Interim Report(April ~ September 2004)

Mizuho Financial GroupInterim Report
Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)

1

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

2

Entering a New Phase of Our Management Strategies

4

Advanced Financial Services of Mizuho
Business Outline of Mizuho

7

Targeting Businesses through Customer Segmentation

8

Providing Cutting-Edge Solutions
Targeting SMEs and Middle-Market Corporations
Approaches to Individual Customers

Business Results Highlights of Mizuho

Community Activities and Environmental Awareness17
18

Financial Analysis of Mizuho
Results for the Six Months ended September 30, 2004

19

Status of Asset Quality

31

Consolidated Financial Statements of Mizuho Financial Group, Inc.

38

Office Network of Mizuho

43

Investor Information on Mizuho Financial Group, Inc.

45

Contact Information

47

Financial Highlights of Mizuho Financial Group, Inc. (Consolidated)

For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004

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

1,675,631
1,246,550
429,080
233,941—

Millions of yen
March 31, 2004¥

3,342,957
2,461,716
881,240
406,982
77,748September 30, 2003¥

1,867,688
1,290,594
577,093
255,397—

Thousands of U.S. dollars
September 30, 2004$

15,088,979
11,225,128
3,863,851
2,106,633—*Non-consolidated basis.

At September 30, 2004 and 2003, and March 31, 2004

Total Assets
Securities
Loans and Bills Discounted
Deposits
Total Shareholders' Equity

For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Per Share of Common StockNet Income
Cash Dividends per Share*
Common Stock
Preferred StockFirst Series Class I Preferred Stock
Second Series Class II Preferred Stock
Third Series Class III Preferred Stock
Fourth Series Class IV Preferred Stock
Sixth Series Class VI Preferred Stock
Seventh Series Class VII Preferred Stock
Eighth Series Class VIII Preferred Stock
Ninth Series Class IX Preferred Stock
Tenth Series Class X Preferred Stock
Eleventh Series Class XI Preferred Stock
Twelfth Series Class XI Preferred StockThirteenth Series Class XIII Preferred Stock

September 30, 2004

Millions of yen
March 31, 2004

September 30, 2003

Thousands of U.S. dollars
September 30, 2004

¥ 139,327,169
33,267,393
64,296,977
76,049,315¥ 3,537,597¥ 137,750,091
32,071,624
66,205,868
77,487,475¥ 3,644,396¥ 135,484,694
27,156,529
67,990,151
74,329,790¥ 3,274,737$ 1,254,634,577
299,571,305
578,991,239
684,820,493$
31,855,895

September 30, 2004

Yen
March 31, 2004

September 30, 2003

U.S. dollars
September 30, 2004¥

21,706.23¥

36,153.27¥

26,320.47$

195.46

—

3,000

—

—

/
—
—
—
—
—
—
—
—
—
—
—

22,5008,200
14,00047,60042,00011,0008,000
17,5005,380
20,0002,500
30,000

—
—
—
—
—
—
—
—
—
—
—
—

/
—
—
—
—
—
—
—
—
—
—
—

At September 30, 2004 and 2003, and March 31, 2004

September 30, 2004

March 31, 2004

September 30, 2003

Capital Adequacy Ratio
Risk-based Capital Ratio (BIS Capital Ratio)

11.86%

11.35%

10.63%*Non-consolidated basis.

Ratings
At December 31, 2004

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

R&I
Long–Term Short–Term

A–
A–
A–
A–
A–
A–

a—1
a—1
a—1
a—1
a—1
a—1

JCR
Long–Term Short–Term

—
—
A+
A+
A+

—
—
—
—
J–1
—

A

Moody's
Long–Term Short–Term

—
—
A1
A1
A1*
A1

—
—
P—1
P—1
P—1*
P—1

Standard & Poor's
Long–Term Short–Term

—
—
A–
A–
—
A–

*Credit ratings for EMTN programme (Joint Medium–term Note Programme with Mizuho International, based on keepwell agreement with Mizuho Corporate Bank)

1

—
—
A—1
A—1
—
A—1

Fitch
Long–Term Short–Term

—
—
A–
A–
—
A–

—
—
F1
F1
—
F1

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

Succeeded in Building the Foundation for a Sustainable Profit Base andEntered a New Phase in Our Management Strategies

Beginning with the realignments in the group's corporate structure in fiscal 2002, wemoved forward with a series of management reforms in rapid succession. These haveincluded major steps to deal with drastic financial actions and capital raising of more than
¥1 trillion yen. In fiscal 2003, as a result of initiatives to substantially enhance our financial
condition, we were successful in establishing a solid base for generating sustainable positive Net Income. Now, starting in the current fiscal year, we have entered a new phase in
our management strategies. We intend to move toward enhancing our top-line growth
promptly and steadily through initiatives aimed at sharpening the strategic focus of thegroup companies according to their customer segmentations and business lines. In parallelwith these initiatives, we are also working to strengthen group synergies.
Moreover, to reduce costs, we intend to complete restructuring measures reaching into
every part of our activities that will bring down total General & Administrative Expenses
on an aggregated basis of Mizuho Corporate Bank, Mizuho Bank, and their financial subsidiaries for corporate revitalization to approximately ¥700 billion by 2006. These measures include not only the consolidation and closure of branches and measures tostreamline our human resources but also further reductions in IT-related costs following
the completion of Mizuho Bank's IT systems integration.

2

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

Our initiatives to improve our financial condition are already showing impressive results.
We reached our goal of reducing our non-performing loans (NPLs) by half six months
ahead of schedule mainly due to the progress in our Corporate Revitalization Project. We
further intend to press forward with measures to lower our NPL balance, while also minimizing risks related to our stockholdings.

Surpassing Interim Net Income Estimate and Working to Repay Public
Funds as Quickly as Possible
Along with these developments, we reported consolidated Net Income of ¥233.9 billion
for the first half of fiscal 2004, well exceeding our original estimate announced at the
beginning of the fiscal year. This reflects our success in establishing a solid profit base byresolving financial issues. We are planning to pay an annual dividend of ¥3,500 per shareof common stock for the current fiscal year, which will represent an increase of ¥500 overthe previous fiscal year. We intend to make dividend payments on preferred stocks as prescribed.
Another important milestone was the repayment of public funds (including the commencement of repurchasing preferred stocks) during the current fiscal year, reflecting thesteady improvement in our financial condition. In August 2004, we repurchased and cancelled preferred stocks amounting to ¥232.7 billion on an issued amount basis. Then, in
September 2004, we redeemed subordinated bonds of public funds amounting to ¥225.0
billion. Together, our repurchase of preferred stocks and redemption of subordinatedbonds completed by September 30, 2004, accounted for approximately 40% of the original amounts of public funds. Even following these repayments of public funds, however,
our consolidated BIS Capital Adequacy Ratio remained at the sufficient level of 11.86%.
We will work to continue to make early repayments of public funds through recording
stable profits while giving due regard to the soundness of our financial position including
our capital ratio.

We have positioned the current fiscal year as “a year of proving the true value ofMizuho.” To this end, we have entered a new phase in our management strategies. We
will unite the strengths of the group companies, and do our utmost to make significant
improvements in our profitability. As we move forward with these initiatives, we look forward to the continuing support of our shareholders.
January 2005

Terunobu Maeda
President & CEO
Mizuho Financial Group, Inc.
3

Entering a New Phase of Our Management Strategies

The Mizuho Financial Group has established a solidinterim Net Income of ¥233.9 billion, substantiallybase to generate sustainable positive Net Income byexceeding our original estimate. At the same time, wemaking steady improvement in its financial condition,

have entered a new phase in our management strate-

including, in particular, significant reductions in NPLs.

gies and are taking initiatives to achieve a substantial

On a consolidated basis, the group reported

improvement in profitability.

Repayment of Public Funds

Our objective is to continue to make early repayment of
the remaining public funds while sustaining and improving

Reflecting the steady improvement in our financial con-our capital base through continuously recording stable prof-

dition, we have commenced repurchase of preferredits. With respect to the remaining ¥100.0 billion in subordi-

stocks of public funds.

nated bonds of public funds, we plan to redeem them by the

In August 2004, we repurchased and cancelled preferred

end of this fiscal year. (In accord with our Businessstocks amounting to ¥232.7 billion on an issued amount

Revitalization Plan, we intend to make these repayments

basis. In addition, in September 2004 we redeemed ¥225.0

after consultation with the related government authorities.)

billion in subordinated bonds of public funds. As of
September 30, 2004, we had repaid approximately 40% of

GlossaryRepurchase and Cancellation of Stocks

the original amounts of public funds.

Corporations repurchase previously issued preferred and otherstocks at market value and cancel them by using profits and othersources of funding. These stock buybacks reduce the number ofoutstanding stocks and have received attention as a way of
demonstrating the commitment of corporations to improve capitalefficiency and enhance shareholder value.

Even following these repayments, our consolidated BIS
Capital Adequacy Ratio stood at a sufficient level of 11.86%
reflecting our recorded consolidated Net Income of ¥233.9
billion for the interim period.

Repayment of Public Funds (the Three Banks)(billions of yen)
3,000

subordinated
bonds

2,500

repaid approx.
40%

2,000
1,500

preferredstocks

1,000
500
0

Public Funds

Original amountMarch 2004

September 2004 March 2005 (Plan)¥2,949.0 bn.

¥2,274.0 bn.

¥1,816.2 bn.

4¥1,716.2 bn.

Entering a New Phase of Our Management Strategies

Termination of NPL Issues¥45.0 billion for fiscal 2004, representing a decline of ¥190.0
billion from our original estimate.

We reached our goal of reducing our NPLs by half

On the other hand, to deal with possible future credit risks,

six months ahead of schedule.

we are maintaining our loan loss reserve ratio at a high level.

We implemented measures faster than originally planned toreduce the balance of Disclosed Claims under the Financial

Other Measures to Improve Financial
Condition

Reconstruction Law (FRL) for the Three Banks. As a consequence, the balance of NPLs as of September 30, 2004,
decreased by approximately ¥1 trillion from the end of March

The Three Banks reduced their stockholdings by approximately

2004 to ¥2,224.7 billion. This substantial progress in resolving¥350 billion during the interim period. As a result, stocks (other

NPL issues was mainly due to two factors: proactive measures

securities available for sale) amounted to ¥3,111.5 billion at an

to promote the revitalization of corporate customers throughacquisition cost basis. To minimize interest rate risks, we took

our Corporate Revitalization Project and a smaller volume of

measures to shorten the average remaining periods of our JGB

loans newly classified as NPLs than estimated.

portfolio, principally for medium- and long-term bonds, andFollowing this decline in NPLs, our NPL ratio to total claims

increased the percentage of the portfolio covered by hedging

declined to 3.1% at the end of the interim period. As a result,

instruments. In our portfolio of other securities in total, we con-

we reached our objective of reducing NPLs by half six months

tinued to show substantial unrealized gains of ¥629.9 billion forahead of schedule, and we were able to report the lowest NPL

the interim period.
Net deferred tax assets (DTA) on a consolidated basis

ratios among Japan's Mega Banks. We expect to further reduce
NPLs to mid-¥1 trillion and to lower our NPL ratio to the lower

decreased by ¥124.5 billion from March 31, 2004 to ¥1,208.4

2% range by the end of this fiscal year.

billion at the end of the interim period, as a result of the reporting of taxable income. The ratio of net DTA to Tier I capitaldeclined to 29.8% at the end of the interim period.

Drastic improvement in Credit-related Costs and a net

In addition, we adopted new accounting rules for impair-gain on reversal of reserves of ¥33.5 billion.
Credit-related Costs were well below our initial estimate andment of fixed assets from the interim period, ahead of theshowed a net gain on reversal of ¥33.5 billion. This improve-required schedule. As a result, the Three Banks reported

ment was mainly due to steady progress in corporate revitaliza-

Extraordinary Losses on impairment of fixed assets of ¥41.3 bil-tion and recovery in performance among our corporate

lion.

customers. We are currently estimating Credit-related Costs ofComparison among Japanese Mega Banks

Reduction of Disclosed Claims (FRL) (the Three Banks)(trillions of yen)

The Mizuho
Financial Group(the Three Banks)

SMFG

MTFG

UFJ

NPL Balance (FRL)¥ 2.2 tn.

¥ 2.4 tn.

¥ 1.6 tn.

¥ 4.1 tn.

6

Claims for5
SpecialAttention
4

3

Claims with
Collection
Risk
2

original plan

Claims against
Bankrupt and
1 Substantially
Bankrupt
Obligors

0

NPL balance
NPL ratio

NPL Ratio

3.14%

4.4%

3.28%

9.42%

Reserve Ratio to Claims
against Special
Attention Obligors*1

42.2%

38.7%

32.31%

52.32%

Credit-related Costs¥ (33) bn.

¥ 455 bn.

¥ 50 bn.

¥ 614 bn.*2(Source) Company Disclosures*1:Reserves against uncovered portion*2:Including collection of written-off claims

September 2002

March 2003

March 2004

September 2004 March 2005 (Plan)¥ 5,424.9 bn. ¥ 4,785.9 bn. ¥ 3,191.0 bn. ¥ 2,224.7 bn.
6.4%

6.2%

4.4%

3.1%

¥ mid-1tn.
Lower 2% range

Reached our goal of reducing NPLs
by half six months ahead of schedule5Entering a New Phase of Our Management Strategies

Aiming for Top-Line Growth

Glossary
Asset Impairment Accounting

To expand our revenues, we plan to fully utilize our enormous

When the value of fixed assets held by corporations––including land,buildings, and machinery––declines markedly, principles of asset
impairment accounting require companies to recognize these losses intheir accounts. Beginning in fiscal 2005, all companies in Japan will be
required to adopt asset impairment accounting principles.

domestic customer base, which is the largest among Japanesebanks. We will focus especially on (1) realizing the greatest possible synergies within the group by encouraging cooperation
among group companies, (2) creating new profitable business
opportunities, including enhancement of loan trading business

Progress in Cost-Cutting Efforts

aimed at expanding our syndication business, and (3) flexible
Under our Business Revitalization Plan, the Two Banks set a goal

formation and utilization of business alliances with companiesof reducing General & Administrative Expenses by ¥190.0 bil-in other fields, including credit card, installment shopping credit

lion between fiscal 2002 and fiscal 2006. During fiscal 2003

and securities companies.

alone, General & Administrative Expenses were cut by ¥105.4
billion, and, during the interim period, further reductions
amounting to ¥16.0 billion were implemented compared withthe same period of the previous year. In addition, we are taking
steps to enhance efficiency and reduce the number of employees to 24,000 by the end of fiscal 2004.
Mizuho Bank began a step-by-step integration of its IT sys-

*Figures are described as follows:
The Three Banks: Mizuho Corporate Bank + Mizuho Bank +Mizuho Trust & Banking + their financial subsidiaries for corporate
revitalization (non-consolidated).
The Two Banks: Mizuho Corporate Bank + Mizuho Bank + theirfinancial subsidiaries for corporate revitalization (non-consolidated).
The Holding Companies + the Two Banks: Mizuho Financial Group +Mizuho Holdings + the Two Banks (non-consolidated).

tems in July 2004, and we are pleased to report that this was
fully completed in December 2004. We believe this integration
will enable us to make steady progress toward cost reductions
by improving operating efficiency and lowering maintenancecosts.

Reduction of G&A Expenses (the Two Banks)

Progress in Restructuring Efforts(billions of yen)
900

(The Holding Companies + the Two Banks)(190) bn.

800

March 2003
27,900March 2004
26,575September 2004
25,747

562

440

429

49

41

41

600

Employees
Domestic branches
Overseas branches and subsidiaries

400

Note: Based on the Business Revitalization Plan. With respect to the number of domestic branches,
if several branches had been located at one site as a part of the group's branch-in-branch
program, those branches are counted as a single office.

0

G&A Expenses

First half
results
Fiscal 2002
(Actual)Fiscal 2003
(Actual)Fiscal 2004
(Estimate)

891.9 bn.

786.4 bn.

(First half results
385.0 bn.)

770.0 bn.

Fiscal 2006
(the Business
Revitalization Plan)

705.6 bn.

6

Advanced Financial Services of Mizuho
Business Outline of Mizuho
The Mizuho Financial Group precisely and swiftly provides products,
services and business solutions to meet the diversified financial needs of our customers
by actively pursuing group synergies.

Adopting an Asset Turnover-BasedBusiness Model

MizuhoSecurities (MHSC)

Securities
Business

Depth in Providing Solutions

Mizuho's Strong Presence in China

ProvidingCutting-Edge
Solutions

Approach to Securities
and Investment Banking BusinessBusiness Alliance with Nikko Cordial
Corporation and Nikko Cordial Securities
Using Alliances to Strengthen
MHSC's Operational Base

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

A wholesale securities
company whose customers
are institutional investors,
corporations, financial
institutions and public
corporations.

MizuhoInvestors
Securities(MHIS)A securities company
that focuses on serving
the group's customers.

MizuhoTrust & Custody
Trust and
Trust & Banking Services Bank
Asset
(MHTB)(TCSB)
trust bank
Management A full-linethat possesses
A highly specialized
strengths
in
both
the
Businesstrust bank focusing on
corporate andindividual markets.

Approach to Trust Businessthe custody business.

ShinkoSecurities
A comprehensive
securities company that
focuses on the middle
and retail markets.

DefinedContribution
Plan Services(DCPS)
An entity that specializes
in managing defined
contribution pension plans.

Dai-IchiKangyo AssetManagement
(DKA)

Fuji
Investment
Management(FIMCO)DLIBJ AssetManagement(DIAM)An assetmanagement company.

An assetmanagement company.

An assetmanagement company.

MizuhoAdvisory

MizuhoCorporate

MizuhoGlobalMizuhoProject

MizuhoAsset

An advisory company
with state-of-the-art
know-how concerning
corporate
revitalization.

A financial subsidiaryfor corporate
revitalization.

A financial subsidiaryfor corporate
revitalization.

A financial subsidiaryfor corporate
revitalization.

A financial subsidiaryfor corporate
revitalization.

MizuhoResearch
InstituteMizuhoInformation &Research Institute(MHIR)

MizuhoCapitalMizuhoFactors

A think tank.

An IT-relatedcompany.

A principal
venture capitalcompany.

A factoring company.

Expanding Middle-Risk Lending

Targeting SMEs andMiddle-Market
Corporations

Corporate
Revitalization
Business

Expanding the Mizuho Business
Financial Center Network
Becoming the Top Bank in Providing Solutionsfor SMEs and Middle Market Corporations

Mizuho Bank(MHBK)

Alliance with Orient Corporation

New “Mizuho Mileage Club”
Membership Service Launched

MHBK serves primarily individuals,
SMEs, and middle market
corporations, and local governments
in Japan.

Other
Businesses

UC Card
A leader among
credit cardcompanies in Japan.

Alliance with Credit Saison

Approaches
to Individual
Customers

Overseas
Subsidiaries

Aiming for No. 1 in Consulting Services

Banking Subsidiaries
Derivatives Subsidiaries
Securities Subsidiaries
Trust Banking
Subsidiaries
Asset Management
Subsidiaries

Reinforcing the Personal Loan Business*Note: DKB Information Systems, Fuji Research Institute Corporation and IBJ Systems
were merged to create Mizuho Information & Research Institute on October 1, 2004.

7

Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Providing Cutting-Edge Solutions
We utilize our group's financial services capabilities to provide corporate customers with cutting-edge solutions.
MHCB, for example, engages in a wide range of financial services on a continuous, multifaceted basis by mobilizing the entire line-up of banking, securities and trust products offeredby the group, while adopting a business model based on asset turnover.
MHSC operates as a wholesale securities firm and has established a top-class position in thebond and equity businesses, M&A and other areas of the financial advisory business, andstructured finance. It offers high quality products and services to satisfy customers' needs at
all times.
As the need for trust services increases, MHTB is a full-line trust bank that utilizes its sophisticated expertise to provide trust services to group and non-group companies, and is especiallystrong in areas like the real estate business and asset backed finance.

Adopting an Asset Turnover-Based Business
Model

Sophisticating Portfolio Management

Syndication Business Grows in Sophistication

its portfolio management, recognizing it as one of the

MHCB is playing a leading role in the rapid expansion of

MHCB is making efforts to enhance the sophistication ofimportant pillars of its asset turnover-based businessmodel alongside its syndication business. Specifically, it isJapan's syndicated loan market, providing high valueadded by making active use of the syndication function

working to correct distortions and improve risk-returns
on its overall portfolio by establishing a specialist portfo-

to meet all aspects of corporate financial needs.
Examples include cross-border syndicated loan deals
timed to take advantage of revisions in the US-Japan Tax
Treaty, large-scale LBO transactions and financial solu-

lio management division within its Financial Control &Accounting Group, and engaging in investment and risk
hedging operations in the credit market.

tions for total debt restructuring. MHCB is committed toa proactive involvement in the syndication business in

Depth in Providing Solutions

order to satisfy the needs of both corporate customers

As part of its continuing evolution, MHCB seeks toand financial institutions.

respond speedily and appropriately to the financial andIn order to take the “originate to distribute” business

management needs of large companies that are rapidly

model (i.e., asset turnover-based business model) for-adapting to changes in the business environment. In theward, MHCB set up the Loan Trading Division in Octobersolutions business, it provides optimal solutions designed

2004 to reinforce its existing specialist team, which is

to contribute to higher corporate value for customers. To

responsible for market-making and broking of loan

this end, it is working closely to mobilize all the banking,assets. It is proactively acquiring loan ratings to increase

securities and trust product lines offered by other groupthe liquidity of loan assets, and developing loan products

companies, including M&As, syndicated loans and cashthat are similar in nature to corporate bonds.

management services. In this way, it is striving to add
speed and depth to its “Deal after Deal” marketing
approach, which offers the widest range of financial services on a continuous, multi-faceted basis.

8

Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Another issue is that in order for Japan's domestic
economy to stage a full-scale recovery, financial institutions must enhance their risk-taking capabilities andrebuild their risk intermediation functions. To respond to
customers' business and project needs, MHCB is putting
considerable effort into upgrading its lending business by
setting up new schemes through breaking down andApproach to Securities and Investment
Banking Business
Strengthening the Equity BusinessBank securities subsidiaries were forbidden to engage inthe equity business until the ban was lifted in October
1999. Since then, MHSC has streamlined and strengthened its full line-up of equity-related services.

processing the risks involved.

In the area of sales and trading operations, it is reinforcing its team of analysts in the research division andMizuho's Strong Presence in China

extending the range of stocks they cover. In cooperation

MHCB is working to upgrade its financial services relatedwith overseas securities subsidiaries in London, New Yorkto business in China, where many customers are actively

and Hong Kong, as well as domestic sales, MHSC isdeveloping their businesses. It has initiated factoring ser-steadily expanding its global institutional investor busi-

vices for the sales receivables held by customers with aness in such areas as basket transactions and block trans-

view to reducing local sales receivables collection risk. In

actions. In the process, it is steadily increasing its

the market-related business, MHCB was the first foreign

presence in terms of broker rankings and share ofbank to obtain approval to engage in the derivatives busi-

turnover on the Tokyo Stock Exchange.
Backed by a highly experienced staff, superior financial

ness in China in June 2004.
In the area of business cooperation agreements withtechnology and enormous selling power at home andChina's regional governments and similar organizations,overseas, it is steadily improving its performance in theit became the first Japanese bank to conclude agreements with the investment promotion bureaus of
Shanghai and Beijing in October 2004. The objectives ofthese agreements are to promote Chinese companies
from the two cities investing in Japan, as well as to support Japanese companies investing in China.

Business Alliance with Nikko Cordial
Corporation and Nikko Cordial Securities
In December 2004, MHCB, MHSC, Nikko Cordial

Business cooperation agreements
entered with regional governments:

Corporation and Nikko Cordial Securities announced thatthey reached an agreement for the purpose of cooperat-

Shanghai Waigaoqiao Free Trade Zone: Sept. '02
Dalian City: Feb. '03
Wuxi City: Mar. '03
Nantong City: Aug. '03
Qingdao City: Oct. '03
Guangzhou Municipal Board for International Investment: Oct. '03
Shanghai Songjiang Industrial Zone: Oct. '03
Wuhan City: Apr. '04
Beijing Investment Promotion Bureau,
Shanghai Foreign Economic Relation & Trade Commission: Oct. '04

ing to complement each other's business by utilizing eachother's business know-how and customer base.
MHSC and Nikko Cordial Securities will commence
discussions on details of a business alliance in the areasthat promise to benefit both parties, in addition to theirbusiness activities, through the mutual utilization of theircorporate customer base.
MHCB agrees to acquire up to 94 million shares(4.92%) of Nikko Cordial Corporation's treasury stock.
MHCB, the parent company of MHSC, plans to acquire
the shares on January 31, 2005 on condition that therelated parties officially enter into the contract for forming a business alliance.

9Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

underwriting business by putting forward proposals for

Approach to Principal Finance Businessdealing with customers' varied needs in areas such as

MHSC has adopted a proactive approach to its principal

IPOs, public and other stock offerings, and convertible

finance operations as part of its efforts to diversify its

bond-type corporate bonds with stock purchase war-

earnings from the investment banking business.

rants. It will continue working to win large lead manager

In April 2004, it centralized the planning functions ofdeals by further strengthening its sales organization

its principal finance and funding operations under thethrough proactive efforts to recruit external personnel

newly established Principal Finance Strategies Office inresources.

order to draw up proposals for the promotion of private
equity and other investment operations. In September

MHSC's Share of Turnover on the Tokyo Stock Exchange(billions of yen)
1,600

(%)
4

1,400
Turnover amounts (session, per day)
1,200

3.3%

equity fund management company in a joint venturewith DLIBJ Asset Management (DIAM).
By strengthening its principal finance business, it will

3

MHSC's share (market)

2004, it established Polaris Principal Finance as a private

endeavor to secure more business opportunities centered

1,000
2

800

the fund's investment targets.

600
1

400

Fund operating companies
in which MHSC is investing:2000

on IPOs, M&As and other equity business associated with0
1st Halfof FY'02

2nd Halfof FY'02

1st Halfof FY'03

2nd Halfof FY'03

1st Halfof FY'04

Mobile Internet Capital
Japan Industrial Partners
Polaris Principal Finance
Basic Capital Management
Max Investment Advisory

Using Alliances to Strengthen MHSC's
Operational Basetion agreements for the entrustment of equities sales

MHSC participates in alliances designed to strengthen its

with Monex Securities, Nikko Beans Securities and Monex

business promotion base and selling power, and expand

Beans Holdings (MBH). This alliance enabled MHSC to

its operations as a wholesale securities firm.

broaden its equity-related business base by expanding its

In August 2004, MHSC concluded business coopera-

Once it completed the transfer of the entire businesssales channels, centered on IPO-related lead manager

operations of Norinchukin Securities in March 2004, it

transactions, to retail customers who utilize the MBH

was able to provide financial institutions connected withGroup's on-line trading system, one of the best in Japan.

agricultural cooperatives throughout Japan with a wide

Further, MHSC concluded a business alliance withrange of investment products, including investment trusts

Resona Bank in connection with M&A in March 2004,

and bonds. As the benefits of this operational transfer

and built a cooperative arrangement in cross-borderdeveloped and expanded, MHSC accepted capital from

M&A activities between Japanese and European firms

The Norinchukin Bank in September 2004 with a view towith UBS Securities Japan in May 2004. In this way, it isexpanding its ties with the Bank and financial institutions

further strengthening its already first-class presence inconnected with agricultural cooperatives while further

the M&A business by making use of both its businessstrengthening its own business base and profitability.

allies' and our group's customer bases to create new
business chances.

10Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Approach to Trust Business

Fully utilizing its real estate trust and intermediation

Expanding the Trust Market

know-how, MHTB is engaged in a wide range of securiti-

The business environment is changing substantially as azation deals involving office buildings and commercial

result of changes in the legal system and reforms of the

facilities. At the same time, it is proactively engaged inaccounting system. This increases the number of oppor-

real estate development methods that utilize securitiza-

tunities to provide solutions that use trust functions totion mechanisms. Because of the entrusted amounts andcope with the planned mandatory application of impair-

the wide variety of the entrusted assets, MHTB's capabili-ment accounting, or revisions to corporate pension

ties and performance in arranging real estate securitiza-

schemes arising from the introduction of the accounting

tion deals have earned high marks among ratings

standard for retirement benefits.

agencies and foreign investors.

Furthermore, revisions to the Trust Business Law have

It will put forward sophisticated, practical proposals

abolished restrictions that used to limit the number ofthat will satisfy all real estate needs by making the mostassets that can be placed in trust to six, including moneyof the overall strengths generated by combining its

and land. As a result, it is now possible to entrust intellec-

arrangement capabilities and financial functions.

tual property rights such as patents and copyrights. The
market is expected to grow further for two reasons. For

Approach to Asset Backed Finance

all practical purposes, only financial institutions were

MHTB makes full use of its trust functions in developing

originally allowed to participate in the trust business, but

stable asset financing schemes (securitization of mone-it has now been opened up to general business corpora-tary claims, etc.) on an order-made basis, and proposes

tions as well. Also, the trust mechanism has come into

them to its customers. Utilizing the high-level structuring

more general use as the scope of adopting franchise sys-

capabilities it has built up on the basis of its performancetem for trust business has expanded.

as the institution with the highest share of entrustments

MHTB sees expansion of the trust market as a newin the trust business, MHTB proposes various solutions tobusiness opportunity and will provide customers withcustomer needs for fund procurement, cutbacks in assets

sophisticated trust solutions.

and liabilities, and better financial indices. At the sametime, it provides investors with new investment instru-

Approach to Real Estate Securitization

ments in the form of asset securitization products. In

In recent years, real estate securitization has come into

particular, the “Noteless” lump-sum accounts payable

increasingly active use. Contributing factors include thetrust scheme supporting fund procurement for SMEs had

growing need to make more efficient use of assets, theachieved results in excess of ¥800 billion as of the end ofdiversification of fund investment and procurement

September 2004.
MHTB is proactively developing new products to sat-needs, and the overhaul of strategies relating to realestate holdings, especially among companies contemplat-

isfy the growing variety and sophistication of customer

ing the introduction of impairment accounting.

needs, such as fund procurement and administration,
which use copyrights and other intellectual property
rights. These include funding schemes that exploit musical copyrights, and Japan's first ever software copyright
trust.

11

Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Targeting SMEs and Middle-Market Corporations
To respond to the demands of SMEs and middle-market corporations for stable lending
responses and answers to management problems, MHBK is making the most of the high-levelsof expertise in each group company in proactive efforts to increase lending and enhance thesolutions business.

It plans to increase the number of locations offering

Expanding Middle-Risk Lending
MHBK's lending strategy is in the midst of switching

this service to 100 by fiscal 2005, up from 14 at the end

away from a focus on low-risk loans towards an increaseof September 2004. Deploying some 600 staff within middle-risk loans (loans offering high returns after

expertise in the lending business, it will establish an orga-

adjusting for risk).

nization to promote sales of loan products including

It is greatly increasing the number of existing cus-

“Mizuho Advance Partner,” an unsecured loan that uses

tomers to whom it proactively offers loans centered on

an automatic credit-scoring model. The plan aims to offer

the middle-risk segments. In addition to expanding its

customers even greater convenience by introducing elec-

share of the loan market, it has mobilized more staff who

tronic finance to allow customers to use the Internet for

specialize in new loans, and is striving to increase its newcompleting the procedures necessary for borrowing.

lending to middle-risk customers whom it considers to belaunched its new ¥1 trillion “Super Wide” strategic loan

Becoming the Top Bank in Providing
Solutions for SMEs and Middle Market
Corporations

fund in October 2004. Standardizing screening proce-

Promoting Solutions Sales

dures that focus on customer cash flow have made it

Working as the Mizuho Business Supply Chain, a team ofpossible to make speedy decisions on extending up to

approximately 300 professionals from MHBK's Corporate¥500 million in unsecured loans for a maximum of five

Banking Group is working together with the branches toyears.

provide solutions that make the most of the bank's

its main target.
In order to strengthen its loan product line-up, it

MHBK has adopted a proactive approach to meetingcustomers' funding demands by offering the “Partner

expertise as a bank specializing in transactions with SMEs
and middle market corporations.

Series” of unsecured loan products, and fund procure-The solutions offered are very diverse, ranging fromment schemes for SMEs as a means of satisfying the var-deals in areas like structured finance and syndicated loans

ied needs of companies of all sizes.

to solutions associated with business strategies such as
M&As and MBOs, business matching services, and con-

Expanding the Mizuho Business Financial
Center Network

sulting services for hospitals.

MHBK has concentrated its overall lending operations foreach sector have established a system for providing cus-small-scale companies in the hands of Mizuho Businesstomers with appropriate responses to a wide range ofFinancial Center, a subsidiary specializing in lending, andmanagement issues. The excellent reputation they haveis fully engaged in extending loans to small-scale busi-

earned in providing solutions is promoting an increase innesses.

lending.

12

By working organically together, specialist teams inAdvanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Mobilizing Group Strengths
In the new business market, MHBK's know-how is far
superior to that of other banks, and it proactively provides financing for customers possessing core technologies with promising business potential, even if they arerecently established venture firms, through copyright
trust schemes and loans with stock purchase warrants. It
also responds to customers' IPO needs through multifaceted collaboration with Mizuho Capital, which serves
as a venture capital investor and provides advice on going
public, MHIS, which provides broad-based support as asecurities company, and MHTB, which provides advisoryand stock transfer agency services.
For customers expanding their business overseas,
MHBK provides support for local projects through thegroup's overseas network, which is one of the mostextensive among Japanese banks.

This was realized by the two breakthrough products

Alliance with Orient Corporation
In July 2004, MHBK agreed on a business alliance withthat manage risks by the whole product portfolio.

the Orient Corporation (Orico), a major credit sales com-

“Mizuho Long Partner” provides unsecured working cap-pany. The main aims of the tie-up are to strengthen

ital for up to seven years, while “Mizuho Rising Partner”

financing functions for SMEs and middle-market corpora-provides loans to smaller companies with growth poten-

tions, and to increase good quality personal loans to indi-tial. Of these, “Mizuho Long Partner” responds to theviduals.

needs of companies aiming for stock market listings. So
long as they meet certain criteria, they can obtain financewithout guarantees from a representative director.

Launching New Loan Products for SMEs
MHBK is making use of the credit enhancement offered

MHBK intends to respond speedily to the financing

by Orico and the debt servicer know-how offered byneeds of a wide range of corporate customers by devel-

Japan Collection Service, a company of the Orico group,

oping more unsecured loan products in cooperation withto sell a number of loan products to SME customers. On

Orico.

an execution basis, it has already extended loans inexcess of ¥200 billion.

13

Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Approaches to Individual Customers
MHBK aims to make the most of its powerful customer base to greatly reinforce its profits
from the individual customer sector by deepening and expanding its transactions with customers, and encouraging them to consolidate their transactions with Mizuho as their mainbank. At the same time, we are working to realize a high-profit, high-efficiency businessmodel by strengthening our sales of investment management products and increasing our
personal loans.
Through cooperation between our various group companies, we are providing high quality
financial services to meet the diversifying needs of our customers.

New “Mizuho Mileage Club” Membership
Service Launched

Aiming for No. 1 in Consulting Services

MHBK launched its new “Mizuho Mileage Club” mem-

vices to ensure that it becomes the customer's bank ofbership service for individual customers in August 2004

choice as a lifetime advisor at various stages of their lives.

and already a great number of people have joined.

MHBK is striving to become the leader in consulting ser-

It will respond to customers' increasingly sophisticatedMizuho Mileage Club customers are generally issued

needs by training and deploying 2,000 financial consul-

cash cards equipped with credit card functions. There aretants specializing in business promotion for individual

no annual membership fees charged to customers. Points

customers, who can respond to all kinds of consulting

accumulate according to usage of the credit card as wellneeds of customers by fiscal 2005. At the same time it

as bank products and services. They can be used towill fortify in-branch service capabilities and improve its

obtain preferential interest rates and bank charges on

infrastructure.

loans and deposits, and can be exchanged for Takarakuji

In addition, it will establish “Premium Salons” atlottery tickets. Customers can therefore enjoy various

almost every branch as a new type of consultation spacekinds of benefits and convenience depending on thewhere customers can thoroughly discuss financial mat-stage in their lives. MHBK plans to expand the services it

ters.

offers through tie-ups with group companies and well-

To offer “one-stop shopping” for high quality finan-

known Japanese firms, including airlines, department

cial services, work is moving ahead on setting up MHIS

stores and volume retailers.

consultation booths (“Planet Booths”) in the lobbies ofFrom the spring of 2005, MHBK will start issuing a

MHBK branches, with a view to expanding the network

cash card equipped with credit card functions under theto 100 joint branches by the end of fiscal 2005. MHBK

Saison brand name in an alliance with Credit Saison,

has also opened its first booth-type joint branch withJapan's largest distribution industry-based credit card

Shinko Securities. Using the franchise system for trust

company. This will result in the improvement of the qual-businesses, MHBK handles MHTB products at all its

ity of services offered to MHBK's customers by increasing

branches.

their options when selecting which credit card theychoose to use. In addition to Master Card, customers will
have the choice of selecting from a line-up of such international brand names in credit cards as VISA, JCB and
AMERICAN EXPRESS, as well as receiving appealing services of “Saison Card.”

14

Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

Reinforcing the Personal Loan BusinessApproaches to Testamentary Trusts

Strengthening the Housing Loan Business

There are two services of the testamentary trust
business. The first involves consent to undertake theexecution of wills, and covers everything associatedwith asset inheritance - from detailed discussions on
drawing up a will to keeping the will in safe custody,
regular confirmation of changes in assets or the contents of the will, and execution of the will. The second concerns will custody services, specificallyholding deposited wills in safe and reliable custody.
MHTB's response to customers' inheritance and testamentary needs means that it has been entrusted

Making the most of the low interest rate environment,
MHBK is running a campaign offering housing loans at
special interest rates for a limited period (applications
close March 31, 2005). This campaign has been wellreceived. To respond to longer-term fixed-interest needs,
it is actively promoting its long-term, fixed-interest housing loans for purchases backed by Housing Loan
Corporation finance. As of December 2004, the effective
interest rate* was 2.69%.
Large numbers of customers also attended the threehousing loan consultation sessions held on holidays atwith more testamentary trusts than any otherapproximately 200 branches throughout the country dur-

Japanese bank for the two services of the businessing fiscal 2004.

on an aggregated basis.

MHBK will work to enhance its ability to respondrapidly to customer inquiries. It will increase both theAlliance with Credit Saison

be able to provide such products and services speedily

In December 2004, MHFG, MHBK, UC Card entered into

and at low cost.

“Comprehensive Strategic Business Alliance Agreement”
with Credit Saison, Japan's largest distribution industrybased credit card company, in the credit card business.
Through this alliance, MHBK, which serves 26 million

Credit Saison's Strengths• High Growth Potential

individual customers, and Credit Saison, which has 16

Saison has continued to grow rapidly backed by its

million cardholders, will aim to create innovative value forhigh brand recognition, the strongest new card-

their respective customers by establishing the strongest

holder recruiting mechanism in the business, andbusiness structure going beyond the banking and distrib-

marketing capabilities that generate high usage.
Credit card turnover: ¥1,253.4 billion (107%)

ution industries.
Specifically, MHBK and Credit Saison plan to issue

Total number of cardholders: 16,360,000 (106%)

cash cards equipped with credit card functions, combin-

Number of active cardholders: 8,580,000 (104%)

ing MHBK's services provided to its “Mizuho MileageClub” members. Also, integrating the businesses of UC• Overwhelming Support from Leading
Consumer Segments in Japan

Card and Credit Saison will be considered. Considerations

Owing to its roots in the distribution sector, its

will include consolidating the card-issuing business of UC

membership is characterized by the fact that female

Card, and UC Card integrating the management of the

cardholders account for 66% of the total, and peo-member stores and processing business of Credit Saison.

ple in their 30s and 40s for 44%.

We aim to provide cutting-edge products and services
to customers and establish a business structure that will

15

*As of the end of September 2004. (Figures in parentheses indicate year-on-year changes.)Advanced Financial Services of Mizuho

Targeting Businesses through Customer Segmentation

number of “My Home Plazas” where customers canStrengthening the Consumer Finance Businesscomplete housing loan contract procedures on holidays,

Through the expansion of our market share by issuingand the number of Housing Loan Business Promotion

cash cards with credit card functions as part of theCenters to strengthen relationships with real estate ven-Mizuho Mileage Club program and strengthening ourdors. It will also build a system that enables one-day dis-credit card strategy through our tie-up with Credit

closure of the results of screenings to most applications

Saison, we are promoting increased usage of revolving

by improving the operational flow through prior evalua-credit payments and cashing services.

tions of collateral and prior credit checks, and introducing

Through our alliance with Orient Corporation, more-

an automatic credit-scoring model.

over, we are reinforcing our affiliated loans for the install-*The effective interest rate changes each month.

ment sales for individual commodities, as well as
unsecured loans aimed primarily at individual customers.

Alliance with Orient Corporation
Expanding Sales of Captive Loans for the
Installment Sales for Individual Commodities

New Unsecured Loan Product for Individuals
Launched
MHBK is currently developing the new Mizuho OricoUsing Orico's affiliated merchant base, which underpins

Loan Card (provisional name), which will provide individ-

the strongest installment sales for individual commodities

uals with unsecured loans guaranteed by Orico.

of any Japanese credit sales company, MHBK will rein-

Orico's core customer base constitutes the nucleus offorce its captive loan business based on its loans withthe customers with whom MHBK should expand its trans-

Orico's guarantees. MHBK will also make the most of one

actions from now on. Making use of Orico's know-how

of its great strengths, its corporate customer base, to fur-in areas like credit screening and marketing, MHBK will

ther increase the number of participating merchants andendeavor to strengthen its unsecured personal loan busi-

thus expand group profit-earning opportunities.

ness. While consumer finance companies have a cus-

Companies offering personal loans in the installment

tomer base that values confidentiality, through thesales for individual commodities do not face the large

alliance with Orico, high expectations of cross sales ofpromotion costs that consumer finance companies incur

products and services based on relationships with cus-when expanding their lending. This enables them totomers promise considerable synergies.

increase good quality personal loans based on purchasing

MHBK will work to promote greater usage by a wider

activity efficiently and at low cost. Since the purpose ofrange of customers by speeding up the credit screening

the loan is clearly linked to purchases, the relatively low

process and expanding the range of convenient and easy-

credit risk involved allows credit-related costs to be

to-use customer interface channels, including the Internet

reduced.

and mobile phones.

GlossaryInstallment Sales for Individual Commodities

When customers purchase relatively expensive products andservices such as cars and consumer electrical appliances, thecredit sales company pays the purchase price on the customer's behalf, and then collects it in installments from thecustomer.
Captive Loans

Orico is entrusted with the business of guaranteeing andrecovering payments associated with exclusive sales tie-up
loans extended through Orico's affiliated merchants.

16

Advanced Financial Services of Mizuho

Business Results Highlights of Mizuho

10,774 testamentary trusts entrusted *As of September 30, 2004.
¥672.0 billion and 33.9% share in administration of domestic public corporate bonds*From April 1, 2004 to September 30, 2004.

¥9 trillion in residential housing loan portfolio *As of September 30, 2004.

¥342.9 billion in underwriting of FILP agency bond issues *From April 1, 2004 to September 30, 2004.

*Aggregated figures of MHBK and MHTB, and excluding loans for residential housing for rent.

Ranked No. 1 in the general asset backed securities (ABS) bookrunner league table(¥214.1 billion, share 25.6%) *From April 1, 2004 to September 30, 2004.

¥3,522.0 billion and 41.3% share in arrangementof syndicated loans in Japan

79 arrangements in M&A advisory banking transactions in which Japanese companies
operating in Japan were merged or acquired*From April 1, 2004 to September 30, 2004.

*From January 1, 2004 to September 30, 2004.

¥4.4 trillion in domestic pension funds
under investment management *As of June 30, 2004.

Arrangement of Syndicated Loans in Japan

Domestic Pension Funds under
Investment Management
Mizuho* ¥4.4 trillion¥2.6 trillion in securitized assets (real estate)under administration as trustee *As of September 30, 2004.

OthersSumitomo Mitsui Financial Group(Daiwa SB Investments + Sumitomo
Mitsui Asset Management Company)

Marketvolume¥41.7
trillion¥2.2 trillion in retirement benefit funds
under administration as trustee *As of September 30, 2004.

Mizuho's share
41.3%

Nomura Asset Management

Source: MHCB based on statistics by Bank of Japan

Nissay Asset Management*Aggregated figures of DKA, FIMCO and DIAM.
Source: Japan Securities Investment Advisers Association

248 contracts in defined contribution pension funds
under administration as trustee *As of September 30, 2004.

40.0% share in yen securities custody service for foreign investors

General ABS Bookrunner League Table

32.5% share in foreign exchange (yen clearing) services(ABSs backed by assets in Japan: Domestic public
and private bonds and Eurobonds.)*As of October 1, 2004.

Numberof Issues

Rank

Amount ofIssues (¥bn.)

MarketShare (%)*As of September 30, 2004.

1

Mizuho Securities

7

214.1

25.6

2

Shinsei Bank

7

162.3

19.4

3

Merrill Lynch

3

150.1

17.9

4

Citigroup

2

60.0

7.2

¥351.2 billion in underwritingof domestic straight bond (SB) issues excluding
city bank issues, self-financing issues,and issues targeting retail investors

4

Nomura

2

60.0

7.2

*From April 1, 2004 to September 30, 2004.

6

Lehman Brothers

2

57.9

6.9

7

Credit Suisse First Boston

2

44.2

5.3

8

Daiwa Securities SMBC

2

34.0

4.1

Domestic SB League Table (Lead Managed Issues)(Excluding city bank issues, self-financing issues,and issues targeting retail investors.)(Total Amount of Issues; ¥1,988.5 bn.)Amount of Lead Managing
MarketRank
Underwritings (¥bn.) Share (%)
1 Nomura
430.7
21.66

9

Goldman Sachs

2

30.0

3.6

10

Hypo Vereinsbank

2

12.0

1.4

10

Morgan Stanley

2

12.0

1.4

Source: Thomson Financial

2

Mizuho Securities

351.2

17.66

3

Nikko Citigroup

324.7

16.33

4

Daiwa Securities SMBC

277.8

13.97

5

Mitsubishi Securities

158.7

7.98

6

Shinko Securities

71.5

3.60

7

UFJ Tsubasa Securities

61.6

3.10

8

Goldman Sachs

58.2

2.93

9

Morgan Stanley

57.0

2.87

10

Merrill Lynch Japan Securities

37.6

1.89

Source: MHSC based on I-N Information Systems

17

Yen Securities Custody Service
for Foreign Investors
Mizuho's share
40.0%

Source: MHCB

Foreign Exchange(Yen Clearing) Services
Mizuho's share
32.5%

Source: Tokyo Bankers Association

Community Activities and Environmental AwarenessWe have established a basic approach to and guidelines for community activities andenvironmental awareness programs at home and overseas.
Below are a few of our activities:

 Mizuho Charity FundIn fiscal 2002, we established the Mizuho Charity Fund as a donation collection method to promote community activities by the group's staff. Contributions in units of ¥100 are collected
directly from employees' monthly salaries and donated to group philanthropic foundations, used
as relief funds during large-scale disasters and contributed to volunteer organizations selected
Presentation of donation for earthquake disaster in Niigata Prefecture.

from groups recommended by employees.
During fiscal 2004, contributions were made from the fund to aid relief efforts in the aftermathof floods from heavy rains that hit Niigata, Fukushima and Fukui Prefectures, the typhoon thatcaused extensive damage in Hyogo Prefecture, and the major earthquake that struck Niigata
Prefecture.
In the case of donations to earthquake-stricken Niigata Prefecture, additional funds were collected from employees through a voluntary collection drive as well as a matching donation from
Mizuho Financial Group.

Donation by Mizuho Education Welfare
Foundation of athletic equipment to anelementary school in rural Japan.

 Activities of Mizuho's Philanthropic Foundations in Japan
We conduct philanthropic activities through the following foundations.
Mizuho Education Welfare
Foundation
Assistance for education in rural areas,
education of physically challenged
children, and welfare for senior citizens (grants, donations of athletic
equipment and welfare vehicles).

Mizuho Welfare Foundation
Assistance in connection with the welfare of the disabled. (Grants, donationsof electrically powered wheelchairs andwelfare vehicles. Funds for translatingbooks into Braille for visually impaired
university students.)

Mizuho International Foundation
Scholarships for foreign students
studying in Japan. Training for personnel to undertake work in the area ofinternational exchange.

Mizuho Foundation for the
Promotion of Sciences
Mizuho Scholarship Foundation

Presentation by Mizuho Welfare
Foundation of vehicle for use by a welfare facility.

Scholastic loans for deserving students
facing economic hardship.

Research grants in the areas of engineering and law. Public essay contests
in the areas of law and economics.
Scholarships for foreign students
studying in Japan.

 Overseas Activities
Our overseas offices are actively engaged in efforts to contribute to local communities.
Mizuho Asian Fund
The Mizuho Asian Fund was established in 1998 to facilitate the development of healthy youths,
the eradication of drugs and promotion of sports in ASEAN countries.
Through the cooperation of Thailand's Ministry of Education, the fund sponsors soccer and volMizuho Asian Fundleyball tournaments (collectively called the Mizuho Games) for elementary and junior high schools.
Also, the fund has awarded scholarships to university students as well as supported company visits
for elementary and junior high school students in Thailand.

 Support for the “All-Japan Elementary and Junior High School Students'
Environmental Art Contest”
Since 1997, we have supported the “All-Japan Elementary and Junior High School Students'
Environmental Art Contest,” which promotes environmental education among elementary andWinner of Mizuho's Environment Art
Contest award.

junior high school students. Winners are presented with books containing the winning entries.

18

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

 Definition of the Aggregated Figures of the Three Banks
For an early achievement of corporate revitalization, loans and stocks of customers in need of revitalization/restructuring held by
MHCB, MHBK and MHTB were transferred to their financial subsidiaries specializing in corporate revitalization in July 2003.
Aggregated figures of the Three Banks are the aggregated non-consolidated figures of MHCB, MHBK, MHTB and their financial subsidiaries specializing in corporate revitalization.

Consolidated Accounts of Mizuho Financial Group, Inc. (MHFG)
1. Scope of Consolidation and Application of the Equity Method
companies

At September 30, 2004 and 2003, and at March 31, 2004

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)Number of consolidated subsidiaries
Number of affiliates under the equity method

121
22

118
28

125
29

3
(6)

MHFG's consolidated subsidiaries increased by 3 to 121, and the number of affiliates under the equity method decreased by 6 to 22
from the end of the previous fiscal year.
The major consolidated subsidiaries are Mizuho Holdings, Inc. (MHHD), Mizuho Corporate Bank, Ltd.(MHCB), Mizuho Bank,
Ltd.(MHBK), Mizuho Trust & Banking Co., Ltd. (MHTB), and Mizuho Securities Co., Ltd.(MHSC). The major affiliates under the equity
method are The Chiba Kogyo Bank, Ltd. and Shinko Securities Co., Ltd.

2. Consolidated Profits and Losses
Billions of yen

For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004 (a)Consolidated Gross Profits
Net Interest Income
Net Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
General and Administrative Expenses
Expenses related to Portfolio Problems + Provision for(Reversal of) General Reserve for Possible Losses on Loans
Net Gains related to Stocks
Equity in Income from Investment in Affiliates
Other
Income before Income Taxes and Minority Interests
Income Taxes–Current
Income Taxes–Deferred
Minority Interests in Net Income
Net Income
Net Income per Share of Common Stock (Yen)
Credit-related Costs(Reference) Consolidated Net Business Profits

¥

961.2
564.5
26.7
215.1
70.0
84.7
563.0

(29.9)
80.1
2.0(81.1)
429.0
18.9
148.4
27.7
¥
233.9
¥ 21,706.23¥(28.4)¥
406.0

March 31, 2004¥

2,112.4
1,185.0
62.0
426.6
231.8
206.9
1,125.9

292.8
190.8
1.7
(4.9)
881.2
28.0
387.8
58.3
¥
406.9
¥ 36,153.27
¥
298.8
/

September 30, 2003 (b)¥1,097.3
585.1
26.8
196.4
129.1
159.8
572.1

165.6
119.5
1.2
96.8
577.0
22.1
268.6
30.9
¥
255.3
¥ 26,320.47
¥
169.5
/

Change (a)-(b)¥(136.1)(20.5)(0.0)
18.7(59.1)(75.1)(9.1)(195.5)(39.4)
0.8(178.0)(148.0)(3.1)(120.1)(3.2)¥(21.4)¥ (4,614.24)¥(198.0)/Notes: 1. Consolidated Gross Profits= Net Interest Income + Net Fiduciary Income + Net Fee and Commission Income + Net Trading Income + Net Other Operating Income.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision for (Reversal of) General Reserve for Possible Losses on Loans + Credit Costs for Trust Accounts.
3. Consolidated Net Business Profits = Non-consolidated Net Business Profits (before Provision for General Reserve for Possible Losses on Loans) of the Banking Subsidiaries – Dividends Received from
Consolidated Subsidiaries within the Group + Non-consolidated Net Business Profits (before Provision for General Reserve for Possible Losses on Loans) of other Consolidated Subsidiaries + Equity in
Income from Investment in Affiliates.

19

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

(1) Consolidated Gross Profits
Consolidated Gross Profits decreased by ¥136.1 billion to ¥961.2 billion in comparison with the corresponding interim period of theprevious fiscal year.
Net Interest Income decreased by ¥20.5 billion to ¥564.5 billion as a result of a decline in loans.
Net Fiduciary Income was ¥26.7 billion, similar to the level posted in the corresponding interim period of the previous fiscal year.
Net Fee and Commission Income increased by ¥18.7 billion to ¥215.1 billion, as a result of increase in fees from syndication-related
business.
Net Trading Income decreased by ¥59.1 billion to ¥70.0 billion.
Net Other Operating Income decreased by ¥75.1 billion to ¥84.7 billion due to decrease in Net Gains related to Bonds.

(2) General and Administrative Expenses
General and Administrative Expenses decreased by ¥9.1 billion to ¥563.0 billion as a result of further cost-cutting in both personnel
and non-personnel expenses.

(3) Credit-related Costs
The reversal of Reserves for Possible Losses on Loans, mainly due to the steady progress in revitalization and the business recovery ofcorporate customers, resulted in a huge reduction of ¥195.5 billion in “Expenses related to Portfolio Problems + Provision for (Reversalof) General Reserve for Possible Losses on Loans”, which ended up with a gain of ¥29.9 billion.
Credit-related Costs also decreased by ¥198.0 billion, ending up with a gain of ¥28.4 billion.

(4) Net Gains related to Stocks
Net Gains related to Stocks decreased by ¥39.4 billion to ¥80.1 billion, because of ongoing reduction in stockholdings.

(5) Equity in Income from Investment in Affiliates
Equity in Income from Investment in Affiliates increased by ¥0.8 billion to ¥2.0 billion.

(6) Other
Other amounted to a loss of ¥81.1 billion, declining by ¥178.0 billion from a gain of ¥96.8 billion for the corresponding interim periodof the previous fiscal year, as a result of Ioss on Impairment of Fixed Assets which was applied effective this fiscal year.

(7) Net Income
As a result of the above, Income before Income Taxes and Minority Interests amounted to ¥429.0 billion.
Net Income decreased by ¥21.4 billion to ¥233.9 billion after reflecting Income Taxes–Current, Income Taxes–Deferred and Minority
Interests in Net Income.

20

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Use and Source of Funds (Consolidated)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Billions of yen

Average balance
March 31,
September 30,
2004
2003 (b)September 30,
2004 (a)Use of Funds¥ 115,871.1 ¥ 111,512.0 ¥ 109,990.5
Loans and Bills Discounted
65,437.9
67,464.4
68,024.4
Securities
32,626.4
27,241.9
24,880.0
Call Loans and Bills Purchased
1,438.1
1,717.1
2,618.9
Receivables under Resale Agreements
4,859.7
4,173.4
3,869.3
Guarantee Deposit Paid under Securities
Borrowing Transactions
7,319.7
7,048.8
6,803.6
Due from Banks
1,704.5
1,721.4
1,803.6
Source of Funds¥ 116,814.6 ¥ 113,899.6 ¥ 113,661.4
Deposits
76,807.4
73,418.0
72,554.2
Debentures
8,986.4
10,648.5
11,261.3
Call Money and Bills Sold
8,601.0
10,251.5
11,278.0
Payables under Repurchase Agreements
8,861.8
8,300.2
8,385.0
Guarantee Deposit Received under Securities
Lending Transactions
7,051.8
5,682.4
4,930.5
Commercial Paper
952.7
831.6
901.9
Borrowed Money
1,930.5
1,515.8
1,464.9

Change(a)-(b)Interest
March 31, September 30,
2004
2003 (b)September 30,
2004 (a)Change(a)-(b)¥ 5,880.5(2,586.4)
7,746.4(1,180.8)
990.4¥ 776.9 ¥ 1,622.7 ¥ 823.6 ¥ (46.6)
540.6
1,183.7
602.5 (61.8)
131.7
296.7
148.8 (17.0)
2.3
5.1
2.9
(0.6)
46.8
74.2
38.3
8.5

516.1
(99.0)¥ 3,153.1
4,253.1(2,274.9)(2,677.0)
476.7

1.7
1.7
0.6
1.0
12.6
24.8
15.3
(2.7)
¥ 212.3 ¥ 437.6 ¥ 238.3 ¥ (26.0)
51.4
112.8
60.4
(9.0)
36.5
92.7
50.2 (13.6)
1.3
2.8
1.4
(0.1)
61.7
116.3
65.2
(3.5)

2,121.3
50.7
465.5

5.5
0.4
14.1

12.1
1.0
34.5

6.1
0.4
16.8

(0.5)
(0.0)
(2.7)
%

Yield
September 30, March 31, September 30,
2004 (a)2004 2003 (b)For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Use of Funds
Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposit Paid under Securities
Borrowing Transactions
Due from Banks
Source of Funds
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposit Received under Securities
Lending Transactions
Commercial Paper
Borrowed Money

1.34%
1.65
0.80
0.32
1.92

1.45%
1.75
1.08
0.30
1.78

1.49%
1.77
1.19
0.22
1.98

(0.15)%(0.11)(0.38)
0.09(0.05)

0.04
1.47
0.36%
0.13
0.81
0.03
1.39

0.02
1.44
0.38%
0.15
0.87
0.02
1.40

0.02
1.70
0.41%
0.16
0.89
0.02
1.55

0.02
(0.22)(0.05)%(0.03)(0.07)
0.00(0.16)

0.15
0.09
1.46

0.21
0.12
2.27

0.24
0.10
2.29

(0.08)(0.01)(0.83)Net Fee and Commission Income (Consolidated)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Net Fee and Commission Income
Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Safe Custody and Safety Deposit Box Business
Guarantee Business
Trust-related BusinessFee and Commission Expenses
Remittance BusinessChange(a)-(b)Billions of yen

September 30, 2004 (a)

¥
¥

¥

215.1
268.0
58.8
56.5
51.3
19.2
4.8
12.4
19.6
52.8
14.3

21

March 31, 2004

¥
¥

¥

426.6
515.3
106.1
116.4
92.4
36.7
6.9
22.9
37.1
88.7
28.9

September 30, 2003(b)

¥
¥

¥

196.4
245.1
53.2
58.2
43.2
18.0
4.9
16.8
18.0
48.7
14.3

Change (a)-(b)

¥
¥

¥

18.7
22.8
5.6
(1.6)
8.0
1.2
(0.1)
(4.4)
1.6
4.0
0.0

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

3. Consolidated Assets and Liabilities
Billions of yen

At September 30, 2004 and 2003, and at March 31, 2004

Total Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted
Total Liabilities
Deposits
Debentures
Call Money and Bills Sold
Minority Interests
Shareholders' Equity
Net Unrealized Gains on Other Securities,
net of Taxes

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 139,327.1
5,442.8
11,027.3
33,267.3
64,296.9
134,681.2
76,049.3
8,461.5
8,457.9
1,108.3¥ 3,537.5¥ 137,750.0
6,813.5
8,016.5
32,071.6
66,205.8
133,069.5
77,487.4
9,459.5
8,680.5
1,036.1¥ 3,644.3¥ 135,484.6
7,012.8
9,150.5
27,156.5
67,990.1
131,164.3
74,329.7
10,705.9
9,330.7
1,045.6¥ 3,274.7

1,577.0(1,370.6)
3,010.8
1,195.7(1,908.8)
1,611.6(1,438.1)(997.9)(222.6)72.2¥(106.7)

350.4

392.7

142.4

(42.2)¥(1) Assets
Securities increased by ¥1,195.7 billion from the end of the previous fiscal year to ¥33,267.3 billion. Net Unrealized Gains on Other
Securities at the end of the interim period were ¥679.7 billion.
Loans and Bills Discounted decreased by ¥1,908.8 billion to ¥64,296.9 billion. Non-Accrual, Past Due & Restructured Loansamounted to ¥2,249.3 billion, or 3.49% of total Loans and Bills Discounted, with an improvement of 1.30%.
Total Assets resulted in ¥139,327.1 billion.

(2) Liabilities and Minority Interests
Deposits decreased by ¥1,438.1 billion to ¥76,049.3 billion.
Debentures decreased by ¥997.9 billion to ¥8,461.5 billion.
Minority Interests increased by ¥72.2 billion to ¥1,108.3 billion.

(3) Shareholders' Equity
Shareholders' Equity decreased by ¥106.7 billion to ¥3,537.5 billion.
As a result of recording Net Income higher than originally estimated, the consolidated Capital Adequacy Ratio (BIS Capital Ratio)
stood at 11.86%, continuing at a satisfactory level even after the repayment of public funds. (Please refer to Page 24 for details.)

22

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Fair Value of Other Securities (Consolidated)

Billions of yen

Cost

Fair Value¥ 28,566.0
3,128.2
20,515.6
4,922.1¥ 29,245.7
3,951.1
20,375.5
4,919.0

At September 30, 2004 (a)Other Securities*1
Stocks*2
Bonds
Other

Gross Unrealized
Gains
Losses

¥

947.4
900.3
11.7
35.3

¥

267.7
77.4
151.8
38.4

Net Unrealized*3
Gains (Losses)

¥

679.7
822.9
(140.0)(3.1)
Billions of yen

At March 31, 2004 (b)CostFair Value

Other Securities*1
Stocks*2
Bonds
Other

¥ 27,895.2
3,477.1
20,185.9
4,232.1¥ 28,615.6
4,361.7
19,994.7
4,259.2

Gross Unrealized
Gains
Losses¥ 1,018.8
967.2
9.3
42.2

¥

298.4
82.6
200.5
15.1

Net Unrealized
Gains (Losses)

¥

720.4
884.5
(191.1)
27.0
Billions of yen

At September 30, 2003

Cost

Fair Value

Other Securities*1
Stocks*2
Bonds
Other

¥ 24,452.2
3,668.0
15,925.2
4,858.9¥ 24,805.7
4,213.3
15,704.9
4,887.3¥

Gross Unrealized
Gains
LossesNet Unrealized
Gains (Losses)

747.3
688.7
7.3
51.2

¥

¥

393.8
143.3
227.6
22.8

353.4
545.3
(220.2)
28.3
Billions of yen

Cost

Change (a)-(b)Other Securities*1
Stocks*2
Bonds
Other

¥

Fair Value

670.7(348.8)
329.7
689.9

¥

630.0
(410.5)
380.8
659.7

¥

Gross Unrealized
Gains
LossesNet Unrealized
Gains (Losses)(71.3)(66.8)
2.3
(6.8)

¥

¥

(30.6)(5.2)(48.7)
23.2(40.7)(61.6)
51.1(30.1)*1 In addition to the balances shown in the above table, Other Securities included securities without fair values such as unlisted stock (excluding OTC stock) of ¥856.1billion and non-publicly offered bonds of¥1,387.4 billion as of September 30, 2004.
*2 Fair Value of Stocks is determined based on the average market prices during one-month periods before the balance sheet date.
*3 Within Unrealized Gains and Losses, ¥32.9 billion (Gains) was recognized in the Statement of Operations by apply fair-value hedging.

23

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Consolidated Capital Adequacy Ratio (BIS Capital Ratio)
Billions of yen

At September 30, 2004 and 2003, and at March 31, 2004

September 30, 2004 (a)Capital Adequacy Ratio
Tier I Ratio
Tier I(A)
Common Stock and Preferred StockNew Stock Subscription
Capital Surplus
Retained Earnings
Minority Interest in Consolidated Subsidiaries
Preferred Stock issued by Overseas SPC
Unrealized Losses on Other Securities
Treasury Stock Subscription
Treasury Stock
Foreign Currency Translation Adjustments
Goodwill Equivalent
Consolidation Differences Equivalent
Tier II(B)
45% of Unrealized Gains on Other Securities
45% of Revaluation Reserve for Land
General Reserve for Possible Losses on Loans
Debt Capital
Perpetual Subordinated Debt and Other Debt Capital
Subordinated Debt and Redeemable Preferred Stock
Deductions from Capital(C)
Capital(A)+(B)-(C)Risk-adjusted Assets
Assets Exposed to Credit Risk
On-balance-sheet Items
Off-balance-sheet Items
Market Risk Equivalent Divided by 8%(Reference) Market Risk Equivalent

11.86%
6.01%¥ 4,044.1
1,540.9—
1,022.5
634.3
1,075.7
937.2——(134.2)(95.1)(0.0)—
4,044.1
292.0
165.1
834.6
2,753.1
814.4
1,938.7
113.5¥ 7,974.6¥ 67,239.4
66,141.7
60,760.3
5,381.3
1,097.6
87.8

24

March 31, 2004 (b)September 30, 2003

Change(a)-(b)11.35%
5.75%¥ 3,941.1
1,540.9—
1,262.5
386.6
995.7
923.3
—
—
(134.1)(110.5)(0.0)—
3,941.1
325.4
175.5
1,175.8
2,803.9948.7
1,855.1
112.2¥ 7,770.0¥ 68,424.1
67,368.7
63,093.7
4,275.0
1,055.4
84.4

10.63%
5.40%¥ 3,792.9
1,540.9—
1,262.2
172.0
1,030.0
959.7——(134.1)(78.2)(0.1)—
3,792.9159.7
279.7
1,512.1
2,755.0
1,155.7
1,599.3
121.5¥ 7,464.2¥ 70,204.1
69,371.0
65,136.8
4,234.1
833.1
66.6

0.51%
0.26%
¥ 102.9——(239.9)
247.6
79.9
13.9
—
—
(0.1)
15.4
0.0
—
102.9
(33.3)(10.4)(341.1)(50.7)(134.3)83.6
1.3¥ 204.6¥ (1,184.7)(1,227.0)(2,333.3)
1,106.3
42.2
3.3

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Aggregated Figures of the Three Banks
1. Differences between Consolidated Figures and Aggregated Figures of the Three Banks
Billions of yen

For the Six Months ended
September 30, 2004 and 2003

Gross Profits
Net Interest Income
Net Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
Credit-related Costs
Net Income

MHFG(Consolidated)(a)¥ 961.2
564.5
26.7
215.1
70.0
84.7
(28.4)
233.9

September 30, 2004
AggregatedFigures of theThree Banks (b)(a) – (b)¥ 788.2
526.5
26.8
146.5
7.4
80.9
(33.5)
191.9¥ 173.0
38.0
(0.0)
68.6
62.6
3.7
5.1
41.9

(b) / (a)

82.0%
93.2
100.0
68.0
10.5
95.5
117.9
82.0

September 30, 2003
MHFG
Aggregated(Consolidated)
Figures of the(a) Three Banks (b)(a) – (b)¥ 1,097.3
585.1
26.8
196.4
129.1
159.8
169.5
255.3

¥ 965.4
599.7
26.8
127.0
62.1
149.6
131.4
309.7

¥ 131.9(14.6)
(0.0)
69.3
66.9
10.2
38.1
(54.3)(b) / (a)

87.9%
102.4
100.0
64.6
48.1
93.5
77.4
121.2

Note: Credit-related Costs = Expenses related to Portfolio Problems + Provision for General Reserve for Possible Losses on Loans + Credit Costs for Trust Accounts.
Billions of yen

At September 30 and March 31, 2004

MHFG
(Consolidated)(a)September 30, 2004
AggregatedFigures of theThree Banks (b)(a) – (b)(b) / (a)Total Assets
Securities
Loans and Bills Discounted¥ 139,327.1
33,267.3
64,296.9¥ 134,494.0
36,305.6
64,140.3

96.5% ¥ 137,750.0 ¥ 137,897.7
109.1
32,071.6
35,359.9
99.7
66,205.8
66,132.4¥ 4,833.0(3,038.3)
156.6

25

MHFG
(Consolidated)(a)March 31, 2004
AggregatedFigures of theThree Banks (b)(a) – (b)¥ (147.6)(3,288.3)
73.4(b) / (a)100.1%
110.2
99.8

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

2. Aggregated Profits and Losses
Profits and Losses (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Domestic Gross Profits
International Gross Profits
Gross Profits
Net Interest Income
Net Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income
Net Gains related to Bonds
General and Administrative Expenses(Excluding Non-recurring Losses)
Net Business Profits (before Provision for
General Reserve for Possible Losses on Loans)Excluding Net Gains related to Bonds
Provision for (Reversal of) General Reserve for
Possible Losses on Loans
Net Business Profits
Net Non-recurring Gains (Losses)
Net Gains related to Stocks
Expenses related to Portfolio Problems
Other
Income before Income Taxes
Income Taxes–Current
Income Taxes–Deferred
Net Income
Credit-related Costs

Billions of yen

September 30, 2004 (a)¥March 31, 2004

September 30, 2003 (b)

¥

672.1
293.3
965.4
599.7
26.8
127.0
62.1
149.6
115.3

Change (a)-(b)

612.4
175.7
788.2
526.5
26.8
146.5
7.4
80.9
(8.1)

¥ 1,327.8
477.7
1,805.6
1,130.7
62.0
268.5
111.9
232.3
115.1

¥

(59.6)(117.5)(177.1)(73.2)(0.0)
19.4(54.7)(68.6)(123.4)

420.5

857.4

437.6

(17.0)

369.1
377.2

954.1
838.9

531.6
416.3

(162.5)(39.1)(248.9)616.6(274.7)62.6(213.9)(123.3)
341.9
0.3
149.6
¥ 191.9¥ (33.5)(131.5)
1,079.7(221.4)189.3(363.6)(47.1)
858.3
0.6
409.7
¥
447.9
¥
237.9

13.8
513.9
86.3
99.0
(113.6)
100.9
600.2
0.2
290.2
¥ 309.7¥ 131.4(262.8)102.7(361.0)(36.4)(100.3)(224.3)(258.3)0.0(140.6)¥ (117.7)¥ (164.9)

Notes: 1. Net Business Profits (before Provision for General Reserve for Possible Losses on Loans) of MHTB denote amounts before Provision for General Reserve for Possible Losses on Loans and Credit Costs for
Trust Accounts.
2. Credit-related Costs = Expenses related to Portfolio Problems + Provision for General Reserve for Possible Losses on Loans + Credit Costs for Trust Accounts.

Breakdown of Gross Profits (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Net Interest Income
Domestic Operations
International Operations
Net Fiduciary Income
Domestic Operations
International Operations
Net Fee and Commission Income
Domestic Operations
International Operations
Net Trading Income
Domestic Operations
International Operations
Net Other Operating Income
Domestic Operations
International Operations
Gross Profits

Billions of yen

September 30, 2004 (a)

¥

¥

526.5
448.4
78.0
26.8
26.8
/
146.5
116.1
30.4
7.4
12.9
(5.5)
80.9
8.1
72.7
788.2

26

March 31, 2004

¥ 1,130.7
918.3
212.3
62.0
62.0
/
268.5
210.9
57.5
111.9
42.9
68.9
232.3
93.4
138.9
¥ 1,805.6

September 30, 2003 (b)

¥

¥

599.7
458.5
141.2
26.8
26.8
/
127.0
97.1
29.9
62.1
25.3
36.7
149.6
64.3
85.3
965.4

Change (a)-(b)¥(73.2)(10.0)(63.1)
(0.0)
(0.0)
/
19.4
18.9
0.4
(54.7)(12.3)(42.3)(68.6)(56.1)(12.5)¥ (177.1)

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Breakdown of Net Interest Income (MHCB and MHBK excluding Financial Subsidiaries for Corporate Revitalization)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Total
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures
Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures
International Operations
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures

For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Total
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures
Interest Margins
Loan and Deposit Margin
Domestic Operations
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures
Interest Margins
Loan and Deposit Margin
International Operations
Use of Funds
Loans and Bills Discounted
Securities
Source of Funds
Deposits and Debentures
Interest Margins
Loan and Deposit Margin

September 30,
2004 (a)Average balance
March 31,
2004

Billions of yen

September 30,
2003 (b)Change(a)-(b)¥ 106,292.2
57,944.7
33,390.4
109,618.4
83,765.8¥ 107,036.7
61,422.8
28,122.6
111,464.2
83,013.4¥ 107,277.3
63,100.4
25,410.1
111,820.4
82,529.1

90,401.2
52,719.7
28,527.9
93,926.4
74,862.7

90,985.6
55,626.9
23,018.3
95,696.1
74,100.0

91,068.4
56,741.6
19,901.6
95,662.2
73,588.8(667.2)(4,021.8)
8,626.2(1,735.7)
1,273.9

16,865.9
5,225.0
4,862.5
16,666.9
8,903.0

16,516.1
5,795.8
5,104.2
16,233.1
8,913.3

17,195.1
6,358.8
5,508.4
17,144.4
8,940.2(329.1)(1,133.8)(645.9)(477.5)(37.2)

September 30,
2003 (b)Change(a)-(b)

September 30,
2004 (a)Yield
March 31,2004¥

(985.0)(5,155.7)
7,980.3(2,201.9)
1,236.7

1.28%
1.59
0.88
0.35
0.21
0.92
1.37

1.36%
1.67
1.19
0.36
0.22
1.00
1.44

1.46%
1.70
1.57
0.38
0.24
1.07
1.45

(0.18)%(0.11)(0.69)(0.02)(0.03)(0.15)(0.08)

1.04
1.47
0.46
0.13
0.11
0.91
1.35

1.10
1.56
0.52
0.16
0.14
0.94
1.41

1.12
1.58
0.52
0.17
0.16
0.95
1.42

(0.08)(0.11)(0.05)(0.03)(0.04)(0.04)(0.07)

2.47
2.78
3.29
1.61
1.03
0.86
1.74

2.78
2.72
4.23
1.55
0.90
1.22
1.81

3.17
2.69
5.36
1.55
0.92
1.62
1.76

(0.70)
0.08(2.07)
0.06
0.11(0.76)(0.02)

27

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Breakdown of Net Fee and Commission Income (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Net Fee and Commission Income
Fee and Commission Income
Deposits, Debentures and Lending Business
Remittance Business
Securities-related BusinessAgency Business
Safe Custody and Safety Deposit Box Business
Guarantee BusinessFee and Commission Expenses
Remittance BusinessBillions of yen

September 30, 2004 (a)March 31, 2004

September 30, 2003 (b)¥ 146.5¥ 203.0
55.3
56.7
19.8
14.2
4.8
10.1
¥ 56.5
14.4¥ 268.5¥ 380.3
100.9
116.1
36.0
26.3
6.9
18.0
¥ 111.7
28.8¥ 127.0¥ 185.2
47.1
57.7
17.5
12.6
4.9
8.5
¥ 58.2
14.2

Change (a)-(b)

¥
¥

19.4
17.7
8.2
(1.0)
2.3
1.5
(0.1)
1.6
¥ (1.7)
0.2

Breakdown of Net Other Operating Income (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Net Other Operating Income
Total
Profits on Foreign Exchange Transactions
Net Gains related to Bonds
Domestic Operations
Net Gains related to Bonds
International Operations
Profits on Foreign Exchange Transactions
Net Gains related to Bonds

Billions of yen

September 30, 2004 (a)

¥
¥

80.9
80.9
76.4
(8.1)
8.1
(7.0)
72.7
76.4
(1.1)

March 31, 2004

September 30, 2003 (b)¥ 232.3¥ 232.3
93.2
115.1
93.4
61.5
138.9
93.2
53.5

¥ 149.6¥ 149.6
37.7
115.3
64.3
61.2
85.3
37.7
54.1

Change (a)-(b)¥¥Breakdown of General and Administrative Expenses (Excluding Non-recurring Losses) (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Personnel Expenses
Non-personnel Expenses
Miscellaneous Taxes
Total(68.6)(68.6)
38.6(123.4)(56.1)(68.2)(12.5)
38.6(55.2)

Billions of yen

September 30, 2004 (a)March 31, 2004

September 30, 2003 (b)¥ 125.4
268.5
26.5¥ 277.6
533.7
45.9¥ 146.5
268.0
23.0

¥

(21.1)
0.5
3.4¥ 420.5¥ 857.4¥ 437.6¥(17.0)

28

Change (a)-(b)Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Breakdown of Net Non-recurring Gains (Losses) (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004 (a)Billions of yen

September 30, 2003 (b)Change (a)-(b)

189.3
247.9
(21.8)(20.2)¥ 99.0
138.1
(4.2)
(8.5)

¥ (36.4)(19.5)(4.0)(39.0)(0.0)—(213.9)(138.3)(62.1)——(1.8)(14.5)(363.6)(173.1)(184.3)(0.7)
5.0(11.6)(14.5)(113.6)(65.7)(57.7)
(0.6)
3.9

11.6
14.5
(100.3)(72.6)
(4.3)
0.6
(3.9)

—

3.2

4.5

(4.5)

2.3
1.4
(17.1)(123.3)¥ (274.7)

7.2
4.7(25.6)(47.1)¥ (221.4)

5.6
(0.9)
(2.7)
100.9
¥ 86.3(3.3)
2.3(14.4)(224.3)¥ (361.0)

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 134,494.0
8,041.7
3,028.0
36,305.6
64,140.3
127,498.5
78,586.1
8,555.6
8,041.5
2,880.4
6,995.4¥ 137,897.7
9,240.5
3,883.4
35,359.9
66,132.4
131,021.5
79,895.8
9,554.7
9,746.6
2,369.4
6,876.1¥ 134,847.2
9,190.5
4,339.930,483.5
67,856.3
128,356.7
76,427.0
10,791.5
10,641.4
2,604.7
6,490.4¥ (3,403.6)(1,198.7)(855.4)945.7(1,992.1)(3,522.9)(1,309.6)(999.0)(1,705.1)
511.0
119.3

344.8

387.0

139.5

(42.2)Net Gains related to Stocks
Gains on Sales
Losses on Sales
Losses on Devaluation
Provision for Reserves for Possible
Losses on Investments
Losses on Derivatives other than for Trading
Expenses related to Portfolio Problems
Losses on Write-offs of Loans
Provision for Specific Reserve for Possible Losses on Loans
Losses on Sales of Loans to CCPC
Reversal of Reserve for Possible Losses on Loans Sold
Reversal of Reserve for Possible Losses on Support ofSpecific Borrowers
Reversal of Reserve for Possible Losses on Loans to
Restructuring Countries
Reversal of (Provision for) Reserve for Contingencies
Other Losses on Sales of Loans
Other
Net Non-recurring Gains (Losses)

¥

62.6
118.6
(8.3)
(47.6)March 31, 2004¥

Note: CCPC is the abbreviation for the Cooperative Credit Purchasing Company, Ltd.

3. Aggregated Assets and Liabilities
Assets and Liabilities (the Three Banks) (Banking Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Total Assets
Cash and Due from Banks
Call Loans
Securities
Loans and Bills Discounted
Total Liabilities
Deposits
Debentures
Call Money
Bills Sold
Shareholders' Equity
Net Unrealized Gains on other Securities,
net of Taxes

Billions of yen

29

Financial Analysis of Mizuho

Results for the Six Months ended September 30, 2004

Balance of Housing and Consumer Loans (the Three Banks) (Banking Accounts and Trust Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Billions of yen

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 11,821.4
9,038.1¥ 12,335.6
9,398.0¥ 12,552.4
9,433.9¥ (514.1)(359.8)

Housing and Consumer Loans
Housing Loans for Owner's Residential Housing

Note: Above figures are aggregated banking and trust accounts amounts (Trust Accounts denote trust accounts with contracts indemnifying the principal amount).

Loans to Both Small and Medium-size Enterprises and Individual Customers (the Three Banks)(Banking Accounts and Trust Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Billions of yen

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 37,282.2¥ 39,456.4¥ 39,779.7¥ (2,174.1)

60.7%

62.0%

61.3%

(1.3)%

Loans to Both Small and Medium-size Enterprises
and Individual Customers
Percentage of Loans to Both Small and Medium-sizeEnterprises and Individual Customers of
Total Domestic Loans
Note: Above figures are aggregated banking and trust accounts amounts.

Fair Value of Other Securities (the Three Banks) (Banking Accounts)
Cost

Fair Value¥ 28,013.0
3,111.5
20,336.7
4,564.7¥ 28,642.9
3,885.4
20,197.1
4,560.2

At September 30, 2004 (a)Other Securities*1
Stocks*2
Bonds
Other

Billions of yen

Gross Unrealized
Gains

¥

895.6
850.8
11.8
32.9

LossesNet Unrealized*3
Gains (Losses)¥ 265.6
76.8
151.4
37.4

¥ 629.9773.9(139.5)(4.4)

LossesNet Unrealized
Gains (Losses)¥ 298.2
83.3
200.2
14.6

¥ 674.8
841.6(190.9)24.1

Billions of yen

At March 31, 2004 (b)CostFair Value

Other Securities*1¥ 27,458.8
3,460.7
20,056.9
3,941.1¥ 28,133.6
4,302.3
19,866.0
3,965.2

Stocks*2
Bonds
Other

Gross Unrealized
Gains

¥

973.0
924.9
9.3
38.7

Billions of yen

At September 30, 2003

Cost

Fair Value

Other Securities*1
Stocks*2
Bonds
Other

¥ 24,018.0
3,650.9
15,785.3
4,581.6¥ 24,342.7
4,172.3
15,564.9
4,605.5

Gross Unrealized
Gains

¥

718.6
665.0
7.3
46.1

LossesNet Unrealized
Gains (Losses)¥ 393.8
143.7
227.7
22.3

¥ 324.7
521.3(220.4)23.8

LossesNet Unrealized
Gains (Losses)¥ (32.5)(6.4)(48.8)
22.7¥ (44.8)(67.6)
51.3(28.5)

Billions of yen

Cost

Change (a)-(b)Other Securities*1
Stocks*2
Bonds
Other

¥

Gross Unrealized
Gains

Fair Value

554.1(349.1)
279.7
623.5

¥

509.2
(416.8)
331.1
595.0

*1 In addition to the balances shown in the above table, Other Securities included securities without fair values.
*2 Fair Value of Stocks is determined based on the average market prices during one-month periods before the balance sheet dates.
*3 Within Unrealized Gains and Losses, ¥32.9billion (Gains) was recognized in the Statement of Operations by apply fair-value hedging.

30¥(77.4)(74.1)
2.4(5.7)

Financial Analysis of Mizuho

Status of Asset Quality

Status of Asset Quality
 Credit-related Costs
Credit-related Costs (Consolidated)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Billions of yen

September 30, 2004 (a)Credit-related Costs
Expenses related to Portfolio Problems +Provision for (Reversal of) General Reserve
for Possible Losses on Loans
Losses on Write-offs of Loans
Provision for (Reversal of) Reserve for
Possible Losses on Loans
Credit Costs for Trust Accounts¥

September 30, 2003 (b)Change (a)-(b)298.8¥ 169.5¥ (198.0)(29.9)
138.4

292.8
209.5

165.6
83.6

(195.5)
54.7(184.0)
1.4

65.4
5.9

80.5
3.9

(264.5)(2.4)(28.4)March 31, 2004¥

Note: Credit-related Costs = Expenses related to Portfolio Problems + Provision for General Reserve for Possible Losses on Loans + Credit Costs for Trust Accounts

Credit-related Costs (the Three Banks)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Billions of yen

September 30, 2004 (a)Credit-related Costs
Expenses related to Portfolio Problems
Losses on Write-offs of Loans
Provision for Specific Reserve for
Possible Losses on Loans
Losses on Sales of Loans to CCPC
Reversal of Reserve for
Possible Losses on Loans Sold
Reversal of Reserve for Possible Losses on
Support of Specific Borrowers
Reversal of Reserve for Possible Losses on
Loans to Restructuring Countries
Provision for (Reversal of) Reserve for Contingencies
Other Losses on Sales of Loans
Provision for (Reversal of) General Reserve
for Possible Losses on Loans
Credit Costs for Trust Accounts¥

September 30, 2003 (b)Change (a)-(b)

237.9
363.6
173.1

¥ 131.4
113.6
65.7¥ (164.9)
100.3
72.6

62.1
—

184.3
0.7

57.7
0.6

4.3
(0.6)

—

(5.0)

(3.9)

3.9

—

(3.2)

(4.5)

4.5

(2.3)
(1.4)
17.1

(7.2)
(4.7)
25.6

(5.6)
0.9
2.7

3.3
(2.3)
14.4

(248.9)1.4(131.5)
5.9

13.8
3.9

(262.8)(2.4)(33.5)
213.9
138.3

March 31, 2004¥

Notes: 1. Credit-related Costs = Expenses related to Portfolio Problems + Provision for General Reserve for Possible Losses on Loans + Credit Costs for Trust Accounts
2. CCPC is the abbreviation for the Cooperative Credit Purchasing Company, Ltd.

31

Financial Analysis of Mizuho

Status of Asset Quality

 Status of Disclosed Claims under the Financial Reconstruction Law (FRL)
Disclosed Claims under the FRL (Consolidated)
At September 30, 2004 and 2003, and at March 31, 2004

Claims against Bankrupt and Substantially
Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Total

Billions of yen

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

¥

¥

¥

434.0
908.7
962.0
¥ 2,304.7

Change (a)-(b)466.1
1,084.1
1,719.4¥ 3,269.7

604.2
1,253.6
2,554.1¥ 4,412.1¥(32.1)(175.4)(757.3)¥ (964.9)

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 1,448.7¥ 1,379.0¥ 1,798.1

Notes: 1. Above figures don't include disclosed claims in Trust Accounts.
2. 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¥

Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Claims against Bankrupt and Substantially
Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Subtotal
Normal Claims
Total

September 30, 2004 (a)March 31, 2004 (b)

¥

400.2
862.5
961.9
2,224.7
68,570.8¥ 70,795.5

69.6

Billions of yen

September 30, 2003¥¥

Change (a)-(b)435.9
1,032.8
1,722.2
3,191.0
69,313.7¥ 72,504.7

548.6
1,218.9
2,568.4
4,336.070,291.9¥ 74,628.0¥(35.7)(170.2)(760.2)(966.2)(742.9)¥ (1,709.2)

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)¥ 1,237.6¥ 1,176.1¥ 1,555.3

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

¥

61.4

Ratio of Disclosed Claims under the FRL (the Three Banks) (Banking Accounts and Trust Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

Change (a)-(b)

0.56%
1.21
1.35
3.14
96.85
100.00%

0.60%
1.42
2.37
4.40
95.59
100.00%

0.73%
1.63
3.44
5.81
94.18
100.00%(0.03)%(0.20)(1.01)(1.25)
1.25.—

September 30, 2003

Change (a)-(b)Claims against Bankrupt and Substantially
Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention
Subtotal
Normal Claims
Total
Note: Above figures are presented net of partial direct write-offs.

Disclosed Claims under the FRL and Coverage Amount (the Three Banks) (Banking Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Claims against Bankrupt and Substantially
Bankrupt Obligors
Collateral, Guarantees, and equivalent
Reserve for Possible Losses
Claims with Collection Risk
Collateral, Guarantees, and equivalent
Reserve for Possible Losses
Claims for Special Attention
Collateral, Guarantees, and equivalent
Reserve for Possible Losses
Total
Collateral, guarantees, and equivalent
Reserve for Possible Losses

September 30, 2004 (a)

¥

396.9
356.4
40.4
860.1
355.6
353.8
959.0
372.4
237.6
¥ 2,216.1
1,084.6
631.9

Note: Above figures are presented net of partial direct write-offs.

32

March 31, 2004 (b)

¥

431.7
389.6
42.0
1,028.9409.9
488.8
1,706.6
726.5
406.8¥ 3,167.3
1,526.2
937.8

Billions of yen

¥

538.2
477.8
60.4
1,213.8
573.1
503.4
2,552.2
1,004.7
673.0¥ 4,304.3
2,055.6
1,236.8¥¥(34.7)(33.2)(1.5)(168.8)(54.2)(135.0)(747.5)(354.1)(169.1)(951.2)(441.6)(305.8)Financial Analysis of Mizuho

Status of Asset Quality

Status of Coverage on Disclosed Claims under the FRL (the Three Banks) (Banking Accounts)
At September 30, 2004 and 2003, and at March 31, 2004

Coverage AmountReserve for Possible Losses on Loans
Reserve for Possible Losses on Support ofSpecific Borrowers
Collateral, Guarantees, and equivalent
Coverage Ratio
Claims against Bankrupt and Substantially
Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)
Reserve Ratio against Non-collateralized Claims
Claims against Bankrupt and Substantially
Bankrupt Obligors
Claims with Collection Risk
Claims for Special Attention(Claims against Special Attention Obligors)(Reference) Reserve Ratio
Claims against Special Attention Obligors
Claims against Watch Obligors excluding
Claims against Special Attention Obligors
Claims against Normal Obligors

Billions of yen

September 30, 2004 (a)March 31, 2004 (b)September 30, 2003

¥ 1,716.5
631.9¥ 2,464.0
937.8¥ 3,292.5
1,218.5

Change (a)-(b)¥ (747.4)(305.8)—1,084.6
77.4%—
1,526.2
77.7%

18.3
2,055.6
76.4%—(441.6)(0.3)%

100.0
82.4
63.6
64.3

100.0
87.3
66.4
66.3

100.0
88.6
65.7
65.2

—
(4.8)
(2.7)
(1.9)

100.0%
70.1
40.5
42.2

100.0%
78.9
41.5
41.2

100.0%
78.5
43.4
42.3

—
(8.8)%(0.9)
0.9

26.02%

23.64%

25.57%

2.37%

9.66
0.12

10.38
0.13

9.09
0.15

(0.71)(0.01)

Note: Above figures are presented net of partial direct write-offs.

33

Financial Analysis of Mizuho

Status of Asset Quality

 Status of Loans by Industry
Outstanding Balances, Disclosed Claims under the FRL by Industry, and Coverage Ratio (the Three Banks)(Banking Accounts and Trust Acounts)

At September 30, 2004 and at March 31, 2004

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Government
Other
Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

September 30, 2004 (a)Outstanding
Disclosed
Coverage
Balance
ClaimsRatio
under the FRL¥ 61,375.5
8,058.4
47.8
1.4
8.2
124.4
1,743.3
1,149.9929.3
3,049.6
7,195.3
7,382.2
6,778.6
10,218.5
450.1
14,237.7¥ 2,116.3
188.5
1.5
—
1.7
0.7
167.0
0.7
13.9
28.7
551.8
43.6
531.1
283.8
—
302.7

3,986.9
170.7
412.6
3,403.5¥ 65,362.4

108.4
10.7
0.9
96.7
¥ 2,224.7

Outstanding
Balance

September 30, 2003
Disclosed
Claimsunder the FRL¥ 64,837.1
9,284.3
59.4
2.1
11.0
138.9
2,103.2
1,063.2
1,105.4
3,144.1
8,229.7
7,315.6
7,226.1
10,719.1
304.8
14,129.2
4,362.5
153.3
415.2
3,793.9¥ 69,199.6

Billions of yen

Outstanding
Balance

March 31, 2004 (b)Disclosed
Claimsunder the FRL

Coverage
Ratio

77.5%
80.6
92.6
—
100.0
99.9
64.6
100.4
54.3
74.3
74.2
96.0
82.5
69.3
—
85.9

¥ 63,570.9
8,860.3
55.1
1.9
8.8
125.8
1,963.0
1,031.4
1,111.3
3,151.1
7,834.7
7,445.7
6,931.2
10,368.7
413.3
14,267.8¥ 3,057.8
517.8
2.6
0.2
2.2
0.8
194.2
1.2
34.9
56.0
846.2
55.9
502.3
480.5
—
362.4

78.0%
85.3
97.2
50.7
92.0
99.3
68.4
93.7
76.3
72.7
77.9
54.0
82.4
67.8
—
84.4

76.4
26.0
90.5
81.9
77.4%

3,815.2
143.9
401.2
3,270.0¥ 67,386.2

133.1
10.7
1.0
121.3
¥ 3,191.0

74.1
25.4
83.3
78.4
77.7%

Coverage
Ratio

Outstanding
Balance

Change (a)-(b)Disclosed
Claimsunder the FRL

Coverage
Ratio¥ 4,110.5
602.0
1.7
0.4
2.8
4.0
359.9
6.8
34.8
79.5
977.5
144.8
797.6
619.3
—
478.8

76.5%
76.2
95.2
70.0
96.0
99.9
72.6
98.4
79.0
74.1
76.0
58.5
83.9
70.9
—
80.1

¥ (2,195.4)(801.8)
(7.2)
(0.4)
(0.6)
(1.4)
(219.7)118.4(182.0)(101.4)(639.3)(63.4)(152.6)(150.1)
36.7(30.1)¥ (941.4)(329.3)
(1.1)
(0.2)
(0.4)
(0.1)
(27.2)(0.4)(20.9)(27.2)(294.3)(12.2)
28.7(196.7)—(59.6)(0.4)%(4.6)(4.6)(50.7)
7.9
0.6
(3.7)
6.6
(22.0)
1.5
(3.6)
41.9
0.1
1.4
—
1.5

225.5
11.4
1.7
212.3
¥ 4,336.0

78.0
31.3
76.1
80.5
76.4%

171.6
26.7
11.3
133.5
¥ (2,023.7)(24.7)
0.0(0.0)(24.6)¥ (966.2)

2.2
0.5
7.2
3.5
(0.3)%

Billions of yen

At September 30, 2003

Domestic Total(excluding Loans Booked Offshore)
Manufacturing
Agriculture
Forestry
Fishery
MiningConstruction
Utilities
Communication
Transportation
Wholesale & Retail
Finance & Insurance
Real Estate
Service Industries
Local Government
Other
Overseas Total(including Loans Booked Offshore)
Governments
Financial Institutions
Other
Total

Notes: 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.

34

Financial Analysis of Mizuho

Status of Asset Quality

 Results of Removal of Non-performing Loans (NPLs) from the Balance Sheet
Outstanding Balances of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk
(under the FRL) (the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Amount Categorized as Problem Assets
before September 30, 2001

At September 30,
2001

At March 31,
2002

At September 30,
2002¥ 4,804.5¥ 2,113.6¥ 1,605.9

of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

1,595.9
3,208.6

Amount Newly Categorized as Problem Assets
during the Second Half of Fiscal 2001

¥

607.7

At September 30,
2003

¥

455.6

At March 31,
2004 (a)¥261.3

At September 30,
2004 (b)¥Change(b)-(a)170.1 ¥ (91.1)

514.5

266.1

216.7

132.9

96.8

(36.1)

812.2
1,301.4

640.2
965.7

330.9
276.7

261.4
194.2

148.6
112.6

113.1
57.0

(35.4)(55.6)

1,236.6

664.4

236.4

168.7

89.4

87.9

(1.4)

165.4

88.8

61.1

33.8

17.4

(16.4)

172.8
491.6

124.7
111.7

90.1
78.5

56.8
32.5

35.9
51.9

(20.8)
19.3

of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

At March 31,
2003

313.3
923.3

Amount Newly Categorized as Problem Assets
during the First Half of Fiscal 2002

589.1

226.5

149.2

78.9

44.5

(34.4)of which the amount in the processof being removed from the balance sheet

71.8

44.8

45.9

27.3

23.0

(4.3)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

85.0
504.0

70.2
156.2

69.0
80.2

31.4
47.5

23.7
20.7

(7.7)
(26.7)

Amount Newly Categorized as Problem Assets
during the Second Half of Fiscal 2002

809.5

603.5

321.0

187.8

(133.2)of which the amount in the processof being removed from the balance sheet

57.0

74.0

45.2

32.6

(12.6)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

89.1
720.3

82.1
521.4

83.4
237.6

62.9
124.9

(20.5)(112.6)

Amount Newly Categorized as Problem Assets
during the First Half of Fiscal 2003

390.3

192.0

95.3

(96.6)of which the amount in the processof being removed from the balance sheet

40.9

23.4

20.8

(2.5)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

45.7
344.5

28.1
163.9

23.5
71.8

(4.6)
(92.0)

Amount Newly Categorized as Problem Assets
during the Second Half of Fiscal 2003

525.9

161.1

(364.8)of which the amount in the processof being removed from the balance sheet

83.7

62.7

(21.0)

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

87.3
438.5

75.1
86.0

(12.2)(352.5)

Amount Newly Categorized as Problem Assets
during the First Half of Fiscal 2004

515.7

515.7

of which the amount in the processof being removed from the balance sheet

39.9

39.9

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

65.8
449.9

65.8
449.9

Total

¥ 4,804.5¥ 3,350.3¥ 2,859.6¥ 1,880.2¥ 1,767.6¥ 1,468.7

751.8

456.9

438.8

346.6

293.4

(53.2)

898.1
1,961.4

615.1
1,265.0

548.6
1,218.9435.9
1,032.8

400.2
862.5

(35.7)(170.2)of which the amount in the processof being removed from the balance sheet

Claims against Bankrupt andSubstantially Bankrupt Obligors
Claims with Collection Risk

1,595.9
3,208.6

1,125.5
2,224.835¥ 1,262.8 ¥ (205.9)

Financial Analysis of Mizuho

Status of Asset Quality

Progress in Removal of Problem Assets from the Balance Sheet (Accumulated Removal Amount and Removal Ratio)(the Three Banks) (Banking Accounts and Trust Accounts)
Billions of yen

AmountAs of September 30, 2001
Second Half of Fiscal 2001
First Half of Fiscal 2002
Second Half of Fiscal 2002
First Half of Fiscal 2003
Second Half of Fiscal 2003
First Half of Fiscal 2004
Total

Balance at
September 30,
2004¥ 4,804.5
1,236.6
589.1
809.5
390.3
525.9
515.7
¥ 8,871.9

Accumulated
RemovalAmountAccumulated
Removal
Ratio

ModifiedAccumulated
Removal Ratio

Target of the Emergency
Economic
Policy Package¥ 4,634.4
1,148.7
544.5
621.6
294.9
364.8
/
/

96.4%
92.8
92.4
76.7
75.5
69.3
/
/

98.4%
94.3
96.3
80.8
80.9
81.2
/
/

Almost completed
Almost completed
More than 80%
More than 80%
More than 50%
More than 50%
/
/

¥

170.1
87.9
44.5
187.8
95.3
161.1
515.7
¥ 1,262.8

Note: Modified accumulated removal ratios are based on the accumulated removal amount including the amount which was in the process of being removed from the balance sheet.

Breakdown of Reasons for Removal of Problem Assets from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounuts)

Billions of yen

Problem Assets Newly Categorized as Problem Assets
Accumulated as of Second Half ofFirst Half of Second Half ofFirst Half ofSeptember 30, 2001
Fiscal 2001
Fiscal 2002
Fiscal 2002
Fiscal 2003

Liquidation
Restructuring
Improvement in Business Performancedue to Restructuring
Securitization
Direct Write-off
Other
Debt Recovery
Improvement in Business Performance
Total

¥

¥

(16.8)(7.9)—(95.0)
70.1(41.4)(30.2)(11.1)(91.1)

¥

¥

(5.1)
(5.5)
—
(38.2)
38.4
9.1
18.8
(9.7)
(1.4)

¥

¥

(2.9)
(0.0)

¥

(0.6)
(105.9)—(25.5)
12.0(17.9)(13.0)(4.9)(34.4)—(50.0)
66.9(43.4)(23.4)(20.0)¥ (133.2)¥¥

Amount Removed
Second Half of from BS in the First
Fiscal 2003 Half of Fiscal 2004

(1.6)
(4.4)

¥

(0.1)
(15.4)(0.0)(15.5)(13.1)(61.7)(23.9)(37.8)(96.6)(0.5)(29.7)(45.7)(273.1)(88.9)(184.2)¥ (364.8)(Reference) Breakdown of Accumulated Amount Removed from the Balance Sheet(the Three Banks) (Banking Accounts and Trust Accounuts)

Liquidation
Restructuring
Improvement in Business Performancedue to Restructuring
Securitization
Direct Write-off
Other
Debt Recovery
Improvement in Business Performance
Total

¥

(557.5)(442.7)(14.6)(741.5)426.4(1,360.9)//¥ (2,690.9)¥(190.2)(235.2)(47.8)(237.9)324.6(693.2)(387.5)(305.7)¥ (1,079.8)*From the Second Half of Fiscal 2000 to the Second Half of Fiscal 2001.

36¥(214.5)(316.5)(58.7)(1,658.1)
1,010.7(551.5)(390.8)(160.7)¥ (1,788.8)¥(27.3)(139.5)(0.5)(254.1)128.6(428.7)(160.7)(267.9)¥ (721.7)

Billions of yen

Breakdown of Amount Removed
First Half of Second Half ofFirst Half of
Fiscal 2002
Fiscal 2002
Fiscal 2003

Up to September
30, 2001*¥

Second Half of
Fiscal 2003

AccumulatedFirst Half of from Second Half
Fiscal 2004 of Fiscal 2000

(20.6)(46.4)¥ (129.5)(320.8)¥(27.3)(139.5)¥ (1,139.7)(1,501.3)(6.4)(116.0)19.3(332.6)(224.2)(108.3)¥ (502.9)(43.9)(411.9)519.6(438.1)(313.7)(124.4)¥ (824.7)(0.5)(254.1)128.6(428.7)(160.7)(267.9)¥ (721.7)(172.2)(3,419.8)
2,429.5(3,805.3)//¥ (7,609.1)

Financial Analysis of Mizuho

Status of Asset Quality

 Overview of Disclosure of NPLs at September 30, 2004 (the Three Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Categorization

Category I(Non-Categorization) Category II

Bankrupt and Substantially
Bankrupt Obligors
396.9

Collateral, Guarantees, etc.:
356.4
Reserve for Possible Losses:
40.4

Reserve
Ratio
100%

709.5

150.6

Collateral, Guarantees, etc.:
355.6
Reserve for Possible Losses:
353.8

Reserve
Ratio
70.1%

ObligorCategory III

Category IV(Non-Collateralized)

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

DirectWrite-offs

Claims against Bankrupt
and Substantially Bankrupt
Obligors
396.9

Loans to Bankrupt Obligors
125.3

396.9

Watch Obligors

Intensive Control
Obligors
860.1

Claims for Special
Attention
959.0

Reserve Ratio for
Uncoverd Portion
40.5%
Collateral, Guarantees, etc.:
372.4
Reserve for Possible Losses:
237.6

Coverage Ratio 100%
Claims with Collection Risk
860.1

Non-Accrual
Delinquent Loans
1,091.8

Coverage Ratio 82.4%
40.1 (Note 2)

Claims against Special Attention Obligors·Coverage Ratio: 64.3%·Reserve Ratio for Un-covered Portion: 42.2%·Reserve Ratio against Entire Claim: 26.0%

Claims for Special Attention(Note 1) 959.0
Coverage Ratio 63.6%

Loans Past Due for 3 Months
or More 32.4

Restructured Loans
926.2(Special Attention Obligors)
Other Watch Obligors
Normal Obligors

Reserve Ratio against Total Claims·Other Watch Obligors 9.66%·Normal Obligors 0.12%

Total Coverage
Ratio 77.4%

Total
2,216.1

Total
70,307.5

Total
2,175.9

Notes: 1. Claims for Special Attention includes loans only.
Claims against Special Attention Obligors includes all claims, not limited to loans, against Special Attention Obligors.
2. The difference between total Non-Accrual, Past Due and Restructuring Loans and total Disclosed Claims under the FRL represents claims other than loans included in Disclosed Claims under the FRL.

37

Consolidated Financial Statements of Mizuho Financial Group, Inc.

Consolidated Balance Sheets
At September 30, 2004 and 2003, and at March 31, 2004

AssetsCash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposit Paid under Securities
Borrowing Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Premises and Equipment
Deferred Debenture Charges
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets
Liabilities, Minority Interests and Shareholders' Equity
Liabilities
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposit Received under Securities
Lending Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Due to Trust Account
Other Liabilities
Reserve for Bonus Payments
Reserve for Employee Retirement Benefits
Reserve for Possible Losses on Loans Sold
Reserve for Contingencies
Reserve under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Minority Interests

September 30, 2004¥

Millions of yen
March 31, 2004

September 30, 2003

5,442,843
219,257
4,114,679¥ 6,813,510
1,008,716
4,392,105

8,882,518
806,854
11,027,377
23,61233,267,393
64,296,977
694,628
5,539,225
1,086,638
301
1,238,533
4,047,681(1,360,108)(1,245)
139,327,169

7,970,608
835,573
8,016,509
27,86332,071,624
66,205,868
608,792
5,496,845
1,143,807
446
1,361,766
3,647,613(1,850,586)(975)
137,750,091

7,682,677
942,770
9,150,593
32,13827,156,529
67,990,151
730,491
5,318,127
1,557,180
765
1,672,098
3,923,369(2,181,117)(4,977)
135,484,694

79,986,663
7,265,688
99,301,015
212,626
299,571,305
578,991,239
6,255,093
49,880,466
9,785,129
2,712
11,152,940
36,449,182(12,247,708)(11,218)
1,254,634,577

76,049,315
8,461,535
8,457,918
8,301,479

77,487,475
9,459,514
8,680,595
8,031,106

74,329,790
10,705,987
9,330,788
6,879,857

684,820,493
76,195,723
76,163,158
74,754,432

8,445,778
1,257,000
7,827,309
2,054,115
253,841
180,200
2,378,089
1,317,356
5,275,286
27,36734,909—131,341
1,603
30,064
149,036
4,047,681
134,681,230¥ 1,108,342

8,161,802
837,800
6,070,833
1,643,343
352,136
180,000
2,359,370
1,360,532
4,406,174
37,917
31,979—132,739
1,372
28,792
158,467
3,647,613
133,069,567¥ 1,036,127

8,203,716
781,500
6,527,425
1,473,260
229,31570,0002,364,428
1,332,829
4,537,370
28,08628,924
6,465
142,103
1,016
15,694
252,417
3,923,369
131,164,349¥ 1,045,607

76,053,832
11,319,226
70,484,555
18,497,213
2,285,828
1,622,692
21,414,587
11,862,734
47,503,707
246,439
314,354—
1,182,728
14,437
270,728
1,342,063
36,449,182
1,212,798,111$
9,980,571

38¥

7,012,827
446,948
4,054,119

Thousands of U.S. dollars
September 30, 2004$

49,012,549
1,974,405
37,052,491

Consolidated Financial Statements of Mizuho Financial Group, Inc.

(continued)
At September 30, 2004 and 2003, and at March 31, 2004

Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Retained Earnings
Revaluation Reserve for Land, net of Taxes
Net Unrealized Gains on Other Securities,
net of Taxes
Foreign Currency Translation Adjustments
Treasury Stock
Total Shareholders' Equity
Total Liabilities, Minority Interests andShareholders' Equity

September 30, 2004¥

1,540,965
1,022,559
636,031217,971

Millions of yen
March 31, 2004¥

1,540,965
1,262,526
462,594
231,739

September 30, 2003¥

1,540,965
1,262,267
173,583
369,212

Thousands of U.S. dollars
September 30, 2004$

13,876,317
9,208,103
5,727,437
1,962,823

350,491(96,156)(134,265)
3,537,597

392,772(112,067)(134,134)
3,644,396

142,410(79,562)(134,139)
3,274,737

3,156,158(865,886)(1,209,057)
31,855,895¥ 139,327,169¥ 137,750,091¥ 135,484,694$ 1,254,634,577

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.05=US$1.00, the foreign exchange rate on September 30, 2004, has been used for translation.

39

Consolidated Financial Statements of Mizuho Financial Group, Inc.

Consolidated Statements of Operations
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004

IncomeInterest Income
Fiduciary Income
Fee and Commission Income
Trading Income
Other Operating Income
Other Income
Total Income
Expenses
Interest Expenses
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses
Total Expenses
Income before Income Taxes and Minority Interests
Income Taxes:
Current
Deferred
Minority Interests in Net Income
Net Income¥¥

Millions of yen
March 31, 2004

September 30, 2003

776,962
26,776
268,036
70,009170,938
362,906
1,675,631¥ 1,622,704
62,064515,377
232,455
406,481503,872
3,342,957

212,383
52,858—86,205563,053
332,048
1,246,550
429,080

437,703
88,762651
199,620
1,125,905
609,073
2,461,716
881,240

238,432
48,760—
119,398
572,175
311,829
1,290,594
577,093

1,912,507
475,989—
776,2815,070,270
2,990,081
11,225,128
3,863,851

18,961
148,438
27,739233,941

28,055
387,855
58,347
406,982

22,107
268,601
30,987
255,397

170,748
1,336,680
249,790
2,106,633¥¥¥

823,600
26,846245,161
129,113279,267
363,698
1,867,688

Thousands of U.S. dollars
September 30, 2004$$

6,996,514
241,1222,413,658
630,435
1,539,297
3,267,953
15,088,979

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.05=US$1.00, the foreign exchange rate on September 30, 2004, has been used for translation.

Consolidated Statements of Capital Surplus and Retained Earnings
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

Millions of yen
March 31, 2004

September 30, 2003

Thousands of U.S. dollars
September 30, 2004

¥ 1,262,526
16
239,982
1,022,559¥ 2,599,552
269
1,337,295
1,262,526¥ 2,599,552
11
1,337,295
1,262,267$ 11,368,987
148
2,161,032
9,208,103

462,594
13,77674,280233,941
636,031(1,404,992)
1,482,752
22,147
406,982¥ 462,594(1,404,992)
1,345,325
22,147
255,397¥ 173,583

4,165,643
124,057
668,896
2,106,633
5,727,437

September 30, 2004

Capital Surplus
Balance at the Beginning of the Interim Period (the Year)
Increase
Decrease
Balance at the End of the Interim Period (the Year)
Retained Earnings (Deficit)
Balance at the Beginning of the Interim Period (the Year)
Increase
Decrease
Net Income
Balance at the End of the Interim Period (the Year)¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.05=US$1.00, the foreign exchange rate on September 30, 2004, has been used for translation.

40$

Consolidated Financial Statements of Mizuho Financial Group, Inc.

Consolidated Statements of Cash Flows
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004

I. Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests¥
429,080
Depreciation
66,541
Loss on Impairment of Fixed Assets
43,510
Amortization of Consolidation Differences(0)
Equity in Income from Investments in Affiliates(2,017)
Decrease in Reserve for Possible Losses on Loans(490,260)
Increase (Decrease) in Reserve for Possible
Losses on Investments
269
Decrease in Reserve for Possible Losses on Loans Sold—
Increase (Decrease) in Reserve for Contingencies(1,397)
Increase (Decrease) in Reserve for Bonus Payments(11,122)
Increase in Reserve for Employee Retirement Benefits
2,929Interest Income—accrual basis(776,962)
Interest Expenses—accrual basis
212,383
Gains on Securities(87,337)
Gains on Money Held in Trust(317)
Foreign Exchange Losses—net
144
Losses (Gains) on Disposal of Premises and Equipment(8,612)
Gains on Establishment of Employee Retirement Benefit Trusts—
Net Decrease (Increase) in Trading Assets(2,940,354)
Net Increase (Decrease) in Trading Liabilities
1,720,131
Net Decrease in Loans and Bills Discounted
2,006,529
Net Increase (Decrease) in Deposits(1,438,766)
Net Decrease in Debentures(excluding Subordinated Debentures)(997,979)
Net Increase in Borrowed Money(excluding Subordinated Borrowed Money)
421,383
Net Increase in Due from Banks(excluding Deposits with Central Banks)(379,452)
Net Decrease (Increase) in Call Loans etc.
1,287,354
Net Increase in Guarantee Deposits Paid under
Securities Borrowing Transactions(911,909)
Net Decrease in Call Money etc.
(159,085)
Net Increase in Commercial Paper
419,200
Net Increase in Guarantee Deposits Received under
Securities Lending Transactions
283,975
Net Decrease (Increase) in Foreign Exchange Assets(85,700)
Net Increase (Decrease) in Foreign Exchange Liabilities(98,302)
Net Increase in Short-term Bonds (Liabilities)
200
Net Increase (Decrease) in Bonds and Notes
33,387
Net Decrease in Due to Trust Account(43,175)
Interest and Dividend Income—cash basis
800,485
Interest Expenses—cash basis(215,942)
Other—net
105,503
Subtotal(815,684)
Cash Paid in Income Taxes(64,526)
Net Cash Provided by (Used in)Operating Activities¥ (880,211)

41

Millions of yen
March 31, 2004¥

881,240
139,863—(239)(1,761)(360,299)

September 30, 2003¥

577,093
69,911—(90)(1,203)(26,811)

Thousands of U.S. dollars
September 30, 2004$

3,863,851
599,201
391,808(0)(18,165)(4,414,773)(4,180)(25,561)(8,384)
1,105
18,876(1,622,704)
437,703(336,609)(417)
10,190120,592(60,677)
1,991,740(270,856)
2,911,383
5,605,562(178)(19,096)
978(9,247)
15,821(823,600)
238,432(252,766)(266)
21,34835,809(60,474)
822,346
214,478
1,004,473
2,491,904

2,431—(12,582)(100,154)
26,383(6,996,514)
1,912,507(786,473)(2,856)
1,298(77,554)—(26,477,756)
15,489,703
18,068,705(12,956,024)(2,236,876)(990,403)(8,986,755)

100,974

20,9203,794,542(648,501)(485,485)(70,836)
316,395(3,416,956)
11,592,567(1,672,887)(2,816,946)
210,400(1,384,955)(3,359,375)
154,100(8,211,706)(1,432,555)
3,774,876

4,021,419
93,566
163,902
180,000
34,078(128,931)
1,664,000(488,800)(1,373,879)
6,042,599(27,657)

4,063,333(28,425)
41,55470,000(5,814)(156,634)
878,892(282,097)(518,193)
3,047,322(13,526)

2,557,185(771,730)(885,211)
1,801
300,656(388,795)
7,208,337(1,944,553)
950,057(7,345,204)(581,056)¥ 6,014,942¥ 3,033,795$(7,926,260)

Consolidated Financial Statements of Mizuho Financial Group, Inc.

(continued)
For the Six Months ended September 30, 2004 and 2003,
and for the Fiscal Year ended March 31, 2004

September 30, 2004

II. Cash Flow from Investing Activities
Payments for Purchase of Securities¥ (32,976,401)
Proceeds from Sale of Securities
16,209,146
Proceeds from Redemption of Securities
16,210,627
Payments for Increase in Money Held in Trust(12,571)
Proceeds from Decrease in Money Held in Trust
16,691
Payments for Purchase of Premises and Equipment(28,045)
Proceeds from Sale of Premises and Equipment
40,959Payments for Purchase of Stocks of Subsidiaries(affecting the scope of consolidation)—
Proceeds from Sales of Stocks of Subsidiaries(affecting the scope of consolidation)—
Net Cash Used in Investing Activities(539,594)
III. Cash Flow from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money
30,000
Repayments of Subordinated Borrowed Money(41,450)
Proceeds from Issuance of Subordinated Bonds
305,610
Payments for Redemption of Subordinated Bonds(353,700)
Payments for Redemption of Subordinated Bonds,
Notes and Bonds with Stock Options—
Proceeds from Investments in Minority Interests
75,010
Dividends Paid
(74,280)
Dividends Paid to Minority Interests(35,161)
Payments for Purchase of Treasury Stock(240,157)
Proceeds from Sales of Treasury Stock
44
Net Cash Used in Financing Activities(334,085)
IV. Effect of Exchange Rate Changes on Cashand Cash Equivalents(153)
V. Net Decrease in Cash and Cash Equivalents(1,754,044)
VI. Cash and Cash Equivalents at the Beginning of
the Interim Period (the Year)5,529,664
VII. Net Decrease in Cash and Cash Equivalents
Resulted from Exclusion of Subsidiaries fromthe Scope of Consolidation—
VIII. Cash and Cash Equivalents at the Endof the Interim Period (the Year)¥3,775,619

Millions of yen
March 31, 2004

September 30, 2003

Thousands of U.S. dollars
September 30, 2004

¥ (71,932,830)
46,486,466
17,704,694(14,899)
25,784(95,971)374,085¥ (35,053,167)
23,700,305
7,712,650(5,117)
7,899(22,572)
17,157$ (296,950,932)
145,962,597
145,975,932(113,210)
150,308(252,548)
368,834

(258)

—

—

50,716(7,402,213)

50,716(3,592,128)—(4,859,019)

90,000(15,000)
601,406—

10,109(10,000)
11,800—270,149(373,264)
2,752,008(3,185,052)(731,797)—(22,147)(53,497)(166)
208(130,994)(115,697)—(22,147)(35,758)(35)—(161,729)—
675,462(668,896)(316,624)(2,162,609)
397(3,008,429)(381)(1,518,647)(792)(720,855)(1,383)(15,795,091)

7,048,505

7,048,505

49,794,369

(193)

—

—

¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥111.05=US$1.00, the foreign exchange rate on September 30, 2004, has been used for translation.

42

5,529,664¥

6,327,649$

33,999,278

Office Network of Mizuho

Domestic Network of Mizuho(as of September 30, 2004)

Mizuho Financial Group

Mizuho Corporate Bank

Mizuho Securities

Head Office

Head Office and Branches: 18

Head OfficeMizuho Bank

Mizuho Trust & Banking

Head Office and Branches: 528
Sub-branches: 99
Agencies: 18

Head Office and Branches: 37
Sub-branch: 1

International Network of Mizuho

Asia and Oceania(Country/Region)
China

Beijing Branch(as of December 31, 2004)

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

Mizuho Capital Markets (HK) Limited

8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6525-1888

16th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2537-3815

Dalian Branch

17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2103-3040

6th Floor, Senmao Building, Zhongshan
Road 147, Xigang District, Dalian 116011,
The People's Republic of China
TEL 86-411-8360-2543

Shanghai Branch
25th Floor, HSBC TOWER, 101 Yin Cheng
East Road, Pudong New Area, Shanghai
200120, The People's Republic of China
TEL 86-21-6841-0001

Mizuho Corporate Asia (HK) Limited

Mizuho Securities Asia Limited*
Suites 901-907, CITIC Tower,
1 Tim Mei Avenue, Central, Hong Kong, S.A.R.,
The People's Republic of China
TEL 852-2685-2000

Mumbai Branch

21st Floor, Shenzhen International Financial Building,
Jian She Lu, Shenzhen, Guangdong Province,
The People's Republic of China
TEL 86-755-8222-1918

Maker Chamber III, 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400021 India
TEL 91-22-2288-6638

12th Floor, Garden Tower, 368 Huanshi
Dong Lu, Guangzhou 510064,
The People's Republic of China
TEL 86-20-8385-8000

New Delhi Representative Office
DBS Business Centre, 1st Floor, World Trade Tower,
Barakhamba Lane, New Delhi 110 001 India
TEL 91-11-2341-2190

PT. Bank Mizuho Indonesia

Room 801, Nanjing Grand Hotel, 208 Guangzhou
Road, Nanjing, Jiangsu Province,
The People's Republic of China
TEL 86-25-8332-9379

Plaza Bll Menara 2, 24th Floor, JL., M.H. Thamrin
No. 51, Jakarta 10350, Indonesia
TEL 62-21-392-5222

Room 2202, Tianjin International Building 75,
Nanjing Road, Tianjin,
The People's Republic of China
TEL 86-22-2330-5448

Wuhan Representative Office
Room 411, Shangri-la Hotel, 700 Jian She Dadao,
Wuhan 430015, The People's Republic of China
TEL 86-27-8578-1155

Xiamen Representative Office
Room 2102, The Bank Center,
No.189 Xiahe Road, Xiamen, Fujian,
The People's Republic of China
TEL 86-592-239-5571(ext. 2102)

Kuala Lumpur Representative Office
Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6595

Philippines

Manila Branch
26th Floor, Citibank Tower, Valero Street corner
Villar Street, Salcedo Village, Makati City,
Metro Manila, Philippines
TEL 63-2-848-0001

Singapore

Singapore Branch

Mizuho Futures (Singapore) Pte.
Limited*Six Battery Road, #18-05 Singapore 049909,
Republic of Singapore
TEL 65-6221-3633

TaiwanKaohsiung BranchIndonesia

Nanjing Representative Office

Tianjin Representative Office

Level 34, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

168 Robinson Road, #13-00 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

India

Shenzhen Branch

Guangzhou Representative Office

Labuan Branch, Kuala Lumpur
Marketing Office

Korea

Seoul Branch

12th Floor, No.2, Chung Cheng 3rd Road,
Kaohsiung 800, Taiwan
TEL 886-7-236-8768

Taipei Branch
2nd Floor, Hung Kuo Building, 167 Tun Hua
North Road, Taipei 105, Taiwan
TEL 886-2-2715-3911

Thailand8th Floor, Seoul City Tower, 581, Namdaemunro,
5-ka, Chung-ku, 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

Note: All overseas offices are those of Mizuho Corporate Bank except for offices as indicated as follows:* Subsidiary of Mizuho Securities** Subsidiary of Mizuho Trust & Banking*** Subsidiary of DLIBJ Asset Management43

Bangkok Branch
18th Floor, TISCO Tower, 48 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0200

Mizuho Corporate Leasing (Thailand)Co., Ltd.
19th Floor, TISCO Tower 48/44 North Sathorn Road,
Silom, Bangrak, Bangkok 10500, Thailand
TEL 66-2-638-0900

Office Network of Mizuho

VietnamUnited Kingdom

U.S.A.

Hanoi Branch

London Branch

Chicago Branch

Suite 403~407, 63 LTT Building,
63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-9363-123

River Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, UK
TEL 44-20-7012-4000

311 South Wacker Drive, Suite 2020,
Chicago, IL 60606-6620, U.S.A.
TEL 1-312-855-1111

Ho Chi Minh City Representative Office

DLIBJ Asset Management International
Ltd.***New York Branch

7th Floor, The Landmark, 5B Ton Duc Thang Street,
District 1, Ho Chi Minh City,
Socialist Republic of Vietnam
TEL 84-8-8228-638

Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7329-3777

Australia

Sydney Branch
Level 33, 60 Margaret Street, Sydney, N.S.W. 2000,
Australia
TEL 61-2-8273-3888

Europe and The Middle East(Country/Region)
AustriaMizuho Corporate Bank-BA
Investment Consulting GmbH
Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

FranceParis Branch
Washington Plaza 40, rue Washington, 75408 Paris
Cedex 08, France
TEL 33-1-5383-4100

Germany

Düsseldorf Branch

Mizuho Capital Markets (UK) LimitedRiver Plate House, 7-11 Finsbury Circus,
London EC2M 7DH, UK
TEL 44-20-7972-9900

Bracken House, One Friday Street,
London EC4M 9JA, UK
TEL 44-20-7236-1090

1133 Avenue of the Americas, 28th Floor,
New York, NY 10036, U.S.A.
TEL 1-212-350-7650

Mizuho Capital Markets Corporation

Bahrain

Bahrain Representative Office
Suite 201-202, Entrance 4,
2nd Floor, Manama Center, Manama, Bahrain(P.O. BOX 5759, Manama, Bahrain)
TEL 973-17-224522

Iran

Switzerland

Mizuho Bank (Switzerland) Ltd.*
Loewenstrasse 32, 8023 Zurich, Switzerland
TEL 41-1-216-9111

The Netherlands

Mizuho Corporate Bank Nederland N.V.
Apollolaan 171, 1077 AS, Amsterdam,
The Netherlands
TEL 31-20-5734343

Mizuho Corporate Bank of California
350 South Grand Avenue,
Suite 1500, Los Angeles, CA 90071, U.S.A.
TEL 1-213-612-2700

Mizuho Corporate Bank (USA)

3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-872-6593

1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3030

Mizuho Securities USA Inc.*

The Americas(Country/Region)

Waterfront Corporate Center, 111 River Street,
11th Floor, Hoboken, NJ 07030, U.S.A.
TEL 1-201-626-1000

Mizuho Trust & Banking Co. (USA) **BrazilAvenida Paulista, 1274-11° andar, CEP. 01310-926,
São Paulo, SP, Brazil
TEL 55-11-3251-4199

1B, Parc d'Activité Syrdall, L-5365 Munsbach,Luxembourg
TEL 352-4216171

1440 Broadway, 25th Floor,
New York, NY 10018, U.S.A.
TEL 1-212-547-1500

Tehran Representative OfficeMizuho Corporate Bank (Germany)
Aktiengesellschaft

Mizuho Trust & Banking (Luxembourg)
S.A.**

350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, U.S.A.
TEL 1-213-243-4500

DLIBJ Asset Management U.S.A.
Inc.***

São Paulo Representative Office

Luxembourg

Los Angeles Agency

Mizuho International plc*

Königsallee 60 D, 40212 Düsseldorf,
F.R. Germany
TEL 49-211-13020

Taunustor 2, 60311 Frankfurt am Main,
F.R. Germany
TEL 49-69-27282-0

1251 Avenue of the Americas,
New York, NY 10020, U.S.A.
TEL 1-212-282-3000

CanadaMizuho Corporate Bank (Canada)
100 Yonge Street, Suite1102, Toronto, Ontario,
Canada M5C 2W1
TEL 1-416-874-0222

CaymanCayman Branch
Coutts House, 1446 West Bay Road,
P.O. Box 707GT, Grand Cayman, Cayman Islands,
British West Indies

MexicoMexico Representative Office
Edificio Omega, Campos Eliseos No.345-11,
Col. Chapultepec Polanco, Deleg. MiguelHidalgo, 11560 Mexico, D.F., Mexico
TEL 52-55-5281-5037

44

666 Fifth Avenue, Suite 802,
New York, NY 10103 , U.S.A.
TEL 1-212-373-5900

The Bridgeford Group, Inc.*
445 Park Avenue, 20th Floor,
New York, NY 10022, U.S.A.
TEL 1-212-705-0880

Investor Information on Mizuho Financial Group, Inc.

reported to be as shown in the table below. However, Mizuho
Financial Group, Inc. could not confirm the number of shares effectively held by these entities as of the end of the interim fiscal period,
and as such, their holdings are not included in the above table. It
should be noted that, while The Resolution and Collection
Corporation is named as a joint shareholder in the aforementioned
Notification of Change in Shareholdings, the details of the shares
listed as being held by The Resolution and Collection Corporation in
the Report on Large Shareholdings matches the information in the
Mizuho Financial Group's shareholder registry for preferred stock as at
the end of the subject fiscal period. Accordingly, the shareholdings of
The Resolution and Collection Corporation is not listed in the tablebelow.

Date of Establishment
January 8, 2003

Paid-in Capital¥1,540,965 million

Outstanding Shares
13,846,299.15 shares
Common Shares: 11,938,169.15 shares
Preferred Shares:
1,908,130 shares

Content of the Notification of Change in Shareholdings:
Number of Shares Held
Name
Addressor Effectively Held%
Resona Trust & Banking Co., ltd. 1-1-2, Otemachi, Chiyoda-ku, Tokyo
107,202 0.77
Deposit Insurance Corporation 1-12-1,Yurakucho, Chiyoda-ku, Tokyo
120,319 0.86

Number of Shareholders
Common Shares:
Preferred Shares:

272,100
3,415

Note: The figures for “Number of Shares Held” and “%” in the table
above were copied from the Notification of Change inShareholdings.

Principal Shareholders(Common Stock)Mizuho Holdings, Inc.

Shares held

Percentageof shares
outstanding(%)

1,155,840.83

9.68

The Master Trust Bank of Japan, Ltd.
(Trustee account)

567,530.00

4.75

Japan Trustee Services Bank, Ltd.
(Trustee account)

512,058.00

4.28

ROYAL TRUST CORPORATIONOF CANADA, LONDON-CLIENTSACCOUNT(Standing proxy agent:Standard Chartered Bank)

463,990.00

3.88

The Dai-ichi Mutual Life Insurance
Company

279,158.00

2.33

Trust & Custody Services Bank, Ltd.
(Meiji Yasuda Life Insurance Company
Retirement Benefit Trust Accountre-entrusted by Mizuho Trust &Banking Co., Ltd.)
137,000.00
Nippon Life Insurance Company

132,630.76(Preferred Stock)

Shares held

Percentageof shares
outstanding(%)

The Resolution and Collection
Corporation

923,000

48.37

The Dai-ichi Mutual Life Insurance
Company

27,0001.41

Meiji Yasuda Life Insurance Company

25,0001.31

Sompo Japan Insurance Inc.

19,500

1.02

FUKOKU MUTUAL LIFE INSURANCECOMPANY

15,0000.78

ITOCHU Corporation

10,0000.52

THE KANSAI ELECTRIC POWER CO., INC. 10,000

0.52

Shiseido Company, Limited

10,0000.52

1.14

SHIMIZU CORPORATION

10,0000.52

1.11

Seiko Epson Corporation

10,000

0.52

TAISEI CORPORATION

10,0000.52

Electric Power Development Co., Ltd.

10,0000.52

DRESDNER BANK AG(Standing proxy agent:
Dresdner Kleinwort Wasserstein(Japan) Limited, Tokyo Branch)

122,671.00

1.02

Asahi Mutual Life Insurance
Company

The Tokyo Electric Power Company,
Incorporated

10,0000.52

110,000.00

0.92

Nippon Express Co., Ltd.

10,0000.52

Marubeni Corporation

10,0000.52

STATE STREET BANK AND TRUSTCOMPANY 505103(Standing proxy agent:Mizuho Corporate Bank, Ltd.)105,892.00

Note: In the table above, the figure for the number of preferred stocks held by
The Resolution and Collection Corporation is the total for the Second
Series to the Fourth Series of Preferred Stock and the Sixth Series to theTenth Series of Preferred Stock. For other companies, the figures represent the totals for the Eleventh Series to the Thirteenth Series of Preferred
Stock.

0.88

Notes: 1.The voting rights of the shares held by Mizuho Holdings, Inc. are
restricted, pursuant to Article 241, Paragraph 3, of the JapaneseCommercial Code.
2.A Notification of Change in Shareholdings concerning the Report on
Large Shareholdings in which Resona Trust & Banking Co., Ltd.,
Deposit Insurance Corporation of Japan, and The Resolution andCollection Corporation are named as joint shareholders was submittedwith a date of September 8, 2004, and the number of shares held byResona Trust & Banking Co., Ltd. and the Deposit Insurance
Corporation of Japan respectively as of the aforementioned date was45

Investor Information on Mizuho Financial Group, Inc.

Stock Listings
Tokyo Stock Exchange
Osaka Securities Exchange

Accounting Auditors
Ernst & Young ShinNihon

Transfer Agent
Mizuho Trust & Banking Co., Ltd.

Fiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
A regular general meeting of shareholders of the Company
shall be convened no later than 3 months from the last dayof each business year and an extraordinary general meetingof shareholders shall be convened whenever necessary.

Record Date
The Company shall deem shareholders having voting rights
appearing in writing or digitally on the last register of shareholders (including the register of beneficial shareholders; thesame shall apply hereinafter) as of March 31 of each year as
the shareholders who shall be entitled to exercise their rights
at the regular general meeting of shareholders for the relevant fiscal term.
In addition to the preceding paragraph, the Company may
temporarily set the record date whenever necessary, pursuant
to a resolution of the Board of Directors and upon giving aprior public notice thereof.

Dividends
Dividends on shares shall be paid to the shareholders or
registered pledgees appearing in writing or digitally on thelast register of shareholders as of March 31 of each year or tothe holders of fractional shares appearing in writing or digitally on the last register of holders of fractional shares as ofMarch 31 of each year.

Interim Dividends
The Company may, by a resolution of the Board of Directors,
make cash distributions pursuant to the provisions of Article
293-5 of the Commercial Code (referred to as “Interim
Dividends” in these Articles of Incorporation) to the shareholders or registered pledgees appearing in writing or digitallyon the last register of shareholders as of September 30 ofeach year or to the holders of fractional shares appearing inwriting or digitally on the last register of holders of fractional
shares as of September 30 of each year.
(as of September 30, 2004)

46

Contact Information

Mizuho Financial Group, Inc.
1-5-5, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5224-1111
URL: http://www.mizuho-fg.co.jp/

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

Mizuho Bank, Ltd.
1-1-5, Uchisaiwaicho,
Chiyoda-ku, Tokyo 100-0011,
Japan
Tel. +81-(0)3-3596-1111
URL: http://www.mizuhobank.co.jp/

Mizuho Securities Co., Ltd.
Otemachi First Square,
1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004,
Japan
Tel. +81-(0)3-5208-3210
URL: http://www.mizuho-sc.com/

Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu,
Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
URL: http://www.mizuho-tb.co.jp/

This report contains statements concerning the group's future performance.
These statements, however, do not guarantee the ultimate outcome of the group's
performance in the future, and take into consideration the risks and uncertainties that
may be caused by such factors as changes in the business environment.

47