internalaudit

 epartment(s) inDcharge of risk
Internal
management/
audit
compliance

Monitoring
Report regarding thefirst line-of-defense
autonomous control
Formulate strategies,
allocate businessresources, etc.

First line

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

MHFG
Third line

Autonomous Control Function
The first line-of-defense conducts daily operations based on therules, procedures, and risk appetite, and has a primary responsibility
for risks and compliance matters (hereinafter, “risks, etc.”) accompanying the conduct of business as a risk owner, and for performing
autonomous control activities (to identify, assess, and manage/control risks, etc.).

Mizuho’s Risk Management and Compliance Framework

Second line

Second line

First line

Mizuho’s Definition of the Three Lines of Defensewith an independent third line of internal auditing of the first andsecond lines. In addition, MHFG sets group strategies and allocatesmanagement resources, monitoring the autonomous controls in thefirst line at core group companies in order to strengthen the systemproviding appropriate responses.

First line

Our group, in accordance with the “three lines of defense” approachin the Corporate Governance Principles for Banks released by theBasel Committee on Banking Supervision, ensures appropriate andeffective risk governance through a check-and-balance system withautonomous controls (first line) and monitoring (second line), along

Divisions/unitsFirst line-of-defense
autonomous control* Of the core group companies, MHBK, MHTB, MHSC, and TCSB conduct risk
management and compliance based on the “three line of defense” concept.

2017 Integrated Report76Foundations for Our Corporate Value

Risk Management

Mizuho recognizes the conducting of operations tailored to various types of risk and managing such risks
as a key issue relating to overall management. In order to implement our business strategy while
maintaining our financial stability, we maintain comprehensive risk management and control measures.
MHFG maintains basic policies for risk management that are applicable to the entire group. In linewith these basic policies, we endeavor to strengthen and enhance the sophistication of our risk
management system.

Risk Management Structure or more information onF
MHFG’s risk management,
please access our website.

Each of our subsidiaries adopts appropriate risk
management measures, while MHFG controls risk

management for the group as a whole.

https://www.mizuho-fg.com/
investors/financial/edtf/

MHFG
Supervision/Audit

Management

Departments responsible for risk management
Comprehensive risks

Executive Management
Committee
Business Policy Committees(Group CRO, etc.)

Officers responsible
for risk management

Board of Directors

Risk Committee

Operational risk
Credit risk

Credit Risk Management Department

Information technology risk

IT & Systems Planning Department

Operations risk

Operations Planning Department

Legal risk

Legal Department

Human resources risk

Global Talent Planning andManagement Department

Tangible asset risk

Facility Management Department

Regulatory change risk

Strategic Planning Department

Reputational risk

Corporate Communications
Department

Set risk management policies
Give instructions and approval concerning risk management

MHBK

MHTB

Risk Management Department

Market risk/Liquidity risk

Operational risk

President & Group CEO(Risk Management Committee, etc.)

Credit risk

Report the risk management situation
Submit applications concerning risk management

MHSC

Mizuho Americas

Other core group companies

Supervision/Audit

MHBKManagement
Departments responsible for risk management

77

Mizuho Financial Group

Reputational risk

Regulatory change
risk

Tangible asset risk

Human resources
risk

Legal risk

Operations risk

Information
technology risk

Operational risk

Liquidity risk

Market risk/

Credit risk

Comprehensive risks

MHTB

Foundations for Our Corporate Value Risk Management

At MHFG, the Risk Management Committee chaired by theGroup CRO provides integrated monitoring and management of theoverall risk for the group. The Group CRO reports the risk
management situation to the Board of Directors, etc. MHFG receives
reports and applications concerning the risk management situationfrom our core group companies and gives them appropriate
instructions concerning risk management.

Our core group companies each maintains its systems for
managing various types of risk, receiving reports on the status of risk
at their respective subsidiaries, and gives them appropriate
instructions concerning risk management.

General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk,
including credit risk, market risk, liquidity risk, and operational risk,
and manage them.
In addition to managing each type of risk individually, we haveestablished a risk management structure to identify and evaluate
overall risk and, to keep risk within limits that are manageriallyacceptable.
Risk Category

In line with the basic policies relating to overall risk management
laid down by MHFG, companies within the group identify risk broadly
and take a proactive and sophisticated approach to risk management,
including methodologies for operations that involve exposures tomultiple categories of risk such as settlement and trust businesses.

Definition

Credit risk

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

Market risk

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

Liquidity risk

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

Operational risk

The risk of losses that the group may incur resulting from inadequate or failed internal processes, people andsystems, or from external events. Operational risk consists of several components such as information technology
risk, operations risk, etc.
Refer to page 121 of Risk Management Structure in the Appendix for specific components of operational risk.

Risk Capital Allocation
We endeavor to obtain a clear grasp of the group’s overall risk
exposure and have implemented measures to keep such risks
within the group’s financial base in accordance with the risk capital
allocation framework.
More specifically, we allocate risk capital to our core groupcompanies, to control risk within the limits set for each company. We
also control risk within managerially acceptable limits by working toensure that the overall risk on a consolidated basis does not exceed
financial strength. To ensure the ongoing financial health of the group,

we regularly monitor the manner in which risk capital is being used inorder to obtain a proper grasp of the risk profile within this framework.
Reports are also submitted to the Board of Directors and othercommittees of each company. Risk capital is allocated to MHBK,MHTB, MHSC, and Mizuho Americas by risk category, and is further
allocated within their respective business units.

2017 Integrated Report78Foundations for Our Corporate Value

Compliance

Compliance
As the leading Japanese financial services group with a global presence and a broad customer base, we
remain conscious of the importance of our social responsibilities and public mission at all times. We definecompliance as “the strict observance of all laws and regulations and the pursuit of fair and honest corporate
activities that conform to the norms accepted by society” and view ongoing compliance as one of the basic
principles of sound business management. Each of our group companies maintains its own compliancestructure in line with the basic policies established by MHFG.

Compliance Structure

See the following website forcontact information to make areport.

https://www.mizuho-fg.com/
company/internal/compliance/■ Compliance Structure
MHFG
Supervision/
Audit

MHFG has established a hotline
within an external law office toreceive reports from inside andoutside the company in connection
with problems concerning internal
controls and audits of accounts andfinancial reports.

The President & CEO of MHFG, MHBK, MHTB, and
MHSC each generally oversees compliance mattersof the respective company, and important mattersconcerning compliance are discussed at theCompliance Committees chaired by the President &CEO, etc.
The four companies also have individual compliancedepartments under a Chief Compliance Officer.
These departments are responsible for complianceplanning and implementation and control overall
compliance management at the respective
companies. At each organizational unit (such as
branches and departments) at the four companies,
the head of the unit is responsible for guidance andimplementation related to compliance matters, andcompliance officer or compliance administrator ateach unit reviews the status of compliance.
MHFG monitors the status of compliance of thegroup through reports submitted by our core groupcompanies and adopts appropriate responses
when necessary. Compliance at subsidiaries of ourcore group companies is monitored and managed
by their respective parent.

Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: President & Group CEO)ManagementInternal Controls and Audit
Hotline for Accounting or
Auditing Matters

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

Every organizational unit
Head of each unit

Compliance officer/compliance administrator

MHBK, MHTB, MHSC, and other core group companies

Subsidiaries of the above group companies

Compliance Activities
We have established the Mizuho Code of
Conduct, which sets forth clear and concrete
standards of ethical behavior, and distributed it
to all managements and employees of the group.
Furthermore, each of our group companies has
also prepared a compliance manual, which serves
as a practical guidebook for rigorous compliance
enforcement and clarifies the laws and regulations
that we must observe in pursuing our businessactivities and the compliance activities required
to follow. Each group company also conducts
compliance training for managements and79

Mizuho Financial Group

employees so that they are fully acquainted with thecontents of the compliance manual.
We monitor the status of compliance levels
through self-assessments by each department
and monitoring conducted by the compliancedepartment of each company. In addition, every
fiscal year, each of our group companies establishes
a compliance program, which contains concretemeasures for compliance enforcement such as
management of the compliance framework, training,
and assessments. Progress of the complianceprogram is monitored every six months.

Foundations for Our Corporate Value Compliance

Efforts to Prevent Money Laundering, etc.
In response to an increase in international demands for anti-money
laundering and countering terrorist financing in recent years, the group
has made the prevention of money laundering and terrorist financing
a top management priority, and implements measures based oncommon policies throughout the group. We take various measures on

a global basis, such as performing customer due diligence/Know Your
Customer (KYC) practices when establishing business relationships
with customers, preventing transactions with subjects to asset freeze
such as terrorists, and using monitoring systems, etc. to detect andreport suspicious transactions.

Severing Transactions with Anti-social Elements
In order to prevent anti-social elements from influencing corporate
management and to avoid any harm caused by them, MHFG
established the Mizuho Code of Conduct which sets out a policy tosever any ties with anti-social elements that threaten the rule of law,
public order, and safety.
MHFG, MHBK, MHTB, and MHSC have each established an
Anti-Social Elements Elimination Committee (chaired by the President& CEO, etc.), and take actions to sever relations with anti-social
elements through group-wide cooperation.

Measures for Further ComplianceFurthermore, core group companies maintain centralized
departments or appoint an officer to manage anti-social element
issues and make efforts to maintain effective frameworks, forexample, by establishing a manual on how to manage such issues
and conducting training sessions. If required for specific cases, weconsult with third-party experts and authorities to handle the cases.

Main training themes
Fiduciary duties

The group places education and training for compliance asimportant measures for thoroughgoing compliance.
During fiscal 2016, Mizuho provided effective training to abroad range of employees, from management to staff levels. Those
include conducting compliance training sessions for all employees;
position-specific training for executive officers, general managers,
deputy general managers, compliance officers, and others; andtraining sessions utilizing e-learning on various compliance themesthat were conducted 13 times.
In addition, for executive officers, staff of the ComplianceGroup, and other positions that require particularly high levels ofknowledge, we provide more extensive training sessions, including
sessions taught by outside experts on themes related to changes inthe economic and social environment.

Management of customer information (firewall rules, etc.)
Severing relations with anti-social elements
Recent corporate scandals
The group works to ensure full compliance through training andother programs, but detecting information related to complianceand taking appropriate action are also important issues. Whenthe group becomes aware of compliance issues, the compliancemanual requires that such matters be reported immediately todepartment and branch managers, and consultations are held.
Furthermore, we have established a hotline that links to theCompliance Department, an external law office, and a professional
service company, for direct reporting by employees.
For issues concerning internal controls and audits of accounts
and financial reports, we have also established a hotline within an
external law office to receive reports from inside and outside thecompany.

Mizuho’s Internal Reporting Systems (Compliance Hotline)
MHFG has established an internal reporting system, and is working to increase its effectiveness by establishing group-wide reporting
channels outside the workplace that are available in the evenings, on Saturdays and Sundays, and makes such services available in foreign
languages. We are also working to make employees of each group company fully acquainted with these systems by hanging posters anddistributing pocket cards with contact points indicated to all employees. Of note, MHFG and its core group companies received a total of
157 reports from a hotline both inside and outside the group in fiscal 2016, with the response status reported to MHFG’s Audit Committee.

Internal Controls and Audit Hotline
MHFG has established a hotline within an external law office to receive reports from inside and outside the company in connection with problems concerning accounts
and financial reports.

2017 Integrated Report80Foundations for Our Corporate Value

ComplianceManagement of Customer Protection
We give first priority to our customers, and, based on the policy that earning the trust of our customers is the basis for ensuring soundmanagement and earning the trust of other stakeholders, we will continuously verify and improve 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.

Management of Customer Protection Structure

The President & Group CEO of MHFG generally oversees
management of customer protection, and also heads the Compliance
Committee in which related important matters are discussed. The
division responsible for each customer management also provides
centralized monitoring and customer protection management
activities at the core group companies. The core group companies
manage customer protection management at their own groupcompanies.

81

Supervision/
Audit

1. Ensuring the adequacy and sufficiency of the explanation oftransactions, products, etc. as well as the provision of information(explanation of products, etc.) to customers.
2. Ensuring the adequacy and sufficiency of handling customer
consultations and complaints, etc. (customer service).
3. Ensuring the adequacy of the management of customer information(management of customer information).
4. Ensuring the adequacy of managing customers and handlingof customer information in the event that group operations areoutsourced (management of outsourcing).
5. Ensuring the adequacy of the management of the measures tobe taken in order to appropriately address various situations ofconflicts of interest that have stemmed from transactions withcustomers (management of conflicts of interest)

MHFG
Board of Directors

Audit Committee

President & Group CEO

Executive Management
Committee
Compliance Committee(Chairman: President & Group CEO)Management

At Mizuho, management of customer protection refers to the
management required for achieving the following from the perspectiveof improving the protection of our customers and improving customer
convenience.

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

Division(s) in charge

Management of customer information

Explanation of productsManagement of outsourcing

Management of customer service

Management of conflicts of interest

MHBK, MHTB, MHSC, and other core group companies
Subsidiaries of the above group companies

Information Management

Management of Customer Service

Accompanying progress in IT, the usage of information has increased
substantially, but, on the other hand, cyberattacks have risen in
number. This has led to closer scrutiny of the protection of personal
information from a social standpoint. Mizuho, which provides global
comprehensive financial services, is aware information managementthat aims to appropriately protect and use information assets is of
the highest importance. In our group, we clarify our management
systems for information assets, security management measuresand information administration methods. Also, we train and raise
the level of awareness of each and every employee regarding theproper protection of information assets, and work to strengthen our
information management systems.

Our group, which has transactions with a wide range of customers,
ensures to respond appropriately to customer complaints andcontinues to work toward protecting and increasing convenience forour customers.
Regarding complaints, we also ensure to respond quickly andpolitely and always require appropriate reports on such matters.
Furthermore, we regard customer feedbacks as importantmanagement assets and work continuously to improve our operations
and prevent recurrences of issues to increase customer satisfaction.

Mizuho Financial Group

Our initiatives toward management of customer protection
https://www.mizuho-fg.com/company/internal/customer/Foundations for Our Corporate Value

Fiduciary Duties** Fiduciary duties is a general term for the broad range ofvarious roles and responsibilities that fiduciaries are expected
to fulfill when engaging in certain business activities in order tolive up to the trust that is placed in them by their customers.

Mizuho, under Mizuho’s Corporate Identity, has established a common set of central values – called the Mizuho Values – starting with putting
our customers first, and these values are shared by all its management and employees. As a team of finance professionals providing a broad
range of financial services, we are committed to providing the best, most appropriate solutions in response to our customers’ diverse needs.
As a long-term partner in providing appropriate products and services that are in our customers’ best interests, and in seeking tocontinue to be our customers’ most trusted financial services group in respect to our asset management–related business, Mizuho has
established and announced Policies Regarding Mizuho’s Fiduciary Duty as its group-wide policy. In addition, in the holding company andgroup companies in charge of performing various functions, we have established and made public specific action plans that will put into
practice measures formulated from our customers’ perspective.

Major Group Companies that Have Established and Disclosed Action Plans
Functions
Sales

Asset Management and Product Development

Asset Administration

MHBK
MHTB
MHSC
Asset Management One
TCSB*Please refer to the respective websites of each company for details.

Strengthening Fiduciary Duty Related Structure
From the standpoint of further implementing customer–oriented
business operations, Mizuho established the Fiduciary Duty Advisory
Committee to discuss revising and enhancement of the policies.
MHFG’s President & CEO chairs the Fiduciary Duty Advisory
Committee and its members include external academics andspecialists as advisors, to obtain opinions and advice from the outsideand exchange views.

In addition, MHFG and its group companies each developed
Fiduciary Duty Promotion Office as a specialized organization topromote fiduciary duties. For the purpose of thorough implementationof customer-oriented operation, the offices revise group-wide policies
and action plans.

Specific Initiatives
With the aim of maintaining a high-quality lineup of products, MHBK,MHTB, and MHSC have clarified their criteria for selecting asset
management companies, insurance companies, and other relatedcompanies as well as their criteria for improving and abolishingexisting products when introducing new products.
Along with this, Mizuho has defined its sales commissions
and renewal commissions as payments for consulting, provision of
information, and related handling costs. Based on this definition, we have
newly introduced and disclosed our fee structure related to insurance.

We are also taking initiatives to further increase our capabilities
for product proposal and explanation methods. These include
incorporating systems for automatically judging customers’
compatibility in the tablet computers of RMs, thereby, establishinga structure for more accurate understanding of customers’ risk
tolerance and other factors. Similarly, we have also introduced toolsthat can narrow down the choice of possible investment products
based on customers’ needs.

2017 Integrated Report82Foundations for Our Corporate Value

IT Strategy

IT systems are crucial elements of financial institutions’ management and business strategies, and highquality IT strategies are key means of differentiating an institution from its competitors and establishingsuperior competitiveness.
Mizuho will aim for strong IT systems that are efficient and stable and will support its One MIZUHOStrategy. We will continue to develop IT systems that will also mobilize the group’s comprehensive
capabilities to establish superior competitiveness, meet customer needs, and give a solid response toprogress in IT, tighter financial regulations, and other trends, while also providing global IT services in
an integrated manner among banking, trust banking, and securities functions. To do this, we are taking
initiatives in structural reforms of our systems and promoting group-wide data management and cybersecurity, as we also continue to strengthen IT governance.

System Structural Reform Selected as Competitive IT
Strategy Company 2017 (for thesecond consecutive year)

To respond to the needs of our customers andsociety as a whole, which are becoming increasingly
sophisticated year by year, we are taking initiatives
in making both system structural reform and IT
operation process reforms to “make IT systems fastand inexpensive” and “keep it efficient.” Responding
to customer service and business needs, weare making structural improvements that include

developing common systems and strategic rebuilding
as well as sophistication of infrastructure using the
Cloud, and developing the next-generation IT system
as the compilation of these initiatives. In addition, weare drawing on the latest digital technologies andmoving forward with IT business process reforms to
improve productivity in development and enhancethe efficiency of operations and administration.

Efforts to System Structural Reform
Apr. 2002Merger of threebanks

Apr. 2010 toMar. 2013

Dec. 2004
Integration ofsystems

Apr. 2013-

Mizuho’s Transformation
ProgramThorough system risk management/
system quality management for
stable system operation

Apr. 2016-

Previous medium-termbusiness plan

Current medium-termbusiness plan

One System

Improvement of system risk assessment
Improvement of response capabilities to cyberattacks

Further improvesystem security andUpgrade services and functions
Common infrastructure
Cost reduction

Improvefunctions

One Bank
project

Strategic
rebuilding

stability
Renewal of IT legacy
systems

Next-generation IT systems
Introduce hub &spoke system

Rebuild peripheral
IT systems instagesIntroduce common IT
business platform

Offer innovative

Enhance infrastructure
Private cloud

financial services
Public cloudHybrid cloud

Improve productivity in IT development High-speed development tools, etc.
RPA¹, AI, etc.

Responding to financial
innovation
API², etc.

1. Robotic Process Automation
2. Application Programming Interface

83

Mizuho Financial Group

Increasing efficiencyof IT operations
RPA, etc.

Use of digitaltechnology

Strengthen
cost competitivenessFoundations for Our Corporate Value IT Strategy

External organization

Integrated SOC

Forensics

Gather information/implement
countermeasures/investigate

Rescue/support

Multilayer defense systems

Monitor/respond! Attacker

Targeted cyberattack
Website alteration
DDoS attack
Hacking
Illegal money transfer

Protect

At Mizuho, to enable customers to make use of financial services
feeling secured and contribute to stable operation and sustainable
development of the financial infrastructure, we have positioned copingwith cyberattacks as a top priority management issue. With MizuhoCIRT¹ taking the lead, we have assigned high-level professionals andare drawing on intelligence and cutting-edge technology developedin collaboration with external specialist organizations, while we arealso taking initiatives to strengthen our strategic resilience capabilities.
These include monitoring via integrated SOC², analyzing computerviruses, developing multilayer defense systems, and other measures.

Mizuho-CIRT

Collaborate

Cyber Security

Assets/services to be protected

Information assets
Customer information

1. Cyber Incident Response Team
2. Security Operation Center

Data Management

Collaboration

As data management for data collection and analysis to be used inmanagement and business becomes more important to respondto global financial regulations and sophistication of MIS³, we have
prepared a database to centralize management of collected andanalyzed data relating to risks and profits, etc. In addition, with theaim of using big data for more sophisticated marketing, we arepromoting the development of a data analysis platform that canprocess large volumes of data at high speeds.

Mizuho’s customers

SNSInternet

BranchInternetbankingBank,
trust bank,securities

WebsiteCreditcard

3. Management Information System

Bank

Trust bankSecurities

Accounting systems
ATM

Treasury systems
Information systems

Call center

Data analysis platform

Management information database

Marketing data

Risk/profit data

Improve marketing using big
data

Appropriately respond to global
financial regulations

Upgrade management
dashboard/MIS

Transition to Next-generation IT Systems

Cutting-edge next-generation core banking systems• Strengthen infrastructure for providing services• Improve operations processing speed

Former MHCB banking systems

MHTB
Banking systems

Channel systems

Former MHBK banking systems

Independent components by business and function• Improve flexibility through a simplified structure• Enable flexible adaptation to new services• Shorten the lead time and reduce costs for new
development

Outline of the next-generation IT systems

MHBK

Accounting
systems• Downsize and streamline the IT systems• Improve response to potential system failures

Existing systems

Information
systems

Unification of Core Banking Systems of former
MHBK, former MHCB, and MHTB

Unification of the IT systems

Next-Generation IT Systems Ahead of Other Banks

Regarding the next-generation IT systems, the highest priority is placed on ensuring quality and safe launching. Preparation will be carefully conducted
after checking the system quality as it is critical to ensure safe and steady transition. The system migration will be implemented gradually, after thoroughrehearsals. In the next-generation IT systems, as a result of unification of Mizuho’s current three core banking systems, we will downsize and streamline
our IT systems. Also, developing independent components by business and function will enable flexible adaption to new services and shorten the leadtime and reduce costs for new development. By structuring cutting-edge core banking systems, we will strengthen infrastructure for providing services
to our customers and improve operations processing speed.

Internet banking, etc.

Externally connected
systems, etc.

Internal terminals

Common business platform (since FY2013)
Component
Deposit

Domesticexchange

Loan

ForeignexchangeTrustbusiness…

Core information systems

2017 Integrated Report84Foundations for Our Corporate Value

Embed a Corporate Culture that Encourages the Active Participation of Our Workforce

Encouraging the Active Participation of Our Workforce
In order to realize the tenets of Mizuho’s Corporate Identity, Mizuho has established an HR Vision to encourage all employees to takeinitiative and develop themselves.
HR Vision
Mizuho Financial Group firmly believes that the personal development of individual employees contributes to the stable andsustainable growth of Mizuho as a whole.
Mizuho recognizes those employees who make an effort to put the Mizuho Values into practice and helps employees to create a more
fulfilling life through their work.
Mizuho encourages employees to utilize their strengths, and provides opportunities for them to use their skills and to develop their abilities.
Mizuho encourages employees who differ in terms of gender, country of origin, cultural background, and values to understand,respect, and inspire each other.
Mizuho works with its employees to create a corporate culture that encourages people to be passionate about and to take pride in
their work.
One of the basic policies in our medium-term business plan is to “embed a corporate culture that encourages the active participation of ourworkforce to support a stronger Mizuho.” With this in mind, in fiscal 2016 we worked towards achieving a competitive advantage for Mizuho
in terms of our workforce by establishing “Mizuho’s HR Policy” and moving forward with fundamental reforms in HR management.

Fundamental Reforms in HR Management
In order to implement Mizuho’s new financial services consulting
group business model, we need to move away from the outdated
practices and unwritten rules which hinder the effectiveness of our HR
strategies (for example, a “one-size-fits-all” style of HR management
and promotions based on number of years at the company
rather than ability and potential). It is essential that we encourage
employees to take on challenges proactively without fearing failure,
to reach their full potential, and to remain highly motivated. Eachof the key strategies for implementing the fundamental reforms in
HR management are aimed at enabling us to continually enhance
employee engagement, ensuring that all employees can achieve
continual growth, reach their full potential, and enjoy long and fulfilling
careers at Mizuho.
In order to clearly communicate to all employees and executive
officers the principles that will be applied to Mizuho’s HR strategies,
HR systems, and HR management, we established “Mizuho’s HR
Policy.” Additionally, we released a “Diversity and Inclusion Statement”
to affirm our commitment to promoting the professional growth andactive participation of our diverse workforce. In order to ensure a highlevel of transparency and accountability in our HR practices, we also
made both of these documents publically available.

Key Strategies for Implementing Fundamental Reforms in
HR Management
1. HR management that respects employees’ individuality
Development-focused HR management aimed at enhancing
	
employees’ strengths Multi-track HR management that
responds to the career goals of a diverse workforce
Promoting the health and wellbeing of employees and	maintaining a healthy work environment
2. Strategic employee rotation
3. Development of future executive leaders
4. Globalization of Mizuho’s talent and HR management
5. Promotion of diversity and inclusion

Mizuho’s HR Strategies and Employee Satisfaction
Employee satisfaction*

Voluntary employee turnover rate (%)

Mizuho’s HR strategies

Revisions to the HR Vision
3.82

Revisions to the HR system
Fundamental reforms in(flexible work arrangements and expanded
HR management
support for employees who are caregivers)
3.73

3.67
3.03
3.45

3.46

FY2012FY2013

3.59 3.11

FY2014*Average response on a scale from 1 to 5 in the category of “satisfaction with the company” on the annual Staff Survey.

85

Mizuho Financial Group3.02

FY20152.83

FY2016

Foundations for Our Corporate Value Embed a Corporate Culture that Encourages the Active Participation of Our Workforce

Primary Initiatives in Fiscal 2016
In addition to promoting our key strategies, we madesure to have direct dialogue with all employees about
the background and rationale behind the fundamental

reforms in HR management in order to ensure thateveryone had an opportunity to learn about thechanges.

ransition to development-focused HR· Tmanagement
multi-track HR management· Expandntroduction of the Mizuho Executive Leader· IDevelopment
Program (ELP)
roactively promote employees hired outside of· PJapan
to management positions

romote globalization by providing more
· Popportunities
for Japanese employees to gaininternational experience

ccelerate the promotion of female employees to· Amanagement
positionsransform work-life balance management (flexible· Tworkarrangements)

HR Management that Respects Employees' IndividualityC areer design seminars (FY2016)
	Number of seminar participants

We will transition to a more development-focused HR
management which focuses on the inherent qualitiesof each individual and develops their strengths byencouraging them to proactively take on challenges.
We will seek to bring out each diverse
individual’s potential through work experience

which is beneficial based on their inherent qualities,
evaluating employees based on the growth in theirabilities (including learning from their mistakes), andensuring that employees have opportunities for
dialogue with their supervisors regarding their career
path and that they receive sufficient feedback.

Strategic Employee Rotation

65,824 hours(+26,824 year-on-year)

In-house company/unit/group company

Group-wide strategic employee
rotation across in-housecompany/unit/group company

In-house company/unit/group company

A career design seminar

Overview of Mizuho’s Executive Leader Development Program
MHFG
MHBK
MHTB

1st cycle

2nd cycle

3rd cycle

Deputy general manager and joint General manager
general manager level
level

Stretch job assignments

MHSC
Asset Management
One

Leadership training programs
Assessment & feedback

MHRI
MHIR

Employees aroundthe world

Coaching by external specialists
The candidate pool is not fixed. Candidates may be replaced or added based on
periodical assessment.

2017 Integrated Report

Next generation of executive leadershipHigh potential employees will be identified and selectedfrom a diverse pool of candidates on a group-wide andglobal basis, and their leadership capabilities will be
strategically developed through the Executive Leader
Development Program. This program seeks to cultivate:1) leaders befitting of a top class financial group—highly
motivated with a strong mental stance, capable ofuniting the entire organization to drive change; 2) leaders
who can define and articulate Mizuho’s future vision anddirection, corporate identity, and fundamental executive
policies; and 3) leaders who can also drive inorganic
growth and change, without being bound by precedent
and who do not give up when faced with a variety ofdifficulties or crises, but instead tackle them head-on
and mitigate risk and damage to the organization.
The program seeks to cultivate the next generationof Mizuho’s executive leadership through a four-pronged
approach: 1) stretch job assignments where participants
gain experience in strategically important or challenging
posts; 2) leadership training programs (developed by
Mizuho in collaboration with global business schools;
some of the programs are entirely in English) whichseek to develop participants’ “ability to initiate,” “ability
to achieve,” and “integrity”; 3) feedback provided to theparticipant; and 4) coaching by external specialists.

	Number of hours participants
spent in attendance

Strategic Employee Rotation
Development-focused HR management

Development of Future Executive Leaders(+2,396 year-on-year)

Employees carrying out ourbusiness strategies

Through employee rotations across in-housecompanies, units, and other organizational borders
within the group we will develop employees
strategically in line with both their individual career
aspirations and our strategies for each business field.

4,952 participants

86Foundations for Our Corporate Value

Embed a Corporate Culture that Encourages the Active Participation of Our Workforce

Diversity and Inclusion

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

Mizuho received Semi-Nadeshiko
Brand designation for fiscal 2016,conferred jointly by the Tokyo Stock
Exchange and Japan’s Ministry of
Economy, Trade and Industry.

Mizuho was recognized on the2017 Bloomberg Financial Services
Gender-Equality Index.

We aim to proactively incorporate the ideas andopinions of our diverse workforce into our everyday
work, strategic planning, and decision-making inorder to create new value and innovations. We arecommitted to valuing the voices of women, nonJapanese nationals, individuals with disabilities,
individuals who identify as LGBT, employees whoare balancing childcare or aging family member carewith their work, and other diverse groups. We arepromoting diversity and inclusion in order to ensurethat each employee can feel motivated and proud

to be working at Mizuho and enjoy long and fulfilling
careers.
In order to better support women’s careeradvancement, we are strengthening and expanding
our strategic development programs and aresupporting the activities of the Mizuho Women’s
Initiatives Network (M-WIN), a global, employee-led
network. In doing so we aim to promote the active
participation of women in the workplace and theircontribution to the creation of new value.

 ransforming Work-life Balance Management (Flexible Work Arrangements) and Promoting
T
Employee Health and Wellbeing
In order to provide employees with more diverse
responsibilities in order to support colleagues who
and flexible work arrangements and impose fewer
are balancing childcare or aging family member
limitations on their working hours and location,
care with their work. These efforts, coupled with
we will continue to expand our telecommuting
initiatives for promoting employee health andsystem and other available options. We are also
wellbeing, are aimed at creating a comfortable work
aiming to transform employee mindsets throughenvironment for all employees and enabling theminitiatives such as setting a target for 100% of
to enjoy long careers at Mizuho, while having theeligible male employees to take childcare leave andadditional benefit of making the workplace moreacknowledging employees who take on additional
productive.

Globalization of Mizuho’s Talent and HR Management

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

Mizuho’s business strategies are increasingly
global in nature and therefore we are focused on
developing global talent and ensuring the right
person is in the right position on a global basis bystandardizing HR management for all employees
regardless of which country they were hired in.
Numerical Targets (MHFG, MHBK, MHTB, and MHSC)
Area
Outside Japan(MHBK)

Mizuho recognized under the 2017
Certified Health & Productivity
Management Organization Recognition Program (Large Enterprise
Category).

87

Mizuho Financial GroupIn particular we are aiming to accelerate thedevelopment and promotion to management rolesof employees hired outside Japan as well as provide
more opportunities for Japanese employees to gaininternational experience.

Japan (total forthe above noted 4companies)

Percentage of management positions filled by
employees hired outside Japan
Percentage of management positions filled by women
General manager
equivalent
Percentage ofManager equivalent andmanagement positions
above
filled by womenSupervisor equivalent
and above
Percentage of new graduates hired for management
track jobs who are female
Percentage of paid annual leave taken by employees
Percentage of eligible male employees who takechildcare leave
Percentage of employees who are individuals withdisabilities

Numerical target

To beachieved byCurrent (as of last year)50%

41%(33%)10%

8%(7%)

10%

July 2019

4%(3%)

20%

12%(10%)30%

24%(22%)

Projection for July
2017

30%

FY2019 intake

33%(34%)FY2017 intake

70%

FY201868%(64%)FY2016100%

FY201823%(1.5%)

FY2016

2.3%

June 20192.1%(2.2%)

March 2017

Foundations for Our Corporate Value Embed a Corporate Culture that Encourages the Active Participation of Our Workforce

Embedding a Corporate Culture
One of the 10 Basic Strategies set in Mizuho’s medium-term business plan is continued initiatives toward embedding a corporate culture to
support the creation of a stronger organization.

Basic Approach
Corporate Philosophy

Mizuho’s Corporate Identity

Mizuho is moving forward with the establishment of a strong corporate
culture that is indispensable for building a strong organization to realize
its aim of being a financial services consulting group.
Corporate cultures are nurtured and established through theactions of each and every employee based on their awareness of theMizuho Values. With the One MIZUHO Promotion Project Team taking
the lead, we are working to encourage the penetration and sharing of
the Mizuho’s Corporate Identity and our medium-term business planamong all management and staff of our group and are promoting
initiatives to support the efforts of all employees in putting the Mizuho
Values into practice. Specific activities include “strengthening our
initiatives at the departmental and branch levels aimed at having eachand every employee put the Mizuho Values into practice” and “further
promoting internal communication.”

Mizuho’s fundamental approachto business activities, based on
the raison d’etre of Mizuho

VisionMizuho’s vision for the future,
realized through the practiceof Corporate Philosophy

Values
The shared values and principles of Mizuho’s people, uniting
all executives and employees
together to pursue “Vision”

Common culture throughout the group

Strengthening Our Initiatives to Encourage All
Employees to Put the Mizuho Values into Practice
Visions of Individual Offices
Each office formulates a “officevision” containing that office’s
aims, and the staff members ofeach office strive to realize theirrespective visions. Furthermore,each office organizes the One
MIZUHO Day meetings todeliberate about the initiatives thatshould be implemented.

 eneral Managers’ Off-siteG
Meetings
We hold General Managers’ Offsite Meetings for the generalmanagers of our domestic andoverseas offices who are supposed
to provide a driving force forestablishing our corporate culture.
At these meetings, the generalmanagers hold discussions
regarding their own action plansand other matters aimed at
establishing our corporate culture.

Continuing Measures to Promote Internal Communication
Culture Prizes
For employees who are putting theMizuho Values into practice at a very
high level and deserve to be recognized
as role models for all employees, theGroup CEO presents awards andcongratulates those outstanding
employees. Their exemplary behavior
and good examples are shared widely
throughout the group. In fiscal 2016,75 employees were selected to receive
these special awards.

Arigato (Thank You) Cards
These cards, which can be used ontablet computers and smartphones,
have been created as a tool for
employees to praise one another.
These messages serve to increaseinterest in ways that fellow
employees work, help to improve
communication, and nurture mutual
trust.
2017 Integrated Report88Foundations for Our Corporate Value

Stakeholder Communication

Having articulated its fundamental ethical posture toward its stakeholders in the Mizuho Code of Conduct, Mizuho proactively undertakes
communication activities and strives to ensure that its corporate activities are in harmony with common sense as well as being fair andtransparent.

Mizuho’s Stakeholder
Dialogue at branches andthrough our sales staffCustomer feedback cards
Call centers
General meeting of shareholders,brochure entitled Report to Our
Shareholders
Investor briefings, IR contact
website page
Dissemination of information throughwebsites and disclosure materials
PR activities
Responding to socially responsible
investment surveys, etc.

PR activities
WebsiteQuestionnaires for customers
and customer satisfaction
surveysP79,90Appropriate responses tosupervisory authorities
Activities through industry
groupsPublic-private partnershipinitiatives
Policy recommendations

Customers

P17

Government
authorities

Shareholders

MizuhoP85
Education and trainingIn-house communication activities
Employee opinion surveys
Labor-management consultations
Arrangement for responding toconsultations and complaints

Suppliers/
Competitors

Employees

Regional/Local
communities

P29
Social contribution activities
Support for financial educationS takeholder dialoguePR activities

89

Mizuho Financial Group

P90
Purchasing activities andoutsourcing contracts based on
the Mizuho Code of Conduct
as well as on complianceregulations, etc.
Coordination and cooperationin business activities
Cooperation through industry
groups and diverse initiatives

Foundations for Our Corporate Value Stakeholder Communication

Case Example 1: Communication with Customers
Initiatives to Improve Customer Satisfaction (CS)In order to become the best financial services provider, Mizuho strives to continuously provide the bestsuited leading-edge financial services to each of its customers and the economies and societies it serves by
anticipating economic and social changes promptly from the global perspective.
Adopting the customer first principle, Mizuho also works to build a trust relationship in the medium tolong term, with an awareness that every action by every employee has a bearing on the satisfaction and trustof its customers.
Initiatives to Improve Customer Satisfaction (CS)https://www.mizuho-fg.com/csr/customer/cs.html

Main Achievements in Fiscal 2016’s Efforts to Be the Best Financial Services Provider
No. 1 in Retail Banking Survey on Product Offering Adequacy by Nikkei Veritas for three consecutive
yearsReceived an MCPC 2016 Special Award (for mobile services using Fintech)
No. 1 analyst ranking for four consecutive years in research by both Nikkei Veritas and Institutional
Investor

Received Special Award (Kizuna Award) in the Third Service Hospitality Awards (Fiscal 2016)
Mizuho received the special service hospitality award, also known as “Kizuna Award” from theJapan Institute of Information Technology. This award recognized Mizuho’s unified head office
and frontline efforts to be the best financial services provider, while deepening group ties as One
MIZUHO and having each employee act to achieve customer satisfaction.

Received the special service
hospitality award
Award theme
Striving to be the best financial
services provider

Case Example 2: Participation in Initiatives
Mizuho, given its global perspective and role as a financial institution, participates in global initiatives toadvance activities for the formation of a sustainable society.
United Nations Global
Compact
Ten principles addressing matters likehuman rights, labor,
the environment,
and anti-corruption

UNEP Finance Initiative (UNEP FI)
International partnershipof financial institutions
concerning sustainable
practices in the various
operations in which financial
institutions are involved

Principles for Financial Action for the
21st Century
Initiatives by financial
institutions in Japan for
financial action toward asustainable society

UN’s Principles for Responsible Investment (PRI)

Equator Principles

Montréal Carbon Pledge

Principles which ensure environmental,social, and corporate governance issues
are incorporated into the decision-making
processes of investment

Financial industry standards for
identifying, assessing, and managing
environmental and social risks in largescale project-related financings

Initiatives by institutional investors formeasuring and disclosing the greenhousegas emissions of the equities portfolio they
manageCarbon Disclosure Project (CDP) (climate change / water)

Cross-sector Biodiversity Initiative

Project via which institutional investors
ask companies to disclose theirstrategies concerning climate change
and water as well as their greenhousegas emission volumes, etc.

Initiatives to discuss response
measures to cope with thebiodiversity impact of large-scale
development projects

2017 Integrated Report90Financial Review

Six-year Major Financial Data (FY2011-2016)

Summary of Consolidated Performance(JPY billions)
FY2011FY2012FY2013

FY2014FY2015FY2016

Consolidated Gross Profits

2,003.0

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

Net Interest Income

1,088.3

1,075.8

1,108.3

1,129.4

1,003.6

867.8

Fiduciary Income

49.0

48.5

52.0

52.6

53.4

50.6

Credit Costs for Trust Accounts

—

—

—

—

—

—

Net Fee and Commission Income

458.9

507.3

560.7

593.3

607.5

603.5

Net Trading Income

150.3

215.0

187.4

262.9

310.5

325.3

Net Other Operating Income

256.4

324.8

126.7

209.3

246.4

245.4

General and Administrative Expenses(1,283.8)(1,244.6)(1,258.2)(1,351.6)(1,349.5)(1,467.2)

Consolidated Net Business Profits*

719.1

912.1

744.2

876.9

852.8

663.4

Credit-related Costs

27.7(111.8)

112.8

(4.6)

(30.4)(47.5)

Aggregate Figures for the 2 Banks

24.7(114.1)

116.6

(7.8)

(26.7)(49.3)Net Gains (Losses) related to Stocks(38.1)(82.9)

77.0

131.9

205.6

242.1
261.1

Net Gains (Losses) on Sales of Stocks

15.6

46.6

81.5

143.7

225.3

Losses on Impairment (Devaluation) of Stocks(49.3)(125.8)

(5.3)

(5.3)

(10.3)(4.8)

2.6(11.1)

15.4

15.0

24.2

18.8

Equity in Income from Investment in Affiliates
Other(62.9)

29.2

5.1(27.5)(74.0)(101.5)

Ordinary Profits

648.5

750.3

987.5

1,010.8

997.5

737.5

Net Extraordinary Gains (Losses)

67.8(32.5)(2.2)(20.2)

10.7

46.6

Income Taxes – Current(55.3)(50.4)(137.0)(260.2)(213.2)(196.5)– Deferred
Profit(97.4)(7.4)(77.9)(44.7)(69.2)

58.8

563.6

659.9

770.3

685.6

725.7

646.4

Profit Attributable to Non-controlling Interests(79.1)(99.4)(81.9)(73.7)(54.7)(42.9)

Profit Attributable to Owners of Parent

484.5

560.5

688.4

611.9

670.9

603.5

* Consolidated Gross Profits – G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

Summary of Consolidated Balance Sheet

Assets(JPY billions)
FY2011FY2012FY2013

FY2014FY2015FY2016

165,360.5

177,411.0

175,822.8

189,684.7

193,458.5

200,508.6

Loans and Bills Discounted

63,800.5

67,536.8

69,301.4

73,415.1

73,708.8

78,337.7

Securities

51,392.8

53,472.3

43,997.5

43,278.7

39,505.9

32,353.1

Liabilities

158,491.2

169,674.8

167,518.3

179,884.2

184,105.3

191,235.2

Deposits

78,811.9

84,241.9

89,055.5

97,757.5

105,629.0

120,045.2

Negotiable Certificates of Deposit

11,824.7

15,326.7

12,755.7

15,694.9

11,827.5

10,631.2

6,869.2

7,736.2

8,304.5

9,800.5

9,353.2

9,273.3

Total Shareholders’ Equity

4,762.7

5,174.6

5,676.2

6,131.1

6,559.9

7,001.2

Retained Earnings

1,405.0

1,814.7

2,315.6

2,769.3

3,197.6

3,615.4

146.6

752.5

781.0

2,029.9

1,607.8

1,520.9

1,957.6

1,806.4

1,844.0

1,635.5

1,182.6

749.3

Net Assets

Total Accumulated Other Comprehensive Income
Non-controlling Interests

Financial Indicators(%)
FY2011FY2013

FY2014FY2015FY2016

Common Equity Tier 1 Capital Ratio (Consolidated)

/

8.16

8.80

9.43

10.50

11.34

Tier 1 Capital Ratio (Consolidated)

/

11.03

11.35

11.50

12.64

13.30

15.50

/

/

/

/

/

/

14.19

14.36

14.58

15.41

16.28

Net Assets per Share (Yen)

187.19229.70253.25322.86322.46335.96

Profit Attributable to Owners of Parent per Share (Yen)

20.62

22.96

28.18

24.91

26.94

23.86

Net Return on Equity (Consolidated)

11.36

10.99

11.65

8.60

8.37

7.27

Capital Adequacy Ratio (BIS Standard) (Consolidated)
Total Capital Ratio (Consolidated)

91

FY2012

Mizuho Financial GroupFinancial Review

Review and Analysis for Fiscal 2016

Financial and Economic Environment

GDP of Major Countries
Japan

Reviewing the economic environment over the fiscal year ended

6.0 (Annual % rate change from previous year)

March 31, 2017, the global economy as a whole continued to recover

4.0

gradually, although weakness in the recovery is seen in some regions.

2.0

As for the future direction of the economy, although continued

0.0
(2.0)

recovery is expected, particularly in the United States, concerns over

(4.0)

a downturn still linger, and such factors as the policy management of(6.0)

the new president of the United States, the political climate in Europe,

(8.0)

2013

trends in China’s economy and increased geopolitical risk need
continued and careful observation.

2014

2015

2016

2017

(Source: Prepared by MHRI based on the data of Cabinet Office)In the United States, employment conditions continued to begenerally favorable, and the economy continued to be on a recovery

U.S.

trend, supported by steady consumer spending and increased

6.0 (Annual % rate change from previous year)

exports. The economy is expected to continue to be on a trend of

5.0

gradual expansion, backed by policies of the new president; however,

4.0
3.0

concerns such as increasing uncertainty about the future direction of

2.0

the economy caused by foreign exchange and trade policies under

1.0

the new administration require attention.
In Europe, the economies continued to recover gradually due to

0.0
(1.0)
(2.0)

2013

such factors as the recovery of consumer spending and the pickup inexports. It is expected that the economies of the region will continue

2014

2015

2016

2017

(Source: Prepared by MHRI based on the data of the United States Department of Commerce)

to exhibit the same trend; however, political developments in Europe,
including the United Kingdom’s Brexit negotiations, elections inEuro Zone

European countries and non-performing loan problems in southern

4.0 (Annual % rate change from previous year)

European countries, require further attention.

3.0

In Asia, China’s economy was stable, partly due to support

2.0

from governmental policies. Going forward, with continued support

1.0

provided by fiscal policies, including investment in infrastructure and0.0

tax reductions, China’s economy is expected to remain generally(1.0)

unchanged for the time being. The economies of emerging countries

(2.0)

2013

have picked up due to such factors as the steadiness of China’s
economy and the increase in resource prices. As for the future

2014

2015

2016

2017

2016

2017

(Source: Prepared by MHRI based on the data of Eurostat)

direction of the economies, partially due to concerns such as
depreciation in the currencies of emerging countries and increased

Chinacapital outflow pressures, the pace of economic expansion is

8.0 (Annual % rate change from previous year)

expected to remain gradual.
In Japan, benefiting from improvement of overseas economies,
the economy continued to recover gradually mainly in the areasof export and capital expenditure. Going forward, the economy isexpected to continue to recover gradually, due to such factors as
an improved export environment and the effectiveness of various
policies; however, increasing uncertainty in overseas economies
requires continued attention.

7.5
7.0
6.5
6.0

2013

2014

2015

(Source: Prepared by MHRI based on the data of National Bureau of Statistics of China)

2017 Integrated Report92Financial Review

Summary of Consolidated Performance
Historical Data

Consolidated Gross Profit
Consolidated Net Business Profit*1(JPY billions)
FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016

1,806.9

1,996.6

2,025.3

2,003.0

2,171.7

2,035.2

2,247.7

2,221.6

2,092.7

622.6

702.6

741.7

719.1

912.1

744.2

876.9

852.8

663.4

Net Income (Losses)*2

484.5

413.2

239.4

560.5

688.4

611.9

670.9

603.5

(588.8)*1. Consolidated Gross Profits – G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments*2. Profit Attributable to Owners of Parent

Consolidated(JPY billions)
FY2016

Consolidated Gross Profits
Consolidated Net Business Profits*

FY2015

Change from
FY20152,092.7

2,221.6(128.8)

663.4

852.8

(189.4)(17.0)

Credit-related Costs(47.5)(30.4)Net Gains (Losses) related to Stocks

242.1

205.6

36.4

Ordinary Profits

737.5

997.5

(260.0)

Profit Attributable to Owners of Parent

603.5

670.9

(67.3)* Consolidated Gross Profits – G&A Expenses (excluding Non-Recurring Losses) + Equity
in Income from Investments in Affiliates and certain other consolidation adjust

MHBK+MHTB (Aggregate figures on a non-consolidated basis)(JPY billions)
FY2016FY2015

Change from
FY2015Gross Profits

1,441.4

1,599.3(157.9)G&A Expenses(excluding Non-Recurring Losses)(947.1)(910.9)(36.1)Net Business Profits

494.3

688.4

(194.1)Credit-related Costs(49.3)(26.7)(22.5)Net Gains (Losses) related to Stocks

210.5

181.4

29.0

Ordinary Profits

522.8

762.9

(240.0)Net Income

388.0

530.6

(142.6)MHSC (Consolidated)(JPY billions)
FY2016FY2015

Change from
FY2015Net Operating Revenues

365.9

415.2

(49.2)

SG & A Expenses(290.9)(329.6)

38.6

Ordinary Income

75.8

85.4

(9.6)

Profit Attributable to Owners of Parent

188.5

61.1

127.4

Consolidated Net Business Profits
We recorded Consolidated Gross Profits of JPY2,092.7 billion forfiscal 2016, decreasing by JPY128.8 billion from the previous fiscal
year.

93

Mizuho Financial GroupGross Profits of the aggregate figures for MHBK + MHTB (theTwo Banks) on a non-consolidated basis decreased by JPY157.9
billion on a year-on-year basis to JPY1,441.4 billion reflecting theimpact of the negative interest rates and other factors.
General and Administrative Expenses of the Two Banks
increased by JPY36.1 billion on a year-on-year basis to JPY947.1
billion mainly due to an increase in domestic personnel expenses suchas the Reserve for Employee Retirement Benefits and investment ofstrategic expenses.
Net Operating Revenues of MHSC on a consolidated basis
decreased by JPY49.2 billion on a year-on-year basis to JPY365.9
billion in part due to the impact of decrease in consolidated
subsidiaries as a result of corporate restructuring in the groupcompanies and other factors, offset in part by an increase in Net Gainon Trading.
SG&A Expenses decreased by JPY38.6 billion on a year-on-yearbasis to JPY290.9 billion.
As a result, Consolidated Net Business Profits decreased by
JPY189.4 billion on a year-on-year basis to JPY 663.4 billion.

Profit Attributable to Owners of Parent
Consolidated Credit-related Costs amounted to JPY47.5 billion.
Net Gains (Losses) related to Stocks increased by JPY36.4
billion on a year-on-year basis to JPY242.1 billion.
As a result, Ordinary Profits decreased by JPY260.0 billion on a
year-on-year basis to JPY737.5 billion.
Net Extraordinary Gains (Losses) increased by JPY35.9
billion on a year-on-year basis to net gains of JPY46.6 billion due
to extraordinary gains as a result of the establishment of AssetManagement One Co., Ltd.
Income Taxes decreased by JPY144.8 billion on a year-on-yearbasis to JPY137.7 billion due to the recording of deferred tax assets
as a result of corporate restructuring in MHSC group companies andother factors.
As a result, Profit Attributable to Owners of Parent for FY2016
decreased by JPY67.3 billion on a year-on-year basis to JPY603.5
billion. This result shows a 100% achievement against the earnings
plan for FY2016 of JPY600.0 billion.

Financial Review Review and Analysis for Fiscal 2016

Summary of Consolidated Balance Sheet
Consolidated

AssetsSecurities
Japanese Government
Bonds
Japanese Local
Government Bonds(JPY billions)
March 31,2017

March 31,2016

Change fromMarch 31,2016

200,508.6

193,458.5

7,050.0

32,353.1

39,505.9(7,152.8)

13,324.3

19,525.9(6,201.6)

Securities
Securities were JPY32,353.1 billion, decreasing by JPY7,152.8 billion
from the end of the previous fiscal year due to a decrease in JGBs
and other factors.
JGB Balance (MHBK + MHTB)*1
Medium- and Long-term Bonds*2 (JPY trillions)
Treasury Discount Bills (JPY trillions)

284.4

240.6

43.7

Japanese Corporate Bonds
and Short-term Bonds

2,696.3

2,867.9(171.6)

Japanese Stocks

3,958.4

3,898.7

59.7

Other

12,089.5

12,972.6(883.0)Loans and Bills Discounted

78,337.7

73,708.8

4,628.9

Loans(MHBK+MHTB, banking
account + trust account)

75,416.0

74,751.6

664.4

56,288.5

55,530.4

758.0Mar. 31,2014

Loans to SMEs andIndividual Customers

32,500.8

32,780.3(279.4)

Average Remaining Period*3(Housing loans forowner’s residential
housing)

9,497.5

9,949.7(452.1)

Domestic Total

Overseas Total

19,127.5

19,221.1(93.6)

191,235.2

184,105.3

7,129.9

Deposits

120,045.2

105,629.0

14,416.1

92,744.3

88,071.3

4,672.9

Individual Deposits

41,381.9

40,241.2

1,140.7

Corporate Deposits

43,941.2

40,695.0

3,246.1

Financial/Government
Institutions

7,421.1

7,135.0

286.0

Negotiable Certificates of
Deposit

10,631.2

11,827.5(1,196.2)

Domestic Deposits(MHBK + MHTB)Net Assets

9,273.3

9,353.2(79.8)

7,001.2

6,559.9

441.3

Common Stock andPreferred Stock

2,256.2

2,255.7

0.4

Capital Surplus

1,134.4

1,110.1

24.2

Retained Earnings

3,615.4

3,197.6

417.8

(4.8)

(3.6)

(1.2)

1,520.9

1,607.8(86.8)Net Unrealized Gains(Losses) on Other Securities

1,289.9

1,296.0(6.0)

Deferred Gains or Losses
on Hedges

10.1

165.2

(155.0)

Revaluation Reserve for
Land

145.6

148.4

(2.8)

Foreign Currency
Translation Adjustments(69.6)(53.6)(15.9)

Remeasurements ofDefined Benefit Plans

144.8

51.7

93.1

Total Accumulated Other
Comprehensive Income

5.2
1.1
15.4

17.2

2.6
0.7

15.6

13.8

0.5
0.6
14.4

10.2

1.7
0.6
7.8

Mar. 31,2015

Mar. 31,2016

Mar. 31,2017

2.6 years

2.5 years

2.4 years*1. Other securities which have readily determinable fair values*2. Including bonds with remaining period of one year or less
*3. Excluding Floating-rate Notes

Japanese Stocks (Consolidated)* (JPY billions)
2,003.8(Acquisition cost basis)

1,962.9
1,847.1
1,687.5

Total Shareholders’ Equity

Treasury Stock

21.8

2.4 years

Liabilities(Acquisition cost basis)
Floating-rate Notes (JPY trillions)

Stock Acquisition Rights

1.7

2.7

(1.0)

Non-controlling Interests

749.3

1,182.6(433.3)Mar. 31,2014

Mar. 31,2015

Mar. 31,2016

Mar. 31,2017* Other securities which have readily determinable fair values

2017 Integrated Report94Financial Review

Loans

Total Net Assets

The combined total of loans for the Two Banks was JPY75,416.0

Net Assets amounted to JPY9,273.3 billion, decreased by JPY79.8

billion, an increase of JPY664.4 billion from FY2015. For our domestic

billion from FY2015 due to increase in Retained Earnings by recording

loan balance, while the balance of personal loans decreased, that

Profit Attributable to Owners of Parent and decrease in Non-of large, medium and small businesses, and that such as Japanesecontrolling Interests and Deferred Gains or Losses on Hedges.

government loans increased, resulting in an overall increase of
JPY758.0 billion (including JPY920.9 billion loans to the Japanese
government, etc.). Our overseas loan balance (including loans booked

Non-Performing Loans (NPL)

offshore) decreased by JPY93.6 billion, mainly due to a decreasein loans to the Japanese government, etc. while with a particularly

The combined NPL balance of the Two Banks was JPY840.0 billion,

marked increase in loans to non-Japanese customers in Europe.

an increase of JPY19.9 billion from FY2015, and the NPL ratio was
1.00%. We maintained a good credit portfolio, with both the NPL

Loan Balance (MHBK + MHTB, banking account + trust account)
Domestic Loan Balance (JPY trillions)

Overseas Loan Balance (JPY trillions)

74.9

70.9

75.4

74.7

13.8

18.4

19.2

19.1

57.1

56.4

55.5

56.2

Mar. 31,2014

balance and ratio remaining stable in a low position.

Mar. 31,2015

Mar. 31,2016

D isclosed Claims under the FRA*(MHBK + MHTB, banking account + trust account)
Claims for Special Attention (JPY trillions)
Claims with Collection Risk (JPY trillions)
Claims against Bankrupt and Substantially Bankrupt Obligors (JPY trillions)
NPL Ratio (%)

Mar. 31,2017

Deposits

1.21

1.20

0.9

1.0

Mar. 31,2014

Mar. 31,
2015

1.00

1.00

0.8

0.8

Mar. 31,2016

Mar. 31,2017* Financial Reconstruction Act

The combined domestic deposits of the Two Banks increased by
JPY4,672.9 billion from FY2015 due to factors such as an increase incorporate deposits.

 isclosed Claims under the FRAD(MHBK + MHTB, banking account + trust account)(JPY billions)
March 31,2017

March 31,2016

Change fromMarch 31,2016

Claims against Bankrupt andSubstantially Bankrupt Obligors

82.7

68.0

14.7

Claims with Collection Risk

390.0

353.6

36.3

Claims for Special Attention

367.2

398.4

(31.1)

Domestic Deposits (MHBK + MHTB)
Individual (JPY trillions)
Corporate (JPY trillions)
Financial/Government institutions (JPY trillions)

77.0
5.1

5.8

33.3

36.5

38.5
Mar. 31,2014

95

Mizuho Financial Group

92.7

88.0

81.8

39.4
Mar. 31,
2015

7.1

7.4

40.6

43.9

40.2
Mar. 31,2016

41.3
Mar. 31,2017

Subtotal

840.0

820.1

19.9

Normal claims

82,716.4

81,009.0

1,707.3

Total

83,556.4

81,829.2

1,727.2

NPL Ratio

1.00%

1.00%

0.00%

Financial Review Review and Analysis for Fiscal 2016

BIS Capital
BIS Capital

BIS Capital Ratio

The common equity Tier 1 capital was JPY7,001.6 billion, an increaseof JPY435.1 billion from FY2015, due to the increase in Retained
Earnings by recording Profit Attributable to Owners of Parent.

Common Equity Tier 1 Capital Ratio (Consolidated) (%)
Tier 1 Capital Ratio (Consolidated) (%)
Total Capital Ratio (Consolidated) (%)

9.43

Risk Assets
The risk-weighted assets were JPY61,717.1 billion, a decrease of
JPY814.0 billion from FY2015, due to a decrease in credit risk related
assets.

BIS Capital Ratio
The common equity Tier 1 ratio increased by 0.84% from FY2015 to
11.34%.

BIS Capital Ratio (Consolidated)(JPY billions)

11.50

16.28

15.41

14.58

12.64

11.34

10.50

Mar. 31,2015

Mar. 31,2016

Mar. 31,2017

Mizuho continues to perform disciplined capital management
policy which maintains the optimum balance between strengtheningof stable capital base and steady returns to shareholders.
In our medium-term business plan starting from FY2016, we aim
to achieve a common equity Tier 1 capital ratio of approximately 10%
by the end of the final year (FY2018) (fully-effective basis* (basedon current regulations), excluding Net Unrealized Gains on Other
Securities), and enhance resilience to external environment stress. It
was 9.27% as of March 31, 2017, and has made a solid progress.
We will develop a resilient financial base that is able towithstand changes in a competitive environment by further improving
profitability, and implementing measures to improve efficiency, quality
and reduction of costs.

March 31,2017

March 31,2016

Change fromMarch 31,
2016

Common Equity Tier 1 Capital(CET1)

7,001.6

6,566.4

435.1

Capital Stock, Surplus andRetained Earnings

7,000.6

6,460.3

540.3* Calculated on a Basel III fully-effective basis at the end of FY2018.

Additional Tier 1 Capital

1,209.8

1,338.6(128.7)

Additional Tier 1 capital
instruments

Dividend Policy

760.0

300.0

460.0

Eligible Tier 1 capital
instruments subject to phaseout arrangements

577.5

1,144.0(566.5)

1,839.4

1,733.5

105.8

Tier 2 capital instruments

852.4

493.5

358.8

Eligible Tier 2 capital
instruments subject to phaseout arrangements

842.1

962.9

(120.7)

Tier 2 Capital

Total Capital

10,050.9

9,638.6

412.3

Risk-weighted Assets

61,717.1

62,531.1(814.0)Credit Risk Assets

56,060.0

57,588.4(1,528.3)

Market Risk Equivalent Assets

2,282.8

1,696.0

586.7

Operational Risk Equivalent
Assets3,374.2

3,246.6

127.5

Total Capital Ratio(Consolidated)

16.28%

15.41%

0.87%

Tier 1 Capital Ratio(Consolidated)

13.30%

12.64%

0.66%

Common Equity Tier 1 Capital
Ratio (Consolidated)

11.34%

10.50%

0.84%

13.30

As for our policy to return profits to shareholders, we have
implemented a steady dividend payout policy setting a dividend
payout ratio on a consolidated basis of approximately 30% as a guidefor our consideration.
Based on this policy, we made cash dividend payments oncommon stock of JPY7.50 (JPY3.75 for interim dividends and
JPY3.75 for year-end dividends) for the fiscal year ended March 31,
2017, the same amount as the annual dividend of the previous fiscal
year. The Board of Directors of MHFG has considered thoroughly
and decided it by taking into account our business environment
comprehensively such as the financial results for FY2016 in which
Profit Attributable to Owners of Parent achieved earnings estimates,
future earnings forecasts, profit base, status of capital adequacy,
and domestic and international regulation trends such as the Baselframework.
Cash Dividend per Share of Common Stock (JPY)
7.5

7.5

7.5

FY2014FY2015FY2016

30%

28%

31%

6.5

Status of Capital Adequacy
The total capital ratio, Tier 1 capital ratio and common equity Tier 1
capital ratio at the end of March 2017 were 16.28%, 13.30% and11.34%, respectively.

FY2013
Dividend Payout Ratio
23%

2017 Integrated Report96Company Information

Office Network

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

Europe, the Middle East, and Africa

Asia and Oceania

MHBK

17 offices

MHBK

45 offices

MHTB

1 office

MHSC

7 offices

MHSC

3 offices

Asset Management One

2 offices

Asset Management One

1 office

Amsterdam
Düsseldorf

Brussels

Frankfurt

LondonMoscow

Nanjing
Wuxi

ViennaMilan

Bahrain

New Delhi

RiyadhDubai

SuzhouWuhan

TehranZurich

Seoul

Hefei

Istanbul

MadridDalianQingdao

Luxembourg
Paris

TianjinBeijing

Ahmedabad

XiamenShenzhen
Guangzhou

Taipei

Hanoi

Taichung

ShanghaiKaohsiung

MumbaiHong Kong

Bangalore-Devanahalli

Johannesburg

YangonThilawa
Bangkok
Eastern Seaboard
Phnom Penh
Ho Chi Minh City
Kuala Lumpur
Singapore

ManilaChennai

Jakarta

97

Mizuho Financial Group

LabuanSydneyCompany Information Office Network

International Network (As of June 30, 2017)
MHBK: 87 offices

MHTB: 2 offices

Overseas branch or relevant office

Overseas subsidiary

MHSC: 22 offices
Overseas representative office

Asset Management One: 4 offices
Overseas subsidiary

Overseas subsidiary

Overseas representative office
Overseas subsidiary

Note: Overseas subsidiaries include head offices, branches or relevant offices, and representative offices of overseas subsidiaries.

Americas
25 offices

MHBK

Calgary

MHTB

1 office

MHSC

12 offices

Asset Management One

1 office

ChicagoTorontoBostonVancouver

Hoboken
New York

San Francisco

Philadelphia
Atlanta
HoustonLos Angeles
Mexico City

NassauCaymanNetwork in Japan (As of June 30, 2017)
MHBK
Head Office and Branches: 421
Sub-branches: 45
MHTB
Head Office and Branches: 36
Sub-branches: 21
MHSC
Tokyo Head Office and regional head offices: 3
Branches: 104
Planet Booths*: 166
Sales Office: 1*Planet Booths are the consulting boothsof MHSC located in MHBK’s BranchesSão Paulo
Santiago• MHBK opened Mizuho Bank Mexico, a full service financial
institution and a fully-owned subsidiary, in March 2017.
• MHBK opened the Phnom Penh Branch in April 2017.
• Mizuho Bank Mexico has started preparations to open an
office in León, Mexico in fiscal 2017.

2017 Integrated Report98Company Information

Group Companies (As of March 31, 2017, except for each company’s network, which is as of June 30, 2017)

Mizuho Bank
Offering the Best Financial Solutions through the Group’sComprehensive Strengths
MHBK is a leading bank with one of the largest customer bases inJapan and a network encompassing the major financial and businesscenters around the world. MHBK collaborates with the group’s trust
banking, securities, asset management, and think tank entities, inorder to offer the best financial solutions to a wide range of customers
by bringing together the group’s comprehensive strengths anddemonstrating its consulting capability.
Each and every member of management and employee will
fully implement the “Customer First” principle (customer-focused
perspective) and will constantly develop and implement new
approaches to help customers overcome and resolve the issues
they face. Along with this, we are working to increase customer
convenience and bring them greater satisfaction by enhancing our
products and services and reforming operational processes withflexibility.

Our Goal: The Best Financial Solutions Partner
Our aim is to be our customers’ best financial solutions partner,
supporting them in the pursuit of their dreams.
Under the group’s medium-term business plan entitled
Progressive Development of “One MIZUHO”: The Path to a Financial
Services Consulting Group, we will maintain close relationships withsociety and our customers as they face major environmental changes.
In doing so, we will share their issues and lead the way to solutions
as we strive to become the “Only One” bank that customers feel they
can depend on and want to consult first.

Koji Fujiwara
President & CEO
Mizuho Bank, Ltd.

Corporate Profile
Date of Establishment: July 1, 2013

Number of Employees: 29,848

Capital: JPY1,404.0 billion

Domestic Network:
Head Office and Branches: 421
Sub-branches: 45

Location of Head Office:1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan
Tel: +81-(0)3-3214-1111
Representative:
Koji Fujiwara, President & CEO(Appointed on April 1, 2017)

Overseas Network:
Branches: 26 Relevant Offices: 17
Representative Offices: 5 Subsidiaries: 39

Website:https://www.mizuhobank.com/

99

Mizuho Financial Group

Company Information Group Companies

Mizuho Trust & Banking
Providing Consulting Functions that Make Full Use of Our
High Level of Trust-related Expertise
Aiming to realize our goal of becoming a financial services consulting
group cited in the group’s medium-term business plan, MHTB
provides consulting functions that make full use of a high level oftrust-related expertise to meet the diversified customer needs.
In order to address customer needs in areas such as
inheritance, asset/business succession, real estate, asset liquidation/
securitization, stock transfer agency business, and pensions, we
collaborate with the group’s banking, securities, asset management,
and think tank entities; and we provide the optimum trust products
and services through consulting to all of Mizuho’s customers.

Our Goal: The Most Reliable Trust Banking Company
We will endeavor to become the most reliable trust banking company
by responding to our customer expectations for trust-related services
as we place thoroughgoing emphasis on our “Customer First”
Principle (customer-focused perspective) and work to take the One
MIZUHO Strategy to the next level.
Our customers face a range of issues, such as the need forsteady asset building and smooth succession of assets to the next
generation, the diversification and sophistication from the conventional
type of investments weighted heavily towards savings and deposits,
and the reform of corporate governance. Using our function forproviding sophisticated trust solutions, we will help resolve thoseissues, thereby contributing to the prosperity of customers, society,and the economy.

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

Corporate Profile
Date of Establishment: March 12, 2003

Number of Employees: 3,266

Capital: JPY247.3 billion

Domestic Network:
Head Office and Branches: 36
Sub-branches: 21 (Trust Lounges: 20)

Location of Head Office:1-2-1, Yaesu, Chuo-ku, Tokyo
103-8670, Japan
Tel: +81-(0)3-3278-8111

Overseas Network:
Subsidiaries: 2

Representative:
Tetsuo Iimori, President & CEO(Appointed on April 1, 2017)
Website:https://www.mizuho-tb.co.jp/english/

2017 Integrated Report100Company Information

Group Companies (As of March 31, 2017, except for each company’s network, which is as of June 30, 2017)

Mizuho Securities
Offering Sophisticated Value-added Securities Services as
One MIZUHOIn aiming to offer sophisticated value-added securities services which
resonate with our customers, MHSC pursues One MIZUHO Strategy
which brings together banking, trust banking, and securities functions
under one umbrella to provide products and services of the highest
quality.
For individual customers, we offer a wide range of financial
products including equity, bonds, and investment trusts as well as
timely investment information through our branch network in Japan,
which is the largest in the industry. We also ensure our customers
are able to tap into the highly-advanced financial services andprofessional knowhow of the entire group in collaboration with ourgroup companies. To meet our corporate customers’ needs, we offer
exceptional support tailored to their business strategies via diverse
investment banking solutions (IPOs, financing, business succession,etc.), sophisticated investment products, and investment information.

Our Goal: Our Customers’ Most-trusted Partner and TheirFirst Choice among Securities Companies
In line with Mizuho’s aim to serve as a financial services consulting
group, we at MHSC—Mizuho’s one and only comprehensive
securities services provider—aim to serve as our customers’ mosttrusted partner and their first choice among securities companies.
To achieve this aim, we will continue to dedicate our efforts tofurther enhancing our incomparable financial expertise as well as theunparalleled quality of our products to more effectively uncover andaddress the needs of our customers.

Tatsufumi Sakai
President & CEO
Mizuho Securities Co., Ltd.

Corporate Profile
Date of Establishment: January 4, 2013

Number of Employees: 7,285

Capital: JPY125.1 billion

Domestic Network:
Tokyo Head Office and regional head offices: 3
Branches: 104
Planet Booths: 166
Sales Office: 1

Location of Head Office:Otemachi First Square, 1-5-1, Otemachi,
Chiyoda-ku, Tokyo
100-0004, Japan
Tel: +81-(0)3-5208-3210
Representative:
Tatsufumi Sakai, President & CEO

Overseas Network:
Representative Offices: 2
Subsidiaries: 20
Website:https://www.mizuho-sc.com/english/

101

Mizuho Financial Group

Company Information Group Companies

Mizuho Research Institute (MHRI)

Mizuho Information & Research Institute (MHIR)MHRI is one of Japan’s leading think tanks, with a research division,
consulting division, and unique corporate membership services. MHRI
uses its excellent analytical skills and the organization’s network inJapan and overseas to provide information, policy recommendations,and consulting services to solve the specific issues of the national
government, local governments, and private companies.

With IT as its core technology, MHIR is a professional organization
with more than 4,000 employees that provides assistance tocorporations in increasing their corporate value through its consulting,system integration, and outsourcing services.

Date of Establishment October 1, 2002

Date of Establishment October 1, 2004

Capital

JPY900 million

Location of Head Office 1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative

Hideyuki Takahashi, President & CEO (Appointed on June 29, 2017)

Number of Employees 308
Websitehttps://www.mizuho-ri.co.jp/english/

Capital

JPY1,627 million

Location of Head Office 2-3 Kanda-Nishikicho, Chiyoda-ku, Tokyo
Representative

Junichi Nishizawa, President & CEO

Number of Employees 4,310
Websitehttps://www.mizuho-ir.co.jp/english/

Asset Management One

Trust & Custody Services Bank (TCSB)

Asset Management One is an asset management company in which
Mizuho and Dai–ichi Life Holdings both have equity holdings. AssetManagement One collaborates with its offices in Europe, the US, andAsia to offer investment trust products to individuals and corporate
customers, as well as provide investment advisory services tocustomers including Japanese and overseas pension funds.

As Mizuho’s trust bank specializing in asset administration, TCSB
will continue to provide high-quality, high-value-added trust andcustody services to customers, including large institutional investors.
As of March 31, 2017, the balance of assets under custody andadministration exceeded JPY385 trillion, one of the largest suchbalances in Japan.

Date of Establishment October 1, 2016
Capital

JPY2,000 million

Location of Head Office Tekko Building, 1-8-2 Marunouchi, Chiyoda-ku, Tokyo
Representative

Yasumasa Nishi, President & CEO

Date of Establishment January 22, 2001
Capital

JPY50,000 million

Location of Head Office Tower Z, Harumi Triton Square, 1-8-12, Harumi, Chuo-ku, Tokyo
Representative

Akira Moriwaki, President & CEO

Number of Employees 953

Number of Employees 652

Overseas Network Subsidiaries 4

WebsiteWebsitehttp://www.tcsb.co.jp/english/

http://www.am-one.co.jp/english/

Mizuho Private Wealth Management (MHPW)

Mizuho Americas

MHPW offers consulting services tailored to the needs of its
customers. These services range from consulting on customers’
financial matters such as wealth management, arranging for businessinheritance to advice on customers’ individual matters, including
health of the customers themselves as well as family members andchildren’s education.

Mizuho Americas was established as a US bank holding company
with Mizuho’s primary US-based banking, trust banking, andsecurities entities under it to meet the US regulations governing theoperations of foreign banks. To further increase its competitivenessin the US, which is the world’s largest financial market, Mizuho
Americas is proactively strengthening its governance framework,
and, while promoting the collaboration of its banking, trust banking,and securities operations, it is conducting management and otheractivities that are necessary for expanding its profit base.

Date of Establishment October 3, 2005
Capital

JPY500 million

Location of Head Office 1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative

Takeru Watanabe, President

Number of Employees 32

Date of Establishment June 20, 2016
CapitalUSD3,929 million

Location of Head Office 1251 Avenue of the Americas, New York, NY 10020, USA
Representative

Hiroshi Suehiro, CEO

Websitehttps://www.mizuhoamericas.com/

Notes: 1. The representatives of each company have representation rights.
2. The number of employees does not include each company’s employees dispatched outside each company while it includes employees dispatched from outside each company.
This figure also includes overseas local staff but excludes executive officers and temporary employees.
3. Overseas subsidiaries include head offices, branches, and representative offices of subsidiaries.

2017 Integrated Report102Company Information

Corporate Profile (As of March 31, 2017)

Company Name:

Mizuho Financial Group, Inc.

Stock Listing (Code):Tokyo Stock Exchange (8411)
New York Stock Exchange (MFG)

Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan
Tel: +81-(0)3-5224-1111
Representative:

Yasuhiro Sato, President & Group CEO

Capital:

JPY2,256.2 billion

Issued Shares:

25,386,307,945 shares

Number of Employees:

1,359(Total number of employees on a consolidated basis: 59,179)

Date of Establishment:

January 8, 2003

■ Rating Information

103(As of June 30, 2017)

R&I

JCR

Moody’s

S&P

Fitch

MHFG

A+

AA-

A1

A-

A-

MHBK

AA-

AA

A1

A

A-

MHTB

AA-

AA

A1

A

A-

MHSC

AA-

AA

A1

A

—

(Reference) Japanese Government

AA+

AAA

A1

A+

A

Mizuho Financial GroupAppendix

2017 Integrated Report104Appendix

Compliance Contacts“Internal Controls and Audit Hotline”—A system designed for obtaining concerns regarding questionable accounting or auditing matters—
Reporting Items: MHFG has established a hotline to receive reports• When reported matters are within the scope of the reporting items,

from in and outside the company in connection with

MHFG will do reasonable efforts to investigate the facts behind the

problems concerning internal controls and audits of

information received and report back on the results.

accounts and financial reports.

• Anonymous tips are also acceptable, but there are cases where itContact Point: This hotline has been established within an external

will not be possible to fully satisfy the intentions behind such tips

law office. Please use conventional mail or e-mail forowing to constraints on investigations and the inability to reportreporting.

back.

Conventional mail: 12th Floor, Kasumigaseki Bldg.,• Information on persons making such reports is not disclosed to

Kasumigaseki 3-2-5, Chiyoda-ku,

third parties other than the group companies except in cases where

Tokyo 100-6012

the assent of the person in question has been obtained or such

Mizuho Accounting Hotline, c/o

disclosure is required under laws and ordinances, etc

Daiichi Fuyo Law OfficeE-mail: kaikei-mizuho@daiichifuyo.gr.jp

Approaches to the Financial Alternative Dispute Resolution (ADR) System
In order to deal expeditiously, fairly and appropriately with complaints,

The Designated Dispute Resolution Institution as Defined in Japan’setc., from customers, MHBK and MHTB have concluded the basic

Banking Act which MHBK and MHTB Concluded the Basic Contract

contract for the implementation of dispute resolution procedures with

with

the Japanese Bankers Association, which is a designated dispute

The Designated Dispute Resolution Institution: resolution institution as defined in Japan’s Banking Act. MHTB has
also concluded the basic contract for the implementation of dispute
resolution procedures with the Trust Companies Association of Japan,

the Japanese Bankers Association
Contact: Advisory Center of the Japanese Bankers Association
Tel.: +81-(0)3-5252-3772

which is a designated dispute resolution institution as defined inJapan’s Trust Business Act and Act on Concurrent Operation, etc. of

The Designated Dispute Resolution Institution as Defined in Japan’s

Trust Business by Financial Institutions.

Trust Business Act and Act on Concurrent Operation, etc. of Trust

The designated dispute resolution institution takes the steps

Business by Financial Institutions which MHTB Concluded the Basic

toward resolution from a fair and neutral perspective in cases where

Contract withthe solutions to customers’ complaints adopted by the two banks are

The Designated Dispute Resolution Institution: not accepted.

Trust Companies Association of Japan
Contact: Trust Consultation Center of the Trust Companies
Association of Japan
Tel.: +81-(0)3-6206-3988

105

Mizuho Financial GroupAppendix

Management Support for SME Customers and Regional Revitalization

Management Support for SME Customers
Mizuho shares information on the needs and issues of its customers at various stages in their development,
offers them proposals for solutions, and supports their implementation
Through drawing fully on its consulting capabilities for providing
proposals and solutions for addressing management issues, Mizuho
fulfills its responsibilities as a financial institution by providing support
for customers’ business expansion and succession and businessrestructuring based on a good understanding of customers’
perspectives.
In particular, through growth strategy support based on
consulting, we actively provide a range of business management
support including M&A from the standpoint of business expansion

and succession, and support for innovative companies withexceptional technologies or ideas.
Furthermore, the specialized section to support business
revitalization within the credit group in Mizuho works intensively
to provide support for SME customers’ business improvement
and business revitalization. In addition, Head Office and frontlines
cooperatively provide consultation and support for customers,
collaborating with external organizations, external specialists, andother financial institutions.

Regional Revitalization Initiatives
As a result of the trend in Japan toward concentration of businesses
and other activities solely in Tokyo, regional populations are expected
to decline and their economies to shrink in the future. Revitalizationof regional towns through a virtuous circle in which people and jobs

return to regional areas is an urgent task. Utilizing our office network
in Japan, we are striving to promote the revitalization of regional
economies by providing our customers with smooth supplies offunding, engaging in management consultations, and collaboratingwith regional governments.

Case Example
Supporting Recovery in Disaster Areas of the Great East Japan Earthquake – Syndicated Loan to Miraiships

Architectural rendering of the new shipyard

The shipbuilding industry in Kesennuma-shi, Miyagi Prefecture suffered catastrophic damage during the
March 2011 earthquake disaster, with facilities destroyed by the tsunami, and ground subsidence inshipyard sites. The recovery of Kesennuma, one of the main marine products cities in Japan, is essential
to the revitalization of the shipbuilding industry. Miraiships, comprising mainly four shipbuilding companies
damaged in the disaster, was established to strengthen the business foundation for the shipbuilding
industry in Kesennuma, and construct a shipyard with cutting-edge facilities at a new site.
The capital to construct the new shipyard was provided by subsidies from the Ministry of Land,
Infrastructure, Transport and Tourism, along with a syndicated loan formed by MHBK together with local
financial institutions.
Mizuho will continue to support revitalization efforts in the area.

Initiatives Related to Finance Facilitation and Guidelines for Personal Guarantee Provided by Business Owners
Finance Facilitation
Earnestly determined to fulfill a financial institution’s social role offacilitating finance, Mizuho works to promote facilitating finance inaccordance with the group’s fundamental policies by appropriately
responding to such customer requests as those for new loans andloan condition adjustments, and by striving to utilize its consulting
functions.

Guidelines for Personal Guarantee Provided by Business Owners
Mizuho, in line with Guidelines for Personal Guarantee Provided
by Business Owners, is working to establish and maintain good
relationships of trust with its customers.
In addition, along with joint guarantee with a termination clause,
we offer and promote alternative lending methods to personal
guarantee provided by business owners, and have established astructure for cooperation between frontlines and the Head Office toencourage utilization.

2017 Integrated Report106Appendix

Internal Audit Structure

Basic Approach
Internal audits are designed as an integrated process, independent

process, internal audits assist the Boards of Directors of each offrom other business operations, for evaluating the extent to which

our group companies to fulfill their managerial duties efficiently andinternal control achieves its objectives in key areas, including

effectively.

appropriate risk management, efficient and effective businessIn line with the Basic Policy for Internal Audit established byoperations, reliable financial reporting and compliance with laws,

MHFG, our core group companies conduct internal audits, which

regulations and internal rules. We conduct internal audits from an

include the internal auditing of their respective subsidiaries. In

objective and comprehensive standpoint, independent of operational

addition, with respect to the management of risks applicable acrossreporting lines, and offer advice and remedial recommendations in

the group, we coordinate internal audits throughout the group toconnection with any problems that may be identified. Through thisassess the risk management status of the group as a whole.

Internal Audit Management Structure
MHFG

Other Core Group Companies

Our Internal Audit Committee determines all important matters

Other core group companies have also established effective andconcerning internal audits. The committee is chaired by the President

efficient internal audit structures adapted to the characteristics of their& Group CEO and is independent of our other business operations.

respective businesses.

Our Internal Audit Committee monitors and manages internal audits
at our core group companies through internal audit reports submitted

Internal Audit Management Structure

by such subsidiaries.
regarding internal audits at our core group companies and submits
the results, together with the results of their examination of the internal

MHFG
Supervision,
Audit

Our Internal Audit Committee discusses and makes decisions

audit reports, to the Audit Committee and our Board of Directors.

Board of Directors

Audit Committee

President & Group CEO

Internal Audit Committee

MHBK and MHTBMHBK and MHTB have also established Internal Audit Committees
that are independent of their other business operations. The twobanks have established internal audit departments and credit review
departments (Credit Assessment and Auditing Office at MHTB) to

Management(Chairman: President & Group CEO)Internal Audit Group

Everyorganizational unit

Internal Audit

Internal Audit Department

conduct internal audits at their respective domestic and overseas
business offices, head office departments and group companies.
Specifically, the internal audit departments assess the suitability andeffectiveness of business activities associated with compliance andManagement by
MHFG

Advice, guidance
and remedialrecommendations

Report the resultsof internal audit, etc.

risk management. The credit review departments (Credit Assessment
and Auditing Office at MHTB) audit credit ratings and the status

MHBK, MHTB, MHSC and other core group companies

of credit management in addition to auditing the self-assessmentof assets to verify the accuracy and suitability of matters deemednecessary to assure the soundness of assets.

107

Mizuho Financial Group

Subsidiaries of the above group companies(As of June 23, 2017)

Appendix

Risk Management Structure

Commitment to Risk Management

financial institutions are exposed to various risks, including credit,
market operations, information technology, legal, settlement andother risks. We recognize the conducting of operations tailored to

Risk Management Structure

MHFG
Supervision/
Audit

Basic Approach
Amid the growing diversity and complexity of banking operations,Board of Directors

Risk Committee

the risks and managing such risks as a key issue relating to overall
maintaining our financial stability, we maintain comprehensive risk
MHFG maintains basic policies for risk management establishedby its Board of Directors that are applicable to the entire group. These

Business Policy Committees

Management

management and control measures.

Executive Management Committee

President & Group CEO

management. In order to implement our business strategy while

policies clearly define the kinds of risks to be managed, set forth the(Risk Management Committee, etc.)

Officer responsible forrisk management(Group CRO, etc.)

Risk Management Department
Credit Risk Management Department

organizational structure and provide for the human resources training

Departments responsible for risk management

necessary for appropriate levels of risk management. The policies
also provide for audits to measure the effectiveness and suitabilityof the risk management structure. In line with these basic policies,
we maintain various measures to strengthen and enhance thesophistication of our risk management system.

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management• Set risk management policies• Give instructions and approvals concerning
risk management• Report the risk management situations• Submit applications concerning risk
management

Core group companies
MHBK

MHTB

MizuhoAmericas

MHSC

Other core groupcompanies

measures for its business based on the size and nature of its risk
a whole. At MHFG, the Risk Management Committee chaired by theGroup Chief Risk Officer (Group CRO) provides integrated monitoringand management of the overall risk for the group. The Group CRO

MHBK MHTBSupervision/
Audit

exposures, while MHFG controls risk management for the group asreports the risk management situation to the Board of Directors, theRisk Committee, the Executive Management Committee and theBoard of Directors

Audit and Supervisory Committee

President & CEO

Executive Management Committee
Business Policy Committees

regularly receives reports and applications concerning the risk
management situation from our core group companies and gives
them appropriate instructions concerning risk management. Our
core group companies each maintains its own system for managing
various types of risk, regularly receiving reports on the status of risk attheir respective subsidiaries, and gives them appropriate instructions

Management

President & Group CEO, on a regular basis and as needed. MHFG

Officer responsible for risk management(CRO, etc.)

Risk Management Department<Market operations> Middle offices

Credit Risk Management Department
Departments responsible for risk management

concerning risk management.
• Set risk management policies• Give instructions and approvals concerning
risk management• Report the risk management situations• Submit applications concerning risk
management

Subsidiaries managed by the core group companies

2017 Integrated Report108Appendix

Approach to the Basel Regulatory Framework
Basel III Framework, the regulations for international standards

A leverage ratio also has been implemented under “Pillar 3”of the health of banks, is being phased in from 2013, whichfrom March 31, 2015 and we began disclosing it accordingly.

consists of minimum capital requirements, a leverage ratio

Also a global liquidity standard has been implemented under

and a global liquidity standard. Basel III is based on the Basel“Pillar 1” from March 31, 2015 in Japan, and we have been

II framework which requires the observance of “three pillars.”

calculating and disclosing our liquidity coverage ratio pursuant“Pillar 1” is minimum requirements relating to risk which should

to such standard.

be maintained by banks. “Pillar 2” is the self-disciplined risk
management by financial institutions with a supervisory review
process. “Pillar 3” is market discipline allowing for assessmentby the market through appropriate disclosure.
We have been calculating our capital adequacy ratios
by applying the Advanced Internal Ratings Based approachfor the calculation of credit risk from March 31, 2009 and

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

the Advanced Measurement Approach for the calculation ofAdvanced Measurement Approach (AMA)

operational risk from September 30, 2009. In Japan, from MarchAMA is one of the calculation methods for operational risk

31, 2013, the minimum capital requirements based on Basel III

assets provided for by Basel II. AMA is a risk asset calculation

began to be phased in, and we have been calculating capitalmethod based on statistics that not only utilizes data from

adequacy ratios based on the revisions to capital adequacy

internal losses experienced by the company, but also utilizes

guidelines published by the Financial Services Agency. The

scenario data to calculate the impact of events that may be

Basel Committee continues to review the treatments related

experienced in the future.

to capital requirements. We will comply with new requirements
appropriately. We have been identified as a G-SIB by the
Financial Stability Board since November 2015, and the stricter
capital requirements began to be phased in from March 31,
2016.

General Concept of Risk Management
Basic Approach
We classify our risk exposures according to the various kinds of risk,

quantitative terms. In line with the basic policies relating to overall

including credit risk, market risk, liquidity risk and operational risk, andrisk management laid down by MHFG, companies within the groupmanage each type of risk according to its characteristics. In addition

identify risk broadly and take a proactive and sophisticated approachto managing each type of risk individually, we have established ato risk management, including methodologies for operations thatrisk management structure to identify and evaluate overall risk and,involve exposures to multiple categories of risk such as settlement

where necessary, to devise appropriate responses to keep risk

and trust businesses.

within limits that are managerially acceptable in both qualitative and109

Mizuho Financial GroupAppendix Risk Management Structure

Risk Capital Allocation
We endeavor to obtain a clear grasp of the group’s overall risk

equity and other measures of financial strength. To ensure theexposure and have implemented measures to keep such risks

ongoing financial soundness of the group, we regularly monitor

within the group’s financial base in accordance with the risk capitalthe manner in which risk capital is being used in order to obtain aallocation framework.

proper grasp of the risk profile within this framework. Reports are

More specifically, we allocate risk capital to our core groupalso submitted to the Board of Directors and other committees ofcompanies, including their respective subsidiaries, to control riskeach company. Risk capital is allocated to MHBK, MHTB, MHSC andwithin the limits set for each company. We also control risk within

Mizuho Americas by risk category, and is further allocated within their

managerially acceptable limits by working to ensure that the overall

respective business units based on established frameworks.

risk we hold on a consolidated basis does not exceed shareholders’

Allocation of Risk Capital

MHFG(Example)
MHBKThe group’s risk exposure

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

Allocated risk capital

The group’s financial
strength

Capital, etc.

Core group companies’
risk exposure*

MHBK
MHTB
MHSC

Credit risk
Market risk
Equity risk
Operational risk

Allocation
to eachbusiness
unit

Group companies, etc.

Mizuho Americas
MHTB

MHSC

Other risk exposure

Mizuho Americas* Including risk exposures of the subsidiaries of the core group companies

As part of our risk capital allocation management, we create

Assessment of Balance between Risk under Stressed Condition andmultiple risk scenarios common to the group, based on which we

Capitaland our core group companies calculate potential losses and risk

1. Developmentof Stress
Scenarios

amount arising from assumed stress events across all risk types. The
calculated losses and risk amount are used for assessing internal
capital adequacy and verifying whether they balance with the group’s
capital.
The risk scenarios for stress testing are formulated by taking

2. Measurementof Impacts ofStress Events

into account the current economic conditions and the economic
outlook and by assuming historical stress events, etc. from a risk
management perspective to measure the impacts of stress events by
scenario.

3. Analysis andUtilization ofStress Test
Results• Current economic conditions, economic outlook, etc.
• Occurrence of historical stress events, etc.
Create multiple risk scenarios common to the group
Measure the impacts of stress events on the groupbased on the stress scenarios created[Key items to be calculated]
Losses, VaR, etc.

Utilize stress test results for internal capital adequacy
assessments, etc.

2017 Integrated Report110Appendix

Credit Risk Management
Basic Approach
We define credit risk as the group’s exposure to the risk of losses thatapproach is “credit management,” in which we manage the process

may be incurred due to a decline in, or total loss of, the value of assets

for each individual transaction and individual obligor from execution(including off-balance-sheet instruments), as a result of deterioration

until collection, based on our assessment of the credit quality of thein obligors’ financial position. We have established the methods andcustomer. Through this process, we curb losses in the case of astructures necessary for grasping and managing credit risk.

credit event. The second is “credit portfolio management,” in which

MHFG manages credit risk for the group as a whole.

we utilize statistical methods to assess the potential for losses relatedMore specifically, we have adopted two different but mutuallyto credit risk. Through this process, we identify credit risks andcomplementary approaches in credit risk management. The first

respond appropriately.

Credit Risk Management Structure
Credit Risk Management of MHFG

The business policy committees established respectively by

Our Board of Directors determines the group’s basic matters

MHBK and MHTB (the two banks) are responsible for discussing andpertaining to credit risk management. In addition, the Risk

coordinating overall management of their individual credit portfolios

Management Committee of MHFG broadly discusses and coordinates

and transaction policies toward obligors. The respective Chief

matters relating to basic policies and operations in connection with

Risk Officers of the two banks are responsible for matters relating

credit risk management and matters relating to credit risk monitoring

to planning and implementing credit risk management. The credit

for the group. Under the control of the Group CRO of MHFG, therisk management departments of the two banks are in charge of

Credit Risk Management Department and the Risk Management

planning and administering credit risk management and conducting

Department jointly monitor, analyze and submit suggestions

credit risk measuring and monitoring. The departments regularly

concerning credit risk and formulate and execute plans in connection

present reports regarding their risk management situation to MHFG.

with basic matters pertaining to credit risk management.

The credit departments of the two banks determine policies andapprove/disapprove individual transactions in terms of credit review,

Credit Risk Management at Our Core Group Companies

credit management and collection from customers in accordance

Our core group companies manage their credit risk according to thewith the lines of authority set forth respectively by the two banks. In

scale and nature of their exposures in line with basic policies set forth

addition, the two banks have established internal audit groups thatby MHFG. The Board of Directors of each company determines key

are independent of the business departments in order to ensure

matters pertaining to credit risk management.

appropriate credit risk management.

Individual Credit Management
Credit Codesconsist of obligor ratings which represent the level of credit risk of

The basic code of conduct for all of our officers and employees

the obligor, and transaction ratings which represent the possibility ofengaged in the credit business is set forth in our credit code. Seeking

ultimately incurring losses related to each individual claim by taking

to fulfill the bank’s public and social role, our basic policy for credit

into consideration the nature of any collateral or guarantee and thebusiness is determined in light of fundamental principles focusing onseniority of the claim. In principle, obligor ratings apply to all obligors

public welfare, safety, growth and profitability.

and are subject to regular reviews at least once a year to reflect
promptly the fiscal period end financial results of the obligors, as well

111

Internal Rating Systemas special reviews as required whenever the obligor’s credit standing

One of the most important elements of the risk managementchanges. This enables the two banks to monitor both individual

infrastructure of the two banks is the use of an internal rating system

obligors and the status of the overall portfolio in a timely fashion.

that consists of credit ratings and pool allocations. Credit ratings

Because we consider obligor ratings to be an initial phase of theMizuho Financial GroupAppendix Risk Management Structureself-assessment process regarding the quality of our loans and off-

Pool allocations are applied to small claims that are less thanbalance-sheet instruments, such obligor ratings are closely linked

a specified amount by pooling customers and claims with similar

to the obligor classifications and are an integral part of the process

risk characteristics and assessing and managing the risk for eachfor determining the reserves for loan losses and write-offs in oursuch pool. We efficiently manage credit risk and credit screening

self-assessment of loans and off-balance-sheet instruments (pleaseby dispersing a sufficient number of small claims within each pool.

refer to Connection between Obligor Ratings, Definition of Obligor

We generally review the appropriateness and effectiveness of ourClassifications of Self-Assessments, Claims Disclosed under the FRA

approach to obligor ratings and pool allocations once a year inand Non-Accrual, Past Due & Restructured Loans).

accordance with predetermined procedures.

Connection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments, Claims Disclosed under the FRA and NonAccrual, Past Due & Restructured Loans

Definition of Obligor
Classifications of
Self-Assessment

NormalObligors

Obligor Ratings(Major Category)Definition of Ratings

A1—A3

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

B1—B2

Obligors whose certainty of debt fulfillment poses
no problems for the foreseeable future, hence theirlevel of credit risk is sufficient.

C1—C3

Obligors whose certainty of debt fulfillment andtheir level of credit risk pose no problems for theforeseeable future.

D1—D3

Obligors whose current certainty of debt fulfillment
poses no problems, however, their resistance tofuture environmental changes is low.

E1

Watch
Obligors

Intensive
Control
Obligors

E2

R

F1

Substantially
Bankrupt
Obligors

G1

Bankrupt
Obligors

H1

Category I(NonCategorized)

Obligors who have not yet gone legally or formallybankrupt but who are substantially bankrupt
because they are in serious financial difficulties
and are not deemed to be capable of restructuring.

Obligors who have already gone bankrupt, fromboth a legal and/or formal perspective.

Category III

Category IV(NonCollateralized)

All credit
given toNormalObligors.

Obligors who require close watching going forward
because there are problems with their borrowings,
such as reduced or suspended interest payments,
problems with fulfillment such as de facto
postponements of principal or interest payments,
or problems with their financial positions as aresult of their poor or unstable business conditions.
Obligors who are not yet bankrupt but are in
financial difficulties and are deemed to be very
likely to go bankrupt in the future because they arefinding it difficult to make progress in implementing
their management improvement plans (including
obligors who are receiving ongoing support fromfinancial institutions).

Category II

Non-Accrual,
Past Due &Restructured Loans

Normal Claims

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

Credit to
obligors whichhas pledged
collateral or iscovered byguarantees,considered ofhigh quality,
such as deposit
collateral.

Claims Disclosed
under the FRA

Claims forSpecialAttention

Credit given to
Intensive Control
Obligors otherthan thoseincluded in
Category I and
Category II.
Credit to
obligors whichis covered bygeneralcollateral, suchas real estateand guarantees.

The difference
between theassessed value
and market valueof collateral on
credit to Bankrupt
and Substantially
Bankrupt Obligors(i.e., the portionof loans for which
final collection
problems orlosses are
anticipated).

Restructured
Loans
Loans Past Duefor 3 Months or
MoreClaims with
Collection Risk

Credit to
Bankrupt andSubstantially
Bankrupt
Obligors, otherthan those in
Category I,
Category II and
Category III(credit that isjudged to be
unrecoverable
or without
value).

Non-Accrual
Delinquent
Loans

Claims against
Bankrupt andSubstantially
Bankrupt
Obligors, andequivalent

Loans toBankrupt
Obligors

2017 Integrated Report112Appendix

Method for Reserves and Write-Offs
NormalObligors

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

Watch
Obligors

Calculate the estimated loss on loans based on the probability of failure over the next three years and appropriate it for the General Reserve 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

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 theobligor to pay, or b) the estimated loss calculated on the basis of the balance and the probability of failure over the next three years.
Further, for obligors with large claims more than a certain amount, if the cash flow from the return of principal and interest payments can reasonably be
estimated, set up a reserve under the DCF method.

Substantially
Bankrupt Obligors
Bankrupt Obligors

Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of theclaims for Specific Reserve for Possible Losses on Loans, or write-off the entire balance.

Self-assessment, Reserves for Loan Losses, Off-balance Sheet

Credit Review

Instruments and Write-offs

Prevention of new non-performing loans through routine credit

We conduct self-assessment of assets to ascertain the status ofmanagement is important in maintaining the quality of our overall

assets both as an integral part of credit risk management and inloan assets. Credit review involves analysis and screening of each

preparation for appropriate accounting treatment, including reserves

potential transaction within the relevant business department. In casefor loan losses and off-balance-sheet instruments and write-offs.

the screening exceeds the authority of the department, the credit

During the process of self-assessment, obligors are categorized into

group at headquarters carries out the review. The credit group has

certain groups taking into consideration their financial condition andspecialist departments for different industries, business sizes andtheir ability to make payments, and credit ratings are assigned toregions, carries out timely and specialized examinations based on

all obligors, in principle, to reflect the extent of their credit risks. The

the characteristics of the customer and its market, and provides

related assets are then categorized into certain classes based on theappropriate advice to the business department. In addition, in therisk of impairment. This process allows us to identify and control thecase of obligors with low obligor ratings and high downside risks, theactual quality of assets and determine the appropriate accounting

business department and credit department jointly clarify their credit

treatment, including reserves for loan losses and off-balance-sheet

policy and in appropriate cases assist obligors at an early stage ininstruments and write-offs. Specifically, the credit risk management

working toward credit soundness.

department of each bank is responsible for the overall control ofthe self-assessment of assets of the respective banks, cooperatingwith the administrative departments specified for each type of asset,
including loan portfolios and securities, in executing and managing
self-assessments.

113

Mizuho Financial GroupAppendix Risk Management Structure

Portfolio Management

Loss Distribution

Risk Measurement
We use statistical methods to manage the possibility of losses byFrequency

measuring the expected average loss for a one-year risk horizon

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

Average(Expected Loss) and the maximum loss within a certain confidence
interval (“credit Value-at-Risk (VaR)”). The difference between
expected loss and credit VaR is measured as the credit risk amount(Unexpected Loss).
In establishing transaction spread guidelines for credit
transactions, we aim to ensure an appropriate return from thetransaction in light of the level of risk by utilizing credit cost data

Loss Amountas a reference. Also, we monitor our credit portfolio from various
Credit VaRperspectives and set guidelines noted below so that losses incurred
through a hypothetical realization of the full credit VaR would be within

Unexpected Loss

Expected Lossthe amount of risk capital and loan loss reserves.

Risk Control Methods
We recognize two types of risk arising from allowing unexpected
loss to become too large. One type is “credit concentration risk,”
which stems from granting excessive credit to certain individual
counterparties or corporate groups. The other type is “chain-reaction
default risk,” which arises from granting excessive credit to certain
areas, industrial sectors and other groupings. We make appropriate
management to control these risks in line with our specific guidelines
for each. The individual risk management departments of the twobanks are responsible for monitoring adherence to these guidelines
and reporting to their respective business policy committees (pleaserefer to Allocation of Risk Capital and Control of Credit Risk).

Allocation of Risk Capital and Control of Credit Risk
Allocation of risk capital

Credit VaR

Credit concentration risk
1 Individual company credit
guidelines
2 Corporate group-based credit
guidelines
MHBK: Sets 1 2 3 4
MHTB: Sets 1 2 4Equivalent to credit concentration risk amounts

Chain reaction default risk

Control

3 Geographical area/country-based
credit guidelines
4 Industrial sector-based credit
guidelines

Equivalent to chain reaction default risk amounts

2017 Integrated Report114

Appendix

Market and Liquidity Risk Management
Basic Approach
We define market risk as the risk of losses incurred by the group due

the risk of losses arising from funding difficulties due to a deterioration

to fluctuations in interest rates, stock prices and foreign exchange

in our financial position that makes it difficult for us to raise necessary

rates. Our definition includes the risk of losses incurred when it

funds or that forces us to raise funds at significantly higher interest

becomes impossible to execute transactions in the market becauserates than usual. MHFG manages market and liquidity risk for theof market confusion or losses arising from transactions at prices thatgroup as a whole.

are significantly less favorable than usual. We define liquidity risk as

Market Risk Management StructureMarket Risk Management of MHFG

Market Risk Management at Our Core Group Companies

Our Board of Directors determines basic matters pertaining to market

MHBK, MHTB, MHSC and Mizuho Americas, which account forrisk management policies. The Risk Management Committee ofmost of the group’s exposure to market risk, have formulated their

MHFG broadly discusses and coordinates matters relating to basic

basic policies in line with the basic policies determined by MHFG.

policies in connection with market risk management, market risk

Their Boards of Directors determine important matters relating tooperations and market risk monitoring. The Group CRO of MHFG ismarket risk management while their Chief Executive Officers are

responsible for matters relating to market risk management planningresponsible for controlling market risk. Their respective businessand operations.

policy committees, including their Balance Sheet & Risk Management

The Risk Management Department of MHFG is responsible
for monitoring market risk, reports and analyses, proposals, settingof market risk management. Specifically, these committees

limits and guidelines, and formulating and implementing plans relating

discuss and coordinate matters relating to basic asset and liability

to market risk management. The Risk Management Department

management policies, risk planning and market risk management.

assesses and manages the overall market risk of the group. It also

The Chief Risk Officer of each subsidiary is responsible for matters

receives reports from our core group companies on their market risk

pertaining to planning and implementing market risk management.

management that enable it to obtain a solid grasp of the risk situation,

Based on a common group risk capital allocation framework, thesubmitting reports to the President & Group CEO on a daily basis andabove-mentioned companies manage market risk by setting limits

to our Board of Directors and the Executive Management Committee

according to the risk capital allocated to market risk by MHFG.

of MHFG on a regular basis.
To manage market risk, we set limits that correspond to risk

These companies have established specialized companywide
market risk management departments to provide integrated

capital allocations according to the risk profiles of our core groupmonitoring of market risk, submit reports, analyses and proposals,

companies and thereby prevent market risk from exceeding our

set limits and formulate and implement plans relating to market risk

ability to withstand losses based on our financial strength represented

management. The risk management departments of each company

by capital, etc. The amount of risk capital allocated to market risk

submit reports on the status of market risk management to theircorresponds to VaR and additional costs that may arise in order torespective Chief Executive Officers and top management on a dailyclose relevant positions. For trading and banking activities, we set

basis, and to their Board of Directors and Executive Management

limits for VaR and for losses. For banking activities, we set position

Committee on a regular basis. They also provide regular reports tolimits based on interest rate sensitivity as needed.

MHFG. To provide a system of mutual checks and balances in market

These limits are discussed and coordinated by the Risk

115

Committees, are responsible for overall discussion and coordination

operations, they have established middle offices specializing in risk

Management Committee, discussed further by the Executive

management that are independent of their front offices, which engage

Management Committee, then determined by the President & Group

in market transactions, and their back offices, which are responsible

CEO. Various factors are taken into account including businessfor book entries and settlements. When VaR is not adequate tostrategies, historical limit usage ratios, risk-bearing capacity (profits,

control risk, the middle offices manage risk using additional risk

total capital and risk management systems), profit targets and theindices, carry out stress tests and set stop loss limits as needed. They

market liquidity of the products involved.

monitor their market liquidity risk for individual financial products in the

Mizuho Financial Groupmarket while taking turnover and other factors into consideration.

Appendix Risk Management Structure

The following graph shows VaR figures of our trading activities

Status of MHFG’s Market Riskfor the fiscal year ended March 31, 2017:

Value-at Risk
We use the VaR method, supplemented with stress testing, as ourprincipal tool to measure market risk. The VaR method measuresthe maximum possible loss that could be incurred due to market
movements within a certain time period (or holding period) andFiscal 2016 VaR (Trading Activities)(VaR: JPY billions)8degree of probability (or confidence interval).
6

Trading Activities 
VaR related to our trading activities is based on the following:4• historical simulation method;• confidence interval: one-tailed 99.0%;

2• holding period of one day; and• historical observation period of three years.
by risk category for the fiscal years ended March 31, 2015, 2016 and2017 and as of March 31, 2015, 2016 and 2017:04/01/2016
04/15/2016
04/29/2016
05/13/2016
05/27/2016
06/10/2016
06/24/2016
07/08/2016
07/22/2016
08/05/2016
08/19/2016
09/02/2016
09/16/2016
09/30/2016
10/14/2016
10/28/2016
11/11/2016
11/25/2016
12/09/2016
12/23/2016
01/06/2017
01/20/2017
02/03/2017
02/17/2017
03/03/2017
03/17/2017
03/31/2017

0

The following tables show the VaR related to our trading activities

The following table shows VaR figures of our trading activities for

VaR by Risk Category (Trading Activities)(JPY billions)the fiscal years indicated:

Fiscal 2014
Daily average

Maximum

Minimum

At March 31

VaR (Trading Activities)(JPY billions)Fiscal 2014

Fiscal 2015

Fiscal 2016

ChangeAs of fiscal year end

6.5

2.0

2.6

0.5

0.3

Maximum

7.1

4.5

5.8

1.3

3.1

1.8

2.3

0.5

4.4

2.9

3.3

0.4

Interest rate

1.8

2.6

1.4

1.5

Foreign exchange

3.0

5.8

1.6

5.6

Equities

0.5

1.3

0.2

Commodities

0.0

0.0

0.0

0.0

Minimum

Total

4.4

7.1

3.1

6.5

Average

Fiscal 2015
Daily average

Maximum

Minimum

At March 31

Interest rate

1.8

3.7

0.6

1.1

Foreign exchange

0.9

2.3

0.2

0.3

Equities

0.6

2.5

0.1

0.3

Commodities

0.0

0.0

0.0

0.0

Total

2.9

4.5

1.8

2.0

Fiscal 2016
Daily average

Maximum

Minimum

At March 31

Interest rate

2.0

3.6

1.0

1.0

Foreign exchange

0.5

1.6

0.1

0.1

Equities

0.4

3.2

0.1

0.9

Commodities

0.0

0.0

0.0

0.0

Total

3.3

5.8

2.3

2.6

2017 Integrated Report116Appendix• The use of a 99.0% confidence level does not take account of,

Non-Trading Activities 
The VaR related to our banking activities is based on the same

nor makes any statement about, any losses that might occur

conditions as those of trading activities, but the holding period is one

beyond this confidence level.
• VaR does not capture all complex effects of various riskmonth.

factors on the value of positions and portfolios and could

The following graph shows the VaR related to our banking
activities excluding our cross-shareholdings portfolio for the year

underestimate potential losses.
We also conduct interest sensitivity analyses of interest risk, ourended March 31, 2017.

main source of market risk. The following table shows sensitivity to
yen interest risk in our banking activities as of the dates indicated.

Fiscal 2016 VaR (Banking Activities)

Interest rate sensitivity (10 BPV) shows how much net present value

VaR
Interest rate on five-year government bonds(VaR: JPY billions)

(%)

400

0.5

300

0.25

200

0.0

100

-0.25

0

-0.5

varies when interest rates rise by 10 basis points (0.1%), and it
explains the impact of interest rate movements on net present value
when short- and long-term interest rates behave differently.

Interest Sensitivity by Maturity
At March 31 (JPY billions)

04/01/2016
04/15/2016
04/29/2016
05/13/2016
05/27/2016
06/10/2016
06/24/2016
07/08/2016
07/22/2016
08/05/2016
08/19/2016
09/02/2016
09/16/2016
09/30/2016
10/14/2016
10/28/2016
11/11/2016
11/25/2016
12/09/2016
12/23/2016
01/06/2017
01/20/2017
02/03/2017
02/17/2017
03/03/2017
03/17/2017
03/31/2017

2015

2016

2017

ChangeUp to one year

(1)

(2)

(4)

(1)

From one to five years

(35)

(21)

(8)

12

Over five years

(14)

(25)

(27)

(1)

Total

(51)

(50)

(40)

9

The following table shows the VaR figures relating to our banking
activities for the fiscal years indicated:

Cross-shareholding Portfolio Management Activities
We take the market risk management approach with use of VaR andVaR (Banking Activities)
Fiscal 2014

(JPY billions)Fiscal 2015

Fiscal 2016

Changeas well as for trading activities and non-trading activities. The risk

As of fiscal year end

325.6

321.5

292.7

(28.7)

index for cross-shareholdings portfolio management for the fiscal

Maximum

349.0

360.6

397.5

36.9

year ended March 31, 2017, consisting of the sensitivity of the cross-

Minimum

265.0

190.0

247.4

57.4

shareholdings portfolio to a 1% change in the equity index of TOPIX,

Average

307.9

284.9

331.0

46.1

was JPY31.7 billion.

Characteristics of VaR Model 
VaR is a commonly used market risk management technique.
However, VaR models have the following shortcomings:• By its nature as a statistical approach, VaR estimates possible
losses over a certain period at a particular confidence level
using past market movement data. Past market movement,
however, is not necessarily a good indicator of future events,
particularly potential future events that are extreme in nature.
• VaR may underestimate the probability of extreme market
movements.

117

risk indices for cross-shareholdings portfolio management activities

Mizuho Financial Group

Back Testing and Stress Testing
In order to evaluate the effectiveness of market risk measurements
calculated using the VaR method, we carry out regular back tests tocompare VaR with assumptive profits and losses. Assumptive profits
and losses accounts for general market risk. The following graphshows daily VaR of trading activities (based on the Basel regulatory
framework) for the fiscal year ended March 31, 2017, and thecorresponding paired distribution of profits and losses. We had zerocase where losses exceeded VaR during the period. In addition, we
conduct evaluations of the assumptions related to the VaR models.

Appendix Risk Management Structure

Based on the number of times losses exceeded VaR through backtesting and the results of the evaluation of the model assumptions,Fiscal 2016 Stress Testing
At March 31, 2017 (JPY billions)

we will make adjustments to the models as appropriate. We changed
our VaR models from the variance co-variance model to the Historical
Simulation method, which has been used since the beginning of theAssumed maximum loss result calculated by stress testing(holding period: one month)25.2

fiscal year ended March 31, 2017. Changes to fundamental portionsof the VaR models are subject to the approval of our Group CRO.

Outlier Criteria
As part of the capital adequacy requirements under Basel Regulatory
Fiscal 2016 Back Testing

Framework, the losses arising from a banking book in hypothetical

Assumptive profit or loss (JPY billions)
6interest rate shock scenarios under certain stress conditions arecalculated and compared with broadly-defined capital. If the interest
rate risk of the banking book leads to an economic value decline of4

more than 20% of broadly-defined capital, we will be deemed an
2“outlier” and may be required to reduce the banking book risk or
adopt other responses. We measure losses arising from our banking

0book each month as a part of our stress tests.
(2)

The table below shows the results of calculations of losses in thebanking book in cases where interest rate fluctuations occur under(4)

stress conditions. The results of calculations of losses in the banking
(6)

0

1

2

3

4

5
6
VaR (JPY billions)

Note: We conduct our back testing and assess the number of cases where losses exceed
VaR based on a 250 business day year. The expected average number of instanceswhere one-day trading losses exceeded VaR at the 99% confidence level is 2.5.

Because the VaR method is based on statistical assumptions,
we conduct stress testing to simulate the levels of losses that could

book show that they are 3.5% of broadly-defined capital. Because
the amount of risk on the banking book is therefore well under the
20% threshold and within controllable limits, we do not fall under the“outlier” category.

Fiscal 2016 Results of Calculations under the Outlier Framework(JPY billions)be incurred in cases where the market moves suddenly to levels
Amountof lossthat exceed these assumptions. The stress testing methods weuse include the calculation of losses on the basis of the largest
fluctuations occurring over a period of more than five years and thecalculation of losses based on market fluctuations occurring duringhistorical market events. The following table shows the assumed
maximum loss results of stress testing in trading activities using themethods described above:

Broadly-defined
capitalLossratio tocapital

At March 31, 2015

529.2

9,508.4

5.5%

At March 31, 2016

516.6

9,638.6

5.3%

At March 31, 2017

361.2

10,050.9

3.5%

Effect of yen interest rate

60.4

Effect of dollar interest rate

245.1

Effect of euro interest rate

17.3

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 istreated accordingly in the calculation.
2. For the interest rate shock scenario used in connection with the above figures, we
generate annual rate fluctuation data for five years derived from daily raw historicalinterest rate data of the past six years and then apply the actual fluctuation data,
which show a rise in interest rates, at a 99.0% confidence level to the shock
scenario.

2017 Integrated Report118

Appendix

The following table shows total market risk equivalent as of theMarket Risk Equivalent
In order to calculate the amount of capital necessary to meet

dates indicated calculated using the standardized measurement

the capital requirements relating to market risk (the “market risk

method and internal models:equivalent”), we apply internal models to calculate general market
Fiscal 2016 Market Risk Equivalentrisk (risks related to factors that apply generally to the market,
e.g., interest rates, foreign exchange rates) and the standardized

2016

measurement method to calculate specific risks (risks other thanAt March 31 (JPY billions)

2017

ChangeCalculated using standardized
measurement method

70.6

103.6

32.9

applied to trading transactions with market liquidity based on the

Calculated using internal
models

65.0

78.9

13.9

relevant holding period.

Total market risk equivalent

135.6

182.6

46.9

general market risk, e.g., credit quality and market liquidity of anindividual security or instrument). In addition, our internal models are

Under the internal models, the market risk equivalent isexpressed as the sum of:
The higher of (i) VaR on the calculation date and (ii) the averageof VaR for the preceding 60 business days (including the calculationdate) 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; and The higher of (i) stressed VaR on thecalculation date and (ii) the average of stressed VaR for the preceding
60 business days (including the calculation date) multiplied by thesame multiplication factor as used in the bullet point above.

Note: VaR and stressed VaR used to calculate market risk equivalent isbased on the following:VaR• historical simulation method;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of three years.
Stressed VaR• historical simulation method;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of one year.

Liquidity Risk Management Structure
To manage liquidity risk, we use indices pertaining to cash flow,

Liquidity Risk Management of MHFG
Our Board of Directors determines basic matters pertaining to liquidity

such as limits on funds raised in the market that are set based onrisk management policies. The Risk Management Committee ofa number of time horizons. Limits on liquidity risk set for Japanese

MHFG broadly discusses and coordinates matters relating to basic

yen and foreign currencies taking into account characteristics

policies in connection with liquidity risk management, operations,and strategies of each core group companies, are discussed andmonitoring and proposes responses to emergencies such as sudden

coordinated by the Risk Management Committee, discussed further

market changes. The Group CRO of MHFG is responsible for mattersby the Executive Management Committee and determined by the

relating to liquidity risk management planning and operations. The

President & Group CEO. In addition, our core group companies

Risk Management Department of MHFG is responsible for monitoring

set limits on liquidity risk for several currencies. Moreover, they are

liquidity risk, reports and analyses, proposals, and formulating andworking on measures to reduce their liquidity risk such as enhancing

implementing plans relating to liquidity risk management.

management related to local currencies.
We have established a group-wide framework of liquidity risk

In addition, the Group CFO of MHFG is additionally responsible
for matters relating to planning and running cash flow management

stage such as “Normal,” “Anxious” and “Crisis,” which reflects funding

operations, and the Financial Planning Department is responsible

conditions. In addition, we set Early Warning Indicators (“EWIs”) andfor monitoring and adjusting the cash flow management situation

monitor on a daily basis to manage liquidity conditions. As EWIs, weand for planning and implementing cash flow management toselect stock prices, credit ratings, amount of liquidity reserve assets

maintain appropriate funding liquidity. Reports on the liquidity risksuch as Japanese government bonds, our funding situations and so

management are submitted to the Risk Management Committee, theon.

Balance Sheet Management Committee, the Executive Management
Committee and the President & Group CEO on a regular basis.

119

Mizuho Financial GroupWe have established a liquidity contingency funding plan for
emergency situations which are deemed to fall into the “Anxious” orAppendix Risk Management Structure“Crisis.” In emergency situations, we will consider measures suchas sudden market changes. The Chief Risk Officer is responsible

as a reduction in the amount of investments made, an expansion offor matters relating to liquidity risk management planning andfunding from financial markets and deposits, the sale of investment

operations and the senior executives of the ALM and trading units are

securities and borrowings from the central bank.

responsible for matters pertaining to planning and conducting cash

In order to evaluate the sufficiency of liquidity reserve assets andthe effectiveness of liquidity contingency funding plan, we conduct

flow management.
The methodologies used for ensuring precise control of liquidity

stress testing under market-wide, idiosyncratic and combined

risk include the formulation of management indices pertaining to cash

scenario. Furthermore, we utilize stress testing for evaluating theflow, such as limits on funds raised in the market that are set based

appropriateness of our annual funding plan.

on a number of time horizons. As with MHFG, the previously
mentioned companies have established liquidity risk stage, such as

Liquidity Risk Management at Our Core Group Companies“Normal,” “Anxious” and “Crisis,” which reflects funding conditions

MHBK, MHTB, MHSC and Mizuho Americas have formulated theirand have established liquidity contingency funding plan for emergency

basic policies in line with the basic policies determined by MHFG.

situations which are deemed to fall into the “Anxious” or “Crisis”

Their Boards of Directors determine important matters relating tocategories.

liquidity risk management while their Chief Executive Officers are

Each subsidiary has adopted stringent controls that call for

responsible for controlling liquidity risk. Their respective businessthe submission of reports on liquidity risk management and cash

policy committees, including their Balance Sheet & Risk Management

flow management to their respective business policy committees,

Committees, are responsible for overall discussion and coordination

including their Balance Sheet & Risk Management Committees, theof liquidity risk management. Specifically, these committees

Executive Management Committee and the Chief Executive Officer ofdiscuss and coordinate matters relating to risk planning, cash flow

each subsidiary.

management planning and propose responses to emergencies such

Operational Risk Management
Basic Approach
We define operational risk as the risk of loss that we may incur

reputational risk. We have determined risk management policies forresulting from inadequate or failed internal processes, people andeach kind of risk. MHBK, MHTB, MHSC, TCSB, Mizuho Americas,

systems or from external events. We recognize that operational

etc., respectively manage operational risk in an appropriate mannerrisk includes information technology risk, operations risk, legal risk,

pursuant to risk management policies determined by MHFG.

human resources risk, tangible asset risk, regulatory change risk andOperational Risk Management Structure
MHFG, MHBK, MHTB, MHSC, TCSB, etc., share common rules fordata gathering, and we measure operational risk on a regular basis,

Glossary
Control Self-Assessments

taking into account possible future loss events and the changes in the

An autonomous method of risk management in which risk inherent inbusiness environment and internal management.

operations is identified and, after evaluating and monitoring risks that

We have established and are strengthening management
methods and systems to appropriately identify, assess, measure,remain despite implementing risk control, the necessary measures are
implemented to reduce risk.

monitor and control the operational risks which arise from thegrowing sophistication and diversification of financial operations anddevelopments relating to information technology by utilizing control
self-assessments and improving measurement methods.

2017 Integrated Report120Appendix

Definition of Risks and Risk Management Methods
As shown in the below table, we have defined each component ofoperational risk and we apply appropriate risk management methods
in accordance with the scale and nature of each risk.

Definition

Principal Risk Management Methods

Information
technology risk

Information technology risk (“IT risk”) shall refer to the risk thatproblems (e.g. malfunctions, disruptions, etc.) with thecomputer systems or improper use of the computers in thesesystems, which cause disruptions of the services provided tocustomers, or have significant impact on settlement systems,
etc., will result in losses for customers, and the incurrence oflosses (tangible or intangible) by our group companies.

• Identify and evaluate the risk by setting specific standards
that need to be complied with and implementing measures
tailored based on evaluation results to reduce the risk.
• Ensure ongoing project management in systems development
and quality control.
• Strengthen security to prevent information leaks.
• Strengthen capabilities for rapidly and effectively dealing withcyberattacks.
• Improve effectiveness of emergency responses by improving
backup systems and holding drills.

Operations risk

Risk that customers may suffer service disruptions, as well as
the risk that customers or the group may incur losses
because senior executives or employees fail to fulfill theirtasks properly, cause accidents or otherwise act improperly.

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation andcentralization for operations.
• Improve the effectiveness of emergency responses by holding
drills.

Legal risk

Risk that the group may incur losses due to violation of laws
and regulations, breach of contract, entering into improper
contracts or other legal factors.

• Review and confirm legal issues, including the legality ofmaterial decisions, agreements and external documents, etc.
• Collect and distribute legal information and conduct internal
training programs.
• Analyze and manage issues related to lawsuits.

Human
resources risk

Risk that the group may incur losses due to drain or loss of
personnel, deterioration of morale, inadequate developmentof human resources, inappropriate working schedule,
inappropriate working and safety environment, inequality or
inequity in human resource management or discriminatory
conduct.

• Conduct employee satisfaction surveys.
• Understand the status of working hours.
• Understand the status of vacation days taken by personnel.
• Understand the status of voluntary resignations.
• Understand the status of the stress check system.

Tangible asset
risk

Risk that the group may incur losses from damage to tangible
assets or a decline in the quality of working environment as aresult 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.

Regulatorychange risk

Risk that the group may incur losses due to changes invarious regulations or systems, such as those related to law,
taxation and accounting.

• Understand important changes in regulations or systems
that have significant influence on our business operations or
financial condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes andestablish countermeasures.
• Continuously monitor our regulatory change risk management
mentioned above.

Reputational
risk

Risk that the group may incur losses due to damage to ourcredibility or the value of the “Mizuho” brand when market
participants or others learn about, or the media reports on,
various adverse events, including actual materialization ofrisks or false rumors.

• Establish framework to identify and manage, on an integrated
basis, information that may have a serious impact ongroup management and respond to such risk in a manner
appropriate to its scale and nature.
• Swiftly identify rumors and devise appropriate responses
depending on the urgency and possible impact of the situation
to minimize possible losses.

We also recognize and manage Information Security Risk and Compliance Risk, which constitute a combination of more than one of the above components of operational risk, as
operational risk.

121

Mizuho Financial GroupAppendix Risk Management Structure

Measurement of Operational Risk Equivalent
Implementation of the AMA

data, based on our actual experience as operational loss events

We have adopted the AMA from September 30, 2009, for theand scenario data. Scenario data, expressed as numerical values ofcalculation of operational risk equivalent in association with capitaloccurrence frequency and loss severity, reflects external loss data

adequacy ratios based on Basel II. However, we use the Basicand BEICFs, in order to estimate unexperienced potential future loss

Indicator Approach (BIA) for entities that are deemed to be lessevents (of low frequency and high severity).

important in the measurement of operational risk equivalent and forFrequency Distribution and Severity Distribution are estimatedentities that are preparing to implement the AMA. The measurement

employing the above mentioned internal loss data and scenario data,

results under the AMA are used not only as the operational risk

and Monte-Carlo simulations are then applied to these distributions

equivalent in the calculation of capital adequacy ratios but also

to measure operational risk. The detailed steps of creation of scenario

as Operational VaR for internal risk management purposes fordata are explained later in Scenario Analysis.

implementing action plans to reduce operational risk, etc.

Estimation of Frequency Distribution and Loss Severity Distribution 
Outline of the AMA

Frequency Distribution is estimated by applying information on

Outline of Measurement System occurrence frequency of both internal loss data and scenario data to

We have established the model by taking account of four elements:

Poisson Distribution. Loss Severity Distribution is generated as theinternal loss data; external loss data; scenario analysis and businessresult of combining, through a statistical approach (Extreme Valueenvironment; and internal control factors (BEICFs). We calculate theTheory), of the actual distribution for the low severity distribution

operational risk equivalent amount by estimating the maximum loss

portion created by internal loss data and another loss distributionthusing a 99.9 percentile one-tailed confidence interval and a one-year(Log-normal Distribution or Generalized Pareto Distribution) for theholding period etc., employing both internal loss data (i.e., actuallyhigh severity distribution portion created by scenario data.

experienced operational loss events) and scenario data to reflect
unexperienced potential future loss events in the measurement.
In the measurement of operational risk equivalent as of MarchOperational Risk of Large-scale Natural Disasters Monte-Carlo simulation is applied to the datasets expressed as a31, 2017, we did not exclude expected losses and also did not

combination of the probability of occurrence of largescale natural

recognize the risk mitigating impact of insurance. In addition, we diddisasters and the probable loss amount in case of such occurrence,

not take into account the events related to credit risk in measuring

as opposed to estimating Frequency Distribution and Loss Severity

operational risk equivalent.

Distribution.

Outline of Measurement Model 

Operational Risk of Litigation 

Operational risk equivalent is calculated as a simple sum of those

Each litigation is converted into data according to the profile of therelated to the seven loss event types defined by Basel II, large-scale

individual litigation to which Monte-Carlo simulation is applied, as

natural disasters and litigation. In the measurement of operational risk

opposed to estimating Frequency Distribution and Loss Severity

equivalent as of March 31, 2017, we did not reflect the correlation

Distribution. In the measurement process, we assume that final

effects among operational risk related to each of the seven loss event

decisions will be made on all litigation within one year.

types.

Verification 
Operational Risk by the Loss Event Type 

We confirm the appropriateness of the measurement model by

Loss Distribution (Compound Poisson Distribution) Approach (LDA)

verifying it, in principle, semi-annually.

is adopted for the calculation of operational risk. LDA is based on
the assumption that Poisson Distribution applies to the occurrence

Scenario Analysis

frequency of operational risk events, and loss severity is expressed

Outline of Scenario Analysis through a separate distribution. Operational risk is calculated for

In the process of scenario analysis, scenario data is created aseach of the seven loss event types employing both internal loss

numerical values of occurrence frequency and loss severity reflecting

2017 Integrated Report122Appendix

Outline of Measurement Model

Internal loss data

Business environment andinternal control factors

External loss data

Litigation data

Scenario analysis

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Scenario data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Risk amount for external fraud

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products and business practices
Risk amount for damage tophysical assets

Risk amount

Risk amount for businessdisruption and system failure

Calculate risk amountby seven loss event
types defined by BIS

Risk amount for execution,delivery and process management

Operational VaR(Total operational risk amount)

external loss data and BEICFs, in order to estimate unexperienced

At MHFG, loss event types to which Approach A is applied

potential future operational risk events (of low frequency and highaccount for a considerable amount of operational risk. The detailed

severity).

process of Approach A is explained below as a typical example of

As for external loss data, we refer to data publicly reported byscenario analysis.

domestic and overseas media, and such data are reflected in theestimation of occurrence frequency and loss severity distribution in

Setting Units for Scenario Analysis the process of scenario analysis. In addition, BEICFs are utilized as

In order to ensure completeness and sufficiency, we set units that are

indices to adjust occurrence frequency and loss severity distributioncommonly applied across group entities that adopt AMA (hereinafter,in the process of scenario analysis.

the “Group Entities”) by referencing and categorizing risk scenarios

We categorize scenario analysis into four approaches inrecognized through control self-assessment, internal loss data of theaccordance with the characteristics of each loss event type and risk

Group Entities and external loss data, etc. Then each of the Groupmanagement structures.

Entities selects the unit on which scenario analysis is conducted fromthe units established on a group-wide basis in accordance with its

Approach

Loss event type(s) to be applied

A

Internal fraud/External fraud/Customers, products& business practices/Execution, delivery & process
management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failurebusiness activities and operational risk profile.

Estimation of Occurrence Frequency Basic occurrence frequency (once a year) is calculated for eachscenario analysis unit. If a certain scenario analysis unit has relevantinternal loss data of a pre-determined threshold amount or above, its
basic occurrence frequency is calculated based on such data, and if
not, the basic occurrence frequency (the occurrence frequency per
year of losses at or above a pre-determined threshold) is calculated

123

Mizuho Financial GroupAppendix Risk Management Structurewith reference to the situation of occurrence of internal loss data of

Creation of Scenario Data less than the threshold amount and/or external loss data. The basic

For each scenario analysis unit, scenario data is generated as seriesoccurrence frequency is then adjusted within a pre-determined rangeof combinations of occurrence frequency per year at each severity

for the purpose of reflecting the most recent BEICFs to determine therange, based on the final occurrence frequency and the final loss

final occurrence frequency.

severity distribution.

Estimation of Loss Severity Distribution 
In order to estimate loss severity distribution, we use a pre-determinedExample of Scenario Data
Final loss severity distribution

series of severity ranges. Basic loss severity distribution is calculated
for each scenario analysis unit as an occurrence ratio (in percentile

Severity range (JPY billions)figures) of loss at each severity range when losses at or above a pre-

0.1

0.5

1

5

Total

10

determined threshold occurred, with reference to transaction amountOccurrence ratio (%)

40

30

15

10

5

100

data, external loss data, etc. Then the basic severity distribution is

Occurrence frequency(times)

0.4

0.3

0.15

0.1

0.05

1

adjusted, if necessary, from the viewpoint of statistical data processing
to determine the final loss severity distribution.

Final occurrence frequency(As of July 1, 2017)2017 Integrated Report124Appendix

Business Continuity Management

In light of its social responsibility to play an important role in theanalyzing information, formulating countermeasures, etc. In addition,social infrastructure as a financial institution, Mizuho places priority

they will carry out activities such as collecting and analyzing signs

on securing an adequate level of continuity of financial settlement

and indicators of the crisis, and reporting to the management without

functions and the swift and efficient recovery of the business in the

delay.

event of an emergency. This is a basic policy of the group.
The group recognizes the risks of the occurrence of an

Committee as one of the Business Policy Committees for unified

emergency situation in advance. In order to swiftly take measures

improvement of business continuity management practices into mitigate the risks in the event of an emergency, we develop

the group. The committee makes preparations for minimizing theappropriate and effective countermeasures and a framework for

impact of an emergency, and for the swift and efficient recovery ofbusiness continuity management, ensures readiness for emergencies,

the business, by assessing the assumed impact of an emergency

and strives to disseminate these within the organization in times ofbeforehand and formulating necessary countermeasures.

normalcy.
Specifically, we established Crisis Management Offices in MHFG,

125

We have also established a Business Continuity Management

Particular focus is placed on strengthening our response fornatural disasters, covering not only earthquakes and tsunamis but

MHBK, MHTB, and MHSC that are responsible for responses inalso volcanic eruptions, large-scale wind or water damage, andthe event of emergency and business continuity management. The

facilitating initial response for terrorism and riots. The committee also

offices will function as a controller in the event of an emergency that

focuses on responses to cyberattacks that have been occurring withmay materially impact business management, by collecting andincreasing frequency throughout society.

Mizuho Financial GroupSenior Executives

Mizuho Financial Group
Members of the Board of Directors
Executive Officers as Defined in
the Companies Act

Executive Officers as Defined in
Our Internal Regulations andSpecialist Officers

Nobumitsu Watanabe

Satoshi Miyazaki

Yoshihito Bando

Yasuhiro SatoIn charge of Western Japan (Kinki, Chugoku, and Shikoku
regions)

Deputy Head of Asset Management Company

Hiroshi SuehiroManaging Executive Officer

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

Member of the Board of Directors
Managing Executive Officer

Head of Compliance Group (Group CCO)

Koichi Iida

Member of the Board of Directors
Managing Executive Officer

Deputy President & Executive Officer

Deputy President & Executive Officer
Head of the Americas

Yasuo Agemura

Senior Managing Executive Officer

Deputy Head of Global Corporate Company / Deputy Head of
Global Markets Company / Deputy Head of Global Products UnitManaging Executive Officer

Masashi Hara

Deputy Head of Global Products Unit

Isao Nakamura

Managing Executive Officer

In charge of Specific Business of Global Markets Company

Deputy Head of Corporate & Institutional Company /Deputy Chief Digital Innovation Officer

Takeshi Watanabe

Toshio Sobue

In charge of Specific Duties

Deputy Head of Risk Management Group / Deputy Headof Compliance Group

Senior Managing Executive Officer

Head of Strategic Planning Group (Group CSO)

Tetsuhiko Saito

Makoto Umemiya

In charge of Specific Business of Retail & Business Banking Company

Member of the Board of Directors
Managing Executive Officer

Managing Executive Officer

Senior Managing Executive Officer

Daisuke Yamada

Managing Executive Officer

Keisuke Saito

Managing Executive Officer
Deputy Head of Global Products UnitManaging Executive Officer

Hiroaki Ehara

Member of the Board of Directors
Managing Executive Officer

Haruki Nakamura

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

Head of Risk Management Group (Group CRO)

Joint Head of IT & Systems Group

Toshiro Egawa

Ryusuke Aya

Amane Oshima

Deputy Head of Retail & Business Banking Company

Head of Financial Control & Accounting Group (Group CFO)

Yasuyuki Shibata

Member of the Board of Directors

Chief Digital Innovation Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Deputy Head of Global Markets Company

Naoyuki Machinaga

Member of the Board of Directors

Koji Arita

Deputy Head of Research & Consulting Unit

Tetsuo Seki

Joint Head of Operations Group

Hiroto Koda

Akira Nakamura

Deputy Head of Human Resources Group

Nobukatsu Funaki

Member of the Board of Directors (Outside Director)

Takashi Kawamura

Member of the Board of Directors (Outside Director)

Tatsuo Kainaka

Member of the Board of Directors (Outside Director)

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

In charge of Specific Business of Corporate & Institutional Company

Naofumi Fuke

Teiji Teramoto

Deputy Head of Retail & Business Banking Company

Managing Executive Officer

Managing Executive Officer

Hirotake Abe

In charge of Specific Business of Global Corporate Company

Toshio Hirota

Shingo Asano

Deputy Head of Corporate & Institutional Company

Hiroko Ota

Managing Executive Officer

Izumi Kobayashi

Seiji Imai

Member of the Board of Directors (Outside Director)
Member of the Board of Directors (Outside Director)
Member of the Board of Directors (Outside Director)

Toshitsugu Okabe

Deputy President & Executive Officer(Representative Executive Officer)

In charge of Specific Business of Retail & Business Banking Company

Managing Executive Officer

Head of Asia & Oceania excl. East Asia

Takahiko YasuharaManaging Executive Officer

Head of Retail & Business Banking Company

Head of East Asia

Daisaku Abe

Motonori Wakabayashi

Deputy President & Executive Officer
Head of IT & Systems Group (Group CIO) / Head ofOperations Group (Group COO)

Kosuke Nakamura

Deputy President & Executive Officer

Head of Corporate & Institutional Company

Akira Sugano

Deputy President & Executive Officer
Head of Global Corporate Company

Junichi Kato

Senior Managing Executive Officer
Head of Global Markets Company

Katsunobu Motohashi

Senior Managing Executive Officer

Managing Executive Officer

Deputy Head of Research & Consulting Unit

Koji Yonei

Managing Executive Officer

Head of Internal Audit Group (Group CA)

Shuji Kojima

Managing Executive Officer

Head of Human Resources Group (Group CHRO)

Shinji Taniguchi
Managing Executive Officer

Kenji Tsujitsugu

Managing Executive Officer

Deputy Head of Corporate & Institutional Company

Masaya Oishi

Managing Executive Officer

Deputy Head of Asset Management Company

Taiji KumagaiManaging Executive Officer

Deputy Head of Compliance Group

Deputy Head of Global Corporate Company / Deputy
Head of Global Products Unit / Deputy Head of Strategic
Planning Group / Deputy Head of Financial Control &Accounting Group / Deputy Chief Digital Innovation Officer

Managing Executive Officer

Deputy Head of Global Markets Company

Hisaaki Hirama

Managing Executive Officer

Managing Executive Officer

Kenji Fujii

Naoto Takahashi

Deputy Head of Research & Consulting Unit / Deputy Headof Risk Management Group

Deputy Head of Internal Audit GroupManaging Executive Officer

Hiroshi Itabashi

Managing Executive Officer

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

Masatoshi Yoshihara

Keiichiro Ogushi

Tsutomu Nomura

Managing Executive Officer

Atsushi Takahashi

Joint Head of Strategic Planning Group / General Manager
of Next–Generation IT Systems Coordination Project Team

Head of Research & Consulting Unit

Tatsuya Yamada

Joint Head of IT & Systems Group / General Manager of IT& Systems Planning Department

Head of Asset Management Company

Senior Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Hideyuki Kawashima

Managing Executive Officer

Deputy Head of Internal Audit GroupManaging Executive Officer

Yuzo Kanamori

Hiroshi Nagamine

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

Head of Europe, Middle East and Africa

Asashi Katou

Kazuhisa Sawa

General Manager of IT & Systems Promotion Department

In charge of Specific Business of Retail & Business Banking Company

Managing Executive Officer

Managing Executive Officer

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

Executive Officer

Eishi Shimizu

Executive Officer

General Manager of Channel Strategy Department

Head of Global Products Unit2017 Integrated Report126Masahiko Abe

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Hisashi Kikuchi

Ryusuke Aya

Executive Officer

General Manager of Corporate Secretariat

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Riki Shibata

Isao Imai

Executive Officer

General Manager of Global Markets Coordination Department

Bo Kusanagi

Executive Officer

General Manager of Asset Management Coordination Department

Akihito Mochizuki
Executive Officer

General Manager of Planning Administration Department

Hiroyuki Iijima

Mizuho Securities
Members of the Board of Directors
Yasuhiko Imaizumi
Chairman

Tatsufumi Sakai*Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)President & CEO (Representative Director)

Yukio Machida

Deputy President (Representative Director)

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Toshio Kinoshita

Hiroto Koda*

Head of Human Resources Group / In charge of Executive
Secretariat / In charge of Markets Strategic Intelligence
Dept. / Attached to Strategic Planning Group

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Yasuo Agemura*Seiji Koga

Head of Global Markets / Head of Global Markets Division

Deputy President

Executive Officer

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Naofumi Fuke*

Head of Retail & Business Banking Division

Masaomi Takada

Executive Officers(Head of Each Region Overseas)

General Manager of Executive Secretariat

Hiroshi Suehiro

Head of Global Investment Banking Division

Shinya Uda

Head of the Americas

Executive Managing Director

General Manager of Retail & Business Banking
Coordination Department

Executive Officer

Senior Executive Managing Director

Toshio Hirota*

Senior Executive Managing Director

Deputy President & Executive Officer

Masaya Oishi*

General Manager of Global Talent Planning and Management Department

Takahiko Yasuhara

In charge of JA Sales Dept. of Global Markets Division / In
charge of Retail & Business Banking Division

Daisuke Horiuchi

Head of East Asia

Taiji Kumagai*

General Manager of Branch Banking Department

Seiji ImaiHead of Global Compliance / Head of Compliance Group

Takuya Ito

Head of Asia & Oceania excl. East Asia

Atsushi Takahashi*

General Manager of Global Corporate Coordination Department

Hiroshi Nagamine

Masahiko Kato

Head of Europe, Middle East and Africa

Head of Global Finance / Head of Strategic PlanningGroup / Head of Financial Control & Accounting Group / In
charge of Investment Dept.

Executive Officer

Executive Officer

Executive Officer

Specialist Officer

General Manager for IT & Systems Group

Yasumasa Mukai
Specialist Officer

General Manager for IT & Systems GroupManaging Executive Officer

Managing Executive Officer

Managing Executive Officer

Mizuho Trust & Banking
Members of the Board of Directors
Takeo Nakano

Executive Managing Director

Executive Managing Director

Kenji Fujii*

Executive Managing Director

Head of Global Risk Management / Head of Research &Consulting Unit /Head of Risk Management Group / In
charge of Due Diligence Dept.

Mizuho Bank
Members of the Board of Directors

Chairman

Hideyuki Kawashima*

Tetsuo Iimori*Executive Managing Director

President & CEO (Representative Director)

SC Group Chief Audit Executive / Head of Internal Audit Group

Nobuhide Hayashi

Kazuhisa Sawa*

Yasuhiro Sato

Koji Fujiwara*

Hidetaka Kawakita

President & CEO (Representative Director)

Head of Strategic Planning, Financial Control & Accounting
Group / Head of IT & Systems Group / Head of Operations
Group / In charge of Executive Secretariat

Satoshi Miyazaki*

Toshio Sobue*

Yasushi Higo

Chairman

Deputy President (Representative Director)
In charge of Western Japan (Kinki, Chugoku, and Shikoku

Deputy President (Representative Director)

Executive Managing Director

regions)

Head of Risk Management Group / Head of ComplianceGroup / Head of Credit GroupKiyoshi Miyake*

Hiroaki Ehara*

Head of Business Promotion

Head of Human Resources Group / Head of Internal Audit Group

Shusaku Tsuhara*

Yasuhiro Sato

Head of Business Promotion

Masaru Ono

Deputy President (Representative Director)

Deputy President (Representative Director)

Takanori Nishiyama*

Executive Managing Director
Head of Compliance Group

Koichi Iida*

Executive Managing Director

Member of the Board of Directors

Member of the Board of Directors (Audit & Supervisory
Committee Member)Head of Financial Control & Accounting Group

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Yasuyuki Shibata*

Masayuki Satake

Head of Risk Management Group

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Yasuhiro Sato

Kiyotaka Fuke

Masayuki Yonetani

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Mizuho Financial Group

Takehiko Iida

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Hideo Etani

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Yuji Yoshimasu
Masaru Ono

Member of the Board of Directors (Outside Director)

Hiroyuki Hatano

Member of the Board of Directors

Member of the Board of Directors (Audit & Supervisory
Committee Member)

Eiji Ogawa

Makoto Umemiya*

Executive Managing Director

Member of the Board of Directors (Outside Director)

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Masato Monguchi

Executive Managing Director

Member of the Board of Directors

Member of the Board of Directors (Outside Director)

Executive Managing Director

Head of Strategic Planning Group127

Yuta Chiba

General Manager of Corporate & Institutional Coordination Department

Executive Officer

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Ryuta Nakajima

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)

Member of the Board of Directors (Outside Director)(Audit & Supervisory Committee Member)
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 of Mizuho Bank, have not been listed.
3. Executive officers, excluding the directors
concurrently serving as executive officers of Mizuho
Trust & Banking and Mizuho Securities, have notbeen listed.
(As of June 23, 2017)

Location of Offices outside Japan (As of June 30, 2017)
Network of Mizuho Bank
Asia and Oceania(Country/Region)
Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
TEL 61-2-8273-3888

Mizuho Australia Ltd.

Level 33, 60 Margaret Street, Sydney, N.S.W. 2000, Australia
TEL 61-2-8273-3888

Cambodia

Phnom Penh Branch
13A Floor, Phnom Penh Tower, #445,
Monivong Blvd (St. 93/232) Sangkat Boeung Pralit,
Khan 7 Makara, Phnom Penh, Cambodia
TEL 855-23-964-490

China

Mizuho Bank (China), Ltd.
23rd Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area, Shanghai
200120, The People’s Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Shanghai Pilot Free Trade Zone Sub-Branch
Room 01, 08, 09, 10, 11, 12, 7F, Shanghai International
Communication and Trade Building, 55 Jilong Road,
Shanghai 200131, The People’s Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Beijing Branch

8th Floor, West Wing, World Financial Center,
No. 1 Dong San Huan Zhong Road, Chaoyang District,
Beijing 100020, The People’s Republic of China
TEL 86-10-6525-1888

Mizuho Bank (China), Ltd.
Dalian Branch

23rd Floor, 24th Floor-A, Senmao Building,
147 Zhongshan Road, Xigang District,
Dalian, Liaoning Province 116011,
The People’s Republic of China
TEL 86-411-8360-2543

Mizuho Bank (China), Ltd.
Guangzhou Branch

25th Floor, International Finance Place, No. 8 Huaxia Road,
Zhujiang New Town, Tianhe District, Guangzhou,
Guangdong Province 510623,
The People’s Republic of China
TEL 86-20-3815-0888

Mizuho Bank (China), Ltd.
Hefei Branch

Room No. 1902-1907, No. 7 Office Building Wanda Plaza,
130 Maanshan Street, Baohe District, Hefei,
Anhui Province, The People’s Republic of China
TEL 86-551-6380-0690

Mizuho Bank (China), Ltd.
Qingdao Branch

44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District, Qingdao,
Shandong Province 266071,
The People’s Republic of China
TEL 86-532-8097-0001

Mizuho Bank (China), Ltd.
Shenzhen Branch

30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People’s Republic of China
TEL 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch

17th Floor, Genway Building, 188 Wangdun Road,
Suzhou Industrial Park, Suzhou, Jiangsu Province 215123,
The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Branch

5th Floor, E2 ABC, East Wing Binhai Finance Zone,
No. 20 Xinchengdong Road, TEDA, Tianjin 300457,
The People’s Republic of China
TEL 86-22-6622-5588

Mizuho Bank (China), Ltd.
Wuhan Branch

5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People’s Republic of China
TEL 86-27-8342-5000

Mizuho Bank (China), Ltd.
Wuxi Branch

8th Floor, Wuxi SI Park B, No. 16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People’s Republic of China
TEL 86-510-8522-3939

Mizuho Bank (China), Ltd.
Changshu Sub-Branch

Room701-704, Kechuang Building, No. 333 Dongnan Road,
Changshu New & Hi-tech Industrial Development Zone,
Jiangsu Province, 215500, The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

22nd Floor, International Business Building of Gugeng,
No. 81 Hongmei Area, Dalian Economic & Technological
Development Area, Dalian, Liaoning Province 116600,
The People’s Republic of China
TEL 86-411-8793-5670

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch

Room D,E, 18th Floor, Dongan Building,
No. 258 Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People’s Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Tianjin Heping Sub-Branch

Room 1902, Tianjin International Building,No. 75 Nanjing Road, Heping Area, Tianjin 300050,
The People’s Republic of China
TEL 86-22-6622-5588

Nanjing Representative Office

Room 2220, Suning Universal Hotel, 188 Guangzhou Road,
Nanjing, Jiangsu Province 210024,
The People’s Republic of China
TEL 86-25-8332-9379

Xiamen Representative Office

Room 2102, The Bank Center, No. 189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People’s Republic of China
TEL 86-592-239-5571

Hong Kong
Hong Kong Branch
17th Floor, Two Pacific Place, 88 Queensway, Hong Kong,
S.A.R., The People’s Republic of China
TEL 852-2103-3000

Kowloon Sub-Branch

16th Floor, Sun Life Tower, The Gateway,
Tsim Sha Tsui, Kowloon,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2102-5399

Mizuho Capital Markets (HK) Limited

16th Floor, Two Pacific Place, 88 Queensway, Hong Kong,
S.A.R., The People’s Republic of China
TEL 852-2537-3815

India
Bangalore-Devanahalli Branch#462/440/339, 2nd Floor, Near Jain Temple, N.H.7/4-207,
B.B. Road, Vijayapura Cross, Devanahalli Town,
Bangalore Rural District - 562 110, Karnataka, India
TEL 91-80-4968-2000

Chennai Branch

Unit No. 11B, 11th Floor, Prestige Palladium Bayan,Nos. 129 to 140, Greams Road, Chennai – 600 006,
Tamil Nadu, India
TEL 91-44-4928-6600

Mumbai Branch

Level 17 TOWER–A Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
TEL 91-22-4911-2000

New Delhi Branch

1st Floor, DLF Capitol Point, Baba Kharag Singh Marg,
Connaught Place, New Delhi, 110001, India
TEL 91-11-3041-0900

Ahmedabad Branch

Office No. 402, 4th Floor, Commerce House–5,
Nr. Vodafone House, Prahladnagar Corporate Road,
Prahladnagar Satellite, Ahmedabad–380 051, India
TEL 91-79-4014-4666

Indonesia
PT. Bank Mizuho Indonesia
Sinar Mas Land Plaza Menara 2, 24th Floor,
Jl. M. H. Thamrin No. 51, Jakarta 10350,
Republic of Indonesia
TEL 62-21-392-5222

Korea
Seoul Branch
19th Floor, Seoul Finance Center, 136, Sejong-daero,Jung-gu, Seoul, Korea
TEL 822-3782-8500

Malaysia
Labuan Branch
Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka,
87000 Federal Territory of Labuan, Malaysia
TEL 60-87-417766

Labuan Branch, Kuala Lumpur
Marketing Office

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad

Level 27, Menara Maxis, Kuala Lumpur City Centre,
50088 Kuala Lumpur, Malaysia
TEL 60-3-2058-6881

Myanmar
Yangon Branch
Sedona Business Suites, Level 4,
No. 1 Ka Ba Aye Pagoda Road, Yankin Township, Yangon,
Republic of the Union of Myanmar
TEL 95-1-860-5501

Yangon Branch Thilawa Front Office

Room No. 204, Administration Building,Corner of Thilawa Development Road and Dagon-Thilawa
Road, Thilawa SEZ, Thanlyin Township, Yangon,
Republic of the Union of Myanmar
TEL 95-1-230-9046

Philippines
Manila Branch
25th Floor, Zuellig Building, Makati Avenue corner Paseo deRoxas, Makati City 1225, Metro Manila, Philippines
TEL 63-2-860-3500

India

2017 Integrated Report128Singapore
Singapore Branch
12 Marina View, #08-01 Asia Square Tower 2,
Singapore 018961, Republic of Singapore
TEL 65-6805-2000

TaiwanKaohsiung Branch
12th Floor, No. 2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
TEL 886-7-236-8768

Frankfurt Branch

TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany
TEL 49-69-29-72-95-0

Iran

308 East Bay Street, P.O. Box N-7768, Nassau, Bahamas

BrazilBanco Mizuho do Brasil S.A.

Italy

Milan Branch
6th Floor, Largo Augusto 7, 20122 Milan, Republic of Italy
TEL 39-02-778-0001

Taipei Branch

Saudi Arabia
Mizuho Saudi Arabia Company

Bangkok Branch
98 Sathorn Square Office Tower 32nd – 35th floor,
North Sathorn Road, Silom, Bangrak, Bangkok 10500,
ThailandTEL 66-2-163-2999, 2-002-0222

Eastern Seaboard Branch

300/7 ESIE Plaza 2, Unit No. 2-05 Moo 1, Tambol Ta Sit,
Amphoe Pluak Daeng, Rayong 21140, Thailand
TEL 66-3-899-7000

VietnamHanoi Branch
4th Floor, 63 LTT Building, 63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-3936-3123/3124

Ho Chi Minh City Branch

18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
TEL 84-8-3827-8260/8292

Europe, the Middle East and Africa(Country/Region)
AustriaMizuho Bank Europe N.V.
Vienna Branch

DC Tower 26th Floor, Donau-City-Strasse 7,1220 Vienna, Austria
TEL 43-1-269-1000-00

Bahrain
Bahrain Representative Office
Suite 201-202, Entrance 4, 2nd Floor, Manama Center,
Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
TEL 973-17-224522

BelgiumMizuho Bank Europe N.V.
Brussels Branch

Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

FranceParis Branch
Washington Plaza 40, rue Washington,
75408 Paris Cedex 08, France
TEL 33-1-5383-4100

Germany
Duesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf, F.R. Germany
TEL 49-211-13020

BahamasMizuho Bank (USA) Nassau Branch

3rd Floor, No. 1, 14th Street, Khaled Eslamboli Avenue,
Tehran 15117, IranTEL 98-21-8872-6593

8th Floor, No. 169, Fuhui Parkway, Taichung 407, Taiwan
TEL 886-4-2374-6300

Thailand(Country/Region)

Tehran Representative Office

Taichung Branch

2nd Floor, Hung Kuo Building, 167 Tun Hua North Road,
Taipei 105, Taiwan
TEL 886-2-2715-3911

The Americas

North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
TEL 966-11-273-4111

South Africa
Johannesburg Representative Office
2nd Floor, West Tower, Maude Street,
Nelson Mandela Square, Sandton 2196, South Africa,
P.O. Box 785553, Sandton 2146
TEL 27-11-881-5410

Spain

Mizuho Bank Europe N.V.
Madrid Branch

Calle Orense 34, Planta 6, Edificio Iberia Mart II,
28020 Madrid, SpainTEL 34-91-598-2905

Avenida Engenheiro Luiz Carlos Berrini, 716-10 andar,
Brooklin Novo, São Paulo, SP, CEP. 04571-000, Brazil
TEL 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
TEL 1-416-874-0222

Calgary Office

Suite 1000, 888 3rd Street, South West, Calgary, Alberta,
Canada, T2P 5C5
TEL 1-403-444-5375

Vancouver Office

Suite 305, South Tower, 5811 Cooney Road, Richmond,
British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

Cayman Islands
Cayman Branch
P. O. Box 1353, Harbour Place, 5th Floor,
103 South Church Street, George Town,
Grand Cayman KY1-1108, Cayman Islands

Chile
Santiago Representative Office

The Netherlands
Mizuho Bank Europe N.V

Av. Apoquindo 3472, Piso 7, Las Condes, Santiago, Chile
TEL 56-2-3203-5773

Apollolaan 171, 1077 AS Amsterdam, The Netherlands
TEL 31-20-5734343

MexicoMexico Representative Office

TurkeyIstanbul Representative Office
Office 813, Tekfen Tower 8th Floor,
Buyukdere Caddesi No. 209, 4. Levent 34394, Istanbul,
TurkeyTEL 90-212-371-8474

U.A.E.
DIFC Branch-Dubai
The Gate Building, East Wing, Level 5, Dubai International
Financial Centre, P.O. Box No: 506607, Dubai, United ArabEmiratesTEL 971-4-279-4400

United Kingdom
London Branch
Mizuho House, 30 Old Bailey, London EC4M 7AU, United
Kingdom
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) Limited

Mizuho House, 30 Old Bailey, London EC4M 7AU, United
Kingdom
TEL 44-20-3446-4500

RussiaAO Mizuho Bank (Moscow)
5th floor, 20, bld.1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
TEL 7-495-212-0333

Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, Mexico
TEL 52-55-5281-5037

Mizuho Bank Mexico, S.A.
Paseo de la Reforma 342, Piso 10, Colonia Juarez,
Delegacion, Cuauhtemoc, 06600, Ciudad de Mexico, Mexico
TEL 52-55-5281-5037

U.S.A.
Chicago Branch
311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
TEL 1-312-855-1111

Los Angeles Branch

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

New York Branch

1251 Avenue of the Americas, New York, NY 10020, USA
TEL 1-212-282-3000

Park Avenue Branch

320 Park Avenue, New York, NY 10022, USA
TEL 1-212-282-3000

Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
TEL 1-713-499-4800

San Francisco Representative Office
235 Pine Street, San Francisco, CA 94104, USA
TEL 1-415-365-1750

129

Mizuho Financial GroupMizuho Bank (USA)1251 Avenue of the Americas, New York, NY 10020, USA
TEL 1-212-282-3030

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Mizuho Bank (USA)
Chicago Representative Office

311 South Wacker Drive, Suite 2100, Chicago, IL 60606,
USA
TEL 1-312-855-1111

Mizuho Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1270, Houston, TX 77056, USA
TEL 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office

350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Mizuho Bank (USA)Park Avenue Branch

320 Park Avenue, New York, NY 10022, USA
TEL 1-212-282-3030

Mizuho Bank (USA)San Francisco Representative Office
235 Pine Street, San Francisco, CA 94104, USA
TEL 1-415-365-1750

Mizuho Alternative Investments, LLC

757 Third Avenue, 8th Floor, New York, NY 10017, USA
TEL 1-212-282-4804

Mizuho Capital Markets Corporation

1440 Broadway, 25th Floor, New York, NY 10018, USA
TEL 1-212-547-1500

Mizuho Desk(Country/Region)

Austria
Raiffeisen Bank International AG
Am Stadtpark 9, A-1030 Vienna, Austria
TEL 43-1-71707-1375

U.A.E.
Mashreqbank psc
Japan Desk, Mashreqbank Building 3F, Dubai Internet City,
Mashreqbank, P.O. Box 1250, Dubai, United Arab Emirates
TEL 971-4-363-2324/2285“Mizuho Desk”
By forming tie-ups with major financial institutions inregions where Mizuho does not possess offices, weoffer our customers financial services through various
institutions. (Transactions are conducted directly between
the customer and the local financial institution.)

Network of Mizuho Trust & Banking
Mizuho Trust & Banking(Luxembourg) S.A.

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-42-16-17-1

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York, NY 10020, USA
TEL 1-212-373-5900

Network of Mizuho Securities
Beijing Representative Office

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People’s Republic of China
TEL 86-10-6523-4779

Shanghai Representative Office

17th Floor, Shanghai World Financial Center,
No. 100, Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-8000

Mizuho Investment Consulting(Shanghai) Co., Ltd.

33rd Floor, Shanghai World Financial Center,
No. 100, Century Ave., Pudong New Area,
Shanghai 200120, The People’s Republic of China
TEL 86-21-6877-5888

Mizuho Investment Consulting(Shanghai) Co., Ltd.
Beijing Branch

6010, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District, Beijing 100022,
The People’s Republic of China
TEL 86-10-6526-7577

Mizuho Securities Asia Limited

12th Floor, Chater House, 8 Connaught Road, Central,
Hong Kong, S.A.R., The People’s Republic of China
TEL 852-2685-2000

Mizuho Securities India Private Limited

Level 18, TOWER–A, Peninsula Business Park,
Senapati Bapat Marg, Lower Parel, Mumbai 400013, India
TEL 91-22-4353-7600

Mizuho Securities (Singapore) Pte. Ltd.
12 Marina View #10-01A, Asia Square Tower 2,
Singapore 018961
TEL 65-6603-5688

Mizuho Bank (Switzerland) Ltd

Mizuho Securities USA LLC
Hoboken Office

Waterfront Corporate Center, 111 River Street, Suite 1100,
Hoboken, NJ 07030, USA
TEL 1-201-626-1000

Mizuho Securities USA LLC
Houston Office (Investment Banking)2700 Post Oak Blvd, Suite 1270, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Securities USA LLC
Los Angeles Office (Investment Banking)
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Mizuho Securities USA LLC
New York Office (Investment Banking)1251 Avenue of the Americas, 30th Floor,
New York, NY 10020, USA
TEL 1-212-282-3000

Mizuho Securities USA LLC
San Francisco Office

235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
TEL 1-415-268-5500

Mizuho Securities USA LLC
San Francisco Office (Investment Banking)235 Pine Street, 19th Floor, San Francisco, CA 94104, USA
TEL 1-415- 365-1750

Mizuho Securities USA LLC
Philadelphia Office

Two Logan Square, 100 N. 18th Street, Suite 326,
Philadelphia, PA 19103, USA
TEL 1-267- 207-3541

Network of Asset Management One
Asset Management One Hong Kong Limited

Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

Suites 1221-22, Two Pacific Place, 88 Queensway, Hong
Kong, S.A.R, The People’s Republic of China
TEL 852-2918-9030

Mizuho International plc

Asset Management One Singapore Pte. Ltd.

Mizuho House, 30 Old Bailey, London EC4M 7AU, United
Kingdom
TEL 44-20-7236-1090

Mizuho International plc
Frankfurt Office

TaunusTurm 34th Floor, Taunustor 1, 60310 Frankfurt am
Main, Germany
TEL 49-69-4272-93001

Mizuho Securities USA LLC

2 Shenton Way #12-01 SGX Centre I, Singapore 068804
TEL 65-6532-5470

Asset Management One USA Inc.

400 Park Avenue, 4th Floor, New York, NY 10022, USA
TEL 1-212-350-7650

Asset Management One International Ltd.
Mizuho House, 30 Old Bailey, London, EC4M 7AU, UK
TEL 44-207-329-3777

320 Park Avenue, 12th Floor, New York, NY 10022, USA
TEL 1-212-209-9300

Mizuho Securities USA LLC
Atlanta Office3455 Peachtree Road, 5th Floor, Atlanta, GA 30326, USA
TEL 1-404-995-6830

Mizuho Securities USA LLC
Boston Office

125 High Street, 21st Floor, Boston, MA 02110, USA
TEL 1-617-235-1722

Mizuho Securities USA LLC
Chicago Office

311 South Wacker Drive, Suite 700, Chicago,
IL 60606, USA
TEL 1-312-294-8800

Mizuho Securities USA LLC
Chicago Office (Investment Banking)
311 South Wacker Drive, Suite 2100, Chicago,
IL 60606, USA
TEL 1-312-855-1111

2017 Integrated Report130

Investor Information

Date of Establishment

Convocation of General Meetings of Shareholders

JPY2,256.2 billion

An ordinary general meeting of shareholders of the Company shall be
convened no later than 3 months from the last day of each businessyear and an extraordinary general meeting of shareholders shall be
convened whenever necessary.

Issued Shares

Record Date

January 8, 2003

Paid-in Capital

25,386,307,945 shares

Number of Shareholders
Common Stock: 986,907

Major Shareholders (Common Stock)
Shares held

Percentageof shares
outstanding(%)

1

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,122,309,400

4.42

2

The Master Trust Bank of Japan, Ltd.
(Trustee account)962,863,300

3.79

3

Japan Trustee Services Bank, Ltd.
(Trustee account 9)627,066,600

2.47

4

Japan Trustee Services Bank, Ltd.
(Trustee account 5)492,293,200

1.93

5

Japan Trustee Services Bank, Ltd.
(Trustee account 1)

365,649,900

1.44

6

Japan Trustee Services Bank, Ltd.
(Trustee account 2)

360,809,200

1.42

7

Japan Trustee Services Bank, Ltd.
(Trustee account 7)357,374,400

1.40

8

STATE STREET BANKWEST CLIENT – TREATY 505234

353,600,880

1.39

9

JP MORGAN CHASE BANK 385151

307,115,823

1.21

10

Japan Trustee Services Bank, Ltd.
(Trustee account 4)

292,440,900

1.15Notes:1. Figures for the percentage of shares outstanding are rounded down to thenearest second decimal place.
2. The percentages of shares outstanding are calculated by excluding thetreasury stock (6,705,604 shares).

(As of March 31, 2017)



Stock Listing(Common Stock)

Tokyo Stock Exchange

Accounting Auditors

Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit
100 sharesFiscal Year

April 1 to March 31

131

Mizuho Financial Group

1. The Company shall deem shareholders having voting rights
appearing in writing or electronically in the register of shareholders
as of the end of March 31 of each year as the shareholders whoare entitled to exercise their rights at the ordinary general meetingof shareholders for the relevant business year.
2. The provision of the preceding paragraph shall apply mutatis
mutandis to the record date for voting rights at the general
meetings of holders of classes of stock, where there is a matterto be resolved at an ordinary general meeting of shareholders that
requires, in addition to such resolution, a resolution by the relevant
general meeting of holders of class of stock.
3. In addition to the preceding two paragraphs, the Company may set
an extraordinary record date, when necessary, by a determination
by Executive Officer(s) under the authority delegated by the Boardof Directors and upon giving a prior public notice thereof.

Organizations that Decide Dividends from Surplus, Etc.

The Company shall decide distribution of dividends from surplus andother matters provided for in each item of Article 459, Paragraph 1 of
the Companies Act of Japan, not by a resolution of a general meetingof shareholders, but by a resolution of the Board of Directors, unlessotherwise provided for in laws or regulations.

Record Date for Distribution of Dividends from Surplus

The record dates for distribution of dividends from surplus of theCompany shall be March 31 and September 30 of each year.

ADR* Information

Outline of Mizuho Financial Group’s ADR
New York Stock Exchange
1. Exchange :MFG
2. Ticker Symbol :60687Y109
3. CUSIP :4. Conversion ratio :1 ADR = 2 common shares
The Bank of New York Mellon
5. Depositary bank :101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
Mizuho Bank, Ltd.
6. Local custodian bank :* ADRs are securities issued for the purpose of trading in the U.S. in place of theunderlying stock of foreign companies. As ADRs are registered with the SEC as
U.S. securities, they are traded, settled and held in custody in substantively thesame manner as the stocks of U.S. companies. ADR is an acronym for American
Depositary Receipts.

Disclosure Policy
Basic Principles

who engage in financial reporting, accounting or disclosure. We

We are committed to growing together with our customers in ahave also developed the “Internal Controls and Audit Hotline”, astable and sustainable manner and bringing together our groupwide

system designed for obtaining concerns regarding questionable

expertise to contribute to the prosperity of economies and societies

accounting or auditing matters from both inside and outside

throughout the world as the leading Japanese financial services group

Mizuho Financial Group.

with a global presence and a broad customer base. For this reason,
we place one of the highest management priorities on continuing toDisclosure Methods, Other

disclose information to our customers, shareholders, and investors(1) Disclosure Methods

both in and outside Japan in a fair, timely and appropriate manner,

With respect to the information which is required to be disclosed

in order that they may form proper judgments and appraisals of the

pursuant to applicable domestic and international laws andgroup. To achieve this aim, we observe applicable domestic andregulations as well as stock exchange rules, we follow the definedinternational laws and regulations as well as stock exchange rules

disclosure procedures such as publishing such information

relating to corporate disclosure, and we establish and implementin business reports (Jigyo-Hokoku), annual securities reports

appropriate Disclosure Controls and Procedures.

(Yukashoken-Hokokusho), Integrated Report (Annual Review) andother disclosure publications, as well as providing such information

Disclosure Controls and Procedures

through the information distribution systems of domestic and(1) Establishment and Implementation of Disclosure Controls andinternational stock exchanges and through press releases. We

Procedures

also endeavor to disclose other information in a fair, timely andOur Disclosure Controls and Procedures are establishedappropriate manner. When we disclose such information, weto observe applicable domestic and international laws andbasically publish on our website the information we disclose. In

regulations as well as stock exchange rules and to implement

addition, we endeavor to utilize the latest disclosure methods andfair, timely and appropriate corporate disclosure. The Disclosure
Controls and Procedures are the process carried out by directors,

tools to provide more fair and widespread disclosure.
(2) Investor Relations Activities

officers and employees of Mizuho Financial Group and include

In accordance with our Basic Principles described above, and with

Internal Controls over Financial Reporting designed to provide

due attention to two-way communication, we endeavor sincerely

reasonable assurance regarding the reliability of Financial

to facilitate a proper understanding of our management strategies,

Reporting and the Preparation of Financial Statements. We havefinancial condition and other matters. In this way, we aim toestablished the basic principles underlying our Disclosure Controls

earn the trust of the market and obtain an appropriate market

and Procedures as well as our internal rules related to Disclosure

reputation.

Controls and Procedures that govern the management framework

Beginning with the disclosure required by applicable domestic

for the entire Mizuho Financial Group including group companies,

and international laws and regulations as well as stock exchange

and we endeavor to establish, implement and continuously

rules, we endeavor to grasp properly the types of information

improve our Disclosure Controls and Procedures. Our Disclosure

desired by the market and to disclose useful and appropriate

Committee is the Business Policy Committee that is responsible

information voluntarily and proactively. Regarding disclosure offor discussing and coordinating matters relating to Disclosure

information we consider particularly important, we communicate

Controls and Procedures.

such information on an ad hoc basis as and when necessary, even(2) Evaluation of Effectiveness of Disclosure Controls andProcedures
Our Disclosure Controls and Procedures are documented, andif a press release has already been issued, through such means as
special briefing sessions.
In addition, we respect various disclosure principles including

evaluation of the overall effectiveness of our Disclosure Controls

fair disclosure. Accordingly, at individual calls, private meetingsand Procedures is conducted regularly by reviewing the contents

or conferences hosted or attended by representatives of Mizuho

of such documentation and their implementation. In addition,

Financial Group we endeavor to limit carefully our explanations toevaluation of the effectiveness and appropriateness of Disclosure
Controls and Procedures is conducted through internal audits.
(3) Others

matters already disclosed and facts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding Mizuho Financial

We established a “Code of Ethics for Financial Professionals” toGroup in the market due to the spread of rumors or otherwise,

be observed by all directors and executive officers, as well as all

we endeavor to investigate their causes and correct suchmanagers and other employees within Mizuho Financial Group

misconceptions promptly.

2017 Integrated Report132Privacy Policy Regarding Customer Information
Mizuho Financial Group, Inc. (“MHFG”) hereby establishes andannounces the “Privacy Policy Regarding Customer Information” (“thisPolicy”), which sets forth MHFG’s policies for protecting customers’
personal information and MHFG’s basic approach in handlingcustomers’ personal information (including the customers’ Individual
Number and personal information containing the Individual Number(hereafter collectively referred to as “Specific Personal Information,etc.”)), applicable to Mizuho Financial Group which is composedof MHFG, its consolidated subsidiaries and affiliates (which areaccounted for by the equity method) that are listed 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 laws and regulations including the “Personal Data
Protection Law in Japan”, “Act on the Use of Numbers to Identify aSpecific Individual in the Administrative Procedure” and other related
regulations and the internal rules of Mizuho Financial Group, including
this Policy when Mizuho Financial Group conducts business.
Proper Acquisition
Mizuho Financial Group will acquire personal information that isnecessary to conduct its business by proper and lawful means.
Purpose of Use
Mizuho Financial Group will specify the purpose of use of personal
information and will handle the personal information within the scopenecessary to achieve that purpose, and will not use it beyond that
scope.
In cases where special restrictions exist on the use of particularpersonal information under laws and/or regulations such as the useof the Individual Number under the “Act on the Use of Numbers to
Identify a Specific Individual in the Administrative Procedure”, Mizuho
Financial Group will not handle that particular personal information for
purposes not relevant to said matters.
The purpose of use of personal information is set forth throughthe web site or other measures provided by each company of theMizuho Financial Group.
Providing Personal Information to Third Parties
Mizuho Financial Group will not provide personal information to any
third party in principle unless the individual concerned has agreed
to such use or it is authorized by law. However, Mizuho Financial
Group may provide personal information to relevant entities that areotherwise specified without customer consent in following cases:• Mizuho Financial Group entrusts management of personal
information that is necessary to achieve the purpose of use to athird party.
• Mizuho Financial Group is one of the parties in a consolidationtransaction.

133

Mizuho Financial Group• Mizuho Financial Group uses personal information jointly withdesignated entities that are publicly informed.
However, with respect to Specific Personal Information etc.,
Mizuho Financial Group will not provide it to third parties except
in cases specified in the “Act on the Use of Numbers to Identify aSpecific Individual in the Administrative Procedure”.
Handling of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to any third
party sensitive information* (“sensitive information” as defined in the
Guidelines for Protection of Personal Information in the Financial
Sector, including “Personal Information Requiring Attention”) otherthan in the cases specified in the said Guidelines such as whenauthorized by law or it is necessary to conduct business on condition
that Mizuho Financial Group has customer consent.
*Sensitive information refers to the following information:• Race, beliefs, social status• Medical history, healthcare and sex life
• Criminal record, fact of suffering damage from crime• Participation in labor union• Family origin, legal address on family registry• Other personal information requiring special attention in handlingin order not to cause unjust discrimination, prejudice, or otherdisadvantage on the information subject
Security Measures / Safeguards
Mizuho Financial Group will maintain and manage accurate and upto-date personal information, and prevent leakage of information
with necessary and appropriate security measures. Moreover, it willconduct necessary and appropriate supervision of employees andservice providers (including subcontractors, etc.) of who handles
personal information.
Continuous Improvement
Mizuho Financial Group will continuously review this Policy according
to the development of information technologies and the changes insocial demand, and improve the handling of personal information.
Customer Requests concerning retained Personal Data
Mizuho Financial Group will endeavor to properly and promptly copewith following requests from customers:• notification of the purpose of use• disclosure of retained personal data
• correction, addition and deletion of retained personal data that
do not reflect the facts• suspension of use and elimination of retained personal data• suspension of providing retained personal data to a third party
Comments & Requests
Mizuho Financial Group will endeavor to cope with customer’scomments and requests for the management of personal information
sincerely and promptly.

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis[Under Japanese GAAP]

135

Key Indicators of Mizuho Financial Group, Inc.

137

Status of Asset Quality

134

Financial Analysis-Index

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

2017

2016

2015

2014

2013

¥3,351.7
603.5
558.1
9,273.3
200,508.6
130,676.4
78,337.7
32,353.1¥3,235.6
670.9
304.5
9,353.2
193,458.5
117,456.6
73,708.8
39,505.9¥3,180.8
611.9
1,941.09,800.5
189,684.7
113,452.4
73,415.1
43,278.7¥2,940.7
688.4
832.9
8,304.5
175,822.8
101,811.2
69,301.4
43,997.5¥2,914.0
560.5
1,270.8
7,736.2
177,411.0
99,568.7
67,536.8
53,472.3

Net Assets per Share (Yen)

335.96322.46322.86253.25229.70

Profit Attributable to Owners of Parent
per Share (Yen)

23.86

26.94

24.91

28.18

22.96

Diluted Profit Attributable to Owners of Parent
per Share (Yen)

23.78

26.42

24.10

27.12

22.05

(International Standard (Basel III)) (Note 1)
Tier 1 Capital Ratio

16.28%

15.41%

14.58%

14.36%

14.19%(International Standard (Basel III)) (Note 1)
Common Equity Tier 1 Capital Ratio

13.3%

12.64%

11.50%

11.35%

11.03%(International Standard (Basel III)) (Note 1)

11.34%

10.50%

9.43%

8.80%

8.16%

7.2%
8.54x

8.3%
6.23x

8.6%
8.47x

11.6%
7.23x

10.9%
8.66x

4,690.1
5,796.3(24.5)
45,523.6

4,104.1
3,687.8(521.0)35,089.1

6,654.9
2,619.2(903.4)
27,840.7(2,286.0)
10,607.4(305.7)
19,432.4

5,858.6(749.6)(283.8)
11,347.5

Total Income
Profit Attributable to Owners of Parent
Comprehensive Income
Net Assets
Total Assets
Deposits
Loans and Bills Discounted
Securities

Total Capital Ratio

Net Return on Equity
PER (Times)
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Cash and Cash Equivalents at the end of the fiscal year

Note: 1. Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy in consideration of assets held by abank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20, March 27, 2006)

135

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Billions of yen

As of or for the Fiscal Years ended March 31,

2017

2016

2015

2014

2013

Operating Income
Net Income¥378.0326.6¥333.5304.3¥377.7349.0¥316.8285.8¥262.1
241.3

Common Stock and Preferred Stock
Number of Shares Issued and Outstanding

2,256.2

2,255.7

2,255.4

2,254.9

2,254.9(

Common Stock
Eleventh Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock)(

Net Assets
Total Assets

25,386,307,945shares—shares—shares)(

25,030,525,657shares
914,752,000shares—shares)(

24,621,897,967shares
914,752,000shares—shares)(

24,263,885,187shares
914,752,000shares—shares)(

24,164,864,477shares
914,752,000shares
36,690,000shares)

5,342.5
9,269.3

5,197.2
7,064.2

5,096.2
6,603.1

4,900.4
6,251.3

4,788.9
6,202.1

Net Assets per Share (Yen)
210.51Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
7.5—
Eleventh Series Class XI Preferred Stock (Note 1)

203.58198.15188.90182.43

7.5
20

7.5
20

6.5
20

6
20

Thirteenth Series Class XIII Preferred Stock (Note 2)
Common Stock
Eleventh Series Class XI Preferred Stock (Note 1)
Thirteenth Series Class XIII Preferred Stock (Note 2)
Net Income per Share (Yen)
Diluted Net Income per Share (Yen)(PER (Times)
Dividend Propensity

—

—

—

—

30

3.75
—
—

3.75
10
—

3.5
10
—

3
10
—

3
10
15

12.91
12.86

12.17
11.98

14.11
13.74

11.53
11.25

9.69
9.46

15.79x58.06%

13.81x61.62%

14.95x53.12%

17.68x56.33%

20.53x61.91%

)(

)(

)(

)(

)(

)

Notes: 1. Mizuho Financial Group Inc. ("MHFG") acquired all of the Eleventh Series Class XI Preferred Stock as of July 1, 2016 that had not been requested for acquisition by June 30, 2016 and calcelled
all of the Eleventh Seties Class XI Preferred Stock held by MHFG on July 13, 2016. Accordingly, the cash dividends per share of the Eleventh Series Class XI Preferred Stock for fiscal 2017
have not been recorded.
2. As MHFG acquired and cancelled all of the Thirteenth Series Class XIII Preferred Stock as of July 11, 2013, the cash dividends per share of the Thirteenth Series Class XIII Preferred Stock forand after fiscal 2013 have not been recorded.

136

Key Indicators of Mizuho Financial Group, Inc. (Consolidated)2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Credit-related Costs
Credit-related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2017

2016

ChangeCredit-related Costs

¥47.5

¥30.4

¥17.0

80.2

47.7

32.4

15.8

46.6

(30.7)(32.6)(17.2)(15.3)———

Expenses related to Portfolio Problems (including Reversal of(Provision for) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Gains on Reversal of Reserves for Possible Losses on Loans andothersCredit Costs for Trust Accounts○ Overview of Non-performing Loans (NPLs) as of March 31, 2017 (the Two Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
ObligorCategorization

NonCategorization

Category II

Category III

Category IV

82.7
Bankrupt and Substantially
Bankrupt Obligors
82.7

Collateral, Guarantees, etc.:
76.6
Reserves for Possible Losses:

Reserve
Ratio
100%

DirectWrite-offs

2. Disclosed Claims under
the Financial Reconstruction Act (FRA)
Claims against Bankrupt
and Substantially Bankrupt
Obligors
82.7

3. Non-Accrual, Past
Due & Restructured
Loans
Loans to Bankrupt Obligors
34.7

Coverage Ratio 100%

6.0

Non-Accrual
310.1
Intensive Control
Obligors
387.1

Collateral, Guarantees, etc.:
180.3
Reserves for Possible Losses:

Watch Obligors

129.7

Claims for Special
Attention
367.2

Reserve Ratio against
Uncovered Portion
43.1%
Collateral, Guarantees, etc.:
140.5
Reserves for Possible Losses:

97.7

Special Attention Obligors

Other Watch Obligors
Normal Obligors

77.0
Reserve
Ratio
62.7%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors-Coverage Ratio: 67.9%-Reserve Ratiofor Uncovered Portion: 45.5%-Reserve Ratio
against Total Amount ofClaims: 26.7%
Reserve Ratio
against Total Amount of Claims·Other Watch Obligors: 6.69%·Normal Obligors: 0.06%

Total
83,544.0

Claims with Collection Risk
387.1

Delinquent Loans
391.5

Coverage Ratio 80.1%
43.6 (Note 2)
Claims for Special
Attention (Note 1)
367.2
Coverage Ratio 64.8%

Loans Past Due for
3 Months or More
7.8
Restructured Loans
359.3

Total Coverage Ratio
75.4%

Total
837.1

Total
793.5

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRA represents the amount of claims other than loans included in Disclosed
Claims under the FRA.

137

Credit-related Costs、Overview of Non-performing Loans (NPLs)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Status of Disclosed Claims under the FRA
Disclosed Claims under the FRA (Consolidated)(Consolidated)
Billions of yen

As of March 31,

2017

2016

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥98.4
401.2
422.5

¥83.1
361.2
464.0

¥15.2
39.9
(41.4)¥922.2¥908.4

¥13.7

2017

2016

Change¥93.3¥157.3¥(63.9)As of March 31,

2017

2016

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥—
2.8
—

¥—
2.8
—

¥—
(0.0)
—

¥2.8

¥2.8

¥(0.0)

As of March 31,

2017

2016

ChangeClaims against Bankrupt and Substantially Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention

¥98.4
404.1
422.5

¥83.1
364.1
464.0

¥15.2
39.9
(41.4)¥925.1¥911.3

¥13.7

Total
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs(Trust Accounts)
Billions of yen

Total(Consolidated and Trust Accounts)
Billions of yen

Total

138

Status of Disclosed Claims under the FRA

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2017

2016

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥33.3
430.5
7.8
414.7

¥24.3
396.7
0.9
463.1

¥9.0
33.8
6.9
(48.4)¥886.4¥885.0

¥1.4

2017

2016

Change¥87.4¥143.9¥(56.4)

2017

2016

Change

0.04%
0.54
0.01
0.52

0.03%
0.53
0.00
0.62

0.00%
0.01
0.00
(0.09)

1.13%

1.20%

(0.06)%

2017

2016

Change¥509.1
344.7
164.4
0.0

¥459.5
304.8
154.6
0.0

¥49.6
39.9
9.7
(0.0)

2017

2016

Change¥93.7¥157.8¥(64.0)

2017

2016

Change57.43%

51.92%

5.51%

Total
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries
Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

Billions of yen

Amount of Partial Direct Write-offs

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

After Partial Direct Write-offs
Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

139

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

2017

2016

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥—
2.8
—
—

¥—
2.8
—
—

¥—
(0.0)
—
—

¥2.8

¥2.8

¥(0.0)

2017

2016

Change

—%
23.09
—
—

—%
20.84
—
—

—%
2.24
—
—

23.09%

20.84%

2.24%

As of March 31,

2017

2016

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

¥33.3
433.4
7.8
414.7

¥24.3
399.6
0.9
463.1

¥9.0
33.7
6.9
(48.4)¥889.3¥887.9

¥1.3

2017

2016

Change

0.04%
0.55
0.01
0.52

0.03%
0.54
0.00
0.62

0.00%
0.01
0.00
(0.09)

1.13%

1.20%

(0.06)%

Total

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

Total
Note: Above figures are presented net of partial direct write-offs.

Ratio to Total Loans%

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

140

Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Analysis

Status of Asset Quality○ Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %As of March 31,

2017
Outstanding
Balance Composition

2016
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore)
Manufacturing
Agriculture & Forestry
Fishery
Mining, Quarrying Industry & Gravel Extraction Industry
Construction
Utilities
Communication
Transportation & Postal Industry
Wholesale & Retail
Finance & Insurance
Real Estate
Commodity Lease
Service Industries
Local Governments
Governments
Other
Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other¥57,081.8
8,626.6
38.8
1.3
224.8
643.3
2,212.1
1,425.0
2,311.7
4,740.6
4,071.8
7,021.7
2,104.6
2,658.7
866.0
7,662.4
12,471.5
21,255.9
672.6
5,759.8
14,823.4¥52,074.3
8,152.9
44.8
1.2
234.5
729.2
2,365.0
1,299.5
2,252.6
4,999.4
3,700.0
6,869.3
1,988.7
2,666.3
913.7
2,480.7
13,375.8
21,634.5
979.7
5,202.7
15,452.0¥5,007.4
473.6
(5.9)
0.1
(9.6)
(85.9)(152.8)125.5
59.1(258.8)
371.8
152.3
115.9
(7.6)
(47.6)
5,181.7(904.3)(378.5)(307.1)557.1(628.5)

Total¥78,337.7

100.00%
15.11
0.07
0.00
0.39
1.13
3.88
2.50
4.05
8.30
7.13
12.30
3.69
4.66
1.52
13.42
21.85
100.00
3.16
27.10
69.74
/

¥73,708.8

100.00%
15.66
0.09
0.00
0.45
1.40
4.54
2.50
4.33
9.60
7.10
13.19
3.82
5.12
1.75
4.76
25.69
100.00
4.53
24.05
71.42
/

¥4,628.9/(0.55)%(0.02)
0.00(0.06)(0.27)(0.66)
0.00(0.28)(1.30)
0.03(0.89)(0.13)(0.46)(0.23)
8.66(3.84)/(1.37)
3.05(1.68)/

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.

○ Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2017

Argentina

Total
Ratio to Total Assets

Billions of yen, %

¥0.0

¥0.0
0.00%

As of March 31, 2016

Argentina

Total
Ratio to Total Assets

Billions of yen, %

¥0.0

¥0.0
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

141

Status of Loans by Industry、Status of Loans by Nationality of Borrowers

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]143

Independent Auditor’s Report

144

Consolidated Financial Statements

156

Notes to Consolidated Financial Statements

142

Financial Data of Mizuho Financial Group, Inc.-Index

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Independent Auditor’s Report

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc., which comprise theconsolidated balance sheet as of March 31, 2017, and the consolidated statements of income, comprehensive income,changes in net assets, and cash flows for the year then ended and a summary of significant accounting policies and otherexplanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements inaccordance with accounting principles generally accepted in Japan, and for designing and operating such internal control
as management determines is necessary to enable the preparation and fair presentation of the consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit of
the consolidated financial statements is not to express an opinion on the effectiveness of the entity’s internal control, but inmaking these risk assessments the auditor considers internal controls relevant to the entity’s preparation and fairpresentation of the consolidated financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of Mizuho Financial Group, Inc. as of March 31, 2017, and their consolidated financial
performance and cash flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for theconvenience of readers, and, in our opinion, the accompanying consolidated financial statements have been properlytranslated on the basis described in Note 1.

June 22, 2017
Tokyo, Japan143

Independent Auditor’s Report2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2017

As of March 31,

AssetsCash and Due from Banks (Notes 16, 38, 40 and 41)
Call Loans and Bills Purchased (Note 40)
Receivables under Resale Agreements (Note 40)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 40)
Other Debt Purchased (Notes 40 and 41)
Trading Assets (Notes 9, 16, 40 and 41)
Money Held in Trust (Notes 40 and 41)
Securities (Notes 10, 16, 25, 40 and 41)
Loans and Bills Discounted (Notes 11, 16 and 40)
Foreign Exchange Assets (Note 12)
Derivatives other than for Trading Assets (Notes 40 and 42)
Other Assets (Notes 13, 16 and 41)
Tangible Fixed Assets (Notes 14, 27 and 39)
Intangible Fixed Assets (Note 39)
Net Defined Benefit Asset (Note 24)
Deferred Tax Assets (Note 26)
Customers' Liabilities for Acceptances and Guarantees (Note 25)
Reserves for Possible Losses on Loans (Notes 15 and 40)
Total Assets¥

47,129,583 ¥
1,035,746
8,967,777

2016

36,315,471
893,545
7,805,798

3,407,390
3,350,051
2,745,204
2,979,797
10,361,787
13,004,522
247,583
175,638
32,353,158
39,505,971
78,337,793
73,708,884
1,828,782
1,447,743
2,170,750
3,157,752
4,180,339
4,144,131
1,136,329
1,085,791
1,045,486
804,567
797,762
646,428
56,06636,517
5,273,581
4,798,158(509,175)(459,531)¥ 200,508,610 ¥ 193,458,580

Thousands of
U.S. dollars (Note 1)
2017$

420,049,765
9,231,249
79,926,715

29,857,860
24,467,066
92,351,048
2,206,629
288,352,572
698,197,804
16,299,312
19,347,151
37,257,927
10,127,717
9,318,064
7,110,182
499,699
47,001,614(4,538,106)$ 1,787,064,268

144

Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet—(Continued)

2016

Thousands of
U.S. dollars (Note 1)
2017¥ 130,676,494 ¥ 117,456,604
1,255,172
2,521,008
17,969,753
16,833,346$ 1,164,674,639
11,186,920
160,158,233

Millions of yen
2017

As of March 31,

Liabilities and Net Assets
Liabilities
Deposits (Notes 16, 17 and 40)
Call Money and Bills Sold (Notes 16, 18 and 40)
Payables under Repurchase Agreements (Notes 16 and 40)
Guarantee Deposits Received under Securities Lending
Transactions (Notes 16 and 40)
Commercial Paper (Note 19)
Trading Liabilities (Notes 9 and 40)
Borrowed Money (Notes 16, 20 and 40)
Foreign Exchange Liabilities (Note 12)
Short-term Bonds (Note 21)
Bonds and Notes (Notes 22 and 40)
Due to Trust Accounts (Note 40)
Derivatives other than for Trading Liabilities (Notes 40 and 42)
Other Liabilities (Note 23)
Reserve for Bonus Payments
Reserve for Variable Compensation
Net Defined Benefit Liability (Note 24)
Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Reserves under Special Laws
Deferred Tax Liabilities (Note 26)
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 27)
Acceptances and Guarantees (Note 25)
Total Liabilities
Net Assets
Common Stock and Preferred Stock (Note 28)
Capital Surplus
Retained Earnings
Treasury Stock (Note 28)
Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 41)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 27)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 24)
Total Accumulated Other Comprehensive Income

1,679,300

2,608,971

14,967,025

789,705
1,010,139
7,923,285
10,276,133
6,307,230
7,503,543
526,053
492,473
226,348
648,3817,564,535
6,120,928
4,784,077
5,067,490
1,784,857
2,571,597
3,883,168
5,532,596
67,63362,171
3,018
2,836
55,23651,514
1,327
1,685
298
267
5,680
5,271
19,072
16,15432,72039,2452,309
2,024
337,800
414,799
66,58567,991
5,273,581
4,798,158¥ 191,235,249 ¥ 184,105,335

7,038,377
70,617,522
56,214,177
4,688,538
2,017,362
67,420,100
42,638,836
15,907,822
34,609,346
602,790
26,906492,306
11,831
2,657
50,631
169,983
291,629
20,5843,010,701
593,456
47,001,614$ 1,704,413,985¥$

2,256,275 ¥
1,134,416
3,615,449(4,849)7,001,291
1,289,985
10,172
145,609(69,657)
144,866
1,520,976

Stock Acquisition Rights (Note 29)

2,255,790
1,110,164
3,197,616(3,609)6,559,962
1,296,039
165,264
148,483(53,689)
51,752
1,607,851

20,109,406
10,110,663
32,223,258(43,220)
62,400,107
11,497,195
90,663
1,297,768(620,831)
1,291,142
13,555,937

1,754

2,762

Non-controlling Interests

749,339

1,182,668

6,678,606

Total Net Assets

9,273,361

9,353,244

82,650,283¥ 200,508,610 ¥ 193,458,580$ 1,787,064,268

Total Liabilities and Net Assets

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

145

Consolidated Balance Sheet

15,633

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Income
Millions of yen
2017

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 30)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 31)
Other Operating Income (Note 32)
Other Income (Note 34)
Total Income
Expenses
Interest Expenses (Note 30)
Fee and Commission Expenses
Trading Expenses (Note 31)
Other Operating Expenses (Note 33)
General and Administrative Expenses (Note 29)
Other Expenses (Note 35)
Total Expenses¥

1,445,555
50,627752,982
326,230
338,276
438,042
3,351,714¥

2016

1,426,256
53,458751,712313,106
326,065
365,036
3,235,636

Thousands of
U.S. dollars (Note 1)
2017$12,883,739
451,229
6,711,070
2,907,582
3,014,938
3,904,124
29,872,682

577,737
149,439898
92,856
1,467,221
279,368
2,567,521

422,574
144,160
2,598
79,6501,349,593
228,8072,227,384

5,149,173
1,331,906
8,010
827,597
13,076,841
2,489,912
22,883,439

Income before Income Taxes
Income Taxes:
Current
Refund of Income Taxes
Deferred
Total Income Taxes

784,193

1,008,252

6,989,243

199,794(3,259)(58,800)
137,735

216,354(3,065)69,260282,549

1,780,701(29,051)(524,064)
1,227,586

Profit646,457

725,702

5,761,657

Profit Attributable to Non-controlling Interests

42,91354,759382,469

Profit Attributable to Owners of Parent¥

603,544¥

670,943$

5,379,188

146

Consolidated Statement of Income2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Per Share of Common Stock
Yen
2017

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

23.86
23.78
7.50

2016

¥

U.S. dollars (Note 1)
2017

26.94
26.42
7.50

$

0.21
0.21
0.07

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statement of Comprehensive Income
Millions of yen
2017

For the Fiscal Years ended March 31,

ProfitOther Comprehensive Income (Note 36):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of Parent:
Comprehensive Income Attributable to Non-controlling Interests:¥¥¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

147

Per Share of Common Stock、Consolidated Statement of Comprehensive Income

646,457(88,326)(10,965)(155,158)(11)(12,514)93,588(3,266)558,131519,532
38,598

¥

¥
¥

2016

725,702(421,108)(438,896)
138,829
3,630(10,712)(109,362)(4,597)
304,594
250,405
54,188

Thousands of
U.S. dollars (Note 1)
2017

$

$
$

5,761,657(787,223)(97,730)(1,382,871)(98)(111,534)
834,120(29,110)
4,974,434
4,630,418
344,016

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity
CommonStock andFor the Fiscal Year ended
March 31, 2017

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,255,790 ¥ 1,110,164¥ 3,197,616¥ (3,609)¥ 6,559,962

Preferred
Stock

1,426

¥ 2,255,790 ¥ 1,110,164¥ 3,199,042

1,426¥ (3,609)¥ 6,561,388

Changes during the period
Issuance of New Shares

484

484

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
(55)
Stock
Cancellation of Treasury
(1)
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising from23,823
Transactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during the484
24,251
periodBalance as of the end of the¥ 2,256,275 ¥ 1,134,416
period969(190,001)(190,001)

603,544603,544(1,904)(1,904)

663

608

1

―

2,863

2,863

23,823

416,406(1,239)439,903¥ 3,615,449¥ (4,849)¥ 7,001,291

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

148

Consolidated Statement of Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2017

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 1,296,039¥ 165,264¥ 148,483¥ (53,689)¥ 51,752

Stock
Total
Accumulated Acquisition
Rights
Other
Comprehensive
Income¥ 1,607,851

NonControlling
Interests

Total
Net Assets¥ 2,762 ¥1,182,668 ¥ 9,353,244

1,426¥ 1,296,039¥ 165,264¥ 148,483¥ (53,689)¥ 51,752¥ 1,607,851¥ 2,762 ¥1,182,668 ¥ 9,354,670

Changes during the period
Issuance of New Shares

969

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(190,001)
603,544(1,904)
608
―
2,863

23,823(6,054)(155,091)(2,874)(15,967)

93,113(86,875)(1,008)(433,328)(521,212)(6,054)(155,091)(2,874)(15,967)

93,113(86,875)(1,008)(433,328)(81,308)¥ 1,289,985¥ 10,172¥ 145,609¥ (69,657)¥ 144,866¥ 1,520,976

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

149

Consolidated Statement of Changes in Net Assets¥ 1,754 ¥ 749,339 ¥ 9,273,361

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStock andPreferred
Stock

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity¥ 2,255,404 ¥ 1,110,006¥ 2,769,371¥ (3,616)¥ 6,131,166

935(48,999)¥ 2,255,404 ¥ 1,110,942¥ 2,720,371(48,063)¥ (3,616)¥ 6,083,102

Changes during the period
Issuance of New Shares

386

386

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
81
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising from
(1,245)
Transactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during the
386
(777)
periodBalance as of the end of the¥ 2,255,790 ¥ 1,110,164
period772(195,264)(195,264)

670,943

670,943
(653)

(653)

659

741

1,566

1,566

(1,245)477,2446

476,859¥ 3,197,616¥ (3,609)¥ 6,559,962

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

150

Consolidated Statement of Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Millions of yen
Accumulated Other Comprehensive Income
Net
Unrealized
Gains(Losses) on
For the Fiscal Year ended
March 31, 2016

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

Other
Securities¥ 1,737,348

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit Plans¥ 26,635¥ 146,419¥ (40,454)¥ 160,005

Total
Stock
NonAccumulated Acquisition Controlling
Other
RightsInterests
Comprehensive
Income¥ 2,029,955

Total
Net Assets¥ 3,820 ¥1,635,595 ¥ 9,800,538(48,063)¥ 1,737,348¥ 26,635¥ 146,419¥ (40,454)¥ 160,005¥ 2,029,955¥ 3,820 ¥1,635,595 ¥ 9,752,474

Changes during the period
Issuance of New Shares

772

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items other(441,308)
than Shareholders' Equity
Total Changes during the(441,308)
periodBalance as of the end of the¥ 1,296,039
period(195,264)
670,943
(653)
741
1,566

(1,245)

138,628

2,064(13,235)(108,252)(422,104)(1,057)(452,927)(876,089)

138,628

2,064(13,235)(108,252)(422,104)(1,057)(452,927)(399,230)¥ 165,264¥ 148,483¥ (53,689)¥ 51,752¥ 1,607,851

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

151

Consolidated Statement of Changes in Net Assets¥ 2,762 ¥1,182,668 ¥ 9,353,244

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2017

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
Policies

CommonStock andPreferred
Stock

CapitalSurplusRetained
Earnings

Treasury
Stock

Total
Shareholders'Equity$ 20,105,087 $ 9,894,517$ 28,499,256$ (32,173)$ 58,466,687

12,711$ 20,105,087 $ 9,894,517$ 28,511,967

12,711$ (32,173)$ 58,479,398

Changes during the period
Issuance of New Shares

4,319

4,319

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
(496)
Stock
Cancellation of Treasury
(10)
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising from
212,333
Transactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during the
4,319
216,146
periodBalance as of the end of the$ 20,109,406 $ 10,110,663
period8,638(1,693,416)(1,693,416)

5,379,188

5,379,188(16,973)(16,973)

5,916

5,420

10

―

25,51925,519212,333

3,711,291(11,047)

3,920,709$ 32,223,258$ (43,220)$ 62,400,107

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

152

Consolidated Statement of Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assets—(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2017

Balance as of the beginningof the period
Cumulative Effects of
Changes in Accounting
Policies
Balance as of the beginningof the period reflecting
Changes in Accounting
PoliciesNet
Unrealized
Gains(Losses) on
Other
Securities

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit
Plans

Total
Stock
Accumulated Acquisition
Other
RightsComprehensive
Income$ 11,551,157 $ 1,472,942 $ 1,323,385 $ (478,515)$ 461,257$ 14,330,226 $ 24,622$10,540,714 $ 83,362,249

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

NonControlling
Interests

Total
Net Assets

12,711$ 11,551,157 $ 1,472,942 $ 1,323,385 $ (478,515)$ 461,257$ 14,330,226 $ 24,622$10,540,714 $ 83,374,960

Changes during the period
Issuance of New Shares

8,638

Cash Dividends
Profit Attributable to Ownersof Parent
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change in Treasury Sharesof Parent Arising fromTransactions with Noncontrolling Shareholders
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(1,693,416)
5,379,188(16,973)
5,420―
25,519212,333(53,962)(1,382,279)(25,617)(142,316)

829,885(774,289)(8,989) (3,862,108)(4,645,386)(53,962)(1,382,279)(25,617)(142,316)

829,885(774,289)(8,989) (3,862,108)(724,677)$ 90,663 $ 1,297,768 $ (620,831)$ 1,291,142$ 11,497,195

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

153

Consolidated Statement of Changes in Net Assets$ 13,555,937 $ 15,633 $6,678,606 $ 82,650,283

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Consolidated Statement of Cash Flows
Millions of yen
2017

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Gains and Losses on the Step Acquisition
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on
Investments
Increase (Decrease) in Reserve for Possible Losses on Salesof Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Variable Compensation
Decrease (Increase) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under
Securities Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes¥¥

784,193
166,2656,651
2,816(56,226)(18,899)
57,472¥

2016

1,008,252
159,9534,412
830―(24,299)(53,529)

Thousands of
U.S. dollars (Note 1)
2017$

6,989,243
1,481,863
59,28625,105(501,125)(168,441)
512,236

―

(2)

―

31
(254)
5,809
182
(17,677)
3,740

253
(678)
3,918
2,836
(65,012)3,123

276(2,266)51,781
1,628(157,558)
33,339(358)

157(3,193)

2,917

303

26,001(6,524)(9,633)(58,149)(1,445,555)
577,737(357,710)
292
107,847
2,608
2,426,324(2,142,414)
946,548(1,426,256)
422,574(356,138)(178)
470,492(2,729)(2,450,614)
1,716,637
291,667(12,883,739)
5,149,173(3,188,152)
2,604
961,208
23,251
21,625,000(19,094,607)
8,436,265(748,426)(821,313)(6,670,470)(5,192,399)
14,080,723(1,784,739)
5,569,737(46,278,067)
125,496,648(1,139,322)

459,006(10,154,388)(416,740)(1,333,261)(295,214)(60,388)(3,714,264)(11,882,902)

57,338651,949

511,042

152,026(216,041)(4,087,190)
505,568

1,354,962(1,925,505)(929,671)

363,332(8,285,843)(410,914)
33,814(422,033)
745,704

99,35820,826(168,323)(177,448)(3,662,340)
301,374(3,761,440)
6,646,209

¥

$

154

Consolidated Statement of Cash Flows2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flows—(Continued)
Millions of yen
2017

For the Fiscal Years ended March 31,

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net
Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Payments for Purchase of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities
Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Issuance of Common Stock
Proceeds from Investments by Non-controlling Shareholders
Repayments to Non-controlling Shareholders
Cash Dividends Paid
Cash Dividends Paid to Non-controlling Shareholders
Payments for Purchase of Stocks of Subsidiaries (not affecting
the scope of consolidation)
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Payments for Repurchase of Treasury Stock of Subsidiaries
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Fiscal YearNet Increase (Decrease) in Cash and Cash Equivalents from
Merger of Consolidated Subsidiaries
Cash and Cash Equivalents at the End of the Fiscal Year
(Note 38)¥

(283,413)
1,454,769(553,494)(987,540)
4,936,937(246,806)
4,690,131

Consolidated Statement of Cash Flows

2016

3,286,722
1,458,441(386,135)
43,034
4,373,564(269,366)
4,104,197$(2,525,964)
12,965,860(4,933,110)(8,801,606)
44,001,225(2,199,700)
41,801,525(46,111,207)
41,930,689
10,419,553(88,905)
28,521(105,634)(285,561)
8,932
2(43,017,178)
36,284,439
10,774,422(21,840)
3,945(67,298)(257,072)
12,9130(410,973,328)
373,713,810
92,865,895(792,384)
254,205(941,482)(2,545,112)
79,61426―
5,796,391(24,432)
3,687,897―
51,661,244

25,000(80,000)
795,000(76,000)
6
3,322(467,320)(190,031)(31,168)

40,000(189,000)
434,517(107,600)
41,353(452,500)(195,283)(49,877)

222,816(713,012)
7,085,561(677,362)
54
29,615(4,165,062)(1,693,683)(277,793)(216)(1,434)0(1,695)(24,537)(2,626)(13)
2―(521,023)(1,933)(12,788)7(15,113)(218,693)(27,645)
10,434,339(22,723)
7,248,347(246,399)
92,997,677

35,089,122

27,840,775

312,737,280

201

―

1,796

¥ 45,523,663¥ 35,089,122$ 405,736,753

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

155¥

Thousands of
U.S. dollars (Note 1)2017

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the Company
Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2017 and 2016 were
139 and 143, respectively.
In the fiscal year ended March 31, 2017, Asset Management One Co., Ltd. (former company name: DIAM Co., Ltd.)and 12 other companies were newly included in the scope of consolidation as a result of absorption-type merger statedin “Business Combination, etc.” and other factors.
During the period, Shinko Asset Management Co., Ltd. and 16 other companies were excluded from the scope of
consolidation as a result of above mentioned absorption-type merger and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2017 and 2016.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2017 and 2016.
(b) The numbers of affiliates under the equity method as of March 31, 2017 and 2016 were 18 and 27, respectively.
Investments in affiliates include Orient Corporation, The Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for
Foreign Trade of Vietnam and certain other affiliates.
In the fiscal year ended March 31, 2017, Exacta Capital Partners was newly included in the scope of the equity
method as a result of new establishment.
During the period, DIAM Co., Ltd. and other 9 other companies were excluded from the scope of the equity method asa result of above mentioned absorption-type merger and other factors.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2017 and 2016.
(d) Pec International Leasing Co., Ltd. ,an affiliate not under the equity method, is not accounted for under the equity
method, as it is not significant to the consolidated financial statements of MHFG.

156

Basis for Presentation、Scope of Consolidation、Application of the Equity Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2017 are as follows:
July 31
1 company
December 29
6 companies
December 31
57 companies
January 1
2 companies
March 3173 companies(b) Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative financial
statements as of and for the period ended December 31.
The consolidated subsidiaries with balance sheet dates of July 31 and January 1 were consolidated based on its
tentative financial statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

157

Balance Sheet Dates of Consolidated Subsidiaries

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses
Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including thegains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities
In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted market
price over the month preceding the consolidated balance sheet date. The fair value of securities other than Japanesestocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance
sheet date (cost of securities sold is calculated primarily by the moving-average method). Other securities, the fairvalues of which are extremely difficult to determine, are stated at acquisition cost or amortized cost which isdetermined by the moving-average method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average-method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult todetermine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥1,139 million ($10,155 thousand) and ¥9,161 million for the fiscal years ended March
31, 2017 and 2016, respectively.

158

Standards of Accounting Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:• Security whose fair value is 50% or less of the acquisition cost
• Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted
In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The
face value of these bills amounted to ¥1,315,137 million ($11,721,364 thousand) and ¥1,304,681 million as of March 31,2017 and 2016, respectively.

(5) Derivative Transactions
Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method of hedge
accounting (see (22) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)
Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others 2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)
Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets
Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets
Bond issuance costs are expensed as incurred.

159

Standards of Accounting Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(10) Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described
below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable underguarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 11 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its present
value of future cash flows discounted using the contractual interest rate before the loan was classified as a
Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of theassessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed
by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale ofcollateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are
written off against the respective claim balances. The total directly written-off amounts were ¥93,782 million ($835,853
thousand) and ¥157,807 million as of March 31, 2017 and 2016, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments
Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments
Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

(13) Reserve for Variable Compensation
To prepare for the payments of performance payments and stock compensation to be paid as variable compensation
within compensation for directors, executive officers and specialist officers of Mizuho Financial Group, Inc., Mizuho
Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the estimated payment based on thestandard amount regarding variable compensation of this fiscal year is provided.

(14) Reserve for Director and Corporate Auditor Retirement Benefits
Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of thisfiscal year, based on the internally established standards.

160

Standards of Accounting Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(15) Reserve for Possible Losses on Sales of Loans
Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

(16) Reserve for Contingencies
Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(17) Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities atthe estimated amount of future claims for withdrawal by depositors.

(18) Reserve for Reimbursement of Debentures
Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimatedamount for future claims.

(19) Reserve under Special Laws
Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥2,309
million ($20,584 thousand) and ¥2,024 million as of March 31, 2017 and 2016, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(20) Accounting Method for Retirement Benefits
In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected
retirement benefits to the period up to the end of this fiscal year. Unrecognized actuarial differences are recognized asincome or expenses from the following fiscal year under the straight-line method over a certain term within the averageremaining service period of the employees (mainly 10 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(21) Assets and Liabilities Denominated in Foreign Currencies
Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

161

Standards of Accounting Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(22) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for by
the method stipulated in the JICPA Industry Audit Committee Report No.24, February 13, 2002.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25, July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of theforeign currency position of the hedged monetary claims and liabilities is equal to or larger than that of currency swap
transactions, exchange swap transactions, and similar transactions designated as the hedging instruments of theforeign exchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

162

Standards of Accounting Method

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(23) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(24) Amortization Method of Goodwill and Amortization Period
Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The full amountof Goodwill that has no material impact is expensed as incurred.

(25) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows
In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Change in Accounting Policies(Application of “Revised Implementation Guidance on Recoverability of Deferred Tax Assets”)
MHFG has applied “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.
26, March 28, 2016) (hereinafter, the “Recoverability Implementation Guidance”) from the consolidated fiscal year ended
March 31, 2017 and partially revised the accounting method of recoverability of deferred tax assets.
The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in
Article 49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of Deferred Tax
Assets and Deferred Tax Liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability
Implementation Guidance were applied as of April 1, 2016, and (ii) the amounts of Deferred Tax Assets and Deferred
Tax Liabilities at the end of the fiscal year ended March 31, 2016, were added to Retained Earnings as of April 1, 2016.
As a result, Deferred Tax Assets (before offset) and Retained Earnings each increased by ¥1,426 million as of April 1,
2016.
As a result of reflection of the effects on the Net Assets as of April 1, 2016, the balance of Retained Earnings as ofApril 1, 2016 in the consolidated statements of changes in net assets increased by ¥1,426 million.
7. Additional Information(The Board Benefit Trust (“BBT”) Program)Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing improved
corporate value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy
defined under the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a performance-based stockcompensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer,
and Specialist Officer to exert maximum effort in performing his or her duties, and also as consideration for such exertionof effort.
(1) Outline of the Program
The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will beacquired through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be
distributed to Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust &Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules onDistribution of Shares to be prescribed in advance. The number of MHFG’s shares to be distributed will be determined
pursuant to a performance evaluation based on the annual business plan.
A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution
will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on
certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, andSpecialist Officers.
Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.
(2) MHFG’s Shares Outstanding in the Trust
MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount(excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of March
31, 2017 was ¥1,428 million for 9,000 thousand shares.

163

Standards of Accounting Method、Change in Accounting Policies、Additional Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

8. Securities Lending and Borrowing Transactions
MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge as of March 31,2017 and 2016. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased
under resale agreements and securities borrowed with cash collateral. Among them, the totals of securities repledged
were ¥13,471,535 million ($120,067,159 thousand) and ¥11,479,189 million as of March 31, 2017 and 2016,
respectively, and securities neither repledged nor re-loaned were ¥675,330 million ($6,018,985 thousand) and ¥798,317
million as of March 31, 2017 and 2016, respectively.

9. Trading Assets and Liabilities
Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥ 4,800,408¥ 5,467,948$ 42,784,393

5,409,525
151,853¥ 10,361,787

7,369,060
167,514¥ 13,004,522

48,213,239
1,353,416$ 92,351,048¥ 2,221,541¥ 2,630,040$ 19,799,836

5,475,724
226,019¥ 7,923,285

7,500,312
145,781¥ 10,276,133

48,803,250
2,014,436$ 70,617,522

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

164

Securities Lending and Borrowing Transactions、Trading Assets and Liabilities2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

10. Securities
Millions of yen
2017

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥ 13,324,305
284,47299
2,696,287
3,958,439
12,089,553¥ 32,353,158

2016

Thousands of U.S. dollars
2017¥ 19,525,905
240,68099
2,867,899
3,898,737
12,972,648¥ 39,505,971$ 118,754,950
2,535,403
891
24,031,081
35,280,212
107,750,035$ 288,352,572*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥238,208 million ($2,123,072 thousand) and ¥238,076 million as ofMarch 31, 2017 and 2016, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥76,405 million ($680,977 thousand) and ¥81,335 million as of March 31, 2017and 2016, respectively.

11. Loans and Bills Discounted
Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥ 67,456,670
7,487,574
2,754,696
285,395¥ 61,992,177
7,981,743
2,925,491
427,206$ 601,218,100
66,734,180
24,551,658
2,543,631

348,514
4,941¥ 78,337,793

377,325
4,941¥ 73,708,884

3,106,192
44,043$ 698,197,804

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, 2017 and 2016 include the following:
Millions of yen
2017

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¥ 33,330
430,525
7,896
414,700¥ 886,452

2016

Thousands of U.S. dollars
2017¥ 24,315
396,720907
463,108¥ 885,052$

297,063
3,837,128
70,374
3,696,083$ 7,900,648*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the

Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are

deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

165

Securities、Loans and Bills Discounted

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥91,657,478 million ($816,911,573
thousand) and ¥88,290,896 million as of March 31, 2017 and 2016, respectively. Of these amounts, ¥71,552,248 million($637,720,573 thousand) and ¥68,209,392 million as of March 31, 2017 and 2016, respectively, relate to contracts of which
the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

12. Foreign Exchange Assets and Liabilities
Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥ 1,029,741
453,929
344,764347¥ 1,828,782

877,475
301,643
268,348275¥ 1,447,743$ 9,177,733
4,045,717
3,072,769
3,093$ 16,299,312

¥

¥

¥

459,956
13,736
14,5994,180
492,473$ 4,162,367
122,524
354,438
49,209$ 4,688,538

Millions of yen
2017

2016

Thousands of U.S. dollars
2017279,470
45,0733,819,587¥ 4,144,131$ 2,411,218
426,453
34,420,256$ 37,257,927

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

¥

467,017
13,74739,767
5,521
526,053¥

13. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

¥

270,538
47,8483,861,952¥ 4,180,339¥

166

Loans and Bills Discounted、Foreign Exchange Assets and Liabilities、Other Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

14. Tangible Fixed Assets
Millions of yen
2017

2016

Thousands of U.S. dollars
2017

605,626
344,31124,91919,69891,237¥ 1,085,791¥ 857,628$ 5,715,547
3,102,211
233,609
197,280879,070$ 10,127,717$ 7,652,062

34,267

296,0422016

Thousands of U.S. dollars
2017¥ (344,741)¥ (304,828)$ (3,072,566)(164,430)(154,689)(1,465,515)(2)¥ (509,175)(13)¥ (459,531)(25)$ (4,538,106)

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers¥641,284
348,068
26,21022,134
98,631¥ 1,136,329¥ 858,561¥

33,215

15. Reserves for Possible Losses on Loans
Millions of yen
2017

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

16. Assets Pledged as Collateral
The following assets were pledged as collateral:
Millions of yen
2017

As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets¥ 1,882,123
8,425,757
7,128,930―

2016

Thousands of U.S. dollars
2017¥ 2,674,897
10,631,675
5,475,195
1,015$ 16,774,716
75,095,877
63,537,708―

The following liabilities were collateralized by the above assets:
Millions of yen
2017

As of March 31,

Deposits
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money

¥

2016

Thousands of U.S. dollars
2017813,050$ 8,188,445

6,109,314

6,090,727

54,450,217

1,219,762
4,810,490

2,553,436
6,115,880

10,871,321
42,874,249

918,743

167

Tangible Fixed Assets、Reserves for Possible Losses on Loans、Assets Pledged as Collateral¥2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥45,404 million($404,677 thousand) and ¥45,101 million, Trading Assets of ¥126,225 million ($1,125,002 thousand) and ¥98,922 million,
Securities of ¥3,919,060 million ($34,929,235 thousand) and ¥4,323,535 million, and Loans and Bills Discounted of¥238,686 million ($2,127,332 thousand) and ¥307,997 million as of March 31, 2017 and 2016, respectively.
Other Assets included guarantee deposits of ¥128,941 million ($1,149,215 thousand) and ¥119,149 million, collateralpledged for derivatives transactions of ¥769,243 million ($6,856,007 thousand) and ¥743,406 million, margins for futurestransactions of ¥269,376 million ($2,400,860 thousand) and ¥192,188 million, and other guarantee deposits of ¥337,778
million ($3,010,505 thousand) and ¥187,592 million as of March 31, 2017 and 2016, respectively.

17. Deposits
Millions of yen
2017

As of March 31,

Current Deposits
Ordinary Deposits*1
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥

9,983,448
64,356,023
1,025,510
39,176,701
10,631,277
5,503,533¥ 130,676,494

2016

¥

7,998,604
52,384,886
931,867
38,483,960
11,827,533
5,829,751¥ 117,456,604

Thousands of U.S. dollars
2017$

88,979,040
573,583,100
9,140,024
349,168,461
94,752,915
49,051,099$ 1,164,674,639*1 Ordinary Deposits includes savings deposits.

18. Call Money and Bills Sold
Millions of yen
2017

As of March 31,

Call Money
Bills SoldTotal

¥ 1,255,172—¥ 1,255,172

2016

Thousands of U.S. dollars
2017¥ 2,521,008—¥ 2,521,008$ 11,186,920—$ 11,186,920

19. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2017¥789,705

2016

Thousands of U.S. dollars
2017¥1,010,139$7,038,377

Average interest rates*1
2017
2016

1.10%

0.60%

*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.

168

Assets Pledged as Collateral、Deposits、Call Money and Bills Sold、Commercial Paper2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

20. Borrowed Money
Millions of yen
2017

As of March 31,¥6,307,230―
6,307,230

Borrowed Money
Bills Rediscounted
Other Borrowings*2,3

2016

Thousands of U.S. dollars
2017¥7,503,543―
7,503,543$56,214,177―
56,214,177

Average interest rates*1
2017
2016

0.38%
―%
0.38%

0.26%
—%
0.26%

*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 ¥252,000 million ($2,245,989 thousand) and ¥307,000 million as of March 31, 2017 and 2016, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:

Fiscal year ending March 31, 2018
2019
2020
2021
2022

¥604,614 million¥2,322,042 million¥773,087 million¥1,468,664 million¥73,366 million($5,388,717 thousand)($20,695,566 thousand)($6,890,263 thousand)($13,089,705 thousand)($653,891 thousand)21. Short-term Bonds
Major components of Short-term Bonds at March 31, 2017 were as follows:
Issuer

Issue

MHFG

Jan. 2017

MHSC

Apr. 2016–Mar. 2017

*1Oct. 2016–Mar. 2017

Total

Millions of yen Thousands of U.S. dollars¥80,000[80,000]
111,300[111,300]
35,048[35,048]¥226,348$713,012[713,012]
991,979[991,979]
312,371[312,371]$2,017,362

Interest rates

Due

0.02%

Apr. 2017

0.00%–0.01%

Apr. 2017–
Sep. 2017
Apr. 2017–
May. 2017

0.02%–0.10%*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiaries, JAPAN SECURITIZATION CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds at March 31, 2016 were as follows:
Issuer

Issue

MHFG

Jan. 2016

MHSC

Oct. 2015–Mar. 2016

*1

Nov. 2015–Mar. 2016

Total

Millions of yen

Interest rates¥78,000[78,000]
513,700[513,700]
56,681[56,681]¥648,381

0.11%

Apr. 2016

0.00%–0.10%

Apr. 2016–
Feb. 2017
Apr. 2016–
Jun. 2016

0.07%–0.23%

Due*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and the overseas consolidated

subsidiaries, BLUE HEAVEN FUNDING CORPORATION, JAPAN SECURITIZATION CORPORATION and ETERNAL FUNDING CORPORATION.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.

169

Borrowed Money、Short-term Bonds

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

22. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2017 were as follows:

IssuerDescription

Issue

MHFG

Straight Bonds

MHTB

Straight Bonds

Jul. 2014–
Feb.2017
Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Mar. 2017*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Sep. 2005–
May 2012
Jan. 2003–
Mar. 2017

Total

Millions of yen¥2,632,250[—]
10,000[—]3,726,331[1,264,044](US$ 15,913,528 thousand)(AUD 1,170,000 thousand)(SGD 290,000 thousand)(HKD 1,430,000 thousand)(CNY 250,000 thousand)(THB 3,000,000 thousand)
335,991[—](US$ 2,994,577 thousand)
47,600[—]812,362[150,786](US$ 1,572,350 thousand)(AUD 30,060 thousand)(EUR 895,400 thousand)(BRL 14,500 thousand)¥7,564,535

Thousands of U.S.
dollars

Interest
rates$23,460,339[—]
89,127[—]33,211,509[11,265,991]

0.10%–
4.35%
2.24%
0.20%–
4.78%

Apr. 2017–

2,994,578[—]

4.20%–
4.60%

Jul. 2022–
Mar. 2024

424,242[—]7,240,305[1,343,908]

1.30%–
2.75%
0.00%–
23.80%

Jun. 2018–

Due

Apr. 2021–
Dec. 2020

Apr. 2017–
Mar. 2047$67,420,100*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial

Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited, Mizuho Finance (Curaçao)

N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc and Mizuho Securities USA LLC.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2018 ¥1,414,830 million ($12,609,899 thousand)2019 ¥648,802 million ($5,782,551 thousand)2020 ¥837,267 million ($7,462,278 thousand)2021 ¥262,480 million ($2,339,396 thousand)2022 ¥1,068,917 million ($9,526,896 thousand)4. Bonds and Notes as of March 31, 2017 included subordinated bonds and notes of ¥2,430,741 million($21,664,364 thousand).
5. No collateral was provided for the above Bonds and Notes.

170

Bonds and Notes

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Major components of Bonds and Notes as of March 31, 2016 were as follows:

IssuerDescription

Issue

MHFG

Straight Bonds

MHTB

Straight Bonds

Jul. 2014–
Oct. 2015
Dec. 2005

MHBK

Straight Bonds

Aug. 2005–
Mar. 2016*1

Straight Bonds

Jul. 2012–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Sep. 2005–
May 2012
Jan. 2003–
Mar. 2016

Total

Millions of yen¥584,517[—]
10,000[—]4,376,773[670,580](US$ 17,046,442 thousand)(AUD 930,000 thousand)(SGD 250,000 thousand)(HKD 1,220,000 thousand)(CNY 250,000 thousand)(THB 3,000,000 thousand)
337,361[—](US$ 2,993,712 thousand)
48,600[—]763,675[143,009](US$ 1,158,490 thousand)(AUD 31,600 thousand)(EUR 295,000 thousand)(BRL 14,500 thousand)¥6,120,928

Interest
rates

0.62%–
4.35%
2.24%

Due

Jul. 2024–
Dec. 2020

0.10%–
9.00%

Apr. 2016–

4.20%–
4.60%

Jul. 2022–
Mar. 2024

1.30%–
2.75%
0.00%–
16.00%

Jun. 2018–
Apr. 2016–
Mar. 2046*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Financial Group (Cayman) Limited, Mizuho Financial

Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited, Mizuho Finance (Curaçao)

N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho

International plc and Mizuho Securities USA Inc.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2017 ¥813,589 million
2018 ¥1,334,120 million
2019 ¥580,037 million
2020 ¥809,661 million
2021 ¥270,333 million
4. Bonds and Notes as of March 31, 2016 included subordinated bonds and notes of ¥1,713,478 million.
5. No collateral was provided for the above Bonds and Notes.

171

Bonds and Notes

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

23. Other Liabilities
Millions of yen
2017

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
Lease Liabilities*1*2
Other
Total

¥201,532
129,676
71,63540,9473,439,377¥3,883,168

2016

Thousands of U.S. dollars
2017¥174,043
148,994
96,71437,8105,075,034¥5,532,596$1,796,187
1,155,761
638,465364,947
30,653,986$34,609,346. It is the weighted-average interest rate of debts*1 Average interest rate is 1.41% and 1.50% in the fiscal year ended March 31, 2017 and 2016, respectively

calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2018 ¥11,047 million ($98,461 thousand)2019 ¥10,399 million ($92,689 thousand)
2020¥8,508 million ($75,836 thousand)
2021¥6,019 million ($53,646 thousand)
2022¥3,147 million ($28,054 thousand)

24. Reserve for Employee Retirement Benefits(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin Kikin
Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension Plans.
In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension Plans
other than risk-sharing corporate pension as a part of the Termination Allowance Plans while certain other domestic
consolidated subsidiaries have established employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Retirement Benefit Obligations
at the beginning of the period
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Other
Balance of Retirement Benefit Obligations
at the end of the period

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥1,465,148
44,3404,686(15,851)(66,837)
1,884¥1,360,954
37,8589,269
125,669(67,041)(1,562)$13,058,361
395,194
41,773(141,279)(595,699)
16,798¥1,433,371¥1,465,148$12,775,148

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.

172

Other Liabilities、Reserve for Employee Retirement Benefits

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
For the Fiscal Years ended March 31,

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Other
Balance of Plan Assets at the end of theperiodMillions of yen
2017

2016

Thousands of U.S. dollars
2017¥2,060,062
34,86280,40750,095
1,215(50,972)226¥2,056,818
39,260(33,958)
48,924
1,192(50,649)(1,525)$18,360,631
310,721716,643446,481
10,830(454,298)
2,016¥2,175,897¥2,060,062$19,393,024(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheet
As of March 31,

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

As of March 31,

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recordedin the Consolidated Balance Sheet

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥1,433,371(2,175,897)¥1,465,148(2,060,062)$12.775,148(19,393,024)¥(742,525)¥(594,914)$(6,617,876)

2016

Thousands of U.S. dollars
2017¥55,236(797,762)¥51,514(646,428)$492,306(7,110,182)¥(742,525)¥(594,914)$(6,617,876)

2016

Thousands of U.S. dollars
2017¥43,302
4,686(34,862)
38,6993,659¥36,841
9,269(39,260)(3,347)
4,177$385,942
41,773(310,721)
344,91332,617¥55,485¥7,681$494,524

Millions of yen
2017(iv) Employee Retirement Benefit Expenses and the breakdown
For the Fiscal Years ended March 31,

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized Actuarial Differences
Other
Net Retirement Benefit Expenses for DefinedBenefit Corporate Pension Plans

Millions of yen
2017

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
(v) Remeasurements of Defined Benefit Plans in Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Other Comprehensive Income (before deducting tax effect)
was as follows:
For the Fiscal Years ended March 31,

Unrecognized Actuarial Differences
Total

173

Reserve for Employee Retirement Benefits

Millions of yen
2017¥(134,780)¥(134,780)

2016

Thousands of U.S. dollars
2017¥162,971¥162,971$(1,201,249)$(1,201,249)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(vi) Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income
Breakdown of Remeasurements of Defined Benefit Plans in Total Accumulated Other Comprehensive Income (before
deducting tax effect) was as follows:

As of March 31,

Unrecognized Actuarial Differences
Total

Millions of yen
2017¥(201,608)¥(201,608)

2016

Thousands of U.S. dollars
2017¥(66,853)¥(66,853)$(1,796,863)$(1,796,863)(vii) Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31,

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

2017

2016

56.65%
17.03%
12.49%
4.51%
5.72%
3.60%
100.00%57.09%
18.37%
11.71%
4.85%
5.88%
2.10%
100.00%Note: The total amount of Plan Assets includes 57.28% and 56.64% of Employee Retirement Benefit Trusts established for
the Corporate Pension Fund Plans and the Termination Allowance Plans as of March 31, 2017 and 2016,
respectively.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets
In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan Assets
and current and expected future long-term rate of return from various assets constituting Plan Assets have been
considered.
(viii) Basis of Actuarial Calculation
Major Basis of Actuarial Calculation
For the Fiscal Years ended March 31,

Discount Rate
Expected Long-term Rate of Return on Plan Assets

2017

2016

mainly 0.02%- 1.09%
mainly 1.47%- 1.90%

mainly 0.01%- 0.80%
mainly 1.66%- 2.20%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its domestic consolidated
subsidiaries was ¥3,186 million ($ 28,399 thousand) and ¥2,698 million for the fiscal years ended March 31, 2017 and2016, respectively.

174

Reserve for Employee Retirement Benefits

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

25. 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
2017¥5,083,740
138,81751,023¥5,273,581

2016

Thousands of U.S. dollars
2017¥4,611,650
137,280
49,228¥4,798,158$45,309,626
1,237,234
454,754$47,001,614

Note: Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article
2, Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31,2007)) amounted to ¥1,169,267 million ($10,421,280 thousand) and ¥1,039,783 million as of March 31, 2017 and2016, respectively.
(2) The principal amounts promised to be indemnified for money trusts which are entrusted to domestic consolidated trust
banking subsidiaries, were ¥1,413,077 million ($12,594,272 thousand) and ¥1,765,076 million as of March 31, 2017 and2016, respectively.

175

Acceptances and Guarantees

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

26. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Other
Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Net Defined Benefit Asset
Net Unrealized Gains on Other
Securities
Other
Total
Net Deferred Tax Assets

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥180,900
135,401¥73,028
156,082$1,612,302
1,206,790

158,222

156,418

1,410,184

191,895
205,790872,210(309,434)¥562,776

184,132
177,860
747,523(275,445)¥472,077

1,710,297
1,834,138
7,773,711(2,757,882)$5,015,829¥(243,814)¥(197,203)$(2,173,035)(468,793)(131,902)¥(844,510)¥(281,734)(507,553)(145,602)¥(850,359)¥(378,281)(4,178,196)(1,175,600)$(7,526,831)$(2,511,002)

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 ¥271,265 million ($2,417,699 thousand) and ¥268,543 million as ofMarch 31, 2017 and 2016, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax
assets in the above table and in the consolidated balance sheet exclude the equivalent amount of deferred tax
assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.
(2) For the fiscal years ended March 31, 2017 and 2016, the reconciliation of the statutory tax rate of MHFG to the effective
income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Impact of corporate restructuring in overseas
group companies
Adjustment to reduce the amount of deferred
tax assets at the end of period due to changes
in tax rates
Other
Effective Income Tax Rate

2017

2016

30.86%

33.06%

7.66(4.47)(0.96)(1.29)(2.59)(3.27)(17.00)0.01―(0.41)
17.56%

0.94
3.04
28.02%

176

Deferred Tax Assets and Liabilities2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

27. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥117,950 million ($1,051,249 thousand) and ¥131,964 million as ofMarch 31, 2017 and 2016, respectively.

177

Revaluation of Land2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

28. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2017 and 2016 were as follows:
Number of shares
As of March 31, 2017Class of stock

Common Stock

Authorized

Issued andoutstanding

Interimcash
dividend

48,000,000,000

25,386,307,945¥3.75

Per share (Yen)
Year-end
cash Liquidation
dividend
value

¥3.75

¥—

With
Convertible Redemption
or notor notNo

No

Notes: 1. Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
6,705 thousand shares
2. All of the shares of the Eleventh Series Class XI Preferred Stock that had not been requested for acquisition by
June 30, 2016 were acquired as of July 1, 2016 and all of the shares of the Eleventh Series Class XI werecancelled on July 13, 2016.
Accordingly, the common stock shareholders approved an amendment to the Article of Incorporationaccompanied by a decrease in the total number of authorized shares and the total number of authorized shares of
the Class XI preferred stock at the Ordinary General Meeting of Shareholders of MHFG held on June 23, 2017.
As a result of the amendment, each total number of authorized shares, effective on the same day,shall be as
follows:
First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

178

Common Stock and Preferred Stock2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Number of shares
As of March 31, 2016
Class of stock

AuthorizedCommon Stock
48,000,000,000
Eleventh Series Class XI
Preferred Stock914,752,000

Per share (Yen)
Year-end
cash Liquidation
dividendvalue

Issued andoutstanding

Interimcash
dividend

With
Convertible Redemption
or notor not25,030,525,657

¥3.75

¥3.75

¥—

No

No

914,752,000

10

10

1,000

Yes

No

Notes: 1. Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock6,939 thousand shares
Eleventh Series Class XI Preferred Stock815,828 thousand shares
2. Each total number of shares which are authorized to be issued is as follows:First Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

179

Common Stock and Preferred Stock2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

29. Stock Options
Outline of stock options and changes
For the fiscal year ended March 31, 2017(i) Outline of stock options

As of March 31, 2017

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

Second Series of Stock
Acquisition Rights of MHFG

4

Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG
5,409,000

Common stock

Third Series of Stock
Acquisition Rights of MHFG

4

Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG
5,835,000

Common stock

4
4
12

71

6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
August 27, 2010
February 17, 2009
September 28, 2009
to August 26, 2030
to February 16, 2029
to September 25, 2029

180

Stock Options

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2017

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2017

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period*1: Shown in number of shares

181

Stock Options

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

Fifth Series of Stock
Acquisition Rights of MHFG

6

Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG
12,452,000

6Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

2
12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK, MHTB
or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

Sixth Series of Stock
Acquisition Rights of MHFG

Common stock

6
36
22

134
7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC.
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2017

Non-vested
As of March 31, 2016
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2016
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2017

Non-vested
As of March 31, 2016
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2016
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

124,000───
124,000

325,000──
105,000
220,000

568,000──
237,000
331,000

1,796,000
──
830,000
966,000

3,486,000
──
1,279,000
2,207,000

─
─
─
─
─

─
105,000
105,000───
237,000
237,000───
830,000
830,000───
1,279,000
1,279,000──

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

3,560,000
──
1,511,000
2,049,000

7,331,000
──
2,409,000
4,922,000

─
1,511,000
1,511,000
───
2,409,000
2,409,000
──

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2017

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2017

Exercise price
Average stock priceupon exercise
Fair value at grant date

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share─¥162.80¥162.80¥162.80¥162.67¥190.91
per share¥168.69
per share¥119.52
per share¥91.84per share¥113.25
per share

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥162.42¥162.39¥192.61
per share¥186.99
per share

182

Stock Options

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.
For the fiscal year ended March 31, 2016(i) Outline of stock options
As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

183

Stock OptionsFirst Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

Second Series of Stock
Acquisition Rights of MHFG

4

Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG
5,409,000

Common stock

Third Series of Stock
Acquisition Rights of MHFG

4

Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG
5,835,000

Common stock

4
4
12

71

6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2016

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG
Common stock

Fifth Series of Stock
Acquisition Rights of MHFG

6

Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG
12,452,000

6Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights whichhave been allotted based on his or her capacity as a Director
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
MHSC immediately following the date on which such grantee
loses the status as a Director or an Executive Officer of
MHFG, MHBK, MHCB, MHTB or MHSC.

April 1, 2011
to March 31, 2012
December 9, 2011
to December 8, 2031

Sixth Series of Stock
Acquisition Rights of MHFG

April 1, 2012
to March 31, 2013
September 3, 2012
to August 31, 2032

Common stock

6
36
22

134
7,932,000

February 17, 2014
The grantee may exercise theStock Acquisition Rights whichhave been allotted based on
his or her capacity as a
Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC immediately
following the date on whichsuch grantee loses the status
as a Director or an Executive
Officer of MHFG, MHBK,MHTB or MHSC.
April 1, 2013
to March 31, 2014
February 18, 2014
to February 17, 2034

Seventh Series of Stock
Acquisition Rights of MHFG

Directors
Executive Officers as definedin the Companies Act
Executive Officers as definedin our internal regulations
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

2
12
37
32
113
9,602,000

December 1, 2014
The grantee may exercise the Stock Acquisition
Rights which have been allotted based on his or
her capacity as a Director, an Executive Officer as
defined in Companies Act or an Executive Officer
as defined in our internal regulations of MHFG,MHBK, MHTB or MHSC immediately following thedate on which such grantee loses the status as a
Director, an Executive Officer as defined inCompanies Act or an Executive Officer as definedin our internal regulations of MHFG, MHBK, MHTB
or MHSC.
April 1, 2014 to March 31, 2015
December 2, 2014 to December 1, 2034

*1: Shown in number of shares

184

Stock Options

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2016

Non-vested
As of March 31, 2015
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2015
VestedExercised
Forfeited
Outstanding

For the Fiscal Year ended
March 31, 2016

Non-vested
As of March 31, 2015
GrantedForfeited
VestedOutstanding
VestedAs of March 31, 2015
VestedExercised
Forfeited
Outstanding

First Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

164,000
──
40,000124,000

448,000──
123,000
325,000

805,000──
237,000
568,000

2,842,000
──
1,046,000
1,796,000

4,840,000
──
1,354,000
3,486,000

─
40,00040,000───
123,000
123,000───
237,000
237,000───
1,046,000
1,046,000
───
1,354,000
1,354,000──

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

5,257,000
──
1,697,000
3,560,000

9,602,000
──
2,271,000
7,331,000─
1,697,000
1,697,000
───
2,271,000
2,271,000
──

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2016

Exercise price
Average stock priceupon exercise
Fair value at grant date

As of March 31, 2016

Exercise price
Average stock priceupon exercise
Fair value at grant date

185

Stock OptionsFirst Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥1 per share¥1 per share¥1 per share¥226.30¥226.30¥226.30¥235.08¥229.77¥190.91
per share¥168.69
per share¥119.52
per share¥91.84per share¥113.25
per share

Sixth Series ofStock Acquisition
Rights of MHFG

Seventh Series ofStock Acquisition
Rights of MHFG

¥1 per share¥1 per share¥228.00¥226.91¥192.61
per share¥186.99
per share2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(iii) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be forfeitedin the future cannot be readily estimated.

186

Stock Options

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

30. Interest Income and Interest Expenses
For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses
Total
Net

187

Interest Income and Interest Expenses

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥934,108279,8885,234
77,294¥921,653
308,089
6,847
67,248$8,325,384
2,494,549
46,657
688,900

79,59941,328709,439

13,80655,624¥1,445,555

8,640
72,449¥1,426,256

123,050495,760$12,883,739¥269,618
3,234¥202,894
7,711$2,403,018
28,827

120,362

59,983

1,072,745

2,793
7,386
17,832
156,509¥577,737¥867,818

2,988
2,285
21,505125,203¥422,574¥1,003,682

24,894
65,835
158,938
1,394,916$5,149,173$7,734,566

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

31. Trading Income and Trading Expenses
For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities
Total
Net

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥209,990¥174,355$1,871,569

116,240¥326,230

138,751¥313,106

1,036,013$2,907,582

898
¥898
¥325,332

2,598¥2,598¥310,507

8,010$8,010$2,899,572

2016

Thousands of U.S. dollars
2017¥70,213150,722¥37,137
184,860$625,788
1,343,336

3,737
113,603¥338,276

8,410
95,657¥326,065

33,3081,012,506$3,014,938

2016

Thousands of U.S. dollars
2017¥43,192644
35,814¥79,650$427,957
11,148388,492$827,597

2016

Thousands of U.S. dollars
2017¥295,851
56,22633,630¥271,115—
18,273$2,636,825
501,125
299,735—

12,822—

2,588
49,746¥438,042

7,540
55,286¥365,036

23,070443,369$3,904,124

32. Other Operating Income
For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Gains on Derivatives other thanfor Trading or Hedging
Other
Total

Millions of yen
2017

33. Other Operating Expenses
For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Losses on Devaluation of Bonds
Other
Total

Millions of yen
2017¥48,016
1,250
43,588¥92,856

34. Other Income
For the Fiscal Years ended March 31,

Gains on Sales of Stock
Gains on Step Acquisition
Recovery on Written-off Loans
Indemnity receipt from theerroneous stock order in the
securities subsidiary
Gains on Disposition of Fixed
AssetsOther
Total

Millions of yen
2017

188

Trading Income and Trading Expenses、Other Operating Income、Other Operating Expenses、Other Income2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

35. Other Expenses
For the Fiscal Years ended March 31,

Provision for Reserves for Possible
Losses on Loans
System migration-related expenses
Losses on Sales of Stocks
Losses on Impairment of Fixed
Assets
Losses on Disposition of Fixed
AssetsOther
Total

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥61,557¥4,446$548,637

44,172
34,71834,89245,728393,697309,430

6,651

4,412

59,285

5,197
127,071¥279,368

4,811
134,515¥228,807

46,321
1,132,542$2,489,912

36. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
Millions of yen
For the Fiscal Years ended March 31,

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Remeasurements of Defined Benefit Plans
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive Income

189

Other Expenses、Comprehensive Income

2017

Thousands of U.S. dollars
2016

2017

¥313,180(361,830)(48,649)
37,684(10,965)¥(291,966)(332,063)(624,030)
185,133(438,896)$2,791,270(3,224,867)(433,597)
335,867(97,730)(215,077)(8,233)(223,310)
68,152(155,158)

230,945(28,215)202,730(63,900)
138,829(1,916,908)(73,381)(1,990,289)
607,418(1,382,871)

—
—
—
(11)
(11)

—
—
—
3,630
3,630

—
—
—
(98)
(98)

(12,591)
77(12,514)—(12,514)(10,173)(413)(10,586)(126)(10,712)(112,228)
694(111,534)—(111,534)

96,08038,699134,780(41,191)
93,588(159,624)(3,347)(162,971)
53,609(109,362)

856,336
344,9131,201,249(367,129)
834,120(3,266)¥(88,326)(4,597)¥(421,108)(29,110)$(787,223)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

37. Changes in Net Assets
For the fiscal year ended March 31, 2017(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Eleventh Series Class XI Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

Thousands of Shares
As ofMarch 31, 2017
Remarks

As ofApril 1, 2016

Increase during
the fiscal year

Decrease during
the fiscal year

25,030,525

355,782―

25,386,307

914,752
25,945,277―
355,782

914,752
914,752―
25,386,307

10,92912,1883,125

19,992*3

815,828
826,757

98,923111,112914,752
917,877―
19,992*4*1*2*1 Increases are due to request for acquisition (conversion) of preferred stock (349,677 thousand shares) and exercise of stock acquisition rights (stock options)(6,105 thousand shares).
*2 Decreases are due to cancellation of treasury stock (preferred stock).

*3 Increases are due to acquisition of treasury stock by BBT trust account (9,000 thousand shares), repurchase of shares constituting less than one unit (3,188

thousand shares) and other factors. Decreases are due to exercise of stock acquisition rights (stock options) (266 thousand shares) and repurchase ofshares constituting less than one unit (2,859 thousand shares). The number of Treasury Stock as of March 31, 2017 includes shares held by BBT trust
account (9,000 thousand shares).
*4 Increases are due to acquisition of treasury stock (preferred stock) (75,091 thousand shares) and request for acquisition (conversion) of preferred stock(23,832 thousand shares). Decreases are due to cancellation of treasury stock (preferred stock).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)
Balance asof March
31, 2017(Thousandsof
U.S.dollars)

As ofApril 1,
2016

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2017

Balance as ofMarch 31,2017
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

$—
(—)

1,754

15,633

—
(—)

—
(—)

¥1,754(—)$15,633(—)

Remarks

MHFG

Total

—

190

Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2017

Resolution

Type

May 13,
2016

Common Stock(

The Board of
Directors)

November 14,
2016(

The Board of
Directors)

Eleventh Series Class XI
Preferred Stock

Common Stock

Total

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)¥93,838$836,350

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)¥3.75

RecordDate$0.03

March 31,2016
March 31,
2016

989

8,817

10

0.09

¥95,173$848,249

¥3.75

$0.03

¥190,001$1,693,416//

Effective
Date

June 3,2016

September 30, December 6,
2016
2016

(Note) Cash dividends based on the resolution of the Board of Directors on November 14, 2016 include 33 million of cash
dividends on MHFG shares held by BBT trust account.

Cash dividends with record dates falling in the fiscal year ended March 31, 2017 and effective dates coming after the end of
the fiscal year

Resolution

May 152017(

The Board of
Directors

Total

Type

)

Common Stock

Cash
Cash
Dividends
Dividends(Millions of (Thousands ofyen)
U.S. dollars)¥95,173$848,249¥95,173$848,249

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)

Retained
Earnings

¥3.75

$0.03

/

/

Record Effective
Date
Date

March 31, June 5,
2017
2017

(Note) Cash dividends based on the resolution of the Board of Directors on May 15, 2017 include 33 million of cash
dividends on MHFG shares held by BBT trust account.

191

Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

For the fiscal year ended March 31, 2016(i) Types and number of issued shares and of treasury stock are as follows:

Issued shares
Common stock
Eleventh Series Class XI Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

Thousands of Shares
As ofMarch 31, 2016
Remarks

As ofApril 1, 2015

Increase during
the fiscal year

Decrease during
the fiscal year

24,621,897

408,627—

25,030,525

914,752
25,536,649—
408,627——

914,752
25,945,277

11,649

3,084

3,804

10,929*2

701,631713,280

114,197
117,281—3,804

815,828
826,757*3*1*1 Increases are due to request for acquisition (conversion) of preferred stock (403,667 thousand shares) and exercise of stock acquisition rights (stock options)(4,960 thousand shares).
*2 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights (stock

options) (1,808 thousand shares) and repurchase of shares constituting less than one unit and other factors (1,996 thousand shares).
*3 Increases are due to request for acquisition (conversion) of preferred stock.

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrightsNumber of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)
Balance asof March
31, 2016(Thousandsof
U.S.dollars)

As ofApril 1,
2015

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2016

Balance as ofMarch 31,
2016
(Millions of
yen)

—
(—)

—
(—)

—
(—)

—
(—)

¥—
(—)

$—
(—)

—

2,762

24,515

—

—
(—)

—
(—)

—

¥2,762(—)$24,515(—)

Remarks

MHFG

Total

—

192

Changes in Net Assets

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2016

Resolution

Type

May 15,
2015

Common Stock(

The Board of
Directors)

Eleventh Series Class XI
Preferred Stock

November 13,
Common Stock2015(

The Board of
Directors)

Eleventh Series Class XI
Preferred Stock

Total

Cash
Dividends(Millions of
yen)

Cash
Dividends
per Share(Yen)¥98,452¥4

March 31,
2015

2,131

10

March 31,2015

¥93,240

¥3.75

1,440

10

¥195,264/

RecordDate

Effective
Date

June 4,2015

September 30,
2015 December 4,
September 30,
2015

2015

Cash dividends with record dates falling in the fiscal year ended March 31, 2016 and effective dates coming after the end of
the fiscal year

Resolution

Type

May 13
2016

Common Stock(

The Board of
Directors

Total

193

Changes in Net Assets)

Eleventh Series Class XI
Preferred Stock

Cash
Dividends(Millions of
yen)

Cash
Resource Dividendsof per ShareDividends(Yen)¥93,838

Retained
Earnings

989

Retained
Earnings¥94,827

Record Effective
Date
Date

March 31,2016 June 3,
2016
March 31,
10
2016

¥3.75

/

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

38. Cash Flows
1. Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
Millions of yen
2017

As of March 31,

Cash and Due from Banks
Less: Due from Banks excluding
due from Central Banks
Cash and Cash Equivalents

2016

Thousands of U.S. dollars
2017¥47,129,583¥36,315,471$420,049,765(1,605,919)¥45,523,663(1,226,348)¥35,089,122(14,313,012)$405,736,753

2. Significant non-fund transactions:
Amount and breakdown of Assets received and Liabilities undertaken as a result of the merger between DIAM Co., Ltd. andMizuho Asset Management Co., Ltd. are as follows:
Millions of yen
2017

As of March 31,

a. Assets

2016

Thousands of U.S. dollars
2017

Total Assets¥40,850¥―$364,088

Cash and Due from Banks

13,704―

122,144

Money Held in Trustb. Liabilities Total Liabilities
Other Liabilities

11,792―

105,101¥ 9,655¥―$86,054

7,528―

67,098The amount allocated to Customer-Related Assets and Deferred Tax Liabilities regarding this amount have not been
included in Assets and Liabilities. Please refer to "Business Combination, etc." for the amount allocated to CustomerRelated Assets.

194

Cash Flows2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

39. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are
summarized as follows:
Lessees:

As of March 31,

Due in One Year or Less
Due after One Year
Total

Millions of yen
2017

2016

Thousands of U.S. dollars
2017¥52,279
211,127¥53,116
223,770$465,954
1,881,706¥263,407¥276,887$2,347,660

2016

Thousands of U.S. dollars
2017¥1,113
9,712

¥692
3,684

$9,922
86,564¥10,825¥4,376$96,486

Lessors:

As of March 31,

Due in One Year or Less
Due after One Year
Total

195

Lease Transactions

Millions of yen
20172017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

40. Financial Instruments

1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments
Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans,stocks and bonds on the investment side, and also engages in trading business for certain financial products. Someconsolidated subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products
The main financial assets of the Mizuho group consist of loans to customers, government bonds and stocks. These
financial assets are subject to various types of risk that may cause the Group to incur losses due to a decline in, or total
loss of, the value of assets, as a result of deterioration in a counterparty’s and/or an issuer’s financial position (“creditrisk”), or due to a decline in the value of assets caused by fluctuations in interest rates, stock prices and foreignexchange rates and so on (“market risk”). The Group may also be exposed to the risk of incurring losses when it
becomes impossible to execute transactions in the market because of market confusion or losses arising fromtransactions at prices that are significantly less favorable than usual (“market liquidity risk “).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho group uses derivative financial products for trading purposes and so on as well.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our board of directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.
More specifically, we allocate risk capital to core group companies, including their respective subsidiaries, tocontrol risk within the limits set for each company. We also control risk within managerially acceptable limits by

196

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

working to ensure that the overall risk we hold on a consolidated basis does not exceed shareholders’ equity andother measures of financial strength. To ensure the ongoing financial health of Mizuho Financial Group, we regularly
monitor the manner in which risk capital is being used in order to obtain a proper grasp of the risk profile within thisframework. Reports are also submitted to the board of directors and other committees of each company.
(c) Credit Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to credit risk management. In
addition, we have established the Risk Management Committee, as one of its business policy committees. This
committee broadly discusses and coordinates basic policy in connection with credit risk management and matters inconnection with overall credit portfolio management and credit risk monitoring for the Mizuho group. Under thecontrol of the Chief Risk Officer of Mizuho Financial Group, the Risk Management Division and the Credit Risk
Management Division jointly monitor, analyze and submit suggestions concerning credit risk and formulate andexecute plans in connection with basic matters pertaining to credit risk management.
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit
concentration risk,” which stems from granting excessive credit to certain individual counterparties or corporategroups. The other type is “chain-reaction default risk,” which arises from granting excessive credit to certain areas,industrial sectors and other groupings. We manage these risks appropriately in line with our specific guidelines foreach.
The board of directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk in line with basic policies set forth by Mizuho Financial Group. Their respective
business policy committees are responsible for discussing and coordinating overall management of their individual
credit portfolios and transaction policies towards obligors.
The chief risk officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. The credit risk management division of each principal
banking subsidiary is responsible for planning and administering credit risk management and conducting credit risk
measuring and monitoring. Each credit division determines policies and approves/disapproves individual transactions
regarding review and management of and collection from customers in accordance with the lines of authority set
forth by each principal banking subsidiary. In addition, each of our principal banking subsidiaries has alsoestablished internal audit groups that are independent of the business divisions in order to ensure appropriate credit
risk management.
(d) Market Risk Management
The board of directors of Mizuho Financial Group determines basic matters pertaining to market risk management
policies. In addition, we have established the Risk Management Committee, as one of its business policy
committees. The committee broadly discusses and coordinates matters relating to basic asset and liability
management policies, risk planning and market risk management and proposes responses to emergencies such assudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Division of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the division assesses and manages the overall market risk of theMizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries and othercore group companies. The division also submits reports to the President & CEO on a daily basis and to our board of
directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.

197

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
Our principal banking subsidiaries and certain other core group companies have formulated their basic policies inline with the basic policies determined by Mizuho Financial Group. Their boards of directors determine importantmatters relating to market risk management while their Chief Executive Officers are responsible for controllingmarket risk. Based on a common Mizuho group risk capital allocation framework, the above-mentioned companies
manage market risk by setting limits according to the risk capital allocated to market risk by Mizuho Financial Group.
They have the same market risk management structure as the Mizuho Financial Group, such as their business policy
committees being responsible for overall discussion and coordination of the market risk management.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Banking Business
The following table shows the VAR figures relating to our banking activities for the fiscal years indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
AverageThousands of U.S. dollars

2017

2016

2017

¥292.7
397.5
247.4
331.0

¥321.5
360.6
190.0
284.9

$2,609,540
3,542,851
2,205,433
2,950,809[Definition of Banking Business]
The following transactions are categorized as banking business, with trading business and cross-shareholdings
being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding cross-shareholdings), bonds, investment trusts, etc. and hedges against related market
risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• VAR : historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of three years.

198

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal years indicated :Billions of yen

Thousands of U.S. dollars

For the Fiscal Years ended March 31,

2017

2016

2017

As of fiscal year end
Maximum
Minimum
Average

¥2.6
5.8
2.3
3.3

¥2.0
4.5
1.8
2.9

$23,230
52,492
21,29530,234[Definition of Trading Business](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• VAR: historical simulation method;• confidence interval: one-tailed 99%;
• holding period of one trading day; and• historical observation period of three years.
iii. Cross-shareholdings
For cross-shareholdings, we take the same market risk management approach as that for Banking and Tradingbusinesses with the use of VAR and risk indices.
The risk index for the cross-shareholdings (sensitivity of the portfolio to a 1% change in the equity index of
TOPIX) is ¥31.7 billion ($282,851 thousand) and ¥29.7 billion for the fiscal years ended March 31, 2017 and 2016,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level neither takes account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The historical simulation method used as the measurement technique of VAR assumes that change in a market
movement follows an empirical distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. We check the validity of themarket risk measurement made by VAR approach periodically by the back-test which compares VAR with actual
profit and loss. In addition to VAR, we make a wide variety of management and controls such as risk indicesmonitoring, implementation of stress tests, loss limit monitoring in order to make strict risk management by
capturing carefully all risks, including what VAR approach is not able to cover.
We changed our VAR models from the variance co-variance model to the historical simulation method, which
has been used since the beginning of the fiscal year ended March 31, 2017.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Division is responsible for monitoring and adjusting the cash

199

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

flow management situation and for planning and implementing cash flow management. Reports on the cash flow
situation are submitted to the Risk Management Committee, the Balance Sheet Management Committee, theexecutive management committee and the President & CEO.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the Risk Management Committee, discussed further by the
executive management committee and determined by the President & CEO. We have established classifications forthe cash flow conditions affecting the Group, ranging from “normal” to “anxious” and “crisis,” and have establishedprocedures for dealing with cases which are deemed to fall into the “anxious” or “crisis” categories. In addition, we
have constructed a system under which we will be able to respond smoothly in the event of emergency situations
that affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others
Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

200

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31,2017 and 2016. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).
Millions of yen
As of March 31, 2017

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Reserves for Derivative Transactions *1
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥47,127,865
1,034,901
8,967,777¥47,127,865
1,034,901
8,967,777¥―――

3,350,051
2,744,844

3,350,051
2,744,847―
3

4,800,408
247,080

4,800,408
247,080――

3,815,674
27,946,221
78,337,793(433,661)
77,904,132¥177,938,958¥120,045,217
10,631,277
1,255,172
17,969,753

3,846,718
27,946,221

31,043―78,916,087¥178,981,961¥120,044,703
10,631,008
1,255,172
17,969,753

1,011,955¥1,043,002¥(514)(268)――

1,679,300

1,679,300―

2,221,541
6,307,230
7,564,535
4,784,077¥172,458,105

2,221,541
6,281,775
7,626,076
4,784,077¥172,493,409―(25,454)
61,541―¥35,303¥177,922¥―¥[119,961]
302,350(4,466)¥177,922*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

201

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Millions of yen
As of March 31, 2016

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Reserves for Derivative Transactions *1
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference¥36,314,173
892,7817,805,798¥36,314,173
892,7817,805,798¥———

3,407,390
2,979,413

3,407,390
2,979,419—
6

5,467,948
175,135

5,467,948
175,135——

4,817,574
34,083,510
73,708,884(411,319)
73,297,564¥169,241,291¥105,629,071
11,827,533
2,521,008
16,833,346

4,873,209
34,083,510

55,634—74,465,870¥170,465,237¥105,635,132
11,827,239
2,521,008
16,833,346

1,168,305¥1,223,946¥6,061(293)——

2,608,971

2,608,971—

2,630,040
7,503,543
6,120,928
5,067,490¥160,741,933

2,630,040
7,510,534
6,222,223
5,067,490¥160,855,987—
6,990
101,295—¥114,053¥493,240¥—¥19,666
481,660(8,086)¥493,240*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

202

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
As of March 31, 2017

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes(9) Due to Trust Accounts
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting
Reserves for Derivative Transactions *1
Total Derivative Transactions

Consolidated Balance
Sheet Amount

Fair Value

Difference$420,034,456
9,223,721
79,926,715$420,034,456
9,223,721
79,926,715$———

29,857,860
24,463,855

29,857,860
24,463,884—
29

42,784,393
2,202,148

42,784,393
2,202,148——

34,007,790
249,075,056
698,197,804(3,865,076)
694,332,728$1,585,908,722$1,069,921,724
94,752,915
11,186,920
160,158,233

34,284,475
249,075,056

276,685—

703,351,941$1,595,204,649$1,069,917,141
94,750,519
11,186,920
160,158,233

9,019,213$9,295,927$(4,583)(2,396)——

14,967,025

14,967,025—

19,799,836
56,214,177
67,420,100
42,638,836$1,537,059,766

19,799,836
55,987,307
67,968,600
42,638,836$1,537,374,417—(226,870)
548,500—$314,651$1,585,761$—$[1,069,176]
2,694,749(39,812)$1,585,761*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.

Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.

*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading

Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

203

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since contractual terms of these items aremainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values
to be fair values.
(2) Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under
Securities Borrowing Transactions
Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items
approximate book values, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6) Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7) Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other
Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fairvalues.
The notes to Money Held in Trust based on holding purpose are stated in “41.Fair Value of Securities and Money
Held in Trust.”(8) Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting
the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss
and various risk factors by categories according to the internal ratings and terms.
Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably
calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices
based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method.
The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices
may not reflect the fair value, are based on the reasonably calculated prices as book value. In deriving the reasonably
calculated prices, we used the discount cash flow method as well as other methods. The price decision variables include
the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese
Government Bonds as underlying assets.
The notes to Securities based on holding purpose are stated in “41.Fair Value of Securities and Money Held in Trust.”(9) Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount of204

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Reserves for Possible Losses on Loans in the consolidated balance sheet as of the consolidated balance sheet date
and we thus deem such amount to be fair values.
Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans
to within the value of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1) Deposits (2) Negotiable Certificates of Deposit
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated byclassifying them based on their terms and by discounting the future cash flows. The discount rates used in suchcalculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months)
approximate book values, we mainly deem the book values to be fair values.
(3) Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under
Securities Lending Transactions
Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values
approximate book values, we deem the book values to be fair values.
(6) Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7) Borrowed Money
Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest ofsuch Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8) Bonds and Notes
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for
Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by
the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
(9) Due to Trust Accounts
Due to Trust Accounts of consolidated trust banking subsidiaries is used for transactions in which consolidated trust
banking subsidiaries manage fund entrusted to them in bank accounts of consolidated trust banking subsidiaries. As the
purpose is considered to approximate demand deposit, we deem the book values to be fair values.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

205

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 2) Consolidated balance sheet amounts of financial instruments whose fair values are deemed to be extremely
difficult to determine are indicated below, and are not included in “Assets (5) Other Debt Purchased”, “Assets (7)Money Held in Trust” and “Assets (8) Other Securities” in fair value information of financial instruments.
Millions of yen
2017
2016
Consolidated Balance
Consolidated Balance
Sheet Amount
Sheet Amount

As of March 31,
Category¥190,320
86,291
539¥277,151(i) Unlisted Stocks *1(ii) Investments in Partnerships and others *2(iii) Other
Total *3Thousands of U.S. dollars
2017
Consolidated Balance
Sheet Amount¥216,329
69,076571¥285,977$1,696,263
769,086
4,808$2,470,157*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.

*2 Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are

deemed extremely difficult to determine fair values as being subject to disclosure of fair values.

*3 During the fiscal years ended March 31, 2017 and 2016, the amounts of impairment (devaluation) were ¥4,823 million ($42,988 thousand) and ¥1,696

million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥46,346,741¥—¥0Call Loans and Bills Purchased
1,035,746——
Other Debt Purchased
2,380,855
182,930
30,802
7,822,181
7,948,593
1,854,038
Securities *1
Bonds Held to Maturity
1,100,000
1,480,000—
Japanese Government Bonds
1,100,000
1,480,000—
Foreign Bonds———
Other Securities with Maturities
6,722,181
6,468,593
1,854,038
Japanese Government Bonds
3,144,670
5,030,500
487,100
Japanese Local Government
41,30544,60656,456
Bonds
Japanese Corporate Bonds
602,805
611,652
350,394
Foreign Bonds
2,901,555
742,863
934,986
Other
31,84538,97025,10031,782,483
16,083,902
12,194,119
Loans and Bills Discounted *2
Total¥89,368,008 ¥24,215,426 ¥14,078,960

¥—
—
6,496
2,333,771
380,000
380,000—
1,953,771
75,230¥——1,199
2,923,163
100,000
100,000—
2,823,163
1,463,100¥——
141,504
3,230,787
708,832—
708,832
2,521,955—

77,05958,478548

As of March 31, 2017
Types of Financial Instruments

Within 1 year

1-3 years

142,663
1,602,879
55,9385,139,898¥7,480,166

205,271760,476
1,071,954
1,716,058
24,35844,871
4,706,564
7,256,890¥7,630,927 ¥10,629,182

206

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Due from Banks¥35,603,859¥—¥—
Call Loans and Bills Purchased
893,545——
Other Debt Purchased
2,627,383
126,890
21,3186,300,043
13,500,981
4,946,401
Securities *1
Bonds Held to Maturity
700,000
1,940,000
640,000
Japanese Government Bonds
700,000
1,940,000
640,000
Foreign Bonds———
Other Securities with Maturities
5,600,043
11,560,981
4,306,401
Japanese Government Bonds
2,430,501
9,498,300
2,169,900
Japanese Local Government
20,01373,21722,057
Bonds
Japanese Corporate Bonds
443,668
891,957
424,692
Foreign Bonds
2,651,489
1,032,778
1,617,235
Other
54,37164,72772,515
26,611,343
16,554,621
12,185,896
Loans and Bills Discounted *2
Total¥72,036,174 ¥30,182,493 ¥17,153,615

¥—
—
7,104
1,948,469
100,000
100,000—
1,848,469
60,000¥——1,895
3,174,295
380,000
380,000—
2,794,295
1,454,430¥——
191,806
3,298,130
989,351—
989,351
2,308,779—

44,12073,799684

As of March 31, 2016
Types of Financial Instruments

As of March 31, 2017
Types of Financial Instruments

Within 1 year

Within 1 year

1-3 years

1-3 years

3-5 years

117,100
1,605,551
21,6985,201,721¥7,157,296

128,379
810,697
1,124,338
1,460,874
13,34636,522
4,585,717
7,452,739¥7,761,908 ¥10,942,676

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

Due from Banks$413,072,563
$—
$1
$—
$—
$—
Call Loans and Bills Purchased
9,231,249—————
Other Debt Purchased
21,219,747
1,630,396
274,530
57,905
10,6901,261,182
69,716,413
70,843,079
16,524,408 20,800,102 26,053,148 28,794,901
Securities *1
Bonds Held to Maturity
9,803,922
13,190,731—
3,386,809
891,265
6,317,583
Japanese Government Bonds
9,803,922
13,190,731—
3,386,809
891,265—
Foreign Bonds
—
—
—
—
—
6,317,583
Other Securities with Maturities
59,912,491
57,652,348
16,524,408 17,413,293 25,161,883 22,477,318
Japanese Government Bonds 28,027,362
44,835,116
4,341,355
670,499 13,040,107—
Japanese Local Government
368,139
397,565
503,180
686,804
521,200
4,891
Bonds
Japanese Corporate Bonds
5,372,597
5,451,453
3,122,947
1,271,514
1,829,518
6,777,864
Foreign Bonds
25,860,564
6,620,886
8,333,217 14,285,913
9,553,959 15,294,637
Other
283,829
347,328
223,709498,563
217,099
399,926
283,266,339 143,350,287 108,681,992 45,810,143 41,947,991 64,678,165
Loans and Bills Discounted *2
Total$796,506,311 $215,823,762 $125,480,931 $66,668,150 $68,011,829 $94,734,248*1 Securities include those of which fair values are extremely difficult to determine.
*2 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be

projected, of ¥461,985 million ($4,117,515 thousand) and ¥420,222 million, and loans with no maturities of ¥711,950 million ($6,345,372 thousand) and¥696,621 million as of March 31, 2017 and 2016, respectively.

207

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2017
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total¥115,871,830¥3,334,187¥696,662¥73,125¥60,455¥8,955

10,421,618
1,255,172
604,614226,348
1,414,830
4,784,077¥134,578,491

150,627—
3,095,130—
1,486,069—¥8,066,014

60,067—
1,542,031—
1,331,397—¥3,630,158——
338,626—
564,022—¥975,775——
377,791—
1,400,953—¥1,839,199——
305,037—
588,868—¥902,861

As of March 31, 2016
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥101,245,149¥3,457,412¥778,440¥73,961¥74,107¥—

11,691,885
2,521,008
1,381,168
648,381813,589
5,067,490¥123,368,674

76,083—
4,279,030—
1,914,157—¥9,726,684

60,368—934,762—
1,079,995—¥2,853,566——
206,074—
518,466—¥798,502——
309,491—
768,045—¥1,151,643——
329,016—
693,381—¥1,022,398

Within 1 year

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years$1,032,725,761$29,716,470$6,209,114$651,745$538,816$79,818

92,884,298
11,186,920
5,388,717
2,017,362
12,609,899
42,638,836$1,199,451,793

1,342,487—
27,585,829—
13,244,830—$71,889,616

535,357—
13,743,596—
11,866,291—$32,354,358——
3,018,062—
5,026,942—$8,696,749——
3,367,125—
12,486,214—$16,392,155——
2,718,691—
5,248,386—$8,046,895

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total
As of March 31, 2017
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Due to Trust Accounts
Total*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥44,000 million ($392,157 thousand) and ¥779,000 million ($6,942,959

thousand), and ¥64,000 million and ¥334,000 million as of March 31, 2017 and 2016, respectively.

208

Financial Instruments

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

41. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”
Millions of yen

As of March 31, 2017

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥3,815,674¥3,846,718¥31,043¥3,083,991
3,059,975
24,015¥3,121,303
3,097,144
24,159¥37,312
37,168144¥731,682—
731,682¥725,414—
725,414¥(6,268)—(6,268)Millions of yen

As of March 31, 2016

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

Consolidated
Balance
Sheet Amount

Fair value

Difference¥4,817,574¥4,873,209¥55,634¥4,402,821
3,760,032
642,788¥4,463,834
3,816,652
647,182¥61,01256,6194,393¥414,753—
414,753¥409,375—
409,375¥(5,378)—(5,378)

Thousands of U.S. dollars

As of March 31, 2017

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Foreign Bonds

209

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Fair value

Difference$34,007,790$34,284,475$276,685$27,486,554
27,272,510
214,044$27,819,108
27,603,779
215,329$332,554
331,269
1,285$6,521,236—
6,521,236$6,465,367—
6,465,367$(55,869)—(55,869)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Millions of yen

As of March 31, 2017

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥28,480,731¥26,661,507¥1,819,224¥15,314,224
3,363,211
8,408,911
6,499,349
225,771—
1,683,790
3,542,100
2,672,850
84,802784,447¥13,210,435
1,464,923
8,353,050
6,474,096
220,930—
1,658,023
3,392,462
2,659,805
83,047649,608¥2,103,788
1,898,288
55,86125,253
4,840—
25,767
149,638
13,044
1,754
134,838¥13,166,507
178,834
4,836,243
3,764,979
58,70099
1,012,463
8,151,429
6,282,585
152,978
1,715,864¥13,451,071
222,664
4,870,924
3,781,517
58,93299
1,030,373
8,357,482
6,439,935
153,371
1,764,175¥(284,563)(43,830)(34,680)(16,537)(232)—(17,910)(206,053)(157,349)(393)(48,310)¥3,286¥3,286¥—210

Fair Value of Securities and Money Held in Trust2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

As of March 31, 2016

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

211

Fair Value of Securities and Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference¥34,675,695¥32,793,827¥1,881,867*2¥28,764,163
3,119,477
18,155,225
15,649,388
237,247—
2,268,589
7,489,460
6,775,953
143,593569,913¥26,704,510
1,437,513
18,007,215
15,553,141
231,149—
2,222,924
7,259,780
6,708,016
139,690412,074¥2,059,653
1,681,963
148,010
96,247
6,097—
45,665
229,679
67,936
3,903
157,839¥5,911,531
338,149
719,259
116,4843,433
99599,241
4,854,122
2,943,644
205,326
1,705,151¥6,089,317
409,668
730,762
116,890
3,436
99
610,334
4,948,886
2,970,512
205,917
1,772,456¥(177,785)(71,518)(11,502)
(406)
(3)
—
(11,093)(94,764)(26,867)(591)(67,305)¥2,578¥2,578¥—

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Thousands of U.S. dollars

As of March 31, 2017

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Consolidated
Balance
Sheet Amount

Acquisition Cost

Difference$253,838,965$237,624,843$16,214,122$136,490,411
29,975,146
74,945,738
57,926,468
2,012,226—
15,007,044
31,569,527
23,822,199
755,819
6,991,509$117,740,070
13,056,355
74,447,863
57,701,391
1,969,081—
14,777,391
30,235,852
23,705,935
740,177
5,789,740$18,750,341
16,918,791
497,875
225,077
43,145—
229,653
1,333,675
116,264
15,642
1,201,769$117,348,554
1,593,892
43,103,778
33,555,971
523,177891
9,023,739
72,650,884
55,994,527
1,363,444
15,292,913$119,884,773
1,984,535
43,412,871
33,703,362
525,250891
9,183,368
74,487,367
57,396,932
1,366,949
15,723,486$(2,536,219)(390,643)(309,093)(147,391)(2,073)—(159,629)(1,836,483)(1,402,405)(3,505)(430,573)$29,290$29,290$—*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.

The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains of ¥34,372 million ($306,349 thousand) and ¥26,715 million which were recognized in the statements
of income for the fiscal years ended March 31, 2017 and 2016, respectively, by applying the fair-value hedge method.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Millions of yen
Unrealized
gains (losses)

Unrealized
gains (losses)

Thousands of U.S. dollars
2017
Unrealized
gains (losses)¥(11,574)¥640$(103,158)
Thousands of U.S. dollars
2017
Unrealized
Fair value gains (losses)

2017
As of March 31,

Trading Securities

2016

Millions of yen
2017

2016

As of March 31,

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)

Money Held in Trust for
Investment¥244,297¥787¥173,060¥25$2,177,339$7,021* Fair values of trading securities as of March 31, 2017 and 2016 are described in “40. Financial Instruments.”

212

Fair Value of Securities and Money Held in Trust2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2017

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥ 402,281
29,061,379
28,478,921¥214,078
64,89961,450¥ 3,879
9,713
9,297

35,032

2

547,425
12,416,967¥41,880,628

3,447
164,900¥443,878$

3,585,397
259,014,078
253,822,829$1,908,008
578,428
547,684$ 34,576
86,571
82,86616

312,232

20

151

398
67,316¥80,908

4,879,017
110,668,156$373,267,631

30,724
1,469,698$3,956,134

3,554
599,966$721,113

Millions of yen
Total amount Total amountof losses
Proceedsof gains
on salesfrom sales
on sales

For the Fiscal Year ended March 31,
2016

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥ 256,702
17,668,992
17,053,780¥140,410
59,79555,269¥1,906
1,284
1,088

53,526040561,685
18,236,320¥36,162,015

4,526
227,595¥427,802

155
83,388¥86,578

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2017 and 2016 are as follows:

As of March 31,

Difference between Acquisition Cost and Fair Value*1
Other Securities*2
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Non-controlling Interests
Amount Corresponding to Net Unrealized Gains (Losses) on
Other Securities Owned by Affiliated Companies, which is
attributable to MHFGNet Unrealized Gains (Losses) on Other Securities

2016

Thousands of
U.S. dollars
2017¥1,784,855
1,784,855(470,704)
1,314,150
29,657¥1,855,281
1,855,281(508,389)
1,346,892
56,046$15,907,804
15,907,804(4,195,231)
11,712,573
264,331

5,492

5,193

48,953¥1,289,985¥1,296,039$11,497,195

Millions of yen
2017*1 The difference between acquisition cost and fair value excludes ¥(34,372) million ($(306,349) thousand) and ¥(26,715) million which were recognized in thestatements of income for fiscal years ended March 31, 2017 and 2016, respectively, by applying the fair-value hedge method.
*2 Other Securities includes translation differences regarding securities which do not have readily determinable fair value.

213

Fair Value of Securities and Money Held in Trust2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

42. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2017 and 2016 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Osaka Exchange, the Tokyo Financial
Exchange, the New York Mercantile Exchange and others. Fair values of over-the-counter contracts and intercompany or internal transactions are based on the discounted value of future cash flows, option pricing models andothers.

(1) Derivative Transactions not Qualifying for Hedge Accounting
Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.
(a) Interest Rate-Related Transactions

As of March 31, 2017

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

Contract valueOver one year
Total

Fair value

Millions of yen
Unrealized
gains (losses)¥9,407,885
9,337,119¥3,325,791
3,323,117¥(10,782)
9,161¥(10,782)
9,161

320,424
885,81253,662
99,250

(478)
1,254

38
(217)

16,705,098
14,123,480

287,114276,538(4,529)(1,088)(4,529)(1,088)403,042,305
394,333,968
80,075,291
702,877

307,787,439
304,717,370
61,293,377
579,466

5,642,796(5,583,337)
35,82914,6055,642,796(5,583,337)
35,82914,605

8,117,121
5,642,995

5,719,369
3,661,695(104,505)
4,344(104,505)
4,344

4,430,985
9,442,652
707/

4,144,609
8,278,293
707
/

(906)
33,285
0¥35,649(906)
33,285
0¥34,694214

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

215

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥15,846,181
15,329,146¥5,404,223
5,440,259¥(101,255)
93,252¥(101,255)
93,252

266,618
659,242

35,363
140,726

(684)
636

221
(413)

16,516,064
8,747,790

2,486,927—(7,427)321(7,427)321

450,204,501
445,186,117
77,852,071
769,835

348,348,352
338,980,895
57,764,275
740,715

10,989,099(10,832,435)
40,572
22,623

10,989,099(10,832,435)
40,572
22,6239,510,832
6,157,532

6,160,305
4,019,060(157,337)
62,094(157,337)
62,094

4,188,380
11,761,887—/

4,012,121
10,348,763—/

77,460(209,539)—¥(22,617)

77,460(209,539)—¥(22,760)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2017

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$83,849,247
83,218,534$29,641,634
29,617,800$(96,099)
81,651$(96,099)
81,651

2,855,830
7,894,940

478,277884,588(4,265)
11,178346(1,942)

148,886,794
125,877,727

2,558,954
2,464,692(40,369)(9,703)(40,369)(9,703)3,592,177,409
3,514,562,998
713,683,528
6,264,505

2,743,203,560
2,715,841,089
546,286,790
5,164,585

50,292,306(49,762,369)
319,339
130,176

50,292,306(49,762,369)
319,339
130,176

72,345,111
50,294,073

50,974,773
32,635,434(931,421)
38,722(931,421)
38,72239,491,849
84,159,110
6,305/

36,939,477
73,781,579
6,305/(8,077)
296,6595$317,733(8,077)
296,6595$309,224

216

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Currency-Related Transactions

As of March 31, 2017

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

As of March 31, 2016

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

217

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥18,88175,501¥352
51,302¥——¥——45,250,084

30,758,244

54,48999,071

74,925,435
37,970,407

3,645,808
1,352,535(92,135)
203,068(92,135)
203,068

2,842,595
2,610,743

1,182,247
1,034,441(89,735)
67,939(9,821)(12,408)

3,441,048

2,403,067(228,425)

6,386

160,189/—/(2,328)¥(87,128)(2,328)¥191,831

Fair value

Millions of yen
Unrealized
gains (losses)

Contract value
Total
Over one year

¥20,867
73,227¥120
36,677

¥(61)
41

¥(61)
41

42,725,365

27,770,539

81,081

67,031

61,814,420
26,644,388

3,398,506
1,077,489

516,292(360,548)

516,292(360,548)

3,159,248
2,857,596

1,138,887
938,677(148,426)
100,894(47,789)(2,122)

4,031,159

3,332,541(183,406)(17,723)

149,337/—/869¥6,736869¥155,987

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2017

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
BoughtTotal

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$168,284
672,921$3,139457,239

$—
—

$—
—

403,298,435

274,137,651

485,650

882,992

667,784,633
338,417,177

32,493,838
12,054,682(821,173)
1,809,876(821,173)
1,809,876

25,335,079
23,268,658

10,536,966
9,219,621(799,782)
605,522(87,539)(110,596)

30,668,878

21,417,713(2,035,879)

56,922

1,427,713/—/(20,756)$(776,542)(20,756)$1,709,726

Fair value

Millions of yen
Unrealized
gains (losses)(c) Stock-Related Transactions

As of March 31, 2017

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

¥701,220
143,890¥14,450—¥2,230(673)¥2,230(673)

1,033,746
1,018,815

178,675
101,900(125,078)
27,430(5,077)
10

191,842

178,713

11,513

11,513687,884
231,697

587,391
177,712(83,546)
77,950(77,815)
67,701—
414,495/—
377,583/—
24,548¥(65,623)—
24,548¥22,438

218

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2016

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

As of March 31, 2017

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
Sold
BoughtTotal

219

Derivatives Information

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥339,684
34,398¥19,677—¥(133)(206)¥(133)(206)

796,933
743,949

238,770
153,025(56,915)
44,429(6,219)6,289

157,043

128,828

28,06528,065605,923
245,280

547,166
208,203(76,011)71,052(65,717)
59,4192,061
329,081/—
312,695/(87)
13,337¥23,530(87)
13,337¥34,745

Contract value
Total
Over one year

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$6,249,741
1,282,443$128,790—$19,881(6,000)$19,881(6,000)9,213,428
9,080,354

1,592,469
908,199(1,114,781)
244,483(45,255)90

1,709,827

1,592,816

102,618

102,618

6,130,879
2,065,039

5,235,214
1,583,894(744,623)
694,745(693,544)
603,400—
3,694,252/—
3,365,269/—
218,794$(584,883)—
218,794$199,9842017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(d) Bond-Related Transactions
Millions of yen
2017

2016

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Contract value
Fair
Unrealized
value gains (losses)

Total

Over
one year

Total

Over
one year¥584,499
594,999¥——¥(4,497)
2,508

543,534
143,612——745,840
745,840/

420,735
420,735/

Unrealized
Fairvalue gains (losses)¥(4,497)
2,508¥559,493
661,309¥——¥(2,364)
3,295¥(2,364)
3,295

(86)
150

16
1

87,526
235,566

—
—

(100)
327

9
(130)

(40,317)
40,136¥(2,105)(38,567)
38,777¥(1,759)

451,639451,639/

338,264
338,264/(23,808)
23,737¥1,086(23,391)
23,314¥732

Thousands of U.S. dollars
2017
Contract value
As of March 31,

Total

Listed:Futures:Sold$5,209,441
Bought5,303,026
Futures Options:Sold4,844,333
Bought1,279,967
Over-the-Counter:
Options:
Sold
6,647,419
Bought6,647,419
Total
/

Over
One year

Fair
Unrealized
value gains (losses)$——$(40,082)
22,361$(40,082)
22,361

—
—

(769)
1,346

151
13

3,749,867
3,749,867/(359,338)
357,719$(18,763)(343,743)
345,614$(15,686)

220

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(e) Commodity-Related Transactions
Millions of yen
2017

2016

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
BoughtTotal

Contract value

Total

Over
one year

Fair
Unrealized
value gains (losses)¥22,236
32,199¥7,206
13,568

¥358
(548)

5,296

—

158,283
141,703/63,80149,791
/

Total

Over
one year

¥358
(548)

¥2,301
3,890

¥714
1,544

¥(37)
18

¥(37)
18

1

1

230

—

0

0

3,136
(949)
¥1,9973,136(949)¥1,997

162,916
157,433/

96,04583,472/

30,467(26,324)¥4,12430,467(26,324)¥4,124

Thousands of U.S. dollars
2017
Contract value
As of March 31,

Listed:Futures:
Sold
BoughtOver-the-Counter:
Swaps
Options:
Sold
BoughtTotal

Fair
Unrealized
value gains (losses)

Total

Over
one year$198,185
286,986$64,227
120,930$3,197(4,888)$3,197(4,888)47,210—991,410,727
1,262,954/

568,639443,777/

27,951(8,464)$17,805

27,951(8,464)$17,805

Note: Commodities include oil, copper, aluminum and others.

221

Derivatives Information

Unrealized
Fairvalue gains (losses)

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(f) Credit Derivative Transactions

As of March 31, 2017

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2016

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

As of March 31, 2017

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

Contract value
Total
Over one year

¥1,845,011
1,995,013/¥1,337,735
1,435,409/

Contract value
Total
Over one year

¥2,366,223
2,591,862/¥1,828,065
2,006,634/

Contract value
Total
Over one year

$16,443,952
17,780,867/$11,922,779
12,793,310/

Fair value

Millions of yen
Unrealized
gains (losses)¥22,061(24,813)¥(2,751)¥22,061(24,813)¥(2,751)

Fair value

Millions of yen
Unrealized
gains (losses)¥15,125(8,319)¥6,805¥15,125(8,319)¥6,805

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)$196,624(221,150)$(24,526)$196,624(221,150)$(24,526)

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

222

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions
Millions of yen
As of March 31, 2017

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersContract value
Total
Over one year

Fair value¥25,079,445
6,850,334¥22,542,261
5,939,596¥93,716(23,638)

439,177
591

437,488
92

(472)
(105)

—
66,882/—62,314/

Other securities and others

Loans and others
Note 2¥69,499
Millions of yen

As of March 31, 2016

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

223

Derivatives Information

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersContract valueOver one year
Total

Fair value¥27,546,603
8,262,649¥24,527,041
7,771,614¥477,925(162,603)

60,383
1,056

23,032
515

222
(143)

10,00060,890/—56,087/

Other securities and others

Loans, borrowings andothers

Note 2¥315,400

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

As of March 31, 2017

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Fair Value Hedge Method :Swaps:
Receive Float / Pay Fixed
Receive Float / Pay Float
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds
and notes, borrowings andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$223,524,467
61,054,671$200,911,425
52,937,581$835,259(210,686)

3,914,240
5,276

3,899,187
824(4,211)(938)—
596,096/—555,391/

Other securities and others

Loans and others
Note 2$619,424

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24,
February 13, 2002).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “40.
Financial Instruments.”

224

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(b) Currency-Related Transactions
Millions of yen
As of March 31, 2017

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersFair value¥7,179,955¥2,939,738¥235,186

276,436

—

2,273

—
/

—
/

—
¥237,460—

Millions of yen
As of March 31, 2016

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

As of March 31, 2017

Primary Method :Swaps
Forwards:
Sold
Allocation Method :Forwards:
Sold
Total

Contract value
Total
Over one year

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersShort-term bonds

Fair value¥8,181,167¥3,746,111¥144,898

270,432

—

3,189

2,046
/

—
/

Note 2.

¥148,088

Thousands of U.S. dollars
Contract valueOver one year
Total
Fair value

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothers$63,992,477$26,200,881$2,096,135

2,463,786—

20,266—/—/—$2,116,401—

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.
25, July 29, 2002).
2. Forward Exchange Contracts qualifying for the allocation method are treated as a unit of short-term bonds,
hedged items.

225

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(c) Stock-Related Transactions
Millions of yen
As of March 31, 2017

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

Primary
hedged items

Contract value
Total
Over one year

Fair value

Other securities¥154,072¥40,175¥(4,608)

—
—
/

—
—
/

—
—
¥(4,608)
Millions of yen

As of March 31, 2016

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2017

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

Primary
hedged items

Contract valueOver one year
Total

Fair value

Other securities

Primary
hedged items¥181,617¥132,309¥18,172

117
179
/

—
—
/

0
(1)
¥18,170

Thousands of U.S. dollars
Contract valueOver one year
Total
Fair value

Other securities$1,373,197$358,072$(41,076)

—
—
/

—
—
/

—
—
$(41,076)

226

Derivatives Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

43. Segment Information
Segment Information by Management Approach

1. Summary of Reportable Segment
MHFG has introduced an in-house company system based on the group’s diverse customer segments as of April, 2016.
The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of
MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial
services that closely match customer needs.
Specifically, the company system is classified into the following five in-house companies, each based on a customer
segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company,
the Global Markets Company, and the Asset Management Company. These customer segments are regarded as operating
segments.
In line with the aforementioned system, the reportable segments have been changed from those based on the relevant
principal consolidated subsidiaries to the five in-house companies. The services that each in-house company is in charge ofare as follows:
Retail & Business Banking Company:
This company provides financial services for individual customers, small and medium-sized enterprises and middle
market firms in Japan
Corporate & Institutional Company:
This company provides financial services for large corporations, financial institutions and public corporations in Japan
Global Corporate Company:
This company provides financial services for Japanese overseas affiliated corporate customers and non-Japanese
corporate customers, etc.
Global Markets Company:
This company invests in financial products with market risk, such as interest rate risk, equity risk, and credit risk
Asset Management Company:
This company develops financial products and provides financial services that match the asset management needs of
its wide range of customers from individuals to institutional investors
The reportable segment information, set forth below, is derived from the internal management reporting systems used bymanagement to measure the performance of the Group’s operating segments.
Management measures the performance of each of the operating segments in accordance with internal managerial
accounting rules and practices.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts), Net
Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans), and the Amount of Assets by Reportable
Segment
The following information of reportable segment is based on internal management reporting.
Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciaryincome, Fee and commission income, Trading income, and Other operating income.
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) generalreserve for losses on loans) is the amount of which General and administrative expenses (excluding non-recurring
expenses) and Others (Equity in income from investments in affiliates and certain other consolidation adjustments) are
deducted from Gross profits (excluding the amounts of credit costs of trust accounts).
Asset information by segment is not prepared on the grounds that management does not use asset information of eachsegment for the purpose of asset allocation or performance evaluation.
Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments is basedon the current market price.

227

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

3. Gross Profits (excluding the amounts of credit costs of trust accounts) and Net Business Profits or
Losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2017

Gross profits:(excluding theamounts of credit
costs of trust¥
accounts)
General andadministrative
expenses(excluding NonRecurring Losses)
OthersNet businessprofits
or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans)¥

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

646,100 ¥445,100 ¥386,500 ¥539,400 ¥49,600 ¥26,040 ¥2,092,740

678,300—

186,700—

237,800—

200,900—

29,300—87,492(8,831)

1,420,492(8,831)(32,200) ¥258,400 ¥148,700 ¥338,500 ¥20,300 ¥(70,283) ¥663,416

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2016

Gross profits:(excluding theamounts of credit
costs of trust¥
accounts)
General andadministrative
expenses(excluding NonRecurring Losses)
OthersNet businessprofits
or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans)¥

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others(Note 2)

Total

676,400 ¥434,900 ¥403,800 ¥577,700 ¥52,100 ¥76,715 ¥2,221,615

661,200—

183,200—

232,700—

178,900—

30,100—58,860(23,800)

1,344,960(23,800)

15,200 ¥251,700 ¥171,100 ¥398,800 ¥22,000 ¥(5,945) ¥852,854

228

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31,2017

Retail &Business
BankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

Gross profits:(excluding theamounts of credit
costs of trust
accounts)$ 5,758,467 $ 3,967,023 $ 3,444,741 $ 4,807,487 $General andadministrative
expenses(excluding NonRecurring Losses)
6,045,455
1,663,993
2,119,429
1,790,553
Others————Net businessprofits
or losses(excluding theamounts of credit
costs of trust
accounts, before
reversal of(provision for)general reserve
for losses onloans)$ (286,988) $ 2,303,030 $ 1,325,312 $ 3,016,934 $AssetManagement
Company

Others(Note 2)

Total

442,068 $

232,086 $ 18,651,872

261,141—

779,787(78,715)

12,660,358(78,715)

180,927 $(626,416) $5,912,799

Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general
corporations.
2.“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3.Following the introduction of an in-house company system based on customer segments in April, 2016, reclassification was madeon the above table for the fiscal year ended March 31, 2016 to reflect the relevant change.

229

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net businessprofits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve forlosses on loans) derived from internal management reporting by reportable segment are different from the amounts
recorded in Consolidated Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) of Segment Information and
Ordinary Profits recorded in the Consolidated Statement of Income
Millions of yen
2017

2016

Thousands of
U.S. dollars
2017

Gross Profits(excluding the amounts of credit costs of trust accounts)¥
2,092,740 ¥
2,221,615 $
18,651,872
Other Ordinary Income
379,228
344,674
3,379,929
General and Administrative Expenses(1,467,221)(1,349,593)(13,076,841)
Other Ordinary Expenses(267,233)(219,166)(2,381,761)
Ordinary Profits recorded in Consolidated Statement of Income ¥737,512 ¥997,529 $6,573,199
Note: Ordinary profits represents Total Income excluding certain special income less Total Expenses excluding certain
special expenses.
(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) of Segment Information and Income before Income Taxes
Recorded in Consolidated Statement of Income
Millions of yen
2017

Net Business Profits(excluding the amounts of credit costs of trust accounts, before
reversal of (provision for) general reserve for losses on loans)¥
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loansand others
Net Gains (Losses) Related to Stocks
Net Extraordinary Gains (Losses)
OthersIncome before Income Taxes Recorded in Consolidated¥
Statement of Income

2016

Thousands of
U.S. dollars
2017663,416 ¥—(46,729)852,854 $—(4,632)

5,912,799—(416,483)(80,201)(47,745)(714,811)

32,662
242,145
46,680(73,779)

17,297
205,678
10,722(25,923)

291,110
2,158,159
416,044(657,575)

1,008,252 $

6,989,243

784,193 ¥230

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Related Information(a) Information about Geographic Areas(i) Ordinary income
Millions of yen
2017

Ordinary Income

Japan

¥

2,292,950 ¥Americas430,329 ¥EuropeAsia/Oceania
excluding Japan

181,277 ¥

388,342 ¥Total

3,292,900
Millions of yen

2016

Ordinary Income

Japan

¥

2017

Ordinary Income

2,406,320 ¥

Japan

$

20,436,284 $Americas322,385 ¥Americas3,835,374 $EuropeAsia/Oceania
excluding Japan

149,234 ¥Europe337,332 ¥Total

3,215,274

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total

1,615,664 $3,461,166 $

29,348,488

Notes: 1.Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2017 and 2016 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

231

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2017

Retail & BusinessBanking Company

Impairment Loss¥

— ¥Corporate &Institutional
Company

Global Corporate
Company— ¥Global Markets
Company

— ¥

— ¥

Asset
Management
Company— ¥Others6,651 ¥

Total

6,651

Millions of yen
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2016

Retail & BusinessBanking Company

Impairment Loss¥

— ¥Corporate &Institutional
Company

Global Corporate
Company— ¥Global Markets
Company

— ¥

— ¥

Asset
Management
Company— ¥Others4,412 ¥

Total

4,412

Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year
ended March 31, 2017

Retail & BusinessBanking Company

Impairment Loss$

— $Corporate &Institutional
Company

Global Corporate
Company— $Global Markets
Company

— $

— $

Asset
Management
Company— $Others59,286 $Total

59,286

232

Segment Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2017

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

— ¥

— ¥

— ¥

2,816 ¥

2,816

¥

— ¥

— ¥

— ¥

— ¥

— ¥

74,772 ¥

74,772Millions of yen
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2016

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

¥

— ¥

— ¥

— ¥

— ¥

— ¥

830 ¥

830

¥

— ¥

— ¥

— ¥

— ¥

— ¥

23,440 ¥23,440Thousands of U.S. dollars
MHFG (Consolidated)
For the Fiscal Year ended
March 31, 2017

Amortization of Goodwill
Unamortized Balance ofGoodwill

233

Segment Information

Retail & BusinessBankingCompany

Corporate &Institutional
Company

Global Corporate Global Markets
Company
Company

AssetManagement
Company

Others

Total

$

— $

— $

— $

— $

— $

25,105 $25,105

$

— $

— $

— $

— $

— $

666,422 $

666,422

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
For the fiscal years ended March 31, 2017 and 2016
・There is no applicable information.

44. Related Party
For the fiscal years ended March 31, 2017 and 2016
・There are no material additions to the current scope subject to disclosure.

234

Segment Information、Related Party

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

45. Matters Related to Combination and Others
DIAM Co., Ltd. (“DIAM”), an affiliate under the equity method, and Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho
Asset Management Co., Ltd. (“MHAM”) and Shinko Asset Management Co., Ltd. (“Shinko Asset Management”), each aconsolidated subsidiary of MHFG (collectively, the “Integrating Companies”), entered into an integration agreement, after
obtaining approval by resolutions adopted by their respective boards of directors on July 13, 2016. The integration became
effective on October 1, 2016.
The integration was implemented through the following steps: (i) a merger between MHAM as surviving company andShinko Asset Management as absorbed company; (ii) a company split between MHTB and MHAM (after the merger in (i)above) as successor company whereby rights and obligations attributed to the Asset Management Division of MHTB weretransferred to MHAM; and (iii) a merger between DIAM as surviving company and MHAM as absorbed company.
The following is an overview of the merger between DIAM as the surviving company and MHAM as the absorbed
company.
(1) Name of the acquired company, business type, date of the combination, legal form of the combination, name of thecompany after the combination, shareholding ratio based on economic interests (shareholding ratio based on voting
rights), grounds for determination of the acquiring company, and major reasons for the combinationa.

Name of the acquiredcompany

DIAM Co., Ltd.

b.

Business type

Investment Management, and Investment Advisory and Agency Businessc.

Date of the combination

October 1, 2016d.

Legal form of the combination A merger between DIAM as surviving company and MHAM as absorbed
companye.

Name of the company after
the combinationf.

Shareholding ratio based on Shareholding ratio based on economic interests held
economic interests
before the combination(Shareholding ratio based on
Shareholding ratio based on economic interests
voting rights)
obtained on the combination date

50.00%

Shareholding ratio based on economic interests after
acquisition

70.00%

Asset Management One Co., Ltd.

20.00%The shareholding ratio based on voting rights has changed from 50.00%
to 51.00%.
g.

Grounds for determination of As MHFG, a shareholder of MHAM, which is the legal absorbed company,
the acquiring company
holds over half of the new company’s voting rights as a result of themerger, MHAM is the acquiring company and DIAM is the acquiredcompany under the accounting standards for business combination.

235

Matters Related to Combination and Others

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

h.

Major reasons for the
combination

Based on the strong commitment of MHFG and Dai-ichi Life Holdings, Inc.
(“Dai-ichi Life”) to strengthen and develop their respective asset
management businesses, the New Company will aim to achievesignificant development as a global asset management company,
providing its customers with solutions of the highest standards by
combining the asset management-related knowledge and experience
accumulated and developed by each Integrating Company over many
years, and taking full advantage of collaboration with both the MHFG
Group and the Dai-ichi Life group. In order to establish a highly
independent and transparent management framework, the New
Company’s independent outside directors (Audit & Supervisory
Committee members) will include professionals with a high level ofexpertise in the areas of asset management, legal affairs and accounting.
In addition, the New Company will fulfill its fiduciary duties as aprofessional asset management firm and provide services and productsthat truly benefit its customers. Through these efforts, the New Company
aims to become the most trusted and valued asset management company—meeting the needs of pension funds and corporate customers in termsof diversification and sophistication of their investments, as well as
encouraging a shift “from saving to investment” in Japan throughproviding individual customers with high-quality products and services.

(2) Period of the acquired company’s results included in the quarterly consolidated financial statements
From October 1, 2016 to March 31, 2017(3) Acquisition cost and its breakdown of the acquired company
Consideration for acquisition

Common stock of MHAM

Acquisition cost:¥100,948 million ($899,721 thousand)¥100,948 million ($899,721 thousand)(4) Merger ratio, calculation method, number of new shares to be issued, and gains and losses on the step acquisitiona.

Merger ratio
Company Name

DIAM Co., Ltd.
(surviving company)

Mizuho Asset Management Co., Ltd.
(absorbed company)

Merger Ratio

1

0.0154The merger ratio has been calculated after combining shares of common stock and classified stock.
b.

Calculation method

In calculating the merger ratio, MHFG and Dai-ichi Life appointed athird-party for valuations respectively. Both companies made thefinal 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 andother factors in a comprehensive manner, while using the thirdparty calculations as reference.

236

Matters Related to Combination and Others

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statementsc.

d.

Number of new shares to be issued Common stock

490 sharesClassified stock

15,510 shares

Gains and losses on the step
acquisition¥56,226 million ($501,125 thousand)(included in Extraordinary Gains)(5) Amount, cause, amortization method and amortization period of Goodwilla.

Amount of Goodwill incurred¥53,357 million ($475,556 thousand)

b.

Cause

Difference between the amount corresponding to MHFG’s equity
position in the acquired company and the acquisition costc.

Amortization method andamortization period of Goodwill

Amortization over a period of 20 years under the straight-line
method(6) Amount and breakdown of Assets received and Liabilities undertaken on the combination datea.

b.

AssetsLiabilities

Total Assets¥40,850 million ($364,088 thousand)Cash and Due from Banks¥13,704 million ($122,144 thousand)Money Held in Trust¥11,792 million ($105,101 thousand)Total Liabilities
Other Liabilities¥9,655 million ($ 86,054 thousand)¥7,528 million ($ 67,098 thousand)

The amount allocated to Customer-Related Assets (see (7) b. below) and the related amount of Deferred Tax Liabilities
have not been included in a. Assets and b. Liabilities, respectively.
(7) Amount allocated to Intangible Fixed Assets other than Goodwill, breakdown by major type,
and weighted-average amortization period in total and by major typea.

Amount allocated to Intangible Fixed Assetsb.

Breakdown by major type
Customer-Related Assetsc.

¥53,030 million ($472,638 thousand)¥53,030 million ($472,638 thousand)

Weighted-average amortization period in total and by major type
Customer-Related Assets

237

Matters Related to Combination and Others

16.9 years

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

46. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2017 and 2016 are calculated based on the following
information:
Yen
As of or for the fiscal years ended March 31,

Net Assets per Share of Common Stock
Profit Attributable to Owners of Parent per Share ofCommon Stock
Diluted Profit Attributable to Owners of Parent per
Share of Common Stock

2017

2016

U.S. dollars
2017¥335.96¥322.46

$2.99

23.86

0.21

26.94

23.78

0.21

26.42

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
As of March 31,

Total Net Assets
Deductions from Total Net Assets
Paid-in Amount of Preferred Stock
Cash Dividends on Preferred Stock
Stock Acquisition Rights
Non-Controlling Interests
Net Assets (year-end) related to Common
StockYear-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
calculated

2017

2016

Thousands of U.S. dollars
2017¥9,273,361
751,093——
1,754
749,339¥9,353,244
1,285,343
98,923989
2,762
1,182,668$82,650,284
6,694,240——
15,633
6,678,607

8,522,268

8,067,900

75,956,044

25,366,315 Thousand shares 25,019,596 Thousand shares/

2. Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Profit Attributable to Owners of Parent
Amount not attributable to Common Stock
Cash Dividends on Preferred Stock
Profit Attributable to Owners of Parent
related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)

2017

2016

Thousands of U.S. dollars
2017¥603,544——¥670,943
2,429
2,429

$5,379,188——

603,544668,513

5,379,188

25,285,898 Thousand shares 24,806,160 Thousand shares/

3. Diluted Profit Attributable to Owners of Parent per Share of Common Stock is based on the following information.
Millions of yen
For the fiscal years ended March 31,

Adjustment to Profit Attributable to Ownersof Parent
Cash Dividends on Preferred Stock
Increased Number of Shares of Common
Stock
Preferred Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Profit Attributable to Owners of
Parent per Share of Common Stock asthey have no Dilutive effects

2017

2016

Thousands of U.S. dollars
2017

¥—
—

¥2,4292,429$——

94,403 Thousand shares
82,993 Thousand shares
11,409 Thousand shares—

580,872 Thousand shares
563,044 Thousand shares
17,828 Thousand shares

—

/
/
/

/

238

Per Share Information

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. In the calculation of Net Assets per Share of Common Stock, MHFG shares outstanding in BBT trust account thatwere recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted fromthe number of issued shares as of March 31, 2017.The number of such Treasury Stock shares deducted during
the period is 9,000 thousand.
In the calculation of Profit Attributable to Owners of Parent per Share of Common Stock and Diluted Profit
Attributable to Owners of Parent per Share of Common Stock, such Treasury Stock shares are included in
Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during
the period. The average number of such Treasury Stock shares deducted during the period is 6,000 thousand.

47. Subsequent Events
There is no applicable information.

239

Per Share Information、Subsequent Events

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Three Subsidiaries[Under Japanese GAAP]

Mizuho Financial Group, Inc.
241

Non-Consolidated Balance Sheet

242

Non-Consolidated Statement of Income

Mizuho Bank, Ltd.
243

Non-Consolidated Balance Sheet

245

Non-Consolidated Statement of Income

Mizuho Trust & Banking Co., Ltd.
246

Non-Consolidated Balance Sheet

248

Non-Consolidated Statement of Income

Mizuho Securities Co., Ltd.
249

Non-Consolidated Balance Sheet

252

Non-Consolidated Statement of Income

240

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries-Index

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2017

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

¥

¥

¥

¥

112,350
20,19092,1599,157,019
205,518
12,705
6,074,554
2,864,240
9,269,369

1,179,516
656,100
500,000
23,416
2,747,329
3,926,845
5,288,113
2,256,275
1,196,258
1,196,167
91
1,839,725
4,350
1,835,375
1,835,375(4,145)52,65552,6551,754
5,342,523
9,269,369

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

241

Non-Consolidated Balance Sheet

¥

¥

¥

¥

Thousands of
U.S. dollars
2017

2016

90,816
16,442
74,374
6,973,394
165,803
8,451
6,022,661
776,478
7,064,211$

1,001,338
179,949
821,389
81,613,365
1,831,719
113,239
54,140,418
25,527,989$ 82,614,703

1,197,207
686,345
500,000
10,862669,794
1,867,002$

5,151,857
2,255,790
1,195,830
1,195,682
147
1,703,049
4,350
1,698,699
1,698,699(2,813)42,58842,5882,762
5,197,208
7,064,211

47,131,139
20,109,405
10,661,841
10,661,028
813
16,396,838
38,77016,358,068
16,358,068(36,945)469,304
469,304
15,63347,616,076$ 82,614,703

10,512,622
5,847,594
4,456,328
208,700
24,486,005
34,998,627

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income
Millions of yen
2017

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

378,084
328,148¥2016

333,500
292,883

Thousands of
U.S. dollars
2017$3,369,737
2,924,671

49,93638,92638,926339,157
44,55856,302
327,41440,616
31,06331,063
302,436
23,587
21,117
304,906

445,066
346,942
346,9423,022,795
397,139501,805
2,918,129

519
217
326,676334
182
304,389

4,631
1,940
2,911,558¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

242

Non-Consolidated Statement of Income2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Receivables under Resale Agreements
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets

243

Non-Consolidated Balance Sheet

2016

Thousands of
U.S. dollars
2017¥30,156,145
266,249
368,351
729,8426,421,352
3,197
37,903,140
70,374,392
1,343,546
6,696,402
836,484
306,867
417,687
23,356
19,346
69,226
636,583
245,168
10,643
380,770469,034
5,297,202(379,190)¥161,122,736$347,086,293
3,860,953
5,313,681
6,489,129
37,744,216
27,965
278,651,542
635,141,161
15,768,386
48,757,944
7,382,915
2,752,436
3,701,378
220,668
161,799546,634
6,725,025
1,995,771
138,0444,591,210
4,295,619
51,311,498(3,900,977)$1,444,655,350

Millions of yen
2017¥38,943,082
433,198
596,194
728,080
4,234,901
3,137
31,264,703
71,262,838
1,769,212
5,470,641
828,363
308,823
415,294
24,75818,153
61,332754,547
223,925
15,488515,133
481,968
5,757,150(437,689)¥162,090,330

2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet—(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2016

Thousands of
U.S. dollars
2017¥117,881,635
775,450
7,604,970¥111,374,133
1,127,524
7,588,922$1,050,638,462
6,911,319
67,780,489

335,575
765,146
3,362,426
9,136,351
729,532
3,726,331
4,453,787
20,902
1,269
298
52
17,57532,720186,153
66,5855,757,150
154,853,914

786,431
777,601
5,198,295
8,697,522
682,188
4,376,773
7,422,691
20,437
1,300
267
800
15,041
39,245302,072
67,991
5,297,202
153,776,443

2,990,866
6,819,491
29,968,150
81,429,156
6,502,071
33,211,509
39,695,072
186,295
11,313
2,657
465
156,646
291,629
1,659,121
593,456
51,311,498
1,380,159,665

5,988,810
1,404,065
2,286,328
655,418
1,630,910
2,298,416
225,810
2,072,606
2,072,606
1,247,605
1,099,468
2,527
145,6097,236,415

5,922,330
1,404,065
2,286,795
655,324
1,631,471
2,231,469
169,829
2,061,640
2,061,640
1,423,961
1,106,333
169,143
148,483
7,346,292

53,376,209
12,513,948
20,377,264
5,841,516
14,535,748
20,484,997
2,012,571
18,472,426
18,472,426
11,119,476
9,799,183
22,525
1,297,768
64,495,685¥162,090,330¥161,122,736$1,444,655,350

Millions of yen
2017

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

244

Non-Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2016

Thousands of
U.S. dollars
2017¥1,204,728
820,861
257,345
470,240
81,202
191,592
287,9222,235,686¥1,207,062
801,996
284,113477,788
96,734
197,715
278,9122,258,212$10,737,329
7,316,057
2,293,634
4,191,090
723,728
1,707,601
2,566,157
19,925,905

484,970
239,159
93,982792
47,643
901,693
251,650
1,780,732

377,013168,237
91,4752,282
44,711
832,319
207,496
1,555,299

4,322,373
2,131,550
837,6317,063
424,629
8,036,485
2,242,875
15,871,056

454,954702,913

4,054,849

129,486(17,098)¥342,566

161,424
51,276¥490,212

1,154,065(152,392)$3,053,176

Millions of yen
2017

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

245

Non-Consolidated Statement of Income2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCash and Due from Banks
Call Loans
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Total Assets

2016

Thousands of
U.S. dollars
2017¥1,665,011
5,520
215,970
13,358
127,305
2,578
1,492,120
3,496,313
3,675
80,64824,632
10,390
11,246100
2,896
24,022
14,7509,271
49,79543,749(5,636)¥7,239,067$15,142,962
62,0001,007,543
81,970806,488
29,29011,168,500
29,646,140
23,139746,920
210,497
94,02390,49812
25,964
298,373
130,926
167,447
438,775
212,899(42,597)$59,832,899

Millions of yen
2017¥1,699,040
6,956
113,046
9,196
90,4873,286
1,253,105
3,326,296
2,596
83,804
23,617
10,54910,153
1
2,913
33,477
14,68918,78749,23023,887(4,779)¥6,713,251

246

Non-Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Variable Compensation
Reserve for Reimbursement of Deposits
Deferred Tax Liabilities
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains (Losses) on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2016

Thousands of
U.S. dollars
2017¥3,715,010
242,493
67,320¥3,409,338
1,162,877
67,602$33,110,615
2,161,260
600,000

310,303
83,683
372,578―
10,0001,272,149
36,173
1,976
413
1,496
9,692
23,887
6,147,179

420,713
121,483
366,955
0
10,0001,019,554
60,074
1,953
401
1,113
12,04343,7496,697,859

2,765,632
745,839
3,320,665―
89,126
11,338,229
322,401
17,6203,683
13,33786,388212,899
54,787,694

467,888
247,369
15,505
15,505205,01327,427
177,585
177,585
98,18396,5291,654
566,071442,965
247,369
15,505
15,505
180,091
23,327
156,763
156,763
98,24197,740501
541,2074,170,128
2,204,721
138,192
138,192
1,827,215
244,455
1,582,760
1,582,760
875,077
860,333
14,744
5,045,205¥6,713,251¥7,239,067$59,832,899

Millions of yen
2017

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

247

Non-Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income

2016

Thousands of
U.S. dollars
2017¥50,075
39,80525,817
12,25958,874
1,180
14,48333,608198,028¥53,324
47,04328,497
16,68353,927
1,347
25,29014,352
195,286$446,309
354,769
230,100
109,262
524,732
10,525129,086
299,537
1,764,958

10,221
1,288
27,5450
5,556
86,723
6,628
136,675

11,284
2,694
25,936―
8,137
79,954
10,370135,684

91,105
11,484
245,5021
49,526
772,933
59,074
1,218,141

61,35259,602546,817

16,787(917)¥45,482

15,9453,215¥40,440

149,624(8,179)$405,372

Millions of yen
2017

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

248

Non-Consolidated Statement of Income2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Receivables - unsettled Trades
Operating Investment Securities
Operating Loans Receivable
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Deferred Tax Assets
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Total Noncurrent Assets
Total Assets

249

Non-Consolidated Balance Sheet

2016

Thousands of
U.S. dollars
2017¥249,691
230,2145,019,291
2,638,609
2,380,682
169,960
21,762
2,790
96,25535,251¥283,049
170,684
5,990,021
3,115,313
2,874,707
27,92319,0103,100
98,95854,181$2,225,416
2,051,823
44,735,222
23,517,019
21,218,203
1,514,803
193,965
24,866
857,888314,184

61,0033,821,571
3,506,714
314,856
191
496,793
28,695―22,459
690
3,193
6,495
26,45615,3024,009(6)
10,215,819

44,776
3,949,642
3,718,958
230,684
107
370,794
11,9371,020
50,711
1,075
2,647
2,520
23,143
8,735
3,112
(16)
11,018,181

543,704
34,060,350
31,254,143
2,806,207
1,707
4,427,746
255,751―
200,177
6,158
28,45957,888
235,798
136,385
35,733(53)
91,050,082

15,08750,195297,330
246,267
11,75915,761
3,815
23,304(3,578)362,614

14,54042,370308,153
241,992
12,21615,0201,394
41,163(3,634)
365,065

134,473447,376
2,650,007
2,194,901
104,809140,473
34,005
207,709(31,890)
3,231,856¥10,578,433¥11,383,246$94,281,938

Millions of yen
20172017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Variation Margin Received
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Lease Obligations
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Variable Compensation
Provision for Bonus Point Redemption
Other Current Liabilities
Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Lease Obligations
Provision for Retirement Benefits
Other Noncurrent Liabilities
Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities
Total Statutory Reserves
Total Liabilities

2016

Thousands of
U.S. dollars
2017¥3,771,283
1,299,676
2,471,607
55,287
7,871
47,415
3,727,318
1,255,986
2,471,331
234,622
184,821
12,844
1,640
716,603111,300
55,323375
230
840
25,243―
13,432855
596
559
8,913,179¥4,445,062
1,642,885
2,802,176
42,278
10,83531,4433,861,722
1,909,797
1,951,925
136,356
154,0134,271―
479,403513,700
55,602
377
1,144
717
26,266
4,400
13,217
790
623
3,293
9,743,240$33,612,155
11,583,572
22,028,583
492,757
70,158422,599
33,220,309
11,194,178
22,026,131
2,091,105
1,647,249
114,482
14,622
6,386,839
991,979
493,076
3,349
2,055
7,487
224,986―
119,723
7,628
5,313
4,985
79,440,099

554,903
233,500
494
19,5361,647
810,081548,766
409,400
857
18,034
1,885
978,944

4,945,661
2,081,105
4,408
174,124
14,6807,219,978

2,291
2,291

2,005
2,005

20,42020,420¥9,725,551¥10,724,190$86,680,497

Millions of yen
2017

250

Non-Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet―(Continued)

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholders’ Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets

2016

Thousands of
U.S. dollars
2017¥125,167¥125,167$1,115,573

285,831
95,817
381,649

285,831
95,817
381,6492,547,517
853,9933,401,510

332,177
332,177
838,993

149,594
149,594
656,4112,960,579
2,960,579
7,477,662

22,719(8,831)
13,887

21,626(18,982)
2,644

202,493(78,714)
123,779

Millions of yen
2017

852,881

659,056

7,601,441¥10,578,433¥11,383,246$94,281,938

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

251

Non-Consolidated Balance Sheet2017/09/06 9:25:08 / 17322938_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Non-Consolidated Statement of Income

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain (loss) on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues

2016

Thousands of
U.S. dollars
2017¥149,114
26,284¥155,617
30,728$1,329,002
234,262

34,84827,693

310,590

25,53962,442
143,956
2,299
45,756341,126

31,39765,798130,230
4,604
29,402319,855

227,624556,526
1,283,036
20,494
407,8113,040,343

Millions of yen
2017Interest Expenses

37,91527,552337,924

Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sales of Investment Securities
Gain on Sales of Shares of Subsidiaries and Affiliates
Indemnity Receipt from the Erroneous Stock Order
Extraordinary loss
Loss on Sales of Noncurrent Assets
Loss on Disposal of Noncurrent Assets
Loss on Sale of Investment Securities
Loss on Impairment of Investment Securities
Loss on Impairment of Investments in Subsidiaries and Affiliates
Loss on liquidation of Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Head Office Transfer Cost
Cost Incurred in Opening of Joint Branches
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes – current
Income Taxes – deferred
Total Income Taxes
Net Income

303,211
239,455
51,51387,96627,23749,355
17,143
2,801
(40)
3,477
63,7557,920
1,487
70,189119,27624
977
118,274
―
2,554
―
194
40
―
―
1,129
6
841
―
55

292,303
231,895
51,176
85,13526,042
47,955
14,929
3,386
(426)
3,695
60,407
8,055
1,357
67,105
13,43648
565―
12,822
2,464
8
254
26
0
146
―
0
843
577
192

2,702,419
2,134,186
459,125
784,014242,762
439,886
152,795
24,970(363)
30,997568,233
70,594
13,254
625,573
1,063,068
217
8,711
1,054,140―
22,765
―
1,736
359
―
―
10,070
58
7,501
―
497

285

416

2,544

186,911
161(13,968)(13,806)¥200,718

78,077
6,915
16,563
23,479¥54,598

1,665,876
1,441(124,498)(123,057)$1,788,933

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥112.20=US$1.00, the foreign exchange rate on March 31, 2017, has been used for translation.

252

Non-Consolidated Statement of Income2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

253

白頁

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

255

Capital Adequacy Ratio Highlights

255

Capital adequacy ratio

257

Risk weighted assets

258

Status of Mizuho Financial Group’s
Consolidated Capital Adequacy

258

Scope of consolidation

260

Composition of capital

275

Risk-based capital

278

Credit risk

294

Methods for credit risk mitigation

296

Counterparty risk in derivatives transactions
and long-settlement transactions

298

Securitization exposure

314

Market risk

315

Operational risk

315

Equity exposure in banking book318

Composition of Leverage Ratio

319

Indicators for assessing Global Systemically
Important Banks (G-SIBs)

321

Status of Sound Management of Liquidity Risk

321

Liquidity Coverage Ratio

323

Status of Major Liquid Assets

323

Status of Major Funding

324

Compensation of directors,
corporate auditors and employees

254

Status of Capital Adequacy

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel Framework, based on the "International Convergence of Capital Measurement and Capital Standards: A
Revised Framework" issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy
information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the "Matters
Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions,etc. pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law(Ministry of Finance Ordinance No. 10 of 1982)" (the FSA Notice No. 7 of 2014, etc.).
With respect to the calculation of capital adequacy ratio, we have applied the international standard and adopted (a) theadvanced internal ratings-based approach as a method to calculate the amount of credit risk weighted assets and (b) theadvanced measurement approach as a method to calculate the amount equivalent to the operational risk.

■ Capital adequacy ratio(1) Summary of capital adequacy ratio
Mizuho Financial Group (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets
Credit risk
Market risk
Operational risk

(Billions of yen)
As of March 31, 2017

As of March 31, 201616.28%

15.41%

13.30%
11.34%¥10,050.9
8,211.5
7,001.6¥61,717.1
56,060.0
2,282.8
3,374.2

12.64%
10.50%¥9,638.6
7,905.0
6,566.4¥62,531.1
57,588.4
1,696.0
3,246.6

As of March 31, 2017

As of March 31, 201616.20%

15.46%

13.34%
11.16%¥9,148.5
7,535.7
6,304.0¥56,461.7
52,656.4
1,334.2
2,471.0

12.75%
10.81%¥8,780.2
7,243.6
6,142.2¥56,771.0
53,581.0
1,027.0
2,162.9

As of March 31, 2017

As of March 31, 201616.53%

15.50%

13.53%
11.20%¥8,938.2
7,316.2
6,057.2¥54,052.6
51,130.0
876.4
2,046.2

12.66%
10.65%¥8,576.3
7,004.0
5,892.2¥55,306.1
52,392.1
1,017.8
1,896.1

Mizuho Bank (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets
Credit risk
Market risk
Operational risk

(Billions of yen)Mizuho Bank (Non-Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets
Credit risk
Market risk
Operational risk

255

Capital adequacy ratio(Billions of yen)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Mizuho Trust & Banking (Consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets
Credit risk
Market risk
Operational risk

(Billions of yen)
As of March 31, 2017

As of March 31, 201619.47%

19.52%

18.73%
18.73%¥484.9466.4
466.4¥2,489.5
2,211.2
16.7
261.4

18.21%
18.21%¥472.1440.4
440.4¥2,418.1
2,141.9
15.1
261.0

As of March 31, 2017

As of March 31, 201619.70%

19.80%

18.98%
18.98%¥492.6474.5
474.5¥2,500.1
2,261.4
14.5
224.0

18.52%
18.52%¥479.5448.4
448.4¥2,421.0
2,192.2
12.0
216.7

Mizuho Trust & Banking (Non-consolidated)
Total capital ratio(International standard)
Tier 1 capital ratio
Common equity Tier 1 capital ratio
Total capital
Tier 1 capital
Common equity Tier 1 capital
Risk weighted assets
Credit risk
Market risk
Operational risk

(Billions of yen)

256

Capital adequacy ratio

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Capital Adequacy Ratio Highlights■ Risk weighted assets(1) Credit risk weighted assets by asset class and ratings segment
Mizuho Financial Group (Consolidated)
As of March 31, 2017
Credit risk
weighted
Risk
EAD
assets
Weight(%)

Internal ratings-based approach ¥189,852.0
Corporate, etc.
164,623.5
Corporate (except specialized
78,222.1
lending)
Ratings A1-B2
55,538.0
Ratings C1-D3
20,306.6
Ratings E1-E2
1,373.3
Ratings E2R-H1
1,004.0
Sovereign80,314.2
Ratings A1-B2
80,165.1
Ratings C1-D3
148.6
Ratings E1-E2
0.3
Ratings E2R-H1
0.0
Bank5,921.5
Ratings A1-B2
5,337.6
Ratings C1-D3
582.4
Ratings E1-E2
0.0
Ratings E2R-H1
1.4
Specialized lending
165.6
Retail12,235.5
Residential mortgage
9,388.0
Qualifying revolving loan
629.2
Other retail
2,218.2
Equities
4,973.3
PD/LGD approach
4,180.1
Market-based approach
793.1
Regarded-method exposure
1,744.0
Securitizations
4,009.5
2,265.9
OthersStandardized approach¥17,523.9
CVA risk
n.a.
Central counterparty-related
n.a.
Total
¥207,375.9¥50,084.2
31,312.3¥26.3819.02¥190,100.2
164,945.4¥50,922.7
32,874.3¥26.7819.93

28,727.3

36.72

77,953.6

29,559.7

37.91

14,486.4
12,002.9
1,885.3
352.5
1,023.3
928.3
94.3
0.6
0.0
1,375.8
1,036.1
339.2
0.0
0.4
185.8
4,541.9
3,096.3
415.6
1,029.9
8,642.9
6,068.0
2,574.9
3,341.4
328.9
1,916.6¥3,508.0¥2,272.3¥195.4¥56,060.0

26.08
59.10
137.27
35.11
1.27
1.15
63.49
164.61
40.50
23.23
19.41
58.25
184.0429.54
112.16
37.12
32.98
66.05
46.42
173.78145.16324.64
191.588.20
84.58¥20.01n.a.
n.a.
¥27.0354,868.1
20,947.9
1,179.1
958.4
79,893.0
79,739.7
152.6
0.6
0.0
6,923.3
6,198.3
718.6
4.4
1.9
175.2
12,942.5
9,855.1
562.9
2,524.5
4,460.7
3,901.2
559.4
1,750.8
3,803.3
2,197.4¥10,840.7
n.a.
n.a.
¥200,940.9

14,961.2
12,694.1
1,575.6
328.7
1,278.0
1,184.1
92.6
1.2
0.0
1,817.2
1,369.0
437.6
9.9
0.5
219.2
4,767.1
3,164.6
362.7
1,239.6
7,347.2
5,524.7
1,822.4
3,887.1
291.1
1,755.6¥3,628.0¥2,823.3¥214.4¥57,588.4

27.26
60.59
133.62
34.29
1.59
1.48
60.72
186.86
62.73
26.24
22.08
60.90
225.5330.21
125.09
36.83
32.11
64.44
49.10
164.70141.61
325.76222.02
7.65
79.89¥33.46n.a.
n.a.
¥28.65

Notes: 1. "Corporate" does not include specialized lending exposure under supervisory slotting criteria.
2. "Specialized lending" is specialized lending exposure under supervisory slotting criteria.
<Analysis>
Risk assets decreased due to changes in the EAD calculation method for derivative transactions.

257

Capital adequacy ratio(Billions of yen)
As of March 31, 2016
Credit risk
weighted
Risk
EAD
assets
Weight(%)

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Scope of consolidation(1) Scope of consolidation for calculating consolidated capital adequacy ratio(a) Difference from the companies included in the scope of consolidation based on consolidation rules for
preparation of consolidated financial statements (the "scope of accounting consolidation")
None as of March 31, 2017 and 2016.
(b) Number of consolidated subsidiaries
Consolidated subsidiaries

As of March 31, 2017

As of March 31, 2016

139

143

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2017:

Name

Country oforganization

Domestic
Mizuho Bank, Ltd. ...........................................Japan
Mizuho Trust & Banking Co., Ltd. ...................Japan
Mizuho Securities Co., Ltd. .............................Japan
Mizuho Research Institute Ltd. .......................Japan
Mizuho Information & Research Institute Inc. . Japan
Asset Management One Co., Ltd. .................. Japan
Trust & Custody Services Bank, Ltd. .............. Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. .................Japan
Mizuho Realty Co., Ltd. .................................. Japan
Mizuho Factors, Limited ..................................Japan
Simplex Investment Advisors Inc. ...................Japan
Defined Contribution Plan Services Co., Ltd. ..Japan
Mizuho-DL Financial Technology Co., Ltd. .....JapanUC Card Co., Ltd. ...........................................Japan
Mizuho Trust Systems Company, Limited. ..... Japan

Mizuho Capital Co., Ltd. ..................................Japan

Main businessBanking
Trust and banking
Securities
Research andconsulting
Information technology
Investment
management
Trust and banking
Consulting
Credit guarantee
Real estate agency
Factoring
Holding company
Pension planrelated business
Application andSophisticationof Financial Technology
Credit card
Subcontracted
calculation services,
software development
Venture capital

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0%
100.0
95.8
98.6

100.0%
100.0
95.8
98.6

91.5
70.0

91.5
51.0

54.0
100.0
100.0
100.0
100.0
100.0
60.0

54.0
100.0
100.0
100.0
100.0
100.0
60.0

60.0

60.0

51.0
50.0

51.0
50.0

50.0

50.0

258

Scope of consolidation

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Name

Country oforganization

Overseas
Mizuho Americas LLC .....................................U.S.A.
Mizuho Bank (China), Ltd. .............................. China
Mizuho International plc ..................................U.K.
Mizuho Securities Asia Limited .......................China
Banco Mizuho do Brasil S.A. .......................... Brazil
Mizuho Securities USA LLC ............................U.S.A.
Mizuho Bank Europe N.V. ...............................Netherlands
Mizuho Trust & Banking (Luxembourg) S.A. ...Luxembourg
Mizuho Bank (USA) ........................................U.S.A.
Mizuho Bank (Switzerland) Ltd ....................... Switzerland
Mizuho Trust & Banking Co. (USA) ................ U.S.A.
Mizuho Capital Markets Corporation ...............U.S.A.
PT. Bank Mizuho Indonesia ............................Indonesia

Main businessHolding company
Banking
Securities and banking
Securities
Banking
Securities
Banking and securities
Trust and banking
Banking
Trust and banking
Trust and banking
Derivatives
Banking

Proportion ofownership
interest (%)

Proportion of
votinginterest (%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

(c) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable
None as of March 31, 2017 and 2016.
(d) Companies that are in the bank holding company’s corporate group but not included in the scope ofaccounting consolidation and companies that are not in the bank holding company’s corporate group but
included in the scope of accounting consolidation
None as of March 31, 2017 and 2016.
(e) Restrictions on transfer of funds or capital within the bank holding company’s corporate group
None as of March 31, 2017 and 2016.
(f) Names of any other financial institutions, etc., classified as subsidiaries or other members of the bank holding
company that are deficient in regulatory capital
None as of March 31, 2017 and 2016.

259

Scope of consolidation

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Composition of capital(2) Composition of capital, etc.
(a) Composition of capital disclosure (International standard)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
Common equity Tier 1 capital: instruments and reserves (1)Directly issued qualifying common share
1a+2-1c-26 capital plus related stock surplus and retained
earnings
1aof which: capital and stock surplus¥6,905,510¥/¥6,365,502¥/

3,390,691/

3,267,031/

2

of which: retained earnings

3,614,841/

3,196,908/

1cof which: treasury stock (-)

4,849

/

3,609

/

26

of which: national specific regulatory
adjustments (earnings to be distributed) (-)

95,173/

94,827

/

-

/

-

/

1,754

/

2,762

/

1,216,780

304,195

964,710643,140

14,537/

14,749/22,881/

32,465/22,881/

32,465/8,161,464/

7,380,191/

619,806

154,951

361,571241,047

79,69519,92335,452

23,635

540,111135,027

326,118

217,41236,601

9,150

6,614

4,409

¥8,137¥2,034¥99,158¥66,105of which: other than above
1b
3
5

6

Subscription rights to common shares
Accumulated other comprehensive income andother disclosed reserves
Common share capital issued by subsidiaries
and held by third parties (amount allowed ingroup CET1)
Total of items included in common equity Tier
1 capital: instruments and reserves subject tophase-out arrangementsof which: amount allowed in group CET1
capital subject to phase-out arrangementson common share capital issued bysubsidiaries and held by third parties
Common equity Tier 1 capital:(A)
instruments and reserves

Common equity Tier 1 capital: regulatory adjustments (2)
8+9
8
9

10

11

Total intangible assets (net of related tax
liability, excluding those relating to mortgage
servicing rights)
of which: goodwill (net of related tax liability,
including those equivalent)of which: other intangibles other than
goodwill and mortgage servicing rights (netof related tax liability)
Deferred tax assets that rely on future
profitability excluding those arising from
temporary differences (net of related tax
liability)
Deferred gains or losses on derivatives underhedge accounting

260

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
12
13

Shortfall of eligible provisions to expected
lossesSecuritization gain on sale

14

Gains and losses due to changes in own credit
risk on fair valued liabilities

15

Net defined benefit asset

16

Investments in own shares (excluding thosereported in the net assets section)

17

18

19+20+21
19
20
21
22
23
24
25

27
28

Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Amount exceeding the 15% threshold on
specified itemsof which: significant investments in thecommon stock of financialsof which: mortgage servicing rightsof which: deferred tax assets arising from
temporary differences (net of related tax
liability)
Regulatory adjustments applied to common
equity Tier 1 due to insufficient additional Tier
1 and Tier 2 to cover deductions
Common equity Tier 1 capital:(B)
regulatory adjustments¥9,381¥2,352¥18,041¥12,000

52

13

52

35

593

148

1,419

946

443,158

110,789

269,400

179,600

5,473

1,368

1,338

892

-

-

-

-

36,5959,148

56,10537,403

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

/

-

/

1,159,800/

813,702/¥7,001,664¥/¥6,566,488¥/

Common equity Tier 1 capital (CET1)
29

Common equity Tier 1 capital (CET1)((A)-(B))

261

Composition of capital disclosure(C)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
Additional Tier 1 capital: instruments (3)
30

31a

30

31b

30

32

30

34-35

33+35
33
35

36

Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as equity under applicableaccounting standards and the breakdown
Subscription rights to additional Tier 1
instruments
Directly issued qualifying additional Tier 1
instruments plus related stock surplus ofwhich: classified as liabilities under applicableaccounting standards
Qualifying additional Tier 1 instruments plus
related stock surplus issued by special
purpose vehicles and other equivalent entities
Additional Tier 1 instruments issued bysubsidiaries and held by third parties (amountallowed in group AT1)
Eligible Tier 1 capital instruments subject tophase-out arrangements included in additional
Tier 1 capital: instrumentsof which: directly issued capital instruments
subject to phase out from additional Tier 1of which: instruments issued by subsidiaries
subject to phase out
Total of items included in additional Tier 1
capital: instruments subject to phase-out
arrangementsof which: foreign currency translation
adjustments
Additional Tier 1 capital: instruments

(D)

¥-

¥/

¥-

¥/

-

/

-

/

760,000/

300,000

/

-

/

-

/

31,786/30,843/

577,500/

1,144,037/

577,500/

1,144,037

/

-

/

-

/

(13,931)/(21,475)/(13,931)/(21,475)/

1,355,354/

1,453,405

/

-

-

-

-

¥-

¥-

¥-

¥-

Additional Tier 1 capital: regulatory adjustments
37
38

Investments in own additional Tier 1
instruments
Reciprocal cross-holdings in additional Tier 1
instruments

262

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

39

40

Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above 10%threshold)
Significant investments in the capital ofbanking, financial and insurance entities thatare outside the scope of regulatory
consolidation (net of eligible short positions)
Total of items included in additional Tier 1
capital: regulatory adjustments subject tophase-out arrangements

¥38

¥9

¥17

¥11

117,600

29,40088,60659,071

27,858/26,176/

14,954

/

9,376

/

11,717/

10,750

/

13

/

35

/

1,172

/

6,013

/

-

/

-

/

145,496/

114,800/(F)

1,209,858/

1,338,605/(G)

8,211,522/

7,905,093

/

-

/

-

/

¥-

¥/

¥-

¥/

of which: goodwill equivalent

42
43

of which: intangible fixed assets recognized
as a result of a mergerof which: capital increase due tosecuritization transactionsof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
Regulatory adjustments applied to additional
Tier 1 due to insufficient Tier 2 to coverdeductions
Additional Tier 1 capital: regulatory(E)
adjustments

Additional Tier 1 capital (AT1)44

Additional Tier 1 capital ((D)-(E))

Tier 1 capital (T1 = CET1 + AT1)
45

Tier 1 capital (T1 = CET1 + AT1)((C)+(F))

Tier 2 capital: instruments and provisions (4)46
46

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as equity under applicable accounting
standards and the breakdown
Subscription rights to Tier 2 instruments

263

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

46

46

48-49

47+49
47
49

Directly issued qualifying Tier 2 instruments
plus related stock surplus of which: classified
as liabilities under applicable accounting
standards
Tier 2 instruments plus related stock surplus
issued by special purpose vehicles and otherequivalent entities
Tier 2 instruments issued by subsidiaries andheld by third parties (amount allowed in group
Tier 2)
Eligible Tier 2 capital instruments subject tophase-out arrangements included in Tier 2:
instruments and provisionsof which: directly issued capital instruments
subject to phase out from Tier 2of which: instruments issued by subsidiaries
subject to phase out¥684,150¥/¥324,517¥/

168,300/

169,035/

10,574/

10,269/842,133/

962,928/

168,022/

169,035/

674,110/

793,893/50

Total of general allowance for loan losses andeligible provisions included in Tier 2

6,510

/

6,031

/

50a

of which: general allowance for loan losses

6,510

/

6,031

/

-

/

-

/

180,319/374,012/161,221/335,046/

19,097/38,965/

1,891,987/

1,846,795

/

409

102

-

-

-

-

-

-

¥16,413¥4,103¥33,374¥22,24950b

of which: eligible provisions
Total of items included in Tier 2 capital:
instruments and provisions subject to phaseout arrangementsof which: 45% of unrealized gains on othersecuritiesof which: 45% of revaluation reserve for land

51

Tier 2 capital: instruments andprovisions(H)

Tier 2 capital: regulatory adjustments
52

Investments in own Tier 2 instruments

53

Reciprocal cross-holdings in Tier 2 instruments
Investments in the capital of banking, financial
and insurance entities that are outside thescope of regulatory consolidation, net of
eligible short positions, where the bank does
not own more than 10% of the issued commonshare capital of the entity (amount above the
10% threshold)

54

264

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template

55

57

Significant investments in the capital banking,financial and insurance entities that are outside
the scope of regulatory consolidation (net of
eligible short positions)
Total of items included in Tier 2 capital:
regulatory adjustments subject to phase-out
arrangementsof which: investments in the capitalbanking, financial and insurance entitiesof which: 50% of excess of expected losses
relative to eligible reserves by banks
adopting internal ratings-based approach
Tier 2 capital: regulatory adjustments

¥-

¥-

¥-

¥-

35,732/

79,873/34,559/73,859

/

1,172

/

6,013

/

(I)

52,555/113,248/(J)

1,839,431/

1,733,547/(K)

10,050,953/

9,638,641/

260,992/

480,460/

123,310/

206,661

/

9,150

/

4,409

/

110,789/

179,600/

17,742/

89,788/¥61,717,158¥/¥62,531,174¥/

11.34%/

10.50%/

Tier 2 capital (T2)58

Tier 2 capital (T2) ((H)-(I))

Total capital (TC = T1 + T2)
59

Total capital (TC = T1 + T2) ((G)+(J))

Risk weighted assets (5)Total of items included in risk weighted assets
subject to phase-out arrangementsof which: intangible assets (net of related
tax liability, excluding those relating tomortgage servicing rights)
of which: deferred tax assets that rely on
future profitability excluding those arisingfrom temporary differences (net of related
tax liability)of which: net defined benefit assetof which: investments in the capitalbanking, financial and insurance entities
60

Risk weighted assets(L)

Capital ratio (consolidated)
61

Common equity Tier 1 capital ratio(consolidated) ((C)/(L))

265

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(a) Composition of capital disclosure (International standard)-(Continued)
As of March 31, 2017

(Millions of yen)
As of March 31, 2016

Amounts
excludedundertransitionalarrangements

Amounts
excludedundertransitionalarrangements

Basel III
template
62

Tier 1 capital ratio (consolidated) ((G)/(L))

13.30%/

12.64%/

63

Total capital ratio (consolidated) ((K)/(L))

16.28%/

15.41%/¥703,872¥/¥672,811¥/

118,358/

112,376

/

-

/

-

/

182,672/

75,828

/

6,510

/

6,031

/

46,343/47,342

/

-

/

-

/

299,309/

304,580/

1,041,569/

1,249,883

/

-

/

-

/

843,530/

1,012,236

/

¥-

¥/

¥-

¥/

Regulatory adjustments (6)
72

73
74
75

Non-significant investments in the capital ofother financials that are below the thresholds
for deduction (before risk weighting)Significant investments in the common stock offinancials that are below the thresholds fordeduction (before risk weighting)Mortgage servicing rights that are below thethresholds for deduction (before risk weighting)Deferred tax assets arising from temporary
differences that are below the thresholds fordeduction (before risk weighting)

Provisions included in Tier 2 capital: instruments and provisions (7)
76
77

78

79

Provisions (general allowance for loan losses)
Cap on inclusion of provisions (generalallowance for loan losses)
Provisions eligible for inclusion in Tier 2 inrespect of exposures subject to internal ratingsbased approach (prior to application of cap) (ifthe amount is negative, report as "nil")
Cap for inclusion of provisions in Tier 2 underinternal ratings-based approach

Capital instruments subject to phase-out arrangements (8)
82
83
84
85

Current cap on AT1 instruments subject tophase-out arrangements
Amount excluded from AT1 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")
Current cap on T2 instruments subject tophase-out arrangements
Amount excluded from T2 due to cap (excess
over cap after redemptions and maturities) (ifthe amount is negative, report as "nil")

Notes: 1. The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of"Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio" (Industry Committee Practical Guideline No. 30 of the JapaneseInstitute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an
examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of thecapital adequacy ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal controls related
to the calculation of the capital adequacy ratio.

266

Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Explanation of (a) Composition of capital disclosure
Reconciliation between "Consolidated balance sheet" and items of consolidated balance sheet and "Composition of capital
disclosure"(Millions of yen)

Items

(Assets)
Cash and due from banks
Call loans and bills purchased
Receivables under resaleagreements
Guarantee deposits paid under
securities borrowing transactions
Other debt purchased
Trading assets
Money held in trust
Securities
Loans and bills discounted
Foreign exchange assets
Derivatives other than for trading
assetsOther assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptancesand guarantees
Reserves for possible losses on
loans
Total assets(Liabilities)
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under repurchaseagreements
Guarantee deposits received under
securities lending transactions
Commercial paper
Trading liabilities
Borrowed money
Foreign exchange liabilities
Short-term bonds
Bonds and notes

267

Explanation of Composition of capital disclosure

Consolidated balance sheet as in publishedfinancial statements

Cross-reference
to Appended
template

As of March 31, 2017

As of March 31, 2016

¥47,129,583
1,035,746¥36,315,471
893,545

8,967,777

7,805,798

3,350,051

3,407,390

2,745,204
10,361,787
247,583
32,353,158
78,337,793
1,828,782

2,979,797
13,004,522
175,638
39,505,971
73,708,884
1,447,743

2,170,750

3,157,752

6-d4,180,339
1,136,329
1,045,486
797,762
56,066

4,144,131
1,085,791
804,567
646,428
36,5176-e

5,273,581

4,798,158(509,175)(459,531)¥200,508,610¥193,458,580¥120,045,217
10,631,277
1,255,172¥105,629,071
11,827,533
2,521,008

17,969,753

16,833,346

1,679,300

2,608,971

789,705
7,923,285
6,307,230
526,053
226,348
7,564,535

1,010,139
10,276,133
7,503,543
492,473
648,381
6,120,928

6-a2-b, 6-b
6-c

2-a
3
4-a

6-f
8-a

8-b

Reference # ofBasel III template
under theComposition ofcapital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) Explanation of (a) Composition of capital disclosure-(Continued)(Millions of yen)Items

Due to trust accounts
Derivatives other than for trading
liabilities
Other liabilities
Reserve for bonus payments
Reserve for variable compensation
Net defined benefit liability
Reserve for director and corporate
auditor retirement benefits
Reserve for possible losses on salesof loans
Reserve for contingencies
Reserve for reimbursement ofdeposits
Reserve for reimbursement ofdebentures
Reserves under special laws
Deferred tax liabilities
Deferred tax liabilities for revaluation
reserve for land
Acceptances and guarantees
Total liabilities(Net assets)
Common stock and preferred stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Net unrealized gains (losses) onother securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation
adjustments
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Stock acquisition rights
Non-Controlling interests
Total net assets
Total liabilities and net assets

Consolidated balance sheet as in publishedfinancial statements

Cross-reference
to Appended
template

As of March 31, 2017

As of March 31, 2016

4,784,077

5,067,490

1,784,857

2,571,597

3,883,168
67,633
3,018
55,236

5,532,596
62,171
2,836
51,514

1,327

1,685

298

267

5,680

5,271

19,072

16,15432,72039,2452,309
337,800

2,024
414,7994-b

66,58567,9914-c

5,273,581¥191,235,249

4,798,158¥184,105,335

2,256,275
1,134,416
3,615,449(4,849)¥7,001,291

2,255,790
1,110,164
3,197,616(3,609)¥6,559,962

1,289,985

1,296,039

10,172
145,609165,264
148,483(69,657)(53,689)

144,866

51,752¥1,520,976¥1,607,851

1,754
749,339¥9,273,361¥200,508,610

2,762
1,182,668¥9,353,244¥193,458,580

Reference # ofBasel III template
under theComposition ofcapital disclosure

6-g

1-a
1-b
1-c
1-d

5

3
1b
7

Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.

268

Explanation of Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended template
1. Shareholders' equity(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items(Millions of yen)
As of March
31, 2017

As of March
31, 2016

1-aCommon stock and preferred stock¥2,256,275¥2,255,790

1-bCapital surplus

1,134,416

1,110,164

1-c
1-d

Retained earnings
Treasury stock
Total shareholders' equity

3,615,449(4,849)¥7,001,291

3,197,616(3,609)¥6,559,962(2) Composition of capitalBasel III
template

Composition of capital disclosure

Directly issued qualifying commonshare capital plus related stock
surplus and retained earnings
1a
2
1c

31a

of which: capital and stock surplusof which: retained earningsof which: treasury stock (-)
of which: other than above
Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified as equity
under applicable accounting standards
and the breakdown

269

Explanation of Composition of capital disclosure

Remarks

Including eligible Tier 1 capital
instruments subject to phaseout arrangements (for thebalance as of March 31, 2016)
Including eligible Tier 1 capital
instruments subject to phaseout arrangements (for thebalance as of March 31, 2016)(Millions of yen)
As of March
31, 2017

As of March
31, 2016

Remarks¥7,000,683¥6,460,330

Shareholders' equity
attributable to common shares(before adjusting national
specific regulatory adjustments(earnings to be distributed))

3,390,691
3,614,841
4,849-

3,267,031
3,196,908
3,609
-

-

-

Shareholders' equity
attributable to preferred shareswith a loss absorbency clauseupon entering into effectively
bankruptcy

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

2. Intangible fixed assets(1) Consolidated balance sheet(Millions of yen)
As of March
31, 2017

As of March
31, 2016

Ref.

Consolidated balance sheet items

2-a
2-b

Intangible fixed assets
Securitiesof which: share of goodwill ofcompanies accounted for using theequity method¥1,045,486
32,353,158¥804,567
39,505,971

24,84635,646

Income taxes related to above¥(295,574)¥(237,595)(2) Composition of capitalBasel III
template

Composition of capital disclosure

Goodwill (net of related tax liability,
including those equivalent)
Other intangibles other than goodwill
9 and mortgage servicing rights (net of
related tax liability)
Mortgage servicing rights (net of
related tax liability)
Amount exceeding the 10%
20
threshold on specified items
Amount exceeding the 15%
24
threshold on specified items
Mortgage servicing rights that are74
below the thresholds for deduction(before risk weighting)83

As of March
31, 2016¥99,619¥59,087

675,139

543,531

-

-

-

-

-

-

-

-

15

Remarks

Software and other(Millions of yen)

Consolidated balance sheet items

As of March
31, 2017

As of March
31, 2016

Net defined benefit asset¥797,762¥646,428

Income taxes related to above¥(243,814)¥(197,428)(2) Composition of capitalBasel III
template

Share of goodwill of companies
accounted for using the equity
method(Millions of yen)
As of March
31, 2017

3. Net defined benefit asset(1) Consolidated balance sheet
Ref.

Remarks

Remarks(Millions of yen)

Composition of capital disclosure

As of March
31, 2017

As of March
31, 2016

Net defined benefit asset¥553,947¥449,000

Remarks

270

Explanation of Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Deferred tax assets(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items

4-a
4-b

Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for revaluation
4-creserve for landTax effects on intangible fixed assets
Tax effects on net defined benefit asset(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥56,066
337,800¥36,517414,799

66,58567,991¥295,574
243,814¥237,595
197,428(2) Composition of capitalBasel III
template

10

21
25

75

Composition of capital disclosure(Millions of yen)
As of March
31, 2017

As of March
31, 2016

Deferred tax assets that rely on future
profitability excluding those arisingfrom temporary differences (net of
related tax liability)¥45,751¥11,024Deferred tax assets that rely on future
profitability arising from temporary
differences (net of related tax liability)

182,672

75,828----

182,672

75,828Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Deferred tax assets arising from
temporary differences that are
below the thresholds for deduction(before risk weighting)271

Explanation of Composition of capital disclosure

Remarks

Remarks

This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.
This item does not agree withthe amount reported on the
consolidated balance sheet
due to offsetting of assets andliabilities.

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

5. Deferred gains or losses on derivatives under hedge accounting(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items

5 Deferred gains or losses on hedges

As of March
31, 2016¥10,172¥165,264(2) Composition of capitalBasel III
template

11

Composition of capital disclosure

Deferred gains or losses onderivatives under hedge accounting(Millions of yen)

As of March
31, 2017

Remarks(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥10,172¥165,264

Remarks

6. Items associated with investments in the capital of financial institutions(Millions of yen)
(1) Consolidated balance sheet
As of March
31, 2017

As of March
31, 2016¥10,361,787¥13,004,522

6-b Securities
6-c Loans and bills discounted
Derivatives other than for trading
6-dassets6-e Other assets

32,353,158
78,337,793

39,505,971
73,708,884

2,170,750

3,157,752

4,180,339

4,144,131

6-fTrading liabilities

7,923,285

10,276,133

6-g

Derivatives other than for trading
liabilities

1,784,857

2,571,597

Ref.

Consolidated balance sheet items

6-a

Trading assets

Remarks

Including trading accountsecurities and derivatives for
trading assets
Including subordinated loans

Including money invested
Including trading accountsecurities sold

272

Explanation of Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of capitalBasel III
template

16
37
52

17
38
53

18
39
54
72

19
23
40
55
73

Composition of capital disclosure

Investments in own capital instruments
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in thecapital of banking, financial andinsurance entities
Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Investments in the capital of banking,financial and insurance entities thatare outside the scope of regulatory
consolidation, net of eligible shortpositions, where the bank does not
own more than 10% of the issued
share capital (amount above 10%threshold)Common equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capitalNon-significant investments in thecapital of other financials that are
below the thresholds for deduction(before risk weighting)Significant investments in the capitalof banking, financial and insurance
entities that are outside the scope of
regulatory consolidation, net of eligible
short positions
Amount exceeding the 10%threshold on specified items
Amount exceeding the 15%threshold on specified items
Additional Tier 1 capital
Tier 2 capitalSignificant investments in thecommon stock of financials that are
below the thresholds for deduction(before risk weighting)273

Explanation of Composition of capital disclosure(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥7,3536,842
511¥2,231
2,231
-

-

-

-

-

770,182

821,973

45,74348
20,51793,50828
55,624

703,872

672,811265,358

260,053

-

-

-

-

147,000-

147,677-

118,358

112,376

Remarks

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

7. Non-Controlling interests(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items

7 Non-Controlling interests(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥749,339¥1,182,668(2) Composition of capitalBasel III
template

Composition of capital disclosure

Common share capital issued bysubsidiaries and held by third parties(amount allowed in group CET1)
Qualifying additional Tier 1
instruments plus related stock surplus
30-31ab-32
issued by special purpose vehicles
and other equivalent entities
Additional Tier 1 instruments issued by
34-35 subsidiaries and held by third parties(amount allowed in group AT1)
Tier 2 instruments plus related stock
46 surplus issued by special purpose
vehicles and other equivalent entities
Tier 2 instruments issued by
48-49 subsidiaries and held by third parties(amount allowed in group Tier 2)
5(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥14,537¥14,749

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)--

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)

31,78630,843

168,300

169,035

10,574

10,2698. Other capital instruments(1) Consolidated balance sheet
Ref.

Consolidated balance sheet items

8-a
8-b

Borrowed money
Bonds and notes
Total

Remarks

Remarks

After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)
After reflecting amounts eligible
for inclusion (non-controllinginterest after adjustments)(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥6,307,230
7,564,535¥13,871,765¥7,503,543
6,120,928¥13,624,471

Remarks

274

Explanation of Composition of capital disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of capitalBasel III
template

32

46

Composition of capital disclosure

Directly issued qualifying additional
Tier 1 instruments plus related stock
surplus of which: classified asliabilities under applicable accounting
standards
Directly issued qualifying Tier 2
instruments plus related stock surplusof which: classified as liabilities underapplicable accounting standards(Millions of yen)
As of March
31, 2017

As of March
31, 2016¥760,000¥300,000

684,150

324,517

Remarks

Note: Amounts in the "Composition of capital disclosure" are based on those before considering amounts under transitional arrangements and include "Amounts excluded undertransitional arrangements" disclosed in "(A) Composition of capital disclosure" as well as amounts included as regulatory capital. In addition, items for regulatory purposes
under transitional arrangements are excluded from this table.

■ Risk-based capital(3) Summary of approach to assessing capital adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.
Maintaining a sufficient BIS capital ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining our capital above theminimum requirements of common equity Tier 1 capital ratio, Tier 1 capital ratio, total capital ratio and capital buffer ratio.
Balancing risk and capitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the principal banking subsidiaries, etc., within the bounds of our capital,
and we conduct regular assessments to ensure that a sufficient level of capital is maintained for our risk profile. Whenmaking these assessments, we calculate the potential losses arising from assumed stress events and risk volumes, which
we assess whether they balance with the group’s capital. Stress events are based on risk scenarios that are formulated
based on the current economic condition and the economic outlook, etc. and from scenarios such as the occurrence ofhistorical stress events. In addition, we examine whether an appropriate return on risk is maintained in the assessments.

275

Explanation of Composition of capital disclosure、Risk-based capital2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(4) Required capital by portfolio classification(Billions of yen)
As of March 31, 2017

Credit risk
Internal ratings-based approach
Corporate (except specialized
lending)
Corporate (specialized lending)
SovereignBank
RetailResidential mortgage
Qualifying revolving loan
Other retail
Equities
PD/LGD approach
Market-based approach (simple
risk weight method)
Market-based approach (internal
models approach)
Regarded-method exposure
Purchase receivables
Securitizations
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
Others
CVA risk
Central counterparty-relatedMarket risk
Standardized approach
Interest rate risk
Equities risk
Foreign exchange risk
Commodities risk
Option transactions
Internal models approach
Operational risk
Advanced measurement approach
Basic indicator approach
Total required capital (consolidated)

As of March 31, 2016

EAD

Required capital

EAD

Required capital¥207,375.9
189,852.0¥5,078.5
4,600.4¥200,940.9
190,100.2¥5,234.5
4,701.2

71,777.8

2,468.9

70,940.2

2,502.9

3,630.9
80,002.7
5,902.0
12,235.5
9,388.0
629.2
2,218.2
4,973.3
4,180.1

225.4
81.0
113.6
486.3
312.2
48.8
125.1
691.4
485.4

3,818.1
79,624.1
6,893.6
12,942.5
9,855.1
562.9
2,524.5
4,460.7
3,901.2

270.3
102.0
150.2
514.4
324.7
42.6
147.0
587.7
441.9

793.1

205.9

559.4

145.7

-

-

-

-

1,744.0
3,297.5
4,009.5
2,278.3
17,523.9
12,638.5
1,930.1
2,354.5
14.4
586.1
¥-

268.4
102.5
26.3
136.3
280.6
12.2
36.7
177.3
2.1
52.0
181.7
15.6
182.6
103.6
39.0
34.2
6.9
23.4
78.9
269.9
223.4
46.5
¥4,937.3

1,750.8
3,669.1
3,803.3
2,197.4
10,840.7
5,748.0
2,035.8
2,392.7
20.7
643.2
¥-

311.6
116.7
23.2
121.6
290.2
8.3
37.1
181.8
5.3
57.5
225.8
17.1
135.6
70.6
37.6
23.9
4.8
4.1
65.0
259.7
221.0
38.6
¥5,002.4

Notes: 1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.
4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets and (ii) expected losses. For market risk, the market risk equivalent amount. For operationalrisk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:

276

Risk-based capital2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate (excluding
specialized lending)Credits to corporations and sole proprietors (excluding credits to retail customers)

Corporate (specialized
lending)

Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc,
including real estate non-recourse loan, ship finance and project finance, etc.

SovereignCredits to central governments, central banks and local governmental entities

Bank

Credits to banks and securities companies, etc.

RetailHousing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual consumer loans and loans tobusiness enterprises with total credit amount of less than ¥100 million, etc. (other retail).

Equities

Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)

Regarded-method exposure

Investment trusts and funds, etc.

Purchase receivables

Receivables purchased from third parties excluding securities (excluding securitizations)

Securitizations

Transactions in the form of “non-recourse” and having a “senior/subordinated structure,” etc. (excluding specialized lending).

7. EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible losses on loans, reserve forpossible losses on loans to restructuring countries and partial direct write-offs.

277

Risk-based capital2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Credit risk
(5) Credit risk management○ Summary of credit risk management
See pages 111 to 114 for a summary of our credit risk management policies and procedures.
We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under Basel Framework.
With regard to some business units or asset classes that are deemed to be immaterial for purposes of calculating credit
risk-weighted assets, we apply the standardized approach.
We use our estimates of PD (probability of default) and LGD (loss given default) in calculating credit risk-weighted assets.
In accordance with regulations, we estimate PD by using long-term averages of actual defaults, to which conservative
adjustments are made, based on internal data, and make adjustments to LGD taking into account recessionary periods.
We regularly perform verifications of PD and LGD through back testing and other methods. We also utilize theseestimates for measuring credit risks for internal use, allocating risk capital and other purposes.

○ Status of portfolios to which the standardized approach is applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which the standardized
approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and S&P Global Ratings overseas.
We apply a risk weight of 100% for all of our corporate exposure.
○ Summary of our internal rating system
See pages 111 to 112 for a summary of our internal rating system and rating assignment procedures.
The following table sets forth information with respect to the definition of obligor ratings.

278

Credit risk management、Status of portfolios to which the standardized approach is applied、Summary of our internal rating system

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(6) Credit risk exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2016 and 2017.
○ Status of credit risk exposure(a) Breakdown by geographical area
(Billions of yen)
As of March 31, 2017

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥68,581.7
37,218.6
8,907.9¥19,414.3
10,014.2
2,145.6¥954.6
1,635.9472.7¥38,424.0
7,854.8
1,865.2¥127,374.7
56,723.7
13,391.6

2,978.7

56.3

85.1

456.3

3,576.6

14,644.8
289.1
6,597.03,800.9¥105,800.4-

6,304.6
882.1
625.3¥29,428.5
-

339.6
0.2
581.5
156.5
¥2,590.5-

4,420.9
4.6
722.7
384.9
¥46,278.8-

25,710.0294.0
8,783.4
4,967.7¥184,098.4
17,509.4(Billions of yen)

As of March 31, 2016

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥68,500.9
38,737.2
9,269.4¥25,391.7
10,892.1
2,145.6¥1,489.6
2,678.3
409.9¥30,971.8
5,884.1
1,464.4¥126,354.1
58,191.9
13,289.4

3,107.3

56.7

126.7

470.8

3,761.6

15,529.0
374.0
6,792.6
3,664.6¥107,238.1-

6,470.6
1,826.5
392.5¥36,283.9
-

711.6
0.2
1,199.2
230.4¥4,167.9-

3,190.3
3.1
497.4
257.8
¥36,856.0-

25,901.7
377.5
10,315.9
4,545.5¥184,546.0
10,820.0

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. Exposure to non-Japanese residents is included in "Overseas."
3. "Others" include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

279

Credit risk exposure, etc.、Status of credit risk exposure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(b) Breakdown by industry(Billions of yen)
As of March 31, 2017

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥20,272.4
1,349.2
8,608.9
5,018.6
8,532.7
12,095.5
11,071.5
25,759.5¥2,299.9
215.0
570.4
397.7
738.9
3,034.3
8,846.0¥424.1
7.6
83.5
77.4
92.3
896.8
0.8
1,002.5¥742.9
70.6
19.7
68.0
994.4
2,144.1
9.4
8,360.3¥23,739.5
1,642.4
9,282.6
5,561.9
10,358.5
18,170.9
11,081.8
43,968.5

13,091.8

13,325.9

5.1

33,868.8

60,291.8¥105,800.4-¥29,428.5-¥2,590.5-¥46,278.8-¥184,098.4
17,509.4(Billions of yen)

As of March 31, 2016

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Japanese Government;
Bank of Japan
Total
Exempt portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥19,955.7
1,498.5
8,579.8
5,018.6
8,821.9
11,709.8
11,634.5
26,988.4¥2,212.9
201.1
548.1
381.3
724.6
2,970.5
9,748.7¥569.1
12.5
94.8
85.4
147.9
2,093.1
0.6
1,120.2¥638.8
47.4
17.5
65.8
900.4
1,777.6
10.1
6,565.9¥23,376.7
1,759.7
9,240.3
5,551.2
10,594.9
18,551.2
11,645.3
44,423.4

13,030.5

19,496.4

43.8

26,832.1

59,402.9¥107,238.1-¥36,283.9-¥4,167.9-¥36,856.0-¥184,546.0
10,820.0

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. "Others" include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

280

Status of credit risk exposure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(c) Breakdown by residual contractual maturity(Billions of yen)
As of March 31, 2017

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥28,002.1¥7,317.2¥378.8¥5,819.6¥41,518.0

18,999.1

7,689.9

980.2

676.6

28,346.1

19,035.9

1,879.4

451.7

17.8

21,384.9

27,912.4
11,850.6¥105,800.4-

7,705.1
4,836.7¥29,428.5
-

759.0
20.5
¥2,590.5-

11.9
39,752.7¥46,278.8-

36,388.5
56,460.7¥184,098.4
17,509.4(Billions of yen)

As of March 31, 2016

Less than one year
From one year to lessthan three years
From three years toless than five years
Five years or more
Other than above
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥27,076.9¥5,849.6¥775.3¥4,940.8¥38,642.8

20,332.0

13,249.2

1,666.4

599.1

35,846.9

18,855.2

4,964.2

667.4

16.0

24,502.9

28,091.6
12,882.2¥107,238.1-

7,803.3
4,417.4¥36,283.9-

1,043.8
14.7¥4,167.9-

11.8
31,288.0¥36,856.0-

36,950.7
48,602.5¥184,546.0
10,820.0

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. "Others" include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

281

Status of credit risk exposure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Status of exposure past due three months or more or in default(d) Breakdown by geographical area
(Billions of yen)
As of March 31, 2017

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥973.8
244.6
54.2

¥90.6
2.9
0.0

¥2.9
7.8
1.8

¥10.5
3.3
1.1

¥1,078.1
258.8
57.2

98.5

0.0

2.8

0.0

101.3

30.1
0.6
47.3
13.7
¥1,218.5
-

2.9
0.0
¥93.6
-

0.1
0.0
2.9
0.0
¥10.8
-

1.4
0.5
0.1
¥13.9
-

34.7
0.7
50.8
13.9
¥1,336.9
3.6(Billions of yen)

As of March 31, 2016

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt portion

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥931.3
224.1
49.6

¥79.7
3.1
0.0

¥4.2
7.0
0.5

¥17.1
4.9
0.7

¥1,032.4
239.2
50.9

55.3

0.0

3.3

0.0

58.6

29.5
1.9
64.6
22.9
¥1,155.4
-

3.0
0.0
¥82.9
-

0.0
3.1
¥11.3
-

1.6
2.3
0.1
¥22.0
-

34.2
2.0
70.2
23.0
¥1,271.7
3.8

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

282

Status of exposure past due three months or more or in default2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Breakdown by industry(Billions of yen)
As of March 31, 2017

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥548.4
13.2
59.0
84.1
176.1
11.1
94.6
231.8
¥1,218.5
-

¥87.5
0.0
0.3
0.4
2.2
2.6
0.3
¥93.6
-

¥2.9
0.0
0.1
0.9
0.3
0.0
6.4
¥10.8
-

¥4.8
0.0
0.2
0.9
4.1
1.8
1.1
0.7
¥13.9
-

¥643.8
13.3
59.6
86.4
182.8
15.6
95.7
239.4
¥1,336.9
3.6(Billions of yen)

As of March 31, 2016

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Total
Exempt portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥420.3
17.9
76.3
84.4
195.1
11.3
108.3
241.5
¥1,155.4
-

¥73.2
0.0
0.6
0.8
1.5
5.5
0.9
¥82.9
-

¥2.7
0.1
0.7
0.6
0.0
7.0
¥11.3
-

¥4.5
0.5
0.2
1.2
9.5
2.1
1.1
2.6
¥22.0
-

¥500.7
18.5
77.3
87.3
206.9
19.0
109.5
252.2
¥1,271.7
3.8

Notes: 1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries
and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit riskweighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

283

Status of exposure past due three months or more or in default2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Status of reserves for possible losses on loans
The amounts associated with regarded-method exposure and securitization exposure are excluded.
(f) Fiscal year-end balances of reserves for possible losses on loans and changes during the fiscal year (afterpartial direct write-offs)
As of, or for the fiscal year
ended March
31, 2017

General reserve for possible
losses on loans

Specific reserve for possible
losses on loans

Reserve for possible losses
on loans to restructuring
countries
Total

Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal year
Decrease during the fiscal year
Ending balance
Beginning balance
Increase during the fiscal
year
Decrease during the fiscal
year
Ending balance¥304.8
344.7
304.8
344.7
154.6
164.4
154.6
164.4
0.0
0.0
0.0
0.0
¥459.5
509.1
459.5
509.1

(Billions of yen)
As of, or for the fiscal year
ended March
31, 2016¥344.4
304.8
344.4
304.8
180.3
154.6
180.3
154.6
0.6
0.0
0.6
0.0
¥525.4
459.5
525.4
459.5

Note: General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated with regardedmethod exposure and securitization exposure are not excluded.

284

Status of reserves for possible losses on loans

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(g) Specific reserve for possible losses on loans by geographical area and industry
Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Overseas
Exempt portion
Total

Domestic
Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Overseas
Exempt portion
Total

As of March 31, 2016

As of March 31, 2015

(Billions of yen)
Change

¥96.2
27.2
3.1
2.3
11.5
28.8
0.6
17.3
5.0
49.1
9.3
¥154.6¥120.0
29.5
5.5
5.0
11.4
35.0
0.8
25.6
6.9
49.9
10.4
¥180.3¥(23.8)
(2.3)
(2.3)
(2.6)
0.0
(6.2)
(0.1)
(8.3)
(1.8)
(0.8)
(1.0)
¥(25.6)

As of March 31, 2017

As of March 31, 2016

(Billions of yen)
Change¥105.0
36.4
0.8
1.9
12.6
33.4
0.5
14.1
4.8
49.2
10.1
¥164.4

¥96.2
27.2
3.1
2.3
11.5
28.8
0.6
17.3
5.0
49.1
9.3
¥154.6

¥8.7
9.2
(2.3)
(0.3)
1.1
4.5
(0.0)
(3.2)
(0.1)
0.0
0.8
¥9.7

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.

285

Status of reserves for possible losses on loans

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(h) Write-offs of loans by industry

Manufacturing
Construction
Real estate
Service industries
Wholesale and retail
Finance and insurance
Individuals
Other industries
Exempt portion
Total

For the fiscal year ended March
31, 2017(Billions of yen)
For the fiscal year ended March
31, 2016

¥0.9
0.3
0.2
2.3
3.1
4.4
4.2
0.1
¥15.8

¥1.1
0.2
0.8
1.4
7.9
0.1
5.3
29.4
0.0
¥46.6

Notes: 1. The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts associated withregarded-method exposure and securitization exposure.
2. Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for purposes of calculating credit
risk-weighted assets.
3. "Other industries" include overseas and non-Japanese resident portions.

286

Status of reserves for possible losses on loans

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Status of exposure to which the standardized approach is applied(i) Exposure by risk weight category after applying credit risk mitigation(Billions of yen)
As of March 31, 2017

Risk weight

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

Total

On-balance sheet

Off-balance sheet

Total

With externalrating¥10,729.6
179.8
1,337.2
42.4
1,894.8
0.0
48.9¥14,233.1¥1,522.4
511.1
55.8
1,186.8
0.0
0.0
0.0¥3,276.3¥12,252.1
179.8
1,848.4
98.3
3,081.6
0.0
48.9
0.0
0.0
0.0
¥17,509.4

¥50.0
63.5
22.0
122.9
¥258.4(Billions of yen)

As of March 31, 2016

Risk weight

Total

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

On-balance sheet

Off-balance sheet

Total

With externalrating¥4,659.9
225.4
1,117.2
46.3
2,044.3
0.0
53.3¥8,146.6¥695.5859.9
41.5
1,076.2
0.0
0.0¥2,673.3¥5,355.4
225.4
1,977.2
87.9
3,120.5
0.0
53.3
0.0
0.0
¥10,820.0

¥63.2
81.3
51.8
57.3
0.0
¥253.6

Notes: 1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries andpartial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

287

Status of exposure to which the standardized approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(j) Amount of exposure to which a risk weight of 1,250% is applied
As of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥0.2

¥0.8

Amount of exposure to which a risk weight of 1,250% is applied○ Status of exposure to which the internal ratings-based approach is applied(k) Specialized lending exposure under supervisory slotting criteria by risk weight category

Risk weight

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

As of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥0.0
13.4
3.8
87.6
4.5
8.0
15.2
17.0
15.5
¥165.6

¥0.5
41.6
1.1
44.6
5.0
15.4
7.5
39.6
19.5
¥175.2(l) Equity exposure under simple risk weight method of market-based approach by risk weight category

Risk weight
Total

300%
400%

As of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥737.555.6¥793.1¥488.371.1¥559.4

Note: Of the equity exposure under the simple risk weight method, a risk weight of 300% is applied for listed equities and 400% for unlisted equities.

288

Status of exposure to which the standardized approach is applied、Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(m) Portfolio by asset class and ratings segment (Corporate, etc.)(Billions of yen, except percentages)
As of March 31, 2017

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
Noninvestment
grade
zone
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

1.76

36.17

-

36.73

¥78,222.1

0.09

37.82

-

26.08

1.49

31.95

-

100.00
0.01

35.87
37.96

0.00

Off-balance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor(%)¥56,571.6¥21,650.4¥22,184.7

74.99

55,538.0

37,788.8

17,749.1

18,464.6

74.99

64.06

21,680.0

17,927.0

3,752.9

3,563.4

75.00

33.22
-

35.12
1.27

1,004.080,314.2

855.7
67,492.6

148.2
12,821.5

156.6
816.3

75.00
75.00

37.96

-

1.16

80,165.1

67,353.7

12,811.4

806.8

75.00

0.94

37.82

-

63.75

149.0

138.8

10.1

9.4

75.00

100.00
0.16

28.51
37.28

25.45
-

40.51
23.23

0.0
5,921.5

0.0
4,231.3

1,690.2

734.3

75.00

0.08

37.30

-

19.41

5,337.6

3,764.5

1,573.0

643.6

75.00

0.59

36.96

-

58.25

582.4

465.3

117.1

90.6

75.00

100.00

96.75

94.52

29.55

1.4

1.4

-

-

-

2.28

90.00

-

145.16

4,180.1

4,064.4

115.7

-

-

0.07

90.00

-

112.903,788.9

3,673.2

115.7

-

-

1.10

90.00

-

240.10

301.9

301.9

-

-

-

100.00
0.88

90.00
38.40

- 1,192.50
89.3
89.3
22.06 ¥168,638.0 ¥132,360.1¥36,277.9¥23,735.3

74.99

0.04

39.24

-

14.31

144,829.7

112,580.3

32,249.4

19,915.1

74.99

1.46

32.89

-

66.25

22,713.3

18,833.1

3,880.2

3,663.5

75.00

100.00

40.37

33.31

129.54

1,094.9

946.6

148.2

156.6

75.00

289

Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen, except percentages)
As of March 31, 2016

Corporate
Investment
grade
zone
Noninvestment
grade
zone
Default
Sovereign
Investment
grade
zone
Noninvestment
grade
zone
Default
Bank
Investment
grade
zone
Noninvestment
grade
zone
Default
Equityexposure
under
PD/LGDapproach
Investment
grade
zone
Noninvestment
grade
zone
Default
Total
Investment
grade
zone
Noninvestment
grade
zone
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

1.72

36.43

-

37.92

¥77,953.6

0.10

38.05

-

27.27

1.49

32.28

-

100.00
0.01

39.19
38.29

0.00

Off-balance
sheet

Amount ofundrawn
commitments

Weighted
average ofcreditconversion
factor(%)¥56,053.9¥21,899.7¥22,666.8

74.99

54,868.1

36,687.2

18,180.9

19,298.2

74.99

64.49

22,127.0

18,442.6

3,684.4

3,360.5

75.00

36.60
-

34.30
1.60

958.4
79,893.0

924.0
65,570.6

34.4
14,322.4

8.0
854.0

75.00
75.00

38.29

-

1.49

79,739.7

65,426.9

14,312.7

845.5

75.00

0.72

38.13

-

61.26

153.2

143.5

9.7

8.4

75.00

100.00
0.18

56.88
35.19

52.15
-

62.73
26.25

0.0
6,923.3

0.0
4,151.3

2,772.0

555.6

75.00

0.09

35.00

-

22.09

6,198.3

3,557.9

2,640.4

451.8

75.00

0.69

36.65

-

61.91

723.0

591.4

131.5

103.8

75.00

100.00

97.07

94.79

30.21

1.9

1.9

-

-

-

2.04

90.00

-

141.61

3,901.2

3,858.0

43.1

-

-

0.07

90.00

-

112.473,558.7

3,515.5

43.1

-

-

1.03

90.00

-

236.83

268.0

268.0

-

-

-

100.00
0.85

90.00
38.50

- 1,191.88
74.4
74.4
22.64 ¥168,671.3 ¥129,633.9¥39,037.4¥24,076.5

74.99

0.05

39.33

-

14.90

144,364.9

109,187.6

35,177.2

20,595.6

74.99

1.45

33.11

-

66.37

23,271.5

19,445.7

3,825.7

3,472.8

75.00

100.00

42.95

36.72

117.56

1,034.9

1,000.5

34.4

8.0

75.00

Notes: 1. Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default includes E2R through H1.
2. "Corporate" does not include specialized lending exposure under supervisory slotting criteria.
3. Each asset class includes purchased receivables.
4. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted
average of credit conversion factor.
5. Regarding equity exposure under the PD/LGD approach, we recognize the risk-weighted assets by multiplying 1,250% by the expected loss ("EL").

290

Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(n) Portfolio by asset class and ratings segment (Retail)(Billions of yen, except percentages)
As of March 31, 2017

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

Offbalance
sheet

1.61

41.29

-

32.98

¥9,388.0¥9,258.2¥129.8

¥9.1

75.00

0.76

41.24

-

32.92

9,307.8

9,179.6

128.2

9.1

75.00

100.00

47.30

44.25

40.27

80.2

78.6

1.5

-

-

3.25

76.82

-

66.05

629.2

414.9

214.2

1,715.6

12.49

3.14

76.83

-

66.05

628.4

414.4

214.0

1,714.1

12.49

100.00
4.50

71.62
49.02

66.53
-

67.40
46.43

0.7
2,218.2

0.5
2,204.2

0.1
14.0

1.5
16.4

12.84
65.02

1.66

49.12

-

46.56

2,154.0

2,143.4

10.5

12.7

56.80

100.00
2.22

45.71
44.52

42.54
-

41.92
37.12

64.2
¥12,235.5

60.7¥11,877.4

3.4¥358.0

93.64
13.31

1.04

44.49

-

37.07

12,090.3

11,737.5

352.8

3.6
¥1,741.2
1,736.0

100.00

46.72

43.61

41.14

145.2

139.9

5.2

5.2

69.86

Weighted
Amount of average ofcreditundrawn
commit- conversion
ments factor (%)

13.14(Billions of yen, except percentages)
As of March 31, 2016

Residential
mortgage
Nondefault
Default
Qualifying
revolvingloan (retail)Nondefault
Default
Other retail
Nondefault
Default
Total
Nondefault
Default

PD(EAD
weighted
average)
(%)

LGD
(EAD
weighted
average)(%)

EL default(EAD
weighted
average)(%)

Riskweight(EAD
weighted
average)(%)

EAD(Billionsof yen)On-balance
sheet

Offbalance
sheet

1.68

41.05

-

32.11

¥9,855.1¥9,698.6¥156.4

¥10.0

75.00

0.76

40.99

-

32.10

9,763.1

9,608.6

154.5

10.0

75.00

100.00

47.31

44.79

33.37

91.9

90.0

1.9

-

-

3.18

76.66

-

64.45

562.9

373.7

189.1

1,610.0

11.75

3.03

76.67

-

64.46

562.0

373.1

188.9

1,608.5

11.75

100.00
4.38

71.97
51.67

67.80
-

55.26
49.11

0.8
2,524.5

0.6
2,508.6

0.2
15.8

1.5
18.1

14.39
65.01

1.65

51.87

-

49.45

2,454.3

2,442.0

12.2

14.3

57.51

100.00
2.28

44.83
44.67

42.02
-

37.24
36.83

70.1
¥12,942.5

66.5¥12,581.0

3.6¥361.4

3.8¥1,638.2

92.69
12.73

Weighted
Amount of average ofcreditundrawn
commit- conversion
ments factor (%)

1.03

44.65

-

36.85

12,779.4

12,423.7

355.6

1,632.8

12.53

100.00

46.37

43.72

35.15

163.0

157.2

5.7

5.4

70.15

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.

291

Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(o) Actual losses by asset class
For the period from April 1, 2016
through March 31, 2017
Actual losses(Billions of yen)
For the period from April 1, 2015
through March 31, 2016
Actual losses¥(2.8)
0
(0.2)
(0.6)
0.5
(1.6)
¥(4.9)

¥24.8
0
(0.5)
(6.0)
0.4
(1.2)
¥17.4

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Note: Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses on loans and general reserve for possible
losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing loans, losses fromdebt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in the amount of actual losses.
<Analysis>
The total amount of actual losses was decreased by ¥22.3 billion from the previous period to negative ¥4.9 billion due to significant decrease of losses from
corporate exposure.

(p) Comparison of estimated and actual losses by asset class
For the period from April 1, 2016
through March 31, 2017
Actual losses
Estimated losses (expected
losses as of March 31, 2016)
After
deduction ofreserves

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retailTotal¥483.4
1.8
5.5
71.5
13.6
47.8
¥623.8¥117.6
1.7
3.6
34.2
3.3
16.5
¥177.2¥(2.8)
0
(0.2)
(0.6)
0.5
(1.6)
¥(4.9)For the period from April 1, 2014
through March 31, 2015
Actual losses
Estimated losses (expected
losses as of March 31, 2014)
After
deduction ofreserves

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retailTotal¥596.0
1.5
10.3
104.8
11.5
61.9
¥786.3¥195.5
1.5
5.6
46.1
3.8
23.8
¥276.6¥128.1
0.0
(1.2)
(0.7)
2.2
5.1
¥133.6(Billions of yen)
For the period from April 1, 2015
through March 31, 2016
Estimated losses (expected
Actual losses
losses as of March 31, 2015)
After
deduction ofreserves¥607.1
1.6
7.3
80.4
12.3
54.3
¥763.2¥128.9
1.5
3.9
31.2
2.4
15.1
¥183.3

¥24.8
0
(0.5)
(6.0)
0.4
(1.2)
¥17.4

(Billions of yen)
For the period from April 1, 2013
through March 31, 2014
Estimated losses (expected
Actual losses
losses as of March 31, 2013)
After
deduction ofreserves¥785.1
1.7
12.5
123.7
11.2
69.1
¥1,003.5¥246.9(11.9)
6.4
50.5
3.9
26.2
¥322.3¥(41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥(57.4)292

Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retail
Total

Corporate
SovereignBank
Residential mortgage
Qualifying revolving loan (retail)
Other retailTotal

For the period from April 1, 2012
through March 31, 2013
Actual losses
Estimated losses (expected
losses as of March 31, 2012)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2011
through March 31, 2012
Estimated losses (expected
Actual losses
losses as of March 31, 2011)
After
deduction ofreserves¥828.0
3.1
18.4
134.8
10.8
73.5
¥1,068.8¥989.6
1.3
31.9
150.4
12.2
74.7
¥1,260.3¥272.6(10.2)
6.3
41.6
3.7
24.2
¥338.4

¥75.6
0.2
(5.0)
(9.2)
0.3
0.2
¥62.1

¥373.2(11.7)
4.1
43.2
4.2
24.1
¥437.2

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

For the period from April 1, 2010
through March 31, 2011
Actual losses
Estimated losses (expected
losses as of March 31, 2010)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2009
through March 31, 2010
Estimated losses (expected
Actual losses
losses as of March 31, 2009)After
deduction ofreserves¥1,296.9
1.5
38.4
122.6
10.2
51.2
¥1,521.1¥1,313.1
1.7
35.5
95.8
10.3
51.3
¥1,508.0¥454.0(11.4)
8.3
31.1
3.5
15.0
¥500.6

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

¥473.3(10.8)
6.5
24.8
3.8
15.6
¥513.3¥166.5
0.3
1.0
33.2
0.2
4.3
¥205.8For the period from April 1, 2008
through March 31, 2009
Actual losses
Estimated losses (expected
losses as of March 31, 2008)
After
deduction ofreserves(Billions of yen)
For the period from April 1, 2007
through March 31, 2008
Estimated losses (expected
Actual losses
losses as of March 31, 2007)
After
deduction ofreserves¥1,121.0
1.3
2.9
86.6
7.9
51.9
¥1,271.8¥1,086.0
5.4
6.4
78.2
7.2
52.9
¥1,236.5¥350.0(11.1)
2.5
22.7
3.2
16.4
¥383.9¥345.3
0.0
28.6
17.2
2.1
3.8
¥397.3¥217.0
(7.0)
2.6
6.8
2.3
8.8
¥230.5

¥74.6
0.0
(2.6)
5.1
(0.1)
(2.8)
¥74.1

Notes: 1. Estimated losses after deduction of reserve are the amount after deductions of partial direct write-offs, specific reserves for possible losses on loans and general reserves
for possible losses on loans (for claims against special attention obligors or below), etc., as of the beginning of each period. Equity exposure under the PD/LGD approach is
not included in the amount of estimated losses.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses on loans and general reserves forpossible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing loans,losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in the amount of
actual losses.

293

Status of exposure to which the internal ratings-based approach is applied2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Methods for credit risk mitigation(7) Risk management regarding credit risk mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor the state of concentration of collateral type andconcentration of credit risks in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by"sovereign, banks or corporations above a certain credit rating" is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of
the legal system of the relevant jurisdiction, we take its effect into consideration.

(8) Credit risk mitigation by portfolio classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as
follows:(Billions of yen)
Financial collateralInternal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying revolving
loan
Other retail
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
OthersTotal

As of March 31, 2017
Other collateral
Guarantees

Credit derivatives

Total¥806.3¥5,045.9¥8,429.4¥11.7¥14,293.4

740.9
8.5
33.3
23.4

4,670.6
8.3
99.6
267.2

7,412.7
369.9
82.3
564.4

11.7
-

12,836.0
386.8
215.3
855.1

-

-

122.5

-

122.5

-

-

0.1

-

0.1

23.4
124.5
100.0
14.0
10.5
¥930.8267.2¥5,045.9

441.7
163.4
163.4
¥8,592.9

-

732.4
287.9
263.4
14.0
10.5
¥14,581.4

¥11.7

294

Methods for credit risk mitigation、Credit risk mitigation by portfolio classification

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)
Financial collateralInternal ratings-based
approachCorporate
SovereignBank
RetailResidential
mortgage
Qualifying revolving
loan
Other retail
OthersStandardized approach
Sovereign
Bank
Corporate
Residential mortgage
Securitizations
OthersTotal

As of March 31, 2016
Other collateral
Guarantees

Credit derivatives

Total¥1,075.7¥5,455.6¥7,740.6¥50.4¥14,322.5

642.1
13.2
394.8
25.6

5,003.9
10.5
193.9
247.2

6,529.5
504.7
58.8
647.4

50.4
-

12,226.0
528.5
647.6
920.3

-

-

151.0

-

151.0

-

-

0.2

-

0.2

25.6
200.3
160.0
26.5
13.7
¥1,276.0

247.2¥5,455.6

496.2
196.8
196.8
¥7,937.4

¥50.4

769.1
397.1
356.8
26.5
13.7
¥14,719.6

295

Credit risk mitigation by portfolio classification

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Counterparty risk in derivatives transactions and long-settlement transactions(9) Management of counterparty risk in derivatives transactions and long-settlement transactions
In managing the risk pertaining to counterparty risk in derivatives transactions and long-settlement transactions, we
generally allocate risk capital together with loans, etc. As to derivatives transactions with financial institutions, etc., weperiodically, where necessary, deliver and receive collateral to and from the counterparty based on the replacement costto mitigate credit risk (collateralized derivatives transactions). In conducting such transactions, there is a risk in which we
may be required to provide additional collateral in cases where our credit profile deteriorates. We calculate reserves forderivatives transactions by multiplying the same reserve ratio that we use for loans, etc., against the replacement cost.

(10) Status of counterparty risk in derivatives transactions and long-settlement transactions(a) Status of derivatives transactions and long-settlement transactions
Derivative transactions

Current exposure method
Foreign exchangerelated transactions
Interest rate-relatedtransactions
Gold-relatedtransactions
Equity-relatedtransactions
Transactions related
to precious metals(other than gold)
Other commodityrelated transactions
Credit derivatives
transactions
Subtotal(A)
Netting benefits by(B)
close-out netting
settlement
contracts
Subtotal(C)=(A)+(B)(D)
Effect of credit risk
mitigation bycollateral
Total(C)+(D)

Standardized method
Total
Expected positive
exposure method
Total

As of March 31, 2017
Gross
Gross
replacement
add-oncost

Creditequivalentamount(Billions of yen)
As of March 31, 2016
Gross
Gross
Creditreplacement
add-onequivalentcostamount¥139.7¥95.7¥235.4¥2,637.9¥2,903.1¥5,541.1

156.5

61.8

218.3

3,827.2

1,031.2

4,858.5

-

-

-

-

-

-

36.6

130.4

167.0

107.8

182.5

290.3

33.1

73.7

106.8

48.8

101.8

150.7

527.4

1,160.5

1,688.0

671.5

896.4

1,568.0

2.4

8.1

10.6

33.1

213.2

246.3

895.9
-

1,530.4-

2,426.4
1,154.2

7,326.5-

5,328.5-

12,655.1
7,250.9--

1,272.1
298.6

-

-

5,404.1
490.6

¥-

¥-

¥973.5¥-¥-¥4,913.5

Creditequivalentamount¥16.3

Creditequivalentamount¥333.6¥2,386.1¥-

Note: We introduced expected positive exposure method during the fiscal year ended March 31, 2017 to calculate credit equivalent amounts.

296

Counterparty risk in derivatives transactions and long-settlement transactions、Status of counterparty risk in derivatives transactions andlong-settlement transactions

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital AdequacyLong-settlement transactions(Billions of yen)
As of March 31, 2017
Gross
Gross
replacement
add-oncost

Long-settlement transactions

¥26.8

¥5.9

CreditequivalentamountAs of March 31, 2016
Gross
Gross
replacement
add-on
cost

¥32.8

¥52.9

Creditequivalentamount

¥9.4

¥62.3

Notes: 1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the "netting benefits by close-out netting settlement contracts" nor the "effect of credit risk mitigation by collateral" applies to long-settlement transactions.

(b) Amounts of credit risk mitigation by type
(Billions of yen)
As of March 31, 2017

As of March 31, 2016

¥23.7
31.1
11.7
¥66.7

¥386.139.9
17.6¥443.7

Financial collateral
Other collateral
Guarantees, others
Total(c) Notional amount of credit derivatives subject to credit equivalent amount calculations(Billions of yen)

Credit derivatives type:
Credit default swap
Total return swap
Total

Protection bought
Protection soldProtection bought
Protection soldProtection
boughtProtection sold

As of March 31, 2017

As of March 31, 2016

Notional amount

Notional amount¥1,708.2
1,803.0¥1,708.2¥1,885.4
1,912.9¥1,885.4

1,803.0

1,912.9

Note:Credit derivatives used for credit risk mitigation are as follows:(Billions of yen)
As of March 31, 2017

As of March 31, 2016

¥20.0

¥57.7

Credit derivatives used for credit risk mitigation

297

Status of counterparty risk in derivatives transactions and long-settlement transactions

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■ Securitization exposure
We classify transactions as securitization exposure based on two characteristics, "non-recourse" and "senior/subordinatedstructure," pursuant to the definitions set forth in the FSA Notice No. 20, etc.; provided that the transactions do not include
those which fall within specialized lending exposure.

(11) Summary of securitization exposure and its risk management
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book. Quantitative information related to (a) to (c) below is disclosed in "(13) Quantitative disclosure items forsecuritization exposure," in accordance with the definitions set forth in the FSA Notice No. 20. Securitization exposures
are separately disclosed for calculation of credit risk-weighted assets and market risk equivalent amounts.
○The role of our securitization transactions(a) Securitization of our assets ("Securitization as originator")
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to theneeds of our investors, etc., we engage in securitization transactions the underlying assets of which include mortgage
loans and loans to our corporate customers. When conducting a securitization as an originator, we consider suchtransaction from various aspects, including the effects of reduction of economic capital and improvement of return on risk
as well as the practical effects of risk transfers, and make a comprehensive judgment on structure and appropriateness oftransaction.
(b) Securitization program (ABCP/ABL) sponsor
As a means of supporting our customers in their securitization of their account receivables and notes receivables, etc., weretain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions), andproviding asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to special
purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining firm
understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internal ratingsand make evaluations by assessing such transactions and carefully managing the exposure together with other direct loan
assets.
(c) Investment in alternative credit risk assets ("Securitization transactions as investor")
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Risk Management
Committee, etc. set limits on the amount of investment for securitization transactions as investor, and we maintain astringent structure for management of such transactions. In addition, we implement stress tests based on scenarios underthe market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as ameans of financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets,
and to disclose appropriately the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
None of our affiliated entities hold securitization products in which we are involved as originators or sponsors.
○ Overview of risk characteristics in securitization and monitoring system
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio.

298

Summary of securitization exposure and its risk management

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

The structure of these products also contains risks related to the originators, the administrators, trustees and managers of
the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor theability, quality and operating performance of originators and managers in charge of controlling the underlying assets aswell as covenant information and credit status of the parties related to the program.
In addition, for resecuritization products, we pay attention to the underlying assets of the underlying securitization products.
We also assign internal ratings to all products and review the rating at least once a year. If there is a change in the credit
situations, we will review the internal rating as appropriate. As mentioned above, we have established a system tocomprehensively understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Risk Management Committee, etc.
○Status of response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply
the ratings-based approach ("RBA") if the asset has a rating obtained from eligible external credit assessment institutions
and apply the supervisory formula approach ("SF") in other cases pursuant to the FSA Notice No. 20. We apply a risk
weight of 1,250% under Basel III when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we
calculate based on risk weight according to ratings by eligible external credit assessment institutions and weighted
average risk weight of underlying assets.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt the standardized
measurement method and calculate market risk equivalent amounts in connection with the specific risks of securitization
products based on risk weights according to ratings assigned by eligible external credit assessment institutions pursuant to
the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch Ratings,
Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment
institutions for each type of securitization exposure).
(12) Accounting policies for securitization transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to "Accounting Standards Relating to Financial Products"(Business Accounting Standards No. 10), etc., and we applied (a) valuations obtained from brokers and others or (b)reasonably calculated prices based on the reasonable estimates of our management as fair value, unless it is deemed to
be extremely difficult to determine the fair value. In deriving reasonably calculated prices based on the reasonableestimates of our management, we used the discounted cash flow method, and the price decision variables include default
rates, recovery rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on "Report on Auditing
Securitized Instruments", announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

299

Summary of securitization exposure and its risk management

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(13) Quantitative disclosure items for securitization exposure○ Securitization exposure as originator (for calculation of credit risk-weighted assets)(a) Information by type of underlying assets(Billions of yen)

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)Creditcards

Residential
mortgage
loans

¥-

¥48.1

As of, or for the fiscal year ended, March 31, 2017
Lease
Auto
payment
CorpoRealloans
receivables
rate
estate¥-¥-¥-Securitization
products

Total

¥-

¥-

¥48.1
0.2

-

0.2

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

280.9

-

-

280.9
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

277.4

-

-

277.4

¥-

¥48.1

¥-

¥-

¥280.9¥-¥-¥329.1300

Securitization exposure as originator (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)

Traditional securitizations
Amount of underlying assets(a)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Gains and losses recognizedon sales during the fiscal year
Securitization subject to early
amortization treatment
Synthetic securitizations
Amount of underlying assets(b)Default exposure
Losses during the fiscal year
Amount of exposures
securitized during the fiscal
year
Total amount of underlying
assets (a)+(b)Creditcards

Residential
mortgage
loans

¥-

¥58.8

As of, or for the fiscal year ended, March 31, 2016
Lease
Auto
payment
CorpoRealloans
receivables
rate
estateSecuritization
products

Total

¥-

¥-

¥-

¥-

¥-

¥58.8
0.3

-

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

70.6

-

-

70.6
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥58.8

¥-

¥-

¥70.6

¥-

¥-

¥129.5

Notes: 1. Items that refer to "during the fiscal year" show amounts accumulated during the fiscal year ended March 31, 2016 and 2017.
2. "Amount of underlying assets" and "Losses during the fiscal year" include those related to, in addition to exposure originated by us, exposure to assets originated by otherfinancial institutions if they are contained in the same securitization program.
3. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
4. "Credit cards" include shopping credit receivables, card loans, etc.
5. The effects of risk mitigation, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitization transactions are reflected in"Required capital" of "(B) Information of securitization exposure retained or purchased."

301

Securitization exposure as originator (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

─Exposure intended to be securitized─
(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2017
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Exposure intended to be
securitized

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2016
Lease
payment
Corporeceivables
rate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(b) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations towhich a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2017
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥0

¥-

¥-

-

-

-

-

-

-

-

-

¥-

Real
estateSecuritization
products

Total¥280.9¥-¥-¥280.9

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥0
-

¥-

¥-

¥280.9-¥-¥-¥280.9
-

-

0

-

-

0.6

-

-

0.6

-

-

-

-

-

-

-

-

(Billions of yen)On-balance sheet
Exposure on resecuritizations
Off-balance sheet
Exposure on resecuritizations
Total
Exposure on resecuritizations
Exposure on securitizations towhich a risk weight of
1,250% is applied
Exposure whose underlying
assets are overseas assets

As of March 31, 2016
Lease
payment
Corporeceivables
rate

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

¥-

Real
estateSecuritization
products

Total

¥70.6

¥-

¥-

¥70.6

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥70.6
-

¥-

¥-

¥70.6
-

-

-

-

-

-

-

-

-

-

-

-

-

64.5

-

-

64.5

Notes: 1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. "Exposure whose underlying assets are overseas assets" is classified based on the principal underlying asset type for each transaction.
4. "Exposure on resecuritizations" as of both March 31, 2016 and 2017 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same)

302

Securitization exposure as originator (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk weight category─(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2017
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations¥267.4
1.7
-

¥-

¥-

11.1

-

0.6
¥280.9¥-

Total

Exposure on
resecuritizations¥-¥267.4
1.7
-

¥-

-

-

11.1

-

¥-

¥-

0.6
¥280.9¥(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2016
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations

¥62.7
1.7
6.1

¥-

¥-

-

-

¥70.6

¥-

Total

Exposure on
resecuritizations

¥-

¥62.7
1.7
6.1

¥-

-

-

-

-

¥-

¥-

¥70.6

¥-

─Amount of required capital by risk weight category─(Billions of yen)RiskweightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

As of March 31, 2017
OffExposure onbalanceresecuritizations
sheet

Onbalance
sheet

Exposure on
resecuritizations

¥1.5
-

¥-

¥-

0.2

-

0.7
¥2.6

¥-

Total

Exposure on
resecuritizations

¥-

¥1.5
-

¥-

-

-

0.2

-

¥-

¥-

0.7
¥2.6

¥-

303

Securitization exposure as originator (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen)RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

As of March 31, 2016
Offbalance
Exposure on
sheet
resecuritizations

Onbalance
sheet

Exposure on
resecuritizations

¥0.3
0.5

¥-

¥-

-

-

¥0.9

¥-

Total

Exposure on
resecuritizations

¥-

¥0.3
0.5

¥-

-

-

-

-

¥-

¥-

¥0.9

¥-

─Credit risk mitigation against exposure on resecuritizations─RiskweightAs of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥¥-

¥¥-

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Capital increase due to securitization transactions─(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2017
Lease
payment
receivables
Corporate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

(Billions of yen)

Capital increase due tosecuritizationtransactions

Creditcards

Residential
mortgage
loans

Auto
loans

¥-

¥-

¥-

As of March 31, 2016
Lease
payment
receivables
Corporate

¥-

¥-

Real
estateSecuritization
products

Total

¥-

¥-

¥-

304

Securitization exposure as originator (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit riskweighted assets)(c) Information by type of underlying assets(Billions of yen)Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2017
Lease
Account
Autopayment
and noteReal
loans
receivables
receivables
estateCreditcards

Residential
mortgage
loans

¥43.3

¥-

¥74.4

¥31.9

¥307.5

-

-

-

-

1.6

-

0.8

¥394.0¥-¥814.3

Others

Total

¥-

¥43.3

¥500.6

4.9

-

-

4.9

0.5

5.8

-

0.7

9.6

¥753.7¥2,512.4¥-¥680.3¥5,154.9(Billions of yen)Amount of underlying
assetsDefault exposure
Estimated loss amountrelated to underlying
assets during the fiscal
year
Amount of exposures
securitized during the
fiscal year

As of, or for the fiscal year ended, March 31, 2016
Lease
Account
Auto
Realpayment
and note
loans
receivables
estatereceivables

Others

Total

Creditcards

Residential
mortgage
loans

¥60.8

¥-

¥103.2¥161.5¥400.2¥-¥61.2¥787.1

-

-

-

-

3.3

-

-

3.3

1.5

-

0.8

3.6

5.0

-

2.2

13.3

¥1,263.5¥-¥862.3¥648.8¥3,077.6¥-¥828.7¥6,681.0

Notes: 1. Items that refer to "during the fiscal year" show amounts accumulated during the fiscal year ended March 31, 2016 and 2017.
2. Securitization exposure that is acquired in securitization of customer’s claims other than as sponsor (in the form of asset-backed securities, trust beneficiary rights and othertransferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and the following parameters that are used in
the calculation of capital adequacy ratio:･ parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and･ with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratings-based approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
6. "Credit cards" include shopping credit receivables, card loans, etc

305

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(d) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas
assets

As of March 31, 2017
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥17.8

¥-

¥62.7

¥30.1

-

-

-

136.3

-

-

Real
estateOthersTotal¥296.3¥-¥43.3¥450.6

-

-

-

-

-

0.1

-

54.0

-

27.6

218.2

-

-

-

-

-

-

-

¥154.2

¥-

¥62.9

¥30.1

¥350.4¥-¥71.0¥668.8

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

98.2

-

-

18.0

153.0

-

58.3

327.7

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas
assets

As of March 31, 2016
Lease
Account
payment
and note
receivables
receivables

Creditcards

Residential
mortgage
loans

Auto
loans

¥32.3

¥-

¥95.9

¥78.0

-

-

-

137.3

-

-

Real
estateOthersTotal¥388.6¥-¥61.0¥656.1

-

-

-

-

-

48.6

0.0

64.9

-

-

251.0

-

-

-

-

-

-

-

¥169.7¥-¥144.5¥78.1¥453.6¥-¥61.0¥907.1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

111.5

-

90.2

53.5

200.4

-

31.8

487.6

Notes: 1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation of required capital.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
3. Credit cards" include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
5. "Exposure on resecuritizations" as of both March 31, 2016 and 2017 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same)

306

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2017

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥434.9
14.0
1.6
-

¥-

¥218.2-¥-¥653.1
14.0
1.6
-

¥-

-

-

-

-

-

-

¥450.6¥-¥218.2¥-¥668.8¥(Billions of yen)

As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥650.4
2.1
3.4
-

¥-

¥251.0-¥-¥901.5
2.1
3.4
-

¥-

-

-

-

-

-

-

¥656.1¥-¥251.0¥-¥907.1¥-

─Amount of required capital by risk weight category─(Billions of yen)
As of March 31, 2017

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥2.7
0.2
0.1
-

¥-

¥1.4
-

¥-

¥4.1
0.2
0.1
-

¥-

-

-

-

-

-

-

¥3.1

¥-

¥1.4

¥-

¥4.5

¥-

307

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen)
As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

Onbalance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥3.8
0.0
0.1
-

¥-

¥1.5
-

¥-

¥5.4
0.0
0.1
-

¥-

-

-

-

-

-

-

¥4.1

¥-

¥1.5

¥-

¥5.7

¥-

─Credit risk mitigation against exposure on resecuritizations─RiskweightAs of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥¥-

¥¥-

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

○ Securitization exposure as investor(for calculation of credit risk-weighted assets)(e) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2017
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥145.0¥818.9¥725.6¥333.5

-

0.0

-

32.0

-

-

Real
estateOthersTotal¥425.4¥6.5¥195.3¥2,650.4

-

-

-

-

0.0

97.2

130.1

161.6

0.1

2.3

423.6

-

-

-

-

-

-

-

¥177.1¥818.9¥822.8¥463.7¥587.1¥6.6¥197.6¥3,074.1

-

0.0

-

-

-

-

-

0.0

-

0.0

-

-

-

0.2

-

0.2

161.3

0.0

819.9

462.8

587.1

0.1

163.3

2,194.8

308

Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of credit risk-weighted assets)、Securitization
exposure as investor (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weightof 1,250% is applied
Exposure whose
underlying assets
are overseas assets

As of March 31, 2016
Lease
payment
receivables
Corporate

Creditcards

Residential
mortgage
loans

Auto
loans

¥44.0

¥949.6¥469.5¥107.8

-

4.6

-

107.0

-

-

Real
estateOthersTotal¥427.4¥12.4¥311.3¥2,322.2

-

5.8

-

-

10.4

191.0

53.5

169.4

0.1

2.6

523.9

-

-

-

-

-

-

-

¥151.0¥949.6¥660.6¥161.3¥596.8¥12.5¥314.0¥2,846.2

-

4.6

-

-

5.8

-

-

10.4

-

0.0

-

-

-

0.8

-

0.8

151.0

0.0

627.7

157.3

596.8

0.3

269.5

1,802.9

Notes: 1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
4. "Exposure on resecuritizations" as of both March 31, 2016 and 2017 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same)

─Exposure by risk weight category─(Billions of yen)
As of March 31, 2017

Risk
weightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥2,593.7
44.8
8.3
3.3

¥0.0
-

¥421.11.7
0.5¥-¥3,014.9
44.8
10.1
3.9

¥0.0
-

-

-

-

-

-

-

0.0
¥2,650.4¥0.0

0.1¥423.6¥-0.2¥3,074.1

¥0.0

309

Securitization exposure as investor (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen)
As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations¥2,270.9
34.3
3.9
12.3

¥4.6
5.8
-

¥521.1
2.6¥-¥2,792.0
34.3
3.9
14.9

¥4.6
5.8
-

-

-

-

-

-

-

0.6
¥2,322.2

¥10.4

0.1
¥523.9¥-0.8¥2,846.2¥10.4

─Amount of required capital by risk weight category─(Billions of yen)
As of March 31, 2017

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥14.9
0.9
0.6
0.9

¥0.0
-

¥3.3
0.1
0.1

¥-

¥18.2
0.9
0.8
1.1

¥0.0
-

-

-

-

-

-

-

0.0
¥17.5

¥0.0

0.1
¥3.7

¥-

0.2
¥21.3

¥0.0
(Billions of yen)

As of March 31, 2016

Risk
weightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than
1,250%
1,250%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥12.7
0.7
0.3
3.4

¥0.0
0.1
-

¥3.2
0.7

¥-

¥15.9
0.7
0.3
4.1

¥0.0
0.1
-

-

-

-

-

-

-

0.6
¥17.8

¥0.2

0.1
¥4.1

¥-

0.8
¥21.9

¥0.2

─Credit risk mitigation against exposure on resecuritizations─RiskweightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total

As of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥¥-

¥2.5
¥2.5

Note: The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

310

Securitization exposure as investor (for calculation of credit risk-weighted assets)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization exposure as originator (for calculation of market risk equivalent amounts)(f) Information by type of underlying assets
None as of March 31, 2016 and 2017(g) Information of securitization exposure retained or purchased
None as of March 31, 2016 and 2017
○ Securitization exposure as sponsor of securitization programs (ABCP/ABL) (for calculation of market risk
equivalent amounts)(h) Information by type of underlying assets
None as of March 31, 2016 and 2017(i) Information of securitization exposure retained or purchased
None as of March 31, 2016 and 2017

311

Securitization exposure as originator (for calculation of market risk equivalent amounts)、Securitization exposure as sponsor of
securitization programs (ABCP/ABL) (for calculation of market risk equivalent amounts)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）○ Securitization exposure as investor (for calculation of market risk equivalent amounts)(j) Information of securitization exposure retained or purchased
─Exposure by type of underlying asset─
(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2017
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥0.0

¥3.7

¥13.8

¥0.6

-

-

-

-

-

-

Real
estateOthers

Total

¥0.0

¥3.0

¥7.0

¥28.4

-

-

-

0.0

0.0

-

-

-

-

-

-

-

-

-

-

-

-

-

¥0.0

¥3.7

¥13.8

¥0.6

¥0.0

¥3.0

¥7.0

¥28.4

-

-

-

-

-

-

0.0

0.0

-

3.6

0.4

-

0.0

-

0.3

4.4

-

3.5

13.8

0.6

0.0

3.0

7.0

28.2

(Billions of yen)On-balance sheet
Exposure on
resecuritizations
Off-balance sheet
Exposure on
resecuritizations
Total
Exposure on
resecuritizations
Exposure on
securitizations towhich a risk weight of
100% is applied
Exposure whose
underlying assets areoverseas assets

As of March 31, 2016
Lease
payment
receivables
Corporate

CreditCards

Residential
mortgage
loans

Auto
loans

¥-

¥1.0

¥0.0

¥-

-

-

-

-

-

-

Real
estateOthers

Total

¥0.0

¥4.0

¥1.4

¥6.5

-

-

-

0.3

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥1.0

¥0.0

¥-

¥0.0

¥4.0

¥1.4

¥6.5

-

-

-

-

-

-

0.3

0.3

-

1.0

-

-

0.0

0.3

0.3

1.7

-

0.9

0.0

-

0.0

2.0

1.1

4.0

Notes: 1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult to classify
are included under "Others."
2. "Credit cards" include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
4. "Exposure on resecuritizations" are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

312

Securitization exposure as investor (for calculation of market risk equivalent amounts)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by risk capital charge category─(Billions of yen)
As of March 31, 2017

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥20.5
2.4
1.0
4.4
¥28.4

¥0.0
¥0.0

¥¥-

¥¥-

¥20.5
2.4
1.0
4.4
¥28.4

¥0.0
¥0.0
(Billions of yen)

As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.4
2.3
1.9
1.7
¥6.5

¥0.2
0.1
¥0.3

¥¥-

¥¥-

¥0.4
2.3
1.9
1.7
¥6.5

¥0.2
0.1
¥0.3

─Amount of required capital by risk capital charge category─(Billions of yen)
As of March 31, 2017

Risk
capitalchargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%100%On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.3
0.1
0.2
4.4
¥5.2

¥0.0
¥0.0

¥¥-

¥¥-

¥0.3
0.1
0.2
4.4
¥5.2

¥0.0
¥0.0

313

Securitization exposure as investor (for calculation of market risk equivalent amounts)2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(Billions of yen)
As of March 31, 2016

Risk
capitalchargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
resecuritizations

Off-balance
sheet

Exposure on
resecuritizations

Total

Exposure on
resecuritizations

¥0.0
0.0
0.1
1.7
¥2.0

¥0.0
0.1
¥0.1

¥¥-

¥¥-

¥0.0
0.0
1.0
1.7
¥2.0

¥0.0
0.1
¥0.1

─Subject to Comprehensive Risk Measure─(Billions of yen)
As of March 31, 2017
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

(Billions of yen)
As of March 31, 2016
Securitization
Resecuritiation

Total amount of securitization exposure
Total amount of required capital

¥¥-

¥¥-

■ Market risk
See pages 115 to 119 for information regarding our market risk management structure, etc.
○ Trading activities
The following table shows VaR (Value at Risk) figures of our trading activities:(Billions of yen)
For the fiscal year
For the fiscal year
ended March 31,
ended March 31,
2017
2016
End of period
1.9
2.0
Maximum
4.8
4.4
Minimum
1.7
1.5
Average
2.7
2.4
The number of cases where assumptive losses
05exceeded VaR during the period
Notes: 1. Amount of market risk (VaR) is calculated based on the internal model.
2. The multiplication factor for the calculation of market risk equivalent is determined by the number of cases where assumptive losses exceeded VaR before 250 businessdays prior to the end of period.
3. Our group companies which conduct trading activities are Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities, etc.

VaR method:
VaR:
Quantitative standard:

historical simulation method;
1. confidence interval: one-tailed 99.0%;
2. holding period: 1 day; and3. historical observation period of three years (801 business days)

314

Securitization exposure as investor (for calculation of market risk equivalent amounts)、Market risk

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

The following table shows stressed VaR figures of our trading activities:(Billions of yen)
For the fiscal year
For the fiscal year
ended March 31,
ended March 31,
2017
2016
End of period
5.3
3.4
Maximum
8.9
12.5
Minimum
2.8
3.3
Average
5.2
5.2
Stressed VaR method:
Stressed VaR:
historical simulation method;
Quantitative standard:
1. confidence interval: one-tailed 99.0%;
2. holding period: 1 day; and3. historical observation period of one year of significant financial stress (265 business days)
Stressed VaR
The stressed VaR measurement is based on a continuous 12-month period of significant financial stress.
○ Outlier criteria
The following table shows results of calculations under the outlier framework:
Amount of loss
As of March 31, 2016
As of March 31, 2017
Effect of yen interest rate
Effect of dollar interest rate
Effect of euro interest rate

516.6
361.2
60.4
245.1
17.3

Broadly-defined
capital9,638.6
10,050.9
n.a.
n.a.
n.a.

(Billions of yen)
Loss ratio
to capital
5.3%
3.5%
n.a.
n.a.
n.a.

Outlier criteria
As part of the capital adequacy requirements under Basel III, the losses arising from a banking book in hypotheticalinterest rate shock scenarios under certain stress conditions are calculated and compared with the sum of Tier 1 and Tier
2 capital. If the interest rate risk of the banking book leads to an economic value decline of more than 20% of the sum ofTier 1 and Tier 2 capital, we will be deemed an "outlier" and may be required to reduce the banking book risk or adopt
other responses.
Interest rate shock scenario under stress conditions in outlier criteria
For the interest rate shock scenario used in connection with the calculations under the outlier framework, we generateannual rate fluctuation data for five years derived from daily raw historical interest rate data of the past six years and thenapply the actual fluctuation data at a 99.0% confidence level to the shock scenario.
■ Operational risk
See pages 120 to 124 for information regarding operational risk.

■ Equity exposure in banking book(14) Risk management related to equity exposure in banking book
With regard to equities in our banking book, we manage default risk through our credit risk management structure andprice fluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on a consolidated basis,and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices arevalued based on the average quoted market price over the month preceding the consolidated balance sheet date; othersecurities which have readily determinable fair values are valued at the quoted market price if available, or otherwise
based on their reasonable value at the consolidated balance sheet date (cost of securities sold is calculated primarily by
the moving average method); and other securities the fair values of which are extremely difficult to determine are statedat acquisition cost or amortized cost and determined by the moving average method.

315

Market risk、Operational risk、Equity exposure in banking book2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(15) Status of equity exposure in banking book(a) Amounts stated in consolidated balance sheet
As of March 31, 2017
Consolidatedbalance sheet
amountExposure of listed stock, etc.
Other equity exposure
Total¥3,857.0
400.3¥4,257.4(Billions of yen)
As of March 31, 2016
Consolidatedbalance sheet
amountFair value

Fair value¥4,031.5/¥/¥3,785.6
441.8¥4,227.5¥3,964.7/¥/

Note: The above figures include only Japanese and foreign stocks.

(b) Gains and losses on sales related to equity exposure(Billions of yen)
For the Fiscal year ended March 31, 2016
Gains andlosses on
Gains onLosses on
sales
sales
sales

For the Fiscal year ended March 31, 2017
Gains andlosses on
Gains onLosses on
sales
sales
sales

Sale of equity
exposure¥261.1¥295.8¥34.7¥225.3¥271.1¥45.7

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

(c) Gains and losses from write-offs related to equity exposure
For the Fiscal year ended
March 31, 2017
Gains and losses from writeoffs(Billions of yen)
For the Fiscal year ended
March 31, 2016
Gains and losses from writeoffs¥(4.8)¥(10.3)

Write-offs of equity exposure
Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized gains and losses recognized in the consolidated balance sheet and not recognized in the
consolidated statement of income(Billions of yen)
As of March 31, 2017

Equity exposure

As of March 31, 2016

Net unrealized
gains

Unrealized
gains

Unrealized
lossesNet unrealized
gains

Unrealized
gains

Unrealized
losses¥1,971.2¥2,017.1¥45.9¥1,751.2¥1,824.2¥73.0

Note: The above figures include only Japanese and foreign stocks.

316

Equity exposure in banking book2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Unrealized gains and losses not recognized in the consolidated balance sheet or in the consolidated
statement of income(Billions of yen)
As of March 31, 2017

Equity exposure

As of March 31, 2016

Net

Unrealized
gains

Unrealized
lossesNet

Unrealized
gains

Unrealized
losses¥174.5¥182.8¥8.3¥179.1¥188.7¥9.6

Note: The above figures include only Japanese and foreign stocks.

(f) Equities exposure by portfolio classification

PD/LGD approach
Market-based approach (simple risk weight
method)Market-based approach (internal models
approach)
Total

317

Equity exposure in banking book

As of March 31, 2017

(Billions of yen)
As of March 31, 2016

¥4,180.1¥3,901

793.1

559

-

-

¥4,973.3¥4,461

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）■Composition of Leverage Ratio(Millions of yen)
Correspon Correspon
ding line # ding line #on Baselon BaselIIIIII
disclosure disclosure
template
template(Table 2) (Table 1)

Item

On-balance sheet exposures (1)On-balance sheet exposures before deducting adjustment
1items
1 Total assets reported in the consolidated balance sheet
1a
The amount of assets of subsidiaries that are not included in
1b
2
the scope of the leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in thescope of the leverage ratio on a consolidated basis (except
1c7
those included in the total assets reported in the consolidatedbalance sheet)
The amount of assets that are deducted from the total assets
1d
3 reported in the consolidated balance sheet (except
adjustment items) (-)
2
7 The amount of adjustment items pertaining to Tier1 capital (-)
Total on-balance sheet exposures(a)3
Exposures related to derivative transactions (2)Replacement cost associated with derivatives transactions,4etc.
5
Add-on amount associated with derivatives transactions, etc.
The amount of receivables arising from providing cash margin
in relation to derivatives transactions, etc.
The amount of receivables arising from providing cash
6
margin, provided where deducted from the consolidatedbalance sheet pursuant to the operative accounting framework
The amount of deductions of receivables (out of those arising7
from providing cash variation margin) (-)
The amount of client-cleared trade exposures for which a
8bank holding company acting as a clearing member is not
obliged to make any indemnification (-)
9Adjusted effective notional amount of written credit derivatives
The amount of deductions from effective notional amount of10
written credit derivatives (-)(b)
11
4 Total exposures related to derivative transactions
Exposures related to repo transactions (3)The amount of assets related to repo transactions, etc
1213
The amount of deductions from the assets above (line 12) (-)
The exposures for counterparty credit risk for repo
14
transactions, etc
The exposures for agent repo transactions
15
(c)
16
5 Total exposures related to repo transactions, etc.
Exposures related to off-balance sheet transactions (4)Notional amount of off-balance sheet transactions
17
The amount of adjustments for conversion in relation to off18
balance sheet transactions (-)
19
6 Total exposures related to off-balance sheet transactions (d)Leverage ratio on a consolidated basis (5)The amount of capital (Tier1 capital)
(e)
20
(f)
21
8 Total exposures ((a)+(b)+(c)+(d))
Leverage ratio on a consolidated basis ((e)/(f))
22

As of March 31,
2017

As of March 31,
2016¥174,146,451¥165,817,309

200,508,610

193,458,580

-

-

-

-

26,362,159

27,641,270

1,296,500¥172,849,950

827,836¥164,989,473

2,454,674

2,981,601

5,615,193

5,442,321

1,038,620

935,595

204,188

137,668

-

-

/

/

1,882,691

2,382,713

1,705,729

2,149,991¥9,489,638¥9,729,907

12,317,829
5,179,456

11,213,188
4,973,078

385,734

300,864/¥7,524,107/¥6,540,975

49,117,932

48,317,452

31,579,950

31,095,649¥17,537,982¥17,221,802

8,211,522¥207,401,679
3.95%

7,905,093¥198,482,158
3.98%

318

Composition of Leverage Ratio2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■Indicators for assessing Global Systemically Important Banks (G-SIBs)

Item
No.

1

2

3

4
5
6
7

8
9
10
Item
No.

11
12

Description

Total exposures (= a + b + c + d):a. On-balance sheet assets (other than assets specifically identified below b., c. and contraaccount of guarantees)b. Sum of counterparty exposure of derivatives contracts, capped notional amount of written
credit derivatives and potential future exposure of derivatives contracts
c. Adjusted gross value of securities financing transactions (SFTs) and counterparty
exposure of SFTs
d. Gross notional amount of off-balance sheet items (other than derivatives contracts and
SFTs )
Intra-financial system assets (= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn committed lines
extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive
fair value
Intra-financial system liabilities (=a + b + c):a. Deposits due to, and loans and undrawn committed lines obtained from, other financial
institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fair value
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities , excluding HFT and
AFS securities that meet the definition of Level 1 assets and Level 2 assets with haircuts(Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment Clearing Networkand other similar settlement systems, excluding intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)(Billions of yen)
As of March 31,
2017¥208,698.1

12,248.4

20,482.5

24,386.5
144,337.5
916,188.1
9,728.9

1,774.5
44,852.9
30,741.5
For the fiscal
year ended
March 31, 2017

¥5,820,573.6
14,159.9

Notes: 1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

319

Indicators for assessing Global Systemically Important Banks (G-SIBs)

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Item
No.

1

2

3

4
5
6
7

8
9
10
Item
No.

11
12

Description

Total exposures (= a + b + c + d):a. On-balance sheet assets (other than assets specifically identified below b., c. and contraaccount of guarantees)b. Sum of counterparty exposure of derivatives contracts, capped notional amount of written
credit derivatives and potential future exposure of derivatives contracts
c. Adjusted gross value of securities financing transactions (SFTs) and counterparty
exposure of SFTs
d. Gross notional amount of off-balance sheet items (other than derivatives contracts and
SFTs )
Intra-financial system assets (= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn committed lines
extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive
fair value
Intra-financial system liabilities (=a + b + c):a. Deposits due to, and loans and undrawn committed lines obtained from, other financial
institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fair value
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities , excluding HFT and
AFS securities that meet the definition of Level 1 assets and Level 2 assets with haircuts(Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment Clearing Networkand other similar settlement systems, excluding intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)(Billions of yen)
As of March 31,
2016¥199,309.9

9,874.8

16,767.5

23,812.7
137,050.5
1,043,267.0
9,292.7

1,543.7
42,449.2
31,615.7
For the fiscal
year ended
March 31, 2016

¥6,789,919.1
10,155.1

Notes: 1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

320

Indicators for assessing Global Systemically Important Banks (G-SIBs)

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Sound Management of Liquidity Risk

■Liquidity Coverage Ratio
Liquidity standards agreed upon by the Basel Committee on Banking Supervision require our liquidity coverage ratio to surpassthe minimum standard starting March 31, 2015.
We calculate our consolidated liquidity coverage ratio (the "Consolidated LCR") in accordance with the regulation "The Evaluation
Criterion on the Sound Management of Liquidity Risk Defined, Based on Banking Law Article 52-25, as One of Criteria for Bank
Holding Companies to Evaluate the Soundness of Their Management and the Ones of Their Subsidiaries and Others, which isalso One of Evaluation Criteria on the Soundness of the Banks' Management"(the FSA Notice No. 62 of 2015 (the "Notice No.
62")).
The information disclosed herein is in accordance with "Matters Separately Prescribed by the Commissioner of the Financial
Services Agency Regarding Status of Sound Management of Liquidity Risk , etc. pursuant to Article 19-2, Paragraph 1, Item 5,
Sub-item (e) , etc. of the Ordinance for Enforcement of the Banking Law (Ministry of Finance Ordinance No. 7 of 2015)" (the FSA
Notice No. 7 of 2015(the "Notice No. 7")).
The status of our sound management of liquidity risk is as follows:(In million yen, the number of data)
Item

For the three months ended March 31, 2017

High-Quality Liquid Assets
1

Cash Outflows
2
3
4
5
6
7
8
9
10
11

(1)

Total high-quality liquid assets (HQLA)(2)Cash outflows related to unsecured retail fundingof which, Stable depositsof which, Less stable deposits
Cash outflows related to unsecured wholesalefundingof which, Qualifying operational deposits

For the three months ended December 31, 2016//

59,034,682

56,300,150

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

44,679,227

3,575,055

44,377,937

12,789,510

383,685

12,681,362

3,552,550
380,440

31,889,716

3,191,370

31,696,574

3,172,109

71,707,171

44,568,652

66,285,674

39,750,546

0

0

0

0

of which, Cash outflows related to unsecured
wholesale funding other than qualifying
operational deposits and debt securities

66,106,699

38,968,180

61,995,372

35,460,243

of which, Debt securities

5,600,471

5,600,471

4,290,302

4,290,302/

915,319/849,784

25,029,700

7,038,034

24,342,761

6,857,783

2,537,216

2,537,216

2,594,609

2,594,609

Cash outflows related to secured funding, etc
Cash outflows related to derivative transactions,etc. funding programs, credit and liquidity facilitiesof which, Cash outflows related to derivatives
transactions, etc

12of which, Cash outflows related to funding
programs

112,531

112,531

115,148

115,148

13

of which, Cash outflows related to credit andliquidity facilities

22,379,952

4,388,287

21,633,003

4,148,025

14

Cash outflows, etc. related to contractual funding
obligations

6,833,946

2,217,821

5,453,967

1,820,987

15

Cash outflows related to contingencies

72,712,059

692,538

72,215,545

662,945

16

Total cash outflows/

59,007,422/

53,494,597

Cash Inflows

(3)

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

TOTAL
UNWEIGHTED

TOTAL WEIGHTED
VALUE

17

Cash inflows related to secured lending andinvestments, etc.

10,407,502

842,947

9,828,735

681,437

18

Cash inflows related to collections of loans, etc

13,767,299

10,537,568

11,546,230

8,819,196

19

Other cash inflows

6,774,374

2,015,305

6,412,191

2,307,500

20

Total cash inflows

30,949,175

13,395,820

27,787,157

11,808,135

Consolidated liquidity coverage ratio

(4)

/

/

21

Total HQLA allowed to be included in thecalculation/

59,034,682/

56,300,150

22

Net cash outflows/

45,611,601/

41,686,462

23

Consolidated liquidity coverage ratio/

129.4％/

135.3％

24

The number of data used to calculate the average
value

61

321

Liquidity Coverage Ratio

3

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Notes: 1. Item from 1 to 23 are quarterly average using data points as shown in item 24. Regarding the fourth quarter of the fiscal year ended March 31, 2017, the average daily value
is disclosed based on the Notice No. 7.
2. We do not apply the "exception regarding qualifying operational deposits" in Article 28 of the Notice No. 62 with respect to item 6.
3. The numbers in item 11 include the amount of additional collateral required due to market valuation changes on derivatives transactions estimated by the "historical lookback approach" instead of "scenario approach" in Article 37 of the Notice No. 62.
4. There are no material components that necessitate detailed explanation of "cash outflows from other contracts" in Article 59 of the Notice No. 62 within item 14, "cashoutflows from other contingent funding obligations" in Article 52 of the Notice No. 62 within item 15, "cash inflows from other contracts" in Article 72 of the Notice No. 62
within item 19.
5. Monthly data or quarterly data is used for some of the data, etc., concerning our consolidated subsidiaries.

2017

Consolidated LCR(quartely average)

2016

2015

Jan-MarJan-MarApr-Jun

Jul-Sep

Oct-Dec

Apr-Jun

Jul-Sep

Oct-Dec

129.4%

128.2%

135.1%

137.4%

135.3%

124.6%

128.4%

133.4%

Our Consolidated LCR does not lead to any issues since it surpasses not only the minimum standard required under the liquidity
regulation, but also the final regulatory standard (100%), with no significant change.
LCR disclosed herein does not differ much from the level we expected beforehand, and we do not expect our Consolidated LCR in
the future to deviate significantly from the current level.
There are no significant changes in the composition, such as currency composition or type composition, and geographic
distribution of the HQLA allowed to be included in the calculation.
In addition, there is no significant currency mismatch which might affect our funding conditions between total amount of the HQLA
allowed to be included in the calculation and net cash outflow regarding significant currencies.

322

Liquidity Coverage Ratio2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Status of Sound Management of Liquidity Risk

■ Status of Major Liquid Assets(Billions of yen)
Item

As of March 31, 2017 As of March 31, 2016

Cash and Due from Banks (including Due from Central Banks)
Trading Securities
Securities
Bonds Held to Maturity
Other Securities
Japanese Stocks
Japanese Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Japanese Corporate Bonds
Other
Foreign Bonds
Other¥47,129.5
4,800.4
31,761.8
3,815.6
27,946.2
3,542.0
13,245.1
10,264.3
284.4
2,696.3
11,159.0
8,955.4
2,203.5

Total¥36,315.4
5,467.9
38,901.0
4,817.5
34,083.5
3,457.6
18,874.4
15,765.8
240.6
2,867.9
11,751.3
9,719.5
2,031.8

83,691.8

80,684.5

Portion pledged as collateral(14,398.5)(17,774.1)

Total after the deduction above¥69,293.3¥62,910.3

Notes: 1. All securities included in the above table have fair value.
2. Portion pledged as collateral mainly consists of securities and others collateralized for borrowed money, foreign and domestic exchange transactions or derivatives
transactions,or substituted for margins for futures transactions.
3. Figures in the above table do not represent high quality liquid assets under the Basel Ⅲ regulatory regime.

■ Status of Major Funding(Billions of yen)
As of March 31, 2017
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥115,871.8
10,421.6
1,255.2
604.6
226.3
1,414.8
4,784.1¥3,334.2
150.6
3,095.1
1,486.1-¥696.760.1
1,542.0
1,331.4
-

¥73.1
338.6
564.0
-

¥60.5
377.8
1,401.0
-

¥9.0
305.0
588.9
-

Total

¥134,578.5¥8,066.0¥3,630.2¥975.8¥1,839.2¥902.97-10 years Over 10 years(Billions of yen)

As of March 31, 2016
Types of Financial Instruments

Within 1 year

1-3 years

3-5 years

5-7 years

Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Borrowed Money
Commercial Paper
Issued Bonds
Due to Trust Account¥101,245.1
11,691.8
2,521.0
1,381.1
648.3
813.5
5,067.4¥3,457.4
76.0
4,279.0
1,914.1-¥778.460.3
934.7
1,079.9
-

¥73.9
206.0
518.4
-

¥74.1
309.4
768.0
-

¥329.0
693.3
-

Total

¥123,368.6¥9,726.6¥2,853.5¥798.5¥1,151.6¥1,022.3

7-10 years Over 10 years

Notes: 1. Regarding Deposits, Demand deposits are included in "Within 1 year"
2. Borrowed money or issued bonds with open ended, 64.0 billion, 334.0 billion, respectively, at March 31, 2016, and 44.0 billion, 779.0 billion, respectively, at March 31, 2017,
are excluded.

323

Liquidity Coverage Ratio2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Compensation of directors, corporate auditors and employees(16) Qualitative disclosure(a) State of the organizational system relating to compensation of "Subject directors, corporate auditors andemployees" of Mizuho group
1. Scope of "Subject directors, corporate auditors and employees""Subject directors, etc." and "Subject employees, etc." subject to disclosure as provided for in the FSA Notice(collectively, "Subject directors, corporate auditors and employees") are as follows:(1) Scope of "Subject directors, etc.""Subject directors, etc." are directors and executive officers as defined in the Companies Act of Mizuho Financial
Group, Inc. ("MHFG"). Outside directors auditors are excluded.
(2) Scope of "Subject employees, etc.""Subject employees, etc." who are subject to disclosure are executive officers (as defined in our internal regulations),
specialist officers and employees of MHFG and directors, corporate auditors and employees of its major
consolidated subsidiaries, who are "persons who receive large amounts of compensation" and "materially affect theoperation of business or the state of assets of Mizuho group or its major consolidated subsidiaries."(a) Scope of "Major consolidated subsidiaries"
A "Major consolidated subsidiary" is a consolidated subsidiary, etc., (i) whose total assets as a percentage ofconsolidated total assets exceeds 2% of a bank holding company or bank and (ii) who materially affects the
management of our group. Specifically, those are Mizuho Bank, Ltd. ("MHBK"), Mizuho Bank (USA) and othersubsidiaries who conduct banking business similar to a branch of MHBK, Mizuho Trust & Banking Co., Ltd.
("MHTB"), Mizuho Securities Co., Ltd. ("MHSC"), Trust & Custody Services Bank, Ltd., Mizuho Securities USA
Inc. and Mizuho International Plc.
(b) Scope of "Persons who receive large amounts of compensation"
A "Person who receives large amounts of compensation" refers to a person who receives compensation thatexceeds the base amount from MHFG or its major consolidated subsidiaries. The base amount at MHFG has
been set at ¥50 million. Such base amount has been set based on the average amounts of the compensation of
directors, executive officers (as defined in the Companies Act) and corporate auditors of MHFG, MHBK and
MHTB for the last three fiscal years (excluding persons who resigned or retired during each of such fiscal years),
taking into account fluctuations in amounts of compensation over past fiscal years. The preceding base amount
has been adopted as the common base in order to unify the selection criteria of persons who receive large
amounts of compensation at each of the companies in this paragraph.
(c) Scope of "Persons who materially affect the operation of business or the state of assets of Mizuho group"
A "Person who materially affects the operation of business or the state of assets of Mizuho group" means aperson who exerts significant influence on the operation of the business of MHFG or a major consolidated
subsidiary through his or her work in conducting transactions or management, or who materially affects the stateof assets by incurring losses on transactions. Specifically, it includes executive officers (as defined in our internal
regulations) and specialist officers of MHFG and directors, corporate auditors, executive officers (as defined in
our internal regulations), specialist officers and market department employees of major consolidated subsidiaries.
2. Decisions on compensation of "Subject directors, corporate auditors and employees"(1) Decisions on compensation of subject directors, etc.
MHFG is a Company with Three Committees, and has established the Compensation Committee as a statutory
committee.
The chairman of the statutory Compensation Committee shall be an outside director, and in principle its members
shall be appointed from among the outside directors (or at least non-executive directors) in order to ensure
objectivity and transparency in director and executive officer compensation. As of March 2017, all four members of
the Compensation Committee, including the chairman, were outside directors. The Compensation Committee shalldetermine the basic policy and compensation system for directors and executive officers of MHFG, MHBK, MHTB
and MHSC, determine the compensation for each individual director and executive officer (as defined in the
Companies Act) of MHFG, and exercise approval rights in MHFG for compensation for each individual director of
MHBK, MHTB and MHSC.
In addition, the president of each of MHBK, MHTB and MHSC determines the amount of compensation for each of
its executive officers and specialist officers.

324

Qualitative disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Compensation of directors, corporate auditors and employees(2) Decisions on compensation of "Subject employees, etc."
Matters relating to executive officers (as defined in our internal regulations) and specialist officers of MHFG anddirectors, executive officers (as defined in our internal regulations) and specialist officers of MHBK, MHTB and
MHSC are as set out in (1) Decisions on compensation of subject directors and corporate auditors.
With regard to the compensation of corporate auditors of MHBK, MHTB and MHSC, it is determined pursuant to
consultation among corporate auditors, including outside corporate auditors, and set within the scope of the total
amount of compensation of corporate auditors resolved at ordinary general meetings of a shareholder.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the major consolidated subsidiaries. Such system is designed and put into writing by thehuman resources departments of MHFG and the major consolidated subsidiaries which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Decisions on compensation of employees in risk management departments, compliance departments and internal audit
departments
The compensation of employees in risk management departments, compliance departments and internal audit
departments is decided in accordance with the salary and bonus system, and specific payment amounts areconclusively determined in accordance with employee performance evaluations made by the relevant department andthe human resources department, independent from departments furthering business. Each employee of the risk
management departments, the compliance departments and the internal audit departments sets their own items forevaluation in the employee performance evaluations, subject to the approval of their superiors. The degree to which theitems are fulfilled is evaluated taking into account the degree of the employee's contribution to risk-management,compliance and internal audit.
4. Total amount of compensation paid to members of the compensation committee and number of meetings held by theCompensation Committee
Number of meetings held
(April 2016 – March 2017)
Compensation Committee(MHFG)

13

Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the execution of duties by thecompensation committee.

(b) Evaluating the appropriateness of the design and operation of the system relating to compensation of subject
directors, corporate auditors, and employees of Mizuho group
1. Policies relating to compensation(1) Policies relating to compensation of subject directors, executive officers and corporate auditors
The "Mizuho Financial Group Compensation Policy" sets out the policy concerning the determination ofcompensation for each individual director, executive officer as defined in the Companies Act, executive officer as
defined in our internal regulations and specialist officer ("Directors, etc.") of MHFG, MHBK, MHTB and MHSC.
a. Purpose of the Policy
Executive compensation for MHFG, MHBK, MHTB and MHSC pursuant to such policy aims to function as incentive
and compensation for each officer to exercise the designated function to the fullest with respect to striving to realize
management with consideration to value creation for various stakeholders and improve corporate value throughcontinuous and stable corporate growth based on our basic management policies under our Corporate Identity.
b. Basic Policy
The basic policy with respect to the determination concerning the individual compensation of Directors, etc., ofMHFG, MHBK, MHTB and MHSC is set forth below:(i) The executive compensation shall be based on the function and responsibility assigned to and the performance ofeach of the Directors, etc.
(ii) The executive compensation shall give consideration to improving corporate value and creating value for various
stakeholders over the medium to long term.

325

Qualitative disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(iii) The executive compensation shall reflect the management environment and business performance of our group.
(iv) The executive compensation shall enable compensation for securing expert personnel such as professionals witha competitive edge in the market.
(v) The compensation system and standards shall be reevaluated based on such factors as the economic and social
conditions and survey data with respect to management compensation provided by external specializedorganizations.
(vi) Regulations and guidelines, etc., concerning executive compensation, both in Japan and overseas, shall becomplied with.
c. Compensation System
I. The compensation system for executive officers as defined in the Companies Act (including executive officers who
are directors), executive officers as defined in our internal regulations and specialist officers of MHFG and directors,
executive officers and specialist officers of MHBK, MHTB and MHSC responsible for business execution ("Officers
Responsible for Business Execution") shall be separate from that for the non-executive directors of MHFG and the
directors of MHBK, MHTB and MHSC responsible for management supervision ("Non-Executive Officers
Responsible for Management Supervision").
II. The basic compensation system for Officers Responsible for Business Execution shall consist of basic salaries in
the form of fixed compensation as well as variable compensation consisting of performance payments andperformance-based stock compensation. The ratio of fixed compensation to variable compensation, the range ofvariable compensation based on business performance and the payment method shall be designated in light ofsound incentivization for sustainable growth and restraint on excessive risk taking, while taking into accountregulations and guidelines as well as research data, etc., both in Japan and overseas, concerning executive
compensation. In principle, the ratio of fixed to variable compensation shall be 6 to 4 and the ratio of performance
payments to performance-based stock compensation shall be 1 to 1, based on which the standard amount shall becalculated for each position. The variable compensation shall reflect each officer’s performance within the range of
0% to 150% of the standard amount for each position. The basic salaries, the performance payments and theperformance-based stock compensation as well as the payment methods, etc., are in principle as set forth below:(i) The basic salaries shall factor in each officer’s function and responsibility in addition to the standard amount foreach position.
(ii) The performance payments shall be monetary made as officers’ incentive to achieve the annual budget and ascompensation for their achievement. The payment thereof shall reflect each officer’s performance in addition to thestandard amount for each position. A system shall be adopted which enables a certain amount of deferredpayments of the performance payments over three years, as well as a decrease or forfeiture of the deferred amount
depending on performance of the company and such officer.
(iii) The performance-based stock compensation shall be paid in the form of shares of common stock of MHFG
acquired from the stock market through a trust with an aim to align officers’ interests with those of the shareholders
and increase the incentive to enhance corporate value. The payment thereof shall reflect each officer’s
performance in addition to the standard amount for each position. A system shall be adopted which enables theentire amount of deferred payments of the performance-based stock compensation over three years, as well as adecrease or forfeiture of the deferred amount depending on performance, etc., of the company and such officer.
(iv) The variable compensation intended for professional personnel, etc., appointed from outside the group shall be
individually designed based on the duties and characteristics of business responsibilities and market values, etc., ofeach officer, a system which enables certain amount or a portion of deferred payments and non-monetary
payments such as stock, as well as a decrease or forfeiture (clawback) of the deferred amount depending on theperformance, etc., of the company and such personnel.
III. The compensation for Non-Executive Officers Responsible for Management Supervision, in principle, shall be in
the form of fixed compensation from the perspective of ensuring the effectiveness of the supervisory function andshall consist of basic salaries and stock compensations.
(i) The basic salaries shall factor in each officer’s function and responsibilities in addition to the standard amount foreach of the full-time and part-time non-executive officers.
(ii) The stock compensation shall be paid to full-time internal directors excluding outside directors in accordance withthe standard amount based on each position. However, the payment standards shall not fluctuate depending oneach director’s level of performance. A system shall be adopted which enables the entire amount of deferredpayments of the stock compensation over three years, as well as a decrease or forfeiture of the deferred amount
depending on performance, etc., of the company.

326

Qualitative disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Compensation of directors, corporate auditors and employees

d. Compensation Determination Process
I. The Compensation Committee shall determine the determination policy of executive compensation for MHFG,MHBK, MHTB and MHSC. In addition, the Compensation Committee shall determine the compensation for eachindividual director and executive officer of MHFG and approve at MHFG the compensation of each individual
director of MHBK, MHTB and MHSC.
II. The President & Executive Officer, pursuant to this policy and regulations and detailed rules, etc., shall determine
the compensation for each executive officer as defined in our internal regulations and specialist officer of MHFG andapprove at MHFG the compensation of each individual executive officer and specialist officer of MHBK, MHTB andMHSC.
III. All members of the Compensation Committee shall be appointed from among outside directors (or at least nonexecutive directors) and the chairman thereof shall be an outside director.
IV. The Compensation Committee, where necessary, may have officers who are not members of the committee(including officers of MHBK, MHTB and MHSC) such as the President & Executive Officer and external experts, etc.,
attend its meetings and request their opinion.
(2) Policies relating to compensation of subject employees, etc.
The policies relating to compensation for executive officers (as defined in our internal regulations) and specialist
officers of MHFG and directors, executive officers (as defined in our internal regulations) and specialist officers of
MHBK, MHTB and MHSC are also the same as the policies described in (1) Policies relating to compensation ofsubject directors and corporate auditors above. The compensation of corporate auditors is determined pursuant to
consultation among corporate auditors, including outside corporate auditors, and set within the scope of the total
amount of compensation of corporate auditors resolved at ordinary general meetings of a shareholder.
Compensation for other employees, etc., is determined in accordance with their duties and responsibilities. Somebonuses that are linked to performance are determined after comprehensively evaluating the employee’s
contribution to business, including any qualitative contributions to the organization, in a manner that does not place
an excessive emphasis on results.
2. The effect of the overall level of compensation, etc., on equity capital
The Compensation Committee of MHFG receives reports on the amount of compensation paid to directors, executive
officers (as defined in the Companies Act), executive officers (as defined in our internal regulations) and specialist
officers of MHFG, MHBK, MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on
the Mizuho group’s performance or the adequacy of equity capital.
(c) Compatibility between system for compensation of subject directors, corporate auditors and employees ofMizuho group and risk management and matters relating to linking compensation with performance
The performance payments and performance-based stock compensation for Officers Responsible for Business Execution
are made or paid based on the standard amount set for each position, with which each officer’s performance shall bereflected, and determined in accord with a performance evaluation, etc., against the annual business plan. A certain
amount of the performance payments and the entire amount of the performance-based stock compensation shall bemade or paid in deferred payments over three years, and a decrease or forfeiture of the deferred amount may be madedepending on the performance, etc., of the company and such officer. It should be noted that certain subject directors,
corporate auditors and employees have entered into compensation-related contracts.
Stock compensation for Non-Executive Officers Responsible for Management Supervision shall be made in accordingwith the standard amount set for each position, and the payment level shall not change based on the performance ofeach officer. The entire amount of the stock compensation shall be paid in deferred payments over three years, and adecrease or forfeiture of the deferred amount may be made depending on the performance, etc., of the company.

327

Qualitative disclosure2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）(17) Quantitative disclosure items(a) Matters relating to types and total amounts of, and payment method for, compensation of subject directors,
corporate auditors, and employees of Mizuho group─Total amount of the compensation, etc., of subject directors, corporate auditors and employees─
(Millions of yen)
For the fiscal year ended March 31, 2017

Total amount of
Number of Total amount of
fixed
persons
compensationcompensation

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas
employees, etc.

StockcompensationBase
Stocktype stockcompensation
options Compensation

Others

23

1,453

953

925

-

26

1

355

30,024

13,33812,019

-

12

1,306

301

26,47911,518

10,213

-

-

1,304

(Millions of yen)
For the fiscal year ended March 31, 2017

Subject directors andcorporate auditors(excluding outside
directors and outside
corporate auditors)
Subject employees, etc.
Overseas employees,
etc.

Total amount ofvariablecompensation

Base
compensation

500

Bonus

Performance
payment

Performancebased stockcompensation

OthersRetirement
benefits

Others

-

-

251

249

-

-

-

15,555-

14,336

816

402

-

-

1,130

13,846-

13,383

422

40

-

-

1,113

Notes: 1. Amounts of compensation of subject directors and corporate auditors include amounts of compensation received for duties performed as a director or corporate auditor of a major consolidated subsidiary.
2. For the number of person, the actual number of persons (a) for the compensation for the fiscal year ended March 31, 2017 and (b) for the compensation for the fiscal year ended March 31, 2016 for thepayments made or anticipated payments for which the amount became clear during the fiscal year ended March 31, 2017 are stated.
3. The stated amount is the total amount for the fiscal year ended March 31, 2017 and the fiscal year ended March 31, 2016.
4.Total amount of fixed compensation includes ¥39 million of deferred compensation that arose during the fiscal year ended March 31, 2017 (subject directors and corporate auditors: ¥26 million; subject
employees, etc.: ¥12 million). The amount of fixed compensation deferred prior to the fiscal year ended March 31, 2017 and paid during the fiscal year ended March 31, 2017 was ¥429 million (subject directors
and corporate auditors: ¥297 million; subject employees, etc: ¥131 million), and the outstanding amount of the deferred fixed compensation as of March 31, 2017 was ¥ 1,323 million (subject directors andcorporate auditors: ¥457 million; subject employees, etc.: ¥866 million).
5. The total amount of variable compensation includes ¥4,405 million of deferred compensation that arose during the fiscal year ended March 31, 2017 (subject directors and corporate auditors: ¥255 million;
subject employees, etc.: ¥4,149 million). The amount of variable compensation deferred prior to the fiscal year ended March 31, 2017 and paid during the fiscal year ended March 31, 2017 was ¥2,552 million(subject employees, etc.: ¥2,552 million), and the outstanding amount of deferred variable compensation as of March 31, 2017 was ¥7,990 million (subject directors and corporate auditors: ¥255 million;
subject employees, etc.: ¥7,735 million).
6. Total amount of compensation for subject employees, etc., includes ¥680 million of allowance for termination and resignation (number of subject persons: 12), multi-year guarantees of bonus of ¥258 million(number of subject persons: 1), signing bonus of ¥265 million (number of subject persons: 5), and housing allowance of ¥17 million (number of subject persons: 8).
7. Regarding performance payment, the recorded amount for the fiscal year ended March 31, 2016 for directors, executive officers (as defined in the Companies Act) and executive officers (as defined in ourinternal regulations) of MHFG, MHBK, MHTB and MHSC is stated. For portions that exceed certain amount, we plan to defer payment over the three-year period from the fiscal year ending March 31, 2018.
8. With respect to stock compensation and performance-based stock compensation, for the directors, executive officers (as defined in the Companies Act) and executive officers (as defined in our internal
regulations) of MHFG, MHBK, MHTB and MHSC, the amount stated is obtained by multiplying the stock ownership points (with one point to be converted into one share of MHFG stock) granted for the fiscal
year ended March 31, 2016 by the book value of MHFG's shares (158.6789 yen per share). For stock compensation and performance-based stock compensation for the fiscal year ended March 31, 2016, weplan to defer payment over the three-year period from the fiscal year ending March 31, 2018.
9. Because the amounts of the stock compensation, performance payment, and performance-based-type stock compensation for the directors, executive officers (as defined in the Companies Act), executive
officers (as defined in our internal regulations) and specialist officers of MHFG, MHBK, MHTB and MHSC for the fiscal year ended March 31, 2017 have not been determined at this time, they are not includedin the above compensation. However, we have recorded the required reserves for accounting purposes.

328

Quantitative disclosure items

2017/09/06 9:42:26 / 17322939_株式会社みずほフィナンシャルグループ_総会その他（Ｃ）

Status of Capital Adequacy

Compensation of directors, corporate auditors and employees

10. The exercise periods for the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option agreements, exercise of the options is postponed, even during theexercise period, until the time of retirement of the director or employee.

First Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Second Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Third Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fourth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fifth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Sixth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Seventh Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.

Exercise Period
from February 17, 2009 to February 16, 2029
from September 28, 2009 to September 25, 2029
from August 27, 2010 to August 26, 2030
from December 9, 2011 to December 8, 2031
from September 3, 2012 to August 31, 2032
from February 18, 2014 to February 17, 2034
from December 2, 2014 to December 1, 2034(b) Other relevant matters relating to our system of compensation for subject directors, corporate auditors andemployees of Mizuho group
Not applicable, other than those covered in the above.

329

Quantitative disclosure items

Website

Information useful to our customers can be found on our websites including company information and introductions ofbusiness operations at group companies. Moreover, information on IR, finance, exchange rates and branch guidance, various
financial products and services, as well as industrial and economic reports are available. Also, you can obtain all news releaseannounced by Mizuho Financial Group with registration for “News Release E-mail Distribution Service.”‌https://www.mizuho-fg.com/

Corporate Responsibility

Investor Relations

Corporate Responsibility

Investor Relations

Gain insights into our approach to CSR.

Access reports, presentations, news, and other investor
resources and get details on upcoming events.

‌‌https://www.mizuho-fg.com/csr/‌‌https://www.mizuho-fg.com/investors/

2017 Integrated Report330

Mizuho Financial Group, Inc.
1-5-5, Otemachi, Chiyoda-ku, Tokyo 100-8176, Japan+81-(0)3-5224-1111
https://www.mizuho-fg.com/