2014 Annual Review

Contents

pageMessage from the Management

2

Mizuho's Group Companies

7

Office Network

10

Summary of Financial Results for Fiscal 201312

Progress of the First Year of the Medium-term Business Plan
“One MIZUHO New Frontier Plan—Stepping Up to the Next Challenge—”

15

Enhancement of Corporate Governance18

Business Approaches

21

Initiatives to Support the Recovery from the Great East Japan Earthquake

34

CSR Initiatives

35

Corporate Governance, Profit Management System, Human Resources System

38

Internal Control Systems

45

Senior Executives

66

Location of Overseas Offices

68

Investor Information

71

Disclosure Policy, Privacy Policy Regarding Customer Information

73

Financial Analysis [Under Japanese GAAP]
Financial Data of Mizuho Financial Group, Inc. [Under Japanese GAAP]
Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries [Under Japanese GAAP]
Status of Capital Adequacy

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

Forward-Looking Statements
This Annual Review contains statements that constitute forward-looking statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee bymanagement of future performance.
In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,”“probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forwardlooking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.
We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible
reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest
rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans;a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintainrequired capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Mediumterm Business Plan, realize the synergy effects of “One MIZUHO,” and implement other strategic initiatives and measures effectively; the effectivenessof our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; andchanges to applicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is
included in “Item 3.D. Key Information—Risk Factors,” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F
filed with the U.S. Securities and Exchange Commission (“SEC”). In addition, information regarding market developments after March 31, 2014 andtheir effects on our financial condition and results of operations is included in the report on Form 6-K furnished to the SEC on July 31, 2014 containing financial information for the first quarter of this fiscal year under accounting principles generally accepted in Japan. These reports are available in
the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC's website at www.sec.gov.
The contents of this Annual Review were prepared prior to the announcement of our financial results for the first quarter of fiscal 2014.
We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter ourforward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo
Stock Exchange.

1Message from the Management

attention to geopolitical risks as seen in the situation in
Ukraine and other countries.
In Japan, corporate performance is improving, while
moderate recovery in the economy continues due to theimproved export cost-competitiveness following thedepreciation of the yen against other currencies and theeffects of economic measures and monetary policies aswell as other factors. Although there may be a short-lived
drop in the economy due to the rise in consumption tax,
the Japanese economy is expected to pick up gradually.

Summary of Financial Results for Fiscal 2013

I would like to express our deep appreciation for yourcontinued interest in and support of our group.

Domestic and International Economic
Environment
Reviewing the recent economic environment, the global
economy and the major industrialized countries in particular, have potential for continuing moderate recovery.
In the United States, moderate recovery in the economy continues; however, attention must be given to theimpact of the tapering of the monetary easing policy, andother factors. In Europe, although the debt problem andhigh unemployment rates continue, economic conditions
are recovering along with improvement in corporate performance in the Euro area as well as the continued firm
recovery in the United Kingdom. In China, on the other
hand, the economy is slowing compared to previous
growth rates, and careful attention should be paid tofuture trends. The economies of some other emerging
countries continue to report weak trends, and there areconcerns that their growth may lose its momentum for thetime being. This is because restrained monetary policies
are likely to be undertaken due to currency depreciationand concern of inflation. We also need to continue to pay

2

Amid this environment, with fiscal 2013 being the firstyear of our three-year medium-term business plan, the“One MIZUHO New Frontier Plan—Stepping up to the
Next Challenge—,“ we have been implementing an integrated strategy of our “banking, trust banking and securities functions.”
In terms of performance, we were able to make afavorable start suitable for the first year of the plan.
Turning to the financial results for fiscal 2013, we reported the highest level of consolidated net income since theestablishment of Mizuho, ¥688.4 billion, which represented an achievement ratio of 114% against our earningplans, and a 22.8% increase year on year. We madesteady progress towards transforming qualitatively to astable and sustainable profit structure centered on
Customer Groups, as set forth in our medium-term business plan. We also made steady progress in Customer
Groups, which reported increase in revenue both domestically and overseas. We also moved forward with theimplementation of our integrated strategy of “banking,trust banking, and securities functions,” which Mizuho
has been promoting ahead of other companies, andreported an achievement ratio of 170% against the earnings plan for the One MIZUHO Synergy.
Concerning capital adequacy, we have exceeded theCommon Equity Tier 1 (CET 1) capital ratio (on a fullyeffective basis, including the Eleventh Series Class XI
Preferred Stocks*) of 8%, a target level we set in our
medium-term business plan.
* Although preferred stocks are not classified as CET1 capital under
Basel III, our calculation includes the Eleventh Series Class XI Preferred
Stock (mandatory conversion date: July 2016) in CET1 capital.

Toward the Enhancement of Corporate
Governance System
In order to fulfill our social responsibilities as a member ofthe global financial community, we are making further
progress in implementing our business model as well as
initiatives to enhance governance, which comprise mainly
initiatives related to the Board of Directors. As a part ofthese initiatives, Mizuho Financial Group has transformed
into a “Company with Committees” as defined in the
Companies Act of Japan.
By ensuring the separation of supervision and management along with the transformation into a “Company
with Committees,” we will enhance supervisory functions
for management by the Board of Directors, and aim to
improve the effectiveness of corporate governance. At thesame time, the Board of Directors will delegate decisions
on business execution to the executive officers who areresponsible for realizing expeditious corporate management
to the maximum extent possible. Furthermore, throughour Committees; namely the Nominating Committee, theCompensation Committee and the Audit Committee,
which are composed mainly of outside directors, we willsecure transparency and fairness in decision-making
processes and the effectiveness of management oversight.
We are also actively adopting the global trends in governance even further through measures such as appointing
an outside director as chairman of the Board.
Recently, we established and released the group's
Corporate Governance Guidelines (“Guidelines”). These
Guidelines set out the fundamental perspectives andframework of the corporate governance system. They also
set forth the roles, composition, and governing policies
regarding the Board of Directors, executive officers, theNominating Committee, the Compensation Committee
and the Audit Committee for Mizuho Financial Group as a“Company with Committees.”

We sincerely appreciate your continuing support forthese endeavors.

July 2014

Yasuhiro Sato
President & Group CEO
Member of the Board of Directors
Mizuho Financial Group, Inc.
Note: The above contains statements that constitute forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. See the disclaimer at thebottom of page 1 of this Annual Review for information regarding factors that could cause actual results to differ from those in
the forward-looking statements.

In Conclusion
Under the slogan of “One MIZUHO,” we will continue to
steadily implement our integrated strategy of “banking,trust banking, and securities functions.” We will endeavor
to fulfill our social mission as a financial institution, andfurther meet our customers' needs accurately and with asense of speed, including providing a smooth supply offunds as a financial services group with a global presence.

3

Message from the Management

Mizuho Bank

I would like to thank you for your continued interest inand support of our business.

Services Provided by Mizuho Bank
The former Mizuho Bank and Mizuho Corporate Bank formally merged on July 1, 2013, resulting in the formationof the new Mizuho Bank.
As a leading financial institution with one of the largest
customer bases in Japan, the new Mizuho Bank will build
on its current strengths and characteristics, and fully leverage the comprehensive capabilities of the Mizuho group
to meet our customers' diverse financial needs and contribute to the economic and social development of Japanand countries around the world. We are similarly committed to fulfilling our public duty as a financial institution byfacilitating our customers' access to a stable supply offunds.

Dedicated to Becoming our Customers' Most
Trusted Financial Partner
As the largest financial institution in the Mizuho group,
during fiscal 2013, Mizuho Bank worked further to improve
all individual and corporate customer convenience by providing an effective and multifaceted range of comprehensive financial services through promoting a strategy ofclose collaboration between the Mizuho group's banking,trust banking and securities entities, based on the One
Mizuho New Frontier Plan that was formulated by ourparent company, Mizuho Financial Group. Through these
initiatives, in fiscal 2013, we steadily expanded income
and the customer base in our Customer Groups both
domestically and overseas, and through pursuit of our
One MIZUHO strategy, we realized further major synergies.
We believe these accomplishments were a steady beginning for the first year of our Medium-term Management
Plan.
4

In the interest of further developing the One MIZUHO
strategy, during fiscal 2014, we aim to improve our profitability through our differentiated cross-functional strategies and expand the customer base in Japan and overseasthat underpins our business expansion. To our individual
customers, we will seamlessly provide a diverse mix offinancial products and services across the banking, trust
banking and securities segments. For our corporate customers, we will enhance our lending function by demonstrating our ability to take intelligent risks and improve
our ability to provide solutions based on Mizuho's uniquecompetitive advantages, such as industry expertise andcapabilities in developing new products. Also, we will support Japanese customers' overseas businesses and will further enhance relations with non-Japanese customers inmarkets around the world.
To become our customers' most trusted financial partner, we will further accelerate our integrated management of banking, trust banking and securities functions
under the slogan of “One MIZUHO.”
Everyone at Mizuho shares a commitment to providing
our customers with the financial services best suited tohelping them achieve their goals.
We sincerely appreciate your continuing support.

July 2014

Nobuhide Hayashi
President & CEO
Mizuho Bank, Ltd.

Mizuho Trust & Banking

Mizuho Trust & Banking's Services
As Mizuho's sole trust bank providing trust functions, we
endeavor to meet the various needs of our customers
through offering products and services that make use of
the special features of trusts. At the same time, we arepromoting integrated group management of banking,trust banking and securities functions.
For individual customers, we offer comprehensive services unique to trust banks based on our sophisticatedexpertise. Our services range from asset management,
including money trusts and other products, to real estateand consulting on asset and business inheritance.
For corporate customers, we provide the best trust
related solutions to address their management needs
through trust services, including real estate-related trusts,
securitization, stock transfer agency business throughsophisticated consulting advice, and other services where
we have strengths as well as our financial consulting services. Also, we will continue to expand our provision ofsolutions and development of advanced products in thepensions and asset management functions, in order tomeet the needs of our customers.

at all branches of Mizuho Securities, and other activities.
Furthermore, we will accelerate initiatives only Mizuho
can provide by taking advantage of our group strengths,
such as advancing further toward our objective of “OneMIZUHO” again this fiscal year and offering testamentaryrelated consulting services at Mizuho Bank branches.
Also, in order to strengthen our development of new
products and services that respond to a broad spectrumof customer needs, we newly established a consulting
and development group in April 2014. We will continue
to contribute to economic, social and regional development by focusing on opening new frontiers in the trust
business.
Under the spirit of One MIZUHO, we aim to become
the “trust bank that is most trusted by customers.”
We sincerely appreciate your continuing patronage.

July 2014

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

To become the “Trust Bank that is Most Trusted
by Customers”
Based on the medium-term business plan formulated in
April last year, we have been thoroughly pursuing integrated strategy of banking, trust banking and securities
functions, and endeavoring to enhance our trust andconsulting functions to provide comprehensive financial
services to group customers.
Steady and substantial progress has been made towardrealizing integrated group management. Specifically, we
are opening joint branches together with Mizuho Bankand Mizuho Securities, offering Educational Grant Trusts
at Mizuho Bank, enhancing testamentary-related business5Message from the Management

Mizuho Securities

Mizuho Securities' Services
Under the slogan of “One MIZUHO” we will promoteseamless collaboration between banking, trust banking
and securities businesses and thereby provide high-valueadded securities services to Mizuho's customers.
For individual customers, we provide financial products
including equities, bonds, and investment trusts as well as
timely research information, by leveraging our industry
leading domestic branch network and other channels
such as the Internet and call centers.
For corporate customers, we offer equities, bonds andother securities underwriting operations, support for listing stocks, advisory services for various types of financial
matters and capital management, M&A advisory, structured finance and other solutions closely in line with thebusiness strategies of our customers.
For customers among institutional investors, in addition
to providing products and various research reports thatsuit their investment strategies, we are further reinforcing
our execution capabilities, thus meeting the increasingly
sophisticated needs of our customers.

Our Goal of Becoming a Company that Shares
Joy with Our Customers
Based on the “One MIZUHO New Frontier Plan,” we havelaunched our own medium-term business plan covering
the period from fiscal 2013 through fiscal 2015. We
made a favorable start for the first year by endeavoring toenhance our business structure as well as promoting the
integrated management of banking, trust banking andsecurities functions.
Also, as a One MIZUHO initiative, we are further accelerating integrated management of banking, trust banking
and securities functions by establishing joint brancheswith Mizuho Bank and Mizuho Trust & Banking, andexpanding our testamentary-related business by making
6

all our branches agents of Mizuho Trust & Banking. In
addition, we are having Mizuho Bank introduce its clients
who need securities services, and, beginning in May 2014,
all the branches of Mizuho Bank nationwide began tooffer financial product intermediary services.
We have set two key goals. The first of these is, as aparticipant in financial and capital markets, we set thegoal of striving to provide growth capital through markets
and contribute to the economic growth of Japan, Asia,and the world through sound development of markets.
The second goal is to become a company that helps ourcustomers to build up their assets and enhance their corporate value, and, thereby, shares in the joy of their success. To achieve these two objectives, we will substantiallystep up our drive to offer responsive and sophisticatedsecurities services, as we accelerate our collaboration with
Mizuho's banking and trust banking arms, to offer evenhigher-value-added products and services.
We sincerely appreciate your continuing support.

July 2014

Hiroshi Motoyama
President & CEO
Mizuho Securities Co., Ltd.

Mizuho's Group Companies

By bringing together our various financial functions including banking, trust banking and securities functions, we endeavor tomeet the diverse needs of our customers.

Mizuho's Group Structure
Mizuho Financial Group

Mizuho Private Wealth Management

Mizuho Financial Strategy

Mizuho Information & Research InstituteMizuho Research InstituteDIAM

Mizuho Asset Management

Trust & Custody Services Bank

Mizuho Securities

Mizuho Trust & Banking

Mizuho Bank

Ratings (As of July 31, 2014)
R&I
Long Term Short Term

JCRLong Term Short Term

Moody'sLong Term Short Term

Standard & Poor's
Long Term Short Term

Fitch
Long Term Short Term

—

—

P–1

A

—

—

A1

P–1

A–
A–

F1

—

A1

P–1

A+
A+

A–1

a–1

A+
AA–
AA–

A–1

A–

F1

a–1

AA–

J–1+

A2*

P–1*

—

—

—

—

Mizuho Financial GroupA

a–1

Mizuho Bank

a–1

Mizuho Trust & Banking

A+A+

Mizuho Securities

A+

F1* Credit ratings for MTN programme (Joint Medium-Term Note Programme with Mizuho International and Mizuho Securities USA, based on keep well agreement with Mizuho
Financial Group and Mizuho Bank).

7

Mizuho's Group Companies

Profiles of Group Companies (As of March 31, 2014)
Mizuho Financial Group (MHFG)

Mizuho Securities (MHSC)

Date of Establishment:
Capital:Issued Shares:

Date of Establishment: January 4, 2013
Capital:¥125,167 million
Location of Head Office: Otemachi First Square, 1-5-1, Otemachi,
Chiyoda-ku, Tokyo 100-0004, Japan
Tel. +81-(0)3-5208-3210
Representative:
Hiroshi Motoyama, President & CEO
Number of Employees: 6,925
Domestic Network
Head Office and Departments: 3
Branches and Sales Offices: 104
Planet Booths: 165
Financial Advisors Sales Department: 1
Overseas Network
Subsidiaries: 7 Representative Offices: 2

January 8, 2003
¥2,254,972 million
25,178,637,187 shares
Common Stock: 24,263,885,187 shares
Preferred Stock: 914,752,000 shares
Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan
Tel. +81-(0)3-5224-1111
Representative:
Yasuhiro Sato, President & CEO(Appointed on June 24, 2014)
Number of Employees: 1,108

Mizuho Bank (MHBK)
Date of Establishment: July 1, 2013
Capital:¥1,404,065 million
Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
100-8176, Japan(Relocated on May 7, 2014)
Tel. +81-(0)3-3214-1111
Representative:
Nobuhide Hayashi, President & CEO(Appointed on April 1, 2014)
Number of Employees: 26,250
Domestic Network
Head Office and Branches: 421
Sub-branches: 40
Overseas Network
Branches or Relevant Offices: 36
Representative Offices: 7

Mizuho Trust & Banking (MHTB)
Date of Establishment: March 12, 2003
Capital:¥247,369 million
Location of Head Office: 1-2-1, Yaesu, Chuo-ku, Tokyo 103-8670,
Japan
Tel. +81-(0)3-3278-8111
Representative:
Takeo Nakano, President & CEO
Number of Employees: 3,098
Domestic Network
Head Office and Branches: 36
Sub-branches: 17 (Trust Lounges: 16)
Overseas Network
Subsidiaries: 2

Trust & Custody Services Bank (TCSB)As Mizuho's trust bank specializing in asset administration, TCSB willcontinue to provide high-quality, high-value-added trust and custody services to customers including large institutional investors. Asof March 31, 2014, the balance of assets under custody and administration was approximately ¥370 trillion, the largest scale in Japan.
Date of Establishment: January 22, 2001
Capital:¥50,000 million
Location of Head Office: Tower Z, Harumi Triton Square, 1-8-12,
Harumi, Chuo-ku, Tokyo
Representative:
Akira Moriwaki, President & CEO
Number of Employees: 597
Key Indicators

Ordinary Income
Net Business Profits
Ordinary Profits
Net Income(Millions of ¥)Fiscal 2013 Fiscal 2012 Fiscal 2011
22,651
21,825
21,526
1,936
1,113
1,333
1,911
1,078
1,296
1,169
527
794

Mizuho Asset Management (MHAM)
MHAM's core businesses are investment trust business, mainly for
individuals and financial institutions, and investment advisorybusiness, principally for public and private pensions, financial
institutions and corporations. MHAM's asset management products and services cover a wide range from equities and bonds toalternative investments.
Date of Establishment: July 1, 2007
Capital:¥2,045 million
Location of Head Office: 3-5-27, Mita, Minato-ku, Tokyo
Representative:
Hidetake Nakamura, President(Appointed on June 11, 2014)
Number of Employees: 222
Key Indicators

Operating Revenue
Ordinary Profits
Net Income

8(Millions of ¥)Fiscal 2013 Fiscal 2012 Fiscal 2011
19,96318,72318,140
1,218
1,111
731
706
640
469

DIAM

Mizuho Information & Research Institute (MHIR)

DIAM is an asset management company in which The Dai-ichi Life
Insurance and Mizuho both have equity holdings. DIAM collaborates with its offices in Europe, the United States and Asia to offer
investment trust products to individuals and corporate customers,
as well as provide investment advisory services to customers
including Japanese and overseas pension funds.

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

Date of Establishment: October 1, 1999
Capital:¥2,000 million
Location of Head Office: New Tokyo Building 5th Floor, 3-3-1,
Marunouchi, Chiyoda-ku, Tokyo
Representative:
Yasumasa Nishi, President & CEO(Appointed on June 30, 2014)
Number of Employees: 425
Overseas Network
Subsidiaries: 4
Key Indicators

Operating Revenue
Ordinary Profits
Net Income(Millions of ¥)Fiscal 2013 Fiscal 2012 Fiscal 2011
33,527
29,81530,349
7,608
6,310
6,335
4,686
3,411
3,894

MHRI is a think tank with high-level research and solutiondevelopment divisions as well as its own corporate membershiporganization. MHRI's missions are working to contribute to thewide prosperity of its customers and the development of society.
Date of Establishment: October 1, 2002
Capital:¥900 million
Location of Head Office: 1-2-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative:
Mitsuaki Tsuchiya, President & CEO
Number of Employees: 292

Operating Revenue
Ordinary Profits
Number of Corporate
Members(Millions of ¥)Fiscal 2013 Fiscal 2012 Fiscal 2011
7,552
6,765
7,155
650
280
538
27,60027,376

Key Indicators

Sales
Ordinary Profits (Losses)
Net Income (Losses)(Millions of ¥)Fiscal 2013 Fiscal 2012 Fiscal 2011
206,101
146,682
151,841
5,688
(75)
3,950
3,320
(47)
2,414

Mizuho Financial Strategy (MHFS)
MHFS offers research and advisory services relating to matterssuch as establishment of holding companies, smooth implementation of group management and building group information
security management systems.

Mizuho Research Institute (MHRI)Key Indicators

Date of Establishment: October 1, 2004
Capital:¥1,627 million
Location of Head Office: 2-3 Kanda-Nishikicho, Chiyoda-ku,
Tokyo
Representative:
Junichi Nishizawa, President & CEO
Number of Employees: 4,255

27,743

Date of Establishment: September 29, 2000
Capital:¥10 million
Location of Head Office: 1-5-5, Otemachi, Chiyoda-ku, Tokyo
Representative:
Junichi Shinbo, President(Appointed on April 1, 2014)
Number of Employees: 41

Mizuho Private Wealth Management (MHPW)MHPW offers consulting services tailored to the needs of its customers. These services range from consulting on customers'
financial matters such as wealth management, arranging for business inheritance to advice on customers' individual matters,
including health of the customers themselves as well as family
members and children's education.
Date of Establishment: October 3, 2005
Capital:¥500 million
Location of Head Office: 1-1-5, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative:
Nobutake Nishijima, President
Number of Employees: 25

Notes: 1. The representatives of each company have representation rights.
2. The figures for key indicators are rounded down to the nearest million yen.
3. The numbers of employees do not include each company's employees dispatched outside each company while it includes employees dispatchedfrom outside each company. This figure also includes overseas local staff but excludes executive officers and temporary employees.

9Office Network

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

Europe, the Middle East and Africa

Asia and Oceania

MHBK 18 offices
MHTB 1 office
MHSC 2 offices
DIAM 1 office

MHBK 42 offices
MHSC 6 offices
DIAM 2 offices

Amsterdam
BrusselsDüsseldorf

LondonBeijingFrankfurt

Luxembourg

TianjinMoscow

DalianQingdao

Paris

ViennaNanjing
Wuxi

MadridIstanbul

Seoul

Hefei

ZurichSuzhou

Wuhan

Milan

TehranXiamen
New Delhi

Shenzhen
Guangzhou
Hong Kong

BahrainRiyadhDubai

ShanghaiTaipei

Hanoi
MumbaiTaichung
KaohsiungBangalore-Devanahalli
Chennai

YangonManilaBangkokPhnom Penh
Ho Chi Minh City
Kuala Lumpur
LabuanSingapore
Jakarta
Johannesburg

Sydney• Mizuho Bank (China) opened the Shanghai Pilot Free Trade Zone Sub-Branch in March 2014.
• Mizuho Bank (China) opened the Changshu Sub-Branch in May 2014.
• MHBK received approval from the banking regulator of the Republic of Chile in June 2014 to open the Santiago (Chile) Representative Office, and ismaking preparations to open the office within fiscal 2014.

10

International Network (As of June 30, 2014)
MHBK: 79 offices
MHTB: 2 offices
Overseas branch or relevant office
Overseas representative office
Overseas subsidiary (Including head
office, branches or relevant offices,and representative offices)

MHSC: 9 offices

Overseas subsidiary

Overseas subsidiary (Not including
subsidiary branches, branches or
relevant offices, and representative
offices)
Overseas representative office

DIAM: 4 offices
Overseas subsidiary

Americas
MHBK 19 offices
MHTB 1 office
MHSC 1 office
DIAM 1 office

ChicagoCalgary
TorontoVancouver

New York
Atlanta
HoustonNassauCaymanLos Angeles
Mexico City

Network in Japan(As of March 31, 2014)

MHBK
Head Office and Branches: 421
Sub-branches: 40

MHTB
Head Office and Branches: 36
Sub-branches: 17

MHSC
Head Office and Departments: 3
Branches and Sales Offices: 104
Planet Booths: 165
Financial Advisors Sales Department: 1

São Paulo*Planet Booths are the consulting boothsof MHSC located in MHBK's Branches

11Summary of Financial Results for Fiscal 2013

Consolidated
Fiscal 2013

Summary of Income Statement

Change fromfiscal 2012(billions of ¥)Consolidated net income for fiscal 2013 amounted to¥688.4 billion, a year-on-year increase of ¥127.8 billion.
A record high consolidated net income was reported,
exceeding the revised earnings estimates for fiscal 2013of ¥600 billion.
• Consolidated net business profits decreased year-on-yearto ¥744.2 billion.
• Consolidated credit-related costs amounted to a reversalof ¥112.8 billion.
• Consolidated net gains (losses) related to stocks improvedby ¥159.9 billion year-on-year to ¥77.0 billion mainly due
to a decrease in losses on impairment of stocks.
[Mizuho Bank + Mizuho Trust & Banking]• Although Gross Profits of Mizuho Bank and Mizuho Trust& Banking decreased ¥179.2 billion year-on-year to¥1,506.8 billion, those from customer groups increased by¥82.2 billion to ¥1,304.8 billion.
• Gross profits from customer groups increased mainly
due to growth in income from domestic business, particularly non-interest income, as well as in income fromoverseas business, particularly in Asia.
• Gross profits from trading & others decreased by ¥261.4
billion to ¥202.0 billion mainly due to the deadline in net
gains (losses) related to bonds that were very strong infiscal 2012.
• Despite promoting cost structure reforms, G&A expensesof the two banks increased by ¥24.5 billion to ¥864.2 billion mainly due to strategic expenses and the impact ofdepreciation in Yen.
[Mizuho Securities]• Net operating revenues of Mizuho Securities increased by¥28.4 billion year-on-year to ¥323.1 billion mainly due toincreases in equity brokerage commissions.
• Consolidated net income increased by ¥25.2 billion yearon-year to ¥51.2 billion.

12(136.4)2,035.2
Consolidated Gross Profits(167.8)744.2
Consolidated Net Business Profits*1+224.7
112.8
Credit-related Costs+159.977.0
Net Gains (Losses) related to Stocks+237.2
987.5
Ordinary Profits+127.8688.4
Consolidated Net Income*1. Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring
Losses) + Equity in Income from Investments in Affiliates and certain
other consolidation adjustments(Reference)
Mizuho Bank and Mizuho Trust & Banking (Two Banks)
Fiscal 2013
(billions of ¥)Gross Profits
Customer Groups
Trading & Others
G&A Expenses (Excluding Non-Recurring Losses)
Net Business Profits
Credit-related Costs
Net Gains (Losses) related to Stocks
Ordinary Profits
Net Income

Change fromfiscal 2012

1,506.8
1,304.8
202.0(864.2)
642.6
116.6
57.6
801.6
582.5

(179.2)+82.2(261.4)(24.5)(203.7)+230.8+188.9+231.9+71.2

Mizuho Securities
Fiscal 2013
(billions of ¥)Net Operating Revenues
SG&A Expenses
Ordinary Income
Net Income

Change fromfiscal 2012*2

323.1(282.6)
43.1
51.2

+28.4
(22.4)+6.1+25.2*2. Figures for fiscal 2012 are simple aggregate figures of Mizuho Investors Securities (before the merger with Mizuho Securities conducted
on January 4, 2013) and Mizuho Securities

Loan Balance and Domestic Loan-and-Deposit
Rate Margin
Average domestic loan balance of the Two Banks forthe second half of fiscal 2013, excluding loans to theJapanese Government, increased by ¥0.4 trillion fromthe first half of fiscal 2013, and the overseas loan balance increased by US$6.5 billion, mainly in Asia andAmericas. Domestic loan-and-deposit rate margin ofMizuho Bank for the second half of fiscal 2013 decreased
from the first half of fiscal 2013, due to a decline in
return on loans and bills discounted.

Average Loan Balance(*3) (Two Banks, banking account)
Domestic Branches(trillions of ¥)Overseas Branches(*5)(billions of $)Domestic Loan-and-Deposit Rate Margin(*4) (Mizuho Bank)
Return on Loans and Bills Discounted: aLoan-and-Deposit Rate Margin: a-b

Costs of Deposits and Debentures: b(trillions
of ¥)
60

(billions
of $)
600

(%)
1.8

55

550

1.6

50

500

1.4

45

450

1.2

15

150

0.6

10

100

0.4

5

50

0.2

0

0

Fiscal 2010
(first half)

Fiscal 2010(second half)

Fiscal 2011
(first half)

Fiscal 2011(second half)

Fiscal 2012
(first half)

Fiscal 2012(second half)

Fiscal 2013
(first half)

Fiscal 2013(second half)

Average Loan Balance
Domestic Branches
Overseas Branches¥61.0 tn.

¥61.1 tn.

¥60.8 tn.

¥63.8 tn.

¥62.5 tn.

¥66.5 tn.

¥67.1 tn.

¥69.3 tn.

¥54.6 tn.
$86.4 bn.

¥54.3 tn.
$92.5 bn.

¥53.7 tn.
$105.5 bn.

¥54.5 tn.
$121.3 bn.

¥53.7 tn.
$127.3 bn.

¥53.7 tn.
$133.2 bn.

¥54.9 tn.
$141.3 bn.

¥55.2 tn.
$147.8 bn.

Return on Loans andBills Discounted: aLoan-and-Deposit Rate
Margin: a-b
Costs of Deposits andDebentures: b

1.49%

1.45%

1.39%

1.37%

1.33%

1.30%

1.24%

1.20%

1.36%

1.36%

1.32%

1.30%

1.26%

1.24%

1.19%

1.15%

0.12%

0.08%

0.07%

0.06%

0.06%

0.06%

0.05%

0.04%

0.0

*3. Excluding loans to Mizuho Financial Group*4. Figures of domestic operations of Mizuho Bank, excluding loans to financial institutions (including Mizuho Financial Group), Deposit Insurance
Corporation of Japan and the Japanese Government.
*5. Managerial accounting of Mizuho Bank, including figures of Mizuho Bank (China)

Non-interest Income

Non-interest income from customer groups of the Two
Banks for fiscal 2013 increased significantly year-onyear both for domestic and overseas businesses.

<Breakdown of year-on-year changes (rounded figures)>
Domestic Business: +¥18.0 billion
Investment Trusts & Individual Annuities: +¥13.0 billion
Settlement & Foreign Exchange: +¥3.0 billion
Trust & Asset Management*7: +¥5.0 billion
Solution Business-related: –¥2.0 billion
Others: –¥1.0 billion
Overseas Business: +¥35.0 billion*7. Trust and Asset management business of Mizuho Trust & Banking

Two Banks, managerial accounting*6(billions of ¥)
550

+52.8

500

Financial Soundness4500Non-interest Income

Fiscal 2012

Fiscal 2013

¥481.2 bn.

¥534.0 bn.

*6. New managerial accounting rules have been applied since thebeginning of fiscal 2013. The figure for fiscal 2012 was re-calculated
based on the new rules (the impact for fiscal 2012 was approximately –¥28.0 billion).

The Balance of Disclosed Claims of the Two Banks under
the Financial Reconstruction Law (FRL) as of March 31,
2014 decreased from September 30, 2013, to ¥0.95 trillion. Non-performing loan (NPL) ratio decreased to
1.21%. Consolidated Unrealized Gains (Losses) on Other

13

Summary of Financial Results for Fiscal 2013

Securities*8 increased by ¥73.4 billion from September
30, 2013 to ¥1,090.2 billion. Japanese Government Bondof the Two Banks decreased ¥4 trillion from September
30, 2013, to ¥21.8 trillion.
*8. The base amount to be recorded directly to net assets after tax andother necessary adjustments.

Two Banks(trillions of ¥)1.5

Disclosed Claims under the FRLNPL Ratio (right axis)
(%)
2.5

1.0

2.0

0.5

1.5

0.0

March
2011

March
2012

Disclosed Claims¥1.20 tn. ¥1.16 tn.
under the FRLNPL Ratio
1.72%
1.63%
(right axis)

March
2013

September
2013

March
2014

1.0

¥1.29 tn. ¥1.02 tn. ¥0.95 tn.
1.71%

1.35%

1.21%

Capital Adequacy

Consolidated total capital ratio, Tier 1 capital ratio, Common
Equity Tier 1 (CET1) capital ratio as of March 31, 2014
amounted to 14.36%, 11.35% and 8.80%, respectively.
We have been implementing “disciplined capital management” by pursuing the optimal balance between“strengthening of stable capital base” and “steady returns
to shareholders.”
With regard to the Basel III for which implementation
period commenced from the end of March 2013, we aim toincrease to a level that enables us to secure stably our CET1
capital ratio (fully-effective basis*9, including the Eleventh
Series Class XI Preferred Stock*10) of 8% or higher by theend of fiscal 2015, the final year of our medium-term business plan. Specifically, we will strive to accumulate our capital steadily and to strengthen our financial base further,mainly by accumulating retained earnings and improving
asset efficiency through the steady implementation of ourvarious initiatives in the medium-term business plan.
In the medium- to long-term, we aim to accumulate asufficient level of CET1 capital, giving due regard to thetimeline of the phase-in implementation through the end of
fiscal 2018. Accordingly, we believe we will be able to sufficiently meet the new capital regulations including theframework to identify G-SIFIs.

14

Total Capital Ratio
Tier 1 Capital Ratio
CET1 Capital Ratio

As of March 31, 2014

As of March 31, 201314.36%
11.35%
8.80%

14.19%
11.03%
8.16%*9. Estimated figures under fully-effective basis as expected to be ineffect at the end of fiscal 2018.
*10.Although preferred stocks are not classified as CET1 capital under
Basel III, our calculation includes the Eleventh Series Class XI
Preferred Stock (mandatory conversion date: July 2016) in CET1
capital. The outstanding balance of the Eleventh Series Class XI
Preferred Stock as of March 31, 2014 (excluding treasury stock)
was ¥312.6 billion (66.8% of the initial amount issued of ¥943.7
billion had already been converted into common stock as of suchdate).
Note: The above contains statements that constitute forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. See the disclaimer at thebottom of page 1 of this Annual Review for information regarding factors that could cause actual results to differ from those in
the forward-looking statements.

Progress of the First Year of the Medium-term Business Plan
“One MIZUHO New Frontier Plan—Stepping Up to the Next Challenge—”

Results for Fiscal 2013
Fiscal 2015 (Plan)

Fiscal 2013 (Results)

ROE(Consolidated)

Approximately 9%
Target Figures(Fiscal 2015)
RORA
Common(Consolidated
Equity Tier 1
Net Income on
Capital Ratio*1
Risk-weighted Assets)(Fully-effective basis*2)
8% or higher

Approximately 0.9%

Profitability

ROE (Consolidated)
RORA(Consolidated Net Income
on Risk-weighted Assets)
Common Equity
Tier 1 Capital Ratio*1(Fully-effective basis*2)
Net Income (Consolidated)
Group Expense Ratio*3

Efficiency

Soundness

Expense Ratio(Banking Subsidiaries)*4
Ratio of Stock Portfolio
against Tier 1 Capital*5

Approximately 9%

11.1%

Approximately 0.9%

1.1%

8% or higher

9.08%¥550.0 billion level¥688.4 billion

Mid 50% range

61.6%

Lower 50% level

57.3%

Approximately 25%

28%*1. Common Equity Tier 1 (CET1) capital ratio was 8.80% as of March 31, 2014. Although preferred stocks are not classified as CET1 capital under Basel III, both our planned andactual figures include the Eleventh Series Class XI Preferred Stock (mandatory conversion date: July 2016) in CET1 capital.
*2. Estimated figures under fully-effective basis as expected to be in effect at the end of fiscal 2018.
*3. MHBK+MHTB+MHSC*4. MHBK+MHTB*5. After taking into consideration the hedging effects. Also, although preferred stocks are not classified as CET1 capital under Basel III, both our planned and actual figures include the Eleventh Series Class XI Preferred Stock (mandatory conversion date: July 2016) in CET1 capital.

In fiscal 2013, which was the first year of Mizuho's mediumterm business plan, we implemented business policies basedon our 10 basic strategies and worked to strengthen ourmanagement administration functions and our managementbase. As a result, we strengthened our income from ourCustomer Groups, realized synergies from our unified banking, trust banking and securities functions, and made otherprogress that kept us on track toward accomplishing theobjectives of the medium-term business plan.
In fiscal 2014, which will be the second year of the mediumterm business plan, we are working to make continuing
steady progress and further evolve toward One MIZUHO by
accelerating our strategy to unify banking, trust banking andsecurities functions and make further progress toward building the base for One MIZUHO. As an integral part of these
activities, we are also taking initiatives to strengthen corporate governance and establish a strong corporate culture.

effective solutions to meet the needs of individual and corporate customers. Moreover, by creating branches that offer
banking, trust banking and securities services jointly and bybuilding on our collaboration system that allows staff members of MHBK and MHSC to hold positions in the otherorganization concurrently, we have created a customer
service system that enables us to mobilize our comprehensive capabilities in all financial service fields to respondpromptly to customers' needs. For example, for high-networth customers, especially corporate owners, we have created a private banking service framework that can respondto the full range of their needs both as business owners
and individuals.

Strengthen Integrated Financial Services by
Unifying Banking, Trust Banking, and Securities
Functions to Respond to Finely Detailed
Corporate and Personal Banking Segments

MHBK is making major contributions to a wide range of
projects around the world, such as the world's largest

Mizuho, as a comprehensive financial group that has its own
banking, trust banking and securities capabilities, has distinguishing features and competitive superiorities. Drawing onthese, we have substantially strengthened our marketing
activities by tapping the group's financial know-how andinsight regarding various industries to provide sharp and

Perform Consulting Functions Taking Advantage
of Our Industry and Business Knowledge andForward-looking Perspective

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

15

Progress of the First Year of the Medium-term Business Plan
“One MIZUHO New Frontier Plan—Stepping Up to the Next Challenge—”

geothermal power generating plant in Indonesia, throughoffering financial advisory and other services. These services
range from support in the early stages of projects throughsyndicating the necessary financing. Going forward, by
drawing on its knowledge and insight into various industries, which are its major strengths, Mizuho is working tooffer consulting services and financial intermediary functions
with the goal of supporting customers in meeting the fullrange of their financial needs.

Support Formation of Personal Financial Assets
in Japan and Invigorate their Investment
MHBK and MHSC are working together to respond to theintroduction of Nippon Investment Savings Accounts (NISAs),
which are tax-exempt up to a specified limit, by expanding
their lineup of investment products.
In addition, Mizuho has formed a project team to revitalize the flow and application of Japan's ¥1,600 trillion
in monetary assets, by promoting the shift from savings
deposits to long-term investment, especially among worker
households. The team has also begun consideration ofarrangements for facilitating the succession of assets held bysenior citizens.

Strengthen Proactive Risk-taking Functions for
Growth Industries and Corporations
MHBK has set up a number of assistance funds to support
customers in their activities to strengthen their bases for
growth. Through these activities, we are providing broad
support for the initiatives of our customers in growth fields.

Mizuho's Vision

Strengthen and Expand Asia-related Business inJapan and on a Global Basis
Mizuho has created a system to enable Mizuho offices
throughout the world to collaborate in providing support tocustomers with the aim of offering our customers a global
business development support system. In addition, Mizuho isdevoting resources to further develop its global network andconcluded cooperative arrangements with leading financial
institutions and government organizations overseas. Under
these arrangements, Mizuho aims to provide information,
support the entry of customers into overseas markets, andoffer financial services in local markets overseas. Throughthese initiatives, Mizuho is creating systems that will enable
it to respond to a broad range of customer needs.

Cultivate Multi-level Transactions by Capturing
the Accelerating Global Capital and Trade Flows
Mizuho is offering increasingly sophisticated fund management services in step with the evolving needs of its customers. These include cross-border settlements in a range ofcurrencies, including those of emerging countries; foreignexchange risk hedges; and foreign-exchange related guarantees. Along with these services, Mizuho is providing cuttingedge financial solutions that include liquefying overseas

The most trusted financial services group with a global presence and a broad customer base, contributing to theprosperity of the world, Asia, and Japan.

<Ten Basic Strategies><Five Basic Policies>
1. Further develop integrated strategies across the group for eachcustomer segment to respond to
the diverse needs of our customers
2. Contribute to sustainable development of the world and Japanby proactively responding tochangeBusiness
Strategy

3. Mizuho Means Asia: accelerate
globalization
4. Build strong financial and management foundations to support
the essence of Mizuho
5. Form strong corporate governance and culture in the spirit of
One MIZUHO

16

Also, in collaboration with financial institutions and public
corporations, we established the Sixth Industry Fund for
the Agriculture, Forestry, and Fishing Sector and, throughinvestments in businesses via these various funds, we aretaking initiatives in providing risk money for growth sectors.

Business
Management,
Management
Foundations,etc.

(1) Strengthen integrated financial services by unifying banking, trust banking, and securities functions to respond to finely detailed corporate and personal banking segments(2) Perform consulting functions taking advantage of our industry and businessknowledge and forward-looking perspective(3) Support formation of personal financial assets in Japan and invigorate their investment(4) Strengthen proactive risk-taking functions for growth industries and corporations(5) Strengthen and expand Asia-related business in Japan and on a global basis(6) Cultivate multi-level transactions by capturing the accelerating global capital andtrade flows(7) Strengthen stable financial foundations based on abundant liquidity and appropriate capital levels(8) Establish the optimal management foundations (human resources and business
infrastructure) to support business strategy.
(9) Further strengthen proactive governance and risk management(10) Embed the new Mizuho corporate identity toward forming a common culture throughout the group and take actions toward being the best financial services provider

accounts receivable, trade financing, and export credit
agency (ECA) financing.

Strengthen Stable Financial Foundations Basedon Abundant Liquidity and Appropriate Capital
LevelsWe have ensured a sufficient level of capital as of March 31,
2014. We have also transformed and enhanced the qualityof the profit structure through the gradual realization ofincreases in income from Customer Groups (Interest andNon-interest Income) both in Japan and overseas.

actions of each and every employee. Specifically, it will further strengthen continued actions related to each initiativethat was started in the first year of the medium-term business plan, by having each division and branch create theirown visions by holding discussions and supporting the initiatives towards realizing these visions, commencing discussion
sessions with senior management at all head office and marketing offices, and off-site meetings for general managers ofhead office divisions and marketing offices at major groupcompanies.

Establish the Optimal Management Foundations(Human Resources and Business Infrastructure)
to Support Business Strategy
Along with optimizing the training and use of human resources
as well as business operations from a group-wide perspective, MHFG is working to develop stable and highly reliable management foundations, including next-generations
systems.

Further Strengthen Proactive Governance andRisk Management
To fulfill the social responsibilities as members of a financial
services group with global operations, Mizuho will further
evolve its business model and take initiatives to substantiallyenhance the sophistication of the group governance systems. In specific terms, beginning in April 2014, Mizuho
has appointed directors to be in overall charge of multiple
units and conducted a review of the system for concurrent
assignments in planning and management. We have also
strengthened the functions of our holding company, and,beginning in June, we made the transition to a Company
with Committees. In addition, we are continuing our initiatives to increase the sophistication of our risk governanceframework in light of trends in global regulations.

Embed Mizuho's Corporate Identity TowardForming a Common Culture Throughout theGroup and Take Actions Toward Being the Best
Financial Services Provider
Each and every employee will take a flexible approach tochanges in society and proactively step up to the challenges
they face. Mizuho will also promote further strengthening
the One MIZUHO Promotion Project Team in Japan and overseas by integrating the banking, trust banking, and securities
functions from the perspective of driving the self-starting17

Enhancement of Corporate GovernanceIn order to fulfill its social responsibilities as a member of the
global financial community, Mizuho is pursuing theenhancement of its corporate governance system and acceleration of furtherance of its business model.
As part of this initiative, MHFG transformed itself into a
Company with Committees which was approved at the ordinary general meeting of shareholders on June 24, 2014.
MHFG established the Corporate Governance Guidelines
which set out the basic policy, framework, and governing
policies of its corporate governance system. The outline of theguidelines and summary of the actual corporate governancesystem at the time of the transformation are as follows.
(1) Basic Policy regarding MHFG's Corporate Governance
System
1. Separation of supervision and management
Secure the effectiveness of governance by ensuring
the separation of supervision and management andmaking supervision of the management such as theexecution of duties, etc. by executive officers the primary focus of the Board of Directors.
2. Delegation of “decisions on business execution” tothe executive officers
Make it possible for the management to make swift
and flexible decisions and realize expeditious corporate management by the Board of Directors' delegating decisions on business execution to the executive
officers.
3. Securing independence of supervision
Utilize the Nominating Committee, Compensation
Committee, Audit Committee, etc. comprising mainly
outside directors who are independent from the management of Mizuho, and secure transparency andfairness in decision-making processes and the effective supervision of the management.
4. Adoption of global standards
Actively adopt operations and practices that are recommended at a global level regarding corporate governance as well as compliance with Japanese and foreign laws and regulations as a financial group
expanding across the globe.
(2) Structure after transformation into a Company with
Committees
1. Composition of the Board of Directors
In light of the role of the Board of Directors to supervise the management, the number of outside directors and internal non-executive directors (internal
directors who do not con-currently serve as executive
officers, employees, or executive directors of MHFG
or any of its subsidiaries) shall comprise a majority of
the Board of Directors.
Also, a sufficient number of internal directors shall18

be members for the purpose of ensuring sound andappropriate operation as a financial institution by
ensuring quality, including expertise in decision making and effective supervision by directors who arefamiliar with financial businesses and regulations andMizuho's business model.
On the other hand, for the purpose of strengthening the supervisory function of the Board of Directors,
MHFG additionally appointed three outside directors
with expert knowledge of and experience in corporate governance, compliance with laws and regulations, crisis management, risk management, management strategy, global management, management
reform (in terms of organization and culture).
The Board of Directors consists of a total of 13
directors, with six outside directors, two internal nonexecutive directors and five directors who concurrently serve as executive officers, including President &CEO (Group CEO), as well as Group Chief Financial
Officer (Group CFO), Group Chief Risk Officer (GroupCRO), Group Chief Compliance Officer (Group CCO),
and Group Chief Strategy Officer (Group CSO).
2. Separation of the Chairman of the Board of
Directors from the general execution of business
operations
In principle, an outside director (or at least a nonexecutive director) shall be appointed as the Chairmanof the Board of Directors, in light of the role of theBoard of Directors to supervise the management.
At the time MHFG transformed into a Company
with Committees, the Board of Directors appointed
the Chairman from among outside directors, and the
Deputy Chairman, as a person who assists with theoperation of the Board of Directors by the outside
director Chairman, from among internal non-executive
directors.
3. Composition of the three legally-required committees
The Nominating Committee determines the contents
of proposals regarding the appointment and dismissal of directors of MHFG to be submitted to thegeneral meeting of shareholders, and exercises
approval rights in MHFG with respect to the appointment and dismissal of directors of the Group's Three
Core Companies (MHBK, MHTB, and MHSC). The
Compensation Committee determines the compensation for each director and executive officer, as
defined in the Companies Act, of MHFG, and exercises approval rights in MHFG for compensation foreach director of the Group's Three Core Companies.
All members of these Committees, including the
Chairman, shall be appointed from among the outside

Old

Company with
Board of Auditors

New Company with
Committees

Holding Company (FG)

Holding Company (FG)

General Meeting of
Shareholders

General Meeting of
Shareholders

Auditors

Supervision, Audit / Management

Chairman

OutsideInternal

Supervision, Audit

Board of Directors

Board of Directors(Legally Required 3 Committees)
Chairman

Nominating
Committee

ChairmanCompensation
Committee

Chairman

Determine the contents of proposals
regarding the appointment anddismissal of directors
Determine the compensation for eachindividual director and executive
officer, etc.
Prepare proposals regarding appointment

Human Resources Review Meeting and dismissal of executive officers andbasic policies regarding compensation
for directors, etc.

Deputy Chairman

Audit
Committee

Chairman
OutsideNonexecutive

Risk Committee

Audit the execution of duties bydirectors and executive officers, etc.
Give advice regarding risk governanceInternal
External Director Session

President & CEO(Group CEO)President & CEO(Group CEO)

Executive Directors,
Executive Officer*1

Explanatory Note
Outside (& Non-executive)

Management

FG: Mizuho Financial Group
BK: Mizuho Bank
TB: Mizuho Trust & Banking
SC: Mizuho Securities

Executive Officers*2

Bank (BK)
President &CEO

Trust & Banking(TB)

Securities (SC)President &CEO

President &CEO

Heads of Units

Relationship Management Units

Personal Banking, Retail Banking, Corporate Banking(Large Corporations), Corporate Banking, Financial
Institutions & Public Sector Business, International Banking

Heads of Units

Products Units
Markets Unit

Investment Banking, Asset Management,
Transaction Banking, Markets
Strategic Planning, Financial Control & Accounting,Heads of Groups Corporate Planning & Management Risk Management, Human Resources, IT & Systems,
Operations, ComplianceInternal & Non-executive
Internal & executive*1: Executive Officer as defined in our internal regulations*2: Executive Officer as defined in the Companies Act and Executive Officer as defined in our internal regulations

directors (or at least non-executive directors).
At the time MHFG transformed into a Company
with Committees, all members of the Nominating
Committee and the Compensation Committee wereappointed from among the outside directors.
Also, the Audit Committee that audits the legality
and appropriateness of the execution of duties bydirectors and executive officers shall be comprised of
no less than five members, and the majority of thosemembers shall be outside directors. At the time MHFG
transformed into a Company with Committees, themembers were comprised of three outside directors
and two internal non-executive directors who are fulltime members of the Audit Committee, and the
Chairman was appointed from the full-time membersof the Audit Committee.
4. Composition of executive officers
MHFG shall appoint the President & CEO (Group CEO)and, in principle, the most senior staff who control

units that comprise profit units under the control of
the President & CEO (Group CEO), group heads, andthe Head of Internal Audit Group as executive officers
based on the policy that it is necessary to appoint as
executive officers people who make decisions on execution of operations delegated by the Board of
Directors as managers of MHFG and who assume acomprehensive role of execution of operations.
At the time MHFG transformed into a Company
with Committees, the Board of Directors appointed
12 executive officers, based on the policy above.
(3) Establishment of voluntary committees and supportingorganizations
1. Establishment of voluntary committees
As advisory bodies, etc. of the Board of Directors, thefollowing voluntary committees, the majority ofwhich are outside directors and outside experts, havebeen established.
• Risk Committee: advises on risk governance19Enhancement of Corporate Governance• Human Resources Review Meeting: conducts thedeliberation of proposals regarding appointment
and dismissal of executive officers, as defined in the
Companies Act, of MHFG, and appointment andremoval of executive officers, as defined in ourinternal regulations, with titles, of MHFG and theGroup's Three Core Companies, as well as proposals regarding the basic policy on compensation system for, and individual compensation of, directors
and executive officers of MHFG and the Group's
Three Core Companies.
The Group also established the External Director
Session in order to make a place to share awarenessof top management issues through communication
between the Group CEO and outside directors, and to
frankly exchange opinions among outside directors.
2. Establishment of Corporate Secretariat and Audit
Committee Office
MHFG established Corporate Secretariat as anorganization to support the governance system consisting mainly of outside directors, and effective andsmooth operation of the Board of Directors.
Audit Committee Office was also established as
an organization in charge of assisting duties by the
Audit Committee.

20

Business Approaches

Approaches to Individual Customers

In order to meet the needs of individual customers throughout their lives, Mizuho prepares financial plans and advises
each customer on products and services such as household
account management, preparation for the future, housing
and education funds, retirement fund management, inheritance funds, and so on, to meet the various stages and circumstances of their lives.

overseas equities and bonds as well as structured bonds,
MHSC is making efforts to enhance its capabilities for providing investment information in a timely manner. Moreover,through its financial product intermediary and customer
introduction services, it offers a wide range of financial
products to customers across Japan by supplying theseproducts to MHBK, registered regional banks and otherfinancial institutions that have strong customer bases intheir respective areas.

Meeting Customers' Asset Management Needs

Investment Trusts and Insurance Products

Approaches to the Japanese Version of
the Individual Savings Account (NISA)

In order to support the management of its customers' invaluable assets, Mizuho offers a variety of investment productsapart from deposit products, such as investment trusts.
MHBK and MHSC have been expanding their productlineup such as the i-Mizuho Index Series, a group of 22 noload funds which are offered through the Internet, and managed by BlackRock, one of the largest asset managementcompanies in the world, as well as a fund featuring flexible
reallocation of the asset portfolio to suit market conditions.
In addition, Mizuho offers a selection of insurance products, ranging from personal pension insurance and wholelife insurance to medical insurance and long-term care insurance to help customers prepare for future contingencies. In
January 2014, MHBK began to offer a group medical insurance plan, Minna no Kantan Iryou Hoken, to all its customers
holding ordinary deposit accounts.

Mizuho advises its customers on making use of theJapanese version of the Individual Savings Accounts(NISAs), which are tax-exempt up to a specified limit,
for asset management, based on interviews withcustomers to determine their specific asset management needs.
It is also drawing on the comprehensive capabilities of the group. For example, MHBK and MHTB are
introducing their customers with equity investment
needs to MHSC. As of March 31, 2014, a total of
about 500,000 customers had made applications for
opening these accounts.

Meeting Customers' Lending Needs

Asset Management Products with Trust Functions

Housing Loans

MHTB offers results-based dividend-type money trusts
Chochiku no Tatsujin (Expert Saver). These trusts are provided at all branches of MHBK, with the exception of thosespecializing in corporate business, and many customers aremaking use of this product.
In addition, MHTB provides Asset Management Trust, atrust product which is separately established and managed
for each customer primarily by accepting their stocks, bonds,
and other securities. Making the most of the know-how it
has accumulated through its asset management business asa trust bank, it is responding to customers' various needs
ranging from support for asset management and investment
to methods for dealing with treasury stocks, which require
special care.

From August 2013, MHBK is offering Life Stage Support
Plan, a service that makes it possible to increase or decrease
housing repayments to meet the household budget requirements of various life stages, such as periods when income
declines as parents take child-rearing leaves and times when
expenses rise as children enter school.
Meanwhile, to enable our customers to consult on weekends and during the evening on weekdays, MHBK holds
housing loan consultations and has set up Loan Consulting
Squares for consultations and loan contracts.

Equities and Bonds
Besides offering investment products such as domestic andReverse Mortgage Loans
Against the background of the demographic aging of the
population, MHBK offers Mizuho Prime Age, a reverse mortgage loan where customers may obtain loans based on theasset value of their homes. MHBK is working with leading
fee-based nursing home management companies, real estate21

Business Approaches

Approaches to Individual Customers

management companies, and security guard service companies to provide a wide range of benefits and improve
related services.

convenience stores, and elsewhere. As a result, customers
will have access to ATM services at the same fees charged
on MHBK ATMs in locations that are more convenient for
their daily routine.

Money & Loan Support Service “Mizuho MyWing”
Services through Internet and Other Channels
MHBK began to offer Mizuho MyWing service in February
2014. It provides a package of services, including a loanfunction, household management applications software,
toll-free telephone advisory services, various types of seminars, and other functions that help customers realize their
dreams.

Rental Condominium and Apartment Loans
MHTB offers the Produce rental condominium and apartment loan product to customers who want to make more
effective use of their real estate. Produce, a dedicated loan
product for rental condos and apartments, offers loans of
up to ¥1 billion with a maximum repayment period of 35
years (for reinforced concrete construction) in the Tokyo
metropolitan area and the Kinki region. It also provides leasebusiness consulting services to help customers with their life
planning or inheritance arrangements for the future.

Improving Channels and Membership Services

Branches and ATM Network
Mizuho is making efforts to expand its branch and ATM
network.
It is establishing joint branches that make use of banking, trust banking and securities functions. Specifically, it
has set up MHTB's Trust Lounges which specialize in consultations and MHSC's Planet Booths, which are locatedwithin the same buildings as MHBK branches.
Furthermore, MHBK, MHTB, and MHSC have begun tooffer their customers services on AEON Bank ATMs fromthe second half of fiscal 2013. AEON Bank ATMs are located nationwide in Japan in shopping centers, supermarkets,

Extension of ATM Corner Operating Hours
Beginning in March 2014, MHBK extended the operating hours of its ATMs. Now, customers can makeuse of about 600 locations, mainly around railway
and other stations from 6 AM through 2 AM the following day.

22

To enhance customer convenience, Mizuho continues toimprove its services using the Internet. As of the end of
March 2014, about 10 million people signed up for MHBK's
Mizuho Direct. In addition, the number of smartphone andtablet banking users has exceeded 1 million. Also, many customers are making use of the Mizuho Bank App, which has
been downloaded approximately 350,000 times as of theend of September 2013.
To provide for an even more pleasant usage environment, MHBK is upgrading the various kinds of services it
offers for smartphones.

New Services Available on Smartphones
Mizuho is steadily increasing the range of convenience services customers can access using their smartphones. These include the Kantan Koza Kaisetsu
Application, an application that enables users toopen new accounts by making use of their smartphone cameras, a function that provides information
on how crowded branch teller windows are andsounds an alarm when their service number is called,
and a voice-based application that allows customers
to search for branches and ATMs.
In recognition of its initiatives to offer moreadvanced services, in April 2014, Mizuho received
the MCPC* Award's Encouragement Prize for its“smart reception system available through smartphones.” This marked the fourth consecutive year
since 2011 for Mizuho to receive this award.
*MCPC: Mobile Computing Promotion Consortium

Promoting Business Aimed at Employees ofCorporate Customers
MHBK provides products and services for senior executives
and employees of Mizuho's corporate customers to meetthe various needs of each customer at each stage of his or
her life. These include opening accounts for receiving salary
when they start to work, offering information on asset formation, consultations on housing loans for new house purchases, offering comprehensive proposals on postretirement
life planning, and managing retirement allowances.

Mizuho Mileage ClubAt the end of March 2014, over 10 million people signed up
for MHBK's Mizuho Mileage Club service. Club members
can take advantage of attractive benefits, if they meet certain qualifications, that include exemption from payment ofafter-hours ATM fees. Also, beginning at the end of May
2014, customers who maintain certain balances in their
MHSC and MHTB accounts became eligible for these services and are now able to use even more convenient MHBK
services.

Meeting Customers' Asset Inheritance Needs

Testamentary Trusts
MHTB's testamentary trust business offers three services:“consent to undertake the execution of wills service,” acomprehensive service for handling everything to do withwills, from consultation for drafting to execution; “will safekeeping service” to hold wills in safe custody; and “inheritance distribution service” to act as agent for heirs in executing the procedures necessary when an inheritance arises.
As of the end of March 2014, MHTB had signed trust agency
contracts for testamentary trust business with a total of 25
financial institutions, including MHBK and MHSC.

Asset Inheritance Support Utilizing Trust Services
MHTB offers its Monetary Asset Inheritance Trust, named
Yasuragi, which is a form of specified money trust thatenables customers to leave tailor-made instructions for the
distribution of their monetary assets. By combining this product with the features of testamentary trusts which focus on
the distribution of customers' entire assets, MHTB meets thevarious needs of its customers concerning their inheritance ofmonetary assets.

“Mizuho Family Trust” Introduced
Beginning in May 2014, MHTB began to offer its
Mizuho Family Trust. Under the arrangements of thistrust, when assets are to be inherited, the funds thatthe heir requires for his or her current and future
livelihood are paid to the recipient specified in theterms of this trust. These arrangements draw fully on
the features of trusts and provide strong support for
future family needs.

In addition, based on a system established following revisions in the taxation system that were enacted in fiscal 2013,
MHTB introduced an education tuition trust, named Manabino Okurimono, which enables grandparents to give funds foreducational purposes to their grandchildren on a tax-exempt
basis, provided certain conditions are satisfied. This trust isalso offered through MHBK, which acts as an agent for
MHTB.

Services for Customers with Real Estate
In cooperation with Mizuho Trust Realty, MHTB responds to
its customers' diverse needs, including trading in real estatefor investment and making more efficient use of idle land.
MHTB provides total support services for its customers'
real estate transactions. This includes information that takes
account of trends in laws and regulations, such as revisions
in inheritance tax matters and changes in legal requirements
for earthquake resistance and other matters as well as measures to assist customers in asset and business inheritance.

Japanese-Style Private Banking through “OneMIZUHO”
High-net-worth customers, principally those among corporate owners, have a wide range of needs related to the business growth and expansion, stable management of individual assets, business and asset inheritance, and other mattersfrom the perspectives of both corporate management andindividuals. In particular, some of the most important issues
to be addressed are obtaining advice on business and asset
inheritance from management and individual perspectives
that takes account of the tax environment in Japan, which
differs from that in Europe and the United States.
Mizuho aims to be the long-term business partner of its
customers among high-net-worth individuals, from both the
management and individual perspectives, and respond to all
their needs related to inheritance of businesses and assets
by the next generations. To this end, Mizuho has created aprivate banking service structure based on collaboration
among banking, trust, and securities.
Mizuho Private Wealth Management (MHPW) offers
comprehensive private banking services, including not only
just financial services but also nonfinancial services for
extremely high-net-worth customers.
In addition, for high-net-worth individuals who own realestate, MHBK, MHTB, and MHSC hold joint seminars andwork to provide customers with the latest information related to real estate markets, changes in tax regulations, andother relevant matters.

23

Business Approaches

Approaches to Corporate Customers

Approaches to Large Corporations

With the increasingly diversified, sophisticated, and globalized financial needs of large corporate customers, financial
institutions need to offer sophisticated, advanced and comprehensive solutions to their customers.
Based on its strong and long-lasting relationships withmajor corporate customers, Mizuho is positioned to offer afull lineup of financial solutions that combine its specialized
functions in banking, trust banking, and securities to meetcustomer needs for fund-raising and management as well as
financial strategies.
Acting as relationship managers (RMs) for the entire
group, Mizuho's RMs for large corporate customers accurately identify their customers' management issues and offer
diversified solutions to help them realize their growth strategies. Services range from precisely identifying customer's
management issues to providing support for realignment ofdomestic businesses, implementing cross-border M&A, andglobal business development.

Banking, Trust Banking, and Securities Collaboration
Staff members of Mizuho are concurrently working in someof the domestic business promotion divisions at both MHBK
and MHSC, thus promoting further collaboration within thegroup. MHBK and MHSC collaborate at home and overseas
in establishing global securities business strategies and providing solutions that are suited to customers' capital management as well as business and financial strategies.
In addition, RMs of MHBK and MHTB are working together as one to meet the diverse customer needs for management of their assets, streamlining their balance sheets andother services. This collaboration enables them to offer the
optimal trust solutions to their customers based on an industry leading track record in real estate as well as know-how
and experience in the fields of pensions, securitization, securities administration, transfer agency services, and consulting.

Industry Research
Changes in global industrial structures and diversification of
corporate strategies appear to be gaining momentum.
Against this background, Mizuho's Industry Research
Division acts as the research team, proposing global andcomprehensive solutions to customers on the basis of its
deep understanding of industry. Its activities focus on threeareas: (1) the “sector-specific analyst function,” which offers
wide-ranging information and analysis concerning industry;
24(2) the “sector-specific strategist function,” which works on
future business strategy proposals; and (3) the “corporate
finance function,” which supports the formulation of customers' financial and management strategies.

Approaches to SMEs and Middle-Market Corporations

Responding to Funding Needs
To assist its customers in raising funds for their initiatives
in growth fields, Mizuho has established its Fund forStrengthening Growth Foundations, amounting to ¥1 trillion, and is actively meeting wide-ranging needs for growthfinancing.
Mizuho also offers Mizuho Eco-assist and Mizuho Eco
Private Placement to respond to the funding needs of its customers who adopt a positive approach to environmental issues.
In response to Japan's aging population and fallingbirthrate, Mizuho provides Mizuho Heartful Loans andMizuho Heartful Private Placement to customers who areproactively involved in promoting employment among theelderly and the disabled.

Business Matching
Mizuho is proactively engaged in business matching services, introducing customers of Mizuho who best satisfy thebusiness needs of other customers. During the second halfof fiscal 2013, Mizuho held two major events. The first ofthese was the Business Matching Forum: Food Products
Distribution, and the second was titled the Business Matching
Forum in Tokai, which was based on the theme of healthcare
for senior citizens.

Support for Overseas Business Expansion
Specialist staff in Japan and overseas who are well versed inoverseas business provide the best possible information andservices according to the development stage of the businessin question—local feasibility study, overseas business strategy formulation, establishment of overseas subsidiary, postestablishment business management, and so on through utilizing Mizuho's Asian network, which is one of the mostextensive among any Japanese bank.

IPO Support
Mizuho responds to the needs of customers planning IPOs
by providing services in collaboration with other group

companies: MHSC provides broadly based support as a securities company; Mizuho Capital serves as a venture capital
investor and gives advice on going public; and MHTB offers
advisory and stock transfer agency services.

Mizuho Business Financial Center
MHBK is proactively engaged in the lending business, andhas concentrated its overall lending operations for smallscale companies in Mizuho Business Financial Center, a subsidiary specializing in lending.

Activities to Strengthen GrowthFoundations
Mizuho aims to contribute to the growth of Japan,
the rest of Asia, and the rest of the world and to
become the comprehensive financial group that isopen to the world and wins the maximum trust of its
customers. To contribute to the competitiveness ofJapanese industry, Mizuho actively supplies funds to
its customers and supports their growth strategies.
Recently, MHBK has set aside a fund (lending allocation) totaling ¥1 trillion to finance the strengthening of corporate growth foundations. By settinginterest rates flexibly, Mizuho is actively working to
supply funding for a wide range of large corporations and SMEs.

Asset Backed Lending (ABL) to SME
Customers
To provide smooth supplies of funding to SME customers, MHBK began to handle Mizuho Electronically
Recorded Monetary Claims ABL in January 2014 thattake electronically recorded claims (densai ) that arerecorded with Densai Net as collateral and makeloans against these claims.
In addition, based on the Tokyo Movable Assetand Monetary Asset Claims (ABL) System establishedby the government of Tokyo, in May 2014, it began
to offer Mizuho Tokyo ABL arrangements that lighten the burden of expenses and administrative costs
associated with ABL financing.

Approaches to Financial Institutions andPublic-Sector Entities
To meet the needs of customers among financial institutions,Mizuho offers optimal solutions such as advice on financial

strategies and risk management, assistance in customers'
overseas business and proposals for investment products.
Responding to the needs of customers among public-sector
entities, Mizuho offers comprehensive financial services,such as financing support including underwriting publicbonds, performing services as a designated financial institution, and PFI/PPP. Moreover, in cooperation with otherfinancial institutions and the public sector, Mizuho has
established the Sixth Industry Fund for the Agriculture,
Forestry, and Fishing Sectors, and also in cooperation withother public-sector and private-sector funds, is working toprovide risk capital for growth industries.

Sixth Industry Fund for the Agriculture,
Forestry and Fishing Sector
Mizuho views that restructuring agriculture, forestry,
and fishing in Japan as a growth sector is the key toexpanding domestic demand, creating jobs, and revitalizing regional communities. Drawing on its abundance of investment experience and customer basethroughout Japan, Mizuho is supporting the transformation of Japan's agricultural, forestry, and fishingindustries into growth sectors. Specific examples ofactivities under way to facilitate this transformation
include collaborating with the Support Organization
for Transformation of Agriculture, Forestry, andFishing sectors; regional financial institution; and local
governments as well as establishing sixth industry
funds for the agriculture, forestry, and fishing sectors.
In addition, a sixth industry desk has been establishedin MHBK and are providing risk money, structuringbusiness models, and a policy recommendation initiative that draws on Mizuho's industrial sector
knowledge. These activities are contributing to thetransformation of agriculture, forestry, and fishingindustries into growth sectors and to the revitalization of regional economies.

Investment Banking Products and Services

In its investment banking services, Mizuho offers sophisticated financial solutions that draw on its integrated banking,trust, and securities capabilities to meet the needs of a fullrange of customers, from major corporations to SMEs. To
accelerate the integration of banking, trust, and securities
functions, Mizuho has adopted its “dual hat” structure in its
various areas including M&A advisory services, real estate25

Business Approaches

Approaches to Corporate Customers

finance, electronic claims, real estate arrangements, andstructured finance.

M&A
To increase the corporate value of its customers, Mizuho
offers sophisticated M&A solutions in collaboration with its
group offices and companies at home and overseas.
MHBK is strengthening its initiatives to support the M&A
strategies of its customers through finance arrangements,
including cross-border M&A, acquisitions involving LBO
arrangements, and going private MBOs. In addition, MHBK
provides advisory services for domestic companies withneeds for business succession.
MHSC draws on its advanced sectoral knowledge andknow-how in advisory services, and has compiled a topclass performance record not only in arranging M&A deals
between domestic companies but also in offering advisory
services with a global perspective.

Real EstateMizuho provides comprehensive services and support related
to a wide range of real estate related needs, including structuring the most efficient scheme to raise total funding by
utilizing real estate and real estate investment strategies.
Drawing on its abundant experience and know-how in thebanking, trust, and securities fields, Mizuho is capable ofdealing with a wide range of real estate related issues
through the provision of a diversity of solutions. Issues
addressed include assisting in business realignments, expansion in overseas markets, strengthening financial position,
preparation of business continuity plans (BCPs), diversification of fund-raising sources, rebuilding and effective usageof existing real estate properties, corporate real estate (CRE)
strategy, and real estate related M&A.
Also, MHTB offers real estate related services that are
integral to its trust related services. These include real estate
brokerage; real estate appraisal; land trusts; acceptance ofreal estate properties for administration, disposal, and trust;
asset management; and J-REIT asset custody and accounting
services.
MHSC offer opportunities for accessing capital markets
through various arrangements, ranging from securities
backed by debt obligations, such as commercial mortgage
backed securities (CMBS), to investment products, such as
J-REITs, privately placed REITs, and privately placed realestate funds.

26

Asset Finance
Drawing on its integrated banking, trust banking, and securities capabilities, Mizuho supports customers' financial
strategies by offering sophisticated solutions. These include
domestic and overseas arrangements for securitizing and liquefying short-term monetary claims, lease credit receivables,
mortgage loans, and other assets. Services also include
arrangements for lease financing of movable property, suchas equipment, inventory assets, ships, and aircrafts; wholebusiness securitization, and settlement services using electronically recorded monetary claims (electronic payments, eNoteless, etc.).
MHTB also offers solutions that draw on its trust asset
administration and management services. These include
security trusts for administration of loan collateral claims aswell as escrow and other trusts for holding settlement funds.
Similarly, MHSC offers diverse financial solutions that
include not only syndication and distribution of securitized
products backed by various assets, but also solution thatmatches the investment product needs of a diverse range
of investors and the requirements of corporate customers.
MHSC has achieved the strong track record of major arrangements of securitization related business in Japan.

Project Finance
MHBK is a top global player in the arrangement of, andperformance of advisory services for, project finance deals
that enable the procurement of long-term capital for natural resource development abroad, the building of electric
power generation projects in Japan and overseas, and theconstruction of public infrastructure. In Japan, MHBK is
working in a broad range of related areas. These include its
initiatives to strengthen its support framework for promoting

Geothermal Project in Indonesia
In March 2014, MHBK syndicated a project financearrangement totaling approximately US$1,170 million together with the Japan Bank for International
Cooperation and the Asian Development Bank, forthe construction and operation of the world's
largest-scale Sarulla Geothermal Power Plant projectin North Sumatra Province in Indonesia.
MHBK is not only a member of the lending syndicate but also contributed to the syndication by providing a wide range of advisory services, including
economic analysis, support in contract negotiations,and structuring of financial arrangements.

the wider use of renewable energy, such as the Mizuho
Mega-solar Fund. Project finance activities in Japan also
encompass the arrangement and promoting of PFI/PPP deals
through a newly formed department specializing in this area.

Corporate Finance
Syndication Business
MHBK is proactively engaged in the use of syndicated loansthat employ wide and various sorts of financing, such as
cross-border finance, acquisition finance (M&A, LBO, etc.),
project finance, real estate finance, and finance for businessrestructuring.
MHBK has a global platform for its syndicated loan business (together with its overseas offices) to satisfy the diverse
financing needs of global companies and international institutions located in Asia, Europe, and the Americas. As aresult, the group has maintained the top position for fiveconsecutive periods, with a 34.3% share in Japan in theleague table for fiscal 2013. The group also took eighth placein the global league table.

Trends in Japan's Syndicated Loan Market andMizuho's Share
Mizuho's Share(fiscal 2013)
34.3%(Trillions of ¥)35

needs, its ability to set prices to reflect investor demand with
precision, and its powerful bond sales capabilities.
Equity Underwriting BusinessIn the equities underwriting business, MHSC draws on its
superior stock underwriting know-how and its enormous
equity selling power in Japan and overseas to achieve sectorleading performance by serving as lead underwriter in a
steadily increasing number of large finance deals. Its activities also include providing support for stock exchange listings of customers planning to list their stocks.

Domestic Public-offering Bonds League Table*Underwriting amount basis, including straight bonds, investment
corporation bonds, Zaito institution bonds, municipal bonds (leadmanager method only), samurai bonds and preferred securities.
(April 2013 to March 2014, pricing date basis)

Rank Company name1
2
3

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

Total Domestic Equity League Table*Underwriting amount basis, including initial public offerings, public
offerings, convertible bonds and REITs.
(April 2013 to March 2014, pricing date basis)

Rank Company name
1
2
3
4

30
25

Mizuho Securities
Mitsubishi UFJ Morgan Stanley Securities
Nomura Securities

Amount Share(billions of ¥)(%)
2,820.9 18.5
2,796.8 18.4
2,758.4 18.1

Nomura Securities
SMBC Nikko Securities
Mitsubishi UFJ Morgan Stanley Securities
Mizuho Securities

Amount Share(billions of ¥)(%)
865.8 30.9
483.3 17.3
400.2 14.3
333.4 11.9

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

20
15

M&A Advisory Ranking
0

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

[Trends in Japan's Syndicated Loan Market]
Sources: “Loans Syndicated and Loans Transferred” from Japanese Bankers Association[Share of Japan's Syndicated Loans (fiscal 2013, bookrunner basis)]
Source: Thomson Reuters*Based on No. of deals Japanese companies were involved in (excl.
real estate deals).
(April 2013 to March 2014)

Rank Advisor
123

Sumitomo Mitsui Financial Group
Mizuho Financial Group
NomuraNo. ofAmountdeals (billions of ¥)151 2,340.5
140 1,584.8
100 2,603.7

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

Private Placement Bond
To meet the diverse funding needs of customers, MHBK isproviding support in the form of long-term, stable capitalthrough the issuance of bonds in the private-placement
markets.
Bond Underwriting Business
MHSC maintains its sector-leading performance in the area ofbond underwriting operations through its ability to propose
solutions that suit the market environment and match issuers'

Overall ABS Bookrunner League Table*Transaction amount basis.
(April 2013 to March 2014, closing date basis)

Rank Company name1
2
3

Mizuho Financial GroupMorgan Stanley
Sumitomo Mitsui Financial GroupNo. ofAmountdeals (billions of ¥)180 1,130.5
14
377.7
7
331.4

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

27

Business Approaches

Approaches to Corporate Customers

Transaction Business

Domestic Settlement Service
Through its nation-wide branch network and Internet banking services including the Mizuho e-Business Site, Mizuho
offers not only services such as transfers, foreign exchange
and electronically recorded monetary claims but a variety ofsettlement services relating to payments and collections suchas debit cards, Pay-easy, Internet transfer settlements, etc.

tailored to customer requirements and backed by the extensive experience of its staff who have specialized know-how
in the tax and legal regulations of various countries. MHTB
also offers other high-value-added services, including securities lending as well as foreign exchange and money market
transactions. Mizuho Trust & Banking (USA) and Mizuho
Trust & Banking (Luxembourg) provide asset administration services for foreign-based investment trusts and are
responding to sophisticated fund administration needs ofasset management companies. TCSB, which is a trust bankspecializing in asset administration, collaborates with
Mizuho group companies, to offer high-quality, high-valueadded trust and custody services.

Cash Management Service
Asset Custody Business
Mizuho responds to customers' needs on a global basis byoffering sophisticated cash management services. In Japan,
these include zero balancing services and integrated payment
services, often in combination with Mizuho Advanced CMS. It
also offers Mizuho Global CMS and the Mizuho Global CashPooling Service abroad.

MHTB provides highly specialized services and is engaged incomplicated, high-volume custodial services covering specified money trusts (tokkin funds), pecuniary trusts other thanmoney trusts, and entrustment of securities trusts andinvestment trusts.

Foreign Exchange and Trade Finance

Stock Transfer Agency BusinessIn addition to offering cross-border settlement services for
RMB and various emerging currencies, hedges against foreign exchange risk and issuing bonds for foreign trade,
Mizuho provides cutting-edge solutions including securitization of overseas accounts receivable, trade finance using letters of credit and ECA (export credit agencies) finance.

MHTB handles various operations associated with stocks onbehalf of the stock issuer, such as managing shareholder
registers, calculates dividends, mails notices convening general meetings of shareholders and counts voting rights. It
also offers support and consulting on IR using shareholder
analysis systems and by collaborating with the group's IR
consulting company.
In April 2014, MHTB established an equity strategy consulting department and is working to substantially strengthen its IR support service and consulting functions. In addition,
services for dividend payments on stocks after the close of
the payment period are available at MHBK, and Mizuho
endeavors to improve shareholder convenience on a groupwide basis.

Yen Settlement and Custody Services for
Non-residents
MHBK offers various cash and securities clearing & settlement
services, including correspondent yen settlement services andcustody services for non-residents. To prepare for disasters
and other contingencies, it maintains a dual office system. In
addition, in the area of custody operations, it has acquired abusiness model patent for managing investment assets.

Global Custody Business
To meet the growing needs of its customers for global
investment related services, MHTB has established a networkwith Trust & Custody Services Bank (TCSB), and with its own
overseas subsidiaries, Mizuho Trust & Banking (USA) andMizuho Trust & Banking (Luxembourg), to offer global custody services (for administration of overseas securities) to theglobal market. In this global custodian business, MHTB
offers in-depth services, as a Japan-based custodian, that are28

Business Approaches

Global Business

Mizuho offers optimal solutions for the various needs of its
customers by seamlessly combining its rich experience inoverseas markets with its extensive overseas group networkand cutting-edge financial services in the fields of banking,trust banking, and securities. To further strengthen overseas
support frameworks for its customers, Mizuho also engages
proactively in expanding its office network and forming
business alliances with local financial institutions andgovernment-affiliated organizations.

Asia and Oceania Region

Mizuho positions Asia as an extremely important region andis enhancing its support framework for customers there dueto the excellent prospects for ongoing economic growth.
To offer services in close proximity to its customers,
Mizuho is expanding its network of offices in countries
where Japanese companies have focused their operations todate, such as ASEAN countries, India, and China, and also inareas where Japanese companies are expected to establish
new operations going forward. These offices offer not only
loan financing but also a range of other services, including
advisory and cash management services, to precisely meetthe needs of Mizuho customers. In addition to providing
support for Japanese companies entering overseas markets
and expanding their businesses, Mizuho is also enhancing
services for non-Japanese and global multinational companies that are entering Asian and other markets based on theadvisory expertise that it has accumulated to date, its settlement and other services, and by coordinating the activities
and services of both Mizuho branches and other offices
around the world.
MHBK expanded its office network in fiscal year 2013 by
opening the Bangalore-Devanahalli Branch and Chennai
Branch in India and a representative office in Phnom Penh in
Cambodia. Mizuho Bank (China), MHBK's subsidiary in
China, opened a branch in Hefei, and sub-branches in the
Shanghai Pilot Free Trade Zone and Changshu.
MHBK is forming alliances with local financial institutions
and government-affiliated organizations in various countries
to establish structures to meet the diverse needs of its customers through provision of information, support for market
entrance, and provision of financial services locally. Examplesof this include the signing of a memorandum of understanding for business cooperation with the Lao Ministry ofPlanning and Investment in the Lao People's Democratic
Republic in July 2013. To offer financial services in local currencies to Japanese companies after they enter Asian markets, MHBK has concluded agreements with major local

financial institutions, including memorandums of understanding with Cambodia's largest banks, Maybank(Cambodia) and Canadia Bank in September 2013.

Opening of a Sub-branch in China (Shanghai)
Pilot Free Trade Zone
The China (Shanghai) Pilot Free Trade Zone is thefirst free trade zone in China, and it is implementing
new measures as a pilot location for China's future
economic and financial deregulation, as well as manyother kinds of institutional reforms. It will also beeasier for foreign companies to enter service businesses, such as telecommunications, education,
medical services, and entertainment, which havebeen difficult to enter to date. The free trade zone
will simplify procedures for trade and logistics, andincrease the efficiency of clearing and settlementsin the financial services sector. The zone has alsoenabled banks to enhance services.
The opening of the Shanghai Pilot Free Trade
Zone Sub-branch as an office of Mizuho Bank (China)
will accelerate acquisition of related information andexpertise and benefit customers by speeding up
progress toward improvement in the financial services
field.

Strengthening Services through Allianceswith Overseas Financial Institutions
MHBK and Vietcombank, which already enjoy a successful capital and business alliance, entered into anagreement with AEON Vietnam to provide money
collection services and credit and debit card settlement services to AEON's first shopping center in
Vietnam. Vietcombank has established a sub-branchin the shopping center, and is installing ATMs as wellas credit and debit card payment terminals. It is also
providing money collection services, while MHBK isoffering cash pooling services as well as foreign andtrade payment services. The two banks are working
to offer advanced and comprehensive financial services to meet the diverse needs of their customers.
Through alliances with overseas financial institutions,

Signing ceremony with AEON Vietnam

29

Business Approaches

Global Business

Mizuho will continue to enhance its strengths inproviding customers with comprehensive financial
services.

Myanmar Thilawa Special Economic
Zone (SEZ) Project
The Myanmar Thilawa SEZ project was initiated by
the governments of Japan and Myanmar to develop
an industrial estate and urban center with a total
area of approximately 2,400 hectares, which isequivalent to about 40% of the area within Tokyo's
Yamanote rail line. It is located inland from theThilawa Port, a place that is attracting attention as
the one of the last frontiers in Asia, and it is approximately 20 kilometers southeast of Myanmar's largest
city, Yangon. MHBK was commissioned by Japan's
Ministry of Economy, Trade, and Industry fromJanuary to March 2013 to conduct a review of business viability and the feasibility of attracting industry
to the area. Further, MHBK has seconded staff to thejoint venture company developing the advanced
zone (approximately 400 hectares), which is being
led by corporations from both the public and privatesectors in Myanmar and Japan. Mizuho has also
received a commission from the Japan International
Cooperation Agency (JICA) to act as the representative company for research on creation of businessplans for the rest of the zone (approximately 2,000
hectares) beginning in October 2013.
Mizuho continues to draw on its knowledge andinsight into various industries and track record inoverseas projects to contribute to economic development in emerging countries as well as provide support to customers who are expanding their businesses overseas.

The Americas

In the Americas, Mizuho provides services to customers in North
America, which has a large economic scale and is expected
to experience relatively stable growth supported by shalegas resources and other factors, and to customers in Central
and South America, where further economic development is
forecast in the future. Mizuho offers financial services withhigh added-value to its broad customer base, which includes
Fortune 1000® companies, financial institutions, and publicorganizations, in the fields of corporate finance, such as
project finance and syndicated loans, and also investment
30

banking. Various entities within the Mizuho group cooperate
to provide a range of services to meet diverse customer
needs. For example, in the case of financing for M&A deals,
MHBK provides loans and Mizuho Securities USA offers
underwriting services for bond issuance. In these and otherways, such as through offering of proposals for financial solutions that make optimal use of the Mizuho group network,
Mizuho is achieving strong performance in the Americas.
MHBK is also expanding its office network with a focus onregions that are expected to experience economic growth. In
Brazil, one of the biggest world powers in natural resources
and a country with strong potential for economic development with a population of over 200 million and a vast landarea that is approximately 23 times larger than Japan, MHBK
made former Banco WestLB do Brazil, a subsidiary of the former German bank West LB (currently Portigon), a subsidiaryand commenced operations as Banco Mizuho do Brasil in July
2013. In October 2013, MHBK opened its third office inCanada, the Calgary Office, which is located in a region thatis home to many energy-related corporations, including thosein the shale gas and oil sectors.

Europe, the Middle East and Africa

Mizuho provides a wide range of financial services to meetthe diverse needs of its customers in Europe and also in otherregions where high growth is expected such as Russia, theMiddle East and Africa. MHBK and Mizuho International,
MHSC's subsidiary in the UK, collaborate closely to provide
investment banking services such as capital market transactions and M&A advisory.
To support European multinational corporations in thedevelopment of their operations in Asia, Mizuho is also
drawing on the cross-border teamwork of its global andgroup networks to provide a wide range of services. This
includes foreign exchange and settlement services in Asian
local currencies, support for IPOs in Asian capital markets,and support systems that involve cross-regional teamwork.
Mizuho expanded its office network by opening a representative office in Johannesburg in December 2013, which isthe first office for Mizuho on the African Continent. The
Republic of South Africa is drawing increasing attention
among Japanese, European, US, Chinese, Korean, and othercorporations as a foothold for entry into the markets of the
Sub-Saharan region.

Business Approaches

Asset Management Business

By leveraging its advantages as a comprehensive financialgroup and making the most of the synergies between planning, development and sales in the asset management related business through seamless management, Mizuho provides products and services that match the needs of its
wide range of customers from individuals to institutional
investors.

Pension-related Business

Mizuho offers services and product packages needed forcorporate pension schemes, which range from corporate
pension plan design and the management of pension policyholders and recipients to asset management and custody.
Furthermore, to respond to the ever more diverse andsophisticated management needs of its customers, it integrates its functions across the group to offer services such as
investment solutions and review of pension schemes.

Defined Contribution Pension Schemes
As sweeping reviews of corporate pension schemes move
forward, there is growing interest in introducing and managing defined contribution pension schemes among companies of all sizes. Mizuho has the top performance record inJapan in terms of defined contribution pension plans
entrusted to it for asset management and administration. In
addition, it provides support for the introduction of defined
contribution pension schemes as well as asset management
services and trust products.

Asset Management Business

Mizuho offers services catering to its customers' needs bydrawing on its comprehensive capabilities of the groupthrough analyses and assessments of customers' total portfolios. Taking account of the initiatives on asset management of its customers who are considering such factors aschanges in regulatory and other systems, the conversion tointernational accounting standards, and major fluctuationsin the market environment and financial aspects, it gives
advice pertaining to basic asset allocation and combinationsof investment strategies. These services are offered not only
to pension funds but also to customers among financial andeducational institutions.
Furthermore, it offers funds with various investment strategies to a wide range of customers, from public institutions

that handle pension management to corporate pension
funds. It also offers products using various new investment
targets and methods, including hedge funds, privately laced
real estate investment funds, concentrated investment funds
and package products that flexibly allocate assets based on
analysis and forecasts of the macroeconomic and capital
market environments. In addition, it makes the funds
offered by external investment institutions in Japan andoverseas available to customers, but makes sure they are
subjected to thoroughgoing due diligence and rigorous
monitoring.

Revitalizing ¥1,600 Trillion in Domestic Assets

Mizuho has looked to the future of the asset managementbusiness in Japan 10 years from now and formed a project
team to revitalize the management of Japan's ¥1,600 trillion
in domestic monetary assets. In view of the national interestand it's social mission as a financial institution, it has prepared long-term business plans to deal with various issues,by enhancing the service channels of financial institutions,and providing related consulting services and financial products as well as other related matters, including promoting
the shift from “savings deposits to long-term investments”
principally among worker households. Through these various activities, Mizuho is working to meet the full range offinancial needs of retirees, including asset management.
Looking 10 years forward and providing an in-depth
response in view of changes in the social environment, theteam is working to create an environment that will be suited
to long-term investing. This also includes making proposals
for policies related to the tax system and the financial system, considering the frameworks for transferring the assetsof the elderly, and formulating plans for diversification of
investments of pension funds and other institutional
investors into long-term risk assets (including private equity
and infrastructure investments).

J-ESOPs

Interest among companies in the area of J-ESOPs (Japanesestyle employee stock ownership plans; a new employee welfare service that uses treasury stocks) is increasing. Mizuho
provides disposition-type ESOPs, retirement benefits, andthe Board Benefit Trust, which is a compensation plan forsenior executives in Japan, in order to meet the diverse
needs of its customers.
31

Business Approaches

Asset Management BusinessInitiatives of Asset Management Companies

Awards Received in Fiscal 2013
Mercer MPA Awards 2013 JapanMHTB

The asset management companies MHAM, DIAM andShinko Asset Management constantly pursue optimal investment results in both the investment trust and the investment
advisory businesses as they strive to respond accurately tocustomers' increasingly diverse and sophisticated asset management needs. They have earned an excellent reputation
among evaluation institutions for their highly specialized
management and original products and have received various
awards.

Global Alternative Investment Business

DIAM

R&I Fund Award 2014
MHTB
MHAM

DIAM

ShinkoAlternative investment products are known as assets (asset
classes) having relatively low correlation with traditional
investment assets such as stocks and bonds. To respondaccurately to the wide range of needs of institutional
investors, who require greater diversity and dispersal amongassets, Mizuho provides optimal products and services in collaboration with group companies: Tokyo asset managementcompany Mizuho Global Alternative Investments, which
selects and provides products such as global high grade
hedge funds; U.S. subsidiary Mizuho Alternative Investments,
which is in charge of investing funds; and Eurekahedge, asubsidiary in Singapore that offers hedge fund research andinformation.

MHTB and Partners Group who have signed a
Business Alliance Agreement, will jointly cultivate
investments in the private equity and infrastructure
segments outside Japan and market them to thepension market in Japan. Furthermore, they will discuss and cooperate with each other for the purposeof expanding the business relationship into other relevant business segments.
Mizuho will continue to improve its products
offering in order to help its customers meet theirinvestment needs going forward.

32

Defined Benefits Pension Category/Japanese Equity
Growth Fund
Investment Trusts Category / Japanese Equity Fund
Investment Trusts Category / Japanese REIT Fund
Investment Trusts Category / North America Bond Fund
Investment Trusts Category / Australia and New Zealand
Bond Fund
Investment Trusts Category / High Yield Bond Fund
Defined Contribution Pension Category / Japanese BondFundNISA / Japanese Equity Fund
Investment Trusts Category / Asia Equity Multi-country
Fund
Investment Trusts Category / China Equity Fund
Investment Trusts Category / Global Equity Fund
Investment Trusts Category / India Equity Fund
Investment Trusts Category / Global Infrastructure
Equity FundNISA / Global Equity Fund

Morningstar Fund of the Year 2013
MHAM
DIAM
ShinkoDomestic Stock Fund Division
Alternative & Balanced Fund Division
Bond Fund Division

Morningstar Fund of the Decade 2013
DIAM

Bond Fund Division

Lipper Fund Awards Japan 2014
MHAM
DIAM

ShinkoBusiness Alliance Agreement with
Partners Group

Japanese Fixed Income Category (3 years)
Japanese Equity Growth Category (3 years)
Japanese Equity Small and Mid Cap Category (3 years)

Bond / over 3 years (2 funds)
Bond / over 5 years
Equity / over 3 years (2 funds)
Equity / over 5 years (3 funds)
Bond / over 10 years
Bond / over 3 years

Morningstar
References to any specific securities do not constitute an offer to buy or sell
securities. Those awarded funds based upon the past performance cannot
guarantee their future performance. Data or statements are obtained fromsources Morningstar Japan K.K believed to be reliable but are not guaranteed
as to accuracy or completeness. All information is the property of Morningstar
Japan K.K. or Morningstar, Inc. and protected by copyright and intellectual
property laws. All rights reserved.
R&I
R&I Fund Award is based on the past data, and does not guarantee future
performances of the fund.
The Award is presented only to provide information that can be used as areference, and it does not intend to encourage investors to buy, sell or holdthe relevant fund. Furthermore, it has no relation with the qualitative information Rating and Investment Information, Inc. (R&I) provides to its clients.
The Award is calculated by R&I based on information believed to be reliable;
however, its accuracy and completeness are not necessarily guaranteed.
The Award is not the Credit Rating Business, but one of the Other Lines ofBusiness (businesses excluding Credit Rating Business and also excluding theAncillary Businesses) as set forth in Article 299, paragraph (1), item (xxviii) of
the Cabinet Office Ordinance on Financial Instruments Business, etc.
With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining to such business would
not unreasonably affect the Credit Rating Activities.
The copyright and other related rights of this Award are the sole propertyof R&I.
Use of the information contained herein (including reproducing, amending,sending, distributing or mutilating the information) is prohibited without R&I's
permission.

Business Approaches

Market Business

Mizuho offers products and services to meet the diverse
needs of its customers and support their global business by
integrating its banking, trust, and securities functions andseamlessly promoting its market business.

high-value-added products. It also attempts to leverage its
overseas network for the integrated development of domestic and overseas business.

ResearchMarket BusinessIn the sales and trading business, MHBK offers optimal
financial solutions that use cutting-edge financial technologies to satisfy customers' increasingly diverse and sophisticated global financial and business risk control needs.
MHBK has expanded its product lineup from basic areas
such as interest rates and foreign exchange to oil, metals,
and other commodity derivatives, and local currency transactions. For customers expanding business overseas in particular, it provides the best hedge finance methods that takeaccount of the market environment. Also, in the fields ofAsian and emerging currencies, it is drawing on collaboration among specialist teams who are well versed in the regulations and markets in various countries and its global network of offices to develop financial product schemes thattake advantage of the characteristics of individual markets inJapan and overseas in response to increasingly sophisticatedneeds of its customers for more efficient hedges and management of market risk.
Through its tie-up with Mizuho-DL Financial Technology,
which is a group company specializing in the developmentof financial technology, MHBK developed “dynamic foreignexchange hedging”—a statistical/probabilistic exchange risk
hedging method that eliminates market views and arbitrariness. Many customers, with a focus on large corporations,have made use of “dynamic foreign exchange hedging.”
MHSC offers diversified investment products and services
in order to meet the needs of its customers in Japan andoverseas. It will further focus on customer-oriented sales andtrading business and tailored solutions business in order tomeet the needs of its customers.
As a market leader in the fixed income business, MHSC
provides products and information that suit its customers'
investment strategies in a timely manner and engages
proactively in market making.
In the equities business, MHSC appropriately meets thesophisticated needs of its customers by strengthening its
sales and trading structure, the Pan-Asia basis research platform, enhancing IR services for domestic and overseas
investors, and improving its electronic trading capability.
For global institutional investors, MHSC has been expanding its market presence domestically and globally by reinforcing its execution capabilities and offering a variety ofRegarding fixed income research, MHSC has one of theleading professional groups in Japan which provides outlooks for economic and interest rate trends in Japan andoverseas, credit analyses of securities-issuing companies,
assessments of the impact of monetary policies in Japan andoverseas, and proposals for fixed income investment strategies. Furthermore, MHSC works closely with overseas economists within its subsidiaries to provide information globallyby publishing global macro-level reports, etc.
In its equity research, it has strengthened its researchframework on a Pan-Asia basis, including Japan, based on
the needs of institutional investors in Japan and overseas.
Reseachers including top class investment strategists andsector analysts respond to a wide range of research needs
through industry trend research, equity investment strategy
reports, quantitative analysis, evaluation of individual companies, etc.

First Place in Equity Analyst Ranking
MHSC took first place in both the Nikkei Veritas andInstitutional Investors magazine's Equity Analyst
Ranking 2014. This ranking is based on votes frominstitutional investors, and MHSC was highly regarded for its equity research capabilities.

33

Initiatives to Support the Recovery from the Great East Japan Earthquake

Mizuho continues to offer its combined group strengths toassist in rebuilding the lives of people afflicted by the Great
East Japan Earthquake and reviving the industries andeconomies that have suffered as a result of the earthquake,as well as support the recovery of disaster-stricken areas, bysetting up the Tohoku Fukko Desk (Tohoku reconstructiondesk), an organization specialized in promotion of these
initiatives.

Support for Housing Reconstruction
MHBK offers Disaster Recovery Loans for Great East Japan
Earthquake victims with a view to being useful to the recovery efforts of individual customers who were hit by theearthquake disaster. In addition, it supports the reconstruction of homes in the disaster-stricken areas through initiatives such as providing funds for land readjustment projects
aimed at supplying housing in these areas.

Support for Reviving Corporations and Industries
In order to help the disaster reconstruction efforts of corporate customers who have suffered damage from the disaster, Mizuho is facilitating financing by offering Disaster
Relief Support Funding and various policy loans provided bypublic institutions. It also established the Mizuho Tohoku
Industry Development Fund to provide equity-related capital,
with the aim of contributing to the recovery and medium- tolong-term growth of the Tohoku region. Through this fund,
it provides capital in such forms as share acquisitions andunderwriting of subordinated bonds. The ¥1 billion provided
from this fund for replacement of facilities of Joban Kosan,
which operates the Spa Resort Hawaiians hot springs park in
Iwaki City, Fukushima Prefecture, was fully repaid in
September 2013, and the recovery has been moving forward thus far.

Creating Employment
Mizuho is providing support for producers and companies
involved in promoting the sixth industry approach to revitalize agriculture, forestry, and fishing industries. It has invested
in two additional sub-funds, the Fukushima Regional Sixth
Industry Recovery Fund and the Tohoku Future AssistanceFund. In February 2014, the Tohoku Future Assistance Fundsupplied building funds for a frozen food processing company in Fukaura-machi, Aomori Prefecture. This fund is also
supplying funds to dairy business companies in Hironomachi, Iwate Prefecture. Mizuho, therefore, will be supporting the agricultural, forestry, and fishing industries by supplying risk capital.
34

Mizuho is also actively promoting initiatives for renewableenergy in the prefectures that are undergoing reconstruction.
In March 2014, Mizuho supported the Chicken Manure
Biomass Power Generation Project in Karumaicho, Iwate
Prefecture, for the chicken farm companies that were severely affected by the disaster. This is also an epoch-making initiative because it uses chicken manure, which was formerly
wasted, as a clean energy source, and supplies the incinerator ash for use as a raw material for fertilizer. This projectcontributes to the invigoration and promotion of local communities, and also to the wider use of renewable energy.

Support for Disaster-stricken Areas as Part ofSocial Contribution Activities
Mizuho has started the Mizuho Forest Project, aimed atreviving the disaster-prevention forest planted along thecoast of Fukushima Prefecture, which were severely affectedby the tsunami. In April 2013, Mizuho signed an agreementwith Fukushima Prefecture, Iwaki City and the owners ofthe disaster-prevention forest to start the planting of treesby Mizuho employee volunteers in fall of 2014, and torestore the approximately two-hectare forest of Iwaki City,
Fukushima Prefecture by March 2019. In October 2013, it
seconded volunteers from among its employees to engage
in activities such as cleaning up park areas in the vicinity ofareas designated as afforestation lands. Employees seconded to the region are working to provide disaster recovery
assistance aimed at beginning afforestation activities.
Employees of Mizuho have been participating in volunteer activities in disaster-stricken areas since the summer of
2011. In addition, it held product fairs for employees toexhibit and sell products from disaster-stricken areas a totalof nine times in fiscal 2012, and eight times in fiscal 2013.
Since May 2012, it has also supported sales of Fukushima
Prefecture's local products and its tourism industry throughparticipation in the Fukushima–Tokyo Campaign, started by
the Tokyo metropolitan government as part of efforts to
support the recovery of Fukushima.
Furthermore, magazines published by Miyagi and
Fukushima prefectures for people affected by the disaster
have been placed in lobbies of MHBK's branches since
October 2012, with the aim of providing information to victims that have been evacuated outside these prefectures.

CSR Initiatives

CSR Management

At MHFG, Mizuho's Corporate Identity has been formulated
as the concept that forms the basis of all activities conducted as Mizuho. The Mizuho Code of Conduct is positioned as
the ethical rule to be complied with in implementing
Mizuho's Corporate Identity, and serves as the foothold forthe various decisions that will be made on business administration and operation.

Mizuho recognizes the importance of outlining its stancetoward CSR initiatives with respect to its stakeholders. At
the same time, it acknowledges the critical need for employees to pursue initiatives that reflect considerable sensitivity
toward CSR in the conduct of their duties. Guided by theMizuho's Vision in Mizuho's Corporate Identity, Mizuho
indicates its definition and stance regarding CSR in its Basic
Policy on CSR Initiatives, and sets forth uniform policies andstandards for the group regarding the environment, compliance, contributing to society, and other aspects of CSR.

Medium- and Long-Term CSR Initiative PolicyCore Business

Foundation

Social Contributions

Strengthen efforts topromote businesses that
contribute to the sustainable
development of society

Reinforce the Group's
foundations that underpin
activities in line withsociety's expectations

Promote social contributions
activities that take into
consideration the needsof local regions and society

In addition to harnessing ourbroad financial service functions
and supporting the real economy
from the medium- and long-term
perspective, we will strengthen efforts to promote business that
contributes to the sustainable development of society in responseto the renewed expectations ofstakeholders.

Working to promote communications with the broader society andextending beyond simple statutory
and regulatory compliance, wewill reinforce the group's foundations in a bid to engage in activities across the entire organizationthat take into consideration society's expectations.

Based on the needs of local regions and society, we will engage
in activities that take full advantage of our management resources and promote initiatives that
contribute to regional and social
development.

Fiscal 2014 CSR Initiative Policy<Fiscal 2014 Eight Priority Initiatives>
Foundation

Social Contributions

1. Promote multilateral initiatives
that take into consideration social
significance and changes in structures (foster next-generation industries across a wide range offields, including the environment,
elderly, and agriculture; support
innovation; pursue channel innovation; and reinvigorate financial assets in Japan)
2. Promote continuous and multilateral efforts to provide assistance to disaster-stricken areas
based on an accurate understanding of needs
3. Upgrade and expand products
and services that address theneeds of an aging society

4. Promote activities that help increase awareness toward
Mizuho's Corporate Identity
5. Upgrade governance andstrengthen both risk and compliance management systems
based on the increasingly highlevel demands of society andother factors
6. Create a rewarding workplaceenvironment and bolster humanresource development

7. Promote ongoing financial education initiatives
8. Promote activities that take into
consideration the needs of local
regions and society

Our Awareness of the External Environment

Medium-Term Business Plan

Core Business

35

CSR Initiatives

Basic Approach toward CSR Initiatives
Mizuho defines its CSR activities as follows. CSR initiatives
entail the practice of corporate activities that reflect anunwavering awareness toward the importance of Mizuho's
social responsibilities and public mission as a global financialgroup, take into consideration the expectations of stakeholders, and thoroughly fulfill its responsibilities toward
society, which provide the basis for its existence.
In addition, recognizing that CSR initiatives help contribute to the sustainable development of society and provide the platform for creating and advancing corporate
value, Mizuho has positioned CSR initiatives as a pillar of its
corporate conduct.

Medium- and Long-Term CSR Initiative Policy
Mizuho newly set medium- and long-term initiative policy at2014 taking into consideration changes in the external environment and other factors as they relate to CSR. Based on
this policy, we implement CSR initiatives uniformly acrossthe Group.

Fiscal 2014 CSR Initiative Policy
In fiscal 2014, taking account of the Medium-Term Business
Plan and our awareness of the external environment, we prepared a policy for eight initiatives that we are implementing
now.

Based on the group CSR activity policy and considerationof its own business strategy, each core group company
drafts its own CSR activity policy and undertakes management measures to monitor and promote progress in theimplementation of that policy. The results of each company's efforts are reported to the MHFG. Principal core groupcompanies—including MHBK, MHTB, and MHSC—haveestablished CSR Committees (Business Policy Committee),and these committees undertake discussions and deliberations regarding the policies and other initiatives of the relevant company.
In these ways, Mizuho has established PDCA-cycle-based
management systems for the CSR activities of each groupcompany as well as the entire group.
When undertaking CSR activities, emphasis is given tocommunications with stakeholders and, besides relations
with stakeholders in connection with day-to-day operations,additional dialog with stakeholders and other initiatives aretaken to enable the continual receipt of feedback from outside the group as a means of facilitating efforts to improve
CSR activities. Furthermore, to ensure that all staff members
are fully aware of group policies and measures deliberated
by the CSR Committee and to share information andexchange opinions among group companies, liaison meetings for the CSR promotion personnel of the 10 core groupcompanies are held on a regular basis.

CSR Promotion Structure

MHFG

CSR Promotion Structure
In order for Mizuho to promote CSR in a unified manner,
MHFG, the holding company, assumes the role of promoting CSR activities of the entire group. The President andCEO of MHFG oversees initiatives for the CSR activities ofthe entire group, and, internally, MHFG has established the
CSR Committee (a Business Policy Committee), which deliberates on general matters concerning CSR, prepares policies
for CSR initiatives, supervises the policy initiatives and resultsof group companies, monitors progress toward objectives,and performs other functions.
In addition to ensuring that CSR policies and measurespermeate the 10 core group companies, the CSR Promotion
Department which is responsible for the operational functions of the CSR Committee, plans and formulates CSR initiatives, makes suggestions to related divisions and departments regarding those initiatives, manages the progress ofplans for the initiatives, collects CSR information, and disseminates information to parties both inside and outside theGroup.
36

Executive Management
Committee

President & CEO(Group CEO)CSR Committee

CSR Promotion Department
Corporate Communications
Division
Strategic Planning Group

Policies and measures

ReportCore Group Companies**MHBK, MHTB, and MHSC have each established a CSR committee.

CSR Activities

Activities to Nurture Growth Industries
Mizuho is endeavoring in the health care industry centeredon medical/nursing care services anticipating it as an important growth industry.
MHBK and Innovation Network Corporation of Japan
jointly established MedVenture Partners and decided toinvest JP¥6 billion in the MPI-1 Investment Limited
Partnership, an incubation fund operated by MedVenturePartners. Through this investment, it is aiming to create asuccessful business model for the commercialization ofJapanese medical device technology.
This fund invests in the development of the technology
seeds held by Japanese universities, research institutes, andSMEs, acts as a bridge between these institutions and the
medical device manufacturers. Through these activities, thefund aims to structure a framework in Japan that will resultin efficient development of medical equipment. The fundwill focus on structuring a Japanese-style success model forcommercialization of medical equipment technology in the
short term, and, in the medium term, to prepare an environment for innovation in the medical equipment field inJapan. In the long term, the fund aims to contribute to thedevelopment of an industrial base for medical equipment inJapan.
In February 2014, in collaboration with the Tokyo metropolitan government and Tokyo Metropolitan Foundation forSocial Welfare and Public Health, MHBK held a seminar entitled “Serviced Housing for Seniors,” for medical and social
welfare corporations with know-how in medical care andnursing.

Social and Environmental Considerations in Our
Business Activities
MHBK took on the role of Chair of the Equator Principles
Association (EPA) from 1st May. This is the first time an
Asian bank has been appointed as the EPA Chair. The EPA is
an association of 78 global financial institutions that adopt
the Equator Principles (EPs), supporting sound and responsible project development with environmental and social
consideration.
The EPs are a risk management framework adopted by EPfinancial institutions (EPFIs) for determining, assessing andmanaging environmental and social risk in large-scale infrastructure or industrial projects when providing finance.
These are a set of voluntary standards under which EPFIs

request certain actions from the borrower to ensure theproject is executed in an environmentally and socially soundmanner.
MHBK is firmly committed to play a leadership role
among EPFIs as the first Asian Chair to pursue the sustainable economic development of emerging markets in Asiaand all around the world by taking advantage of its longexperience in executing EP-based finance.

A Equator Principles applied project

Social Contribution Activities
Mizuho presents first graders nationwide with Yellow
Badges with the earnest hope that they will not meet withtraffic accidents and commute to school safely every day.
These Yellow Badges signify traffic accident insurance coverage and are given out each year. These activities began as atraffic safety movement as a result of the publication of anewspaper article relating how a mother who had lost achild in traffic accidents sent a letter in 1965 to the Prime
Minister appealing for the elimination of traffic accidents.
This Yellow Badge movement has now marked its 50th year,
and the total number of badges distributed has climbed to61.11 million. (Other companies participating in the Yellow
Badge movement are Sompo Japan Insurance, Inc., Meiji
Yasuda Life Insurance Company, and Dai-ichi Life Insurance
Company, Ltd.)For information on Mizuho's overall CSR initiatives, pleaserefer to MHFG's website.
http://www.mizuho-fg.co.jp/english/csr/index.html

37Corporate Governance“Mizuho's Corporate Identity,” which is composed ofCorporate Philosophy, Vision and the Mizuho Values, serves
as the concept that forms the basis of all activities conductedby MHFG.

Corporate Philosophy: Mizuho's fundamental
approach to business activities, based on the
raison d’etre of Mizuho
Mizuho, the leading Japanese financial services groupwith a global presence and a broad customer base, iscommitted to:Providing customers worldwide with the highest quality financial services with honesty and integrity;
Anticipating new trends on the world stage;
Expanding our knowledge in order to help customers
shape their future;
Growing together with our customers in a stable andsustainable manner; andBringing together our group-wide expertise to contribute to the prosperity of economies and societies
throughout the world.
These fundamental commitments support our primaryrole in bringing fruitfulness for each customer and theeconomies and the societies in which we operate. Mizuho
creates lasting value. It is what makes us invaluable.

Vision: Mizuho's vision for the future, realized
through the practice of “Corporate Philosophy”
The most trusted financial services group with a global
presence and a broad customer base, contributing to
the prosperity of the world, Asia, and Japan.
1. The most trusted financial services group
2. The best financial services provider
3. The most cohesive financial services group

Mizuho Values: The shared values and principles
of Mizuho's people, uniting all executives andemployees
1. Customer First: The most trusted partner lighting thefuture2. Innovative Spirit: Progressive and flexible thinking
3. Team Spirit: Diversity and collective strength
4. Speed: Acuity and promptness
5. Passion: Communication and challenge for the future38

Under the “Mizuho's Corporate Identity,” we form basic
management policies and strategies for our entire groupand have each company in our group work together andpromote such group strategy. We aim to fulfill our socialrole and mission by realizing continuous and stable corporate growth, improving corporate value and shareholderinterests and contributing to internal and external economic
and industrial development and prosperity of society.
We, as a holding company, play an active role in the
management of our group and take on a planning function
with respect to strategies and policies of our group and acontrolling function with respect to each company of ourgroup as part of its business management, and establish a
corporate governance system consisting with the Board of
Directors at its core, which operates for the benefit of theshareholders, and ensure that self-discipline and accountability of management of our group is fully functioning.
Our basic policies regarding our corporate governancesystem are as follows:(1) Secure the effectiveness of corporate governance byensuring the separation of supervision and management
and making supervision of the management such as theexecution of duties, etc., by executive officers the primary
focus of the Board of Directors.
(2) Make it possible for the management to make swift andflexible decisions and realize expeditious corporate management by the Board of Directors' delegating decisions
on business execution to executive officers.
(3) Utilize committees, etc., comprising mainly of outside
directors who are independent from the management ofMizuho, and secure transparency and fairness in decisionmaking processes and the effective supervision of the
management.
(4) In the course of designing the organizations, etc., comprising the corporate governance system that realizes
matters set out in items 1 through 3, the Company is toactively adopt operations and practices that are recommended at a global level regarding corporate governanceas well as compliance with Japanese and foreign laws
and regulations as a financial group expanding across theglobe.
Also, the Corporate Governance Guidelines, the guidelines that set out the framework of the corporate governance system and the roles, composition, and operation policies of the Board of Directors, Executive Officers, Nominating
Committee, Compensation Committee, and Audit Committee
in the Company with Committees in accordance with thebasic policy regarding corporate governance in Mizuho, is
up on the website written below.
(http://www.mizuho-fg.co.jp/english/company/structure/governance/index.html)
The Corporate Governance Report, which sets out thestatus of MHFG's corporate governance system, has been
submitted to the Tokyo Stock Exchange, and it is also put up
on the websites of both the Tokyo Stock Exchange and
MHFG.

Corporate Governance Structure
MHFG maintains the following corporate governancestructure.
Supervision
Board Members and Board of Directors
The main roles of the Board of Directors of MHFG are making decisions on business execution such as basic management policies, which are legally matters to be determinedsolely by the Board of Directors, and supervising the execution of duties by directors and executive officers. The Boardof Directors, in principle, delegate to our President & Executive
Officer, who is also the Group CEO, decisions on businessexecution (excluding matters that are legally required to be
determined solely by the Board of Directors), for the purposeof realizing swift and flexible decision-making and expeditious corporate management and strengthening the supervision of directors and executive officers by the Board of
Directors.
In light of the role of the Board of Directors to supervise
management, the majority of the members of the Board of
Directors consist of outside directors and internal directors
who do not concurrently serve as persons performing executive roles (“Internal Non-Executive Directors,” and together
with outside directors, “Non-Executive Directors”). Currently,
the Board of Directors consists of a total of 13 directors (sixoutside directors, two Internal Non-Executive Directors andfive directors concurrently serving as executive officers), oneof which is a female director.
The chairman of the Board of Directors shall, in principle,
be an outside director (or at least a Non-Executive Director)
in light of the role of the Board of Directors to supervise
management. Ms. Hiroko Ota currently serves as the chairman of the Board of Directors.
Nominating Committee
The Nominating Committee of MHFG determines the contents of proposals regarding the appointment and dismissalof directors of MHFG to be submitted to the general meeting of shareholders and exercises the approval rights held by
MHFG with respect to the appointment and dismissal of
directors of each of the Core Subsidiaries (Mizuho Bank,
Mizuho Trust & Banking, and Mizuho Securities) and exercises the approval rights held by MHFG with respect to the••appointment and removal of representative directors andsenior directors of the Core Subsidiaries.
The chairman of the Nominating Committee shall be an
outside director, and in principle its members shall be
appointed from among outside directors (or at least NonExecutive Directors) in order to ensure objectivity and transparency in the appointment of directors. All members of theNominating Committee, including the chairman, are currently outside directors.
Compensation Committee
The Compensation Committee of MHFG determines thecompensation for each individual director and executive officer of MHFG, exercises the approval rights held by MHFG
regarding compensation of each individual director of theCore Subsidiaries, and determines the basic policies andcompensation system for directors and executive officers of
MHFG and the Core Subsidiaries.
The chairman of the Compensation Committee shall be
an outside director, and in principle its members shall be
appointed from among outside directors (or at least NonExecutive Directors) in order to ensure objectivity and transparency in the compensation of directors. All members of
the Compensation Committee, including the chairman, arecurrently outside directors.
Audit Committee
The Audit Committee of MHFG audits the execution ofduties by the directors and executive officers, monitors andinspects the establishment and management of the internal
control system of MHFG and its subsidiaries, monitors andinspects the condition of the execution of duties withrespect to corporate management of subsidiaries and others
by executive officers, prepares audit reports and determines
the contents of proposals regarding the appointment, dismissal and non-reappointment of accounting auditors to besubmitted to the general meeting of shareholders.
In addition, the Audit Committee audits the legality andappropriateness of the execution of duties by directors andexecutive officers; execute its duties through effective coordination with the Internal Audit Group, etc. on the premiseof the establishment and management of an internal control
system of MHFG and its subsidiaries. The members of the
Audit Committee who have been authorized to collectreports and investigate business property shall directly execute audits of directors, executive officers and the management level of each department and subsidiary.
Given that it is necessary for the Audit Committee togather information through internal directors who are familiar with the financial business and related regulations, share
information among the Audit Committee, and to have sufficient coordination with internal control departments, wein principle appoint one or two Internal Non-Executive

•

•

39

Corporate GovernanceDirectors as full-time members of the Audit Committee. The
majority of its members shall be outside directors. Currently,
among the five members of the Audit Committee, twomembers are appointed among Internal Non-Executive
Directors as full-time members of the Audit Committee andthree members are appointed among outside directors.
All members of the Audit Committee shall be independent under the provisions of the United States Securities
and Exchange Commission and the rules of the New York
Stock Exchange. Further, at least one member of the Audit
Committee shall be a “financial expert” as defined under
U.S. laws and regulations.
We have established committees and other organizations
on a voluntary basis in addition to the above legally-required
three committees as set forth below:
Human Resources Review Meeting
We have established the Human Resources Review Meetingthat consists of the President & Executive Officer and outside directors who serve as members of the Nominating
Committee and Compensation Committee as a deliberative
body that mainly conducts the deliberation of proposals to
appoint executive officers, as defined in the Companies Act,and executive officers, as defined in our internal regulations,with title of MHFG and executive officers, as defined in ourinternal regulations, with title of Core Subsidiaries andassessment of executive officers.
Risk Committee
We have established the Risk Committee that in principle
fully consists of Non-Executive Directors or external experts as
an advisory body that mainly advises the Board of Directors
with respect to the supervision of the determination and theimplementation relating to risk governance.
External Director Session
We have established the External Director Session that consists of all outside directors and the President & Executive
Officer as a forum for free discussions with an aim to deepen outside directors' understanding of our group and share
the top management's awareness of issues through communication among directors.

•

•

•

Execution of Duties
Executive Officers
Executive officers of MHFG take charge making decisions on
business execution delegated by a resolution of the Board of
Directors and implementing the business execution of
MHFG.
We appoint the Group CEO and, in principle, the mostsenior staff who controls units that constitute profit units
under the control of the Group CEO, group heads who
control each group that comprises corporate planning and•40

management units and the Head of Internal Audit Group as
executive officers based on the policy that it is necessary to
appoint as executive officers people who assume a managing role.
While the President & Executive Officer is responsible forthe business operations of MHFG, from the perspective ofproviding a checks and balances function and ensuring sufficient consideration in connection with decision-making, inprinciple, determination of delegated matters relating tomaking decisions on business execution following the transformation into a Company with Committees shall be basedon deliberation of the Executive Management Committee(however, excluding matters ensured to be deliberated
and discussed under sufficient checks and balances by
Non-Executive Directors such as through the Nominating
Committee, Compensation Committee and Human Resources
Review Meeting).
The Executive Management Committee was establishedto serve as an advisory body for the President & Executive
Officer and discusses important matters concerning theexecution of business operations as necessary. The following business policy committees and group strategy conferences have been established to comprehensively discussand coordinate cross-sectional issues and important mattersin terms of group business strategy. The business policy
committees meetings and group strategy conferences areheld as necessary.
Business Policy Committees
Portfolio Management Committee:
Discusses, coordinates and monitors basic portfolio policies
and their implementation.
ALM & Market Risk Management Committee:
Discusses, coordinates and measures performance of basic
ALM policies, risk planning, fund procurement and investment, and market risk control.
Compliance Committee:
With the participation of external experts (one lawyer andone certified public accountant) as special members, discusses and coordinates legal compliance oversight, and mattersrelated to the handling of accidents.
Anti-social Elements Elimination Committee:
Discusses and coordinates matters related to addressing
anti-social elements.
Information Security Management Committee:
Discusses and coordinates the promotion of policies on
information management, risk management pertaining to
information security, compliance with the Law Concerning
the Protection of Personal Information, and rules and regulations concerning information management.
Disclosure Committee:
Discusses, coordinates and measures performance of basic•

disclosure policies and controls.
CSR Committee:
Discusses and coordinates matters concerning the status of
CSR related initiatives, key matters to be addressed, actionplans and CSR reports.
Financing Facilitation Management Committee:
Discusses and coordinates basic financing facilitation management policies and matters concerning the promotion offinancing facilitation management related initiatives.
IT Strategy Promotion Committee:
Discusses and coordinates basic policies on IT strategies, ITrelated investment plans and their operational policies, unification of IT and computer systems within the group, individual IT investment policies, management of computer systems projects and individual computer systems-related matters and information technology risk management, and evaluates investment results of IT-related investments.
Customer Protection Management Committee:
Discusses and coordinates basic policies on customer protection and other management and progress, etc., of various
measures in connection with customer protection and othermanagement.
Group Strategy Conferences
Group Retail Strategy Conferences:
Discusses and coordinates matters concerning performance
evaluation, such as basic strategies, important individual•

strategies and initiatives, business plans and revenue plans
as well as following up on such strategies, initiatives andplans and management resource allocation regarding
Personal Banking Unit, Retail Banking Unit and Transaction
Unit (Retail Business).
Group Wholesale Strategy Conference:
Discusses and coordinates matters concerning performance
evaluation, such as basic strategies, important individual
strategies and initiatives, business plans and revenue plans aswell as following up on such strategies, initiatives and plans
and management resource allocation regarding Corporate
Banking Unit (Large Corporation), Corporate Banking Unit,
Financial Institutions and Public Sector Business Unit,
Investment Banking Unit and Transaction Unit (Wholesale
Business).
Group International Strategy Conference:
Discusses and coordinates matters concerning performance
evaluation, such as basic strategies, important individual
strategies and initiatives, business plans and revenue plans aswell as following up on such strategies, initiatives and plans
and management resource allocation regarding International
Banking Unit.
Group Asset Management Strategy Conference:
Discusses and coordinates matters concerning performance
evaluation, such as basic strategies, important individual
strategies and initiatives, business plans and revenue plans

MHFG's Corporate Governance Structure
General Meeting of Shareholders

Nominating Committee
Compensation Committee
Outside Directors

Human Resources Review Meeting
Risk Committee
External Director Session

Board of Directors
Audit Committee

Outside Directors
Internal Directors(Non-Executive Directors
are in the majority)

Audit

Supervision

Executive Management
Committee

Non-Executive Director(Outside Directors
are in the majority)

Audit

Internal Audit Committee

CEO (Group CEO)

Includes outside advisors
Executive Officers

Group Strategy Conferences

Business Policy Committees
Unit, Group, etc.

Internal Audit Group41

Corporate Governanceas well as following up on such strategies, initiatives andplans and management resource allocation regarding AssetManagement Unit.
Group Markets Strategy Conference:
Discusses and coordinates matters concerning performance
evaluation, such as basic strategies, important individual
strategies and initiatives, business plans and revenue plans aswell as following up on such strategies, initiatives and plans
and management resource allocation regarding Markets Unit.

by them. Thus, all information on the status of the majorgroup companies' internal audits is held and controlled by
MHFG's Internal Audit Division.
The results of both MHFG's and the major group companies' internal audits are reported to the Internal Audit
Committee on a regular basis and at other times as necessary by the head of the Internal Audit Group who is the
director with responsibility for internal audits.
* Core group companies:
MHBK, MHTB, MHSC, TCSB, MHAM, DIAM, MHRI, MHIR, MHFS, MHPW

Three other committees have been established separatelyfrom the Business Policy Committees and group strategy
conferences to deal with specific issues. These committees
discuss, disseminate information and promote policies concerning operations under their jurisdiction as necessary.
Business Continuity Management Committee:
Discusses, disseminates information and promotes the“Basic Policy for Business Continuity Management.”
Human Rights Awareness and Promotion Committee:
Discusses, disseminates information and promotes policies
concerning human rights initiatives.
Committee to Encourage Employment of People with
Disabilities:
Discusses, disseminates information and promotes policies
concerning the employment of handicapped people andsecuring their role in the workplace.
Internal Audit Function and Others
The Internal Audit Committee fulfills an internal audit function under the President & Executive Officer. The committee
discusses and determines important matters concerninginternal audit on the basis of the basic policy determined by
the board and reports all decisions made by the committee
to the board.
To ensure independence of the internal audit function
from the audited sections, we separate the Internal Audit
Group from the groups which it audits and establish it as anindependent group in its own right under the control of theInternal Audit Committee.
External experts in their field (consisting at present of one
lawyer and one CPA) are also on the Internal Audit
Committee to strengthen the specialist nature and impartiality of the committee.
The internal audit infrastructure MHFG has established is
as follows: MHFG has set up an Internal Audit Division tocarry out internal audits based on the basic audit policies
and the internal audit regulations determined by the Boardof Directors. It also checks the internal control structure ofvarious companies on the basis of the reports it receives
from the major group companies of the results of internal
audits and problems and issues that have been investigated42

Reason for Adopting Current Corporate
Governance Structure
We have transformed into a Company with Committees inJune 2014 with the belief that, under the current legal system, a Company with Committees is the most effective as asystem to realize our fundamental perspectives regarding
our corporate governance system for the following reasons:(1) To allow executive officers to make swift and flexible
decisions on business execution and to implement business execution, and to allow the Board of Directors tofocus on determining matters such as basic management
policies and effectively supervising management.
(2) To secure to the fullest extent possible a checks and balances function that fully utilizes the viewpoints of outside
parties and objectively secure appropriateness and fairness
in decision-making through members of the Nominating
Committee, the Compensation Committee, and the Audit
Committee, which consist mainly of outside directors.
(3) To make possible the creation of systems that are necessary to realize the fundamental perspectives regarding thecorporate governance in a form that takes into accountwhat we aim to be and its challenges.
(4) To be in line with governance systems that are required
globally with a strong recognition that our group operates globally and is in a position in which it should play aleading role in the industry as a financial group that is a
Global Systemically Important Financial Institution (G–SIFI);
to continue constructing a strong governance system thatwill agilely respond to domestic and global structuralchanges and overcome a highly competitive environment;
and as a result, to allow us to fulfill its social role and mission, which is to realize continuous and stable corporate
growth and improved corporate value and shareholderinterests and contribute to domestic and global economic
and industrial development and prosperity of society, in
response to the demands of our stakeholders.

(As of June 24, 2014)

Profit Management System

Introduction of a Group-wide Matrix Profit
Management System
We aim to develop “integrated group strategies utilizingbanking, trust banking and securities functions that respondto diversified customer needs.” Centered on MHFG, we haveintroduced a groupwide profit management system corresponding to customer segments and product functions. Together
with the profit management of individual group companies,
we implement a matrix profit management system.
More specifically, based on the strategy of the group as awhole, MHFG determines strategies for each customer segment and product function, and individual group companies
determine plans that are based on these strategies. Throughthis process, we are implementing integrated group management focused around banking, trust and securities functions and, by allocating management resources efficiently,
we are seeking to maximize group corporate value.
From the perspectives of both the group-wide customer
segments and product functions, as well as the core groupcompanies, MHFG is making efforts to optimize its business

Customersegments

portfolio through the following:• formulating plans for gross profits, net business profitsand net income, and carrying out performance management and• allocating management resources such as investments andexpenses, personnel, risk capital and risk-weighted assets
Further, our core group companies establish their own
profit plans and manage the performance of their respective
company's divisions/departments within their businessgroup/units based on management policy, overall profit
plans and resource allocations drawn up according to theabove matrix profit management system. At the same time,to promote the efficient use of management resources, thegroup makes use of RORA and other indicators of efficiency
to manage its performance against management resources.
Glossary
RORA (Return on Risk Assets)
RORA is a measure of the profitability of risk-adjusted assets, and it is used as anindicator for assessing efficiency against asset volume, taking into account the volume of risk held.

Individuals

SMEs &
middle-market
corporations

Large
corporations

Financial
institutions &public-sector
entities

Overseas
corporations

Customerneeds

Customerneeds

Customerneeds

Customerneeds

Customerneeds

MizuhoStrategy for eachgroup company

Bank
Trust bankSecurities
company

Provide financial services across the group to satisfy the various needs of customers

OthersStrategy for each segment
MHFG: Group's overall strategy(As of June 24, 2014)43

Human Resources System

In order to realize the corporate philosophy within Mizuho's
Corporate Identity of creating lasting value for our customers
and the economies and communities of which we are a part,
it is important to create an organizational culture whereby
employees can relate to and take spontaneous action in linewith Mizuho's Corporate Identity. To create such an organizational culture, Mizuho is implementing human resources initiatives in line with its new Human Resources (HR) Vision.

HR Vision (established April 1, 2013)
Mizuho Financial Group firmly believes that the personal
development of individual employees contributes to thestable and sustainable growth of Mizuho as a whole.
Mizuho recognizes those employees who put theMizuho Values into practice, and helps employees tocreate a more fulfilling life through their work.
• Mizuho encourages employees to utilize their strengths,
and provides opportunities for them to use their skills
and to develop their abilities.
• Mizuho encourages employees who differ in terms ofgender, country of origin, cultural background, andvalues to understand, respect, and inspire each other.
• Mizuho works with its employees to create a corporate
culture that encourages people to be passionate about
and to take pride in their work.

New HR Vision(Bridge between employees
and Mizuho's Corporate Identity)

Ownership,
ActionUnderstanding

Employees

Mizuho's Corporate Identity

Enhancing Group-wide Synergy
With regard to employees, we aim to create personnel who
are capable of maximizing their expertise and speed of operations in line with the business models of each group company. To enhance the synergies between group personnel,
we have adopted a uniform compensation system (a groupwide common platform for all human resources) and areworking to further enhance the deployment of the rightpeople in the right jobs through cross-company personnel
transfers. Additionally, we also have special programs forseconding personnel and sending trainees to other companies within the group. As the only financial group in Japan
with banking, trust and securities functions under one
umbrella, we strategically implement these programs in a
flexible manner to develop, on a group-wide and global
basis, uniquely talented personnel capable of supporting thevarious business strategies throughout the group.
44

Supporting Cross-entity, Unity-focused Career Development
Education & Training
We have adopted various group-wide and unity-focusedmeasures under our education and training schemes toactively support employees in their personal career development efforts. One such measure offered to group employees
is a sophisticated education program under the name
Mizuho University, which draws on external resources. The
Mizuho University framework encompasses “action learning,” whereby participants spend around six months making
suggestions to top management on such topics as businessstrategies and marketing; short-term programs that allow
individual participants to select subjects such as business andinterpersonal skills; and programs inviting applications tostudy at graduate schools and educational institutions inJapan and overseas, or take up external assignments. We
also provide numerous opportunities to foster a sense ofunity among all entities of the group and to create the foundations of close collaboration between those entities byholding joint induction training for our banking, trust banking, and securities entities, as well as implementing theCareer Design Training program which encourages employees to plan cross-entity careers.
Rejuvenating the Organization and Pursuing Specialization
In January 2003, we launched an internal “job application system for branch general manager positions” to encourage thequick development and advancement of younger employees.
As of May 31, 2014, we have achieved a dynamic rejuvenation of the organization by selecting 106 younger and midcareer applicants and appointing them as branch generalmanagers. We have also newly launched the “job application
system for young manager positions” from July 2013, and 4
young employees have been selected as of May 31, 2014.
We also provide group-wide job application opportunities
each year to encourage employees to enhance their careers
and acquire greater specialization, and offer a “rookies'
career design program” for young employees as well as a job
fair to improve people's understanding of what other people
do within the group. These initiatives are all designed to give
employees more control over the direction of their careers.

••

Positive Action Initiatives
With the aims of invigorating our organization by proactively
recruiting women, and of improving the motivation of female
employees, we have formulated a group-wide fundamental
policy to increase the involvement of women in every aspectof our operations, and as such engage in positive action*.
* Initiatives that a company adopts proactively and autonomously in order to eliminate gender discrimination in recruitment and to promote the utilization of
women's capabilities to the fullest extent possible.
Note: Content appearing in this section describes the group's human resources system in Japan.

(As of June 24, 2014)

Internal Control Systems

Compliance Structure

Basic Compliance Policy
As the leading Japanese financial services group with a global presence and a broad customer base, we remain conscious of the importance of our social responsibilities andpublic mission at all times. We define compliance as “thestrict observance of all laws and regulations and the pursuitof fair and honest corporate activities that conform to thenorms accepted by society” and view ongoing complianceas one of the basic principles of sound business management. Each of our group companies maintains its own compliance structure in line with the basic policies established by
MHFG.
Compliance Structure
The chief executive officer of MHFG, MHBK, MHTB and
MHSC each generally oversees compliance matters of therespective company, and the chief executive officer, etc. alsohead their respective Compliance Committees at which
important matters concerning compliance are discussed. The
four companies also have individual compliance divisions
under a chief compliance officer. These divisions are responsible for compliance planning and implementation andcontrol overall compliance management at the respective

Compliance Structure

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

President & CEO(Group CEO)

Audit Committee

Executive Management
Committee

Management

Compliance Committee(Chairman: President & CEO)Group Chief Compliance Officer (Group CCO)
(Compliance Division)
Every organizational unit
Compliance Officer/
Compliance Administrator

Head of each unit

companies. At the level of each organizational unit (such as
branches and divisions) at the four companies, the head of
the unit is responsible for guidance and implementation
related to compliance matters within such unit, and thecompliance officer or the compliance administrator at each
unit reviews the status of compliance.
MHFG has established the Internal Controls and Audit
Hotline, a system designed for obtaining concerns regarding
questionable accounting or auditing matters from in andoutside the company.
Other core group companies have also established compliance structures adapted to the characteristics of theirrespective businesses.
MHFG monitors the status of compliance of the groupthrough reports submitted by our core group companies
and adopts appropriate responses when necessary.
Compliance at subsidiaries of our core group companies
is monitored and managed by their respective parent.
Compliance Activities
We have established the Mizuho Code of Conduct, whichsets forth clear and concrete standards of ethical behavior,and distributed it to all directors, senior management andemployees of the group so that they are well aware of its
content and act accordingly.
Each of our group companies has also prepared a compliance manual, which serves as a practical guidebook for rigorous compliance enforcement and clarifies the laws andregulations that the group companies must observe in pursuing their business activities and the compliance activities
they are required to follow.
We conduct compliance training for directors, senior
management and employees so that they are fully acquainted with the contents of the manual. We monitor the statusof compliance levels through self assessments conducted byindividual organizational units and monitoring conducted by
the compliance division of each company.
Every fiscal year, each of our group companies establishes
a compliance program, which contains concrete measuresfor compliance enforcement such as measures related to the
management of the compliance framework, training andassessments. Progress regarding the implementation of thecompliance program is monitored every six months.

MHBK, MHTB, MHSC andother core group companies

Subsidiaries of the above group companies

45

Internal Control Systems“Internal Controls and Audit Hotline”—A system designed for obtaining concerns regarding
questionable accounting or auditing matters—
Reporting Items:
MHFG has established a hotline to receive reports from inand outside the company in connection with problems
concerning internal controls and audits of accounts andfinancial reports.
Contact Point:
This hotline has been established within an external law
office. Please use conventional mail or e-mail for reporting.
Conventional mail:Tsukiji Mitsui Bldg., Tsukiji 4-7-1, Chuo-ku, Tokyo
104-0045
Mizuho Accounting Hotline, c/o Daiichi Fuyo Law OfficeE-mail : kaikei-mizuho@daiichifuyo.gr.jp• When reported matters are within the scope of thereporting items, MHFG will do reasonable efforts toinvestigate the facts behind the information received
and report back on the results.
• Anonymous tips are also acceptable, but there arecases where it will not be possible to fully satisfy theintentions behind such tips owing to constraints on
investigations and the inability to report back.
• Information on persons making such reports is not disclosed to third parties other than the group companies
except in cases where the assent of the person in question has been obtained or such disclosure is required
under laws and ordinances, etc.

(As of June 24, 2014)

Management of Customer Protection Structure

Basic Approach
We give first priority to our customers, and based on thepolicy that earning the trust of our customers is the basis for
ensuring sound management and earning the trust of otherstakeholders, we will continuously verify and improve theoperations of the group from the perspective of customers
in order to ensure adequacy of operations and improve customer convenience as well as compliance, and manage customer protection uniformly in the group.
Overview of Management of Customer Protection
We define management of customer protection as described
below, clarifying the group management structure as well as
management methods, and ensuring that each company
draws up customer protection management regulations.

Management of customer protection refers to the
management required for achieving the following
from the perspective of improving the protection of
our customers and improving customer convenience.
1. Ensuring the adequacy and sufficiency of the
explanation of transactions, products etc. as wellas the provision of information (explanation of
products etc.) to customers regarding transactions
and products.
2. Ensuring the adequacy and sufficiency of handlingcustomer consultations and complaints (customer
service).
3. Ensuring the adequacy of the management ofcustomer information (customer information
management).
4. Ensuring the adequacy of managing customers andcustomer information in the event that our operations are outsourced (management of outsourcing).
5. Ensuring the adequacy of the management of conflicts of interest refers to the management of themeasures to be taken in order to appropriately
address various situations of conflicts of interest
that have stemmed from transactions with customers (management of conflicts of interest).

In addition to designating the compliance division as thecustomer protection general management division, eachcompany establishes its own management structure by46

stipulating which divisions are in charge of management of
explanation of products etc., management of customer service, management of customer information, management ofoutsourcing, and management of conflicts of interest (hereinafter customer management tasks).
The President & CEO of MHFG generally oversees management of customer protection, and also heads the Customer
Protection Management Committee at which importantmatters concerning customer protection are discussed. The
President & CEO also appoints officers responsible for thegeneral management of customer protection in order topromote appropriate management of customer protection.
The Compliance Division is in charge of general management and monitor management of each customer management task. The division responsible for each customer management task draws up and implement proposals concerning the management tasks under their jurisdiction. MHFG
also provides centralized monitoring and management ofcustomer protection management at the core group companies. The core group companies also manage customer protection management at their own group companies.

Customer Protection Structure

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

President & CEO(Group CEO)

Audit Committee

Executive Management
Committee
Customer Protection Committee(Chairman: President & CEO)Management

Officers responsible for the general management ofcustomers protection (Compliance Division)
Divisions in charge ofmanagement ofcustomer protection
Explanation of products
etc. management
Customer service
management

Customer information
management
Outsourcing
management
Conflicts of interest
management

Approaches to the Financial Alternative Dispute
Resolution (ADR) System
In order to deal expeditiously, fairly and appropriately withcomplaints, etc., from customers, MHBK and MHTB haveconcluded the basic contract for the implementation of dispute resolution procedures with the Japanese Bankers
Association, which is a designated dispute resolution institution as defined in Japan's Banking Act. MHTB has also concluded the basic contract for the implementation of dispute
resolution procedures with the Trust Companies Associationof Japan, which is a designated dispute resolution institution as defined in Japan's Trust Business Act and Act on
Concurrent Operation, etc. of Trust Business by Financial
Institutions.
The designated dispute resolution institution takes thesteps towards resolution from a fair and neutral perspective
in cases where the solutions to customers' complaints adopted by the two banks are not accepted.
The Designated Dispute Resolution Institution as
Defined in Japan's Banking Act which MHBK and
MHTB Concluded the Basic Contract withThe Designated Dispute Resolution Institution:
the Japanese Bankers Association
Contact:
Advisory Center of the Japanese Bankers Association
Tel.: +81-(0)3-5252-3772

The Designated Dispute Resolution Institution as
Defined in Japan's Trust Business Act and Act on
Concurrent Operation, etc. of Trust Business by
Financial Institutions which MHTB Concluded the
Basic Contract withThe Designated Dispute Resolution Institution:
Trust Companies Association of Japan
Contact:
Trust Consultation Center of the Trust Companies
Association of Japan
Tel.: +81-(0)3-3241-7335(As of June 24, 2014)
MHBK, MHTB, MHSC andother core group companies

Subsidiaries of the above group companies

47

Internal Control Systems

Information Security Management System

Basic Approach
As the advanced information-telecommunication society
evolves and use of information increases exponentially,
appropriate protection of the informational assets held by acompany becomes a social responsibility, while appropriate
usage of the same assets becomes the foundation of thecompany's competitiveness. As a provider of comprehensive
financial services in Japan and abroad, we believe thatappropriate protection and use of informational resources
are extremely important issues.
We are striving to strengthen our information security
management system, defining information security management as all acts associated with the appropriate protection
and use of group informational assets. This includes adopting information security management measures to ensure
the confidentiality, integrity and availability of our informational assets, and responding to requests for disclosure from“data subjects” (the people to whom specific information
pertains) concerning personal information.

Information Security Management System

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

President & CEO(Group CEO)

Audit Committee

Executive Management
Committee

Management

Information Security
Management Committee
Group Chief Compliance Officer (Group CCO)
(Information Security Management Department,
Compliance Division)
Every organizational unit
Information Security
Officer

Overview of the Information Security Management
System
We have clarified the group management system as well as
management methods for information security management, and each company has drawn up its own regulations
concerning information security management. We are alsobuilding an information security management system, stipulating that the compliance divisions of the individual companies are to act as information security management divisions.
The President & CEO of MHFG appoints a chief information security officer who supervises planning, proposals andimplementation in connection with overall group information security management, and the Information Security
Management Committee handles discussions and coordination of cross-divisional issues relating to overall group information security management. In addition, the Information
Security Management Department has been establishedwithin the Compliance Division to specialize in information
security management and provide centralized monitoring
and control of the information security management situation at our core group companies. The information security
management situation at subsidiaries of our core groupcompanies is monitored and managed by our core groupcompanies themselves. In every organizational unit, thehead of each unit is also responsible for information security
management, and an information security management
officer is appointed to check on how information is handled
and ensure that personnel are fully aware of and welltrained in safety management measures.
Based on this information security management system, we have drawn up and published the Privacy Policy
Regarding Customer Information* that complies with Japan's
Law Concerning the Protection of Personal Information. We
are also building a system to deal with requests for disclosure, and strengthening our safety management measures.
* The Privacy Policy Regarding Customer Information includes the policy and procedures for management of customer information. Our group companies have eachestablished privacy policies regarding customer information, which are publishedon their individual websites, in this annual review, and via other disclosure tools.

Head of each unit

(As of June 24, 2014)

MHBK, MHTB, MHSC andother core group companies

Subsidiaries of the above group companies

48

Strengthening Disclosure Controls and Procedures

Basic Principles
We are committed to growing together with our customers
in a stable and sustainable manner and bringing together
our group-wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading Japanese financial services group with a global presence
and a broad customer base. For this reason, we place one of
the highest management priorities on continuing to disclose
information to our customers, shareholders, and investors
both in and outside Japan in a fair, timely and appropriatemanner, in order that they may form proper judgments andappraisals of the group. To achieve this aim, we observe
applicable domestic and international laws and regulations
as well as stock exchange rules relating to corporate disclosure, and we establish and implement appropriate Disclosure
Controls and Procedures.
Outline of Disclosure Controls and Procedures
Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are established toobserve applicable domestic and international laws and•Disclosure Controls and Procedures System

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

President & CEO(Group CEO)

Audit Committee

Executive Management
Committee

Management

Disclosure Committee

regulations as well as stock exchange rules and to implement fair, timely and appropriate corporate disclosure. The
Disclosure Controls and Procedures are the process carriedout by directors, officers and employees of our group andinclude internal controls designed to provide reasonableassurance regarding the reliability of Financial Reporting and
the Preparation of Financial Statements. We have established the basic principles underlying our Disclosure Controls
and Procedures as well as our internal rules related toDisclosure Controls and Procedures that govern the management framework for the entire group including group companies, and we endeavor to establish, implement and continuously improve our Disclosure Controls and Procedures.
Our Disclosure Committee is the principal management
body that is responsible for discussing and exploring mattersrelating to Disclosure Controls and Procedures.
Evaluation of Effectiveness of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our Disclosure
Controls and Procedures is conducted regularly by reviewing
the contents of such documentation and their implementation. In addition, evaluation of the effectiveness and appropriateness of Disclosure Controls and Procedures is conducted through internal audits.
Others
We established a Code of Ethics for Financial Professionals
to be observed by all directors and executive officers, as well
as all managers and other employees within our group who
engage in financial reporting, accounting or disclosure. We
have also developed the Internal Controls and Audit Hotline,a system designed for obtaining concerns regarding questionable accounting or auditing matters from both insideand outside the group (please refer to page 46).
Moreover, we established Disclosure Policy which
includes basic principles regarding disclosure and frameworkof Disclosure Controls and Procedures, and announce on our
website as well as this annual review.

••Group Chief Financial Officer (Group CFO)(in charge of Disclosure Controls and Procedures)and Other Heads of Groups and Units
Every organizational unit
Disclosure Control
Head of each unit
Officer(As of June 24, 2014)

MHBK, MHTB, MHSC andother core group companies

Subsidiaries of the above group companies

49Internal Control Systems

Risk Management Structure

effectiveness and suitability of the risk management structure. In line with these basic policies, we maintain various
measures to strengthen and enhance the sophistication of
our risk management system.

Commitment to Risk Management
Basic Approach
Progress in financial deregulation and internationalization
has led to growth in the diversity and complexity of banking
operations, exposing financial institutions to various risks,
including credit, market operations, information technology,
legal, settlement and other risks. We recognize the conducting of operations tailored to the risks and managing suchrisks as a key issue relating to overall management. In orderto implement our business strategy while maintaining ourfinancial stability, we maintain comprehensive risk management and control measures. MHFG maintains basic policies
for risk management established by its board of directorsthat are applicable to the entire group. These policies clearly
define the kinds of risks to be managed, set forth the organizational structure and provide for the human resources
training necessary for appropriate levels of risk management. The policies also provide for audits to measure theApproach to the Basel Regulatory Framework
The Basel Regulatory Framework, the regulations forinternational standards of the health of banks, havebeen revised in light of developments in risk management methods in order to better reflect the actual substance of the risks. We have been calculating capital
adequacy ratios based on these regulations, known as
Basel II, from March 31, 2007, when it was implemented
in Japan. Basel II requires the observance of three main
points. The first is minimum capital requirements relating
to risk which should be maintained by banks. The second includes a supervisory review process with respect
to assessment of risks that cannot be fully addressed
through minimum capital requirements alone. The thirdis market discipline allowing for assessment by the market through appropriate disclosure. We have been calculating our capital adequacy ratios by applying theAdvanced Internal Ratings-Based Approach for the calculation of credit risk from March 31, 2009, and theAdvanced Measurement Approach for the calculation ofoperational risk from September 30, 2009. Due to thestrengthening of the Basel II framework, we revised thecalculation methods with regard to our securitization
products and trading activities from December 31, 2011,
when such strengthening was implemented in Japan. In

50

Risk Management Structure
Each of our subsidiaries adopts appropriate risk management measures for its business based on the size and natureof its risk exposures, while MHFG controls risk management
for the group as a whole. MHFG regularly receives reports
and applications concerning the risk management situationfrom our core group companies and gives them appropriate
instructions concerning risk management. Our core groupcompanies each maintains its own system for managing various types of risk, regularly receiving reports on the status ofrisk at their respective subsidiaries, and gives them appropriate instructions concerning risk management.

General Concept of Risk Management
Basic Approach
We classify our risk exposures according to the various kindsof risk, including credit risk, market risk, liquidity risk andDecember 2010, the Basel III rules text was issued, pursuant to which the raising of capital requirement levels
and the quality of capital were required and risk coverage was enhanced. In Japan, from March 31, 2013, the
new minimum capital requirements began to be phased
in, and we have been calculating capital adequacy ratios
based on the revisions to capital adequacy guidelines
published by the Financial Services Agency.
We have been identified as a G-SIB by the Financial
Stability Board in November 2013. In case we are to be
identified as a G-SIB in or after November 2014, thestricter capital requirements will be applied. Based on
the Basel III framework, liquidity and leverage ratio regulation is scheduled to be implemented in the future. We
are currently preparing for such implementation.
Glossary
Advanced Internal Ratings Based (AIRB) Approach
AIRB is one of the calculation methods for credit risk assets provided for by
Basel II. Under AIRB, both probability of default and loss given default used
for calculation of credit risk assets are estimated by the bank's own internal
experiences.

Advanced Measurement Approaches (AMA)
AMA is one of the calculation methods for operational risk assets provided forby Basel II. AMA is a risk asset calculation method based on statistics that not
only utilizes data from internal losses experienced by the company, but alsoutilizes scenario data to calculate the impact of events that may be experienced
in the future.

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

MHFG
Report therisk management situation.

Give instructions
concerning
risk management.

Core group companies
MHBK
MHTB
MHSC
, etc.

operational risk, and manage each type of risk according to
its characteristics. In addition to managing each type of risk
individually, we have established a risk management structure to identify and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that are managerially acceptable in both qualitative andquantitative terms. In line with the basic policies relating tooverall risk management laid down by MHFG, companies
within the group identify risk broadly and take a proactive
and sophisticated approach to risk management, including
methodologies for operations that involve exposures to multiple categories of risk such as settlement and trust businesses.
Risk Capital Allocation
We endeavor to obtain a clear grasp of the group's overallrisk exposure and have implemented measures to keep suchrisks within the group's financial base in accordance with

Subsidiaries
managed by thecore groupcompanies

Report the risk
management situation.

the risk capital allocation framework. More specifically, we
allocate risk capital to our core group companies, including
their respective subsidiaries, to control risk within the limits
set for each company. We also control risk within managerially acceptable limits by working to ensure that the overallrisk we hold on a consolidated basis does not exceed shareholders' equity and other measures of financial strength. To
ensure the ongoing financial health of MHFG and our coregroup companies, we regularly monitor the manner inwhich risk capital is being used in order to obtain a proper
grasp of the risk profile within this framework. Reports arealso submitted to the board of directors and other committees of each company. Risk capital is allocated to MHBK,MHTB and MHSC by risk category, and is further allocatedwithin their respective business units based on establishedframeworks.

Allocation of Risk Capital(Example)
MHFG
The group's risk
exposure
MHBKCore groupcompanies'
risk exposure*
Capital, etc.

MHTB
MHSC

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

Allocated risk capital

The group's financial
strength

MHBK

Credit risk
Market risk

Allocation toeach business unit

Equity risk
Operational riskGroupcompanies, etc.

MHTB
Other risk exposure

MHSC* Including risk exposures of the subsidiaries of the core group companies.

51

Internal Control Systems

Stress Testing
We conduct stress testing based on several scenarios, suchas economic recession and turmoil in financial markets. We
have built a framework in which we use the results of stresstesting for making business decisions such as, among otherthings, the identification of issues for purposes of the managing our business-planning. Our stress testing scenarios areformulated through discussions regarding historical stressevents, underlying macroeconomic events and economic
outlook, taking into account the probability of the event andits impact on us. We estimate the impact on us by setting
parameters such as economic output, stock market andinterest rate levels for each scenario.

Credit Risk Management

Companies
Our core group companies manage their credit risk according to the scale and nature of their exposures in line withbasic policies set forth by MHFG. The board of directors ofeach company determines key matters pertaining to credit
risk management.
The respective business policy committees of MHBK and
MHTB (the two banks) are responsible for discussing andcoordinating overall management of their individual credit
portfolios and transaction policies towards obligors. The
chief risk officer of each bank is responsible for mattersrelating to planning and implementing credit risk management. The credit risk management division of each bank is
responsible for planning and administering credit risk management and conducting credit risk measuring and monitoring, and such division regularly presents reports regarding its
risk management situation to MHFG. Each credit division

Credit Risk Management Structure

MHFG
Corporate Auditors,
Board of Directors
Management

Basic Approach
We define credit risk as the group's exposure to the risk oflosses that may be incurred due to a decline in, or total lossof, the value of assets (including off-balance-sheet instruments), as a result of deterioration in obligors' financial position. We have established the methods and structures necessary for grasping and managing credit risk, which has
become increasingly complex due to financial deregulation,internationalization and the growing sophistication of transactions. MHFG manages credit risk for the group as a whole.
More specifically, we have adopted two different but mutually complementary approaches in credit risk management.
The first approach is “credit management,” in which we
manage the process for each individual transaction and individual obligor from execution until collection, based on ourassessment of the credit quality of the customer. Throughthis process, we curb losses in the case of a credit event. The
second is “credit portfolio management,” in which we utilize statistical methods to assess the potential for losses
related to credit risk. Through this process, we identify credit
risks and respond appropriately.

• Credit Risk Management at Our Core Group

Board of Directors

President & CEO(Group CEO)Group Chief Risk Officer(Group CRO)

Audit Committee

Executive Management
Committee
Portfolio Management
Committee

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

Core group companies

Credit Risk Management Structure
Credit Risk Management of MHFG
Our board of directors determines the group's key matterspertaining to credit risk management. In addition, the portfolio management committee of MHFG discusses and coordinates the basic policies in connection with credit risk management and matters in connection with overall credit portfolio
management and credit risk monitoring for the group. Under
the control of the Chief Risk Officer of MHFG, the Risk
Management Division and the Credit Risk Management
Division jointly monitor, analyze and submit suggestions concerning credit risk and formulate and execute plans in connection with basic matters pertaining to credit risk management.

•

52

MHBK

MHTB

MHSC

Other coregroup
companies

The Two Banks
Board of Directors
Chief Executive Officer (CEO)Executive Management
Committee

Chief Risk Management
Officer (CRO)Business Policy Committees

Divisions responsible for credit risk management(Risk Management Division,
Credit Risk Management Division)determines policies and approves/disapproves individualtransactions in terms of credit review, credit management
and collection from customers in accordance with the lines
of authority set forth by each bank. In addition, each bankhas established internal audit divisions that are independentof the business divisions in order to ensure appropriate credit
risk management.
Individual Credit Management
Credit Codes
The basic code of conduct for all of our officers and employees engaged in the credit business is set forth in our credit
code. Seeking to fulfill the bank's public and social role, ourbasic policy for credit business is determined in light of fundamental principles focusing on public welfare, safety,
growth and profitability.
Internal Rating System
One of the most important elements of the risk management infrastructure of the two banks is the use of an internal••rating system that consists of credit ratings and pool allocations. Credit ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction
ratings which represent the possibility of ultimately incurring losses related to each individual claim by taking into
consideration the nature of any collateral or guarantee andthe seniority of the claim. In principle, obligor ratings apply
to all obligors and are subject to regular reviews at least
once a year to reflect promptly the fiscal period end financial
results of the obligors, as well as special reviews as required
whenever the obligor's credit standing changes. This enables
the two banks to monitor both individual obligors and thestatus of the overall portfolio in a timely fashion. Because
we consider obligor ratings to be an initial phase of the selfassessment process regarding the quality of our loans andoff-balance-sheet instruments, such obligor ratings areclosely linked to the obligor classifications and are an integral part of the process for determining the reserves forloan losses and write-offs in our self-assessment of loans andConnection between Obligor Ratings, Definition of Obligor Classifications of Self-Assessments,
Claims Disclosed under the FRL and Non-Accrual, Past Due & Restructured Loans
Definition of
ObligorObligor Classifi- Ratings
cations of Self(Major
Assessment
Category)
A1–A3

B1–B2
NormalObligors
C1–C3

D1–D3
E1
Watch
Obligors

Intensive
Control
Obligors

E2 R

F1

Definition of Ratings

Category I(NonCategorized)

Category II

Category III

Category IV(NonCollateralized)

ClaimsDisclosed
under theFRL

Non-Accrual,
Past Due &Restructured
Loans

Obligors whose certainty of debt fulfillment
is very high, hence their level of credit risk is
excellent.
Obligors whose certainty of debt fulfillment poses
no problems for the foreseeable future, hence
All credit given
their level of credit risk is sufficient.
to Normal
Obligors whose certainty of debt fulfillment Obligors.
and their level of credit risk pose no problems for the foreseeable future.

NormalClaimsObligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future environmental changes is low.
Obligors who require close watching going
forward because there are problems with
their borrowings, such as reduced or suspended interest payments, problems withfulfillment such as de facto postponements
of principal or interest payments, or problems with their financial positions as aresult of their poor or unstable businessconditions.
Obligors who are not yet bankrupt but arein financial difficulties and are deemed to bevery likely to go bankrupt in the future
because they are finding it difficult to makeprogress in implementing their management
improvement plans (including obligors who
are receiving ongoing support from financial
institutions).

Substantially
Bankrupt
Obligors

G1

Obligors who have not yet gone legally orformally bankrupt but who are substantiallybankrupt because they are in serious financial difficulties and are not deemed to becapable of restructuring.

Bankrupt
Obligors

H1

Obligors who have already gone bankrupt,
from both a legal and/or formal perspective.

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

Credit to
obligors whichhas pledged
collateral or iscovered byguarantees,considered ofhigh quality,
such as deposit
collateral.

Claims forSpecialAttention

Credit given to
Intensive Control Obligors
other than thoseincluded in Category I and Category II.
Credit to obligors which is covered by generalcollateral, suchas real estateand guarantees.

The difference
between theassessed value andmarket value of collateral on credit toBankrupt and Substantially Bankrupt
Obligors (i.e., theportion of loans forwhich final collection
problems or losses
are anticipated).

Restructured
Loans
Loans Past Duefor 3 Months
or MoreClaims with
Collection
Risk
Non-Accrual
Delinquent
Loans
Credit to Bankrupt and Substantially Bankrupt
Obligors, otherthan those in Category I, Category
II and Category III(credit that isjudged to be
unrecoverable orwithout value).

Claimsagainst Bankrupt and Substantially
Bankrupt
Obligors, and Loans toBankrupt
equivalent
Obligors

53

Internal Control Systems

off-balance-sheet instruments (Please refer to Connection
between Obligor Ratings, Definition of Obligor Classificationsof Self-Assessments, Claims Disclosed under the FRL and
Non-Accrual, Past Due & Restructured Loans).
Pool allocations are applied to small claims that are lessthan a specified amount by pooling customers and claims
with similar risk characteristics and assessing and managing
the risk for each such pool. We efficiently manage credit risk
and credit screening by dispersing a sufficient number ofsmall claims within each pool. We generally review theappropriateness and effectiveness of our approach to obligor ratings and pool allocations once a year in accordancewith predetermined procedures.
Self-assessment, Reserves, Off-balance-sheet
Instruments and Write-offs
We conduct self-assessment of assets to ascertain the statusof assets both as an integral part of credit risk management
and in preparation for appropriate accounting treatment,
including reserves for loan losses and off-balance-sheet
instruments and write-offs. During the process of selfassessment, obligors are categorized into certain groups taking into consideration their financial condition and their ability to make payments, and credit ratings are assigned to all
obligors, in principle, to reflect the extent of their credit
risks. The related assets are then categorized into certainclasses based on the risk of impairment. This process allows
us to identify and control the actual quality of assets anddetermine the appropriate accounting treatment, including
reserves for loan losses and off-balance-sheet instruments
and write-offs. Specifically, the credit risk management division of each bank is responsible for the overall control of theself-assessment of assets of the respective banks, cooperating with the administrative divisions specified for each typeof asset, including loan portfolios and securities, in executing and managing self-assessments.
Credit Review
Prevention of new non-performing loans through routine
credit management is important in maintaining the quality••of our overall loan assets. Credit review involves analysis andscreening of each potential transaction within the relevantbusiness division. In case the screening exceeds the authorityof the division, the credit division at headquarters carries
out the review. The credit division has specialist departments for different industries, business sizes and regions,carries out timely and specialized examinations based on thecharacteristics of the customer and its market, and provides
appropriate advice to the business division. In addition, inthe case of obligors with low obligor ratings and high downside risks, the business division and credit division jointly clarify their credit policy and in appropriate cases assist obligors
at an early stage in working towards credit soundness.
Collection and Disposal of Non-performing Loans
With respect to collection and disposal of non-performing
loans, our specialist unit maintains central control and pursues corporate restructuring or collection efforts, as appropriate, toward taking the non-performing loans off-balance.
Specifically, we believe that supporting the restructuring
efforts of corporations is an important role for financial institutions, and we support corporations undergoing restructuring by reviewing business plans, advising on restructuringmethods and utilizing corporate restructuring schemes suchas divestitures and mergers and acquisitions, taking advantage of our group-wide resources. These efforts have beensteadily producing satisfactory results. In addition, we workon final disposal of non-performing loans efficiently andswiftly by conducting bulk sales and by utilizing Mizuho
Servicing, our subsidiary that specializes in performing debt
collection services for our group companies.
In the case of debt forgiveness, we examine the borrower's condition carefully and make a determination based on
the possible impact on the interests of shareholders anddepositors. We provide debt forgiveness as per industry
guidelines that are shared among members of the Japanese
Bankers Association.

•

Method for Reserves and Write-Offs
Normal Obligors

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

Watch Obligors

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

Intensive Control
Obligors

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

Substantially Bankrupt
Obligors
Bankrupt Obligors

54

Provide the entire balance after deducting amounts anticipated to be recoverable from the sale of collateral held against the claims and from guarantors of the claims for Specific Reserve for Possible Losses on Loans, or write-off the entire balance.

Portfolio Management
Risk Measurement
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a one-yearrisk horizon (Expected Loss) and the maximum loss within acertain confidence interval (“credit Value-at-Risk (VaR)”).
The difference between expected loss and credit VaR ismeasured as the credit risk amount (Unexpected Loss).
In establishing transaction spread guidelines for credit
transactions, we aim to ensure an appropriate return fromthe transaction in light of the level of risk by utilizing credit
cost data as a reference. Also, we monitor our credit portfolio from various perspectives and set guidelines noted below
so that losses incurred through a hypothetical realization of
the full credit VaR would be within the amount of risk capital and loan loss reserves.

•

Loss Distribution
Frequency
Average

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

Loss AmountCredit VaR
Expected
Loss

Unexpected Loss•

Risk Control Methods
We recognize two types of risk arising from allowing unexpected loss to become too large. One type is “credit concentration risk,” which stems from granting excessive credit tocertain individual counterparties or corporate groups. The
other type is “chain-reaction default risk,” which arises from

granting excessive credit to certain areas, industrial sectors
and other groupings. We make appropriate management tocontrol these risks in line with our specific guidelines foreach. The individual risk management divisions of the twobanks are responsible for monitoring adherence to theseguidelines and reporting to their respective business policy
committees (please refer to Allocation of Risk Capital andControl of Credit Risk).

Market and Liquidity Risk Management
Basic Approach
We define market risk as the risk of losses incurred by thegroup due to fluctuations in interest rates, stock prices andforeign exchange rates. Our definition includes the risk oflosses incurred when it becomes impossible to executetransactions in the market because of market confusion orlosses arising from transactions at prices that are significantly less favorable than usual. We define liquidity risk as therisk of losses arising from funding difficulties due to a deterioration in our financial position that makes it difficult for us
to raise necessary funds or that forces us to raise funds atsignificantly higher interest rates than usual. MHFG manages
market and liquidity risk for the group as a whole.
Market Risk Management StructureMarket Risk Management of MHFG
Our board of directors determines key matters pertaining tomarket risk management policies. The ALM & market risk
management committee of MHFG broadly discusses andcoordinates matters relating to basic asset and liability management policies, risk planning and market risk management and proposes responses to emergencies such as sudden market changes. The chief risk officer of MHFG is
responsible for matters relating to market risk management
planning and operations.
The Risk Management Division of MHFG is responsible formonitoring market risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing•

Allocation of Risk Capital and Control of Credit Risk
Credit VaR

Allocation of risk capital
Credit concentration risk
1 Individual company credit guidelines
2 Corporate group-based credit guidelines

MHBK: Sets 1 , 2 , 3 , 4
MHTB: Sets 1 , 2 , 4Chain reaction default risk
3 Geographical area/country-based

Control

Equivalent to credit concentration risk amounts

credit guidelines
4 Industrial sector-based credit guidelines

Equivalent to chain reaction default risk amounts

55Internal Control Systems

plans relating to market risk management. The Risk
Management Division assesses and manages the overall market risk of the group. It also receives reports from our coregroup companies on their market risk management thatenable it to obtain a solid grasp of the risk situation, submitting reports to the President & CEO on a daily basis and to
our board of directors and the executive management committee of MHFG on a regular basis.
To manage market risk, we set limits that correspond torisk capital allocations according to the risk profiles of ourcore group companies and thereby prevent market risk fromexceeding our ability to withstand losses based on our financial strength represented by capital, etc. The amount of risk
capital allocated to market risk corresponds to VaR andadditional costs that may arise in order to close relevant
positions. For trading and banking activities, we set limits for
VaR and for losses. For banking activities, we set position

Market and Liquidity Risk Management Structure

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

Management

President & CEO(Group CEO)Group Chief Risk Officer(Group CRO)

Audit Committee

Executive Management
Committee
ALM & Market Risk
Management Committee

Risk Management Division•Set risk management policies•Approve limits•Give instructions concerning
risk management•Report the risk
management situation•Apply for limits

Core group companies
MHBK

MHTB

MHSC

Other coregroup
companies

Core group companies
Board of Directors
Chief Executive Officer (CEO)Executive Management
Committee

Senior executive officers
responsible for risk management

ALM & Market Risk
Management Committee

Risk Management Division

Middle Offices

Offices
Front Offices

56

limits based on interest rate sensitivity as needed.
These limits are discussed and coordinated by the ALM &market risk management committee, discussed further by
the executive management committee, then determined by
the President & CEO. Various factors are taken into accountincluding business strategies, historical limit usage ratios,
risk-bearing capacity (profits, total capital and risk management systems), profit targets and the market liquidity of the
products involved.
Market Risk Management at Our Core Group
Companies
MHBK, MHTB and MHSC, which account for most of thegroup's exposure to market risk, have formulated their basic
policies in line with the basic policies determined by MHFG.
Their boards of directors determine important matters relating to market risk management while their chief executive
officers are responsible for controlling market risk. Theirrespective business policy committees, including their ALM &market risk management committees, are responsible foroverall discussion and coordination of market risk management. Specifically, these committees discuss and coordinate
matters relating to basic asset and liability management policies, risk planning and market risk management and propose responses to emergencies such as sudden market
changes. The chief risk officer of each subsidiary is responsible for matters pertaining to planning and implementing
market risk management. Based on a common group risk
capital allocation framework, the above-mentioned companies manage market risk by setting limits according to therisk capital allocated to market risk by MHFG.
These companies have established specialized companywide market risk management divisions to provide integrated monitoring of market risk, submit reports, analyses andproposals, set limits and formulate and implement plans
relating to market risk management. The risk management
divisions of each company submit reports on the status ofmarket risk management to their respective chief executive
officers and top management on a daily basis, and to theirboard of directors and executive management committee ona regular basis. They also provide regular reports to MHFG.
To provide a system of mutual checks and balances in market operations, they have established middle offices specializing in risk management that are independent of their front
offices, which engage in market transactions, and their backoffices, which are responsible for book entries and settlements. When VaR is not adequate to control risk, the middle
offices manage risk using additional risk indices, carry out
stress tests and set stop loss limits as needed. They monitor
their market liquidity risk for individual financial products inthe market while taking turnover and other factors into
consideration.

•Liquidity Risk Management Structure
Liquidity Risk Management of MHFG
Our liquidity risk management structure is generally thesame as the market risk management structure describedabove. However, the head of the Financial Control &Accounting Group of MHFG is additionally responsible formatters relating to planning and running cash flow management operations, while the Financial Planning Division is
responsible for monitoring and adjusting the cash flow
management situation and for planning and implementing
cash flow management. Reports on the cash flow situation
are submitted to the ALM & market risk management committee, the executive management committee and thePresident & CEO.
We measure liquidity risk using indices pertaining to cash
flow, such as limits on funds raised in the market. Limits on
liquidity risk are discussed and coordinated by the ALM &market risk management committee, discussed further by
the executive management committee and determined by
the President & CEO. We have established classifications forthe cash flow conditions affecting the group, ranging from
“normal” to “cause for concern” and “critical,” and haveestablished procedures for dealing with cases which are
deemed to fall into the “cause for concern” or “critical” categories. In addition, we have established a plan of operations so that we may respond swiftly in emergency situations that affect our cash flow under which we will consider
measures such as a reduction in the amount of investments
made, an expansion of funding from financial markets anddeposits, the sale of investment securities and borrowings
from the central bank.
Liquidity Risk Management at Our Core Group
Companies
The liquidity risk management structures of MHBK, MHTB
and MHSC are generally the same as the aforementioned
market risk management structures, but the senior executives responsible for risk management are responsible formatters pertaining to planning and conducting liquidity risk
management, while the senior executives of the asset andliability management and trading units are responsible formatters pertaining to planning and conducting cash flow
management.
The methodologies used for ensuring precise control ofliquidity risk include the formulation of management indicespertaining to cash flow, such as limits on funds raised in themarket. As with MHFG, the above-mentioned companies
have established classifications for the cash flow affecting
them, ranging from “normal” to “cause for concern” and“critical,” and have established procedures for cases which
are deemed to fall into the “cause for concern” or “critical”
categories.

•

Each subsidiary has adopted stringent controls that callfor the submission of reports on liquidity risk management
and cash flow management to the ALM & market risk management committee and other business policy committees,
the executive management committee and the chief executive officer of each subsidiary.
Status of MHFG's Market Risk
Value-at Risk
We use the VaR method, supplemented with stress testing,as our principal tool to measure market risk. The VaR
method measures the maximum possible loss that could beincurred due to market movements within a certain time
period (or holding period) and degree of probability (or confidence interval).
Trading Activities
VaR related to our trading activities is based on the following:• variance co-variance model for linear risk and MonteCarlo simulation for non-linear risk, which are simply
aggregated to determine total risk;• confidence interval: one-tailed 99.0%;• holding period of one day; and• historical observation period of one year.
The following tables show the VaR related to our trading
activities by risk category for the fiscal years ended March
31, 2012, 2013 and 2014 and as of March 31, 2012, 2013
and 2014:•

VaR by Risk Category (Trading Activities)(billions of yen)
Fiscal 2011•

Interest rate
Foreign exchange
Equities
Commodities
Total

Daily average

Maximum

1.9
1.9
1.1
0.0
3.8

2.4
2.8
1.7
0.1
4.8

Daily average

Maximum

1.6
2.3
0.5
0.0
3.4

2.2
3.4
0.9
0.0
4.6

Daily average

Maximum

2.0
4.1
1.0
0.0
5.7

2.7
5.6
3.1
0.0
7.4

Minimum At March 31

1.4
0.7
0.5
0.0
2.8

1.8
1.8
0.5
0.0
3.0

Fiscal 2012
Interest rate
Foreign exchange
Equities
Commodities
Total

Minimum At March 31

1.1
1.1
0.1
0.0
2.6

1.2
2.7
0.4
0.0
3.5

Fiscal 2013
Interest rate
Foreign exchange
Equities
Commodities
Total

Minimum At March 31

1.5
1.1
0.2
0.0
3.3

1.6
4.8
0.4
0.0
5.4

57

Internal Control Systems

The following graph shows VaR figures of our trading
activities for the fiscal year ended March 31, 2014:

The following table shows the VaR figures relating to ourbanking activities for the fiscal years indicated:

Fiscal 2013 VaR (Trading Activities)

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

8

Fiscal 2011 Fiscal 2012 Fiscal 2013 Change

76

As of fiscal year end

263.7

215.9

281.7

Maximum

282.5

297.9

300.7

2.7

Minimum

210.3

213.3

186.8

(26.5)

Average

249.4

246.3

253.5

7.1

5
4
3

65.8

2

0

04/01/2013
04/15/2013
04/29/2013
05/13/2013
05/27/2013
06/10/2013
06/24/2013
07/08/2013
07/22/2013
08/05/2013
08/19/2013
09/02/2013
09/16/2013
09/30/2013
10/14/2013
10/28/2013
11/11/2013
11/25/2013
12/09/2013
12/23/2013
01/06/2014
01/20/2014
02/03/2014
02/17/2014
03/03/2014
03/17/2014
03/31/2014

1

The following table shows VaR figures of our trading
activities for the fiscal years indicated:

VaR (Trading Activities)(billions of yen, except number of cases)
Fiscal 2011 Fiscal 2012 Fiscal 2013 Change
As of fiscal year end

3.0

3.5

5.4

1.8

Maximum

4.8

4.6

7.4

2.8

Minimum

2.8

2.6

3.3

0.6

Average

3.8

3.4

5.7

2.3

2

4

1

(3)

The number of cases where
profits/losses exceeded VaR

Non-Trading Activities
The VaR related to our banking activities is based on thesame conditions as those of trading activities, but the holding period is one month.
The graph below shows the VaR related to our banking
activities excluding our strategically-held equity portfolio forthe year ended March 31, 2014.

Characteristics of VaR Model
VaR is a commonly used market risk management technique.
However, VaR models have the following shortcomings:• By its nature as a statistical approach, VaR estimates
possible losses over a certain period at a particular confidence level using past market movement data. Past market movement, however, is not necessarily a good indicator of future events, particularly potential future events
that are extreme in nature.
• VaR may underestimate the probability of extreme market movements.
• The use of a 99.0% confidence level does not take accountof, nor makes any statement about, any losses that mightoccur beyond this confidence level.
• VaR does not capture all complex effects of various risk
factors on the value of positions and portfolios and could
underestimate potential losses.
Interest Sensitivity Analysis
We also conduct interest sensitivity analyses of interest risk,
our main source of market risk. The following table shows
sensitivity to yen interest risk in our banking activities as ofthe dates indicated. Interest rate sensitivity (10 BPV) shows
how much net present value varies when interest rates riseby 10 basis (0.1%), and it explains the impact of interest
rate movements on net present value when short- and longterm interest rates behave differently.

•

Fiscal 2013 VaR (Banking Activities)(VaR: billions of yen)

(%)

350

0.7

300

0.6

At March 31, (billions of yen)
2012

2013

2014

ChangeUp to one year

(10)

(7)

(2)

4

250

0.5

200

0.4

From one to five years

(54)

(56)

(47)

9

150

0.3

Over five years

(24)

(35)

(12)

22

100

0.2

Total

(89)

(99)

(62)

36

50

0.1

VaR

Interest rate on five-year government bonds

0.0

04/01/2013
04/15/2013
04/29/2013
05/13/2013
05/27/2013
06/10/2013
06/24/2013
07/08/2013
07/22/2013
08/05/2013
08/19/2013
09/02/2013
09/16/2013
09/30/2013
10/14/2013
10/28/2013
11/11/2013
11/25/2013
12/09/2013
12/23/2013
01/06/2014
01/20/2014
02/03/2014
02/17/2014
03/03/2014
03/17/2014
03/31/2014

058

Interest Sensitivity by Maturity•Stressed Value-at-Risk
The stressed value-at-risk (“stressed VaR”) measurement isbased on a continuous 12-month period of significant financial stress. Stressed VaR related to our trading activities isbased on the following:• variance co-variance model for linear risk and MonteCarlo simulation for non-linear risk, which are simply
aggregated to determine total risk;• confidence interval: one-tailed 99.0%;• holding period of one day; and• historical observation period of one year of significant
financial stress.
The following table shows stressed VaR figures of our
trading activities for the fiscal years indicated:make adjustments to the models as appropriate. Changes tofundamental portions of the VaR models are subject to theapproval of our chief risk officer.

Fiscal 2013 Back Testing
Assumptive profit or loss (billions of yen)
8
7
6
5
4
3
2
1
0
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

0

1

2

3

4

5

6

7

8

VaR (billions of yen)Stressed VaR (Trading Activities)

Note: We conduct our back testing and assess the number of cases
where profits/losses exceed VaR based on a 250 business day
year. The expected average number of instances where one-day
trading profits and losses exceeded VaR at the 99% confidence
level is five.

(billions of yen)
Fiscal 2011 Fiscal 2012 Fiscal 2013 Change
As of fiscal year end

6.8

9.2

12.6

3.4

Maximum

10.5

12.0

15.3

3.3

Minimum

5.0

5.0

8.3

3.2

Average

7.4

8.0

11.6

3.6

Note: Maximum, minimum and average figures of 2012 in the abovetable have been calculated for the period from October 1, 2011
to March 31, 2012.

• Strategically-held Equity Portfolio Management

Activities
We take the market risk management approach with use of
VaR and risk indices for strategically-held equity portfolio
management activities as well as for trading activities andnon-trading activities. The risk index for strategically-heldequity portfolio management for the fiscal year ended March
31, 2014, consisting of the sensitivity of the strategicallyheld equity portfolio to a 1% change in the equity index of
TOPIX, was 30.0 billion yen.
Back Testing and Stress Testing
In order to evaluate the effectiveness of market risk measurements calculated using the value-at-risk method, we
carry out regular back tests to compare value-at-risk withassumptive profits and losses. Assumptive profits and losses
accounts for general market risk. The graph below shows
daily value-at-risk of trading activities for the fiscal year
ended March 31, 2014, and the corresponding paired distribution of profits and losses. We had one case where profits
or losses exceeded value-at-risk during the period. In addition, we conduct evaluations of the assumptions related to
the value-at-risk models. Based on the number of times
profits or losses exceeded VaR through back testing and theresults of the evaluation of the model assumptions, we will

Because the value-at-risk method is based on statisticalassumptions, we conduct stress testing to simulate the levelsof losses that could be incurred in cases where the market
moves suddenly to levels that exceed these assumptions.
The stress testing methods we use include the calculation oflosses on the basis of the largest fluctuations occurring overa period of more than five years and the calculation of losses
based on market fluctuations occurring during historicalmarket events. In addition, we conduct stress testing basedon a sharp drop in the price of securitization and otherproducts due to diminished market liquidity. The tablebelow shows the assumed maximum loss results of stresstesting in trading activities using the methods describedabove:•

Fiscal 2013 Stress Testing
At March 31, 2014 (billions of yen)
Assumed maximum loss result calculated by stress testing(holding period: one month)

97.9

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

10.2

•

Outlier Criteria
As part of the capital adequacy requirements under BIS
Regulations, the losses arising from a banking book in
59

Internal Control Systems

hypothetical interest rate shock scenarios under certain
stress conditions are calculated and compared with broadlydefined capital. If the interest rate risk of the banking bookleads to an economic value decline of more than 20% of
broadly-defined capital, we will be deemed an “outlier” andmay be required to reduce the banking book risk or adopt
other responses. We measure losses arising from our banking
book each month as a part of our stress tests.
The table below shows the results of calculations of losses in the banking book in cases where interest rate fluctuations occur under stress conditions. The results of calculations of losses in the banking book show that they are 4.4%of broadly-defined capital. Because the amount of risk on
the banking book is therefore well under the 20% threshold
and within controllable limits, we do not fall under the “outlier” category. The loss ratio to capital decreased from theprevious fiscal year due mainly to the reduction of interest
rate risk.

Fiscal 2013 Results of Calculations under the
Outlier Framework(billions of yen)Amountof loss

Broadly- Loss ratio
defined to capital
capital

At March 31, 2012

483.2

7,775.0

6.2%

At March 31, 2013

499.1

8,344.5

5.9%

At March 31, 2014

386.6

8,655.9

4.4%

Effect of yen interest rate

78.2

Effect of dollar interest rate

209.3

Effect of euro interest rate

75.7

Notes:1. In the above results of calculations of losses, a part of demand deposits without fixed intervals for amending applicable interest rates is deemed core deposits and is treated accordingly in the calculation.
2. For the interest rate shock scenario used in connection withthe above figures, we generate annual rate fluctuation data
for five years derived from daily raw historical interest rate
data of the past six years and then apply the actual fluctuation data, which show a rise in interest rates, at a 99.0%
confidence level to the shock scenario.

•

Market Risk Equivalent
In order to calculate the amount of capital necessary tomeet the capital requirements relating to market risk (the“market risk equivalent”), we apply internal models to calculate general market risk (risks related to factors that
apply generally to the market, e.g., interest rates, foreignexchange rates) and the standardized measurement method
to calculate specific risks (risks other than general market
risk, e.g., credit quality and market liquidity of an individual
security or instrument). In addition, our internal models areapplied to trading transactions with market liquidity basedon the relevant holding period.
Under the internal models, the market risk equivalent is
60

expressed as the sum of ;The higher of (i) VaR on the calculation date and (ii) the
average of VaR for the preceding 60 business days (including the calculation date) multiplied by a multiplication factor
ranging from 3.00 to 4.00 that is determined based on thenumber of times VaR is exceeded upon back testing; andThe higher of (i) stressed VaR on the calculation date and(ii) the average of stressed VaR for the preceding 60 business days (including the calculation date) multiplied by thesame multiplication factor as used in the bullet point above.
The following table shows total market risk equivalent asof the dates indicated calculated using the standardized
measurement method and internal models:

Fiscal 2013 Market Risk Equivalent
At March 31, (billions of yen)
2013

2014

Change74.1

62.8(11.2)

116.3

170.6

54.2

233.5

43.0

Calculated using standardized
measurement method
Calculated using internal models
Total market risk equivalent

190.5

Note: VaR and stressed VaR used to calculate market risk equivalent isbased on the following:• variance co-variance model for linear risk and Monte-Carlosimulation for non-linear risk, which are simply aggregated todetermine total risk;• confidence interval: one-tailed 99.0%;• holding period of 10 days; and• historical observation period of one year.

Operational Risk Management
Basic Approach
We define operational risk as the risk of loss that we may
incur resulting from inadequate or failed internal processes,
people and systems or from external events. We recognizethat operational risk includes information technology risk,
operations risk, legal risk, human resources risk, tangible
asset risk, regulatory change risk and reputational risk. We
have determined risk management policies concerning risk
management structures and methods for each kind of risk.
MHBK, MHTB, MHSC and TCSB respectively manage operational risk in an appropriate manner pursuant to risk management policies determined by MHFG.
Operational Risk Management Structure
MHFG, MHBK, MHTB, MHSC and TCSB share common rules
for data gathering, and we measure operational risk on aregular basis, taking into account possible future loss eventsand the changes in the business environment and internalmanagement.
We have established and are strengthening management methods and systems to appropriately identify, assess,measure, monitor and control the operational risks whicharise from the growing sophistication and diversification offinancial operations and developments relating to information technology by utilizing control self-assessments andimproving measurement methods.
Glossary
Control Self-Assessments
An autonomous method of risk management in which risk inherent in operations is
identified and, after evaluating and monitoring risks that remains despite implementing risk control, the necessary measures are implemented to reduce risk.

ratios based on Basel II. However, we use the Basic Indicator
Approach (BIA) for entities that are deemed to be lessimportant in the measurement of operational risk equivalentand for entities that are preparing to implement the AMA.
The measurement results under the AMA are used not only
as the operational risk equivalent in the calculation of capital
adequacy ratios but also as Operational VAR for internal risk
management purposes for implementing action plans to
reduce operational risk, etc.

Operational Risk Management Structure

MHFG
Corporate Auditors,
Board of Directors

Board of Directors

President & CEO(Group CEO)

Audit Committee

Executive Management
Committee

Senior executive officers
responsible for each typeof risk management
Management

Operational risk management(Risk Management Division)
IT risk management
division
Operations risk
management division•Set risk management policies•Give instructions concerning
risk management

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

MHBK, MHTB, MHSC and TCSB

Definition of Risks and Risk Management Methods
As shown in the table on page 62, we have defined eachcomponent of operational risk and we apply appropriate risk
management methods in accordance with the scale andnature of each risk.
Measurement of Operational Risk Equivalent
Implementation of Advanced Measurement Approach
We have adopted the Advanced Measurement Approach(AMA) from September 30, 2009, for the calculation of operational risk equivalent in association with capital adequacy•61

Internal Control Systems

Definition
Risk that customers may suffer service disruptions,

Information Technology or that customers or the group may incur losses

Principal Risk Management Methods• Identify and evaluate the risk by setting specific standards that need to be complied withand implementing measures tailored based on evaluation results to reduce the risk.
• Ensure ongoing project management in systems development and quality control.
• Strengthen security to prevent information leaks.
• Improve effectiveness of emergency responses by improving backup systems and holding
drills.

Riskarising from system defects such as failures, faults,
or incompleteness in computer operations, or illegal
or unauthorized use of computer systems.

Operations Risk

Risk that customers may suffer service disruptions,as well as the risk that customers or the group may
incur losses because senior executives or employees
fail to fulfill their tasks properly, cause accidents orotherwise act improperly.

Legal Risk

• Review and confirm legal issues, including the legality of material decisions, agreements
Risk that the group may incur losses due to violationand external documents, etc.
of laws and regulations, breach of contract, entering• Collect and distribute legal information and conduct internal training programs.
into improper contracts or other legal factors.
• Analyze and manage issues related to lawsuits.

Human Resources Risk

Risk that the group may incur losses due to drain orloss of personnel, deterioration of morale, inade• Conduct employee satisfaction surveys.
quate development of human resources, inappro• Understand the status of vacation days taken by personnel.
priate working schedule, inappropriate working and• Understand the status of voluntary resignations.
safety environment, inequality or inequity in humanresource management or discriminatory conduct.

Tangible Asset Risk

Risk that the group may incur losses from damage
to tangible assets or a decline in the quality ofworking environment as a result of disasters, criminal actions or defects in asset maintenance.
Risk that the group may incur losses due to changes

Regulatory Change Risk in various regulations or systems, such as thoserelated to law, taxation and accounting.

Reputational Risk

• Establish clearly defined procedures for handling operations.
• Periodically check the status of operational processes.
• Conduct training and development programs by headquarters.
• Introduce information technology, office automation and centralization for operations.
• Improve the effectiveness of emergency responses by holding drills.

• Manage the planning and implementation of construction projects related to the repair andreplacement of facilities.
• Identify and evaluate the status of damage to tangible assets caused by natural disasters,
etc., and respond appropriately to such damage.
• Understand important changes in regulations or systems that have significant influence on
our business operations or financial condition in a timely and accurate manner.
• Analyze degree of influence of regulatory changes and establish countermeasures.
• Continuously monitor our regulatory change risk management mentioned above.

Risk that the group may incur losses due to damage• Establish framework to identify and manage, on an integrated basis, information that may
to our credibility or the value of the Mizuho brandhave a serious impact on group management and respond to such risk in a manner approwhen market participants or others learn about, or
priate to its scale and nature.
the media reports on, various adverse events,• Swiftly identify rumors and devise appropriate responses depending on the urgency andincluding actual materialization of risks or false
possible impact of the situation to minimize possible losses.
rumors.

We also recognize and manage Information Security Risk and Compliance Risk, which constitute a combination of more than one of the above components of operational risk, as operational risk.

•

Outline of the AMA
Outline of Measurement System
We have established the model by taking account of four
elements: internal loss data; external loss data; scenario
analysis and business environment; and internal control
factors (BEICFs). A statistical approach (one year holding
period/one-tailed 99.9 percentile confidence interval) istaken for the calculation of operational risk equivalent,
employing both internal loss data (i.e., actually experienced
operational loss events) and scenario data to reflect unexperienced potential future loss events in the measurement.
In the measurement of operational risk equivalent as ofMarch 31, 2014, we did not exclude expected losses andalso did not recognize the risk mitigating impact of insurance. In addition, we did not take into account the events
related to credit risk in measuring operational risk equivalent.
Outline of Measurement Model
Operational risk equivalent is calculated as a simple sum of
those related to the seven loss event types defined by Basel II,
large-scale natural disasters and litigation. In the measurement62

of operational risk equivalent as of March 31, 2014, we did
not reflect the correlation effects among operational risk
related to each of the seven loss event types.
Operational Risk by the Loss Event Type
Loss Distribution (Compound Poisson Distribution) Approach(LDA) is adopted for the calculation of operational risk. LDA
is based on the assumption that Poisson Distribution applies
to the occurrence frequency of operational risk events, andloss severity is expressed through a separate distribution.
Operational risk is calculated for each of the seven loss event
types employing both internal loss data, based on our actual
experience as operational loss events and scenario data.
Scenario data, expressed as numerical values of occurrence
frequency and loss severity, reflects external loss data and
BEICFs, in order to estimate unexperienced potential future
loss events (of low frequency and high severity).
Frequency Distribution and Severity Distribution are estimated employing the above mentioned internal loss dataand scenario data, and Monte-Carlo simulations are thenapplied to these distributions to measure operational risk.

The detailed steps of creation of scenario data are explainedlater in Scenario Analysis.
Estimation of “Frequency Distribution” and “LossSeverity Distribution”
Frequency Distribution is estimated by applying information
on occurrence frequency of both internal loss data and scenario data to Poisson Distribution. Loss Severity Distribution
is generated as the result of combining, through a statistical
approach (Extreme Value Theory), of the actual distribution for the low severity distribution portion created byinternal loss data and another loss distribution (Log-normal
Distribution or Generalized Pareto Distribution) for the highseverity distribution portion created by scenario data.
Operational Risk of Large-scale Natural Disasters
Monte-Carlo simulation is applied to the datasets expressed
as a combination of the probability of occurrence of largescale natural disasters and the probable loss amount in caseof such occurrence, as opposed to estimating Frequency
Distribution and Loss Severity Distribution.
Operational Risk of Litigation
Each litigation is converted into data according to the profileof the individual litigation to which Monte-Carlo simulation
is applied, as opposed to estimating Frequency Distribution
and Loss Severity Distribution. In the measurement process,we assume that final decisions will be made on all litigation
within one year.

Verification
We confirm the appropriateness of the measurement modelby verifying it, in principle, semi-annually.
Scenario Analysis
Outline of Scenario Analysis
In the process of scenario analysis, scenario data is createdas numerical values of occurrence frequency and loss severity reflecting external loss data and BEICFs, in order to estimate unexperienced potential future operational risk events(of low frequency and high severity).
As for external loss data, we refer to data publicly reported by domestic and overseas media, and such data arereflected in the estimation of occurrence frequency and loss
severity distribution in the process of scenario analysis. In
addition, BEICFs are utilized as indices to adjust occurrence
frequency and loss severity distribution in the process of scenario analysis.
We categorize scenario analysis into four approaches inaccordance with the characteristics of each loss event typeand risk management structures.

•

Approach

Loss event type(s) to be applied

A

Internal fraud/External fraud/Customers, products & business practices/Execution, delivery & process management

B

Employment practices and workplace safety

C

Damage to physical assets

D

Business disruption and system failure

Outline of Measurement Model
Internal loss data

Business environment andinternal control factors

External loss data

Scenario analysis

Risk amount for litigation risk

Large-scale natural
disaster scenario data

Scenario data

Litigation data

Risk amount for large-scale
natural disasters

Risk amount for internal fraud
Risk amount for external fraud

Distribution of
scenario data

Unifieddistribution

Frequency
distribution
information

Frequency
distribution
information

Frequency
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss severity
distribution
information

Loss distribution
Monte-Carlo simulation

Distribution ofinternal loss

Risk amount for employment
practices and workplace safety
Risk amount for customers,
products and business practices
Risk amount for damage tophysical assets

Risk amountCalculate risk amountby seven loss event
types defined by BIS

Risk amount for businessdisruption and system failure
Risk amount for execution,delivery and process management

Operational VaR(Total operational risk amount)63

Internal Control Systems

At MHFG, loss event types to which Approach A is applied
account for a considerable amount of operational risk. The
detailed process of Approach A is explained below as a typical example of scenario analysis.
Setting Units for Scenario Analysis
In order to ensure completeness and sufficiency, we set units
that are commonly applied across group entities that adopt
AMA (the Group Entities) by referencing and categorizing
risk scenarios recognized through control self-assessment,internal loss data of the Group Entities and external loss data,etc. Then each of the Group Entities selects the unit onwhich scenario analysis is conducted from the units established on a groupwide basis in accordance with its businessactivities and operational risk profile.
Estimation of Occurrence Frequency
Basic occurrence frequency (once a year) is calculated foreach scenario analysis unit. If a certain scenario analysis unit
has relevant internal loss data of a pre-determined threshold
amount or above, its basic occurrence frequency is calculated based on such data, and if not, the basic occurrence frequency (the occurrence frequency per year of losses at or
above a pre-determined threshold) is calculated with reference to the situation of occurrence of internal loss data ofless than the threshold amount and/or external loss data.
The basic occurrence frequency is then adjusted within a
pre-determined range for the purpose of reflecting the mostrecent BEICFs to determine the final occurrence frequency.
Estimation of Loss Severity Distribution
In order to estimate loss severity distribution, we use a predetermined series of severity ranges. Basic loss severity distribution is calculated for each scenario analysis unit as an
occurrence ratio (in percentile figures) of loss at each severity range when losses at or above a pre-determined threshold occurred, with reference to transaction amount data,
external loss data, etc. Then the basic severity distribution isadjusted, if necessary, from the viewpoint of statistical dataprocessing to determine the final loss severity distribution.
Creation of Scenario Data
For each scenario analysis unit, scenario data is generated asa series of combinations of occurrence frequency per year ateach severity range, based on the final occurrence frequency
and the final loss severity distribution.

64

Example of Scenario Data
Final loss severity distribution
Severity range (billions of yen)
0.1

0.5

1

5

Occurrence ratio (%)

40

30

15

10

10 Total
5100

Occurrence frequency (times)

0.4

0.3 0.15

0.1

0.05

1

Final occurrence frequency(As of June 24, 2014)

Internal Audit Structure•Internal Audit Management Structure

MHFG

Management

Internal Audit Management Structure
MHFG
Our internal audit committee determines all important matters concerning internal audits. The committee is chaired by
the President & CEO and is independent of our other business operations.
Our internal audit committee monitors and manages
internal audits at our core group companies through internal
audit reports submitted by such subsidiaries. Our internal
audit committee discusses and makes decisions regarding
internal audits at our core group companies and submits theresults, together with the results of their examination of theinternal audit reports, to our board of directors.
MHBK and MHTBMHBK and MHTB have also established internal audit committees that are independent of their other business operations.
The two banks have established internal audit divisions
and credit review divisions (Credit Assessment and Auditing
Office at MHTB) to conduct internal audits at their respective
domestic and overseas business offices, head office divisions
and group companies. Specifically, the internal audit divisions assess the suitability and effectiveness of businessactivities associated with compliance and risk management.
The credit review divisions (Credit Assessment and Auditing
Office at MHTB) audit credit ratings and the status of credit•

Corporate Auditors,
Board of Directors

Basic Approach
Internal audits are designed as an integrated process, independent from other business operations, for evaluating theextent to which internal control achieves its objectives in key
areas, including appropriate risk management, efficient andeffective business operations, reliable financial reporting andcompliance with laws, regulations and internal rules. We
conduct internal audits from an objective and comprehensive standpoint, independent of operational reporting lines,
and offer advice and remedial recommendations in connection with any problems that may be identified. Through thisprocess, internal audits assist the boards of directors of eachof our group companies to fulfill their managerial duties efficiently and effectively.
In line with the Basic Policy for Internal Audit establishedby MHFG, our core group companies conduct internal
audits, which include the auditing of their respective subsidiaries. In addition, with respect to the management ofrisks applicable across the group, we coordinate internal
audits throughout the group to assess the risk management
status of the group as a whole.

management in addition to auditing the self-assessmentof assets to verify the accuracy and suitability of mattersdeemed necessary to assure the soundness of assets.
Other Core Group Companies
Other core group companies have also established effective
and efficient internal audit structures adapted to the characteristics of their respective businesses.

Board of Directors

President & CEO(Group CEO)

Audit Committee

Internal Audit Committee(Chairman: President & CEO)Internal Audit Group

Everyorganizational
unitManagement
by MHFG

Internal
Audit

Internal Audit
Division

Advice, guidance
and remedialrecommendations

Report theresults of internal
audit, etc.

MHBK, MHTB, MHSC and othercore group companies

Subsidiaries of the above group companies(As of June 24, 2014)•

65

Senior Executives

Mizuho Financial Group

Masayuki Hoshi

Tsuyoshi Hatsuzawa

Managing Executive Officer

Managing Executive Officer

Directors and Executive Officers,
as defined in the Companies Act

Head of Financial Institutions & Public Sector
Business Unit / Head of Transaction Banking Unit

Deputy Head of Risk Management Group

Yasuhiro Sato

Tomoshige Jingu

Managing Executive Officer

Director, President & Group CEO(Representative Executive Officer)

Head of Human Resources Group (Group CHRO)

Yasunori Tsujita
Director, Deputy President & Executive Officer(Representative Executive Officer)
Head of Internal Control (Risk Management, Human
Resources and Compliance) and Head of ComplianceGroup (Group CCO)Managing Executive Officer

Executive Officers, as defined in
our internal regulations
Masaaki Kono

Deputy Head of Strategic Planning Group / Deputy
Head of Financial Control & Accounting Group /Deputy Head of IT & Systems Group / Deputy Headof Operations Group

Takashi Kamada
Managing Executive Officer

Deputy President & Executive Officer

Deputy Head of Personal Banking Unit / Deputy
Head of Retail Banking Unit

Deputy President (Western Japan (Kinki, Chugoku
and Shikoku regions))

Yoshihito Bando

Head of Risk Management Group (Group CRO)

Katsunobu Motohashi

Deputy Head of Asset Management Unit

Junichi Shinbo

Head of Asset Management Unit

Kenichi Minamitani

Hiroshi Suehiro

Deputy Head of Compliance Group

Ryusuke Aya
Director, Managing Executive Officer

Director, Managing Executive Officer
Head of Financial Control & Accounting Group(Group CFO)

Koji Fujiwara
Director, Managing Executive Officer
Head of Strategic Planning Group (Group CSO)

Hideyuki Takahashi

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

In charge of Compliance with US FBO Regulation

Hideo Gamou

Masayuki Yonetani

Deputy Head of Asset Management UnitManaging Executive Officer
Head of Corporate Banking Unit

Tetsuhiko Saito

Managing Executive Officer

Hidefumi Kobayashi
Managing Executive Officer

Managing Executive Officer

Deputy Head of Financial Control & Accounting
Group / Deputy Head of Risk Management Group

Director

Head of Personal Banking Unit / Head of Retail
Banking Unit

Masahiro Miyamoto

Akihiko Nomiyama

Tatsufumi Sakai

Director

Nobukatsu Funaki

Director (Outside Director)

Mitsuo Ohashi

Managing Executive Officer
Head of International Banking UnitManaging Executive Officer
Deputy Head of International Banking Unit / Deputy
Head of Investment Banking Unit

Shuzo Fujii

Director (Outside Director)

Daisuke Yamada

Managing Executive Officer
Deputy Head of Corporate Banking Unit

Takashi Kawamura

Managing Executive Officer
Head of Corporate Banking Unit (Large Corporations)

Director (Outside Director)

Tatsuo Kainaka
Director (Outside Director)

Kanemitsu Anraku
Director (Outside Director)

Hiroko Ota
Director (Outside Director)

Toshitsugu Okabe

Masaya Usuha

Takeru Watanabe

Managing Executive Officer

Managing Executive Officer

Deputy Head of Operations Group

Deputy Head of Personal Banking Unit / Deputy
Head of Retail Banking Unit

Tatsuya Yamada

Haruki Nakamura

Deputy Head of IT & Systems GroupManaging Executive Officer

Managing Executive Officer

Joint Head of IT & Systems Group

Tetsuhiro Sakamoto

Kazuya Kobayashi

Deputy Head of Human Resources GroupManaging Executive Officer

Deputy President & Executive Officer

Head of Investment Banking Unit

Head of Strategic Planning and Management
Control (Personal Banking, Retail Banking andCorporate Banking)Tadashi Ohi

Daisaku Abe

Managing Executive Officer
Deputy Head of Human Resources GroupManaging Executive Officer

Junichi Yamada
Managing Executive Officer
Deputy Head of Financial Institutions & Public Sector
Business Unit / Deputy Head of Markets Unit

Masuo Fukuda

Deputy President & Executive Officer

Shinya Tanaka

Managing Executive Officer

Head of IT & Systems Group (Group CIO) / Head ofOperations Group (Group COO)

Managing Executive Officer
Deputy Head of Investment Banking Unit

Deputy Head of Corporate Banking Unit (Large
Corporations)Tadashi Kanki

Masato Monguchi

Shinya Hanamura

Senior Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Head of Internal Audit Group (Group CA)

Deputy Head of Compliance Group

Deputy Head of Financial Institutions & Public Sector
Business Unit

Akira Sugano

Makoto Okayama

Senior Managing Executive Officer

Managing Executive Officer

Head of Strategic Planning and Management Control(International Banking, Investment Banking and AssetManagement)

Deputy Head of Corporate Banking Unit (Large
Corporations) / Deputy Head of Corporate Banking
Unit / Deputy Head of Financial Institutions & Public
Sector Business Unit

Executive Officer

Managing Executive Officer

Nobumitsu Watanabe

Head of Markets UnitManaging Executive Officer

General Manager of Corporate Banking
Coordination Division (Large Corporations)

Junichi Kato

Deputy Head of International Banking Unit / Deputy
Head of Investment Banking Unit / Deputy Head ofTransaction Banking Unit / Deputy Head of Markets
Unit

66

Kazuhisa Sawa

Kouji Arita
General Manager of Operations Planning Division

Akira Nakamura
Executive Officer

Kouji Yonei
Executive Officer
General Manager of IT & Systems Planning DivisionMasahiro Otsuka

Hokuto Nakano

Yasuo Agemura*

Executive Officer

Managing Executive Officer

Deputy President

General Manager of Retail Banking Coordination Division

Head of East Asia

Takahiko Yasuhara

Katsuyuki Mizuma

Head of Global Markets / Head of Markets &Products Division / Head of Global Business & Markets

Executive Officer

Managing Executive Officer

Hideo Gamou*

General Manager of International Coordination Division

Head of Asia & Oceania excl. East Asia

Managing Director
Head of Asset Management Group

Satoshi Ishii
Executive Officer
General Manager of Corporate Secretariat / General
Manager for Executive Secretariat

Shinji Taniguchi

Mizuho Trust & Banking
Directors

Executive Officer

Takashi Nonaka

General Manager of Investment Banking
Coordination Division

ChairmanTakeo Nakano*President & CEO (Representative Director)

Mizuho Bank

Toshihiko Fukuzawa*

Shuichi Shimada*Managing Director
Head of Strategic Planning Group / In charge ofInvestment Dept. / Attached to Investment Banking
Division

Hidefumi Kobayashi*Managing Director
Head of Global Finance / Head of Research Group /Head of Finance & Accounting Group / In charge of
Due Diligence Dept.

Deputy President (Representative Director)

Directors

Keizo Ohashi

Head of Business promotion

Director

Nobuhide Hayashi*

Tadashi Ohi*
Deputy President (Representative Director)

Kenji Fujii*

President & CEO (Representative Director)

Masaaki Kono*

Head of Human Resources Group and Head ofInternal Audit Group

Deputy President (Representative Director)
Deputy President (Western Japan (Kinki, Chugoku andShikoku regions))

Yasunori Tsujita*

Masao Yoshikawa*
Deputy President (Representative Director)
Head of Business promotion

Deputy President

Masato Monguchi*

Head of Compliance GroupManaging Director

Kosuke Nakamura*

Head of Compliance Group

Deputy President (Representative Director)

Tsuyoshi Hatsuzawa*

Head of Business Promotion

Managing Director

Nobuyuki Fujii*

Head of Risk Management Group and in charge of
Credit Department

Senior Managing Director (Representative Director)
Head of Business Promotion

Ryusuke Aya*Managing Director
Head of Risk Management Group

Junichi Shinbo*

Kazuhisa Sawa*
Managing Director
Head of Strategic Planning, Financial Control &Accounting Group / Head of IT & Systems Group /Head of Operations Group / In charge of Executive
Secretariat

Managing Director

Yasuhiro Sato

Head of Financial Control & Accounting Group

Director

Koji Fujiwara*

Masaru Ono

Managing Director

Director (Outside Director)

Head of Strategic Planning Group

Hideyuki Takahashi

Eiji Ogawa
Director (Outside Director)

Director

Hirohisa Kashiwazaki
Director

Mizuho Securities

Yasuhiro Sato

Directors

Director

Yukio MachidaDirector (Outside Director)

Seiji Koga
Director (Outside Director)

Mitsuhiro Nagahama
ChairmanHiroshi Motoyama*
President & CEO (Representative Director)

Yasuhiko Imaizumi*
Deputy President (Representative Director)

Executive Officers(Head of Each Region Overseas)

Head of Corporate Business

Atsushi Narikawa

Deputy President

Hajime Saito*

Managing Executive Officer

Head of Internal Audit Division

Head of Europe, Middle East and Africa

Kenichi Minamitani*

Hiroshi Suehiro

Deputy PresidentManaging Executive Officer
Head of the Americas

Head of Compliance Group

Director
Head of Global Risk Management / Head of Risk
Management Group

Yasuhiro Sato
Director

Hidetaka Kawakita
Director (Outside Director)

Masaru Ono
Director (Outside Director)

Notes: 1. *indicates directors concurrently serving as
executive officers.
2. The Chairman and the Deputy Chairman of
the Board of Directors, and the committee
members and the Chairman of eachcommittee of Mizuho Financial Group are as
follows:
Chairman of the Board of Directors:
Hiroko Ota
Deputy Chairman of the Board of
Directors: Hideyuki Takahashi
Nominating Committee members: Mitsuo
Ohashi (Chairman), Takashi Kawamura,
Tatsuo Kainaka and Hiroko Ota
Compensation Committee members:
Tatsuo Kainaka (Chairman), AkihikoNomiyama, Takashi Kawamura andKanemitsu Anraku
Audit Committee members: Hideyuki
Takahashi (Chairman), Akihiko Nomiyama,
Tatsuo Kainaka, Kanemitsu Anraku andNobukatsu Funaki
3. The corporate auditors and executive officers,
excluding the directors concurrently serving
as executive officers and executive officers
responsible for global regional operations ofMizuho Bank, have not been listed.
4. The corporate auditors and executive officers,
excluding the directors concurrently serving
as executive officers of Mizuho Trust &Banking and Mizuho Securities, have notbeen listed.

(As of June 25, 2014)67

Location of Overseas Offices(As of June 30, 2014)

Network of Mizuho Bank

Mizuho Bank (China), Ltd.
Tianjin Branch

Asia and Oceania

5th Floor, E2 ABC, East Wing Binhai Finance Zone,
No.20 Xinchengdong Road, TEDA, Tianjin 300457,
The People's Republic of China
TEL 86-22-6622-5588(Country/Region)
China

Mizuho Bank (China), Ltd.
23rd Floor, Shanghai World Financial Center,
100 Century Avenue, Pudong New Area,
Shanghai 200120,
The People's Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Shanghai Pilot Free Trade Zone Sub-Branch
Room 01, 08, 09, 10, 11, 12, 7F, Shanghai
International Communication and Trade Building,
55 Jilong Road, Shanghai 200131, The People's
Republic of China
TEL 86-21-3855-8888

Mizuho Bank (China), Ltd.
Beijing Branch

5th Floor, Tower A, New World Center Tower,
634 Jiefang Avenue, Hankou, Wuhan,
Hubei Province 430032,
The People's Republic of China
TEL 86-27-8342-5000

Mizuho Bank (China), Ltd.
Wuxi Branch
8th Floor, Wuxi SI Park B, No.16 Changjiang Road,
WND, Wuxi, Jiangsu Province 214028,
The People's Republic of China
TEL 86-510-8522-3939

Mizuho Bank (China), Ltd.
Dalian Economic & Technological
Development Area Sub-Branch

8th Floor, West Wing, World Financial Center,No.1 Dong San Huan Zhong Road,
Chaoyang District, Beijing 100020,
The People's Republic of China
TEL 86-10-6525-1888

22nd Floor, International Business Building ofGugeng, No.81 Hongmei Area, Dalian Economic &Technological Development Area, Dalian,
Liaoning Province 116600,
The People's Republic of China
TEL 86-411-8793-5670

Mizuho Bank (China), Ltd.
Dalian Branch

Mizuho Bank (China), Ltd.
Kunshan Sub-Branch

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

Room D,E, 18th Floor, Dongan Building, No.258
Chunxu Road, Development Zone Kunshan City,
Kunshan, Jiangsu Province 215300,
The People's Republic of China
TEL 86-512-6733-6888

Mizuho Bank (China), Ltd.
Guangzhou Branch
25th Floor, International Finance Place, No.8
Huaxia Road, Zhujiang New Town,
Tianhe District, Guangzhou,
Guangdong Province 510623,
The People's Republic of China
TEL 86-20-3815-0888

Mizuho Bank (China), Ltd.
Changshu Sub-Branch
Room701-704, Kechuang Building, No.333
Dongnan Road, Changshu New&Hi-tech Industrial
Development Zone, Jiangsu Province, 215500,
The People's Republic of China
TEL 86-512-6733-6888

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

India

Bangalore-Devanahali Branch#462/440/339, 2nd Floor, Near Jain Temple,
N.H.7/4-207, B.B. Road, Vijayapura Cross,
Devanahalli Town, Bangalore Rural
District - 562 110, Karnataka, India
TEL 91-80-3080-7300

Chennai Branch
Unit No.11B, 11th Floor, Prestige Palladium
Bayan, Nos. 129 to 140, Greams Road,
Chennai – 600 006, Tamil Nadu, India
TEL 91-44-4928-6600

Mumbai Branch
Maker Chamber III , 1st Floor, Jamnalal Bajaj Road,
Nariman Point, Mumbai, 400 021, India
TEL 91-22-2288-6638

New Delhi Branch
1st Floor, DLF Capitol Point, Baba Kharag SinghMarg, Connaught Place, New Delhi, 110001, India
TEL 91-11-3041-0900

Indonesia

PT. Bank Mizuho Indonesia
Sinar Mas Land Plaza Menara 2, 24th Floor,
Jl. M. H. Thamrin No.51, Jakarta 10350,
Republic of Indonesia
TEL 62-21-392-5222

Cambodia

Phnom Penh Representative Office
13A Floor, Phnom Penh Tower, #445, Monivong
Blvd (St. 93/232) Sangkat Boeung Pralit, Khan 7
Makara, Phnom Penh, Cambodia
TEL 855-23-964-490

Korea

Seoul Branch

Mizuho Bank (China), Ltd.
Hefei Branch

Mizuho Bank (China), Ltd.
Tianjin Heping Sub-Branch

Room No.1902-1907, No.7 Office Building
Wanda Plaza, 130 Maanshan Street,
Baohe District, Hefei, Anhui Province,
The People's Republic of China
TEL 86-551-6380-0690

Room 1902, Tianjin International Building, No.75
Nanjing Road, Heping Area, Tianjin 300050,
The People's Republic of China
TEL 86-22-6622-5588

Nanjing Representative Office

Labuan Branch

Mizuho Bank (China), Ltd.
Qingdao Branch

Room 2220, Suning Universal Hotel,
188 Guangzhou Road, Nanjing,
Jiangsu Province 210024,
The People's Republic of China
TEL 86-25-8332-9379

Level 9 (B) & (C), Main Office Tower,
Financial Park Labuan, Jalan Merdeka, 87000
Federal Territory of Labuan, Malaysia
TEL 60-87-417766

44th Floor, Qingdao International Finance Center,
59 Hong Kong Middle Road, Shinan District,
Qingdao, Shandong Province 266071,
The People's Republic of China
TEL 86-532-8097-0001

Mizuho Bank (China), Ltd.
Shenzhen Branch
30th Floor, Huanggang Business Center Tower1,
Jintian Road, Futian District, Shenzhen,
Guangdong Province 518046,
The People's Republic of China
TEL 86-755-8282-9000

Mizuho Bank (China), Ltd.
Suzhou Branch
17th Floor, Genway Building,
188 Wangdun Road, Suzhou Industrial Park,
Suzhou, Jiangsu Province 215123,
The People's Republic of China
TEL 86-512-6733-6888

68Mizuho Bank (China), Ltd.
Wuhan Branch

Mizuho Capital Markets (HK) Limited

Xiamen Representative Office
Room 2102, The Bank Center, No.189 Xiahe Road,
Siming District, Xiamen, Fujian Province 361003,
The People's Republic of China
TEL 86-592-239-5571

Hong Kong

Hong Kong Branch
17th Floor, Two Pacific Place, 88 Queensway,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2103-3000

Kowloon Sub-Branch
16th Floor, Sun Life Tower, The Gateway,
Tsim Sha Tsui, Kowloon,
Hong Kong, S.A.R., The People's Republic of China
TEL 852-2102-5399

19th Floor, Seoul Finance Center, 136, Sejongdaero, Jung-gu, Seoul, Korea
TEL 822-3782-8500

Malaysia

Labuan Branch, Kuala Lumpur
Marketing Office
Level 27, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2070-6880

Mizuho Bank (Malaysia) Berhad
Level 27, Menara Maxis, Kuala Lumpur City
Centre, 50088 Kuala Lumpur, Malaysia
TEL 60-3-2058-6881

Myanmar

Yangon Representative Office
Room #03-12, Level 3, Sedona Business Suites,
No.1, Ka Ba Aye Pagoda Road, Yankin Township,
Yangon, Republic of the Union of Myanmar
TEL 95-1-544-071

Philippines

Manila Branch
25th Floor, Zuellig Building, Makati Avenue
corner Paseo de Roxas, Makati City 1225, Metro
Manila, Philippines
TEL 63-2-860-3500

Singapore

Singapore Branch
168 Robinson Road, #11-01 Capital Tower,
Singapore 068912, Republic of Singapore
TEL 65-6423-0330

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

Taichung Branch
8th Floor, No.169, Fuhui Parkway,
Taichung 407, Taiwan
TEL 886-4-2374-6300

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

Thailand

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

VietnamHanoi Branch
4th Floor, 63 LTT Building,
63 Ly Thai To Street, Hanoi,
Socialist Republic of Vietnam
TEL 84-4-3936-3123/3124

Ho Chi Minh City Branch
18th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam
TEL 84-8-3827-8260/8292

Australia

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

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

Europe, the Middle East andAfrica(Country/Region)
Austria

BelgiumMizuho Bank Nederland N.V.
Brussels Branch
Avenue Louise 480, 1050 Brussels, Belgium
TEL 32-2-645-5280

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

Germany

Duesseldorf Branch
Benrather Strasse 18-20, 40213 Duesseldorf,
F.R. Germany
TEL 49-211-13020

Frankfurt Branch
An der Hauptwache 7,60313 Frankfurt am Main,
F.R. Germany
TEL 49-69-29-72-95-0

Italy

Milan Branch
6th Floor, Largo Augusto 7, 20122 Milan,
Republic of Italy
TEL 39-02-778-0001

Spain

U.A.E

Dubai Branch
The Gate Village, Building Number 5, Level 2,
Dubai International Financial Centre,
P.O.Box No:506607, Dubai, United Arab Emirates
TEL 971-4-425-9200

RussiaZAO Mizuho Bank (Moscow)
5th floor, 20, bld.1, Ovchinnikovskaya nab.,
115035 Moscow, Russian Federation
TEL 7-495-212-0333

Moscow Representative Office
Millennium House Business Center,
12, Trubnaya Street, Moscow 107045,
Russian Federation
TEL 7-495-787-2771

South Africa

Johannesburg Representative Office
2nd Floor, West Tower, Maude Street, Nelson
Mandela Square, Sandton 2196, South Africa,
P.O.Box 785553, Sandton 2146
TEL 27-11-881-5410

Saudi Arabia

Mizuho Saudi Arabia Company
North Lobby 1st Floor, Al Faisaliah Tower,
King Fahd Road, Olaya District, Riyadh 11544,
Kingdom of Saudi Arabia
TEL 966-11-273-4111

Mizuho Bank Nederland N.V.
Madrid Representative Office
Calle Orense 34, Planta 6, Edificio Iberia Mart II ,28020 Madrid, SpainTEL 34-91-598-2905

The Netherlands

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

United Kingdom

London Branch
Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-20-7012-4000

Mizuho Capital Markets (UK) Limited
One Friday Street, London, EC4M 9JA, UK
TEL 44-20-3192-1300

Bahrain

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

Iran

Tehran Representative Office
3rd Floor, No.1, 14th Street,
Khaled Eslamboli Avenue, Tehran 15117, IranTEL 98-21-8872-6593

TurkeyMizuho Bank-BA Investment
Consulting GmbH

Istanbul Representative Office

Landhausgasse 4/7, 1010 Vienna, Austria
TEL 43-1-5355868

Office 813, Tekfen Tower 8th Floor, Buyukdere
Caddesi No.209, 4. Levent 34394, Istanbul, Turkey
TEL 90-212-371-8474

The Americas(Country/Region)
BahamasMizuho Bank (USA)Nassau Branch
308 East Bay Street, P.O. Box N-7768,
Nassau, Bahamas

BrazilBanco Mizuho do Brasil S.A.
Avenida Engenheiro Luiz Carlos Berrini,
716- 10andar, Brooklin Novo, São Paulo, SP, CEP.
04571-000, Brazil
TEL 55-11-5504-9844

CanadaCanada Branch
100 Yonge Street, Suite 1102, Toronto, Ontario,
Canada, M5C 2W1
TEL 1-416-874-0222

Calgary Office
Suite 1000, 888 3rd Street, South West, Calgary,Alberta, Canada, T2P 5C5
TEL 1-403-444-5375

Vancouver Office
Suite 305, South Tower, 5811 Cooney Road,
Richmond, British Columbia, Canada, V6X 3M1
TEL 1-604-231-3725

69

Location of Overseas Offices

Cayman Islands

Cayman Branch
c/o Intertrust Bank (Cayman) Limited,
P.O. Box 1034, 190 Elgin Avenue,
Grand Cayman KY1-9005, Cayman Islands

MexicoMexico Representative Office
Torres E3, Blvd. Manuel Avila Camacho No.32,
Piso 7, Oficina 702 Col.
Lomas de Chapultepec,
Delegacion Miguel Hidalgo, 11000,
Mexico, D.F., Mexico
TEL 52-55-5281-5037

U.S.A.

Chicago Branch
311 South Wacker Drive, Suite 2020,
Chicago, IL 60606, USA
TEL 1-312-855-1111

New York Branch
1251 Avenue of the Americas,
New York, NY 10020, USA
TEL 1-212-282-3000

Mizuho Desk

Mizuho Securities (Singapore) Pte. Ltd.

(Country/Region)

One Raffles Quay, North Tower Unit 32-02,
Singapore 048583, Republic of Singapore
TEL 65-6603-5688

Austria

Raiffeisen Bank International AG
Am Stadtpark 9, A-1030 Vienna, Austria
TEL 43-1-71707-1375

U.A.E

Mashreqbank psc
Japan Desk, Mashreqbank Building 3F,
Dubai Internet City, Mashreqbank,
P.O.Box 1250, Dubai,
United Arab Emirates
TEL 971-4-363-2324/2285“Mizuho Desk”
By forming tie-ups with major financial institutions in regions where Mizuho does not possess
offices, we offer our customers financial services
through various institutions. (Transactions are
conducted directly between the customer and the
local financial institution.)

Loewenstrasse 32, 8021 Zurich, Switzerland
TEL 41-44-216-9111

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

Mizuho Securities USA Inc.
320 Park Avenue, New York,NY 10022, USA
TEL 1-212-209-9300

Network of DIAM
DIAM Asset Management (HK) Limited
Suites 1221-22, Two Pacific Place,
88 Queensway, Hong Kong, S.A.R,
The People's Republic of China
TEL 852-2918-9030

Los Angeles Branch
350 South Grand Avenue, Suite 1500,
Los Angeles, CA 90071, USA
TEL 1-213-243-4500

Network of Mizuho Trust & Banking

DIAM SINGAPORE PTE. LTD.

Atlanta Representative OfficeMizuho Trust & Banking(Luxembourg) S.A.

2 Shenton Way #12-01 SGX Centre I ,Singapore 068804
TEL 65-6532-5470

1B, rue Gabriel Lippmann, L-5365 Munsbach,Grand Duchy of Luxembourg
TEL 352-42-16-17-1

DIAM International Ltd

3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Houston Representative Office2700 Post Oak Blvd., Suite 1350, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Trust & Banking Co. (USA)135 W. 50th Street, 16th Floor, New York,NY 10020, USA
TEL 1-212-373-5900

Mizuho Bank (USA)1251 Avenue of the Americas,
New York, NY 10020, USA
TEL 1-212-282-3030

Mizuho Bank (USA)Atlanta Representative Office3353 Peachtree Road NE, Atlanta Financial Center,
Suite 500, Atlanta, GA 30326, USA
TEL 1-404-364-1550

Mizuho Bank (USA)
Chicago Representative Office
311 South Wacker Drive, Suite 2020, Chicago,
IL 60606, USA
TEL 1-312-855-1111

Mizuho Bank (USA)
Houston Representative Office2700 Post Oak Blvd., Suite 1350, Houston,
TX 77056, USA
TEL 1-713-499-4800

Mizuho Bank (USA)Los Angeles Representative Office
350 South Grand Avenue, Suite 1500, Los Angeles,
CA 90071, USA
TEL 1-213-243-4500

Mizuho Alternative Investments, LLC
757 Third Avenue, 8th Floor, New York,NY 10017, USA
TEL 1-212-282-4804

Mizuho Capital Markets Corporation
1440 Broadway, 25th Floor, New York, NY 10018,
USA
TEL 1-212-547-1500

70

Mizuho Bank (Switzerland) Ltd

Network of Mizuho Securities
Beijing Representative Office
8th Floor, Chang-Fu-Gong Office Building, Jia 26,
Jianguomenwai Street, Chaoyang District,
Beijing 100022, The People's Republic of China
TEL 86-10-6523-4779

Shanghai Representative Office
17th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-8000

Mizuho Investment Consulting(Shanghai) Co., Ltd.
33th Floor, Shanghai World Financial Center,No.100, Century Ave., Pudong New Area,
Shanghai 200120, The People's Republic of China
TEL 86-21-6877-5888

Mizuho Securities Asia Limited
12th Floor, Chater House, 8 Connaught Road
Central, Hong Kong, S.A.R.,
The People's Republic of China
TEL 852-2685-2000

Mizuho Securities India Private Limited
Unit 141-144, 14th Floor, Free Press House,
215 Free Press Journal Marg, Nariman Point,
Mumbai, 400 021, India
TEL 91-22-6121-7600

Bracken House, One Friday Street,
London, EC4M 9JA, UK
TEL 44-207-329-3777

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

Investor Information

Date of Establishment(Eleventh Series Class XI Preferred Stock)
Percentageof shares
outstanding
Shares held(%)

January 8, 2003

Paid-in Capital¥2,254,972 million

Marubeni Corporation

14,500,000

4.63

SHIMIZU CORPORATION

10,000,000

3.19

Issued Shares

Electric Power Development Co., Ltd. 10,000,000

3.19

25,178,637,187 shares
Common Stock: 24,263,885,187 shares
Eleventh Series Class XI Preferred Stock: 914,752,000 shares

ANA HOLDINGS INC.

6,000,000

1.91

JFE Steel Corporation

6,000,000

1.91

DAIICHI SANKYO COMPANY, LIMITED 6,000,000

1.91

CANON INC.

5,000,000

1.59

Kyushu Electric Power Company,
Incorporated

5,000,000

1.59

Shiseido Company, Limited

5,000,000

1.59

Chubu Electric Power Company,
Incorporated

5,000,000

1.59

Note: All of the shares of the Thirteenth Series Class XIII Preferred Stockissued by Mizuho Financial Group (36,690,000 shares) were acquiredand cancelled on July 11, 2013.

Number of Shareholders
Common Stock: 857,176
Eleventh Series Class XI Preferred Stock: 1,333

Major Shareholders(Common Stock)
Percentageof shares
outstanding
Shares held(%)

Japan Trustee Services Bank, Ltd.
(Trustee account)

1,058,006,500

4.36

The Master Trust Bank of Japan, Ltd.
(Trustee account)935,152,900

3.85

THE BANK OF NEW YORKMELLON SA/NV 10

699,174,270

2.88

JP MORGAN CHASE BANK 380072

452,608,000

1.86

STATE STREET BANKWEST CLIENT - TREATY

271,620,516

1.11Japan Trustee Services Bank, Ltd.
(Trustee account 6)

266,832,500

1.10Japan Trustee Services Bank, Ltd.
(Trustee account 5)

266,487,300

1.09Japan Trustee Services Bank, Ltd.
(Trustee account 1)

265,131,300

1.09Japan Trustee Services Bank, Ltd.
(Trustee account 3)

262,653,300

1.08Japan Trustee Services Bank, Ltd.
(Trustee account 2)

262,003,600

1.08

Notes:1. Figures for the percentage of shares outstanding are rounded
down to the nearest second decimal place.
2. The percentages of shares outstanding are calculated by excluding
the treasury stock (602,100,700 shares). Furthermore, the treasury
stock is not included in the above list of major shareholders.

(As of March 31, 2014)

Notes:1. Figures for the percentage of shares outstanding are rounded down
to the nearest second decimal place.
2. The percentages of shares outstanding are calculated by excluding
the treasury stock (10,637,825 shares).

71

Investor Information

Stock Listing(Common Stock)

Record Date for Distribution of Dividends from
SurplusTokyo Stock Exchange

The record dates for distribution of dividends from surplusof the Company shall be March 31 and September 30 ofeach year.

Accounting Auditors
Ernst & Young ShinNihon LLC

Shareholder Register Manager
Mizuho Trust & Banking Co., Ltd.

Share Unit

ADR* Information

100 shares

Outline of Mizuho Financial Group's ADR

Fiscal Year
April 1 to March 31

Convocation of General Meetings of Shareholders
An ordinary general meeting of shareholders of theCompany shall be convened no later than 3 months fromthe last day of each business year and an extraordinary
general meeting of shareholders shall be convened whenever necessary.

Record Date
1. The Company shall deem shareholders having voting
rights appearing in writing or electronically in the registerof shareholders as of the end of March 31 of each year as
the shareholders who are entitled to exercise their rights
at the ordinary general meeting of shareholders for the
relevant business year.
2. The provision of the preceding paragraph shall apply
mutatis mutandis to the record date for voting rights at
the general meetings of holders of classes of stock, where
there is a matter to be resolved at an ordinary general
meeting of shareholders that requires, in addition to such
resolution, a resolution by the relevant general meeting ofholders of class of stock.
3. In addition to the preceding two paragraphs, theCompany may set an extraordinary record date, whennecessary, by a determination by Executive Officer(s)under the authority delegated by the Board of Directors
and upon giving a prior public notice thereof.

Organizations that Decide Dividends from Surplus,
Etc.
The Company shall decide distribution of dividends fromsurplus and other matters provided for in each item of
Article 459, Paragraph 1 of the Companies Act of Japan, notby a resolution of a general meeting of shareholders, but by
a resolution of the Board of Directors, unless otherwise provided for in laws or regulations.

72

1. Exchange :2. Ticker Symbol :3. CUSIP :4. Conversion ratio :5. Depositary bank :New York Stock Exchange
MFG
60687Y109
1 ADR = 2 common shares
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Phone: 1-201-680-6825
U.S. Toll Free: 888-269-2377
http://www.adrbnymellon.com/
6. Local custodian bank : Mizuho Bank, Ltd.
* ADRs are securities issued for the purpose of trading in the U.S. in placeof the underlying stock of foreign companies. As ADRs are registeredwith the SEC as U.S. securities, they are traded, settled and held incustody in substantively the same manner as the stocks of U.S.
companies. ADR is an acronym for American Depositary Receipts.

Disclosure Policy

Basic Principles
We are committed to growing together with our customers
in a stable and sustainable manner and bringing together
our group-wide expertise to contribute to the prosperity of
economies and societies throughout the world as the leading Japanese financial services group with a global presence
and a broad customer base. For this reason, we place one of
the highest management priorities on continuing to disclose
information to our customers, shareholders, and investors
both in and outside Japan in a fair, timely and appropriatemanner, in order that they may form proper judgments andappraisals of the group. To achieve this aim, we observe
applicable domestic and international laws and regulations
as well as stock exchange rules relating to corporate disclosure, and we establish and implement appropriate
Disclosure Controls and Procedures.
Disclosure Controls and Procedures(1) Establishment and Implementation of Disclosure
Controls and Procedures
Our Disclosure Controls and Procedures are establishedto observe applicable domestic and international laws
and regulations as well as stock exchange rules and to
implement fair, timely and appropriate corporate disclosure. The Disclosure Controls and Procedures are theprocess carried out by directors, officers and employeesof Mizuho Financial Group and include internal controls
designed to provide reasonable assurance regarding thereliability of Financial Reporting and the Preparation of
Financial Statements. We have established the basic principles underlying our Disclosure Controls and Procedures
as well as our internal rules related to Disclosure Controls
and Procedures that govern the management framework
for the entire Mizuho Financial Group including groupcompanies, and we endeavor to establish, implement
and continuously improve our Disclosure Controls andProcedures. Our Disclosure Committee is the principal
management body that is responsible for discussing andexploring matters relating to Disclosure Controls andProcedures.
(2) Evaluation of Effectiveness of Disclosure Controls
and Procedures
Our Disclosure Controls and Procedures are documented,
and evaluation of the overall effectiveness of our
Disclosure Controls and Procedures is conducted regularly by reviewing the contents of such documentationand their implementation. In addition, evaluation of theeffectiveness and appropriateness of Disclosure Controls
and Procedures is conducted through internal audits.
(3) Others
We established a “Code of Ethics for Financial
Professionals” to be observed by all directors and executive officers, as well as all managers and other employees

within Mizuho Financial Group who engage in financial
reporting, accounting or disclosure. We have also developed the “Internal Controls and Audit Hotline”, a systemdesigned for obtaining concerns regarding questionableaccounting or auditing matters from both inside and outside Mizuho Financial Group.

Disclosure Methods, Other(1) Disclosure Methods
With respect to the information which is required to bedisclosed pursuant to applicable domestic and international laws and regulations as well as stock exchange
rules, we follow the defined disclosure procedures suchas publishing such information in business reports (JigyoHokoku), annual securities reports (YukashokenHokokusho) and other disclosure publications, as well as
providing such information through the information distribution systems of domestic and international stock
exchanges and through press releases. We also endeavor
to disclose other information in a fair, timely and appropriate manner. When we disclose such information, webasically publish on our website the information we disclose. In addition, we endeavor to utilize the latest disclosure methods and tools to provide more fair andwidespread disclosure.
(2) Investor Relations Activities
In accordance with our Basic Principles described above,
and with due attention to two-way communication, we
endeavor sincerely to facilitate a proper understanding of
our management strategies, financial condition andother matters. In this way, we aim to earn the trust of
the market and obtain an appropriate market reputation.
Beginning with the disclosure required by applicable
domestic and international laws and regulations as well
as stock exchange rules, we endeavor to grasp properly
the types of information desired by the market and to
disclose useful and appropriate information voluntarily
and proactively. Regarding disclosure of information we
consider particularly important, we communicate suchinformation on an ad hoc basis as and when necessary,even if a press release has already been issued, throughsuch means as special briefing sessions.
In addition, we respect various disclosure principles
including fair disclosure. Accordingly, at individual calls,
private meetings or conferences hosted or attended byrepresentatives of Mizuho Financial Group we endeavor
to limit carefully our explanations to matters already disclosed and facts commonly known.
(3) Correction of Misconceptions in the Markets
If we identify significant misconceptions regarding
Mizuho Financial Group in the market due to the spreadof rumors or otherwise, we endeavor to investigate theircauses and correct such misconceptions promptly.
73

Privacy Policy Regarding Customer Information

Mizuho Financial Group, Inc. (“MHFG”) hereby establishes
and announces the “Privacy Policy Regarding Customer
Information” applicable to Mizuho Financial Group whichis composed of MHFG, its consolidated subsidiaries andaffiliates (which are accounted for by the equity method)that are listed in MHFG's Financial Reports.

Policy of Management
Mizuho Financial Group recognizes appropriate protection
and use of personal information to be important social
responsibilities, and makes every effort to appropriately
protect and use personal information complying with the
Personal Data Protection Law in Japan, other related regulations and the internal rules of Mizuho Financial Group,
including the “Privacy Policy Regarding Customer
Information” when Mizuho Financial Group conducts
business.

Proper Acquisition
Mizuho Financial Group will acquire personal informationthat is necessary to conduct its business by proper and lawful means.

Management of Sensitive Information
Mizuho Financial Group will not acquire, use and provide to
any third party sensitive information (e.g. political affiliation,
religion, participation in labor union, race, ethnic group,
family origin, legal address on family registry and medical
information) unless authorized by law or it is necessary to
conduct business on condition that Mizuho Financial Grouphas customer consent.
Security Measures
Mizuho Financial Group will maintain and manage accurate
and up to date personal information, and prevent leakage of
information with rational security measures. Mizuho
Financial Group will properly supervise employees and parties entrusted with handling personal information.

Continuous Improvement
Mizuho Financial Group will continuously review this policy
according to the development of information technologies
and the changes in social demand, and improve the management of personal information.

Procedures to Request Disclosure
Purpose of Use
Mizuho Financial Group will specify the purpose of use of
personal information and will not use it beyond the specified
purpose. Furthermore, Mizuho Financial Group will not use
personal information beyond the purpose limited by related
regulations.
The purpose of use of personal information is set forththrough the web site or other measures provided by eachcompany of Mizuho Financial Group.

Mizuho Financial Group will endeavor to properly andpromptly cope with following requests from customers:• notification of the purpose of use• disclosure of personal data
• correction, addition and deletion of personal data that
do not reflect the facts• suspension of use and elimination of personal data• suspension of providing personal data to a third party

Customer Request
Limitation on Providing Personal Information to a
Third Party
Mizuho Financial Group will not provide personal information to any third party in principle unless the individual concerned has agreed to such use or it is authorized by law.
However, Mizuho Financial Group may provide personal
information to relevant entities without customer consent infollowing cases:• Mizuho Financial Group entrusts management of personal information that is necessary to achieve the purpose of use to a third party.
• Mizuho Financial Group is one of the parties in a consolidation transaction.
• Mizuho Financial Group uses personal information jointlywith designated entities that are publicly informed.

74

Mizuho Financial Group will endeavor to cope with customer requests for the management of personal information
sincerely and promptly.

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

1

Financial and Economic Environment

3

Results for the Fiscal Year ended March 31, 2014

5

Status of Asset Quality

10Financial Analysis

Key Indicators of Mizuho Financial Group, Inc.

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

As of or for the Fiscal Years ended March 31,

Total Income
Net Income
Comprehensive Income
Net Assets
Total Assets
Deposits
Debentures
Loans and Bills Discounted
Securities
Net Assets per Share (Yen) (Note 1)
Net Income per Share (Yen) (Note 1)
Diluted Net Income per Share (Yen) (Note 1)

2014

¥

2,940.7
688.4
832.9
8,304.5
175,822.8
101,811.2—
69,301.4
43,997.5

2013¥

2,914.0
560.5
1,270.8
7,736.2
177,411.0
99,568.7—
67,536.8
53,472.3

2012¥

2,808.5
484.5
627.5
6,869.2
165,360.5
90,636.6—
63,800.5
51,392.8

2011¥

2,777.0
413.2
266.6
6,623.9
160,812.0
88,884.1
740.9
62,777.7
44,782.0

2010¥

2,935.8
239.4/
5,837.0
156,253.5
86,627.5
1,517.7
62,164.5
43,096.4

253.2528.18
27.12

229.7022.96
22.05

187.1920.62
19.75

177.5320.47
19.27

191.53
16.29
15.57

Capital Adequacy Ratio (BIS Standard) (Note 2)
Total Capital Ratio(International Standard (Basel III)) (Note 2)//

15.50%

15.30%

13.46%

14.36%

14.19%///

Tier 1 Capital Ratio(International Standard (Basel III)) (Note 2)

11.35%

11.03%///

Common Equity Tier 1 Capital Ratio(International Standard (Basel III)) (Note 2)

8.80%

8.16%

/

/

/

Net Return on Equity
PER (Times)

11.6%
7.23x

10.9%
8.66x

11.3%
6.54x

11.7%
6.74x

10.9%
11.35x(2,286.0)
10,607.4(305.7)

5,858.6(749.6)(283.8)4,163.0(6,175.6)(680.6)

6,051.5(1,667.4)
155.0

13,432.7(14,153.5)
231.8

Cash and Cash Equivalents at the end of the fiscal year 19,432.4

11,347.5

6,483.1

9,182.4

4,678.7

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

Notes: 1. “Net Assets per Share,” “Net Income per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement No.2)
and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002).
2. Capital Adequacy Ratio, Total Capital Ratio, Tier 1 Capital Ratio and Common Equity Tier 1 Capital Ratio are based on the “Standards for Determining the Status of Capital Adequacy inconsideration of assets held by a bank holding company and by its subsidiaries, in accordance with Banking Law Article 52-25” (Financial Services Agency Ordinance Announcement No.20,
March 27, 2006). Mizuho Financial Group, Inc. has applied the new framework(Basel III) starting the fiscal year ended March 31, 2013.

1—Financial Analysis

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

As of or for the Fiscal Years ended March 31,

2014

2013

Operating Income
¥
316.8
¥
262.1
Net Income
285.8
241.3
Common Stock and Preferred Stock2,254.9
2,254.9
Number of Shares Issued and Outstanding
Common Stock
24,263,885,187 shares 24,164,864,477 shares
Eleventh Series Class XI Preferred Stock914,752,000 shares
914,752,000 shares— shares36,690,000 shares
Thirteenth Series Class XIII Preferred Stock
Net Assets
4,900.4
4,788.9
Total Assets
6,251.3
6,202.1
188.90182.43
Net Assets per Share (Yen) (Note 1)
Dividends per Share (Yen) (Interim Dividends per Share) (Yen)Common Stock
6.5
6
Eleventh Series Class XI Preferred Stock20
20
Thirteenth Series Class XIII Preferred Stock (Note 3)—30
Common Stock3
3
Eleventh Series Class XI Preferred Stock10
10
Thirteenth Series Class XIII Preferred Stock (Note 3)
—
15
11.53
9.69
Net Income (Loss) per Share (Yen) (Note 1)
Diluted Net Income per Share (Yen) (Note 1) (Note 4)
11.25
9.46
17.68x20.53xPER (Times) (Note 4)
Dividend Propensity (Note 2)
56.33%
61.91%

2012

¥

37.7
10.2
2,254.9

2011

¥

46.4
18.5
2,181.3

2010

¥

33.7
3.3
1,805.5

24,048,165,727 shares
914,752,000 shares
36,690,000 shares
4,688.3
6,128.4
177.82

21,782,185,320 shares
914,752,000 shares
36,690,000 shares
4,652.8
6,035.1
192.32

15,494,397,690 shares
914,752,000 shares
36,690,000 shares
4,011.1
5,225.9
223.59

6
20
30
3
10
15
0.06
0.06
2,017.69x
8,967.54%

6
20
30
—
—
—
0.46
0.45
299.99x1,304.32%

8
20
30
—
—
—
(0.54)——x—%

Notes: 1. “Net Assets per Share,” “Net Income (Loss) per Share” and “Diluted Net Income per Share” are calculated in accordance with “Accounting Standard for Earnings per Share” (ASBJ Statement
No.2) and “Guidance for Accounting Standards for Net Earning per Share” (ASBJ Guidance No.4, September 25, 2002).
2. Dividend Propensity: Cash Dividends Declared per Share (Common Stock) / Net Income per Share (Common Stock). Dividend Propensity is not required to be disclosed due to loss position of
earnings per share for the fiscal year ended March 31, 2010.
3. As Mizuho Financial Group Inc. acquired and cancelled all of the Thirteenth Series Class XIII Preferred Stock as of July 11, 2013, the cash dividends per share of the Thirteenth Series Class XIII
Preferred Stock for fiscal 2013 are not recorded.
4. “Diluted Net Income per Share” and “PER” are not required to be disclosed due to loss position of earnings per share for the fiscal year ended March 31, 2010.

Financial Analysis—2

Financial Analysis

Financial and Economic Environment

Financial and Economic Environment
Reviewing the economic environment over the fiscal year ended March 31, 2014, the global economy continued to recover gradually although weakness in the recovery is seen in some regions. As for the future direction of the economy, continued recovery is
expected particularly in the major industrialized countries.
In the United States, there continues to be visible signs of recovery: production and employment improved in general, and consumption has been steady. As for the future direction of the economy, although the possible effects of the scaling back of monetary easing policy among other things should be noted, gradual recovery in the economy is expected to continue, together withthe reduction of downward pressure on the fiscal front.
In Europe, the economies of the region are on a recovery trend, with continued steady recovery in the U.K. and improved business conditions of companies in the Euro area. Although it is expected that the economies of the region, led by exports and production, will continue to follow a track to recovery, the effect of the unstable situation in Ukraine, as well as the consequence ofdebt problems and a high unemployment rate, needs continued and careful observation.
In Asia, although China's economy continues to expand in a stable manner, the growth rate is relatively low compared to recent
historic levels. As for the future direction of the economy, a possible slowdown was recognized as the expansion rate of investment in manufacturing and real estate decreased mainly due to adjustment pressures on capital assets, such as due to excess
capacity. The economies of the region as a whole were strong due to favorable results in exports with the continuing recovery inthe major industrialized countries. On the other hand, regarding the economies of other emerging countries, there are concernsof momentum being lost for the time being due to the effects of tight monetary policies in some regions, including those regions
outside Asia, against the backdrop of the depreciation of their currencies against other currencies and inflation concerns.
In Japan, the gradual economic recovery continued due to the improved export profitability following the depreciation of the
yen against other currencies. Increased consumer spending was seen due to a last minute rise in demand before the raising of theconsumption tax rate on April 1. As for the future direction of the economy, while the negative after-effects of the last minute
rise in demand before the tax increase may temporarily act as a drag on economic growth, the Japanese economy can be
expected to pick up in line with the gradual recovery of the global economy.

3—Financial Analysis

Trends in Interest Rates in Japan
(%)

(%)

1.60

0.40

Short-Term Prime Rate (left scale)
1.40
0.30

Long-Term Prime Rate (left scale)
1.20

1.00

Euroyen TIBOR (3-month) (right scale)

0.20

Newly Issued Government Bond Yield (10-Year) (left scale)
0.80
0.10
0.60

Call Rate (Uncollateralized overnight) (right scale)

0.40

Apr. 2013

July 2013

Oct. 2013

Jan. 2014

Apr. 2014

0.00

Trends in TOPIX and Yen / Dollar Exchange Rate
(Point)(Yen / Dollar)
115

1,400

110

1,300

TOPIX (left scale)
1,200

105

1,100

100

Yen / Dollar Exchange Rate (right scale)
1,000

95

900

90

800

Apr. 2013

July 2013

Oct. 2013

Jan. 2014

Apr. 201485

Financial Analysis—4

Financial Analysis

Results for the Fiscal Year ended March 31, 2014

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

As of March 31,

2014

2013

ChangeNumber of consolidated subsidiaries
Number of affiliates under the equity method

159
21

145
22

14
(1)

2014

2013

2. Consolidated Profits and Losses
Billions of yen

For the Fiscal Years ended March 31,

Consolidated Gross Profits
Net Interest Income
Fiduciary Income
Net Fee and Commission Income
Net Trading Income
Net Other Operating Income¥

General and Administrative Expenses
Expenses related to Portfolio Problems (including
Provision for (Reversal of) General Reserve for Possible Losses on Loans)

2,035.2
1,108.3
52.0
560.7
187.4
126.7

¥

2,171.7
1,075.8
48.5
507.3
215.0
324.8

Change¥(136.4))
32.4
3.5
53.3
(27.6)(198.1)

1,258.2

1,244.6

13.5

23.3

136.9

(113.6)

Reversal of Reserves for Possible Losses on Loans, etc.

136.2

25.1

111.0

Net Gains (Losses) related to Stocks

77.0(82.9)

159.9

Equity in Income from Investments in Affiliates

15.4(11.1)

26.6

Other

2.9

(3.3)

6.2

Income before Income Taxes and Minority Interests

985.3

717.8

267.5

Income Taxes–Current

137.0

50.4

86.6

Income Taxes–Deferred

77.9

7.4

70.4

Income before Minority Interests

770.3

659.9

110.4

Minority Interests in Net Income

81.9

99.4

(17.4)Net Income

¥

688.4

¥

560.5

¥

127.8

Net Income per Share of Common Stock (Yen)

¥

28.18

¥

22.96

¥

5.22

Credit-related Costs¥(112.8)

¥

111.8

¥

(224.7)(Reference) Consolidated Net Business Profits

¥

744.2

¥

912.1

¥

(167.8)Notes: 1. Credit-related Costs = Expenses related to Portfolio Problems (including Provision for (Reversal of) General Reserve for Possible Losses on Loans) + Reversal of Reserves for Possible Losses on
Loans, etc. + Credit Costs for Trust Accounts.
2. Consolidated Net Business Profits = Consolidated Gross Profits - General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates andcertain other consolidation adjustments.

5—Financial Analysis

Use and Source of Funds (Consolidated)
Billions of yen

Change2014

Interest
2013¥ 149,329.0
15,347.4
437.5
10,163.6¥ 139,812.7
6,377.5
547.7
8,666.8¥ 9,516.3
8,969.9(110.2)
1,496.7¥ 1,417.5
35.7
6.0
29.6

¥ 1,421.6
21.5
5.5
52.3

5,533.3
44,879.4
67,976.7

6,398.6
49,473.2
65,348.3(865.2)(4,593.8)
2,628.4

7.6
324.3
920.2

10.6
323.9
917.2

(2.9)
0.4
3.0

Source of Funds¥ 151,380.2
Deposits
101,216.4
Debentures—
Call Money and Bills Sold
6,027.6
Payables under Repurchase Agreements
18,511.6
Guarantee Deposits Received under Securities
Lending Transactions
7,429.3
Commercial Paper
644.7
Borrowed Money
9,828.4¥ 142,617.9
93,389.8—
5,970.6
15,204.5¥ 8,762.2
7,826.5—
57.0
3,307.0

345.7
129.1
—
7.8
53.6

¥ (36.4)
4.7
—
(0.1)
(25.7)

8,190.8
420.6
12,559.1(761.5)224.1(2,730.6)

9.8
1.8
26.5

19.0
1.6
29.7

(9.2)
0.1
(3.2)

For the Fiscal Years ended March 31,

2014

Yield
2013

ChangeUse of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted

0.94%
0.23
1.37
0.29

1.01%
0.33
1.01
0.60

(0.06)%(0.10)
0.36(0.31)

0.13
0.72
1.35

0.16
0.65
1.40

(0.02)
0.06(0.04)

Source of Funds
Deposits
Debentures
Call Money and Bills Sold
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities
Lending Transactions
Commercial Paper
Borrowed Money

0.20%
0.13
—
0.12
0.15

0.24%
0.13
—
0.13
0.35

(0.03)%(0.00)—.
(0.00)(0.20)

0.13
0.28
0.26

0.23
0.39
0.23

(0.10)(0.11)
0.03

For the Fiscal Years ended March 31,

Use of Funds
Due from Banks
Call Loans and Bills Purchased
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities
Borrowing Transactions
Securities
Loans and Bills Discounted

Average balance
2014
2013

¥

309.2
133.8
—
7.7
27.9

¥

Change

¥

(4.0)
14.2
0.4
(22.7)%

Financial Analysis—6

Financial Analysis

Results for the Fiscal Year ended March 31, 2014

Net Fee and Commission Income (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2014

2013

Change¥ 560.7¥ 507.3¥ 53.3

Fee and Commission Income
Deposits, Debentures and Lending Business
Securities-related Business
Remittance Business
Trust-related BusinessAgency Business
Guarantee Business
Safe Custody and Safety Deposit Box Business¥ 682.4
168.0
171.3
108.7
46.0
28.9
28.4
5.5

¥ 617.6
160.1
134.3
105.1
43.5
27.4
26.4
5.6

¥ 64.7
7.8
36.9
3.5
2.5
1.4
2.0
(0.1)

Fee and Commission Expenses
Remittance Business¥ 121.6
39.8¥ 110.3
39.0¥ 11.3
0.7

Net Fee and Commission Income

7—Financial Analysis

3. Consolidated Assets, Liabilities and Net Assets
Billions of yen

As of March 31,

2014

2013

ChangeTotal Assets
Cash and Due from Banks
Trading Assets
Securities
Loans and Bills Discounted¥ 175,822.8
20,610.2
11,469.8
43,997.5
69,301.4¥ 177,411.0
12,333.9
14,076.9
53,472.3
67,536.8¥ (1,588.1)
8,276.2(2,607.1)(9,474.8)
1,764.5

Total Liabilities
Deposits
Call Money and Bills Sold

167,518.3
101,811.2
7,194.4

169,674.8
99,568.7
6,126.4(2,156.4)
2,242.5
1,068.0

Net Assets
Shareholders' Equity
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights
Minority Interests¥

8,304.5
5,676.2781.0
3.1
1,844.0¥

7,736.2
5,174.6752.5
2.6
1,806.4¥

568.3)
501.6
28.5
0.4
37.6

Fair Value of Other Securities (Consolidated)
Billions of yen

As of March 31, 2014

Acquisition cost

Fair value

Other Securities *1
Japanese Stocks
Japanese Bonds
Other¥ 39,084.8
2,003.8
25,063.1
12,017.8¥ 40,212.5
3,110.8
25,094.5
12,007.1

LossesNet unrealized*2
gains (losses)¥ 347.8)
90.8
16.7
240.2

¥ 1,127.6
1,106.9
31.3(10.6)

Gross unrealized
Gains¥ 1,475.5
1,197.8
48.1
229.5

Billions of yen

As of March 31, 2013

Acquisition cost

Fair value

Other Securities *1
Japanese Stocks
Japanese Bonds
Other¥ 49,627.0
2,065.9
33,929.7
13,631.3¥ 50,508.5
2,776.0
34,043.2
13,689.2

Gross unrealized
Gains¥ 1,148.9
843.2
134.2
171.4

Losses¥ 267.4)
133.1
20.7
113.5

Net unrealized*2
gains (losses)

¥

881.4
710.0
113.4
57.8
Billions of yen

ChangeOther Securities
Japanese Stocks
Japanese Bonds
Other

Acquisition cost

Fair value¥ (10,542.2)(62.1)(8,866.6)(1,613.4)¥ (10,295.9)
334.7(8,948.7)(1,682.0)¥

Gross unrealized
Gains

Losses326.6)
354.6(86.1)
58.1

80.3(42.3)
(4.0)
126.7

¥

Net unrealized
gains (losses)

¥

246.2
396.9
(82.1)(68.5)

Notes: 1. In addition to the balances shown in the above table, Other Securities excludes securities which do not have readily determinable fair values.
2. Net unrealized gains (losses) include ¥37.4 billion and ¥3.3 billion, which were recognized in the statements of income for the fiscal years ended March 31, 2014 and 2013, respectively, byapplying the fair-value hedge method. As a result, the base amount to be recorded directly to Net Assets after tax and consolidation adjustments as of March 31, 2014 and 2013 were ¥1,090.2
billion and ¥878.1 billion, respectively.

Financial Analysis—8

Financial Analysis

Results for the Fiscal Year ended March 31, 2014

(Reference)
Unrealized Gains (Losses) on Other Securities (the base amount to be recorded directly to Net Assets after tax and consolidation adjustments)
For certain Other Securities (which have readily determinable fair values), unrealized gains (losses) were recognized in the statement of income by applying the fair-value hedge method. They were excluded from unrealized gains (losses) on Other Securities.
These adjusted unrealized gains (losses) were the base amount, which was to be recorded directly to Net Assets after tax and consolidation adjustments.
The base amount was as follows:
Billions of yen

As of March 31,

2014

Other Securities
Japanese Stocks
Japanese Bonds
Other¥ 1,090.2
1,108.2
31.3(49.3)¥

2013

Change

878.1
710.1
113.4
54.4

¥ 212.1)
398.0(82.1)(103.7)

Consolidated Total Capital Ratio (International Standard (Basel III))%, Billions of yen

As of March 31,

2014

2013

Consolidated Total Capital Ratio
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio

14.36%
11.35%
8.80%

14.19%
11.03%
8.16%

Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital¥

Risk weighted Assets¥ 60,274.0

9—Financial Analysis

8,655.9
6,844.7
5,304.4¥

8,344.5
6,486.0
4,802.4¥ 58,790.6

Change

0.17%
0.32%
0.64%
¥

311.4
358.6
501.9

¥ 1,483.4

Financial Analysis

Status of Asset Quality

 Disposal of Non-performing Loans (NPLs) in the Fiscal Year ended March 31, 2014
Credit-related Costs in the aggregated figures of MHBK and MHTB (the Two Banks) decreased by ¥230.8 billion from the end of
the previous fiscal year to a net reversal of ¥116.6 billion. Consolidated Credit-related Costs decreased by ¥224.7 billion from theend of the previous fiscal year to ¥112.8 billion. This was primarily due to improvement of customer's categorization achieved
through our efforts to support revitalization of customer companies.

 Outstanding Balance of NPLs
Status of Disclosed Claims
The Two Banks' aggregated figures of Disclosed Claims under the Financial Reconstruction Law (FRL) decreased by ¥341.8 billion
from the end of the previous fiscal year to ¥951.4 billion.
Of the total, Claims against Bankrupt and Substantially Bankrupt Obligors and equivalent, and Claims with Collection Risk
decreased by ¥173.1 billion to ¥539.2 billion.
At the same time, Claims for Special Attention decreased by ¥168.7 billion from the end of the previous fiscal year to¥412.1 billion.
NPL Ratio
The aggregated NPL ratio for the Two Banks as of the end of March 2014 decreased by 0.49 points from the end of theprevious fiscal year to 1.21%.
* Trust account denotes trust accounts with contracts indemnifying the principal amounts, excluding outstanding loan balance byIndustry and by nationality of borrowers.

 Activities in Removal of NPLs from the Balance SheetWith respect to removal of NPLs from the balance sheet, our specialist unit maintains central control and pursues corporate revitalization and debt-collecting efforts.
In particular, we consider support for corporate revitalization to be an important mission as a financial institution. We are doing
our utmost to provide such support including verification of business plans of corporations tackling revitalization, provision ofadvice pertaining to reconstruction measures and utilization of corporate revitalization schemes including transfer of business andM&A. These efforts have achieved steady results.
In addition, we strive to realize efficient and expeditious final disposals of NPLs through bulk sales and activities of Mizuho
Servicing Co., Ltd., a servicer of the group.

Results of Removal of NPLs from the Balance Sheet
The Two Banks removed ¥321.8 billion in NPLs in fiscal 2013.
The group will steadily proceed with removal of NPLs from the perspective of improvement of asset quality.

Financial Analysis—10

Financial Analysis

Status of Asset Quality

 Credit-Related Costs
Credit-Related Costs (Consolidated)
Billions of yen

For the Fiscal Years ended March 31,

2014

Credit-related Costs
Expenses related to Portfolio Problems (including Provisionfor (Reversal of) General Reserve for Possible Losses on Loans)
Losses on Write-offs of Loans
Reversal of Reserves for Possible Losses on Loans, etc.
Credit Costs for Trust Accounts

¥

2013

Change111.8¥ (224.7)

23.3

136.9

(113.6)22.4(136.2)—

49.7(25.1)—(27.3)(111.0)—(112.8)¥ Overview of NPLs as of March 31, 2014 (the Two Banks) (Banking Accounts)
Billions of yen

1. Self-Assessment
Category III

Category IV

2. Disclosed Claims
under the FRL

3. Non-Accrual, Past
Due & Restructured
Loans

Collateral, Guarantees, etc.:
66.2
Reserves for Possible Losses:
1.0

Reserve
Ratio
100%

DirectWrite-offs

Claims against Bankrupt
and Substantially Bankrupt
Obligors
67.2

Loans to Bankrupt Obligors
9.2

395.2

73.7

Collateral, Guarantees, etc.:
222.3
Reserves for Possible Losses:
172.9

Reserve
Ratio
70.1%

Categorization

NonCategory II
Categorization

Bankrupt and Substantially
Bankrupt Obligors
67.2

Obligor

67.2

Watch Obligors

Intensive Control
Obligors
468.9

Claims for Special
Attention
412.1

Reserve Ratio against
Uncovered Portion
24.2%
Collateral, Guarantees, etc.:
162.9
Reserves for Possible Losses:
60.3

Coverage Ratio 100%

Amounts forreserves arerecorded under
Non-Categorization

Claims against Special
Attention Obligors·Coverage Ratio: 57.4%·Reserve Ratiofor Uncovered Portion: 27.9%·Reserve Ratio
against Entire Claim: 16.5%

Claims with Collection Risk
468.9

Non-Accrual
Delinquent Loans
485.4

Coverage Ratio 84.2%
41.5 (Note 2)

Claims for Special
Attention (Note 1)
412.1
Coverage Ratio 54.1%

Loans Past Due forThree Months or More
4.1
Restructured Loans
408.0

Special Attention Obligors
Other Watch Obligors
Normal Obligors

Total
78,466.4

Reserve Ratio
against Total Claims·Other Watch Obligors: 6.34%·Normal Obligors: 0.10%

Total Coverage
Ratio 72.4%

Total
948.3

Total
906.8

Notes: 1. Claims for Special Attention is denoted on an individual loans basis. Claims against Special Attention Obligors includes all claims, not limited to claims for Special Attention.
2. The difference between total Non-Accrual, Past Due & Restructured Loans and total Disclosed Claims under the FRL represents the amount of claims other than loans included in Disclosed Claims
under the FRL.

11—Financial Analysis

 Status of Disclosed Claims under the FRL
Disclosed Claims under the FRL (Consolidated)(Consolidated)
Billions of yen

As of March 31,

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

2014

¥

80.2
484.9
508.7

2013

¥

Change

175.4
563.7
698.2

¥

(95.2)(78.7)(189.5)¥ 1,073.9¥ 1,437.4¥(363.5)

2014

2013

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

¥

194.5

¥

269.7

Change¥(75.2)))(Trust Accounts)
Billions of yen

As of March 31,

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

2014

2013

Change

¥

—
3.0
—

¥

—
3.0
—

¥

—
(0.0)
—

¥

3.0

¥

3.0

¥

(0.0))(Consolidated and Trust Accounts)
Billions of yen

As of March 31,

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

2014

¥

80.2
488.0
508.7

¥ 1,076.9

2013¥

Change

175.4
566.8
698.2

¥

(95.2)(78.7)(189.5)¥ 1,440.5¥(363.5)

Financial Analysis—12

Financial Analysis

Status of Asset Quality

 Status of Non-Accrual, Past Due & Restructured Loans (Consolidated)(Consolidated)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2014

¥

12.1
508.0
4.1
504.6

2013

¥

Change

33.6
637.9
3.4
694.7

¥

(21.4)(129.9)0.6(190.1)¥ 1,028.9¥ 1,369.8¥(340.8)

2014

2013

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

¥

166.7

¥

232.7

Change¥(65.9)

Ratio to Total Loans%

As of March 31,

2014

2013

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.01%
0.73
0.00
0.72

0.04%
0.94
0.00
1.02

(0.03)%(0.21)
0.00(0.30)

1.48%

2.02%

(0.54)%

2014

2013

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Reserves for Possible Losses on Loans
Billions of yen

As of March 31,

Reserves for Possible Losses on Loans
General Reserve for Possible Losses on Loans
Specific Reserve for Possible Losses on Loans
Reserve for Possible Losses on Loans to Restructuring Countries

¥

616.3
398.7
216.7
0.7

¥

739.9
503.0
235.9
1.0

Change¥(123.6)(104.2)(19.1)(0.2)

Note: Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.
Billions of yen

2014

Amount of Partial Direct Write-offs

¥

195.1

2013

¥

270.3

Change¥(75.2)

Reserve Ratios for Non-Accrual, Past Due & Restructured Loans%

As of March 31,

2014

2013

ChangeAfter Partial Direct Write-offs

59.89%

54.02%

5.87%

Note: Reserve Ratio = Reserves for Possible Losses on Loans / Total Non-Accrual, Past Due & Restructured Loans.

13—Financial Analysis

(Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

2014

2013

Change

¥

—
3.0
—
—

¥

—
3.0
—
—

¥

—
(0.0)
—
—

¥

3.0

¥

3.0

¥

(0.0)

Ratio to Total Loans%

As of March 31,

2014

2013

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

.—%
17.38
.—.
.—

.—%
16.01
.—.
.—

.—%
1.37
.—
.—

17.38%

16.01%

1.37%

2014

2013

Change

33.6
640.9
3.4
694.7

¥ (21.4)(129.9)0.6(190.1)¥ 1,031.9¥ 1,372.8¥ (340.9)

As of March 31,

2014

2013

ChangeLoans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans

0.01%
0.73
0.00
0.72

0.04%
0.94
0.00
1.02

(0.03)%(0.21)
0.00(0.30)

1.48%

2.03%

(0.54)%

Non-Accrual, Past Due & Restructured Loans / Total Loans(Consolidated and Trust Accounts)
Non-Accrual, Past Due & Restructured Loans
Billions of yen

As of March 31,

Loans to Bankrupt Obligors
Non-Accrual Delinquent Loans
Loans Past Due for Three Months or More
Restructured Loans
Total

¥

12.1
511.0
4.1
504.6

¥

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

Ratio to Total Loans%

Non-Accrual, Past Due & Restructured Loans / Total Loans
Note: Above figures are presented net of partial direct write-offs.

Financial Analysis—14

Financial Analysis

Status of Asset Quality

 Status of Loans by Industry
Outstanding Balances by Industry (Consolidated)
Billions of yen, %As of March 31,

2014
Outstanding
Balance Composition

2013
Outstanding
Balance Composition

ChangeOutstanding
Balance Composition

Domestic Total (excluding Loans Booked Offshore) ¥ 53,447.2
Manufacturing
7,620.7
Agriculture & Forestry
36.8
Fishery
2.0
Mining, Quarryng Industry & Gravel Extraction Industry
239.9
Construction
757.1
Utilities
2,397.0
Communication
1,218.0
Transportation & Postal Industry
2,467.4
Wholesale & Retail
4,791.3
Finance & Insurance
3,604.9
Real Estate
6,312.5
Commodity Lease
1,536.7
Service Industries
2,419.6
Local Governments
1,112.7
Governments
5,619.6
Other
13,310.3

100.00%
14.26
0.07
0.00
0.45
1.42
4.48
2.28
4.62
8.96
6.75
11.81
2.88
4.53
2.08
10.51
24.90

¥ 54,919.1
7,675.7
34.9
2.1
216.0
812.3
2,128.1
980.0
2,628.8
4,838.2
5,008.7
6,539.2
1,562.2
2,408.7
1,214.4
5,688.4
13,180.7

100.00%
13.98
0.06
0.00
0.39
1.48
3.88
1.78
4.79
8.81
9.12
11.91
2.84
4.39
2.21
10.36
24.00

¥ (1,471.8)(55.0)
1.8
(0.1)
23.8
(55.2)
268.8
238.0(161.3)(46.8)(1,403.7)(226.7)(25.5)
10.8(101.6)(68.7)
129.5/0.28)%
0.01
0.00
0.06
(0.06)
0.60
0.50(0.17)
0.15(2.37)(0.10)
0.04
0.14(0.13)
0.15
0.90

Overseas Total (including Loans Booked Offshore)
Governments
Financial Institutions
Other

15,854.1
522.0
4,095.8
11,236.2

100.00
3.29
25.84
70.87

12,617.7349.7
3,655.8
8,612.1

100.00
2.77
28.97
68.26

3,236.4
172.3
440.0
2,624.0/
0.52(3.13)
2.61¥ 69,301.4/¥ 67,536.8/¥ 1,764.5

/

Total

Note: Domestic Total = MHFG and its domestic consolidated subsidiaries (excluding their overseas offices).
Overseas Total = Overseas offices of MHFG's domestic consolidated subsidiaries and MHFG's overseas consolidated subsidiaries.

15—Financial Analysis

 Status of Loans by Nationality of Borrowers
Balance of Loans to Restructuring Countries (Consolidated)
As of March 31, 2014

Billions of yen, %As of March 31, 2013

Billions of yen, %Egypt
Venezuela
Argentina
Ecuador

¥

5.0
0.3
0.0
0.0

Egypt
Argentina
Jamaica
Ecuador

¥

6.7
0.0
0.0
0.0

Total
Ratio to Total Assets

¥

5.3
0.00%

Total
Ratio to Total Assets

¥

6.7
0.00%

Note: Listed are loans to the government and related agents in restructuring countries for which Reserves for Possible Losses on Loans to Restructuring Countries are accounted as stipulated under theJapanese Institute of Certified Public Accountants (JICPA) Banking Audit Committee Report No.4.

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

As of March As of March As of March As of March
31, 2011
31, 2012 31, 2013 (a) 31, 2014 (b)Amount Categorized as below
up to Fiscal 2010

¥ 784.6of which the amount in the processof being removed from the balance sheet

177.3

Amount Newly Categorized as below
during Fiscal 2011of which the amount in the processof being removed from the balance sheet¥ 440.6 ¥ 319.4
43.5

28.0

(15.5)

237.9

119.6

57.2

(62.4)

42.0

25.8

6.4

(19.4)

273.3

128.6

(144.7)25.1

8.4(16.7)

148.7

148.7

18.5

18.5

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

Amount Newly Categorized as below
during Fiscal 2013of which the amount in the processof being removed from the balance sheetof which the amount in the processof being removed from the balance sheet¥ 784.6
177.3¥ 204.7 ¥(114.6)

71.6

Amount Newly Categorized as below
during Fiscal 2012

Total

Change(b)-(a)¥ 678.6 ¥ 712.4
113.6

94.5

¥ 539.3 ¥(173.1)
61.4(33.0)

Financial Analysis—16

Financial Analysis

Status of Asset Quality

Breakdown of Reasons for Removal from the Balance Sheet(the Two Banks) (Banking Accounts and Trust Accounts)
Billions of yen

Amount Removed
from BS in Fiscal 2013

Liquidation¥

Restructuring(54.5)(1.7)

Improvement in Business Performancedue to Restructuring(2.1)

Loan Sales(62.8)

Direct Write-off

67.5

Other
Debt Recovery
Improvement in Business Performance
Total

17—Financial Analysis(268.0)(157.7)(110.3)¥(321.8)Financial Data of Mizuho Financial Group, Inc.
[Under Japanese GAAP]
Independent Auditors' Report

1

Consolidated Financial Statements

2

Notes to Consolidated Financial Statements

13

Financial Data of Mizuho Financial Group, Inc.

Independent Auditors’ Report

The Board of Directors
Mizuho Financial Group, Inc.
We have audited the accompanying consolidated financial statements of Mizuho Financial Group, Inc., which comprise the consolidated balance sheet as of March 31, 2014, and the consolidated statements of income, comprehensive income, changes in
net assets, and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information, all expressed in Japanese yen.
Management's Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for designing and operating such internal control as management
determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit of the consolidated
financial statements is not to express an opinion on the effectiveness of the entity's internal control, but in making these risk
assessments the auditor considers internal controls relevant to the entity's preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Mizuho Financial Group, Inc. as of March 31, 2014, and their consolidated financial performance and cash
flows for the year then ended in conformity with accounting principles generally accepted in Japan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars, presented for the convenience ofreaders, and, in our opinion, the accompanying consolidated financial statements have been properly translated on the basis
described in Note 1.

June 23, 2014
Tokyo, Japan

1—Financial Data of Mizuho Financial Group, Inc.

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheet
Millions of yen
2014

As of March 31,

AssetsCash and Due from Banks (Notes 16, 38, 40 and 41)
Call Loans and Bills Purchased (Note 40)
Receivables under Resale Agreements (Note 40)
Guarantee Deposits Paid under Securities Borrowing Transactions(Note 40)
Other Debt Purchased (Notes 40 and 41)
Trading Assets (Notes 9, 16, 40 and 41)
Money Held in Trust (Notes 40 and 41)
Securities (Notes 10, 16, 25, 40 and 41)
Loans and Bills Discounted (Notes 11, 16 and 40)
Foreign Exchange Assets (Note 12)
Derivatives other than for Trading Assets (Notes 40 and 42)
Other Assets (Notes 13, 16 and 41)
Tangible Fixed Assets (Notes 14, 27 and 39)
Intangible Fixed Assets (Note 39)
Net Defined Benefit Asset (Note 24)
Deferred Tax Assets (Note 26)
Customers' Liabilities for Acceptances and Guarantees (Note 25)
Reserves for Possible Losses on Loans (Notes 15 and 40)
Reserve for Possible Losses on Investments
Total Assets¥

20,610,276
467,758
8,349,528¥

2013

12,333,997
530,541
9,025,049

Thousands of
U.S. dollars (Note 1)
2014$

200,255,313
4,544,878
81,126,398

5,010,740
3,263,057
11,469,811
168,369
43,997,517
69,301,405
1,576,167
2,820,468
2,840,720
925,266
531,501
413,073
104,909
4,588,646(616,307)(27)

5,543,914
1,279,964
14,076,928
96,01453,472,399
67,536,882
1,412,601
4,475,055
2,599,553
901,085
477,546—
165,299
4,224,259(739,990)(40)

48,685,779
31,704,799
111,443,948
1,635,928
427,492,401
673,352,171
15,314,488
27,404,472
27,601,250
8,990,148
5,164,220
4,013,543
1,019,333
44,584,599(5,988,222)(269)¥ 175,822,885¥ 177,411,062$ 1,708,345,177

Financial Data of Mizuho Financial Group, Inc.—2

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Balance Sheetー(Continued)
Millions of yen
2014

As of March 31,

Liabilities and Net Assets
Liabilities
Deposits (Notes 16, 17 and 40)¥ 101,811,282
Call Money and Bills Sold (Notes 16, 18 and 40)
7,194,432
Payables under Repurchase Agreements (Notes 16 and 40)
16,797,803
Guarantee Deposits Received under Securities Lending
Transactions (Notes 16 and 40)
6,085,331
Commercial Paper (Note 19)
677,459
Trading Liabilities (Notes 9 and 40)
8,183,037
Borrowed Money (Notes 16, 20 and 40)
7,838,357
Foreign Exchange Liabilities (Note 12)323,327
Short-term Bonds (Note 21)584,568
Bonds and Notes (Notes 22 and 40)
5,245,743
Due to Trust Accounts
1,300,655
Derivatives other than for Trading Liabilities (Notes 40 and 42)
3,004,497
Other Liabilities (Note 23)
3,570,902
Reserve for Bonus Payments
52,641
Reserve for Employee Retirement Benefits (Note 24)—
Net Defined Benefit Liability (Note 24)
46,006
Reserve for Director and Corporate Auditor Retirement Benefits
1,547
Reserve for Possible Losses on Sales of Loans
1,259
Reserve for Contingencies
6,309
Reserve for Reimbursement of Deposits
16,451
Reserve for Reimbursement of Debentures
54,956
Reserves under Special Laws
1,273
Deferred Tax Liabilities (Note 26)
50,783
Deferred Tax Liabilities for Revaluation Reserve for Land (Note 27)
81,060Acceptances and Guarantees (Note 25)
4,588,646

Thousands of
U.S. dollars (Note 1)
2013¥ 99,568,737
6,126,424
17,451,041

2014

$

989,227,383
69,903,156
163,212,242

11,325,439
472,718
7,686,442
7,699,440
182,473
477,400
5,141,746
1,120,696
4,404,754
3,501,064
45,754
38,632—
1,612
48
16,85916,46435,417
1,203
54,221
81,9774,224,259

59,126,817
6,582,391
79,508,716
76,159,715
3,141,545
5,679,830
50,969,136
12,637,537
29,192,549
34,695,906
511,483—
447,011
15,034
12,23461,301
159,849
533,974
12,372
493,431787,60344,584,599

Total Liabilities
Net Assets
Common Stock and Preferred Stock (Note 28)
Capital Surplus
Retained Earnings
Treasury Stock (Note 28)¥ 167,518,336¥ 169,674,832$ 1,627,655,814

¥

¥

$

Total Shareholders' Equity
Net Unrealized Gains (Losses) on Other Securities (Note 41)
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land (Note 27)
Foreign Currency Translation Adjustments
Remeasurements of Defined Benefit Plans (Note 24)
Total Accumulated Other Comprehensive Income
Stock Acquisition Rights (Note 29)
Minority Interests
Total Net Assets
Total Liabilities and Net Assets

5,676,215
733,522(6,677)140,745(63,513)(22,979)
781,096
3,179
1,844,057
8,304,549¥ 175,822,885

2,254,972
1,109,508
2,315,608(3,874)

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

3—Financial Data of Mizuho Financial Group, Inc.

2,254,972
1,109,508
1,814,782(4,661)

5,174,601
615,883
84,634
142,345(90,329)—752,533
2,687
1,806,407
7,736,230¥ 177,411,062

21,909,958
10,780,300
22,499,111(37,642)

55,151,727
7,127,109(64,881)
1,367,519(617,116)(223,278)
7,589,353
30,897
17,917,386
80,689,363$ 1,708,345,177

Consolidated Statement of Income

2013

Thousands of
U.S. dollars (Note 1)2014¥ 1,417,569
52,014682,400
189,020
255,422344,275¥ 1,421,609
48,506617,681
215,033
413,157
198,063$ 13,773,513
505,387
6,630,396
1,836,573
2,481,754
3,345,079

2,940,702

2,914,053

28,572,702

309,266
121,631
1,598
128,647
1,258,227
135,962

345,710
110,303―88,2581,244,647
407,299

3,004,924
1,181,810
15,536
1,249,981
12,225,293
1,321,053

1,955,335
985,366

2,196,220
717,832

18,998,597
9,574,105

142,639(5,629)77,960214,970
770,396
81,98064,559(14,158)
7,461
57,862659,970
99,454

1,385,930(54,697)
757,485
2,088,718
7,485,387
796,550

Millions of yen
2014

For the Fiscal Years ended March 31,

IncomeInterest Income (Note 30)
Fiduciary Income
Fee and Commission Income
Trading Income (Note 31)
Other Operating Income (Note 32)
Other Income (Note 34)
Total Income
Expenses
Interest Expenses (Note 30)
Fee and Commission Expenses
Trading Expenses (Note 31)
Other Operating Expenses (Note 33)
General and Administrative Expenses (Note 29)
Other Expenses (Note 35)
Total Expenses
Income before Income Taxes and Minority Interests
Income Taxes:
Current
Refund of Income Taxes
Deferred
Total Income Taxes
Income before Minority Interests
Minority Interests in Net Income
Net Income¥

688,415¥

560,516$

6,688,837

Financial Data of Mizuho Financial Group, Inc.—4

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Per Share of Common Stock
Yen
2014

As of March 31,

Net Income:
Basic
DilutedCash Dividends

¥

2013

28.18
27.12
6.50

¥

U.S. dollars (Note 1)
2014

22.96
22.05
6.00

$

0.27
0.26
0.06

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Consolidated Statement of Comprehensive Income
Millions of yen
2014

For the Fiscal Years ended March 31,

Income before Minority Interests
Other Comprehensive Income(Note 36):
Net Unrealized Gains (Losses) on Other Securities
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land
Foreign Currency Translation Adjustments
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method
Comprehensive Income
Comprehensive Income Attributable to Owners of the Parent:
Comprehensive Income Attributable to Minority Interests:¥¥¥

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

5—Financial Data of Mizuho Financial Group, Inc.

770,396
62,531135,024(91,618)
3
15,9793,142
832,927
741,562
91,365

¥

¥
¥

2013

659,970
610,839
575,930
17,353(41)
4,731
12,864
1,270,809
1,168,611
102,198

Thousands of
U.S. dollars (Note 1)
2014

$

$
$

7,485,388
607,570
1,311,932(890,195)39
155,264
30,5308,092,958
7,205,228
887,730

Consolidated Statement of Changes in Net Assets
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2014

Balance as of the beginningof the period

CommonStock andPreferred
Stock

Retained
Earnings

Total
Treasury
Shareholders'
Stock
Equity¥ 2,254,972 ¥ 1,109,508 ¥ 1,814,782¥ (4,661) ¥ 5,174,601(152,265)(152,265)

688,415

688,415

CapitalSurplus

Changes during the period
Cash Dividends
Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries(37,387)(37,387)

(31)

1,177

1,145

(36,997)

36,997

－

1,604

1,604

(3)

(3)

104

104

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod－－500,826¥ 2,254,972 ¥ 1,109,508 ¥ 2,315,608

787

501,614¥ (3,874) ¥ 5,676,215

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—6

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2014

Net
Unrealized
Gains(Losses) on
Other
Securities

Balance as of the beginning¥ 615,883 ¥of the period

Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

84,634 ¥142,345

Foreign
Currency
Translation
Adjustments

Remeasure-ments ofDefinedBenefitPlans¥ (90,329)¥

－

Total
Accumulated
Other
Comprehensiv
e Income

Stock
Acquisition
Rights¥ 752,533 ¥Minority
Interests

Total
Net Assets

2,687 ¥ 1,806,407 ¥ 7,736,230

Changes during the period(152,265)

Cash Dividends

688,415Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land(37,387)
1,145
－
1,604

Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(3)
104

117,638(91,311)(1,600)26,816(22,979)

28,562492

37,64966,705

117,638(91,311)(1,600)26,816(22,979)

28,562492

37,649568,319¥ 733,522 ¥(6,677) ¥ 140,745 ¥(63,513) ¥ (22,979)

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

7—Financial Data of Mizuho Financial Group, Inc.

¥ 781,096 ¥3,179 ¥ 1,844,057 ¥ 8,304,549

Consolidated Statement of Changes in Net Assetsー(Continued)
Millions of yen
Shareholders' Equity

For the Fiscal Year ended
March 31, 2013

Balance as of the beginningof the period

CommonStock andPreferred
Stock

Retained
Earnings

Total
Treasury
Shareholders'
Stock
Equity¥2,254,972 ¥1,109,783 ¥1,405,066¥ (7,074) ¥4,762,749(152,694)(152,694)

560,516

560,516

CapitalSurplus

Changes during the period
Cash Dividends
Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land

(275)

(355)

(395)

(395)

2,807

2,176

2,249

2,249

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod－(275)

409,715¥2,254,972 ¥1,109,508 ¥1,814,782

2,412

411,852¥ (4,661) ¥5,174,601

Millions of yen
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2013

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities¥

37,857 ¥Deferred
Gains or
Losses on
Hedges

Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefitPlans

67,045 ¥ 144,635 ¥ (102,850) ¥

－

Total
Accumulated
Other
Comprehensiv
e Income

Stock
Acquisition
Rights¥ 146,687 ¥Minority
Interests

Total
Net Assets

2,158 ¥1,957,699 ¥6,869,295

Changes during the period(152,694)

Cash Dividends

560,516Net Income
Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod

(395)
2,176
2,249
578,026

17,588(2,290)12,520－605,845528(151,292)

455,082

578,026

17,588(2,290)12,520－605,845528(151,292)

866,934－¥ 752,533 ¥¥ 615,883 ¥

84,634 ¥ 142,345 ¥ (90,329) ¥2,687 ¥1,806,407 ¥7,736,230

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—8

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Shareholders' Equity

For the Fiscal Year ended
March 31, 2014

Balance as of the beginningof the period

CommonStock andPreferred
Stock

CapitalSurplusRetained
Earnings$ 21,909,958 $ 10,780,300 $ 17,632,940 $Total
Treasury
Shareholders'
Stock
Equity(45,297) $ 50,277,901

Changes during the period
Cash Dividends(1,479,452)(1,479,452)

Net Income

6,688,838

6,688,838

Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries(363,263)(363,263)(306)

11,439

11,133(359,479)

359,479－

15,59015,590

(37)

(37)

1,017

1,017

Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod－－4,866,171$ 21,909,958 $ 10,780,300 $ 22,499,111 $

7,655

4,873,826(37,642) $ 55,151,727

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

9—Financial Data of Mizuho Financial Group, Inc.

Consolidated Statement of Changes in Net Assetsー(Continued)
Thousands of U.S. dollars (Note 1)
Accumulated Other Comprehensive Income

For the Fiscal Year ended
March 31, 2014

Balance as of the beginningof the period

Net
Unrealized
Gains(Losses) on
Other
Securities

Deferred
Gains or
Losses on
Hedges$ 5,984,101$ 822,330 $ 1,383,070 $ (877,671) $Revaluation
Reserve forLand

Foreign
Currency
Translation
Adjustments

Remeasurements ofDefinedBenefit
Plans

－

Total
Accumulated
Other
Comprehensiv
e Income$ 7,311,830 $StockAcquisition
RightsMinority
Interests

Total
Net Assets

26,111 $ 17,551,569 $ 75,167,411

Changes during the period
Cash Dividends(1,479,452)

Net Income

6,688,838

Repurchase of Treasury
Stock
Disposition of Treasury
Stock
Cancellation of Treasury
Stock
Transfer from Revaluation
Reserve for Land
Change of scope of
consolidation
Increase in Retained
Earnings due to change ofaccounting period ofsubsidiaries
Net Changes in Items otherthan Shareholders' Equity
Total Changes during theperiodBalance as of the end of theperiod(363,263)
11,133－
15,590(37)
1,017

1,143,008(887,211)(15,551)

260,555(223,278)

277,523

4,786

365,817648,126

1,143,008(887,211)(15,551)

260,555(223,278)

277,523

4,786

365,817

5,521,952$ 7,127,109$ (64,881) $ 1,367,519 $ (617,116) $ (223,278)$ 7,589,353 $

30,897 $ 17,917,386 $ 80,689,363

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—10

Financial Data of Mizuho Financial Group, Inc.

Consolidated Financial Statements

Consolidated Statement of Cash Flows

For the Fiscal Years ended March 31,

Cash Flow from Operating Activities
Income before Income Taxes and Minority Interests
Depreciation
Losses on Impairment of Fixed Assets
Amortization of Goodwill
Gains on Negative Goodwill Incurred
Equity in Loss (Gain) from Investments in Affiliates
Increase (Decrease) in Reserves for Possible Losses on Loans
Increase (Decrease) in Reserve for Possible Losses on
Investments
Increase (Decrease) in Reserve for Possible Losses on Sales of
Loans
Increase (Decrease) in Reserve for Contingencies
Increase (Decrease) in Reserve for Bonus Payments
Increase (Decrease) in Reserve for Employee Retirement
Benefits
Increase (Decrease) in Net Defined Benefit Asset
Increase (Decrease) in Net Defined Benefit Liability
Increase (Decrease) in Reserve for Director and Corporate
Auditor Retirement Benefits
Increase (Decrease) in Reserve for Reimbursement of Deposits
Increase (Decrease) in Reserve for Reimbursement ofDebentures
Interest Income—accrual basis
Interest Expenses—accrual basis
Losses (Gains) on Securities
Losses (Gains) on Money Held in Trust
Foreign Exchange Losses (Gains)—net
Losses (Gains) on Disposition of Fixed Assets
Decrease (Increase) in Trading Assets
Increase (Decrease) in Trading Liabilities
Decrease (Increase) in Derivatives other than for Trading Assets
Increase (Decrease) in Derivatives other than for Trading
Liabilities
Decrease (Increase) in Loans and Bills Discounted
Increase (Decrease) in Deposits
Increase (Decrease) in Borrowed Money (excluding SubordinatedBorrowed Money)
Decrease (Increase) in Due from Banks (excluding Due fromCentral Banks)
Decrease (Increase) in Call Loans, etc.
Decrease (Increase) in Guarantee Deposits Paid under Securities
Borrowing Transactions
Increase (Decrease) in Call Money, etc.
Increase (Decrease) in Commercial Paper
Increase (Decrease) in Guarantee Deposits Received under
Securities Lending Transactions
Decrease (Increase) in Foreign Exchange Assets
Increase (Decrease) in Foreign Exchange Liabilities
Increase (Decrease) in Short-term Bonds (Liabilities)
Increase (Decrease) in Bonds and Notes

11—Financial Data of Mizuho Financial Group, Inc.

Millions of yen
2014

2013

Thousands of
U.S. dollars (Note 1)
2014¥ 985,366
153,098
6,506
3,672(5,621)(15,491)(143,059)¥ 717,832
154,147
11,912
3,405—
11,141
33,845$9,574,105
1,487,550
63,22435,678(54,619)(150,518)(1,390,003)

(14)

30

(140)

1,210
(16,385)4,331

40(7,699)6,014

11,758(159,207)
42,083—(32,414)
3,011

2,355
—
—

—
(314,952)
29,264

(88)
(12)

(648)
694

(860)
(120)

19,538(1,417,569)
309,266(115,111)(97)(903,027)
6,500
2,944,549
228,270
1,809,906

15,224(1,421,609)
345,710(145,837)(52)(1,015,067)
6,231
380,193(756,195)
125,822

189,844(13,773,513)
3,004,924(1,118,461)(948)(8,774,075)
63,15928,610,084
2,217,941
17,585,564(1,537,943)(1,853,147)
611,766(25,229)(2,452,446)
7,529,810(14,943,101)(18,005,710)
5,944,101

186,454(7,094,654)

1,811,645

195,716
1,920,731

174,771(973,265)

1,901,637
18,662,378

533,173(1,620,912)(108,048)

862,495
3,883,905
57,6995,180,469(15,749,249)(1,049,827)(5,240,107)(68,099)
140,124
107,168¥ 25,941

3,615,066(325,934)(51,158)(60,798)¥ 185,465(50,914,373)(661,677)
1,361,489
1,041,276$
252,058

Consolidated Statement of Cash Flowsー(Continued)
Millions of yen
2014

For the Fiscal Years ended March 31,

Increase (Decrease) in Due to Trust Accounts
Interest and Dividend Income—cash basis
Interest Expenses—cash basis
Other—net¥

2013

Thousands of
U.S. dollars (Note 1)
2014

179,958 ¥1,497,731(328,747)(631,487)

117,567
1,470,305(361,309)
931,299(2,163,391)(122,650)

5,951,082(92,464)(21,020,130)(1,191,710)(2,286,042)

5,858,617(22,211,840)(72,279,170)
73,065,653
10,156,411(76,215)
3,871(89,425)(142,229)5,172
0(110,660,283)
95,288,761
14,782,620(57,715)
32,089(48,044)(96,661)
6,413
1,648

(702,284,986)
709,926,680
98,682,583(740,532)
37,621(868,888)(1,381,940)
50,2601(36,584)—(355,469)—
10,607,483

1,479(749,691)—
103,065,330—(52,500)
154,380(130,700)
1,069—(152,162)(88,829)(37,013)10(305,744)

85,000(89,300)
278,985(137,579)
1,057(171,000)(152,514)(99,588)(6)
1,074(283,872)—(510,105)
1,500,000(1,269,918)
10,390—(1,478,456)(863,090)(359,629)
105(2,970,703)

69,19039,344672,277

Net Increase (Decrease) in Cash and Cash Equivalents

8,084,887

4,864,398

78,555,064

Cash and Cash Equivalents at the Beginning of the Fiscal Year
Increase in Cash and Cash Equivalents from Newly
Consolidated Subsidiary
Increase (Decrease) in Cash and Cash Equivalents Due toChange of Accounting Period of Subsidiaries
Cash and Cash Equivalents at the End of the Fiscal Year
(Note 38)¥

11,347,537

6,483,138

110,255,904

—

0

—

0

—

7

Subtotal
Cash Refunded (Paid) in Income Taxes
Net Cash Provided by (Used in) Operating Activities
Cash Flow from Investing Activities
Payments for Purchase of Securities
Proceeds from Sale of Securities
Proceeds from Redemption of Securities
Payments for Increase in Money Held in Trust
Proceeds from Decrease in Money Held in Trust
Payments for Purchase of Tangible Fixed Assets
Payments for Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets
Proceeds from Sale of Intangible Fixed Assets
Payments for Purchase of Stocks of Subsidiaries (affecting thescope of consolidation)
Proceeds from Sale of Stocks of Subsidiaries (affecting thescope of consolidation)
Net Cash Provided by (Used in) Investing Activities
Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money
Repayments of Subordinated Borrowed Money
Proceeds from Issuance of Subordinated Bonds
Payments for Redemption of Subordinated Bonds
Proceeds from Investments by Minority Shareholders
Repayments to Minority Shareholders
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Payments for Repurchase of Treasury Stock
Proceeds from Sale of Treasury Stock
Net Cash Provided by (Used in) Financing Activities
Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents

19,432,425 ¥ 11,347,537$$

1,748,532
14,552,381(3,194,204)(6,135,717)

188,810,975

See accompanying “Notes to Consolidated Financial Statements,” which are an integral part of these statements.

Financial Data of Mizuho Financial Group, Inc.—12

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

1. Basis for Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Mizuho
Financial Group, Inc. (“MHFG”) and its consolidated subsidiaries in accordance with the provisions set forth in the
Company Law of Japan and the Financial Instruments and Exchange Law, and in conformity with accounting principles
generally accepted in Japan (“Japanese GAAP”) which are different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards.
Certain items presented in the consolidated financial statements which were previously filed with the Director General of
the Kanto Local Finance Bureau are reclassified for the convenience of readers outside Japan. The notes to theconsolidated financial statements include information which is not required under Japanese GAAP but is presented herein
as additional information.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. Totals may not
add up exactly because of such truncation. Amounts in U.S. dollars are included solely for the convenience of readers
outside Japan. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014 has been used for translation.
The inclusion of such amounts is not intended to imply that Japanese yen has been or could be readily converted, realized
or settled into U.S. dollars at that rate or any other rate.

2. Scope of Consolidation(a) The consolidated financial statements include the accounts of MHFG and its consolidated subsidiaries (collectively, “theGroup”), including Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd.
(“MHSC”) and certain other subsidiaries. The numbers of consolidated subsidiaries as of March 31, 2014 and 2013
were 159 and 145, respectively.
In the fiscal year ended March 31, 2014, Banco Mizuho do Brasil S.A. and 23 other companies were newly includedin the scope of consolidation as a result of acquisition of the stocks and other factors.
Mizuho Bank, Ltd. (MHBK) and Mizuho Corporate Bank, Ltd. (MHCB) that had been consolidated subsidiaries ofMizuho Financial Group, Inc. conducted an absorption-type merger, with effect on July 1, 2013, whereby MHCB is thesurviving company and MHBK is the dissolving company. The trade name of MHCB has been changed to Mizuho Bank,
Ltd. During the period, the former MHBK and 9 other companies were excluded from the scope of consolidation as aresult of dissolution upon the merger and other factors.
(b) There were no non-consolidated subsidiaries as of March 31, 2014 and 2013.

3. Application of the Equity Method(a) There were no non-consolidated subsidiaries under the equity method as of March 31, 2014 and 2013.
(b) The numbers of affiliates under the equity method as of March 31, 2014 and 2013 were 21 and 22, respectively.
Investments in affiliates include Orient Corporation, The Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for
Foreign Trade of Vietnam and certain other affiliates.
In the fiscal year ended March 31, 2014, UC Card Co., Ltd. was excluded from the scope of the equity method as aresult of the change from an affiliate to a consolidated subsidiary.
(c) There were no non-consolidated subsidiaries not under the equity method as of March 31, 2014 and 2013.
(d) Certain other affiliates, including Asian-American Merchant Bank Limited, are not accounted for under the equity
method, as they are not significant to the consolidated financial statements of MHFG.

13—Financial Data of Mizuho Financial Group, Inc.

4. Balance Sheet Dates of Consolidated Subsidiaries(a) Balance sheet dates of consolidated subsidiaries for the fiscal year ended March 31, 2014 are as follows:
July 31

1 company

December 29

18 companies

December 31

58 companies

March 3182 companies

From the fiscal year ended March 31, 2014, Mizuho Trust Systems Company Limited and one other company havechanged their balance sheet dates from December 31 to March 31. Profits and losses realized in the period from January 1,
2013 to March 31, 2013 accompanying a change in the accounting period have been adjusted as a change in Retained
Earnings. A change in Cash and Cash Equivalents has been presented as “Increase (Decrease) in Cash and Cash
Equivalents Due to Change of Accounting Period of Subsidiaries” in Consolidated Statements of Cash Flows.
Working Capital Management Co. L. P. and one other company have changed their balance sheet dates from May 31 toMarch 31. This change has no effect on consolidated financial statements.
(b) Consolidated subsidiaries with balance sheet dates of December 29 were consolidated based on their tentative
financial statements as of and for the period ended December 31.
The consolidated subsidiary with balance sheet dates of July 31 was consolidated based on its tentative financial
statement as of and for the period ended the consolidated balance sheet date.
Other consolidated subsidiaries were consolidated based on their financial statements as of and for the period ended
their respective balance sheet dates.
The necessary adjustments have been made to the financial statements for any significant transactions that took
place between their respective balance sheet dates and the date of the consolidated financial statements.

Financial Data of Mizuho Financial Group, Inc. —14

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

5. Standards of Accounting Method(1) Credited Loans pursuant to Trading Securities and Trading Income & Expenses

Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis andrecorded in Other Debt Purchased on the consolidated balance sheet. Other Debt Purchased related to the relevant
credited loans is stated at fair value at the consolidated balance sheet date.
Interest received and the gains or losses on the sale of the relevant credited loans during the fiscal year, including
the gains or losses resulting from any change in the value between the beginning and the end of the fiscal year, arerecognized in Other Operating Income and Other Operating Expenses on the consolidated statement of income.

(2)Trading Assets & Liabilities and Trading Income & Expenses

Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest rates,
currency exchange rates, market prices of securities and related indices are recognized on a trade-date basis andrecorded in Trading Assets or Trading Liabilities on the consolidated balance sheet. Income or expenses generated on
the relevant trading transactions are recorded in Trading Income or Trading Expenses on the consolidated statement ofincome.
Securities and other monetary claims held for trading purposes are stated at fair value at the consolidated balance
sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at their fair values,
assuming that such transactions are terminated and settled at the consolidated balance sheet date.
Trading Income and Trading Expenses include the interest received and paid during the fiscal year, the gains orlosses resulting from any change in the value of securities and other monetary claims between the beginning and theend of the fiscal year, and the gains or losses resulting from any change in the value of financial derivatives between the
beginning and the end of the fiscal year, assuming they were settled at the end of the fiscal year.

(3) Securities

In accordance with “Accounting Standard for Financial Instruments” (the Business Accounting Deliberation Council,
January 22, 1999), MHFG classifies securities, excluding those of investments in non-consolidated subsidiaries andaffiliates, into three categories based upon management's intent. These securities are accounted for as follows:(i) Trading securities are carried at market value and included in Trading Assets.
(ii) Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving averagemethod.
(iii) Other securities are securities which are not classified as either trading securities or bonds held to maturity. Other
securities which have readily determinable fair value are stated at fair value with changes in net unrealized gains orlosses, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method,
included directly in Net Assets. The fair value of Japanese stocks is determined based on the average quoted
market price over the month preceding the consolidated balance sheet date. The fair value of securities other thanJapanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date (cost of securities sold is calculated primarily by the moving-average method). Other securities,
the fair values of which are extremely difficult to determine, are stated at acquisition cost or amortized cost which isdetermined by the moving-average method.
In addition, investments in affiliates not under the equity method are stated at acquisition cost as determined by themoving average-method.
Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as Securities
above.
Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult todetermine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fairvalue is treated as a loss for the fiscal year (“impairment (devaluation)”), if the fair value (primarily the closing market
price at the consolidated balance sheet date) has significantly deteriorated compared with the acquisition cost (including
amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value. The amounts of
impairment (devaluation) were ¥9,366 million ($91,004 thousand) and ¥125,810 million for the fiscal years ended March
31, 2014 and 2013, respectively.
The criteria for determining whether a security's fair value has “significantly deteriorated” are outlined as follows:
・Security whose fair value is 50% or less of the acquisition cost

15—Financial Data of Mizuho Financial Group, Inc.

・Security whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market pricemaintains a certain level or lower(4) Bills Discounted

In accordance with “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial
Instruments for Banks” (The Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee
Report No. 24), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sellor pledge these bankers' acceptances, commercial bills, documentary bills and foreign exchange bills purchased. The
face value of these bills amounted to ¥1,321,639 million ($12,841,424 thousand) and ¥1,038,435 million as of March 31,
2014 and 2013, respectively.

(5) Derivative Transactions

Derivative transactions are valued at fair value with changes in fair value included in current income. Derivatives
qualifying as hedges are mainly accounted for using either the fair-value hedge method or the deferred method ofhedge accounting (see (21) Hedge Accounting).

(6) Tangible Fixed Assets (Except for Lease Assets)

Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the
declining-balance method. The range of useful lives is as follows:
Buildings 3 years to 50 years
Others2 years to 20 years(7) Intangible Fixed Assets (Except for Lease Assets)

Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-usedsoftware are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determinedby MHFG and its consolidated subsidiaries.

(8) Lease Assets

Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned withfinance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to
fixed assets owned by us.

(9) Deferred Assets• Bond issuance costs
Bond issuance costs are expensed as incurred.
• Bond discounts
Bonds are stated at amortized costs computed by the straight-line method on the consolidated balance sheet. Bonddiscounts booked on the consolidated balance sheet as of March 31, 2006 are amortized under the straight-line
method over the term of the bond by applying the previous accounting method and the unamortized balance isdirectly deducted from bonds, based on the tentative measure stipulated in the “Tentative Solution on Accounting for
Deferred Assets” (ASBJ Report No.19, August 11, 2006).

Financial Data of Mizuho Financial Group, Inc. —16

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(10) Reserves for Possible Losses on Loans

Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance withinternally established standards for write-offs and reserve provisions:• For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under theCompany Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions(“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs
described below and expected amounts recoverable from the disposition of collateral and the amounts recoverable
under guarantees.
• For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive
Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of
the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts
recoverable under guarantees.
• For claims extended to Intensive Control Obligors and Obligors with Restructured Loans (defined in Note 11 below)
and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows:(i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method isapplied, under which the reserve is determined as the difference between the book value of the loan and its
present value of future cash flows discounted using the contractual interest rate before the loan was classified asa Restructured Loan, and(ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for thelosses estimated for each individual loan.
• For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experienceand other factors.
• Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses
based on analyses of the political and economic climates of the countries. All claims are assessed by each claim
origination department in accordance with the internally established “Self-assessment Standard,” and the results of
the assessments are verified and examined by the independent examination departments.
In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or
guaranteed by a third party, the amounts deemed uncollectible (calculated by deducting the anticipated proceeds fromthe sale of collateral pledged against the claims and amounts that are expected to be recovered from guarantors of theclaims) are written off against the respective claim balances. The total directly written-off amounts were ¥195,157 million($1,896,201 thousand) and ¥270,388 million as of March 31, 2014 and 2013, respectively.
Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experienceand other factors for general claims and the assessment for each individual loan for other claims.

(11) Reserve for Possible Losses on Investments

Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments insecurities, after taking into consideration the financial condition and other factors concerning the investee company.

(12) Reserve for Bonus Payments

Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amountaccrued at the end of the fiscal year, based on the estimated future payments.

(13) Reserve for Director and Corporate Auditor Retirement Benefits

Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit
payments to directors, corporate auditors and executive officers, is recognized at the amount accrued at the end of therespective fiscal year, based on the internally established standards.

(14) Reserve for Possible Losses on Sales of Loans

Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amountdeemed necessary based on a reasonable estimate of possible future losses.

17—Financial Data of Mizuho Financial Group, Inc.

(15) Reserve for Contingencies

Reserve for Contingencies is maintained to provide against possible losses from contingencies, which are not coveredby other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(16) Reserve for Reimbursement of Deposits

Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from Liabilities atthe estimated amount of future claims for withdrawal by depositors.

(17) Reserve for Reimbursement of Debentures

Reserve for Reimbursement of Debentures is provided for the debentures derecognized from Liabilities at the estimatedamount for future claims.

(18) Reserve under Special Laws

Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange of ¥1,273
million ($12,372 thousand) and ¥1,203 million as of March 31, 2014 and 2013, respectively. This is the reserve pursuant
to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinanceregarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and saleof securities, other transactions or derivative transactions.

(19) Accounting Method for Retirement Benefits

In calculating retirement benefit obligations, the straight-line basis is used as a method of attributing expected retirement
benefits to the period up to the end of this fiscal year. Unrecognized actuarial differences are recognized as income or
expenses from the following fiscal year under the straight-line method over a certain term within the average remaining
service period of the employees (mainly from 10 to 12 years) of the respective fiscal years.
Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary
resignation at the end of the term to be retirement benefit obligations in computing net defined benefit liability andretirement benefit expenses.

(20) Assets and Liabilities Denominated in Foreign Currencies

Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidatedbanking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily atthe exchange rates in effect at the consolidated balance sheet date, with the exception of the investments in affiliates
not under the equity method, which are translated at historical exchange rates.
Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions
mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective balance
sheet dates.

Financial Data of Mizuho Financial Group, Inc. —18

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(21) Hedge Accounting(a) Interest Rate Risk
The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps areapplied as hedge accounting methods.
The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic
consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is accounted for by themethod stipulated in the JICPA Industry Audit Committee Report No.24.
The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-valuemonetary claims and liabilities is assessed as follows:(i) as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both thehedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, inthe same maturity bucket.
(ii) as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between thebase interest rate index of the hedged instrument and that of the hedging instrument.
The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market orof cash flows of the hedged instruments with that of the hedging instruments.
Deferred Gains or Losses on Hedges recorded on the consolidated balance sheet resulted from the application of
the macro-hedge method based on the “Tentative Accounting and Auditing Treatment relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No.15), underwhich the overall interest rate risks inherent in loans, deposits and other instruments are controlled on a macro-basis
using derivatives transactions. These deferred hedge gains/losses are amortized as interest income or interest
expenses over the remaining maturity and average remaining maturity of the respective hedging instruments.
The unamortized amounts of gross deferred hedge losses on the macro-hedges, before net of applicable income
taxes, were ¥1,849 million ($17,970 thousand) and ¥4,330 million as of March 31, 2014 and 2013, respectively. The
unamortized amounts of gross deferred hedge gains on the macro-hedges, before net of applicable income taxes,
were ¥1,500 million ($14,584 thousand) and ¥2,955 million as of March 31, 2014 and 2013, respectively.
(b) Foreign Exchange Risk
Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply thedeferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets andliabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to
Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee
Report No.25). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency
position of the hedged monetary claims and liabilities is equal to or larger than that of currency-swap transactions,exchange swap transactions, and similar transactions designated as the hedging instruments of the foreignexchange risk.
In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method toportfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates denominatedin foreign currency and Other securities denominated in foreign currency (except for bonds) identified as hedged
items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange
contracts exceeds the amount of acquisition cost of the hedged foreign securities denominated in foreign currency.
(c) Inter-company Transactions
Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or
between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains
and losses are recognized in the statement of income or deferred under hedge accounting, because these intercompany derivatives are executed according to the criteria for appropriate outside third-party cover operations which
are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No.24 and25.
As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value
hedge method or the exceptional accrual method for interest rate swaps are applied.

19—Financial Data of Mizuho Financial Group, Inc.

(22) Consumption Taxes and OtherWith respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption
taxes are excluded from transaction amounts.

(23) Amortization Method of Goodwill and Amortization Period

Goodwill of Mizuho Trust & Banking Co., Ltd. is amortized over a period of 20 years under the straight-line method.
Other Goodwill is amortized over an appropriate period not to exceed 20 years under the straight-line method. The fullamount of Goodwill that has no material impact is expensed as incurred.

(24) Scope of Cash and Cash Equivalents on Consolidated Statement of Cash Flows

In the consolidated statement of cash flows, Cash and Cash Equivalents consist of cash and due from central banks
included in “Cash and Due from Banks” on the consolidated balance sheet.

6. Changes in Accounting Policies(Changes in accounting policies due to revisions of accounting standards)
Application of “Accounting Standard for Consolidated Financial Statements” and others
Mizuho Financial Group has applied “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.
22, March 25, 2011) and others beginning with this fiscal year and has newly included FANTASTIC FUNDINGCORPORATION and other companies in consolidated subsidiaries.
This accounting standard and others have been applied to FANTASTIC FUNDING CORPORATION and othercompanies that have been newly included in consolidated subsidiaries in accordance with the transitional treatment
stipulated in “Accounting Standard for Consolidated Financial Statements” Paragraph 44-4 (3). At the beginning of thefirst fiscal year of the application, the assets, the liabilities, and the minority interests of FANTASTIC FUNDINGCORPORATION and other companies have been recorded at the appropriate book value in the consolidated financial
statements. As a result of this, the effect of this application on the retained earnings at the beginning of fiscal 2013 isimmaterial.
Application of “Accounting Standard for Retirement Benefits” and others
Mizuho Financial Group has applied “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17,2012) (hereinafter, the “Accounting Standard”) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Statement No. 25, May 17, 2012) (hereinafter, the “Guidance”) beginning with the end of this fiscal year (excluding
regulations stipulated in the text of the Accounting Standard, Paragraph 35 and the Guidance, Paragraph 67) and hasrecorded the difference between retirement benefit obligations and plan assets as net defined benefit asset or liability
from the end of this fiscal year.
The Accounting Standard and the Guidance have been applied in accordance with the transitional treatment
stipulated in the Accounting Standard, Paragraph 37, and unrecognized actuarial differences after adjusting for tax
effect have been recorded as remeasurements of defined benefit plans in accumulated other comprehensive income.
As a result of this, ¥413,073 million ($4,013,543 thousand) of Net Defined Benefit Asset and ¥46,006 million($447,011 thousand) of Net Defined Benefit Liability have been recorded at the end of this fiscal year. Deferred Tax
Assets increased by ¥13,862 million ($134,694 thousand),Deferred Tax Liabilities decreased by ¥1,212 million ($11,785
thousand) and Accumulated Other Comprehensive Income decreased by ¥22,979 million ($223,278 thousand).

7. Issued but not yet Adopted Accounting Standard and Others
1. Accounting Standard for Retirement Benefits and others (May 17, 2012)(i)Overview
From the viewpoint of improvements to financial reporting and international convergence, this accounting standard
was revised mainly focusing on the treatment of unrecognized actuarial differences and unrecognized past service,
the calculation method of retirement benefit obligations and current service cost, and enhancement of disclosures.
(ii)Scheduled Date of Application
Mizuho Financial Group is scheduled to apply the revision to the calculation method of retirement benefit
obligations and current service cost from the beginning of the fiscal year starting on April 1, 2014.
Financial Data of Mizuho Financial Group, Inc. —20

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(iii) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under consideration
2. Accounting Standard for Business Combinations (September 13, 2013)(i) Overview
This accounting standard was revised mainly focusing on (a)the treatment of the parent company’s changes inequity of its subsidiary while the parent company’s control is continuing because of additional acquisition of sharesof the subsidiary, (b)the treatment of acquisition-related expenses, (c)the treatment of provisional accounting, and(d)the presentation of Net Income and the change from minority interests to non-controlling interests.
(ii) Scheduled Date of Application
Mizuho Financial Group is scheduled to apply this accounting standard after revision from the beginning of the
fiscal year starting on April 1, 2015.
(iii) Effect of Application of this accounting standard
The effect of the application of this accounting standard is under consideration.

8. Securities Lending and Borrowing Transactions

MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge as of March 31,
2014 and 2013. MHFG has the right to sell or repledge some of unsecured borrowed securities, securities purchased underresale agreements and securities borrowed with cash collateral. Among them, the totals of securities repledged were
¥9,853,276 million ($95,737,239 thousand) and ¥10,763,594 million as of March 31, 2014 and 2013, respectively, andsecurities neither repledged nor re-loaned were ¥1,681,484 million ($16,337,777 thousand) and ¥1,995,828 million as ofMarch 31, 2014 and 2013, respectively.

9. Trading Assets and Liabilities
As of March 31,

Trading Assets:
Trading Securities
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total
Trading Liabilities:
Trading Securities Sold Short
Derivatives for Trading
Transactions
Derivatives for Trading Securities
Total

21—Financial Data of Mizuho Financial Group, Inc.

Millions of yen
2014

2013

Thousands of U.S. dollars
2014¥ 7,038,301¥ 9,102,409$ 68,386,143

4,231,907
199,602

4,778,286
196,232

41,118,413
1,939,392¥ 11,469,811¥ 14,076,928$ 111,443,948¥ 4,309,956¥ 3,349,261$ 41,876,762

3,690,911
182,168

4,147,821
189,359

35,861,950
1,770,004¥ 8,183,037¥ 7,686,442$ 79,508,716

10. Securities
Millions of yen
2014

As of March 31,

Japanese Government Bonds
Japanese Local Government Bonds
Japanese Short-term Bonds
Japanese Corporate Bonds
Japanese Stocks*1
Other*2
Total¥ 26,097,592
244,66299
2,792,469
3,525,077
11,337,616¥ 43,997,517

2013

Thousands of U.S. dollars
2014¥ 33,805,553
243,757—
2,994,537
3,203,217
13,225,333¥ 53,472,399$ 253,571,634
2,377,207
971
27,132,424
34,250,654
110,159,511$ 427,492,401*1 Japanese Stocks included investments in non-consolidated subsidiaries and affiliates of ¥214,799 million ($2,087,054 thousand) and ¥206,978 million as ofMarch 31, 2014 and 2013, respectively.
*2 Other included investments in non-consolidated subsidiaries and affiliates of ¥58,695 million ($570,307 thousand) and ¥52,398 million as of March 31, 2014
and 2013, respectively.

11. Loans and Bills Discounted
Millions of yen
2014

2013

Thousands of U.S. dollars
2014¥ 58,101,716
7,862,209
2,603,952
343,933¥ 55,439,733
9,260,316
2,451,756
277,203$ 564,532,804
76,391,460
25,300,742
3,341,756

385,181
4,412¥ 69,301,405

101,261
6,610¥ 67,536,882

3,742,532
42,877$ 673,352,171

As of March 31,

Loans on Deeds
Overdrafts
Loans on Notes
Bills Discounted
Financing Receivables, including
Factoring, Leasing and Property
Financing
Other
Total

Loans and Bills Discounted as of March 31, 2014 and 2013 include the following:
Millions of yen
2014

As of March 31,

Loans to Bankrupt Obligors*1
Non-Accrual Delinquent Loans*2
Loans Past Due for Three Months or More*3
Restructured Loans*4
Total

¥

2013

Thousands of U.S. dollars
2014

12,194
508,001
4,109
504,600¥

33,688637,911
3,468
694,732$

118,490
4,935,886
39,925
4,902,838¥ 1,028,905¥

1,369,801$

9,997,139*1 Loans to Bankrupt Obligors represent non-accrual loans to obligors who are legally bankrupt as defined in Article 96, Paragraph 1, Items 3 and 4 of the
Corporate Tax Law Enforcement Ordinance (Government Ordinance No.97, 1965).
*2 Non-Accrual Delinquent Loans represent non-accrual loans other than (i) Loans to Bankrupt Obligors and (ii) loans of which payments of interest are
deferred in order to assist or facilitate the restructuring of obligors in financial difficulties.
*3 Loans to Bankrupt Obligors or Non-Accrual Delinquent Loans, both of which are classified as non-accrual, are not included in this category.
*4 Restructured Loans represent loans on which contracts were amended in favor of obligors (e.g., the reduction of or exemption from stated interest, thedeferral of interest payments, the extension of maturity dates, or renunciation of claims) in order to assist or facilitate the restructuring of obligors in financial
difficulties.
Note: The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

Financial Data of Mizuho Financial Group, Inc. —22

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Commitment Line for Loans
Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking
subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer isin breach of contract conditions. The unutilized balance of these contracts amounted to ¥69,141,157 million ($671,795,158
thousand) and ¥67,950,272 million as of March 31, 2014 and 2013, respectively. Of these amounts, ¥57,623,467 million($559,886,000 thousand) and ¥58,289,578 million as of March 31, 2014 and 2013, respectively, relate to contracts ofwhich the original contractual maturity is one year or less, or which are unconditionally cancelable at any time.
Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affectfuture cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse theexecution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation,necessity to preserve a claim, or other similar reasons. The banking subsidiaries require collateral such as real estate andsecurities when deemed necessary at the time the contracts are entered into. In addition, they periodically monitor
customers’ business conditions in accordance with internally established standards and take necessary measures tomanage credit risks such as amendments to contracts.

12. Foreign Exchange Assets and Liabilities
Millions of yen
2014

As of March 31,

Foreign Exchange Assets:
Foreign Bills Bought
Foreign Bills Receivable
Due from Banks (Foreign)
Advance to Foreign Banks
Total
Foreign Exchange Liabilities:
Due to Banks (Foreign)
Advance from Foreign Banks
Foreign Bills Payable
Foreign Bills Sold
Total

¥

977,705
449,024
136,836
12,600¥2013

779,783
383,290
232,407
17,120Thousands of U.S. dollars
2014$

9,499,668
4,362,853
1,329,540
122,427¥ 1,576,167¥ 1,412,601$ 15,314,488¥

289,017
9,455
20,226
4,628¥

145,943
13,004
12,60910,914$¥323,327¥

182,473$ 3,141,545

Millions of yen
2014

2013

Thousands of U.S. dollars
2014

2,808,178
91,871
196,52244,974

13. Other Assets
As of March 31,

Accrued Income
Prepaid Expenses
Other
Total

23—Financial Data of Mizuho Financial Group, Inc.

¥

264,605
40,114
2,536,000¥ 2,840,720¥

276,671
28,6292,294,252¥ 2,599,553$

2,570,985
389,764
24,640,501$ 27,601,250

14. Tangible Fixed Assets
Millions of yen
2014

As of March 31,

Land
Buildings
Lease Assets
Construction in Progress
Other
Total
Accumulated Depreciation
Book Value Adjusted for Gains on
Sales of Replaced Assets andOthers2013

Thousands of U.S. dollars
2014¥

459,986
323,194
18,83834,83088,415¥463,851
315,268
17,37323,87580,716$

4,469,357
3,140,252
183,041
338,423
859,075¥

925,266¥

901,085$

8,990,148¥

814,210¥

798,489$

7,911,104

36,18935,223351,6312013

Thousands of U.S. dollars
2014

15. Reserves for Possible Losses on Loans
Millions of yen
2014

As of March 31,

General Reserve for Possible
Losses on Loans
Specific Reserve for Possible
Losses on Loans
Reserve for Possible Losses on
Loans to Restructuring Countries
Total

¥

(398,737)¥(216,787)¥(782)(616,307)(503,017)$(235,915)¥(1,058)(739,990)

Millions of yen
2014

2013

(3,874,249)(2,106,368)$(7,605)(5,988,222)

16. Assets Pledged as Collateral
The following assets were pledged as collateral:
As of March 31,

Trading Assets
Securities
Loans and Bills Discounted
Other Assets¥ 4,455,104
15,486,954
8,528,194
1,112¥ 5,202,949
21,651,304
8,642,462
6,126

Thousands of U.S. dollars
2014$

43,287,066
150,475,657
82,862,361
10,812

The following liabilities were collateralized by the above assets:
Millions of yen
2014

As of March 31,

Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Borrowed Money¥

877,876
1,708,200¥

2013

258,984
1,579,600

Thousands of U.S. dollars
2014$

8,529,701
16,597,357

6,883,769

7,726,231

66,884,665

6,049,378
5,934,019

10,919,210
5,854,006

58,777,479
57,656,618

Financial Data of Mizuho Financial Group, Inc. —24

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

In addition, the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others
were collateralized, and margins for futures transactions were substituted by Cash and Due from Banks of ¥30,438 million($295,749 thousand) and ¥13,113 million, Trading Assets of ¥152,908 million ($1,485,707 thousand) and ¥266,909 million,
Securities of ¥3,172,665 million ($30,826,517 thousand) and ¥2,101,482 million, and Loans and Bills Discounted of¥159,954 million ($1,554,166 thousand) and ¥123,719 million as of March 31, 2014 and 2013, respectively.
Other Assets included guarantee deposits of ¥127,301 million ($1,236,902 thousand) and ¥101,985 million, collateralpledged for derivatives transactions of ¥275,812 million ($2,679,876 thousand) and ¥488,421 million, margins for futurestransactions of ¥141,401 million ($1,373,896 thousand) and ¥79,222 million, and other guarantee deposits of ¥35,637
million ($346,259 thousand) and ¥22,514 million as of March 31, 2014 and 2013, respectively.

17. Deposits
Millions of yen
2014

As of March 31,

Current Deposits
1
Ordinary Deposits*
Deposits at NoticeTime Deposits
Negotiable Certificates of Deposit
Other
Total

¥

6,625,385
41,564,578
909,863
35,409,276
12,755,776
4,546,400¥ 101,811,282

2013

Thousands of U.S. dollars
2014¥ 6,376,284
39,051,095
809,033
34,252,488
15,326,781
3,753,054¥ 99,568,737$ 64,374,134
403,853,273
8,840,493
344,046,606
123,938,755
44,174,122$ 989,227,383*1 Ordinary Deposits includes savings deposits.

18. Call Money and Bills Sold
Millions of yen
2014

As of March 31,

Call Money
Bills Sold
Total

¥
¥

7,194,432—
7,194,432

2013

Thousands of U.S. dollars
2014¥ 6,126,424—¥ 6,126,424$$

69,903,156—
69,903,156

19. Commercial Paper
As of March 31,

Commercial Paper

Millions of yen
2014¥677,459

2013¥472,718

Thousands of U.S. dollars
2014$ 6,582,391

Average interest rates*1
2014
2013

0.20%

0.26%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal
year.

25—Financial Data of Mizuho Financial Group, Inc.

20. Borrowed Money
Millions of yen
2014

As of March 31,

Borrowed Money
Bills rediscounted¥7,838,357―

2013¥7,699,440―

Thousands of U.S. dollars
2014

7,838,357

7,699,440

76,159,715

2,3

Other Borrowings*$ 76,159,715―

Average interest rates*1
2014
2013

0.32%
—%

0.35%
—%

0.32%

0.35%

*1 Average interest rates are the weighted-average interest rates of debts calculated from the interest rates and outstanding balances at the end of the fiscal
year.
*2 Other Borrowings included subordinated debt of ¥556,000 million ($5,402,254 thousand) and ¥608,450 million as of March 31, 2014 and 2013, respectively.
*3 Repayments for Other Borrowings are scheduled for the next five years as follows:
Fiscal year ending March 31, 2015 ¥ 5,494,545 million($ 53,386,569 thousand)2016 ¥ 484,981 million($ 4,712,219 thousand)($ 9,657,963 thousand)2017 ¥ 993,997 million
86,720 million($
842,600 thousand)2018 ¥
2019 ¥
58,481 million($
568,221 thousand)21. Short-term Bonds
Major components of Short-term Bonds at March 31, 2014 were as follows:
IssuerIssue

Millions of yen Thousands of U.S. dollars

MHFG

Jan. 2014–Feb. 2014

¥

MHBK

Mar. 2014

MHSC

Oct. 2013–Mar. 2014

*1

Oct. 2013–Mar. 2014

Total

¥

182,000[182,000]
25,000[25,000]
290,100[290,100]
87,468[87,468]
584,568$$

1,768,364[1,768,364]
242,907[242,907]
2,818,694[2,818,694]
849,865[849,865]
5,679,830

Interest rates

0.22%
0.08%
0.06%–0.11%
0.13%–0.31%

Due

Apr. 2014–
May 2014
Apr. 2014
Apr. 2014–
Sep. 2014
Apr. 2014–
May 2014*1 indicates the total amount of Short-term Bonds issued by the domestic consolidated subsidiary, Allstar Funding Co., Ltd, and theoverseas consolidated subsidiaries, BLUE HEAVEN FUNDING CORPORATION and ASTRO CAPITAL CORPORATIONⅡ.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. No collateral was provided for the above Short-term Bonds.
Major components of Short-term Bonds at March 31, 2013 were as follows:
IssuerIssue

Millions of yen

MHFG

Jan. 2013–Feb. 2013

¥

MHCB
MHSC
Total

Interest rates

125,000

0.29%–0.31%

Jan. 2013–Mar. 2013

40,0000.07%–0.11%

Oct. 2012–Mar. 2013

312,400

0.09%–0.14%¥

Due

Apr. 2013–
May 2013
Apr. 2013–
May 2013
Apr. 2013–
Mar. 2014

477,400

Note: No collateral was provided for the above Short-term Bonds.

Financial Data of Mizuho Financial Group, Inc. —26

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

22. Bonds and Notes
Major components of Bonds and Notes as of March 31, 2014 were as follows:
IssuerDescription

Issue

MHBK

Straight Bonds

Aug. 2004–
Mar. 2014

MHTB

Straight Bonds*1

Straight Bonds

Dec. 2005–
Aug. 2009
Mar. 2004–
Mar. 2014*2

Straight Bonds*3

Straight Bonds

Jul. 1995–
May 2012
Sep. 2002–
Mar. 2014

Total

Millions of yen¥ 3,958,105[620,900](US$ 5,796,166 thousand)(AUD 180,000 thousand)
61,500[—]462,323[154,380](US$ 4,492,068 thousand)
57,400[—]706,414[146,240](US$ 326,370 thousand)(AUD
10,320 thousand)(EUR 160,800 thousand)(CNY 1,249,507 thousand)¥ 5,245,743

Thousands of U.S.
dollars

Interest
rates$ 38,458,080[6,032,841]

0.10%–
7.12%

Due

Apr. 2014–

597,552[—]
4,492,068[1,500,000]

1.91%– Dec. 2015–
3.38%
4.20%– Apr. 2014–
5.79%
Mar. 2024

557,715[—]
6,863,721[1,420,913]

1.30%–
3.90%
0.00%–
18.10%

Jun. 2018–
Apr. 2014–
Mar. 2044$ 50,969,136*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited, Mizuho Financial
Group (Cayman) 2 Limited and Mizuho Financial Group (Cayman) 3 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited,
Mizuho Finance (Curaçao) N.V. and Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc, Mizuho Bank (China),Ltd and Mizuho Securities USA Inc.

Notes: 1. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
2. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
3. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2015 ¥ 1,506,088 million ($14,633,584 thousand)2016 ¥ 646,269 million ($ 6,279,337 thousand)2017 ¥ 707,242 million ($ 6,871,773 thousand)2018 ¥ 922,000 million ($ 8,958,416 thousand)2019 ¥ 365,998 million ($ 3,556,145 thousand)4. Bonds and Notes as of March 31, 2014 included subordinated bonds and notes of ¥1,645,823 million($15,991,291thousand).
5. No collateral was provided for the above Bonds and Notes.

27—Financial Data of Mizuho Financial Group, Inc.

Major components of Bonds and Notes as of March 31, 2013 were as follows:
IssuerDescription

Issue

MHCB

Straight Bonds

MHBK

Straight Bonds

MHTB

Straight Bonds*1

Straight Bonds*2

Straight Bonds*3

Straight Bonds*4

Straight Bonds

Feb. 2004–
Mar. 2013
Feb. 2005–
Oct. 2012
Dec. 2005–
Aug. 2009
Mar. 2004–
Jul. 2012
May 2008–
Jun. 2008
Jul. 1995–
May 2012
Sep. 2002–
Mar. 2013

Total

Millions of yen

Thousands of U.S.
dollars¥ 3,316,503(US$ 5,494,286 thousand)
805,400$ 35,285,702

78,700837,323

281,524(US$ 2,995,261 thousand)
26,5002,995,261

58,600623,471574,518
101,560 thousand)
7,370 thousand)
99,971 thousand)
997,942 thousand)¥ 5,141,746

6,112,551

(US$
(AUD
(EUR
(CNY

8,568,997

281,945

Interest
rates

Due

0.00%– Apr. 2013 –3.88%
Feb. 2043
1.05%– Jul. 2013 –
4.26%
1.76%– Dec. 2015 –
3.43%
4.20%– Apr. 2014–
5.79%
Jul. 2022
0.90%– May 2013–
2.75%
1.30%– Jan. 2019 –
3.90%
0.00%– Apr. 2013 –17.68% Mar. 2043

$ 54,705,250*1 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Financial Group (Cayman) Limited and Mizuho
Financial Group (Cayman) 2 Limited.
*2 indicates the total amount of straight bonds issued by the overseas consolidated subsidiary, Mizuho Finance (Aruba) A.E.C.
*3 indicates the total amount of straight bonds issued by the overseas consolidated subsidiaries, Mizuho Finance (Cayman) Limited and Mizuho Finance(Curaçao) N.V.
*4 indicates the total amount of straight bonds issued by the domestic consolidated subsidiary, MHSC, and the overseas consolidated subsidiaries, Mizuho
International plc and Mizuho Corporate Bank (China),Ltd.

Notes: 1. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
2. Repayments for Bonds and Notes are scheduled for the next five years as follows:
Fiscal year ending March 31, 2014 ¥ 1,173,571 million
2015 ¥ 831,403 million
2016 ¥ 632,925 million
2017 ¥ 661,857 million
2018 ¥ 882,728 million
3. Bonds and Notes as of March 31, 2013 included subordinated bonds and notes of ¥1,595,663 million.
4. No collateral was provided for the above Bonds and Notes.

23. Other Liabilities
Millions of yen
2014

As of March 31,

Accrued Expenses
Unearned Income
Income Taxes Payable
1 2
Lease Liabilities* *
Other
Total

¥

137,297
151,975
57,132
26,6793,197,817¥ 3,570,902

2013

¥

138,463
147,644
45,03824,406
3,145,511¥ 3,501,064

Thousands of U.S. dollars
2014$

1,334,024
1,476,636
555,113259,229
31,070,904$ 34,695,906*1 Average interest rate is 2.03% and 2.23% in the fiscal year ended March 31, 2014 and 2013, respectively. It is the weighted-average interest rate of debts
calculated from the interest rates and outstanding balances at the end of the fiscal year.
*2 Repayments for Lease Liabilities are scheduled for the next five years as follows:
Fiscal year ending March 31, 2015 ¥ 6,001 million($ 58,311 thousand)2016 ¥ 5,581 million($ 54,232 thousand)2017 ¥ 4,948 million($ 48,085 thousand)2018 ¥ 4,397 million($ 42,732 thousand)2019 ¥ 3,744 million($ 36,381 thousand)Financial Data of Mizuho Financial Group, Inc. —28

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

24. Reserve for Employee Retirement Benefits
For the Fiscal Year ended March 31, 2014
(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin
Kikin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension
Plans. In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension
Plans as a part of the Termination Allowance Plans while certain other domestic consolidated subsidiaries haveestablished employee retirement benefit trusts.
(2) Defined-Benefit Corporate Pension Plans(i) Adjustment between the balances of Retirement Benefit Obligations at the beginning and at the end of the period
As of March 31, 2014

Balance of Retirement Benefit Obligations
at the beginning of the period
Service Cost
Interest Cost
Unrecognized Actuarial Differences incurred
Retirement Benefits paid
Other
Balance of Retirement Benefit Obligations
at the end of the period

Millions of yen

Thousands of U.S. dollars¥ 1,326,443
31,901
22,496
4,499(67,993)
2,039$ 12,888,106
309,968
218,587
43,719(660,648)
19,814¥ 1,319,387$ 12,819,546

Note: The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries under
the simplified method.
(ii) Adjustment between the balances of Plan Assets at the beginning and at the end of the period
Millions of yen

Thousands of U.S. dollars

Balance of Plan Assets
at the beginning of the period
Expected Return on Plan Assets
Unrecognized Actuarial Differences incurred
Contributions from employer
Contributions from employee
Retirement Benefits paid
Other

¥ 1,512,741
36,046
134,779
49,524
1,181(49,693)
1,875$ 14,698,227
350,240
1,309,553
481,197
11,479(482,841)
18,223

Balance of Plan Assets at the end of the period¥ 1,686,455$ 16,386,078

As of March 31, 2014(iii) Adjustment between the balances of Retirement Benefit Obligations and Plan Assets at the end of the period andAdjustment to the balances of Net Defined Benefit Liability and Net Defined Benefit Asset recorded in the Consolidated
Balance Sheets
As of March 31, 2014

Millions of yen

Thousands of U.S. dollars

Retirement Benefit Obligations
Plan Assets
Net amount of Liability and Asset recorded in theConsolidated Balance Sheets¥ 1,319,387(1,686,455)$ 12,819,546(16,386,078)¥ (367,067)$ (3,566,532)

Millions of yen

Thousands of U.S. dollars¥ (367,067)$ (3,566,532)

As of March 31, 2014

Net Defined Benefit Liability
Net Defined Benefit Asset
Net amount of Liability and Asset recorded in theConsolidated Balance Sheets

29—Financial Data of Mizuho Financial Group, Inc.

¥

46,006(413,073)$

447,011(4,013,543)

(iv)Employee Retirement Benefit Expenses and the breakdown

For the Fiscal Year ended March 31, 2014

Millions of yen

Thousands of U.S. dollars

30,94722,496(36,046)$ 300,693
218,587(350,240)

21,162
5,236

205,62250,883

43,797$ 425,545¥

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized
Actuarial Differences
Other
Net Retirement Benefit Expenses for
Defined-Benefit Corporate Pension Plans¥

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
(v)

Remeasurements of Defined Benefit Plans

Breakdown of Remeasurements of Defined Benefit Plans (before deducting tax effect) was as follows:
Millions of yen

As of March 31, 2014

Unrecognized Actuarial Differences
Total
(vi)

¥
¥

42,38842,388

Thousands of U.S. dollars$ 411,856$ 411,856

Plan Assets(a) Ratio of each category to the total amount of Plan Assets was as follows:
As of March 31, 2014

Japanese Stocks
Japanese Bonds
Foreign Stocks
Foreign Bonds
General account of life insurance companies
Other
Total

49.68%
19.09%
14.23%
5.05%
6.60%
5.35%
100.00%Note: The total amount of Plan Assets includes 52.11 % of Employee Retirement Benefit Trusts established for the
Corporate Pension Fund Plans and the Termination Allowance Plans.
(b) Calculation of Expected Long-term Rate of Return on Plan Assets
In determining the Expected Long-term Rate of Return on Plan Assets, current and expected allocation of Plan
Assets and current and expected future long-term rate of return from various assets constituting Plan Assets havebeen considered.
(vii)

Basis of Actuarial Calculation

Major Basis of Actuarial Calculation at the end of March 31, 2014(a) Discount Rate

mainly 1.70%(b) Expected Long-term Rate of Return on Plan Assets

mainly 1.93%- 2.80%(3) Defined- Contribution Pension Plans
The required amount of contributions to Defined- Contribution Pension Plans of MHFG and its domestic consolidated
subsidiaries was ¥2,437 million ($ 23,679 thousand).

Financial Data of Mizuho Financial Group, Inc. —30

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the Fiscal Year ended March 31, 2013
(1) MHFG and its domestic consolidated subsidiaries have adopted the Corporate Pension Fund Plans (“Kigyo Nenkin
Kikin Seido”), and the Termination Allowance Plans (“Taishoku Ichijikin Seido”) as Defined-Benefit Corporate Pension
Plans. In addition, MHFG and certain domestic consolidated subsidiaries have adopted Defined- Contribution Pension
Plans as a part of the Termination Allowance Plans while certain other domestic consolidated subsidiaries haveestablished employee retirement benefit trusts.
(2) Reserve for Employee Retirement Benefits was reconciled as follows:
As of March 31, 2013

Millions of yen

Retirement Benefit Obligations
Plan Assets
Unfunded Retirement Benefit Obligations
Unrecognized Actuarial Differences
Net Amounts
Prepaid Pension Cost

¥ 1,326,443(1,512,741)(186,297)(193,916)(380,213)
418,846

Reserve for Employee Retirement Benefits¥

38,632

Notes: 1. The above Retirement Benefit Obligations does not include additional retirement benefits paid to employees.
2. The above Retirement Benefit Obligations includes the amount measured by certain consolidated subsidiaries
under the simplified method.
(3) Breakdown of Employee Retirement Benefit Expenses was as follows:
For the Fiscal Year ended March 31, 2013

Millions of yen¥

Service Cost
Interest Cost
Expected Return on Plan Assets
Amortization of Unrecognized
Actuarial Differences
Other (such as additional retirement benefits)

30,042
22,572(31,606)
67,0688,905

Net Retirement Benefit Expenses¥

96,982

Notes: 1. The amount of employee contributions to Mizuho Pension Fund is deducted from Service Cost.
2. Retirement benefit expenses of some consolidated subsidiaries which adopt the simplified method for calculating
retirement benefit obligations are included in Service Cost in full.
(4) Assumptions used in calculation of the above information were as follows:
2013

Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Retirement Benefits to Periods ofService
Prior Service Cost
Amortization of Unrecognized Actuarial Differences

31—Financial Data of Mizuho Financial Group, Inc.

Mainly 1.7%
Mainly 1.85%-2.80%
Straight-line basis
Charged to Income (Loss) in the year
Primarily 10-12 years25. Acceptances and Guarantees(1) All commitments and contingent liabilities of a material nature resulting from guarantees or otherwise are included in thecontra-accounts Acceptances and Guarantees and Customers' Liabilities for Acceptances and Guarantees.
The outstanding balances of the accounts were as follows:
Millions of yen
2014

As of March 31,

Guarantees
Letters of Credit
Acceptances
Total

2013

Thousands of U.S. dollars
2014¥

4,414,505
126,552
47,588¥4,071,855
108,127
44,276$42,892,595
1,229,616
462,388

¥4,588,646¥

4,224,259$

44,584,599

Note: Liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article
2, Paragraph 3 of the Financial Instruments and Exchange Law (the Securities and Exchange Law as of March 31,2007) amounted to ¥986,577 million ($9,585,871 thousand) and ¥957,724 million as of March 31, 2014 and 2013,
respectively.
(2) The principal amounts promised to be indemnified for money trusts which are entrusted to domestic consolidated trust
banking subsidiaries, were ¥749,550 million ($7,282,846 thousand) and ¥706,390 million as of March 31, 2014 and2013, respectively.

Financial Data of Mizuho Financial Group, Inc. —32

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

26. Deferred Tax Assets and Liabilities(1) Deferred Tax Assets and Liabilities consisted of the following:
Millions of yen
2014

As of March 31,

Deferred Tax Assets:
Tax Losses Carried Forward
Devaluation of Securities
Reserves for Possible Losses on
Loans
Securities Contributed to
Employee Retirement Benefit
Trust
Other

¥

Deferred Tax Assets Subtotal:
Valuation Allowance
Total
Deferred Tax Liabilities:
Prepaid Pension Cost
Net Defined Benefit Asset
Net Unrealized Gains on Other
Securities
Other
Total
Net Deferred Tax Assets

139,463
217,797¥2013

140,333
461,953

Thousands of U.S. dollars
2014$

1,355,070
2,116,181

229,671

288,066

2,231,558

212,273
201,350

203,849
261,539

2,062,506
1,956,383

1,000,557(399,648)

1,355,741(711,077)

9,721,698(3,883,097)¥

600,908¥

644,664$

5,838,601¥―(146,897)¥(141,313)―$―(1,427,298)(307,491)(92,394)(260,535)(131,736)(2,987,675)(897,726)¥(546,783)¥(533,586)$(5,312,699)¥

54,125¥

111,078$

525,902

Notes: 1. In addition to the balances shown in the above table, there is an equivalent amount of deferred tax assets
corresponding to tax losses carried forward of ¥309,462 million ($3,006,821 thousand) and ¥309,682 million as ofMarch 31, 2014 and 2013, respectively.
Since the tax losses carried forward resulted from transactions among consolidated subsidiaries, the deferred tax
assets in the above table and in the consolidated balance sheet exclude the equivalent amount of deferred tax
assets.
2. MHFG and domestic subsidiaries are subject to a number of different income taxes.
(2) For the fiscal years ended March 31, 2014 and 2013, the reconciliation of the statutory tax rate of MHFG to theeffective income tax rate was as follows:
For the Fiscal Year ended March 31,

Statutory Tax Rate
Adjustments
Change in Valuation Allowance
Permanent Differences (e.g., Cash Dividends
Received)
Tax Rate Differences between theConsolidated Subsidiaries
Adjustment to reduce the amount of deferred
tax assets at the end of period due tochanges in tax rates
Other
Effective Income Tax Rate

33—Financial Data of Mizuho Financial Group, Inc.

2014

2013

38.01%

38.01%(11.72)(24.38)(2.46)(2.50)(5.73)(9.51)

0.89
2.83

—
6.46

21.82%

8.06%

(3) The revision of the amount of deferred tax assets and deferred tax liabilities due to the change in tax rate of thecorporate tax, etc:
“Act on Partial Amendment to the Income Tax Act” (Act No. 10, 2014) was promulgated on March 31, 2014, andaccordingly, Special Corporate Tax for Reconstruction has been abolished from the fiscal year beginning on or after
April 1, 2014.
Due to this change, the effective statutory tax rate used for the calculation of deferred tax assets and deferred tax
liabilities for the temporary differences, expected to be either deductible, taxable or expired in the fiscal year beginningon April 1, 2014, has been revised from the previous rate of 38.01% to 35.64%.
As a result of this change in tax rate, Deferred Tax Assets decreased by ¥7,651 million ($74,349 thousand), Net
Unrealized Gains on Other Securities increased by ¥1,148 million ($11,163 thousand), and Deferred Income Taxes
increased by ¥8,773 million ($85,250 thousand).

27. Revaluation of Land
In accordance with the Land Revaluation Law (Proclamation No.34 dated March 31, 1998), land used for business
operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess
of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder,
net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.
Revaluation date: March 31, 1998
Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations wasrevalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 4 of
the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance No.119 promulgated on
March 31, 1998) with reasonable adjustments to compensate for sites with long depth and other factors, and also on
the basis of the appraisal valuation stipulated in Paragraph 5.
The difference at the consolidated balance sheet date between the total fair value of land for business operation
purposes, which has been revalued in accordance with Article 10 of the above-mentioned law, and the total bookvalue of the land after such revaluation was ¥156,731 million ($1,522,848 thousand) and ¥163,523 million as ofMarch 31, 2014 and 2013, respectively.

Financial Data of Mizuho Financial Group, Inc. —34

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

28. Common Stock and Preferred Stock
Common Stock and Preferred Stock at March 31, 2014 and 2013 were as follows:
Number of shares
As of March 31, 2014
Class of stock

Common Stock
Eleventh Series Class XI
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,263,885,187
914,752,000

914,752,000

Per share (Yen)Interimcash
dividend¥

Year-end
cash Liquidation
dividend
value

3 ¥

3.5 ¥

10

10

Convertible
or notWith
Redemption
or not

—

No

No

1,000

Yes

No

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
10,637 thousand shares
Eleventh Series Class XI Preferred Stock602,100 thousand shares
2. All of the shares of the Thirteenth Series Class XIII Preferred Stock were acquired and cancelled on July 11,
2013. Accordingly, the common stock shareholders approved an amendment to the Articles of Incorporationaccompanied by a decrease in the total number of authorized shares and the total number of authorized sharesof the Class XIII preferred stock at the Ordinary General Meeting of Shareholders of MHFG held on June 24,
2014.
As a result of the amendment, each total number of authorized shares, effective on the same day, shall be as
follows:
Common Stock
48,000,000 thousand shares
Eleventh Series Class XI Preferred Stock914,752 thousand sharesFirst Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.

35—Financial Data of Mizuho Financial Group, Inc.

Number of shares
As of March 31, 2013
Class of stock

Common Stock
Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Authorized

Issued andoutstanding

48,000,000,000 24,164,864,477

Per share (Yen)Interimcash
dividend

Year-end
cash Liquidation
dividend
value

¥

¥

3

3

¥

Convertible
or notWith
Redemption
or not—NoNo1,369,512,000

914,752,000

10

10

1,000

Yes

No

1,500,000,000

36,690,000

15

15

1,000

No

Yes

Notes: 1.Treasury Stock and stocks held by subsidiaries and affiliates are not excluded. The numbers are as follows:
Common Stock
19,824 thousand shares
Eleventh Series Class XI Preferred Stock574,087 thousand shares
2.The common stock shareholders approved an amendment to the Articles of Incorporation accompanied by adecrease in authorized shares of Class XI preferred stock, Class XIII preferred stock and the total number ofauthorized shares, a deletion of the provisions regarding unissued Class XII preferred stock, and an issue ofClass XIV preferred stock, Class XV preferred stock and Class XVI preferred stock at the 11th Ordinary General
Meeting of Shareholders of MHFG held on June 25, 2013, and the preferred stock shareholders resolved theamendment at the general meeting held on June 27, 2013.
As a result of the amendment, each total number of authorized shares, effective on June 27, 2013, shall be as
follows:
Common Stock
48,000,000 thousand shares
Eleventh Series Class XI Preferred Stock914,752 thousand shares
Thirteenth Series Class XIII Preferred Stock
36,690 thousand sharesFirst Series Class XIV Preferred Stock
900,000 thousand shares
Second Series Class XIV Preferred Stock
900,000 thousand shares
Third Series Class XIV Preferred Stock
900,000 thousand shares
Fourth Series Class XIV Preferred Stock
900,000 thousand sharesFirst Series Class XV Preferred Stock
900,000 thousand shares
Second Series Class XV Preferred Stock
900,000 thousand shares
Third Series Class XV Preferred Stock
900,000 thousand shares
Fourth Series Class XV Preferred Stock
900,000 thousand sharesFirst Series Class XVI Preferred Stock
1,500,000 thousand shares
Second Series Class XVI Preferred Stock
1,500,000 thousand shares
Third Series Class XVI Preferred Stock
1,500,000 thousand shares
Fourth Series Class XVI Preferred Stock
1,500,000 thousand shares
The total number of shares of the First to Fourth Series Class XIV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XV Preferred Stock, which are authorized to beissued, shall not exceed 900,000,000 in total.
The total number of shares of the First to Fourth Series Class XVI Preferred Stock, which are authorized to beissued, shall not exceed 1,500,000,000 in total.
3. All of the shares of the Thirteenth Series Class XIII Preferred Stock will be acquired on July 11, 2013 and,subject to the acquisition, will be cancelled.

Financial Data of Mizuho Financial Group, Inc. —36

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

29. Stock Options(1) Total amount of stock options expensed were as follows:
Millions of yen
2014

For the Fiscal Years ended March 31,

General and administrative expenses
Total

2013

Thousands of U.S. dollars
2014¥ 1,527¥ 1,333$14,844¥ 1,527¥ 1,333$14,844(2) Outline of stock options and changes
For the fiscal year ended March 31, 2014(i) Outline of stock options
As of March 31, 2014

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030

37—Financial Data of Mizuho Financial Group, Inc.

As of March 31, 2014

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

Fourth Series of Stock
Acquisition Rights of MHFG

Fifth Series of Stock
Acquisition Rights of MHFG

Sixth Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

6 Directors
Executive
6
Officers
Directors of
26 subsidiaries of
MHFG
Executive
Officers of
130
subsidiaries of
MHFG

6 Directors
Executive
11
Officers
Directors of
23 subsidiaries of
MHFG
Executive
Officers of150
subsidiaries of
MHFG

Common stock

12,452,000 Common stock

11,776,000 Common stock

6

36
22

134
7,932,000

December 8, 2011
August 31, 2012
February 17, 2014
The grantee may exercise the Stock Acquisition Rights which The grantee may exercise thehave been allotted based on his or her capacity as a Director Stock Acquisition Rights which
or an Executive Officer of MHFG, MHBK, MHCB, MHTB or
have been allotted based on
MHSC immediately following the date on which such grantee his or her capacity as aloses the status as a Director or an Executive Officer of MHFG, Director or an Executive Officer
MHBK, MHCB, MHTB or MHSC.
of MHFG, MHBK, MHTB or
MHSC immediately following
the date on which such grantee
loses the status as a Director
or an Executive Officer of
MHFG, MHBK, MHTB or
MHSC.
April1, 2011
April 1, 2012
April 1, 2013
to March 31, 2012
to March 31, 2013
to March 31, 2014
December 9, 2011
September 3, 2012
February 18, 2014
to December 8, 2031
to August 31, 2032
to February 17, 2034

*1: Shown in number of shares

Financial Data of Mizuho Financial Group, Inc. —38

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year
ended
March 31, 2014

Non-vested
As of March 31,
2013
GrantedForfeited
VestedOutstanding
VestedAs of March 31,
2013
VestedExercised
Forfeited
Outstanding

First Series of Second Series of Third Series of Fourth Series of
Stock
Stock
Stock
Stock
Acquisition
Acquisition
Acquisition
Acquisition
Rights of MHFG Rights of MHFG Rights of MHFG Rights of MHFG

Fifth Series ofSixth Series of
Stock
Stock
Acquisition
Acquisition
Rights of MHFG Rights of MHFG

648,000－－
303,000
345,000

1,374,000－－
634,000
740,000

2,452,000－－
1,222,000
1,230,000

7,452,000－－
3,061,000
4,391,000

11,208,000－－
3,933,000
7,275,000－
7,932,000－－
7,932,000

40,000303,000
261,000－
82,00064,000634,000
519,000－
179,000

81,0001,222,000
1,076,000－
227,000

216,000
3,061,000
3,195,000－
82,000

328,000
3,933,000
4,201,000－
60,000－－－－－First Series of Second Series of Third Series of Fourth Series of
Stock
Stock
Stock
Stock
Acquisition
Acquisition
Acquisition
Acquisition
Rights of MHFG Rights of MHFG Rights of MHFG Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share

Fifth Series ofStock
Acquisition
Rights of MHFG

Sixth Series ofStock
Acquisition
Rights of MHFG¥

214.08¥213.78¥213.63¥212.06¥212.27¥－¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share¥

192.61
per share

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2014

Exercise price
Average stock priceupon exercise
Fair value at grantdate¥ 1 per share¥ 1 per share(iii) Calculation for fair value of stock options
The fair value of Sixth Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2014
was calculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2014

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Sixth Series of Stock Acquisition Rights of MHFG

28.156%
2.46years¥ 6.5 per share
0.081%*1: Historical volatility calculated from MHFG stock prices over the 128 weeks ending on the business day (February 14, 2014) prior to the
grant date, an interval equivalent to the estimated remaining outstanding period of 2.46 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2014.
*4: Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

39—Financial Data of Mizuho Financial Group, Inc.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be
forfeited in the future cannot be readily estimated.

For the fiscal year ended March 31, 2013(i) Outline of stock options
As of March 31, 2013

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

As of March 31, 2013

Number of grantees

Number of stock
options*1
Grant dateCondition for vesting

Required service
periodExercise period

First Series of Stock
Acquisition Rights of MHFG

Second Series of Stock
Acquisition Rights of MHFG

Third Series of Stock
Acquisition Rights of MHFG

Directors
Executive
Officers
Directors ofsubsidiaries of
MHFG
Executive
Officers ofsubsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

4 Directors
Executive
4
Officers
Directors of
14 subsidiaries of
MHFG
Executive
Officers of71
subsidiaries of
MHFG

Common stock

5,409,000 Common stock

5,835,000 Common stock

4
4

12

71
6,808,000

February 16, 2009
September 25, 2009
August 26, 2010
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK or MHCB immediately
following the date on which such grantee loses the status as a Director or an Executive Officer
of MHFG, MHBK or MHCB.
July 1, 2008
April 1, 2009
April 1, 2010
to March 31, 2009
to March 31, 2010
to March 31, 2011
February 17, 2009
September 28, 2009
August 27, 2010
to February 16, 2029
to September 25, 2029
to August 26, 2030
Fourth Series of Stock
Acquisition Rights of MHFG

6 Directors
6 Executive Officers
Directors of subsidiaries of26
MHFG
Executive Officers of
130
subsidiaries of MHFG

Directors
Executive Officers
Directors of subsidiaries of
MHFG
Executive Officers ofsubsidiaries of MHFG
Common stock

Fifth Series of Stock
Acquisition Rights of MHFG

12,452,000 Common stock

6
11
23
150

11,776,000

December 8, 2011
August 31, 2012
The grantee may exercise the Stock Acquisition Rights which have been allotted based on his
or her capacity as a Director or an Executive Officer of MHFG, MHBK, MHCB, MHTB or MHSC
immediately following the date on which such grantee loses the status as a Director or an
Executive Officer of MHFG, MHBK, MHCB, MHTB or MHSC.
April 1, 2011 to March 31, 2012
April 1, 2012 to March 31, 2013
December 9, 2011 to December 8, 2031

September 3, 2012 to August 31, 2032

*1: Shown in number of shares

Financial Data of Mizuho Financial Group, Inc. —40

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(ii) Size of stock options and changes(a) Number of stock options (in shares)
For the Fiscal Year ended
March 31, 2013

Non-vested
As of March 31, 2012
GrantedForfeited
VestedOutstanding
VestedFirst Series ofStock Acquisition
Rights of MHFG

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

951,000－－
303,000
648,000

1,940,000－－
566,000
1,374,000

3,834,000－－
1,382,000
2,452,000

12,232,000－－
4,780,000
7,452,000－
11,776,000
39,000529,000
11,208,000

40,000303,000
303,000－
40,000129,000
566,000
631,000－
64,000

192,000
1,382,000
1,493,000－
81,000173,000
4,780,000
4,737,000－
216,000－
529,000
201,000－
328,000

Second Series ofStock Acquisition
Rights of MHFG

Third Series ofStock Acquisition
Rights of MHFG

Fourth Series ofStock Acquisition
Rights of MHFG

Fifth Series ofStock Acquisition
Rights of MHFG

As of March 31, 2012
VestedExercised
Forfeited
Outstanding

Note: The above table is shown in number of shares.
(b) Price information

As of March 31, 2013

Exercise price
Average stock priceupon exercise
Fair value at grant date

First Series ofStock Acquisition
Rights of MHFG

¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share¥ 1 per share¥

126.33¥127.05¥126.25¥128.38¥166.46¥190.91
per share¥

168.69per share¥

119.52
per share¥

91.84
per share¥

113.25per share(iii) Calculation for fair value of stock options
The fair value of Fifth Series of Stock Acquisition Rights of MHFG granted in the fiscal year ended March 31, 2013 wascalculated as follows:●

Calculation method: The Black-Scholes Model●

Assumptions used in calculation
As of March 31, 2013

Volatility of stock price*1
Estimated remaining outstanding period*2
Expected dividend*3
Risk-free interest rate*4

Fifth Series of Stock Acquisition Rights of MHFG

29.299%2.42years¥ 6 per share
0.100%*1: Historical volatility calculated from MHFG stock prices over the 126 weeks ending on the business day (August 30, 2012) prior to the grantdate, an interval equivalent to the estimated remaining outstanding period of 2.42 years.
*2: The average period of service of directors at MHFG.
*3: The expected dividend on common stock for the fiscal year ended March 31, 2013.
*4: Japanese government bond yield applicable to the estimated remaining outstanding period of the stock options.

(iv) Estimated number of stock options to be vested
Only the number of stock options actually forfeited is reflected because the number of stock options that will be
forfeited in the future cannot be readily estimated.

41—Financial Data of Mizuho Financial Group, Inc.

30. Interest Income and Interest Expenses
Millions of yen
2014

For the Fiscal Years ended March 31,

Interest Income:Loans and Bills Discounted
Securities
Call Loans and Bills Purchased
Due from Banks
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Interest Income
Total
Interest Expenses:
Deposits
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Borrowed Money
Other Interest Expenses¥

920,295
324,340
6,013
35,771¥

2013

917,263
323,901
5,548
21,527

Thousands of U.S. dollars
2014$

8,941,857
3,151,386
58,427
347,566

29,602

52,394

287,631

7,664
93,88010,64790,32674,473
912,173¥ 1,417,569¥ 1,421,609$ 13,773,513

¥

¥

$

133,876
7,731

129,1677,865

1,300,780
75,11827,94753,667

271,544

9,860
1,826
26,527
101,497

19,065
1,676
29,796
104,471

95,804
17,746
257,750
986,182

Total

¥

Net

¥ 1,108,303

309,266¥

345,710¥ 1,075,898$

3,004,924$ 10,768,589

Financial Data of Mizuho Financial Group, Inc. —42

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

31. Trading Income and Trading Expenses
Millions of yen
2014

2013

Thousands of U.S. dollars
2014¥ 137,351¥ 166,122$ 1,334,546

51,66848,911

502,027¥ 189,020¥ 215,033$ 1,836,573

For the Fiscal Years ended March 31,

Trading Income:Net Gains on Trading Securities
Net Gains on Derivatives for
Trading Transactions
Total
Trading Expenses:
Net Losses on Trading Securities

1,598

Total

¥

1,598

Net

¥ 187,421—¥—

15,536$

15,536¥ 215,033$ 1,821,037

2013

Thousands of U.S. dollars
2014

32. Other Operating Income
Millions of yen
2014

For the Fiscal Years ended March 31,

Gains on Foreign Exchange
Transactions
Gains on Sales of Bonds
Other
Total

¥

74,672
118,865
61,883¥ 255,422¥

89,999272,945
50,212$

725,543
1,154,934
601,277¥ 413,157$ 2,481,754

2013

Thousands of U.S. dollars
2014

33. Other Operating Expenses
Millions of yen
2014

For the Fiscal Years ended March 31,

Losses on Sales of Bonds
Expenses on Derivatives other thanfor Trading or Hedging
Losses on Devaluation of Bonds
Other
Total

¥

72,070

¥

6,466
9,717
40,392¥ 128,647¥

43,329$700,261

4,145
8,117
32,666

62,835
94,418392,467

88,258$ 1,249,981

2013

Thousands of U.S. dollars
2014

34. Other Income
For the Fiscal Years ended March 31,

Reversal of Reserves for Possible
Losses on Loans
Gains on Sales of Stock
Income from Matured Debentures
Recovery on Written-off Loans
Gains on Step Acquisitions
Gains on Disposition of Fixed
AssetsGains on Negative Goodwill
Incurred
Other
Total

43—Financial Data of Mizuho Financial Group, Inc.

Millions of yen
2014¥ 103,690
87,47750,39025,1606,891¥—
86,25635,754
26,914—$

1,007,490
849,958
489,604
244,470
66,962

428

1,032

4,165

5,621
64,614—
48,10554,619627,811¥ 344,275¥

198,063$

3,345,079

35. Other Expenses
Millions of yen
2014

For the Fiscal Years ended March 31,

Write-offs of Loans
Provision for Reserves for
Reimbursement of Debentures
Head Office Relocation Expenses
Losses on Disposition of Fixed
Assets
Losses on Impairment of Fixed
AssetsMerger Expenses of the Securities
Subsidiaries
Other

¥

Total

¥

22,431

2013¥

49,747

Thousands of U.S. dollars
2014$

217,954

19,538
14,587

15,224—

189,844
141,733

6,929

7,263

67,324

6,506

11,912

63,224

1,656
64,312

14,415
308,736

16,094
624,880

135,962¥

407,299$

1,321,053

36. Comprehensive Income
Reclassification adjustments and the related tax effects concerning Other Comprehensive Income
Millions of yen
2014

2013

Thousands of U.S. dollars
2014¥ 314,090¥ (130,934)¥ 183,156¥ (48,132)¥ 135,024¥ 937,087¥ (150,860)¥ 786,226¥ (210,295)¥ 575,930$ 3,051,796$ (1,272,197)$ 1,779,599$ (467,667)$ 1,311,932¥ (97,898)¥ (36,274)¥(8,217)¥ (142,390)¥
50,771¥ (91,618)

¥
¥
¥
¥
¥

61,966(34,697)—
27,269(9,915)
17,353$ (951,210)$ (352,454)$(79,839)$ (1,383,503)$
493,308$ (890,195)

¥
¥

—
—
—
(41)
(41)

—
—
—
39
39

For the Fiscal Years ended March 31,

Net Unrealized Gains on Other Securities:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Net Unrealized Gains on Other Securities
Deferred Gains or Losses on Hedges:
The amount arising during the period
Reclassification adjustments
Adjustment to acquisition cost of assets
Before adjustments to tax effects
The amount of tax effects
Deferred Gains or Losses on Hedges
Revaluation Reserve for Land:
The amount arising during the period
Reclassification adjustments
Before adjustments to tax effects
The amount of tax effects
Revaluation Reserve for Land
Foreign Currency Translation Adjustments:
The amount arising during the period
Reclassification Adjustments
Before adjustments to tax effects
The amount of tax effects
Foreign Currency Translation Adjustments
Share of Other Comprehensive Income of Associates
Accounted for Using Equity Method:
The amount arising during the period
The total amount of Other Comprehensive
Income

¥
¥
¥

—
—
—
3
3

¥

15,979—15,979—15,979

¥
¥

¥

¥

$
$

¥

4,731
—
4,731
—
4,731

$

155,264—
155,264—
155,264

3,142¥

12,864$30,53062,531¥

610,839$

607,570¥$$

Financial Data of Mizuho Financial Group, Inc. —44

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

37. Changes in Net Assets
For the fiscal year ended March 31, 2014(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
StockThirteenth Series Class XIII Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
StockThirteenth Series Class XIII Preferred
Stock
Total

As of
April 1, 2013

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2014

Remarks

24,164,864

99,020—24,263,885*1

914,752——

914,752

36,690—36,690—25,116,306

99,02036,69025,178,637*2

22,128

1,472

9,783

13,817*3

574,087

28,012—602,100*4—

36,69036,690—*5596,216

66,17546,473615,918*1 Increases are due to request for acquisition (conversion) of preferred stock.
*2 Decreases are due to cancellation of treasury stock (preferred stock).
*3 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights(stock option) (9,252 thousand shares) and repurchase of shares constituting less than one unit and other factors (531 thousand shares).
*4 Increases are due to request for acquisition (conversion) of preferred stock.
*5 Increases and decreases are due to repurchase and cancellation of treasury stock (preferred stock).

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstockacquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated
subsidiaries (Treasury
stock acquisition rights)

Class ofshares to
be issuedortransferred
upon
exercise ofstock
acquisitionrights－

Total

45—Financial Data of Mizuho Financial Group, Inc.

Number of shares to be issued or transferred
upon exercise of stock acquisition rights(Shares)

As ofApril 1,
2013

Increaseduringthe fiscal
year

Decreaseduringthe fiscal
year

As of
March
31, 2014

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,
2014
(Millions of
yen)

¥

－
(－)

Balance asof March
31, 2014(Thousandsof
U.S.dollars)

$

－
(－)

－

3,179

30,897

－

－
(－)

－
(－)

－

¥ 3,179(－)$ 30,897(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2014

Resolution

Type

Cash
Dividends(Millions ofyen)June 25,
2013

Common Stock¥(

Eleventh Series Class XI
Preferred StockThirteenth Series ClassXIII Preferred Stock

Ordinary
GeneralMeeting of
Shareholders)

November 14,
Common Stock2013(

The Board of
Directors)¥

Eleventh Series Class XI
Preferred Stock

Total

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Dividends
Dividends
per Shareper Share(Yen) (U.S. dollars)

72,435$ 703,800

¥3

3,406

33,100

10

550

5,348

15

72,562$ 705,036

¥3

3,310

32,16810¥ 152,265$ 1,479,452/$ 0.03

RecordDate

Effective
Date

March 31,2013

March 31,2013
March 31,0.15
2013
September 30,$ 0.032013

June 25,
2013

0.10

September 30,
0.10
2013

December 6,
2013/

Cash dividends with record dates falling in the fiscal year ended March 31, 2014 and effective dates coming after the endof the fiscal year

Resolution

June 24,
2014(

Ordinary
GeneralMeeting of
Shareholders

Total

)

Type

Cash
Dividends(Millions of
yen)

Cash
Dividends(Thousand of
U.S. dollars)

Cash
Cash
Resource Dividends
Dividends
of per Shareper Share
Dividends(Yen) (U.S. dollars)Common Stock¥$ 824,780

Retained
Earnings¥ 3.5

Retained
Earnings

10

0.10

/

/

Eleventh Series Class XI
Preferred Stock¥84,886

3,126

30,37888,012$ 855,158

Record Effective
Date
Date

$ 0.03 March 31,
2014

June 24,2014
March 31,2014

Financial Data of Mizuho Financial Group, Inc. —46

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

For the fiscal year ended March 31, 2013(i) Types and number of issued shares and of treasury stock are as follows:
Thousands of Shares

Issued shares
Common stock
Eleventh Series Class XI Preferred
StockThirteenth Series Class XIII Preferred
Stock
Total
Treasury stock
Common stock
Eleventh Series Class XI Preferred
Stock
Total

As of
April 1, 2012

Increase during
the fiscal year

Decrease during
the fiscal year

As of
March 31, 2013

Remarks

24,048,165

116,698—

24,164,864*1

914,752——

914,752

36,690——36,69024,999,607

116,698—

25,116,306

37,0462,644

17,562

22,128*2541,073

33,014—574,087*3

578,120

35,65817,562596,216*1 Increases are due to request for acquisition (conversion) of preferred stock.
*2 Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to disposition of shares held by a
subsidiary (9,256 thousand shares), exercise of stock acquisition rights (stock option) (7,365 thousand shares), and repurchase of shares constituting lessthan one unit (940 thousand shares).
*3 Increases are due to request for acquisition (conversion) of preferred stock.

(ii) Stock acquisition rights and treasury stock acquisition rights are as follows:

Category

MHFG

Breakdown ofstock acquisitionrightsStockacquisitionrights(Treasurystock
acquisitionrights)Stockacquisitionrights as
stock option
Consolidated subsidiaries(Treasury stockacquisition rights)

Class ofshares to beissued ortransferred
upon
exercise ofstock
acquisitionrights

Total

47—Financial Data of Mizuho Financial Group, Inc.

－

Number of shares to be issued or transferred upon
exercise of stock acquisition rights (Shares)

As ofApril 1,
2012

Increaseduring the
fiscal year

Decreaseduring the
fiscal year

As of
March 31,
2013

－
(－)

－
(－)

－
(－)

－
(－)

Balance as ofMarch 31,2013
(Millions of yen)

¥

－
(－)

－

2,687

－

－
(－)

－

¥ 2,687(－)

Remarks

(iii) Cash dividends distributed by MHFG are as follows (non-consolidated basis):
Cash dividends paid during the fiscal year ended March 31, 2013

Resolution

Type

June 26,
2012

Common Stock(

Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Ordinary
General Meeting of
Shareholders)

November 14,
2012(

Common Stock)

The Board of
Directors

Cash Dividends(Millions of yen)¥

72,063

¥3

3,736

10

550

15

72,107

¥3

3,714

10

550

15

¥ 152,722/¥

Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock

Total

Cash
Dividends
per Share(Yen)

RecordDate

Effective
Date

March 31,2012
March 31,2012
March 31,2012
September 30,
2012
September 30,
2012
September 30,
2012

June 26, 2012

December 7,
2012Cash dividends with record dates falling in the fiscal year ended March 31, 2013 and effective dates coming after the endof the fiscal year

Resolution

Type

June 25,
2013

Common Stock(

Ordinary
GeneralMeeting of
Shareholders

Total

)

Cash Dividends(Millions of yen)¥

Eleventh Series Class XI
Preferred StockThirteenth Series Class XIII
Preferred Stock72,435
3,406
550

¥

76,392

Cash
Dividends per
Resource of
Share
Dividends(Yen)

Retained
Earnings
Retained
Earnings
Retained
Earnings¥3
10
15

RecordDate

Effective
Date

March 31,2013
March 31,2013
March 31,2013

June 25,
2013/

Financial Data of Mizuho Financial Group, Inc. —48

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

38. Cash Flows
Cash and Cash Equivalents on the consolidated statement of cash flows reconciles to Cash and Due from Banks on the
consolidated balance sheet as follows:
As of March 31,

Millions of yen
2014

2013

Thousands of U.S. dollars
2014¥ 12,333,997$200,255,313

Cash and Due from Banks
Less: Due from Banks excluding
due from Central Banks¥ 20,610,276(1,177,851)(986,459)(11,444,338)

Cash and Cash Equivalents¥ 19,432,425¥ 11,347,537$188,810,975

49—Financial Data of Mizuho Financial Group, Inc.

39. Lease Transactions
Finance Leases (Lessees)
Finance lease transactions that do not transfer ownership:(1) Lease Assets:• Tangible fixed assets: mainly equipment• Intangible fixed assets: software(2) The method for computing the amount of depreciation is described in “5 Standards of Accounting Method (8) Lease
Assets.”Operating Leases
The future lease payments subsequent to the end of the fiscal year for noncancelable operating lease transactions are
summarized as follows:
Lessees:Millions of yen
2014

As of March 31,

Due in One Year or Less
Due after One Year
Total

2013

Thousands of U.S. dollars
2014¥

48,233
211,167¥

43,12973,374$

468,653
2,051,762¥

259,401¥

116,503$ 2,520,415

2013

Thousands of U.S. dollars
2014

Lessors:
Millions of yen
2014

As of March 31,

Due in One Year or Less
Due after One Year
Total

¥

820
4,447

¥

822
4,260

$

7,969
43,215

¥

5,267

¥

5,082

$

51,184

Financial Data of Mizuho Financial Group, Inc. —50

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

40. Financial Instruments
1. Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments

Mizuho Financial Group (MHFG), which primarily engages in banking business, incurs financial liabilities such as
customer deposits and market deposits on the funding side while holding financial assets such as customer loans, stocks
and bonds on the investment side, and also engages in trading business for certain financial products. Some majorityowned consolidated subsidiaries and other subsidiaries conduct securities business and other financial business.
For above funding and investment business, MHFG appropriately manages risks of each financial instrument andcarefully watches term-gaps and other risk factors.

(2) Contents and Risk of Financial Products

The main financial assets of the Mizuho group consist of loans to customers and securities such as Japanese stocks andgovernment bonds. The Group holds these securities for the purpose of reserves for deposit payments and as
investments. These financial assets are subject to various types of risk that may be incurred by the Group due to a
decline in, or total loss of, the value of assets, as a result of deterioration in a counterparty’s and an issuer’s financial
position (“credit risk”), or incurred by the Group due to fluctuations in interest rates, stock prices and foreign exchange
rates and so on (“market risk”).
The main financing source of the Mizuho group is a stable source of deposits from its customers in addition to direct
funding from the financial market. These financing sources are subject to the risk of losses (“liquidity risk”) arising fromfunding difficulties due to market disruption or a deterioration in our financial position that makes it difficult for us to raise
the necessary funds or that forces us to raise funds at significantly higher interest rates than usual.
In addition, the Mizuho group uses derivative financial products to control the interest rate risk related to the assets
and liabilities of the Group, as part of our asset and liability management (“ALM”). The Group primarily utilizes theportfolio hedge by grouping numerous financial assets and liabilities such as loans and deposits into similar interest risk
units in accordance with risk management policies. Some derivative products like interest rate swaps are used as
hedging methods for cash-flow hedges or fair value hedges. The Group applies hedge accounting to the majority ofthese products, treating them as deferred hedges. The effectiveness of the hedges is assessed periodically byregression analysis and other methods to ensure whether the derivative financial products effectively work in order tooffset the exposure to changes in fair value and variable cash flows from hedged items. It should be noted that theMizuho group uses derivative financial products for trading purposes and so on as well.
Progress in financial deregulation and internationalization has led to growth in the diversity and complexity of financial
assets and liabilities of the Mizuho group, exposing the Group to various risks, including credit risk, liquidity risk andother risks.

(3) Risk Management for Financial Products(a) Commitment to Risk Management
We recognize the conducting of operations tailored to the risks and managing such risks as a key issue relating tooverall management. In order to implement our business strategy while maintaining our financial stability, we
maintain comprehensive risk management and control measures.
We maintain basic policies for risk management established by our board of directors that are applicable to theentire Mizuho group. These policies clearly define the kinds of risks to be managed, set forth the organizational
structure and provide for the human resources training necessary for appropriate levels of risk management. The
policies also provide for audits to measure the effectiveness and suitability of the risk management structure. In linewith these basic policies, we maintain various measures to strengthen and enhance the sophistication of our risk
management system.
(b) General Concept of Risk Management
We classify our risk exposures according to the various kinds of risk, including credit risk, market risk, liquidity risk
and operational risk, and manage each type of risk according to its characteristics.
In addition to managing each type of risk individually, we have established a risk management structure to identify
and evaluate overall risk and, where necessary, to devise appropriate responses to keep risk within limits that aremanagerially acceptable in both qualitative and quantitative terms.

51—Financial Data of Mizuho Financial Group, Inc.

More specifically, we allocate risk capital to our principal banking subsidiaries, including their respective
subsidiaries, and other core group companies to control risk within the limits set for each company. We also control
risk within managerially acceptable limits by working to ensure that the overall risk we hold on a consolidated basis
does not exceed shareholders’ equity and other measures of financial strength. To ensure the ongoing financial
health of Mizuho Financial Group, our principal banking subsidiaries and other core group companies, we regularly
monitor the manner in which risk capital is being used in order to obtain a proper grasp of the risk profile within thisframework. Reports are also submitted to the board of directors and other committees of each company.
(c) Credit Risk Management
We have adopted two different but mutually complementary approaches in credit risk management. The first
approach is “credit management,” in which we manage the process for each individual transaction and individual
obligor from execution until collection, based on our assessment of the credit quality of the customer. Through thisprocess, we curb losses in the case of a credit event. The second is “credit portfolio management,” in which weutilize statistical methods to assess the potential for losses related to credit risk. Through this process, we identify
credit risk and respond appropriately.
Our board of directors determines the Mizuho group’s key matters pertaining to credit risk management while theirChief Executive Officers are responsible for controlling credit risk. In addition, we have established the Portfolio
Management Committee as one of its business policy committees. This committee of Mizuho Financial Groupdiscusses and coordinates basic policy in connection with credit risk management and matters in connection withoverall credit portfolio management and credit risk monitoring for the Mizuho group. Under the control of the Chief
Risk Officer of Mizuho Financial Group, the Risk Management Division and the Credit Risk Management Division
jointly monitor, analyze and submit suggestions concerning credit risk and formulate and execute plans inconnection with basic matters pertaining to credit risk management.
We use statistical methods to manage the possibility of losses by measuring the expected average loss for a oneyear risk horizon (“expected loss”) and the maximum loss within a certain confidence interval (“credit VAR”). The
difference between expected loss and credit VAR is measured as the credit risk amount (“unexpected loss”). We
recognize two types of risk arising from allowing too large a proportion of overall credit risk to be allocated in certain
areas. One type is “credit concentration risk,” which stems from granting excessive credit to certain individual
counterparties or corporate groups. The other type is “chain-reaction default risk,” which arises from granting
excessive credit to certain areas, industrial sectors and other groupings.We manage these risks appropriately in linewith our specific guidelines for each.
The board of directors of each of our principal banking subsidiaries and other core group companies determines
key matters pertaining to credit risk in line with basic policies set forth by Mizuho Financial Group. Their respective
business policy committees are responsible for discussing and coordinating overall management of their individual
credit portfolios and transaction policies towards obligors.
The chief risk officer of each principal banking subsidiary and core group company is responsible for mattersrelating to planning and implementing credit risk management. The credit risk management division of each principal
banking subsidiary is responsible for planning and administering credit risk management and conducting credit risk
measuring and monitoring. Each credit division determines policies and approves/disapproves individualtransactions regarding review and management of and collection from customers in accordance with the lines ofauthority set forth by each principal banking subsidiary. In addition, from the standpoint of internal controls, each of
our principal banking subsidiaries has also established internal audit divisions that are independent of the businessdivisions in order to ensure appropriate credit risk management.
(d) Market Risk Management
The board of directors of Mizuho Financial Group determines key matters pertaining to market risk management
policies. In addition, we have established the ALM & Market Risk Committee as one of its business policy
committees. The committee broadly discusses and coordinates matters relating to basic asset and liability
management policies, risk planning and market risk management and proposes responses to emergencies such assudden market changes.
The Chief Risk Officer of Mizuho Financial Group is responsible for matters relating to market risk management
planning and operations. The Risk Management Division of Mizuho Financial Group is responsible for monitoringmarket risk, reports and analyses, proposals, setting limits and guidelines, and formulating and implementing plans
relating to market risk management. In addition, the division assesses and manages the overall market risk of theMizuho group as a whole and keeps track of the market risk situation of our principal banking subsidiaries and other

Financial Data of Mizuho Financial Group, Inc.—52

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

core group companies. The division also submits reports to the Chief Executive Officer on a daily basis and to ourboard of directors and the executive management committee of Mizuho Financial Group on a regular basis.
To manage market risk, we set limits that correspond to risk capital allocations. The amount of risk capital
allocated to market risk corresponds to VAR and additional costs that may arise in order to close relevant positions.
For trading and banking activities, we set limits for VAR and for losses. For banking activities, we set position limits
based on interest rate sensitivity as needed.
Our principal banking subsidiaries and certain other core group companies have formulated their basic policies inline with the basic policies determined by Mizuho Financial Group. Their boards of directors determine importantmatters relating to market risk management while their Chief Executive Officers are responsible for controllingmarket risk. Based on a common Mizuho Group risk capital allocation framework, the above-mentioned companies
manage market risk by setting limits according to the risk capital allocated to market risk by Mizuho Financial Group.
Our principal banking subsidiaries and certain other core group companies have the same market risk
management structure as the Mizuho Financial Group, such as their business policy committees being responsible
for overall discussion and coordination of the market risk management, including their ALM & market risk
management committees.
In addition, they have established middle offices specializing in risk management that are independent of theirfront offices, which engage in market transactions, and their back offices, which are responsible for book entries andsettlements. This system enables them to achieve mutual checks and control over market operations.
When VAR is not adequate to control risk, the middle offices manage risk using additional risk indices such as 10
BPV (Basis Point Value), carry out stress tests and set stop loss limits as needed.
(e) Situation of Market Risk
i. Overview of Banking Activities
The following table shows the VAR figures relating to our banking activities for the fiscal year indicated:
Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
Average

¥

2014

281.7
300.7
186.8
253.5

Thousands of U.S. dollars

¥

2013

215.9
297.9
213.3
246.3

$

2014

2,737,716
2,922,161
1,815,393
2,463,149[Definition of Banking business]
The following transactions are categorized as banking business, with trading business and strategically-heldequity being categorized separately.
(1) Deposits and loans as well as related funding activities, and hedge against interest rate risk.
(2) Equity (excluding strategically-held equity), bonds, investment trusts, etc. and hedges against related
market risk.
The core deposit of liquid deposits is to be specified and incorporated into the measurement of market risk.
Banking business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR : the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of one month ; and• historical observation period of one year.

53—Financial Data of Mizuho Financial Group, Inc.

ii. Trading Business
The following table shows VAR figures of our trading activities for the fiscal year indicated :Billions of yen
For the Fiscal Years ended March 31,

As of fiscal year end
Maximum
Minimum
Average

¥

2014

5.4
7.4
3.3
5.7

Thousands of U.S. dollars

¥

2013

3.5
4.6
2.6
3.4

$

2014

52,70572,74832,61855,500[Definition of trading activities](1) Transactions held for the purpose of short-term resale.
(2) Transactions held for the purpose of making a profit from price fluctuations over a short period as well as
fixing a profit from arbitrage activities.
(3) Deals that have both aspects of (1) and (2) above.
(4) Deals held for broking business or market making business.
Trading business VAR used to calculate Market Risk Equivalent is based on the following:• variance co-variance model for linear risk and Monte-Carlo simulation for non-linear risk;• VAR: the total amount of linear risk and non-linear risk;• confidence interval: one-tailed 99%;
• holding period of 1 trading day; and• historical observation period of one year.
iii. Strategic Equity Holding
We make the same market risk management based on VAR and risk indices for strategic equity holding portfolio
as banking business and trading business.
The risk index of the strategic equity holding portfolio (sensitivity of the portfolio to a 1% change in TOPIX index)
is set as ¥30.0 billion ($291,813 thousand) and ¥28.0 billion for the fiscal year ended March 31, 2014 and 2013,
respectively.
iv. Risk management using VAR
VAR is a commonly used market risk management technique with statistical assumptions to measure maximum
possible loss in the market, which will be incurred to the holding portfolio in a certain period with some probability.
It should be noted that in general VAR model has the following shortcomings:• VAR estimates could differ by assumptions of holding period, confidence interval level and approaches forthe measurement.
• VAR which is calculated based on historical data does not necessarily indicate an accurate future possible
maximum loss.
• VAR might underestimate the probability of extreme market movements when the market gets inactive as
VAR assumes sales of holding portfolio and hedges in the market during the holding period for the
calculation.
• The use of a 99% confidence level does not take account of, nor makes any statement about, any losses
that might occur beyond this confidence level.
The variance co-variance model used as the measurement technique of VAR assumes that change in a market
movement follows a normal distribution. Therefore, the model might underestimate the risk under thecircumstance that the market is likely to move extremely beyond the assumption. The model might also
underestimate the risk when the normal correlation assumption between interest rate and share price collapses
under the circumstances when a rise in the interest rate and a deterioration of share price happen simultaneously.
We check the validity of the market risk measurement made by VAR approach periodically by the back-test
which compares VAR with actual profit and loss. In addition to VAR, we make a wide variety of management andcontrols such as risk indices monitoring, implementation of stress tests, loss limit monitoring in order to make strictrisk management by capturing carefully all risks, including what VAR approach is not able to cover.
(f) Liquidity Risk Management
Our liquidity risk management structure is generally the same as the market risk management structure describedabove (“Item (d) Market Risk Management”). However, the head of the Financial Control & Accounting Group of
Mizuho Financial Group is additionally responsible for matters relating to planning and running cash flow
management operations, while the Financial Planning Division is responsible for monitoring and adjusting the cash
Financial Data of Mizuho Financial Group, Inc.—54

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

flow management situation and for planning and implementing cash flow management. Reports on the cash flow
situation are submitted to the ALM & market risk management committee, the executive management committee
and the Chief Executive Officer.
We measure liquidity risk using indices pertaining to cash flow, such as limits on funds raised in the market. Limits
on liquidity risk are discussed and coordinated by the ALM & market risk management committee, discussed further
by the executive management committee and determined by the Chief Executive Officer. We have establishedclassifications for the cash flow conditions affecting the Group, ranging from “normal” to “cause for concern” and“critical,” and have established procedures for dealing with cases which are deemed to fall into the “cause forconcern” or “critical” categories. In addition, we have constructed a system under which we will be able to respondsmoothly in the event of emergency situations that affect our funding by establishing action plans.

(4) Supplementary Explanation of Matters Relating to Fair Value of Financial Instruments and Others

Fair values of financial instruments include the values based on market prices, and the values deemed as market prices
obtained by the reasonable estimate when the financial instruments do not have market prices. Since certain
assumptions and others are adopted for calculating such values, they may differ when adopting different assumptions
and others.

55—Financial Data of Mizuho Financial Group, Inc.

2. Matters Relating to Fair Value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them as of March 31,
2014 and 2013. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded
from the table below (see (Note 2)).

As of March 31, 2014

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1*1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

20,609,087
467,479
8,349,032

Millions of yen¥

Fair Value

20,609,087
467,479
8,349,032¥

Difference———

5,010,740
3,262,798

5,010,740
3,261,309—(1,489)7,038,301
168,367

7,038,301
168,367——

4,040,082
39,267,868
69,301,405(554,631)
68,746,774
156,960,533
89,055,505
12,755,776
7,194,432
16,797,803

4,057,817
39,267,868

17,734—¥¥

69,863,796
158,093,800
89,016,879
12,755,204
7,194,432
16,797,803¥¥

1,117,022
1,133,267(38,626)(572)——

6,085,331

6,085,331—¥

4,309,956
7,838,357
5,245,743
149,282,908¥

4,309,956
7,846,427
5,348,781
149,354,817

¥

—
8,069
103,037
71,908¥615,267¥[330,703](11,710)
272,852¥

272,852¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Receivables under Resale Agreements, Other Debt Purchased, Money Held inTrust and others are directly written off against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

Financial Data of Mizuho Financial Group, Inc.—56

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2013

(1) Cash and Due from Banks *1(2) Call Loans and Bills Purchased *1(3) Receivables under Resale Agreements(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities*1(7) Money Held in Trust(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted*1
Reserves for Possible Losses on Loans¥

Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions¥¥

Consolidated Balance
Sheet Amount

12,332,996
530,079
9,025,049

Millions of yen¥

Fair Value

12,332,996
530,079
9,025,049¥

Difference———

5,543,914
1,279,533

5,543,914
1,277,743—(1,789)9,102,409
96,014

9,102,409
96,014——3,000,403
49,736,969
67,536,882(669,587)
66,867,294
157,514,664
84,241,955
15,326,781
6,126,424
17,451,041

3,020,344
49,736,969

19,940—¥¥67,950,932
158,616,452
84,204,806
15,326,606
6,126,424
17,451,041¥¥

1,083,637
1,101,788(37,148)(175)——

11,325,439

11,325,439—¥

3,349,261
7,699,440
5,141,746
150,662,091¥

3,349,261
7,718,009
5,267,901
150,769,491¥—
18,568126,154
107,399¥

823,304¥[207,589](24,915)590,799¥

590,799¥—*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off
against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

57—Financial Data of Mizuho Financial Group, Inc.

As of March 31, 2014$
(1) Cash and Due from Banks *1*1(2) Call Loans and Bills Purchased(3) Receivables under Resale Agreements*1(4) Guarantee Deposits Paid under Securities Borrowing
Transactions(5) Other Debt Purchased *1(6) Trading Assets
Trading Securities(7) Money Held in Trust *1(8) Securities
Bonds Held to Maturity
Other Securities(9) Loans and Bills Discounted
Reserves for Possible Losses on Loans *1
Total Assets(1) Deposits(2) Negotiable Certificates of Deposit(3) Call Money and Bills Sold
(4) Payables under Repurchase Agreements(5) Guarantee Deposits Received under Securities
Lending Transactions(6) Trading Liabilities
Securities Sold, Not yet Purchased(7) Borrowed Money(8) Bonds and Notes
Total Liabilities
Derivative Transactions *2
Derivative Transactions not Qualifying for Hedge
Accounting
Derivative Transactions Qualifying for Hedge
Accounting*1
Reserves for Derivative Transactions
Total Derivative Transactions

Consolidated Balance
Sheet AmountThousands of U.S. dollars
Fair Value

200,243,758
4,542,166
81,121,574

48,685,779
31,702,278

48,685,779
31,687,809—(14,469)

68,386,144
1,635,905

68,386,144
1,635,905——

39,254,594
381,537,782
673,352,171(5,388,956)
667,963,215
1,525,073,195 $865,288,629 $
123,938,754
69,903,156
163,212,242

39,426,904
381,537,782

172,310—

678,816,521
1,536,084,342
864,913,322
123,933,191
69,903,156
163,212,242

59,126,817

59,126,817—$

41,876,762
76,159,715
50,969,136
1,450,475,211 $

41,876,762
76,238,125
51,970,281
1,451,173,896$—
78,4101,001,145
698,685$

5,978,114$[3,213,212](113,787)
2,651,115 $

2,651,115

$

—

$
$

$

Difference

200,243,758 $4,542,166
81,121,574

$
$

—
—
—

10,853,306
11,011,147(375,307)(5,563)——*1 General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded.
Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Receivables under Resale Agreements, Other Debt Purchased, Money Held inTrust and others are directly written off against the consolidated balance sheet amount due to immateriality.
*2 Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading
Liabilities, and others are presented as a lump sum.
Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

Financial Data of Mizuho Financial Group, Inc.—58

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 1) Calculation method of fair value of financial instruments
Assets(1) Cash and Due from Banks
For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem thebook values to be fair values. For Due from Banks which have maturity, since primarily contractual terms of these items
are short (i.e., within six months) and fair values of these items approximate book values, we deem the book values tobe fair values.
(2) Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under
Securities Borrowing Transactions
Since primarily contractual terms of these items are short (i.e., within six months) and fair values of these items
approximate book values, we deem the book values to be fair values.
(5) Other Debt Purchased
Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonableestimate such as those obtained from brokers and financial information vendors.
(6)Trading Assets
Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.
(7)Money Held in Trust
As to securities managed as trust assets in a directed money trust for separate investment with the management of
securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other
Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fairvalues.
The notes to Money Held in Trust based on holding purpose are stated in “41.Fair Value of Securities and Money
Held in Trust.”(8)Securities
Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on themarket prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are
based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting
the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss
and various risk factors by categories according to the internal ratings and terms.
Fair values of some securitized products are calculated by discounting the estimated future cash flows based on theanalysis of underlying assets at interest rates deemed to be prevailing in the market.
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices
may not reflect the fair value, are based on the reasonably calculated prices as book value at the end of the current
fiscal year. In deriving the reasonably calculated prices, we used the discounted cash flow method as well as othermethods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities ofinterest rate swap options for 10-year Japanese Government Bonds as underlying assets.
With respect to the credit investments in securitization products made as an alternative to loans by the European andNorth American offices of domestic consolidated banking subsidiaries, we applied reasonably calculated prices basedon the reasonable estimates of our management as fair value. In deriving reasonably calculated prices based on thereasonable estimates of our management mentioned above, we used the discounted cash flow method. The pricedecision variables include default rates, recovery rates, pre-payment rates and discount rates, and the subject Securities
included residential mortgage-backed securities, collateralized loan obligations, commercial mortgage-backed securities,
and other asset backed securities.
The notes to Securities based on holding purpose are stated in “41.Fair Value of Securities and Money Held in Trust.”

59—Financial Data of Mizuho Financial Group, Inc.

(9)Loans and Bills Discounted
Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at
interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to thetypes, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated
based on the present value of the expected future cash flows or the estimated amounts that we would be able to collectfrom collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount ofReserves for Possible Losses on Loans in the consolidated balance sheet as of the consolidated balance sheet date
and we thus deem such amount to be fair values.
Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans
to within the value of pledged assets, we deem book values to be fair values since fair values are expected toapproximate book values based on the estimated loan periods, interest rates and other conditions.
Liabilities(1)Deposits (2) Negotiable Certificates of Deposit
For demand deposits, we deem the payment amounts required on the consolidated balance sheet date (i.e., bookvalues) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated byclassifying them based on their terms and by discounting the future cash flows. The discount rates used in suchcalculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months)
approximate book values, we mainly deem the book values to be fair values.
(3)Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under
Securities Lending Transactions
Since primarily contractual terms of these financial instruments are short (i.e., within six months) and fair values
approximate book values, we deem the book values to be fair values.
(6)Trading Liabilities
Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.
(7)Borrowed Money
Fair values of Borrowed Money are calculated primarily by discounting the total amount of the principal and interest ofsuch Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.
(8)Bonds and Notes
Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for
Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by
the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.
Derivative Transactions
Derivative transactions include interest rate-related transactions (futures, options, swaps and others), currency-relatedtransactions (futures, options, swaps and others), bond-related transactions (futures, futures options and others), andare based on the prices on securities exchanges, discounted value of future cash flows, option pricing models andothers.

Financial Data of Mizuho Financial Group, Inc.—60

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 2) The consolidated balance sheet amounts of financial instruments whose fair values are deemed to be extremely
difficult to determine are indicated below, and are not included in “Assets (5) Other Debt Purchased”, “Assets (7)Money Held in Trust” and “Assets (8) Other Securities” in fair value information of financial instruments.

As of March 31,
Category(i) Unlisted Stocks *1(ii) Investments in Partnerships *2*3(iii) Other
*4
Total

Millions of yen
2014
2013
Consolidated Balance
Consolidated Balance
Sheet Amount
Sheet Amount¥¥

213,486
102,239
100,350
416,076¥¥

232,008
143,280
100,369
475,658

Thousands of U.S. dollars
2014
Consolidated Balance
Sheet Amount$ 2,074,295
993,392
975,030$ 4,042,717*1 We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult todetermine fair values.
*2 Of the Investments in Partnerships, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed
extremely difficult to determine fair values as being subject to disclosure of fair values.
*3 We do not treat Preferred Securities and others included in Other as being subject to disclosure of fair values as there are no market prices andother factors and they are deemed extremely difficult to determine fair values.
*4 During the fiscal years ended March 31, 2014 and 2013, the amounts of impairment (devaluation) were ¥5,674 million ($55,138 thousand) and¥8,059 million, respectively, on a consolidated basis.

(Note 3) Projected redemption amounts after the consolidated balance sheet date for financial assets and securities withmaturities
As of March 31, 2014
Types of Financial Instruments

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

Within 1 year

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years¥ 19,259,245 ¥2,527 ¥
— ¥
— ¥
— ¥
—
467,758—————
2,787,584
74,96760,35130,122
12,505
293,408
8,786,147 11,631,227
10,708,846
2,545,570
1,884,094
2,661,588
600,000
1,300,000
1,780,000—
360,000—
600,000
1,300,000
1,780,000—
360,000—
8,186,147 10,331,227
8,928,846
2,545,570
1,524,094
2,661,588
5,925,125
7,789,736
5,981,000
1,294,200
919,830—
30,25856,37573,922
15,57564,604779
421,781651,551
489,320
133,671
53,531
1,007,218
1,796,757
1,778,151
2,334,421
1,093,728
467,120
1,650,999
12,22455,41250,182
8,393
19,0082,590
27,834,054 13,956,403 10,609,798
4,760,685
3,830,892
7,209,394¥ 59,134,791 ¥ 25,665,125 ¥ 21,378,996 ¥ 7,336,378 ¥ 5,727,492 ¥ 10,164,391

61—Financial Data of Mizuho Financial Group, Inc.

As of March 31, 2013
Types of Financial Instruments

Within 1 year

¥ 11,491,743 ¥
530,541
684,975
14,121,855
100,000
100,000
14,021,855
12,151,001

1-3 years

3-5 years

5-7 years

7-10 years

Millions of yen
Over 10 years

1,842 ¥
0 ¥
— ¥
— ¥
—
—
—
—
—
—
70,98751,60655,675
12,835401,991
9,939,885 14,144,030
3,338,354
3,324,018
3,475,392
1,200,000
1,700,000———
1,200,000
1,700,000———
8,739,885 12,444,030
3,338,354
3,324,018
3,475,392
5,296,118
8,759,500
1,815,000
2,470,400
5,000

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased*1
Securities
Bonds Held to Maturity
Japanese Government Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other*2
Loans and Bills Discounted
Total

34,78363,31475,74910,49053,691
826
600,281690,244416,374
126,789
123,679
993,048
1,217,716
2,660,514
3,121,551
1,368,677
651,779
2,470,703
18,07029,69370,855
17,397
24,4685,814
28,334,336 13,122,908
9,704,405
4,163,165
3,829,908
7,187,332¥ 55,163,453 ¥ 23,135,623 ¥ 23,900,042 ¥ 7,557,194 ¥ 7,166,762 ¥ 11,064,716

As of March 31, 2014
Types of Financial Instruments

Within 1 year

Due from Banks
Call Loans and Bills Purchased
Other Debt Purchased
Securities *1
Bonds Held to Maturity
Japanese Government Bonds
Other Securities with Maturities
Japanese Government Bonds
Japanese Local Government
Bonds
Japanese Corporate Bonds
Foreign Bonds
Other
Loans and Bills Discounted *2
Total

1-3 years

3-5 years

5-7 years

Thousands of U.S. dollars
7-10 years Over 10 years

24,556 $—$—$—$—$187,128,306 $
—
—
—
—
—
4,544,878
27,084,965
728,404
586,388292,678
121,5082,850,845
85,368,712 113,012,317 104,050,196 24,733,483
18,306,396 25,860,750——
5,829,771 12,631,170 17,294,987
3,497,863——
5,829,771 12,631,170 17,294,987
3,497,863
79,538,941 100,381,147
86,755,209 24,733,483
14,808,533 25,860,750
57,570,209 75,687,298 58,113,098 12,574,816
8,937,330—
293,997547,759
718,253
151,340
627,711
7,577
4,098,151
6,330,655
4,754,374
1,298,793
520,126
9,786,425
17,457,807 17,277,028
22,681,899 10,626,977
4,538,672 16,041,581
118,777
538,407487,585
81,557
184,694
25,167
270,443,593 135,604,387 103,087,824 46,256,179
37,222,046 70,048,529$574,570,454 $249,369,664 $207,724,408 $ 71,282,340 $ 55,649,950 $ 98,760,124*1 Securities include those of which fair values are extremely difficult to determine.
*2 Amounts do not include loans to bankrupt, substantially bankrupt, and intensive control obligors and other loans, of which redemption amounts cannot be
projected, of ¥518,604 million ($5,038,912 thousand) and ¥670,937 million, and loans with no maturities of ¥581,570 million ($5,650,700 thousand) and¥523,888 million as of March 31, 2014 and 2013, respectively.

Financial Data of Mizuho Financial Group, Inc.—62

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Note 4) Projected repayment amounts after the consolidated balance sheet date for Bonds and Notes, Borrowed Money,
and other interest-bearing liabilities
As of March 31, 2014

Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

Within 1 year¥

Types of Financial Instruments

As of March 31, 2014
Types of Financial Instruments

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

84,980,956 ¥ 3,180,878 ¥3-5 years

5-7 years

759,550 ¥78,984 ¥12,746,255
9,699
—
—
7,194,432—
5,494,545
1,478,979
145,201—
584,568—
921,520
1,353,512
1,287,998¥ 111,922,278 ¥ 6,023,068 ¥ 2,192,750 ¥As of March 31, 2013

Deposits *1
Negotiable Certificates of
DepositCall Money and Bills Sold
Borrowed Money *2
Short-term Bonds
Bonds and Notes *2
Total

1-3 years

Within 1 year

55,135————
105,313
317,958——
311,135
661,207495,433 ¥ 1,034,302

Over 10 years

¥

—

¥

—
—
163,313—650,985
814,299

Millions of yen

5-7 years

752,524 ¥

85,275 ¥50,16815,314,570
12,355——
6,126,424—
6,097,600
786,026
181,558—
477,400—
696,171
1,464,329
1,544,586¥ 108,546,398 ¥ 5,782,466 ¥ 2,478,669 ¥——
65,526—282,120432,922 ¥——
248,751—548,992
847,9115-7 years

Thousands of U.S. dollars
7-10 years
Over 10 years

79,834,232 ¥ 3,519,754 ¥Within 1 year

1-3 years

3-5 years$ 825,699,150 $ 30,906,317 $ 7,380,007 $767,440 $7-10 years

Millions of yen

3-5 years¥

1-3 years

7-10 years

535,715Over 10 years

¥

—

¥

—
—
171,938—
533,996
705,934$—

123,846,242
94,238
—
—
—
—
—
—
—
—
—
69,903,156
53,386,569
14,370,182
1,410,820
1,023,261
3,089,378
1,586,804—————
5,679,830
8,953,754
13,151,110
12,514,562
3,023,077
6,424,484
6,325,162$1,087,468,701 $ 58,521,847 $ 21,305,389 $ 4,813,778 $ 10,049,577 $ 7,911,966*1 Demand deposits are included in “Within 1 year.”*2 Amounts do not include Borrowed Money and Bonds and Notes with no maturities of ¥133,044 million ($1,292,701 thousand) and ¥60,200 million($584,920 thousand), and ¥148,039 million and ¥72,000 million as of March 31, 2014 and 2013, respectively.

63—Financial Data of Mizuho Financial Group, Inc.

41. Fair Value of Securities and Money Held in Trust
The following tables contain information relating to “Securities,” Trading Securities, Short-term Bonds, certain other items in“Trading Assets,” Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt
Purchased,” certain items in “Other Assets,” and “Money Held in Trust.”

As of March 31, 2014

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds

Difference

4,040,082¥

4,057,817¥

17,734¥

3,830,230
3,830,230¥

3,848,185
3,848,185¥

17,954
17,954¥

209,852
209,852¥

209,632
209,632

¥

(220)
(220)
Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference¥

3,000,403¥

3,020,344¥

19,940¥2,800,591
2,800,591¥

2,820,614
2,820,614¥

20,022
20,022¥

199,811
199,811¥

199,730
199,730

¥

(81)
(81)

Thousands of U.S. dollars

Consolidated
Balance
Sheet Amount

As of March 31, 2014

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds

Fair value¥

As of March 31, 2013

Bonds Held-to-Maturity (Total)
Bonds Whose Fair Values Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds
Bonds Whose Fair Values Do Not Exceed the Consolidated
Balance Sheet Amount Bonds Held-to-Maturity:
Japanese Government Bonds

Millions of yen

Consolidated
Balance
Sheet Amount

Fair value

Difference$

39,254,594$

39,426,904$

172,310$

37,215,608
37,215,608$

37,390,060
37,390,060$

174,452
174,452$

2,038,986
2,038,986$

2,036,844
2,036,844$(2,142)(2,142)Financial Data of Mizuho Financial Group, Inc.—64

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

65—Financial Data of Mizuho Financial Group, Inc.

Consolidated Balance
Sheet AmountMillions of yen
Acquisition Cost

Difference¥

40,212,540¥

39,084,860¥

1,127,679*2¥

21,440,137
2,687,603
13,767,572
11,480,120
182,761—
2,104,690
4,984,962
3,414,577
229,037
1,341,347¥

19,964,600
1,489,738
13,719,445
11,462,298
179,978—
2,077,168
4,755,416
3,382,425
223,935
1,149,054¥

1,475,537
1,197,864
48,126
17,821
2,783—
27,521
229,546
32,151
5,101
192,293¥

18,772,402
423,227
11,326,974
10,577,389
61,90099
687,584
7,022,200
5,699,638
485,888836,673¥

19,120,260
514,097
11,343,728
10,581,809
62,006
99
699,811
7,262,434
5,902,426
488,822871,185¥(347,858)(90,869)(16,753)(4,420)(105)—(12,227)(240,234)(202,787)(2,934)(34,512)

¥

1,513

¥

1,513

¥

—

As of March 31, 2013

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Millions of yen

Consolidated Balance
Sheet Amount

Acquisition Cost

Difference

881,442*2¥

50,508,516¥

49,627,073¥¥

37,777,064
2,092,306
28,161,134
25,681,978216,514—2,262,642
7,523,623
6,490,529
285,742
747,351¥

36,628,151
1,249,041
28,026,887
25,592,305
212,405—
2,222,176
7,352,222
6,416,513
278,111657,597¥

1,148,913
843,264
134,247
89,672
4,108—
40,465
171,401
74,016
7,631
89,754¥

12,731,451
683,729
5,882,116
5,123,172
27,242—
731,701
6,165,605
5,354,280
284,683
526,641¥

12,998,921
816,911
5,902,887
5,124,634
27,289—750,963
6,279,122
5,410,391
292,910575,821¥(267,470)(133,181)(20,771)(1,462)(46)—(19,262)(113,516)(56,110)(8,226)(49,179)

¥

—

¥

—

¥

—

Financial Data of Mizuho Financial Group, Inc.—66

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars

Consolidated Balance
Sheet Amount

As of March 31, 2014

Other Securities*1 (Total)
Other Securities Whose Consolidated Balance Sheet
Amount Exceeds Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Other Securities Whose Consolidated Balance Sheet
Amount Does Not Exceed Acquisition Cost
Other Securities:
Japanese Stocks
Japanese Bonds:
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Bonds
Japanese Corporate Bonds
Other:
Foreign Bonds
Other Debt Purchased
Other
Money Held in Trust
Other Money Held in Trust

Acquisition Cost

Difference$

390,716,481$

379,759,626$

10,956,855*2$

208,318,480
26,113,519
133,769,648
111,544,113
1,775,764—
20,449,771
48,435,313
33,177,003
2,225,395
13,032,915$

193,981,735
14,474,723
133,302,037
111,370,954
1,748,722—
20,182,361
46,204,975
32,864,612
2,175,823
11,164,540$

14,336,745
11,638,796
467,611
173,159
27,042—
267,4102,230,338
312,391
49,572
1,868,375$

182,398,001
4,112,201
110,056,105
102,772,927
601,443971
6,680,764
68,229,695
55,379,306
4,721,030
8,129,359$

185,777,891
4,995,119110,218,891
102,815,875
602,473971
6,799,572
70,563,881
57,349,650
4,749,542
8,464,689$(3,379,890)(882,918)(162,786)(42,948)(1,030)—(118,808)(2,334,186)(1,970,344)(28,512)(335,330)$

14,705$

14,705$—*1 The fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.
The fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidatedbalance sheet date.
*2 Unrealized Gains (Losses) or Difference include gains of ¥37,413 million ($363,520 thousand) and ¥3,311 million in the fiscal years ended March 31, 2014
and 2013, respectively, by applying the fair-value hedge method and others.

Note: A summary of Trading Securities and Money Held in Trust for investment purposes and related unrealized gains andlosses recognized in the statement of income are as follows: *Millions of yen

2014

Unrealized
gains (losses)

As of March 31,

Trading Securities

Money Held in Trust for
Investment¥36,788$(184,968)
Thousands of U.S. dollars
2014
Unrealized
Fair value gains (losses)¥(19,036)
Millions of yen

2014
As of March 31,

Unrealized
gains (losses)

Thousands of U.S. dollars
2014
Unrealized
gains (losses)

2013

2013

Fair value

Unrealized
gains (losses)

Fair value

Unrealized
gains (losses)¥166,856¥¥96,014¥31

34* Fair values of trading securities as of March 31, 2014 and 2013 are described in “40. Financial Instruments.”

67—Financial Data of Mizuho Financial Group, Inc.

$1,621,223$

307

Other Securities Sold during the Fiscal Year
Millions of yen
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales

For the Fiscal Year ended March 31,
2014

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

¥

152,135
61,282,363
60,283,392¥ 43,367
61,37555,395¥ 2,978
18,111
16,420$ 1,478,191
595,436,880
585,730,591$

101,652
897,318
11,655,380¥ 73,089,879

280
5,699
113,884¥ 218,627

53
1,637
57,236¥ 78,326

987,686
8,718,603
113,246,995$710,162,066

2,729
55,375
1,106,531$ 2,124,243

Millions of yen
Total amount
Proceedsof gains
from sales
on salesTotal amountof losses
on sales

For the Fiscal Year ended March 31,
2013

Stocks
Bonds
Japanese Government Bonds
Japanese Local
Government Bonds
Japanese Corporate Bonds
Other
Total

Thousands of U.S. dollars
Total amount Total amount
Proceedsof gainsof losses
from sales
on saleson sales¥245,287
68,766,443
66,720,654

216,144
1,829,643
26,198,145¥ 95,209,875¥

68,124
106,359
92,554¥ 17,613
4,837
4,485

1,493
12,311
187,834¥ 362,318

64
287
63,264¥ 85,714

421,371596,341
538,237$

28,937
175,974
159,542518
15,914556,131$ 761,042

Note: The above table contains Other Securities that are deemed extremely difficult to determine fair values.

Unrealized Gains/Losses on Other Securities
Unrealized Gains/Losses on Other Securities as of March 31, 2014 and 2013 are as follows:
Millions of yen
2014

As of March 31,

Difference between Acquisition Cost and Fair Value*1*2
Other Securities
Other Money Held in Trust
Deferred Tax Liabilities
Difference between Acquisition Cost and Fair Value, net of Taxes
Amount Corresponding to Minority Interests
Amount Corresponding to Net Unrealized Gains (Losses) on Other
Securities
Owned by Affiliated Companies, which is attributable to MHFGNet Unrealized Gains (Losses) on Other Securities¥

1,090,304
1,090,304—(309,344)
780,959

2013¥

51,543¥

4,105
733,522877,912 $10,593,711
877,912 10,593,711——(261,212) (3,005,683)
616,699
7,588,028
12,965¥

Thousands of
U.S. dollars
2014

500,812

12,14939,893615,883 $ 7,127,109*1 The difference between acquisition cost and fair value excludes ¥(37,413) million ($(363,520) thousand) and ¥(3,311) million were recognized in the fiscal

years ended March 31, 2014 and 2013, respectively, by applying the fair-value hedge method and others, and includes translation differences regarding
securities which do not have readily determinable fair value.
*2 Other securities includes translation differences regarding securities which do not have readily determinable fair value.

Financial Data of Mizuho Financial Group, Inc.—68

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

42. Derivatives Information
The fair value of derivatives not qualifying for hedge accounting and derivatives qualifying for hedge accounting as ofMarch 31, 2014 and 2013 is shown in the tables below. In the following tables:(i) Contract value represents notional amounts for swap transactions and contract amounts for other transactions.
Contract value amounts do not indicate the market risk related to derivative transactions.
(ii) Fair values of listed contracts are based on the closing prices of the Osaka Exchange, the Tokyo Stock Exchange,
the Tokyo Financial Exchange, the New York Mercantile Exchange and others. Fair values of over-the-countercontracts and inter-company or internal transactions are based on the discounted value of future cash flows, option
pricing models and others.

(1) Derivative Transactions not Qualifying for Hedge Accounting

Transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated
statement of income.

(a) Interest Rate-Related Transactions

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

69—Financial Data of Mizuho Financial Group, Inc.

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥ 11,434,707
9,827,139¥ 6,223,939
5,320,408¥ (21,915)
23,324¥ (21,915)
23,3242,186,768
1,999,072

595,526
529,727(4,124)
3,435

315
(472)

8,433,201
8,632,960

412,133
595,270(1,240)1,172(1,240)1,172

407,440,608
403,412,602
78,629,699
548,055

306,247,246
302,059,018
51,655,329
510,5886,628,141(6,518,422)
18,800
10,242

6,628,141(6,518,422)
18,800
10,242

11,831,701
9,905,879

8,344,424
6,449,245(154,320)
143,026(154,320)
143,026

4,501,399
9,999,717
41,922/

4,096,364
8,903,953
41,922/

42,775(24,133)(2)¥ 146,759

42,775(24,133)(2)¥ 147,292

As of March 31, 2013

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

Contract value
Total
Over one year

Fair value

Millions of yen
Unrealized
gains (losses)¥ 10,322,881
10,530,177¥ 5,539,712
5,027,367¥ (51,392)
51,299¥ (51,392)
51,2992,982,924
3,528,289

687,023556,531(2,622)
2,079

(135)
(46)

12,538,135
16,088,710

1,282,444
1,915,772(7,573)
8,973(7,573)
8,973

350,692,588
349,079,795
55,732,257
531,928

250,491,339
246,822,066
32,855,926
472,888

10,076,025(9,843,277)
17,536
8,243

10,076,025(9,843,277)
17,536
8,243

12,024,653
10,718,591

8,219,007
7,335,559(171,040)
175,788(171,040)
175,7882,316,264
6,728,993—/

1,693,920
5,846,944—/

34,745(87,892)—¥ 210,892

34,745(87,892)—¥ 211,253

Financial Data of Mizuho Financial Group, Inc.—70

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
FRAs:
Sold
BoughtSwaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Receive Fixed / Pay Fixed
Options:
Sold
BoughtInter-company or Internal Transactions:Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Total

71—Financial Data of Mizuho Financial Group, Inc.

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

$ 111,102,875
95,483,287$ 60,473,563
51,694,598$(212,941)
226,632

21,247,266
19,423,556

5,786,309
5,146,982(40,078)
33,3793,065(4,587)

81,939,388
83,880,303

4,004,405
5,783,815(12,054)
11,393(12,054)
11,393

3,958,808,862
3,919,671,610
763,988,532
5,325,062

2,975,585,368
2,934,891,356
501,897,873
4,961,020

64,400,907(63,334,843)
182,673
99,52164,400,907(63,334,843)
182,673
99,521

114,960,176
96,248,345

81,076,803
62,662,705(1,499,422)
1,389,685(1,499,422)
1,389,685

43,736,881
97,160,098
407,326/

39,801,444
86,513,346
407,326/

415,615(234,487)(25)
1,425,955

415,615(234,487)(25)
1,431,132$$$(212,941)
226,632(b) Currency-Related Transactions
Contract value
Total
Over one year

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
Bought
Total

¥

¥

2,370
—

Fair value

¥

1,155
(12)

¥

¥

1,155
(12)

1,591
1,591

—
—

(2)
1

(2)
1

37,982,073

23,686,551

72,286

81,56748,353,520
21,270,382

2,396,363
1,582,140(521,989)
584,296(521,989)
584,296

4,092,234
3,717,363

1,968,449
1,723,713(254,982)
149,686(79,347)(28,017)2,530,888

1,213,503

392,733

4,255—
142,564
/

—
—
/

—
858
424,032¥—858
42,764

Fair value

Millions of yen
Unrealized
gains (losses)¥

Contract value
Total
Over one year

As of March 31, 2013

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

23,65336,577

Millions of yen
Unrealized
gains (losses)

14,57323,252

¥

5,252
3,060

¥

(11)
21

¥

(11)
21

—
—

—
—

—
—

—
—

38,105,893

22,896,029(53,902)(359,290)

42,260,682
22,631,705

2,528,310
2,937,514(1,060,217)
1,347,690(1,060,217)
1,347,690

4,931,194
4,607,257

2,445,797
2,312,240(292,565)
293,774(5,004)(1,903)2,779,435

1,676,816

342,708

273,325

6,004
114,192
/

—
—
/

44
1,859
579,401

44
1,859
196,513¥¥

Financial Data of Mizuho Financial Group, Inc.—72

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

Listed:Futures:
Sold
BoughtOptions:
Sold
BoughtOver-the-Counter:
Swaps
Forwards:
Sold
BoughtOptions:
Sold
BoughtInter-company or Internal Transactions:
Swaps
Forwards:
Sold
BoughtTotal

Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year$

229,825355,396$

23,031 $—11,231(117)

15,465
15,465

—
—

(21)
14

(21)
14

369,044,628

230,145,271

702,357

792,533

469,816,565
206,669,091

23,283,754
15,372,523(5,071,802)
5,677,190(5,071,802)
5,677,190

39,761,318
36,118,958

19,126,018
16,748,088(2,477,484)
1,454,400(770,965)(272,231)

24,590,828

11,790,747

3,815,911

41,344—
1,385,201
/

—
—
/

—
8,340
4,120,019

$

—
8,340
415,516

Fair value

Millions of yen
Unrealized
gains (losses)$$

11,231(117)(c) Stock-Related Transactions
Contract value
Total
Over one year

As of March 31, 2014

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal

73—Financial Data of Mizuho Financial Group, Inc.

¥

239,437 ¥
19,249

3,127
1,375

¥

(5,833)694

813,856
747,113160,012
108,037(52,217)57,001(21,940)
26,616

316,375

269,784

9,384

9,384

474,013391,844

253,480
240,158(107,163)
122,104(86,543)
106,053

99,119/72,600/ ¥(1,103)
22,866¥¥(5,833)694(1,103)27,328

Contract value
Total
Over one year

As of March 31, 2013

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal¥

343,392
10,312——

Fair value¥(7,840)72$¥(7,840)72

693,577
652,404

153,930
147,005(42,842)
45,026(22,150)
19,084

530,924

316,180

7,745

7,745

684,145564,258

354,813323,248(108,931)
112,658(77,820)
91,48639,783/24,000
/

1,322
7,211

¥

¥

1,322
11,899Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

As of March 31, 2014

Listed:Index Futures:
Sold
BoughtIndex Futures Options:
Sold
BoughtOver-the-Counter:
Equity Linked Swaps
Options:
Sold
BoughtOther:
BoughtTotal¥

Millions of yen
Unrealized
gains (losses)

2,326,445 $
187,038

30,38913,369$7,907,664
7,259,165

1,554,727
1,049,723(507,356)
553,840(213,176)
258,610

3,073,990

2,621,303

91,181

91,181

4,605,654
3,807,272

2,462,886
2,333,450(1,041,234)
1,186,400(840,877)
1,030,448

963,075/

705,402/$(56,683)
6,748(10,718)
222,178$$(56,683)
6,748(10,718)
265,533

Financial Data of Mizuho Financial Group, Inc.—74

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(d) Bond-Related Transactions

Contract value
As of March 31,

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
BoughtTotal

Over
one yearTotal¥ 711,733
854,379

2014

¥

Fair
Unrealized
value gains (losses)

4,144
2,220

¥

1,047 ¥ 1,022,307 ¥ 19,214 ¥(1,061)
719,742
11,963(2,734)
2,532

Unrealized
gains (losses)¥(2,734)
2,532

—
—

(362)
618

80
(133)

415,079
396,906

—
—

(801)
845

(186)
4

642,479
538,920/

38,617
38,617/(9,294)
8,279
¥
(772)

(5,703)
5,989
¥
219

591,420568,680/

16,157
16,157/ ¥(5,542)5,696(4)(3,855)
4,099
(138)

Contract value

Listed:Futures:
Sold
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

¥

Fair
value

350,070
306,1722014
As of March 31,

1,047(1,061)

Contract value
Over
Total one year

Millions of yen

2013

Thousands of U.S. dollars

Total

Over
One year$ 6,915,403
8,301,394$ 40,272
21,574$ 10,180(10,315)$ 10,180(10,315)3,401,380
2,974,861——(3,518)
6,013

778(1,299)6,242,517
5,236,303/

375,217375,217/(90,304)
80,443$ (7,501)(55,414)58,200$ 2,130

75—Financial Data of Mizuho Financial Group, Inc.

Fair
Unrealized
value gains (losses)¥

(e) Commodity-Related Transactions

Contract value
As of March 31,

Listed:Futures:
Sold¥
BoughtFutures Options:
Sold
BoughtOver-the-Counter:
Options:
Sold
Bought
Total

Total

Over
one yearContract value
Fair
Unrealized
value gains (losses)

Total

Millions of yen

2013

Over
one year

Fair
value

Unrealized
gains (losses)¥

40,507 ¥
37,531

1,373 ¥
1,452(322) ¥
385(322) ¥
385

75,402 ¥76,096

3,543 ¥
3,286

(481)
214

—
—

—
—

—
—

—
—

93
93

—
—

(0)
0

0
(1)

90,993(10,918)
74,98917,683/ ¥6,828(10,918)
17,683¥
6,828

189,710
180,106/

106,132(22,010)
97,25031,968/ ¥9,690(22,010)31,968¥9,689

201,003184,254/

Contract value
As of March 31,

2014

Total

2014

Over
one year

(481)
214

Thousands of U.S. dollars

Fair
Unrealized
value gains (losses)

Listed:Futures:Sold$ 393,586 $ 13,350 $ (3,133) $(3,133)
Bought364,671
14,1103,747
3,747
Futures Options:
Sold
—
—
—
—
Bought————Over-the-Counter:
Options:
Sold
1,953,010
884,114 (106,086)(106,086)
Bought1,790,272
728,615
171,823
171,823Total// $ 66,351 $
66,351
Note: Commodities include oil, copper, aluminum and others.

Financial Data of Mizuho Financial Group, Inc.—76

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(f) Credit Derivative Transactions
Contract value
Total
Over one year

As of March 31, 2014

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

As of March 31, 2014

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal¥

1,876,471
2,129,993/¥

2,463,306
2,885,546
/

¥

¥

¥
¥

$ 18,232,328
20,695,624/

2,235
13,877
16,113¥¥24,493(8,940)15,552Millions of yen
Unrealized
gains (losses)

¥
¥

2,235
13,877
16,113Thousands of U.S. dollars
Unrealized
Fair value
gains (losses)

Contract value
Total
Over one year

$ 21,391,024
24,759,012/

24,493(8,940)15,552

Fair value

1,842,469
2,215,559/

Note: “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

77—Financial Data of Mizuho Financial Group, Inc.

¥

Contract value
Total
Over one year

As of March 31, 2013

Over-the-Counter:
Credit Derivatives:
Sold
BoughtTotal

2,201,564
2,548,197/

Fair value

Millions of yen
Unrealized
gains (losses)$$

237,984(86,873)
151,111$$

237,984(86,873)
151,111(2) Derivative Transactions Qualifying for Hedge Accounting(a) Interest Rate-Related Transactions

As of March 31, 2014

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

As of March 31, 2013

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersContract value
Total
Over one year

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersFair value¥ 25,093,042
7,384,122
121,922¥ 20,684,955
6,892,414
71,922¥ 182,200(103,681)
65—
218,436—
206,607—(1,004)Note 2.

30,00093,122/

Primary
hedged items

Millions of yen

30,00083,213/Contract value
Total
Over one year

¥ 77,580
Millions of yen
Fair value¥ 23,957,859
5,899,953
170,000¥ 19,470,203
4,803,948
80,000¥ 349,777(123,288)
152

4,329
78,801—
66,48219(2,473)Note 2.

30,00040,465/30,00020,645/¥ 224,186

Financial Data of Mizuho Financial Group, Inc.—78

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

As of March 31, 2014

Primary Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Receive Float / Pay Float
Fair Value Hedge Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Exceptional Accrual Method :Swaps:
Receive Fixed / Pay Float
Receive Float / Pay Fixed
Total

Primary
hedged items

Loans, deposits, bonds andnotes, borrowings andothersOther securities and others

Loans, borrowings andothersThousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 243,811,141
71,746,237
1,184,629$ 200,980,911
66,968,661
698,815$ 1,770,310(1,007,403)
640—
2,122,395—
2,007,462—(9,755)Note 2.

291,489
904,809/291,489
808,527/$

753,792

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24).
2. Since derivative transactions qualifying for the exceptional accrual method are treated as a unit of loans andborrowings, hedged items, those fair values are included in fair values of such loans and borrowings in “40.
Financial Instruments.”

79—Financial Data of Mizuho Financial Group, Inc.

(b) Currency-Related Transactions

As of March 31, 2014

Primary Method :Swaps
Forwards:
Sold
Bought
Allocation Method :Forwards:
Sold
Total

As of March 31, 2013

Primary Method :Swaps
Forwards:
Sold
Bought
Allocation Method :Forwards:
Sold

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersPrimary Method :Swaps
Forwards:
Sold
Bought
Allocation Method :Forwards:
Sold
Total

6,803,174¥

276,593—

Primary
hedged items

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersShort-term bonds¥(406,588)(2,496)—Note 2.

—/¥¥8,816,368¥

2,340,415(409,084)
Millions of yen

Contract value
Total
Over one year

Primary
hedged items—

1,544,593

Fair value

—
—

3,391
/

Total

As of March 31, 2014¥

Short-term bonds

Loans, deposits, borrowings,
parent company’s interest of
subsidiaries’ net assets andothersMillions of yen

Contract value
Total
Over one year

Primary
hedged items

Fair value¥(421,944)

230,289
6,004——(9,795)
(44)

—

—

—

/

/

¥

(431,784)

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value$ 66,101,579$ 15,007,708$ (3,950,525)

2,687,464———(24,255)—
Note 2.

32,949/—/$ (3,974,780)

Notes: 1. Primarily the deferred method is applied under “Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No.
25).
2. Forward Exchange Contracts qualifying for the allocation method are treated as a unit of short-term bonds,
hedged items.

Financial Data of Mizuho Financial Group, Inc.—80

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(c) Stock-Related Transactions

As of March 31, 2014

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2013

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

As of March 31, 2014

Fair Value Hedge Method :Forward Stock Agreements:
Sold
Index Futures:
Sold
BoughtTotal

Contract value
Total
Over one year

Primary
hedged items

Other securities
¥

¥

—

106
252

—
—

/

/

Contract value
Total
Over one year

Primary
hedged items

Other securities
¥

—

¥

—

79
272

—
—

/

/

Fair value

¥

800

¥

2
(3)
800

Millions of yen
Fair value

¥

—

¥

(6)
15
8

Thousands of U.S. dollars
Contract value
Total
Over one year
Fair value

Primary
hedged items

Other securities

81—Financial Data of Mizuho Financial Group, Inc.

23,327

Millions of yen$

226,658

$

—

1,033
2,450

—
—

/

/

$

7,782

$

25
(31)
7,776

43. Segment Information
Segment Information by Management Approach
1. Summary of Reportable Segment
Beginning on April 1, 2013, we moved to a new group operational structure and established ten business units such as the
personal banking unit, retail banking unit, corporate banking unit, etc., and head-office coordination divisions to determine
strategies and initiatives across the group-wide banking, trust banking, securities and other business areas, based on theten business units across MHBK (the former MHBK and the former MHCB merged on July 1, 2013), Mizuho Trust &Banking Co., Ltd. ("MHTB") and Mizuho Securities Co., Ltd. ("MHSC"), etc., and the former three Global Groups wereabolished.
We engage in banking, trust banking, securities and other businesses through consolidated subsidiaries and affiliates. As
these subsidiaries and affiliates are in different industries and regulatory environments, we disclose business segment
information based on the relevant principal consolidated subsidiaries such as MHBK (the former MHBK and the former
MHCB), MHTB and MHSC for investors to measure the present and future cash flows properly.
Operating segments of MHBK are aggregated based on the type of customer characteristics and are aggregated into thefollowing seven reportable segments: Personal Banking; Retail Banking; Corporate Banking (Large Corporations);
Corporate Banking; Financial Institutions & Public Sector Business; International Banking; and Trading and others.

2. Calculating Method of Gross Profits (excluding the amounts of credit costs of trust accounts), Net
Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans), and the Amount of Assets by Reportable
Segment
The following information of reportable segment is based on internal management reporting.
Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest income, Fiduciaryincome, Fee and commission income, Trading income, and Other operating income.
Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) generalreserve for losses on loans) is the amount of which General administrative expenses (excluding non-recurring expenses)
and Other (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from
Gross profits (excluding the amounts of credit costs of trust accounts).
Asset information by segment is not prepared on the grounds that management does not use asset information of eachsegment for the purpose of asset allocation or performance evaluation.
Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments
is based on the current market price.

Financial Data of Mizuho Financial Group, Inc.—82

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

3. Gross Profits (excluding the amounts of credit costs of trust accounts) and Net Business Profits or
Losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for)general reserve for losses on loans) by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2014

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

Retailbanking

Corporatebanking(Largecorporations)¥165,000¥ 59,800¥170,200¥ 77,900¥

32,900¥197,900

34,800¥ 94,600

126,700¥296,900

51,800¥129,700¥

171,300—

87,800—83,800—58,800—¥ 26,600¥ 6,800¥213,100¥ 70,900

83—Financial Data of Mizuho Financial Group, Inc.

Corporatebanking¥

OthersInternational

Tradingandothers30,700¥128,900¥167,608 ¥

20,10050,800139,800¥268,700

25,100—82,500—25,700¥186,200

Financial
Institutions& Public
sectorbusiness

Personalbanking

800,108¥133,741¥(7,897)¥159,710

398,202¥1,198,310

9,121¥142,862

407,323¥1,341,173

149,728—

659,028—

52,263(56,037)

711,291(56,037)¥

539,282¥ 34,561

9,982 ¥¥

933,849

573,844

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

MHFG(Consolidated)

MHSC(Consolidated)

Others¥2,937¥ 131,334¥ 1,108,303

108,155¥ 148,337

283,853¥ 286,791

127,644¥ 258,979

926,978¥ 2,035,281

90,927(2,929)246,21036

180,824(2,831)

1,229,253(61,762)

MHTB(Consolidated)¥¥

40,181

54,480¥40,617¥75,323¥744,264

Financial Data of Mizuho Financial Group, Inc.—84

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements（Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter, and MHBK after the merger from thesecond quarter to the fourth quarter ）Millions of yen

For the Fiscal Year
ended March 31,
2014

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

Personalbanking

Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter,and MHBK after the merger from the second quarter to the fourth quarter
Trading
InterFinancial
Corporate
Corporate
Retailandnational
Institutions
bankingbankingbankingothers& Public(Largesectorcorpobusinessrations)¥ 218,500¥ 80,000¥ 172,700¥ 103,300¥ 35,400¥ 128,900¥ 184,952¥

41,600¥ 260,100

45,300¥ 125,300

131,400¥ 304,100

64,700¥ 168,000

22,300¥ 57,700

139,800¥ 268,700

15,263¥ 200,215

460,363¥ 1,384,115

226,400—

116,700—

87,200—77,700—29,000—82,500—171,616—

791,116—8,600¥ 216,900

90,300¥ 28,700¥ 186,200¥ 28,598¥ 33,700¥

85—Financial Data of Mizuho Financial Group, Inc.

¥¥

923,752

592,998

Millions of yen
The former MHBK (Consolidated)
The former MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2013

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

Financial
Institutions& Public
sectorbusiness

OthersTradingandothersCorporatebanking(Largecorporation)

Corporatebanking¥ 83,300¥ 14,900¥106,100¥ 19,900¥ 70,424¥513,824¥ 36,770¥550,594

33,900¥253,100

42,300¥125,600

19,300¥ 34,200

70,700¥176,800

11,000¥ 30,900

136,450¥206,875

313,650¥827,475

46,679¥ 83,449

360,330¥910,924

218,600—

113,700—

11,600—73,200—14,300—92,996—524,396—

43,863(7,403)568,259(7,403)¥ 34,500¥ 11,900¥ 22,600¥103,600¥ 16,600¥113,878¥303,078¥ 32,183¥335,261

Personalbanking

Retailbanking¥219,200

Financial Data of Mizuho Financial Group, Inc.—86

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

The former MHCB (Consolidated)
The former MHCB (Unconsolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)MHSC(Consolidated)

OthersInternational

Tradingandothers¥ 16,300¥108,200¥135,801¥401,701¥ (1,757)¥86,195

¥

200
¥ 700

13,200¥ 29,500

104,700¥212,900

111,973¥247,775

333,373¥735,075

228,951¥227,193

10,478¥96,673

572,803¥1,058,942

76,800—1,300—

12,200—66,600—84,148—241,048—

197,133
13

33,781(50,021)471,963(50,008)¥167,400¥(600)¥ 17,300¥146,300¥163,626¥494,026¥ 30,073¥12,870

Corporatebanking(Largecorporation)

Corporatebanking

Financial
Institutions& Public
sectorbusiness¥140,900¥ 500

103,300¥244,200

87—Financial Data of Mizuho Financial Group, Inc.

¥

486,139

536,971

MHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)¥(309)¥ 1,075,898

104,976¥ 144,451

57,708¥ 57,398

1,095,818¥ 2,171,716

90,100(3,487)

40,692(27,646)

1,171,016(88,545)

50,862¥ (10,940)¥

39,474

MHFG(Consolidated)

Others¥¥912,155

Financial Data of Mizuho Financial Group, Inc.—88

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Aggregate of the former MHBK and the former MHCB)
Millions of yen

For the Fiscal Year
ended March 31,
2013

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

Aggregate of the former MHBK and the former MHCBInterFinancial
Corporate
Corporatenational
Institutions
bankingbanking& Public(Largesectorcorporation)business

Tradingandothers

Personalbanking

Retailbanking¥ 219,200¥ 83,300¥ 155,800¥ 106,600¥ 36,200¥ 108,200¥ 206,225¥

33,900¥ 253,100

42,300¥ 125,600

122,600¥ 278,400

70,900¥ 177,500

24,200¥ 60,400

104,700¥ 212,900

248,424¥ 454,650

647,024¥ 1,562,550

218,600—

113,700—

88,400—74,500—26,500—66,600—177,145—

765,445—¥ 34,500¥ 11,900¥ 190,000¥ 103,000¥ 33,900¥ 146,300¥ 277,504

89—Financial Data of Mizuho Financial Group, Inc.

¥

915,525

797,104

Thousands of U.S. dollars

For theFiscal Year
ended
March 31,
2014

Gross
Profits(excluding theamountsof credit
costs oftrust
accounts)
Net
Interest
Income(expense)
Net Noninterest
Income
Total
Generaland
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet
Business
Profits(excluding theamountsof credit
costs oftrust
accounts,
beforereversalof(provisionfor)generalreservefor losses
on loans)

Personalbanking

Retailbanking

Corporatebanking(Largecorporations)$1,603,187 $581,034

319,666 338,127$1,922,853 $919,161

MHBK (Consolidated)
MHBK (Unconsolidated)

OthersCorporatebanking

Financial
Institutions& Public
sectorbusiness

International$1,653,712$ 756,898$298,290$1,252,429$1,628,528 $ 7,774,078$1,299,471 $ 9,073,549

1,231,053$2,884,765

503,304$1,260,202

195,297$493,587

1,358,336$2,610,765(76,733)
3,869,050$1,551,795 $11,643,128

88,624
3,957,674$1,388,095 $13,031,223

853,090—814,225—

571,317—

243,879—

801,593—$ 258,453 $ 66,071$2,070,540$ 688,885$249,708$1,809,172

1,664,400—

Tradingandothers1,454,805—$

6,403,309—

96,990 $ 5,239,819

507,804(544,477)

6,911,113(544,477)$ 335,814 $ 5,575,633

Financial Data of Mizuho Financial Group, Inc.—90

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

MHTB(Consolidated)

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding NonRecurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)$$ 1,276,081$ 10,768,588

1,050,870$ 1,441,287

2,758,005$ 2,786,546

1,240,235$ 2,516,316

9,006,784$ 19,775,372

883,479(28,464)

2,392,251
353

1,756,938(27,513)

11,943,781(600,101)

731,865$ 7,231,490

529,344$

MHFG(Consolidated)

28,541$

390,417

OthersMHSC(Consolidated)$

91—Financial Data of Mizuho Financial Group, Inc.

394,648$

（Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter, and MHBK after the merger from thesecond quarter to the fourth quarter ）Thousands of U.S. dollars

For the Fiscal Year
ended March 31,
2014

Gross Profits(excluding theamounts ofcredit costs oftrust accounts)
Net Interest
Income(expense)
Net Noninterest Income
Total
General and
Administrative
Expenses(excluding
Non-Recurring
Losses)OthersNet BusinessProfits(excluding theamounts ofcredit costs oftrust accounts,
before reversalof (provisionfor) generalreserve forlosses onloans)

Personalbanking

Aggregate of the former MHBK for the first quarter, the former MHCB for the first quarter,and MHBK after the merger from the second quarter to the fourth quarter
Trading
InterFinancial
Corporate
Corporate
Retailandnational
Institutions
bankingbankingbankingothers& Public(Largesectorcorporation)business$ 2,123,008$

777,303$ 1,678,002$ 1,003,692$ 343,956$ 1,252,429$ 1,797,049$ 8,975,439

404,198$ 2,527,206

440,147$ 1,217,450

1,276,720$ 2,954,722

628,644$ 1,632,336

216,673$ 560,629

1,358,337$ 2,610,766

148,302$ 1,945,351

4,473,021$ 13,448,460

2,199,767—

1,133,890—

847,260—

754,955—

281,772—

801,594—

1,667,480—

7,686,718—$ 2,107,462$ 877,381$ 278,857$ 1,809,172$ 277,871$ 5,761,742$

327,439$

83,560Notes: 1.Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general
corporations.
2. “Others” includes elimination of transactions between each subsidiary.
3. Following the transformation into the new group management structure conducted in April 2013, reclassification was made on theabove table to reflect the relevant changes. MHFG turned MHSC that had formerly been a consolidated subsidiary of MHFG intoa directly-held subsidiary of MHFG in April 2013.
4. In the above table for the fiscal year ended March 31, 2014, “MHBK (Unconsolidated)” reports the results of the former MHCB for
the first quarter and MHBK after the merger from the second quarter to the fourth quarter. “Others” includes the result of theformer MHBK for the first quarter.
5. The former MHSC and the former Mizuho Investors Securities Co.,Ltd. ("MHIS") merged in January 2013. In the above table forthe fiscal year ended March 31, 2013, “Others” in “the former MHBK (Consolidated)” includes the result of the former MHIS
before the merger and “MHSC (Consolidated)” reports the result of MHSC (Consolidated) after the merger.

Financial Data of Mizuho Financial Group, Inc.—92

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

4. The Difference between the Total Amounts of Reportable Segments and the Recorded Amounts inConsolidated Statement of Income, and the Contents of the Difference (Matters relating toadjustment to difference)
The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net businessprofits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve forlosses on loans) derived from internal management reporting by reportable segment are different from the amounts
recorded in Consolidated Statement of Income.
The contents of the difference for the period are as follows:(a) The Total of Gross Profits (excluding the amounts of credit costs of trust accounts) of Segment Information and
Ordinary Profits
Thousands of
U.S. dollars

Millions of yen
2014

2013

2014

Gross Profits (excluding the amounts of credit costs of trust
accounts):
Total Amount of the Above Segment Information¥ 2,035,281¥ 2,171,716$ 19,775,372
Other Ordinary Income
331,333
197,015
3,219,333
General and Administrative Expenses(1,258,227)(1,244,647)(12,225,293)
Other Ordinary Expenses(120,800)(373,708)(1,173,735)
Ordinary Profits¥
987,587¥
750,376$ 9,595,677
Note: Ordinary profits represents Total Income excluding certain special income less Total Expenses excluding certain
special expenses.

(b) The Total of Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of(provision for) general reserve for losses on loans) of Segment Information and Income before Income Taxes andMinority Interests Recorded in Consolidated Statement of Income
Thousands of
U.S. dollars

Millions of yen

Net Business Profits (excluding the amounts of credit costs oftrust accounts, before reversal of (provision for) general reserve
for losses on loans):
Total Amount of the Above Segment Information
Credit Costs for Trust Accounts
General and Administrative Expenses (non-recurring losses)
Expenses Related to Portfolio Problems (including reversal of(provision for) general reserve for losses on loans)
Gains on Reversal of Reserves for Possible Losses on Loans,and other
Net Gains (Losses) Related to Stocks
Net Extraordinary Gains (Losses)
Other
Income before Income Taxes and Minority Interests Recordedin Consolidated Statement of Income

93—Financial Data of Mizuho Financial Group, Inc.

2014

¥

¥

744,264—(28,973)2013¥

912,155—(73,631)2014$

7,231,490—(281,512)(23,355)(136,983)(226,929)

136,235
77,031(2,220)82,38425,146(82,949)(32,543)
106,639

1,323,700
748,460(21,572)
800,468

985,366¥

717,832$

9,574,105

5. Related Information(a) Information about Geographic Areas(i) Ordinary income

2014

Ordinary Income

2013

Ordinary Income

2014

Ordinary IncomeJapan¥ 2,275,599

Americas¥Japan¥ 2,284,685

Europe¥Americas¥Japan$ 22,110,375

202,888$244,863

180,856

Europe¥133,373

Americas

Europe1,971,323$ 1,757,252

Asia/Oceania
excluding Japan

¥

268,415

Millions of yen
Total

¥

Millions of yen

Asia/Oceania
excluding Japan¥

250,083

2,927,760

Total

¥

2,913,005

Thousands of U.S. dollars
Asia/Oceania
excluding Japan
Total$ 2,608,006$ 28,446,956

Notes: 1. Geographic analyses are presented based on geographic contiguity, similarities in economic activities, andrelation of business operations. The above table shows Ordinary Income instead of sales of non-financial
companies.
2.Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas
branches, Americas includes Ordinary Income of consolidates subsidiaries and branches in Canada, theUnited States of America and others, Europe includes Ordinary Income of consolidated subsidiaries andbranches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated
subsidiaries and branches in Hong Kong, the Republic of Singapore and others.
(ii) Tangible fixed assets
Information on tangible fixed assets by geographical areas as of March 31, 2014 and 2013 is not disclosed sincetangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.
(b) Information about Major Customers
Information about major customers is not disclosed since there are no outside customers accounted for more than
10% of Ordinary Income of the Company.

Financial Data of Mizuho Financial Group, Inc.—94

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

6. Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Retailbanking

Personalbanking
For the Fiscal Year
ended March 31, 2014

Impairment Loss

¥

— ¥

—

— ¥

—

¥ 1,153

¥

¥

— ¥

149

¥

OthersTradingandothers— ¥ 3,538 ¥ 3,538¥ 1,645 ¥ 5,184

MHFG(Consolidated)

OthersMHSC(Consolidated)

MHTB(Consolidated)

Impairment Loss¥

International

Financial
Institutions& Public
sectorbusiness

Corporatebanking

Corporatebanking(Largecorporations)19¥ 6,506

Millions of yen
The former MHBK (Consolidated)
The former MHBK (Unconsolidated)

For the Fiscal Year
ended March 31, 2013

Impairment Loss¥

Corporatebanking(Largecorporation)

Retailbanking

Personalbanking— ¥—¥Corporatebanking— ¥—Financial
Institutions& Public
sectorbusiness¥—

OthersTradingandothers¥ 7,694¥ 7,694

The former MHCB (Consolidated)
The former MHCB (Unconsolidated)
Corporatebanking(Largecorporation)

Impairment Loss

¥

—

MHTB
(Consolidated)

Impairment Loss

Financial
Institutions& Public
sectorbusiness

Corporatebanking¥—¥

95—Financial Data of Mizuho Financial Group, Inc.

¥

Tradingandothers¥¥ 1,600 ¥ 1,600

MHFG(Consolidated)

Others¥ 482—

International5¥ 11,912—

MHSC(Consolidated)¥ 390¥ 8,085

Others¥ 1,737 ¥0 ¥ 3,338

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal
Year ended
March 31, 2014

Impairment
Loss

$

— $

MHTB
(Consolidated)

Impairment
Loss

—

$

— $

$

—

$

1,451

$

OthersTradingandothersInternational— $—$ 34,383 $ 34,383$ 15,989 $ 50,372

MHFG(Consolidated)

OthersMHSC(Consolidated)$ 11,209

Financial
Institutions& Public
sectorbusiness

Corporatebanking

Corporatebanking(Largecorporations)

Retailbanking

Personalbanking

192$ 63,224

7. Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

For the Fiscal Year ended
March 31, 2014

Amortization of Goodwill ¥Unamortized Balance of¥Goodwill

Amortization of Goodwill
Unamortized Balance ofGoodwill

Retailbanking

— ¥

—

— ¥

—

Corporatebanking(Largecorporations)

Corporatebanking

¥

— ¥

—

¥

— ¥

—

OthersFinancial
Institutions& Public
sectorbusiness

International

¥

—

¥

— ¥

— ¥

—

¥

¥

—

¥

— ¥

— ¥

—

¥ 11,262 ¥11,262

OthersTradingandothers

685 ¥

685

MHFG
(Consolidated)

MHTB(Consolidated)

MHSC(Consolidated)

¥

—

¥

—

¥

2,986

¥

¥

—

¥

—

¥

50,976¥ 62,238

3,672

Financial Data of Mizuho Financial Group, Inc.—96

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Millions of yen

Retailbanking

Personalbanking
For the Fiscal Year ended
March 31, 2013

Amortization of Goodwill
Unamortized Balance ofGoodwill

¥

— ¥

—

¥

— ¥

—

The former MHBK (Consolidated)
The former MHBK (Unconsolidated)
Trading
Financial
Corporate
Corporate
andInstitutions
bankingbankingothers& Public(Largesectorcorporation)business

Others

¥

— ¥

—

¥

— ¥

—

¥

—

¥ 274

¥ 274

¥

— ¥

—

¥

— ¥

—

¥

—

¥2,054¥2,054

The former MHCB (Consolidated)
The former MHCB (Unconsolidated)
Corporatebanking

Corporatebanking(Largecorporation)

Amortization of Goodwill
Unamortized Balance ofGoodwill

¥

—

¥

—

¥

—

¥

—

TradingandothersInternational

MHSC(Consolidated)

Others

¥

— ¥

—¥

— ¥

—

¥

—

¥

¥

— ¥

—¥

— ¥

—

¥

—

¥ 1,742

217

¥

217

¥ 1,742

MHFG(Consolidated)

OthersMHTB(Consolidated)

Amortization of Goodwill
Unamortized Balance ofGoodwill

Financial
Institutions& Public
sectorbusiness¥—¥ 2,912¥ 3,405¥—¥ 53,889¥ 57,686

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)
Personalbanking

Retailbanking

For the Fiscal Year ended
March 31, 2014

Amortization of Goodwill $Unamortized Balance of$Goodwill

Amortization of Goodwill
Unamortized Balance ofGoodwill

Corporatebanking(Largecorporations)

Corporatebanking

Financial
Institutions& Public
sectorbusiness

International

OthersTradingandothers

— $

—

$

— $

—

$

—

$

— $

—

$

—

$

— $

—

$

— $

—

$

—

$

— $

—

$

—

$109,430 $109,430

OthersMHTB(Consolidated)

MHSC(Consolidated)

$

—

$

—

$

$

—

$

—

$ 495,301

97—Financial Data of Mizuho Financial Group, Inc.

29,018MHFG(Consolidated)$

35,678$ 604,731

6,660 $

6,660

8. Information about Gain on Negative Goodwill Incurred by Reportable Segment
Millions of yen
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2014

Gain on
Negative
Goodwill
Incurred¥

Corporatebanking(Largecorporations)

Retailbanking

Personalbanking

— ¥

—

¥

— ¥

—

MHTB
(Consolidated)

MHSC(Consolidated)

Others¥¥¥Gain on
Negative
Goodwill
Incurred——¥

OthersTradingandothersInternational

Financial
Institutions& Public
sectorbusiness

Corporatebanking

— ¥

— ¥

— ¥

—

¥

5,621 ¥

5,621

MHFG
(Consolidated)—¥ 5,621

Millions of yen
The former MHBK (Consolidated)
The former MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2013

Gain on
Negative
Goodwill
Incurred

Personalbanking

Retailbanking

¥

¥

—

—

¥

— ¥

—

¥

OthersTradingandothersFinancial
Institutions& Public
sectorbusiness

Corporatebanking

Corporatebanking(Largecorporation)

— ¥

—

¥

—

¥ 30,040¥ 30,040

The former MHCB (Consolidated)
The former MHCB (Unconsolidated)
Corporatebanking

Corporatebanking(Largecorporation)

Gain on
Negative
Goodwill
IncurredGain on
Negative
Goodwill
Incurred

¥

—

¥

—

Financial
Institutions& Public
sectorbusiness¥—

International

Tradingandothers¥¥MHTB(Consolidated)

Others

MHFG(Consolidated)¥¥ (41,782)

¥

—

—

—

¥

—

MHSC
(Consolidated)

Others¥¥11,742—¥11,742—

Financial Data of Mizuho Financial Group, Inc.—98

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements

Thousands of U.S. dollars
MHBK (Consolidated)
MHBK (Unconsolidated)

For the Fiscal Year
ended March 31,
2014

Gain on
Negative
Goodwill
Incurred

Personalbanking$

Corporatebanking(Largecorporations)

Retailbanking— $—$Corporatebanking

— $

—

MHTB
(Consolidated)

MHSC(Consolidated)

Others$$$Gain on
Negative
Goodwill
Incurred——Financial
Institutions& Public
sectorbusiness$—

International

$

— $

MHFG
(Consolidated)—$ 54,619

44. Related Party
For the fiscal years ended March 31, 2014 and 2013
・There are no material additions to the current scope subject to disclosure.

99—Financial Data of Mizuho Financial Group, Inc.

OthersTradingandothers— $—$ 54,619$ 54,619

45. Per Share Information
Per share information as of or for the fiscal years ended March 31, 2014 and 2013 are calculated based on the following
information:
As of or for the fiscal years ended March 31,

2014

Net Assets per Share of Common StockNet Income per Share of Common Stock
Diluted Net Income per Share of Common Stock

Yen

U.S. dollars
2014

2013

¥ 253.25
28.18
27.12

$ 2.460.27
0.26¥ 229.70
22.96
22.05

Notes: 1. Total Net Assets per Share of Common Stock is based on the following information.
Millions of yen
2014

As of March 31,

2013

Thousands of U.S. dollars
2014

Total Net Assets¥ 8,304,549¥ 7,736,230
Deductions from Total Net Assets
2,163,015
2,190,405
Paid-in Amount of Preferred Stock
312,651
377,354
Cash Dividends on Preferred Stock
3,126
3,956
Stock Acquisition Rights
3,179
2,687
Minority Interests
1,844,057
1,806,407
Net Assets (year-end) related to Common
Stock6,141,534
5,545,824
Year-end Outstanding Shares of Common
Stock, based on which Total Net Assets
per Share of Common Stock was
24,142,736 Thousand sharescalculated
24,250,067 Thousand shares$ 80,689,363
21,016,470
3,037,809
30,37830,897
17,917,386
59,672,893/

2. Net Income per Share of Common Stock is based on the following information.
Millions of yen
2014

For the fiscal years ended March 31,

Net Income
Amount not attributable to Common Stock
Cash Dividends on Preferred Stock
Cancellation differences on Dividend
Preferred StockNet Income related to Common Stock
Average Outstanding Shares of Common
Stock (during the period)¥

688,415
6,744
6,437

¥

307
681,670
24,189,669 Thousand shares

2013

Thousands of U.S. dollars
2014

560,516
8,221
8,221

$ 6,688,837
65,53562,546—552,294

2,989
6,623,302

24,053,281 Thousand shares/

3. Diluted Net Income per Share of Common Stock is based on the following information.
Millions of yen
2014

For the fiscal years ended March 31,

Adjustments to Net Income
Cash Dividends on Preferred Stock
Increased Number of Shares of Common
Stock
Preferred Stock
Stock Acquisition Rights
Description of Dilutive Securities whichwere not included in the Calculation of
Diluted Net Income per Share ofCommon Stock as they have no dilutive
effects

¥

6,437
6,437
1,181,582 Thousand shares
1,164,941 Thousand shares
16,641 Thousand shares
—

2013

¥

Thousands of U.S. dollars
2014

7,120
7,120
1,311,947 Thousand shares
1,291,854 Thousand shares
20,092 Thousand shares—$

62,54662,546////

Financial Data of Mizuho Financial Group, Inc.—100

Financial Data of Mizuho Financial Group, Inc.

Notes to Consolidated Financial Statements(Changes in accounting policies)
Mizuho Financial Group has applied “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May
17, 2012) (hereinafter, the “Accounting Standard”) and “Guidance on Accounting Standard for Retirement
Benefits” (ASBJ Statement No. 25, May 17, 2012) (hereinafter, the “Guidance”) beginning with the end of thisfiscal year (excluding regulations stipulated in the text of the Accounting Standard, Paragraph 35 and the
Guidance, Paragraph 67) and the Accounting Standard and the Guidance have been applied in accordance withthe transitional treatment stipulated in the Accounting Standard, Paragraph 37.
As a result of this, Net Assets per Share of Common Stock as of March 31, 2014 decreased by ¥0.95 ($0.01).

46. Subsequent Events
The board of directors of Mizuho Financial Group, Inc. has resolved, at the meeting of the board of directors held on May
14, 2014, to redeem in full preferred securities issued by its group’s overseas special purpose subdsidiaries as set forth
below.
(1) Issuers(2) Type of securities(3) Total redemption amount(4) Scheduled redemption date(5) Major reasons for the redemption

101—Financial Data of Mizuho Financial Group, Inc.

a. Mizuho Capital Investment (USD) 2 Limitedb. Mizuho Capital Investment (JPY) 5 Limited
Non-cumulative Perpetual Preferred Securities
a. US$ 850 million
b. Series A ¥139,500 million
June 30, 2014
Arrival of optional redemption dateNon-Consolidated Financial Statements ofMizuho Financial Group, Inc. and Three
Subsidiaries[Under Japanese GAAP]
Mizuho Financial Group, Inc.
Non-Consolidated Balance Sheet

1

Non-Consolidated Statement of Income

2

Mizuho Bank, Ltd.
Non-Consolidated Balance Sheet

3

Non-Consolidated Statement of Income

5

Mizuho Trust & Banking Co., Ltd.
Non-Consolidated Balance Sheet

6

Non-Consolidated Statement of Income

8

Mizuho Securities Co., Ltd.
Non-Consolidated Balance Sheet

9

Non-Consolidated Statement of Income

12Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Financial Group, Inc.

Non-Consolidated Balance Sheet
Millions of yen
2014

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Other Current Assets
Fixed Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments in Subsidiaries and Affiliates
Other Investments
Total Assets
Liabilities and Net Assets
Liabilities
Current Liabilities
Short-term Borrowings
Short-term Bonds
Other Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Treasury Stock
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Stock Acquisition Rights
Total Net Assets
Total Liabilities and Net Assets

Thousands of
U.S. dollars
2014

2013

¥

86,866
17,26969,597
6,164,457
7,655
4,064
6,023,433
129,304¥

81,311
26,36554,945
6,120,838
4,585
2,611
6,023,433
90,208$844,021
167,794
676,227
59,895,626
74,38839,49058,525,391
1,256,357¥

6,251,324¥

6,202,149$

60,739,647¥

1,070,361
561,460
500,000
8,901
280,546¥

1,153,827
646,995
500,000
6,832
259,398$

10,399,932
5,455,305
4,858,142
86,4852,725,868¥

1,350,907

1,413,226

13,125,800

4,866,470
2,254,972
1,194,864
1,194,864
1,419,866
4,350
1,415,516
1,415,516(3,233)30,76630,7663,179
4,900,417
6,251,324

4,768,840
2,254,972
1,194,864
1,194,864
1,323,298
4,350
1,318,948
1,318,948(4,295)
17,395
17,395
2,687
4,788,923
6,202,149

47,284,009
21,909,958
11,609,648
11,609,648
13,795,824
42,266
13,753,558
13,753,558(31,421)298,940
298,940
30,89847,613,847
60,739,647¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

1—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries$

Non-Consolidated Statements of Income
Millions of yen
2014

For the Fiscal Years ended March 31,

Operating Income
Cash Dividends Received from Subsidiaries and Affiliates
Fee and Commission Income Received from Subsidiaries andAffiliates
Operating Expenses
General and Administrative Expenses
Operating Profits
Non-Operating Income
Non-Operating Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred
Net Income¥¥

316,886
285,129¥

Thousands of
U.S. dollars
2014

2013

262,180
233,055$

3,078,956
2,770,399

31,756
22,591
22,591

29,124
21,074
21,074

308,557
219,508
219,508

294,294
12,527
20,332
286,489

241,105
17,86917,077
241,8972,859,448
121,719
197,554
2,783,613

288
339
285,861226
333
241,337

2,802
3,296
2,777,515¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—2

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Balance Sheet
For the figures as of March 31, 2013, figures for the former Mizuho Corporate Bank, Ltd. are presented.
Millions of yen
2014

As of March 31,

AssetsCash and Due from Banks¥
Call Loans
Receivables under Resale Agreements
Guarantee Deposits Paid under Securities Borrowing Transactions
Other Debts Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLease Assets
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

Thousands of
U.S. dollars
2014

2013

19,218,757
434,458
642,344
388,060
480,372
4,972,189
2,807
42,174,781
66,836,553
1,507,927
4,988,999
834,166
286,062
428,307
16,57534,45568,765344,173
227,409
4,245
112,518
378,416
47,591
5,668,241(510,675)(15)¥ 5,213,082
483,401
969,105
986,277
125,8735,494,339
2,836
26,985,546
31,187,804
1,255,731
6,221,384
96,21023,02550,363
159
8,596
14,06559,575
47,1171
12,456125,222—
4,587,056(333,355)(1,196)$¥ 148,409,149¥ 83,458,896$ 1,441,985,518

3—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

186,734,919
4,221,318
6,241,204
3,770,502
4,667,436
48,311,208
27,281
409,782,176
649,402,969
14,651,449
48,474,538
8,104,998
2,779,461
4,161,561
161,049
334,782
668,145
3,344,085
2,209,572
41,249
1,093,264
3,676,799
462,409
55,074,243(4,961,869)(147)

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2014

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes
Other Liabilities
Reserve for Bonus Payments
Reserve for Possible Losses on Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Reserve for Reimbursement of Debentures
Deferred Tax Liabilities
Deferred Tax Liabilities on Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Other Capital Surplus
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains(Losses), net of Taxes
Revaluation Reserve for Land, net of Taxes
Total Net Assets
Total Liabilities and Net Assets¥

Thousands of
U.S. dollars
2014

2013

97,903,395
6,058,995
7,656,634¥ 33,464,961
13,053,038
6,736,846$

951,257,245
58,870,925
74,394,035

3,159,574
3,144,085
8,968,740
436,106
25,0003,958,105
4,989,613
19,3891,259
215
15,30754,956—
81,0605,668,241

5,285,682
3,646,047
2,795,165
291,438
40,0003,317,003
5,974,304
8,928
48
3,314
—
—
86,50016,2094,587,056

30,699,329
30,548,829
87,142,838
4,237,335
242,90738,458,080
48,480,508
188,397
12,234
2,096
148,732
533,974—
787,603
55,074,243

142,140,682

79,306,546

1,381,079,310

5,531,648
1,404,065
2,286,795
655,324
1,631,471
1,840,787
63,545
1,777,242
1,777,242
736,818
597,410(1,337)140,745
6,268,466¥ 148,409,149

3,545,598
1,404,065
1,039,244
578,540
460,703
1,102,288
29,443
1,072,845
1,072,845
606,752
459,836
119,539
27,375
4,152,350¥ 83,458,896

53,747,073
13,642,295
22,219,161
6,367,321
15,851,840
17,885,617
617,424
17,268,193
17,268,193
7,159,135
5,804,613(12,997)
1,367,519
60,906,208$ 1,441,985,518

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—4

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Bank, Ltd.

Non-Consolidated Statement of Income
For the fiscal year ended March 31, 2013, figures for the former Mizuho Corporate Bank, Ltd. are presented.

2013

Thousands of
U.S. dollars
2014¥ 1,096,265
711,695
274,925
384,827
38,994142,975
216,915¥ 678,189
396,583
195,704
184,242
44,129195,651
58,744$ 10,651,628
6,915,037
2,671,250
3,739,096
378,885
1,389,194
2,107,608

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

1,879,9781,160,957

18,266,411

296,160
99,94472,351556
95,688675,728
86,321

276,493
81,921
25,192—65,457
259,604
276,436

2,877,581
971,085
702,986
5,403
929,736
6,565,574
838,726

Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

1,226,806
653,171

903,184
257,773

11,920,006
6,346,405

71,924136,0196,713
212

698,836
1,321,607

445,228¥ 250,846

Millions of yen
2014

For the Fiscal Years ended March 31,

IncomeInterest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income

Net Income¥

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

5—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries$

4,325,962

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheet
Millions of yen
2014

As of March 31,

AssetsCash and Due from Banks
Call Loans
Other Debts Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Other Assets
Tangible Fixed Assets
Buildings
Land
Lease Assets
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Prepaid Pension Cost
Deferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Reserves for Possible Losses on Loans
Reserve for Possible Losses on Investments
Total Assets

Thousands of
U.S. dollars
2014

2013

¥ 1,028,662
202,058
57,59160,9181,513
1,837,573
3,137,852
1,580
88,917
26,384
10,56012,762―
3,062
14,444
14,278165
42,8036,524
40,151(12,709)(11)¥

621,643
6,583
70,84872,374―
1,829,069
3,726,100
361
78,211
27,55910,85913,1960
3,504
17,56017,394165
40,431
2,040
46,682(16,804)(6)¥ 6,534,256¥ 6,522,657$

9,994,781
1,963,255
559,570
591,901
14,705
17,854,389
30,488,270
15,355
863,950
256,363
102,607
124,002―29,754140,343
138,734
1,609
415,887
63,393
390,127(123,487)(110)$ 63,488,692

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—6

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Trust & Banking Co., Ltd.

Non-Consolidated Balance Sheetー(Continued)

As of March 31,

Liabilities and Shareholders' Equity
Liabilities
Deposits
Call Money
Payables under Repurchase Agreements
Guarantee Deposits Received under Securities Lending
Transactions
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Bonds and Notes
Due to Trust Accounts
Other Liabilities
Reserve for Bonus Payments
Reserve for Contingencies
Reserve for Reimbursement of Deposits
Acceptances and Guarantees
Total Liabilities
Net Assets
Shareholders' Equity
Common Stock and Preferred Stock
Capital Surplus
Capital Reserve
Retained Earnings
Appropriated Reserve
Other Retained Earnings
Retained Earnings Brought Forward
Valuation and Translation Adjustments
Net Unrealized Gains on Other Securities, net of Taxes
Net Deferred Hedge Gains (Losses), net of Taxes
Total Net Assets
Total Liabilities and Net Assets

2013

Thousands of
U.S. dollars
2014¥ 3,151,242
996,045
10,291¥ 3,036,842
885,188―$ 30,618,367
9,677,864
99,990446,947
61,320168,5628
61,5001,084,938
45,542
2,013
―
1,144
40,151

477,688
67,781
522,951―
78,700918,454
49,931
1,936
13,544
1,097
46,682

4,342,666
595,803
1,637,803
80597,552
10,541,569
442,508
19,565―
11,117
390,127

6,069,708

6,100,798

58,975,011

401,231247,369
15,505
15,505
138,356
12,041
126,315
126,315
63,316
67,616(4,300)464,548¥ 6,534,256

361,598
247,369
15,505
15,50598,723
9,508
89,214
89,21460,26061,399(1,139)421,858¥ 6,522,657

3,898,481
2,403,514
150,653
150,653
1,344,314
116,998
1,227,316
1,227,316
615,200
656,984(41,784)
4,513,681
63,488,692

Millions of yen
2014

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

7—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries$

Non-Consolidated Statement of Income

2013

Thousands of
U.S. dollars
2014¥ 51,434
52,66433,923
17,33949,524
2,405
9,086
27,930¥ 47,794
54,44337,833
14,94946,232
2,139
12,1437,576$ 499,749
511,698
329,608
168,476
481,191
23,372
88,286271,381

Total Income
Expenses
Interest Expenses
Deposits
Fee and Commission Expenses
Trading Expenses
Other Operating Expenses
General and Administrative Expenses
Other Expenses

193,044

170,329

1,875,677

12,6182,810
25,899116
3,720
76,4186,188

13,398
4,093
24,556―1,240
81,995
15,369122,60927,309251,648
1,135
36,150742,50260,127

Total Expenses
Income before Income Taxes
Income Taxes:
Current
Deferred

124,962
68,082

136,560
33,7691,214,171
661,506

17,169(1,384)

10,751(2,877)

166,828(13,457)¥ 52,297¥ 25,895$ 508,135

For the Fiscal Years ended March 31,

IncomeFiduciary Income
Interest Income
Loans and Bills Discounted
Securities
Fee and Commission Income
Trading Income
Other Operating Income
Other Income

Net Income

Millions of yen
2014

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—8

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheet
Millions of yen
2014

As of March 31,

AssetsCurrent Assets
Cash and Due from Banks
Cash Segregated as Deposits for Customers and Others
Trading Assets
Trading Securities and Others
Derivatives
Receivables - unsettled Trades
Operating Investment Securities
Operating Loans Receivable
Receivables Related to Margin Transactions
Loans Receivable under Margin Transactions
Cash Collateral for Borrowed Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-receivable
Deposits Paid for Securities Borrowed
Securities Purchased under Agreements to Resell
Advances Paid
Short-term Guarantee Deposits
Securities: Fail to Deliver
Variation Margin Paid
Short-term Loans Receivable
Advance Payments
Prepaid Expenses
Accounts Receivable-otherAccrued income
Deferred Tax Assets
Other Current Assets
Less: Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Tangible Fixed Assets
Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Long-term Guarantee Deposits
Prepaid Pension Cost
Deferred Tax Assets
Other
Less: Allowance for Doubtful Accounts
Total Noncurrent Assets
Total Assets¥

153,502
164,937
5,262,651
4,174,833
1,087,818
82,26718,483
3,598
85,274
69,407¥

2013

149,917
94,5086,496,354
5,384,711
1,111,642―
22,902
4,098
60,38947,791Thousands of
U.S. dollars
2014$

1,491,476
1,602,575
51,133,424
40,563,871
10,569,553
799,339
179,586
34,959828,555
674,382

15,867
4,926,123
4,789,303
136,820662
108,208
3,843
1,353
59,677
988
2,703
1,669
20,74921,84234(21)

12,5974,850,073
4,654,470
195,60280
77,897
6,275
6,704
38,818
201
2,627
652
22,007
13,9894,025(18)154,173
47,863,620
46,534,237
1,329,383
6,438
1,051,386
37,34913,149579,844
9,605
26,264
16,224
201,612212,230339(213)

10,918,552

11,851,505

106,087,761

17,28430,210308,211
230,933
16,843
7,138
18,98638,929(4,619)17,942
26,987
275,834
213,200
16,202
6,992
13,38830,588(4,537)

167,942
293,5362,994,671
2,243,814
163,654
69,357
184,483
378,247(44,884)

355,706

320,764

3,456,149¥ 11,274,259 ¥ 12,172,269$ 109,543,910

9—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2014

As of March 31,

Liabilities
Current Liabilities
Trading Liabilities
Trading Securities and Others
Derivatives
Payable - unsettled Trades
Payables Related to Margin Transactions
Borrowings on Margin Transactions
Cash Collateral for Loaned Securities under Margin
Transactions
Collateralized Short-term Financing Agreements-payable
Deposits Received for Securities Loaned
Securities Sold under Agreements to Repurchase
Deposits Received
Guarantee Deposits Received
Securities: Fail to Receive
Short-term Borrowings
Commercial Paper
Bonds and Notes Due within One year
Lease Obligations
Advances Received
Accounts Payable-otherAccrued Expenses
Income Taxes Payable
Reserve for Bonus Payments
Provision for Bonus point Redemption
Other Current Liabilities¥

4,209,557
3,216,324
993,232―
22,643
6,782¥

Thousands of
U.S. dollars
2014

2013

3,770,998
2,774,144
996,853
382,81222,912
8,021$

40,901,261
31,250,728
9,650,533―
220,01365,901

15,8614,251,865
2,630,804
1,621,061
131,547
70,936
5,352
509,698
290,100
48,353
432
497
2,375
22,533
1,112
12,627695
2,752

14,8904,487,174
2,430,352
2,056,821
106,928
73,2572,310
1,301,000
312,400
54,371
519
386
1,701
23,408
2,545
8,965
498
2,234

154,11241,312,336
25,561,646
15,750,690
1,278,149
689,243
52,005
4,952,380
2,818,694
469,817
4,202
4,836
23,082
218,945
10,807
122,692
6,763
26,748

Total Current Liabilities
Noncurrent Liabilities
Bonds and Notes
Long-term Borrowings
Long-term Borrowings from Affiliates
Lease Obligations
Provision for Retirement Benefits
Other Noncurrent Liabilities

9,583,084

10,554,423

93,111,973

455,877
404,900
212,000
1,730
16,094
2,065

382,338
401,400
267,000
2,162
15,282
2,058

4,429,434
3,934,124
2,059,852
16,817
156,380
20,068

Total Noncurrent Liabilities
Statutory Reserves
Reserve for Financial Instrument Transaction Liabilities

1,092,668

1,070,243

10,616,675

1,254

1,185

12,192

1,254

1,185

12,192¥ 10,677,007 ¥ 11,625,851$ 103,740,840

Total Statutory Reserves
Total Liabilities

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—10

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Mizuho Securities Co., Ltd.

Non-Consolidated Balance Sheetー(Continued)
Millions of yen
2014

As of March 31,

Net Assets
Shareholders' Equity
Common Stock
Capital Surplus
Additional Paid in Capital
Other Capital Surplus
Total Capital Surpluses
Retained Earnings
Other Retained Earnings
Retained Earnings Brought Forward
Total Retained Earnings
Total Shareholder's Equity
Valuation and Translation Adjustments
Net Unrealized Gains on (Operating) Investment Securities, net ofTax
Net Deferred Gains or Losses on Hedges, net of Tax
Total Valuation and Translation Adjustments
Total Net Assets
Total Liabilities and Net Assets¥

125,167¥2013

125,167

Thousands of
U.S. dollars
2014$

1,216,161

285,831
95,817
381,649

285,831
95,817
381,649

2,777,219
930,995
3,708,214

91,516
91,516598,333

31,39531,395538,212889,204
889,204
5,813,579

16,86515,021(17,946)(6,816)(1,081)
8,205
597,251
546,417¥ 11,274,259 ¥ 12,172,269

163,869(174,378)(10,509)5,803,070$ 109,543,910

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

11—Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries

Non-Consolidated Statement of Income
Millions of yen
2014

For the Fiscal Years ended March 31,

Operating Revenues
Commissions
Brokerage Commissions
Underwriting and Selling Fees, and Commissions from
Solicitation to Qualifying Investors
Offering, Selling, and Other Commissions and Fees, andCommissions from Solicitation to Qualifying Investors
Other commissions and Fees
Net Gain on Trading
Net Gain (loss) on Operating Investment Securities
Interest and Dividend Income
Total Operating Revenues
Interest Expenses
Net Operating Revenues
Selling, General and Administrative Expenses
Transaction-related Expenses
Personnel Expenses
Real Estate Expenses
Administrative Expenses
Depreciation and Amortization
Taxes and Dues
Provision of Allowance for Doubtful Accounts
Other
Operating Income
Non-operating Income
Non-operating Expenses
Ordinary Income
Extraordinary gain
Gain on Sales of Noncurrent Assets
Gain on Sale of Investment Securities
Reversal of Reserve for Financial Instruments Transaction
Liabilities
Extraordinary loss
Loss on Disposal of Noncurrent Assets
Loss on Sale of Investment Securities
Loss on Impairment of Investment Securities
Loss on Impairment of Investments in Subsidiaries and Affiliates
Loss on Impairment of Golf Club Membership
Impairment Losses
Merger Expenses
Head office transfer cost
Provision of Reserve for Financial Instruments Transaction
Liabilities
Income before Income Taxes
Income Taxes - current
Income Taxes - deferred
Total Income Taxes
Net Income¥¥

148,149
43,105¥

2013

101,652
21,219Thousands of
U.S. dollars
2014$

1,439,466
418,822

24,47018,890237,766

37,13143,442
95,563
1,998
33,373
279,085
26,345
252,739
202,775
41,30682,762
26,95930,04615,023
2,390
126
4,158
49,964
5,148
792
54,320
5,705
―
5,705

28,58632,956
76,640(2,128)44,937221,102
32,006
189,095
155,554
30,422
62,772
24,471
20,02011,853
2,257
2
3,754
33,541
5,870
392
39,019
1,731
23
1,700

360,783
422,095
928,524
19,416324,267
2,711,673
255,985
2,455,688
1,970,220
401,349
804,144
261,949
291,939
145,970
23,231
1,230
40,408
485,468
50,027
7,699
527,796
55,432―55,432

―
5,983
421
417
19
489
7
149
2,115
2,293

7
12,746
602
240
17
2,583
90
1,395
7,815
―

―
58,136
4,096
4,058
188
4,761
71
1,451
20,551
22,284

69
54,042
2,169(8,248)(6,078)60,121―
28,004
3,240(6,632)(3,391)
31,395676
525,092
21,080(80,143)(59,063)584,155¥$

Notes: 1. The amounts indicated in millions of yen are rounded down by truncating the figures below one million.
2. The rate of ¥102.92=US$1.00, the foreign exchange rate on March 31, 2014, has been used for translation.

Non-Consolidated Financial Statements of Mizuho Financial Group, Inc. and Three Subsidiaries—12

Status of Capital Adequacy
Capital Adequacy Ratio Highlights

1

Status of Mizuho Financial Group's Consolidated
Capital Adequacy

3

Scope of Consolidation

3

Composition of Capital

5

Risk-based Capital

21

Credit Risk

24

Methods for Credit Risk Mitigation

40

Counterparty Risk in Derivatives Transactionsand Long-settlement Transactions

41

Securitization Exposure

44

Market Risk

66

Operational Risk

66

Equity Exposure in Banking Book

66

Compensation of Directors, Corporate Auditorsand Employees

68

Indicators for assessing Global Systemically
Important Banks (G-SIBs)

73

Status of Capital Adequacy

Capital Adequacy Ratio Highlights

The Basel Framework, based on the “International Convergence of Capital Measurement and Capital Standards: A
Revised Framework” issued by the Basel Committee on Banking Supervision, requires the disclosure of capital adequacy
information to ensure the enhanced effectiveness of market discipline. Our disclosure is made under the “Matters
Separately Prescribed by the Commissioner of the Financial Services Agency Regarding Capital Adequacy Conditions, etc.
pursuant to Article 19-2, Paragraph 1, Item 5, Subitem (d), etc. of the Ordinance for Enforcement of the Banking Law(Ministry of Finance Ordinance No. 10 of 1982)” (the FSA Notice No. 7 of 2014, etc.).
We have adopted (a) the advanced internal ratings-based approach as a method to calculate the amount of credit risk
weighted assets and (b) the advanced measurement approach as a method to calculate the amount equivalent to theoperational risk.
We calculate capital adequacy ratios based on the revised FSA Notices (“Standards for Determining the Status of Capital
Adequacy for bank holding companies, in accordance with Banking Law Article 52-25” (the FSA Notice No. 20 of 2006), as
amended (the “FSA Notice No. 20”) from the fiscal year ended March 31, 2013.
With respect to the tables for the fiscal year ended March 31, 2013, set forth under the heading “Status of Capital
Adequacy,” figures for Mizuho Financial Group, the former Mizuho Corporate Bank and Mizuho Trust & Banking arecalculated based on the Basel III International Standard, and figures for the former Mizuho Bank are calculated based on
the Basel II Domestic Standard. Figures for the fiscal year ended March 31, 2014 for Mizuho Financial Group, Mizuho Bankand Mizuho Trust & Banking are calculated based on the Basel III International Standard.
■ Capital Adequacy Ratio Highlights
Billions of yen

Mizuho Financial Group (Consolidated)
As of March 31,

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets

2014(Basel III)2013
(Basel III)14.36%

14.19%

11.35%
8.80%¥ 8,655.9
6,844.7
5,304.4¥ 60,274.0

11.03%
8.16%¥ 8,344.5
6,486.0
4,802.4¥ 58,790.6(Reference)
Mizuho Bank (Consolidated)

Billions of yen

As of March 31, 2014

(Basel III)

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets

15.48%

The former Mizuho Bank(Consolidated)
As of March 31, 2013

Consolidated Capital Adequacy
Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital

1—Status of Capital Adequacy

12.35%
10.19%¥ 8,180.6
6,525.3
5,386.5¥ 52,823.7

Billions of yen(Basel II)

15.04%¥

11.66%
2,381.8

The former Mizuho Corporate Bank(Consolidated)
As of March 31, 2013

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio

Billions of yen(Basel III)13.91%
11.04%
8.66%

Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk Weighted Assets

920.8
231.5
¥ 3,071.2¥ 20,412.3

Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets¥

5,130.1
4,071.3
3,195.0¥ 36,873.8

Mizuho Bank (Non-Consolidated)

Billions of yen(Basel III)As of March 31, 2014

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets
The former Mizuho Bank
(Non-Consolidated)
As of March 31, 2013

Non-consolidated Capital Adequacy
Ratio (Domestic Standard)
Tier 1 Capital Ratio
Tier 1 Capital
Tier 2 Capital
Deductions for Total Risk-based Capital
Total Risk-based Capital
Risk Weighted Assets

15.58%
12.29%
10.15%¥ 8,071.7
6,369.6
5,260.2¥ 51,803.7

Billions of yen(Basel II)

15.46%
11.49%
2,294.1
920.1
126.9¥ 3,087.3¥ 19,959.0¥

The former Mizuho Corporate Bank
(Non-Consolidated)
As of March 31, 2013

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets

Mizuho Trust & Banking (Consolidated)
As of March 31,

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets

Billions of yen(Basel III)15.33%
12.18%
9.16%¥ 5,007.7
3,979.9
2,993.0¥ 32,663.9

2014(Basel III)

Billions of yen
2013(Basel III)17.80%

17.21%

14.76%
14.76%
¥
456.6
378.7
378.7
¥ 2,564.6

13.24%
13.24%
447.5
344.2
344.2
2,599.6¥¥

Mizuho Trust & Banking (Non-consolidated)
As of March 31,

Total Capital Ratio(International Standard)
Tier 1 Capital Ratio
Common Equity Tier 1 Capital Ratio
Total Capital
Tier 1 Capital
Common Equity Tier 1 Capital
Risk Weighted Assets

2014(Basel III)

Billions of yen
2013(Basel III)17.79%

17.43%

14.76%
14.76%
¥
451.2
374.5
374.5
¥ 2,536.1

13.45%
13.45%
446.3
344.5
344.5
2,561.0¥¥

Status of Capital Adequacy—2

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Scope of Consolidation(1) Scope of Consolidation for Calculating Consolidated Capital Adequacy Ratio(a) Difference from the Companies Included in the Scope of Consolidation Based on Consolidation
Rules for Preparation of Consolidated Financial Statements (the “Scope of Accounting
Consolidation”)
None as of March 31, 2014 and 2013.

(b) Number of Consolidated Subsidiaries
As of March 31,

2014

2013

Consolidated Subsidiaries

159

145

Our major consolidated subsidiaries are Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co.,Ltd.
The following table sets forth information with respect to our principal consolidated subsidiaries as of March 31, 2014

Name

Country ofOrganization

Domestic
Mizuho Bank, Ltd. .............................................Japan
Mizuho Trust & Banking Co., Ltd. .....................Japan
Mizuho Securities Co., Ltd. ...............................Japan
Trust & Custody Services Bank, Ltd. ...............Japan
Mizuho Asset Management Co., Ltd. ...............Japan
Mizuho Research Institute Ltd. ........................Japan
Mizuho Information & Research Institute Inc. ..Japan
Mizuho Financial Strategy Co., Ltd. .................Japan
Mizuho Private Wealth Management Co., Ltd. Japan
Mizuho Credit Guarantee Co., Ltd. ..................Japan
Mizuho Factors, Limited ...................................Japan
Shinko Asset Management Co., Ltd. ..............Japan
Mizuho Trust Realty Company Limited .............Japan
Defined Contribution Plan Services Co., Ltd.....Japan
Mizuho-DL Financial Technology Co., Ltd. ...... JapanUC Card Co., Ltd. ............................................Japan
Mizuho Capital Co., Ltd. ...................................Japan

3—Status of Capital Adequacy

Main BusinessBanking
Trust and banking
Securities
Trust and banking
Investment management
Research and consulting
Information technology
Consulting
Consulting
Credit guarantee
Factoring
Investment management
Real estate agency
Pension plan-related business
Application andSophistication of
Financial Technology
Credit card
Venture capital

Proportionof Ownership
Interest(%)

Proportionof VotingInterest(%)

100.0%
100.0
95.8
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
94.3
86.7
60.0
60.0

100.0%
100.0
95.8
54.0
98.7
98.6
91.5
100.0
100.0
100.0
100.0
94.8
76.9
60.0
60.0

51.0
50.0

51.0
50.0

Name

Country ofOrganization

Overseas
Mizuho International plc ...................................U.K.
Mizuho Bank (China), Ltd. ...............................China
Mizuho Securities Asia Limited .........................China
Mizuho Bank Nederland N.V. ..........................Netherlands
Mizuho Securities USA Inc. .............................U.S.A.
Mizuho Trust & Banking (Luxembourg) S.A. Luxembourg
Mizuho Bank (USA) .........................................U.S.A.
Mizuho Bank (Switzerland) Ltd ........................Switzerland
Mizuho Trust & Banking Co. (USA) ................. U.S.A.
Mizuho Capital Markets Corporation ............... U.S.A.
PT. Bank Mizuho Indonesia .............................Indonesia
Note:

Main Business

Securities and banking
Banking
Securities
Banking and securities
Securities
Trust and banking
Banking
Trust and banking
Trust and banking
Derivatives
Banking

Proportionof Ownership
Interest(%)

Proportionof VotingInterest(%)

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0

On July 1, 2013, a merger between the former Mizuho Bank and the former Mizuho Corporate Bank came into effect with the former Mizuho Corporate Bank as thesurviving entity, which was renamed Mizuho Bank upon the merger.

(c) Corporations Providing Financial Services for which Article 9 of the FSA Notice No. 20 is Applicable
None as of March 31, 2014 and 2013.
(d) Companies that are in the Bank Holding Company’s Corporate Group but Not Included in the Scope of
Accounting Consolidation and Companies that are Not in the Bank Holding Company’s Corporate Group but
Included in the Scope of Accounting Consolidation
None as of March 31, 2014 and 2013.
(e) Restrictions on Transfer of Funds or Capital within the Bank Holding Company’s Corporate Group
None as of March 31, 2014 and 2013.
(f) Names of Any Other Financial Institutions, etc., Classified as Subsidiaries or Other Members of the Bank
Holding Company that are Deficient in Regulatory Capital
None as of March 31, 2014 and 2013.

Status of Capital Adequacy—4

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Composition of Capital(2) Composition of Capital, etc.
(a) Composition of Capital Disclosure(International Standard)
Millions of yen
2014

2013
Amounts
Excluded underTransitional
Arrangements

As of March 31,

Common Equity Tier 1 Capital: Instruments and Reserves(1)Directly Issued Qualifying Common
Share Capital plus Related Stock¥5,274,735¥/
Surplus and Retained Earningsof which: Capital and Stock Surplus
3,051,830/
of which: Retained Earnings
2,314,792/
of which: Treasury Stock (-)
3,874/
of which: National SpecificRegulatory Adjustments (Earnings
88,012/
to be Distributed) (-)
of which: Other than Above/
Subscription Rights to Common Shares
3,179/
Accumulated Other Comprehensive
156,219624,876
Income and Other Disclosed Reserves
Common Share Capital Issued by/
Subsidiaries and Held by Third Parties
10,867(Amount Allowed in Group CET1)
Total of Items Included in Common
Equity Tier 1 Capital: Instruments and61,593/
Reserves Subject to Phase-out
Arrangementsof which: Amount Allowed in GroupCET1 Capital Subject to Phase-out
Arrangements on Common Share
61,593/
Capital Issued by Subsidiaries andHeld by Third Parties
Common Equity Tier 1 Capital:(A)
5,506,594/
Instruments and Reserves

Amounts
Excluded underTransitional
Arrangements

Basel III
Template¥4,720,405¥/

1a+2-1c-26

2,987,127
1,814,331
4,661

/
/
/

1a

76,392

/

26

2,687

/
/

1b

-

752,533

3

11,042/

5

68,282/

68,282/4,802,418

/

6

2
1c

Common Equity Tier 1 Capital: Regulatory Adjustments(2)Total Intangible Assets (Net of Related
Tax Liability, Excluding Those Relating
to Mortgage Servicing Rights)
of which: Goodwill (Net of Related
Tax Liability, Including Those
Equivalent)of which: Other Intangibles Other
Than Goodwill and Mortgage
Servicing Rights (Net of Related
Tax Liability)
Deferred Tax Assets that Rely on
Future Profitability Excluding Those
Arising from Temporary Differences(Net of Related Tax Liability)
Deferred Gains or Losses on
Derivatives under Hedge Accounting

5—Status of Capital Adequacy

85,091

340,365-

399,235

8+9

24,554

98,219-128,9028

60,536242,145-

270,332

9

5,773

23,092-

21,66210¥ (1,335)¥ (5,342)¥-¥84,63411

(a) Composition of Capital Disclosure(International Standard)―(Continued)
Millions of yen
2014

As of March 31,

Shortfall of Eligible Provisions toExpected Losses
Securitization Gain on Sale
Gains and Losses due to Changes in
Own Credit Risk on Fair Valued
Liabilities
Defined-benefit Pension Fund Net
Assets (Prepaid Pension Costs)
Net Defined Benefit Asset
Investments in Own Shares (Excluding
Those Reported in the Net Assets
Section)Reciprocal Cross-holdings in Common
EquityInvestments in the Capital of Banking,
Financial and Insurance Entities thatare Outside the Scope of Regulatory
Consolidation, Net of Eligible Short
Positions, where the Bank does Not
Own more than 10% of the Issued
Share Capital (Amount above the 10%
Threshold)Amount Exceeding the 10% Thresholdon Specified Itemsof which: Significant Investments in
the Common Stock of Financialsof which: Mortgage Servicing Rightsof which: Deferred Tax Assets
Arising from Temporary Differences(Net of Related Tax Liability)
Amount Exceeding the 15% Thresholdon Specified Itemsof which: Significant Investments in
the Common Stock of Financialsof which: Mortgage Servicing Rightsof which: Deferred Tax Assets
Arising from Temporary Differences(Net of Related Tax Liability)
Regulatory Adjustments Applied toCommon Equity Tier 1 due toInsufficient Additional Tier 1 and Tier 2
to Cover Deductions
Common Equity Tier 1 Capital:(B)
Regulatory Adjustments

2013
Amounts
Excluded underTransitional
Arrangements

Amounts
Excluded underTransitional
Arrangements

Basel III
Template¥834¥3,065¥-¥31,284

12

658

2,632

-

3,837

13

281

1,125

-

-

14

-

-

-

270,563

15

53,235

212,941

-

-

15

616

2,466

-

2,589

16

-

-

-

-

17

57,027228,110-248,374

18

-

-

-

-

19+20+21

-

-

-

-

19

-

-

-

-

20

-

-

-

-

21

-

-

-

-

22

-

-

-

-

23

-

-

-

-

24

-

-

-

-

25

-

/

-

/

27

¥202,182

¥/

¥-

¥/

28

Status of Capital Adequacy—6

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of Capital Disclosure (International Standard)―(Continued)
Millions of yen
2014

2013
Amounts
Excluded underTransitional
Arrangements

As of March 31,

Amounts
Excluded underTransitional
Arrangements

Basel III
Template

29

Common Equity Tier 1 Capital (CET1)
Common Equity Tier 1 Capital(CET1) ((A)-(B))(C)¥5,304,412¥/¥4,802,418

¥/

-

/

-

/

31a

30

-

/

-

/

31b

30

-

/

-

/

32

30

-

/

-

/

30

25,376/

12,037/34-35

1,666,511/

1,874,825

/

33+35

1,666,511/

1,874,825

/

33

-

/

-

/

35

(50,810)/(90,329)/(50,810)/(90,329)/

1,641,076/

1,796,533

/

36

-

-

-

-

37

¥-

¥-

¥-

¥-

38

Additional Tier 1 Capital: Instruments (3)Directly Issued Qualifying Additional
Tier 1 Instruments plus Related Stock
Surplus of which: Classified as Equity
under Applicable AccountingStandards and the Breakdown
Subscription Rights to Additional Tier 1
Instruments
Directly Issued Qualifying Additional
Tier 1 Instruments plus Related Stock
Surplus of which: Classified as
Liabilities under Applicable AccountingStandards
Qualifying Additional Tier 1 Instruments
plus Related Stock Surplus Issued bySpecial Purpose Vehicles and Other
Equivalent Entities
Additional Tier 1 Instruments Issued by
Subsidiaries and Held by Third Parties(Amount Allowed in Group AT1)
Eligible Tier 1 Capital Instruments
Subject to Phase-out Arrangements
Included in Additional Tier 1 Capital:
Instrumentsof which: Directly Issued Capital
Instruments Subject to Phase out
from Additional Tier 1of which: Instruments Issued by
Subsidiaries Subject to Phase out
Total of Items Included in Additional
Tier 1 Capital: Instruments Subject toPhase-out Arrangementsof which: Foreign Currency
Translation Adjustments
Additional Tier 1 Capital:(D)
Instruments

Additional Tier 1 Capital: Regulatory Adjustments
Investments in Own Additional Tier 1
Instruments
Reciprocal Cross-holdings in Additional
Tier 1 Instruments

7—Status of Capital Adequacy

(a) Composition of Capital Disclosure (International Standard)―(Continued)
Millions of yen
2014
Amounts
Excluded underTransitional
Arrangements

As of March 31,

Investments in the Capital of Banking,
Financial and Insurance Entities thatare Outside the Scope of Regulatory
Consolidation, Net of Eligible Short
Positions, where the Bank does Not
Own more than 10% of the Issued
Common Share Capital of the Entity(Amount above 10% Threshold)
Significant Investments in the Capital of
Banking, Financial and Insurance
Entities that are Outside the Scope ofRegulatory Consolidation (Net of
Eligible Short Positions)
Total of Items Included in Additional
Tier 1 Capital: Regulatory Adjustments
Subject to Phase-out Arrangements

2013
Amounts
Excluded underTransitional
Arrangements

Basel III
Template¥327¥1,311¥-¥3,352

39

21,04984,199-77,93840

79,365/

112,883/of which: Goodwill Equivalent
49,791of which: Intangible Fixed Assets
25,272
Recognized as a Result of a Mergerof which: Capital Increase due to
2,632
Securitization Transactionsof which: 50% of Excess of Expected
Losses Relative to Eligible
1,668
Reserves by Banks AdoptingInternal Ratings-based Approach
Regulatory Adjustments Applied toAdditional Tier 1 due to Insufficient
Tier 2 to Cover Deductions
Additional Tier 1 Capital:(E)
100,742
Regulatory Adjustments
Additional Tier 1 Capital (AT1)
Additional Tier 1 Capital(F)
1,540,334((D)-(E))
Tier 1 Capital (T1 = CET1 + AT1)
Tier 1 Capital (T1 = CET1 +(G)
6,844,746
AT1) ((C)+(F))
Tier 2 Capital: Instruments and Provisions(4)Directly Issued Qualifying Tier 2
Instruments plus Related Stock
Surplus of which: Classified as Equity
under Applicable AccountingStandards and the Breakdown
Subscription Rights to Tier 2¥Instruments/

57,686//

34,953

/

/

3,837

/

/

16,406

/

/

-

/

42

/

112,883/43/

1,683,650

/

44

/

6,486,068

/

45

/

-

/

46

¥/

¥-

¥/

46

Status of Capital Adequacy—8

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of Capital Disclosure (International Standard)―(Continued)
Millions of yen
2014
Amounts
Excluded underTransitional
Arrangements

As of March 31,

Directly Issued Qualifying Tier 2
Instruments plus Related Stock
Surplus of which: Classified as
Liabilities under Applicable AccountingStandards
Tier 2 Instruments plus Related Stock
Surplus Issued by Special Purpose
Vehicles and Other Equivalent Entities
Tier 2 Instruments Issued by
Subsidiaries and Held by Third Parties(Amount Allowed in Group Tier 2)
Eligible Tier 2 Capital Instruments
Subject to Phase-out Arrangements
Included in Tier 2: Instruments andProvisionsof which: Directly Issued Capital
Instruments Subject to Phase out
from Tier 2of which: Instruments Issued by
Subsidiaries Subject to Phase out
Total of General Allowance for Loan
Losses and Eligible Provisions
Included in Tier 2of which: General Allowance for Loan
Lossesof which: Eligible Provisions
Total of Items Included in Tier 2 Capital:
Instruments and Provisions Subject toPhase-out Arrangementsof which: 45% of Unrealized Gains
on Other Securitiesof which: 45% of Revaluation
Reserve for Land
Tier 2 Capital: Instruments and(H)
Provisions
Tier 2 Capital: Regulatory Adjustments
Investments in Own Tier 2 Instruments
Reciprocal Cross-holdings in Tier 2
Instruments
Investments in the Capital of Banking,
Financial and Insurance Entities thatare Outside the Scope of Regulatory
Consolidation, Net of Eligible Short
Positions, where the Bank does Not
Own more than 10% of the Issued
Common Share Capital of the Entity(Amount above the 10% Threshold)

9—Status of Capital Adequacy

2013
Amounts
Excluded underTransitional
Arrangements

Basel III
Template

¥-

¥/

¥-

¥/

46

154,380

/

-

/

46

8,161

/

5,305

/

48-49

1,349,648/

1,518,354

/

47+49

146,480/

153,207/47

1,203,167/

1,365,147

/

49

7,051

/

5,081

/

50

7,051

/

5,081

/

50a

-

/

-

/

50b

474,042/

503,197/

394,192/402,252/

79,849/100,945/

1,993,284/

2,031,939

/

51

4

16

-

-

52

-

-

-

-

53

¥41,748¥166,993¥-¥224,77754

(a) Composition of Capital Disclosure (International Standard)―(Continued)
Millions of yen
2014
Amounts
Excluded underTransitional
Arrangements

As of March 31,

Significant Investments in the Capital
Banking, Financial and Insurance
Entities that are Outside the Scope ofRegulatory Consolidation (Net of
Eligible Short Positions)
Total of Items Included in Tier 2
Capital: Regulatory Adjustments
Subject to Phase-out Arrangementsof which: Investments in the Capital
Banking, Financial and Insurance
Entitiesof which: 50% of Excess of
Expected Losses Relative to
Eligible Reserves by Banks
Adopting Internal Ratings-based
Approach
Tier 2 Capital: Regulatory(I)
Adjustments
Tier 2 Capital (T2)
Tier 2 Capital (T2) ((H)-(I))(J)
Total Capital (TC = T1 + T2)
Total Capital (TC = T1 + T2)(K)((G) + (J))
Risk Weighted Assets(5)Total of items Included in Risk
Weighted Assets Subject to Phaseout Arrangementsof which: Intangible Assets (Net ofRelated Tax Liability, Excluding
Those Relating to Mortgage
Servicing Rights)
of which: Deferred Tax Assets that
Rely on Future Profitability
Excluding Those Arising from
Temporary Differences (Net ofRelated Tax Liability)of which: Defined-benefit Pension
Fund Net Assets (Prepaid Pension
Costs)of which: Net Defined Benefit Assetof which: Investments in the Capital
Banking, Financial and Insurance
Entities
Risk Weighted Assets(L)
Capital Ratio (Consolidated)
Common Equity Tier 1 Capital
Ratio (Consolidated) ((C)/(L))

2013
Amounts
Excluded underTransitional
Arrangements

Basel III
Template

55

¥-

¥-

¥-

¥-

140,287/

173,453/

138,618/

157,046

/

1,668

/

16,406/

182,040/

173,453/57

1,811,244/

1,858,485/

58

8,655,990/

8,344,554/

59

979,439/

1,190,622/

216,873/

235,379/

23,092/

21,662/-/

270,563/

212,941/-/

526,532/

663,016/¥60,274,087¥/¥58,790,617

¥/

60

8.80%

/

8.16%

/

61

Status of Capital Adequacy—10

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(a) Composition of Capital Disclosure (International Standard)―(Continued)
Millions of yen
2014

As of March 31,

2013
Amounts
Excluded underTransitional
Arrangements

Tier 1 Capital Ratio (Consolidated)
11.35%/((G)/(L))
Total Capital Ratio (Consolidated)/
14.36%((K)/(L))
Regulatory Adjustments(6)Non-Significant Investments in the
Capital of Other Financials that are¥534,399¥/
Below the Thresholds for Deduction(Before Risk Weighting)Significant Investments in the Common
Stock of Financials that are Below the145,996/Thresholds for Deduction (Before Risk
Weighting)Mortgage Servicing Rights that are
Below the Thresholds for Deduction/(Before Risk Weighting)Deferred Tax Assets Arising from
Temporary Differences that are Below
302,251/
the Thresholds for Deduction (Before
Risk Weighting)
Provisions Included in Tier 2 Capital: Instruments and Provisions (7)Provisions (General Allowance for
7,051/
Loan Losses)
Cap on Inclusion of Provisions
57,825/(General Allowance for Loan Losses)
Provisions Eligible for Inclusion in Tier
2 in Respect of Exposures Subject toInternal Ratings-based Approach/(Prior to Application of Cap) (If theAmount is Negative, Report as "Nil")Cap for Inclusion of Provisions in Tier
2 under Internal Ratings-based
280,561/
Approach
Capital Instruments Subject to Phase-out Arrangements(8)Current Cap on AT1 Instruments/
1,666,511
Subject to Phase-out Arrangements
Amount Excluded from AT1 due toCap (Excess over Cap after
364,873/
Redemptions and Maturities) (If theAmount is Negative, Report as "Nil")
Current Cap on T2 Instruments
1,349,648/
Subject to Phase-out Arrangements
Amount Excluded from T2 due to Cap(Excess over Cap after Redemptions¥81,139¥/
and Maturities) (If the Amount is
Negative, Report as "Nil")

11—Status of Capital Adequacy

Amounts
Excluded underTransitional
Arrangements

Basel III
Template

11.03%/

62

14.19%/

63¥467,131¥/

72

152,796

/

73

-

/

74

323,447

/

75

5,081

/

76

48,948

/

77

-

/

78

277,636/79

1,874,825/

82

208,313/83

1,518,354/

84¥168,706¥/

85

Notes:1. The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2. In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young
ShinNihon LLC, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio”(Industry Committee Practical Guideline No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of theaccounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures
performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of the capital adequacy
ratio and a report of the results to us. As such, they do not represent an opinion regarding the capital adequacy ratio itself nor the internal
controls related to the calculation of the capital adequacy ratio.

Status of Capital Adequacy—12

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Explanation of (a) Composition of Capital Disclosure
Reconciliation between "Consolidated Balance Sheet" and Items of Consolidated Balance Sheet and “Composition of
Capital Disclosure”
Millions of yen

As of March 31,

Consolidated Balance Sheet as in PublishedFinancial Statements
Items(Assets)
Cash and Due from Banks
Call Loans and Bills Purchased
Receivables under Resale
Agreements
Guarantee Deposits Paid under
Securities Borrowing
Transactions
Other Debt Purchased
Trading Assets
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchange Assets
Derivatives Other than for Trading
AssetsOther Assets
Tangible Fixed Assets
Intangible Fixed Assets
Net Defined Benefit AssetDeferred Tax Assets
Customers' Liabilities for
Acceptances and Guarantees
Reserves for Possible Losses on
Loans
Reserve for Possible Losses on
Investments
Total assets(Liabilities)
Deposits
Negotiable Certificates of Deposit
Call Money and Bills Sold
Payables under Repurchase
Agreements
Guarantee Deposits Received
under Securities Lending
Transactions
Commercial Paper
Trading Liabilities
Borrowed Money
Foreign Exchange Liabilities
Short-term Bonds
Bonds and Notes

13—Status of Capital Adequacy

Cross-reference
to Appended
Template

2014

2013

¥20,610,276
467,758¥12,333,997
530,541

8,349,528

9,025,049

5,010,740

5,543,914

3,263,057
11,469,811
168,369
43,997,517
69,301,405
1,576,167

1,279,964
14,076,928
96,01453,472,399
67,536,882
1,412,601

2,820,468

4,475,055

6-d2,840,720
925,266
531,501
413,073
104,9092,599,553
901,085
477,546
165,299

3-a, 6-e

4,588,646

4,224,259(616,307)(739,990)

(27)

(40)

¥175,822,885¥177,411,062¥89,055,505
12,755,776
7,194,432¥84,241,955
15,326,781
6,126,424

16,797,803

17,451,041

6,085,331

11,325,439

677,459
8,183,037
7,838,357
323,327584,568
5,245,743

472,718
7,686,442
7,699,440
182,473
477,400
5,141,746

6-a2-b, 6-b
6-c

2-a
3-b
4-a

6-f
8-a

8-b

Reference # ofBasel III Template
under theComposition of
Capital Disclosure

(b) Explanation of (a) Composition of Capital Disclosure ―(Continued)
Millions of yen

As of March 31,

Consolidated Balance Sheet as in PublishedFinancial Statements
Items

Due to Trust Accounts
Derivatives Other than for Trading
Liabilities
Other Liabilities
Reserve for Bonus Payments
Reserve for Employee Retirement
Benefits
Net Defined Benefit Liability
Reserve for Director and Corporate
Auditor Retirement Benefits
Reserve for Possible Losses on
Sales of Loans
Reserve for Contingencies
Reserve for Reimbursement of
Deposits
Reserve for Reimbursement ofDebentures
Reserves under Special Laws
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Acceptances and Guarantees
Total Liabilities(Net Assets)
Common Stock and Preferred
Stock
Capital Surplus
Retained Earnings
Treasury Stock
Total Shareholders' Equity
Net Unrealized Gains (Losses) on
Other Securities
Deferred Gains or Losses on
Hedges
Revaluation Reserve for Land
Foreign Currency Translation
Adjustment
Remeasurements of Defined
Benefit Plans
Total Accumulated Other
Comprehensive Income
Stock Acquisition Rights
Minority Interests
Total Net Assets
Total Liabilities and Net Assets
Note:

Cross-reference
to Appended
Template

2014

2013

1,300,655

1,120,696

3,004,497

4,404,754

3,570,902
52,641

3,501,064
45,754-

38,63246,006

-

1,547

1,612

1,259

48

6,309

16,85916,451

16,46454,95635,417

1,273
50,783

1,203
54,2214-b

81,06081,9774-c

4,588,646¥167,518,336

4,224,259¥169,674,832

2,254,972

2,254,972

1-a

1,109,508
2,315,608(3,874)¥5,676,215

1,109,508
1,814,782(4,661)¥5,174,601

1-b
1-c
1-d

733,522615,883(6,677)

84,634

140,745

142,345(63,513)(90,329)(22,979)-¥781,096¥752,533

3,179
1,844,057¥8,304,549¥175,822,885

2,687
1,806,407¥7,736,230¥177,411,062

Reference # ofBasel III Template
under theComposition of
Capital Disclosure

6-g

5

3
1b
7

The regulatory scope of consolidation is the same as the accounting scope of consolidation.

Status of Capital Adequacy—14

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Appended Template

1. Shareholders' Equity(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
2014

2013

Common Stock and Preferred Stock¥2,254,972¥2,254,972

Capital Surplus

1,109,508

1,109,508

Retained Earnings
Treasury Stock
Total Shareholders' Equity

2,315,608(3,874)¥5,676,215

1,814,782(4,661)¥5,174,601

Consolidated Balance Sheet Items

Remarks

Including Eligible Tier 1
Capital Instruments Subject
to Phase-out Arrangements
Including Eligible Tier 1
Capital Instruments Subject
to Phase-out Arrangements

Ref.

1-a

1-b
1-c
1-d

(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Directly Issued Qualifying Common
Share Capital plus Related Stock
Surplus and Retained Earningsof which: Capital and Stock
Surplusof which: Retained Earningsof which: Treasury Stock (-)
of which: Other than Above
Directly Issued Qualifying Additional
Tier 1 Instruments plus Related
Stock Surplus of which: Classified
as Equity under Applicable
Accounting Standards and theBreakdown

15—Status of Capital Adequacy

2014

2013

Remarks

Basel III
Template

Shareholders' Equity
Attributable to Common
Shares (Before Adjusting
National SpecificRegulatory Adjustments(Earnings to beDistributed))¥5,362,748¥4,796,797

3,051,830

2,987,127

1a2,314,792
3,874-

1,814,331
4,661
-

2
1c

-

-

Shareholders' Equity
Attributable to Preferred
Shares with a Loss
Absorbency Clause uponEntering into Effectively
Bankruptcy

31a2. Intangible Fixed Assets(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
2014

2013

Intangible Fixed Assets
Securitiesof which: Share of Goodwill of
Companies Accounted for Using
the Equity Method¥531,501
43,997,517¥477,546
53,472,399

60,535

71,216

Income Taxes Related to Above¥ (166,580)¥ (149,527)

Consolidated Balance Sheet Items

Remarks

Ref.

2-a
2-b
Share of Goodwill of
Companies Accounted for
Using the Equity Method(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Goodwill (Net of Related Tax
Liability, Including Those
Equivalent)
Other Intangibles Other than
Goodwill and Mortgage Servicing
Rights (Net of Related Tax Liability)
Mortgage Servicing Rights (Net ofRelated Tax Liability)
Amount Exceeding the 10%
Threshold on Specified Items
Amount Exceeding the 15%
Threshold on Specified Items
Mortgage Servicing Rights thatare Below the Thresholds for
Deduction ( Before Risk
Weighting)Remarks

Basel III
Template

2014

2013

¥122,774¥128,902

302,681

270,332

-

-

-

-

20

-

-

24

-

-

74

8

Software and Other

9

3. Defined-benefit Pension Fund Net Assets (Prepaid Pension Costs)/Net Defined Benefit Asset(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

Other Assetsof which: Defined-benefit Pension
Fund Net Assets (Prepaid
Pension Costs)
Net Defined Benefit Asset
Income Taxes Related to Above

2014

2013

¥/

¥2,599,553/

418,846

413,073-¥ (146,897)¥ (148,283)

Remarks

Ref.

3-a

3-b

Status of Capital Adequacy—16

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Defined-benefit Pension Fund Net
Assets (Prepaid Pension Costs)
Net Defined Benefit Asset

Remarks

Basel III
Template

2014

2013

¥-

¥270,563

15

266,176-15

4. Deferred Tax Assets(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

Deferred Tax Assets
Deferred Tax Liabilities
Deferred Tax Liabilities for
Revaluation Reserve for Land
Tax Effects on Intangible Fixed
AssetsTax Effects on Defined-benefit
Pension Fund Net Assets (Prepaid
Pension Costs)
Tax Effects on Net Defined Benefit
Asset

2014

2013

¥104,909
50,783¥165,299
54,2214-a4-b

81,06081,9774-c¥166,580¥149,527-

148,283

146,897-

Remarks

Ref.

(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

2014

2013

Remarks

This item does not agreewith the amount reported
on the consolidatedbalance sheet due tooffsetting of assets andliabilities.
This item does not agreewith the amount reported
on the consolidatedbalance sheet due tooffsetting of assets andliabilities.

Basel III
template

Deferred Tax Assets that Rely on
Future Profitability Excluding Those
Arising from Temporary Differences(Net of Related Tax Liability)¥28,865¥21,662

Deferred Tax Assets that Rely on
Future Profitability Arising from
Temporary Differences (Net ofRelated Tax Liability)

302,251

323,447

-

-

21

-

-

25

302,251

323,447

75

Amount Exceeding the 10%
Threshold on Specified Items
Amount Exceeding the 15%
Threshold on Specified Items
Deferred Tax Assets Arising from
Temporary Differences that are
Below the Thresholds for
Deduction (Before Risk
Weighting)

17—Status of Capital Adequacy

10

5. Deferred Gains or Losses on Derivatives under Hedge Accounting(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

2014

2013

Deferred Gains or Losses on
Hedges¥ (6,677)¥84,634

Remarks

Ref.

5(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

2014

2013

Deferred Gains or Losses on
Derivatives under Hedge
Accounting¥ (6,677)¥84,634

Basel III
Template

Remarks11

6. Items Associated with Investments in the Capital of Financial Institutions(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

2014

2013

Trading Assets¥11,469,811¥14,076,928

Securities

43,997,517

53,472,399

Loans and Bills Discounted

69,301,405

67,536,882

Derivatives Other than for Trading
AssetsOther Assets

2,820,468

4,475,055

2,840,720

2,599,553

Trading Liabilities

8,183,037

7,686,442

Derivatives Other than for Trading
Liabilities

3,004,497

4,404,754

Remarks

Ref.

Including Trading AccountSecurities andDerivatives for Trading
Assets6-a6-bIncluding Subordinated
Loans

6-c
6-d

Including Money Invested
Including Trading AccountSecurities Sold

6-e
6-f
6-g

Status of Capital Adequacy—18

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Investments in Own Capital
Instruments
Common Equity Tier 1 Capital
Additional Tier 1 Capital
Tier 2 Capital
Reciprocal Cross-holdings in the
Capital of Banking, Financial andInsurance Entities
Common Equity Tier 1 Capital
Additional Tier 1 Capital
Tier 2 Capital
Investments in the Capital of
Banking, Financial and Insurance
Entities that are Outside the Scopeof Regulatory Consolidation, Net of
Eligible Short Positions, where the
Bank does Not Own more than 10%of the Issued Share Capital(Amount above 10% Threshold)Common Equity Tier 1 Capital
Additional Tier 1 Capital
Tier 2 CapitalNon-significant Investments in the
Capital of Other Financials thatare Below the Thresholds for
Deduction (Before Risk
Weighting)Significant Investments in the Capitalof Banking, Financial and Insurance
Entities that are Outside the Scopeof Regulatory Consolidation, Net of
Eligible Short Positions
Amount Exceeding the 10%
Threshold on Specified items
Amount Exceeding the 15%
Threshold on Specified Items
Additional Tier 1 Capital
Tier 2 CapitalSignificant Investments in the
Common Stock of Financials thatare Below the Thresholds for
Deduction (Before Risk
Weighting)

19—Status of Capital Adequacy

Remarks

Basel III
Template

2014

2013

¥3,103¥2,589

3,083
20

2,589
-

-

-

-

-

1,029,919

943,637

285,138
1,638
208,742

248,374
3,352
224,7771839
54534,399

467,13172

251,246

230,734

-

-

19

-

-

23

105,249-

77,938-40
55

145,996

152,796

73

16
37
52

17
38
53

7. Minority Interests(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

Minority Interests

2014

2013

¥1,844,057¥1,806,407

Remarks

Ref.

7(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Common Share Capital Issued by
Subsidiaries and Held by Third
Parties (Amount Allowed in Group
CET1)
Qualifying Additional Tier 1
Instruments plus Related Stock
Surplus Issued by Special Purpose
Vehicles and Other Equivalent
Entities
Additional Tier 1 Instruments Issued
by Subsidiaries and Held by Third
Parties (Amount Allowed in Group
AT1)
Tier 2 Instruments plus Related
Stock Surplus Issued by Special
Purpose Vehicles and Other
Equivalent Entities
Tier 2 Instruments Issued by
Subsidiaries and Held by Third
Parties (Amount Allowed in Group
Tier 2)

2014¥10,867-2013

Basel III
Template

Remarks¥11,042After Reflecting Amounts
Eligible for Inclusion(Minority Interest after
Adjustments)

5-

After Reflecting Amounts
Eligible for Inclusion(Minority Interest after
Adjustments)

3031ab-32

25,376

12,037

154,380

-

8,161

5,305

After Reflecting Amounts
Eligible for Inclusion(Minority Interest after
Adjustments)
After Reflecting Amounts
Eligible for Inclusion(Minority Interest after
Adjustments)
After Reflecting Amounts
Eligible for Inclusion(Minority Interest after
Adjustments)

34-35

46

48-49

8. Other Capital Instruments(1) Consolidated Balance Sheet
Millions of yen

As of March 31,
Consolidated Balance Sheet Items

Borrowed Money
Bonds and Notes
Total

2014

2013

¥7,838,357
5,245,743¥13,084,101¥7,699,440
5,141,746¥12,841,187

Remarks

Ref.

8-a
8-b

Status of Capital Adequacy—20

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Composition of CapitalMillions of yen

As of March 31,
Composition of Capital Disclosure

Directly Issued Qualifying Additional
Tier 1 Instruments plus Related
Stock Surplus of which: Classified
as Liabilities under Applicable
Accounting Standards
Directly Issued Qualifying Tier 2
Instruments plus Related Stock
Surplus of which: Classified as
Liabilities under Applicable
Accounting Standards
Note:

Remarks

Basel III
Template

2014

2013

¥-

¥-

32

-

-

46

Amounts in the "Composition of Capital Disclosure" are based on those before considering amounts under transitional arrangements andinclude "Amounts Excluded under Transitional Arrangements" disclosed in "(A) Composition of Capital Disclosure" as well as amounts included
as regulatory capital. In addition, items for regulatory purposes under transitional arrangements are excluded from this table.

■Risk-based Capital(3) Summary of Approach to Assessing Capital Adequacy
In order to ensure that risk-based capital is sufficiently maintained in light of the risk held by us, we regularly conduct thefollowing assessment of capital adequacy in addition to adopting a suitable and effective capital adequacy monitoring
structure.

Maintaining a Sufficient BIS Capital Ratio
We confirm our maintenance of a high level of financial soundness by conducting regular evaluations to examine whether
our risk-based capital is adequate in qualitative as well as quantitative terms, in light of our business plans and strategic
targets to match the increase in risk-weighted assets acquired for growth, in addition to maintaining common equity Tier 1
capital ratio, Tier 1 capital ratio and total capital ratio that exceed the minimum requirements.

Balancing Risk and CapitalOn the basis of the framework for allocating risk capital, after obtaining the clearest possible grasp of the group’s overallrisk exposure, we endeavor to control risk so as to keep it within the range of our business capacity by means of allocating
capital that corresponds to the amount of risk to the business groups and units of our banking subsidiaries, etc., within thebounds of our capital, and we conduct regular assessments to ensure that a sufficient level of capital is maintained for ourrisk profile. When making these assessments, we examine whether an appropriate return on risk is maintained in addition
to considering the effects that interest rate risk related to our banking book, credit concentration risk and stress tests haveon our capital.

21—Status of Capital Adequacy(4) Required Capital by Portfolio Classification
Billions of yen
2014
As of March 31,

Credit Risk
Internal Ratings-based
ApproachCorporate (Except Specialized
Lending)
Corporate (Specialized Lending)
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loan
Other Retail
Equities
PD/LGD Approach
Market-based Approach(Simple Risk Weight Method)
Market-based Approach(Internal Models Approach)Transitional Measure Applied
Regarded-method Exposure
Purchase Receivables
Securitizations
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersCVA Risk
Central Counterparty-relatedMarket Risk
Standardized Approach
Interest rate Risk
Equities Risk
Foreign Exchange Risk
Commodities Risk
Option Transactions
Internal Models Approach
Operational Risk
Advanced Measurement
Approach
Basic Indicator Approach
Total Required Capital(Consolidated)
Notes:

2013

EAD

Required Capital

EAD

Required Capital¥180,860.3¥5,114.7

178,556.2

5,293.6

173,716.9

4,530.0

169,335.8

4,710.9

59,100.4

2,360.0

55,688.5

2,562.1

2,977.2
77,644.8
6,511.3
13,531.9
10,366.2
434.7
2,730.9
4,299.9
1,199.5
490.7

258.1
82.2
148.5
587.7
380.4
35.0
172.2
485.9
131.1
129.0

2,840.3
77,606.5
6,570.0
13,649.5
10,477.7
372.6
2,799.0
3,833.6
1,107.3
364.4

281.0
72.8
157.4
609.2
399.1
32.8
177.2
425.6
123.6
97.4

-

-

-

-

2,609.6
1,761.0
1,935.4
3,038.7
2,916.0
7,143.4
1,505.0
1,527.7
3,619.6
20.6
470.4
/
/
/
/
/
/
/
/
/

225.7
344.2
60.0
46.6
156.2
370.0
6.0
38.9
272.4
9.9
42.7
195.8
18.7
233.5
62.8
39.9
13.5
8.4
0.9

2,361.8
1,402.6
1,842.6
3,317.8
2,583.8
9,220.3
4,263.0
1,362.1
2,939.9
22.9
632.2
/
/
/
/
/
/
/
/
/

204.6
292.1
61.5
60.3
188.3
313.2
4.7
30.1
221.9
12.1
44.2
255.4
13.9
190.5
74.1
50.2
17.1
4.0
2.6

/
/
/

170.6
262.9

/
/
/

116.3
228.2

/
¥/

31.9

/

¥4,821.9¥/

50.2¥4,703.2

-

230.9

―

178.0

1. EAD: Exposure at default.
2. PD: Probability of default.
3. LGD: Loss given default.

Status of Capital Adequacy—22

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

4. Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (ii) expected losses and (iii) deductions from capital. For
market risk, the market risk equivalent amount. For operational risk, the operational risk equivalent amount.
5. Total required capital (consolidated): 8% of the denominator of the capital adequacy ratio.
6. The major exposures included in each portfolio classification of internal ratings-based approach are as follows:
Corporate (excluding
specialized lending)Credits to corporations and sole proprietors (excluding credits to retail customers)

Corporate (specialized

Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel,
businesses, etc, including real estate non-recourse loan, ship finance and project finance, etc.

lending)SovereignCredits to central governments, central banks and local governmental entities

Bank

Credits to banks and securities companies, etc.

RetailHousing loans (residential mortgage), credit card loans (qualifying revolving retail loan) and other individual
consumer loans and loans to business enterprises with total credit amount of less than ¥100 million, etc. (otherretail).

Equities

Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets)
The transitional measure (Article 13 of supplementary provision of the FSA Notice No. 20) applies to those heldfrom September 30, 2004 or earlier, and others are applied either the PD/LGD approach or the market-based
approach.

Regarded-method
exposure

Investment trusts and funds, etc.

Purchase receivables

Receivables purchased from third parties excluding securities (excluding securitizations)

Securitizations

Transactions in the form of “non-recourse” and having a “senior/subordinated structure,” etc. (excluding specialized
lending).

7. EAD calculated using the standardized approach for credit risk represents the amount before the deduction of specific reserve for possible
losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs.

23—Status of Capital Adequacy

■ Credit Risk
(5) Credit Risk Management○Summary of Credit Risk Management
See pages 52 to 55 (Internal Control Systems) for a summary of our credit risk management policies and procedures.
We apply the advanced internal ratings-based approach to calculate credit risk-weighted assets under Basel Framework.
With regard to some business units or asset classes that are deemed to be immaterial for purposes of calculating credit
risk-weighted assets, we apply the standardized approach. Among the business units to which we apply the standardized
approach, we plan to apply the advanced internal ratings-based approach to Mizuho Bank Nederland N.V. starting at theend of March 2015.
We use our estimates of PD (probability of default) and LGD (loss given default) in calculating credit risk-weighted assets.
In accordance with regulations, we estimate PD by using long-term averages of actual defaults, to which conservative
adjustments are made, based on internal data, and make adjustments to LGD taking into account recessionary periods.
We regularly perform verifications of PD and LGD through back testing and other methods. We also utilize these estimatesfor measuring credit risks for internal use, allocating risk capital and other purposes.

○Status of Portfolios to which the Standardized Approach is Applied
Eligible external credit assessment institutions used for determining the risk weight for portfolios to which the standardized
approach is applied are Rating and Investment Information, Inc. (R&I) in Japan and Standard & Poor’s Ratings Services(S&P) overseas.
We apply a risk weight of 100% for all of our corporate exposure.

○Summary of Our Internal Rating System
See pages 53 to 54 (Internal Control Systems) for a summary of our internal rating system and rating assignment
procedures.

Status of Capital Adequacy—24

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(6) Credit Risk Exposure, etc.
We exclude regarded-method exposure and securitization exposure from the amount of credit risk exposure.
The outstanding balance is based on exposure at default.
No significant difference exists between period-end credit risk position and the average credit risk position during the fiscal
years ended March 31, 2013 and 2014.

○ Status of Credit Risk Exposure(a) Breakdown by Geographical Area
Billions of yen

As of March 31, 2014

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt Portion

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥74,327.0
24,724.6
7,108.6¥31,575.7
9,530.9
1,697.0¥1,062.4
1,996.2
211.9¥20,235.8
5,464.1
1,662.1¥127,201.0
41,716.0
10,679.8

2,460.0

133.0

136.1

633.5

3,362.9

8,839.9
33.8
4,004.3
2,277.8¥99,051.6/

5,120.9
2,244.9335.0¥41,106.7
/

503.5
0.3
1,015.9
128.4¥3,058.7/

2,648.2
9.0
336.4
174.5
¥25,699.9/

17,112.5
43.2
7,601.6
2,915.8¥168,917.1
7,122.7
Billions of yen

As of March 31, 2013

Domestic
Overseas
Asia
Central andSouth America
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt Portion
Notes:

Loans,
commitments andother nonderivative offbalance-sheet
exposures

Securities

Derivatives

OthersTotal¥75,213.7
21,064.4
5,508.6¥39,317.3
11,487.6
1,453.1¥1,618.3
2,190.4
203.4¥8,929.6
4,793.6
1,330.6¥125,079.0
39,536.2
8,495.9

2,584.5

146.1

157.4

20.4

2,908.5

7,387.9
30.8
3,582.3
1,970.0¥96,278.2/

7,883.8
1,814.5
189.9¥50,805.0
/

581.3
1.2
1,100.6
146.2¥3,808.7/

2,651.4
20.5
531.8
238.7
¥13,723.3/

18,504.7
52.6
7,029.4
2,544.9¥164,615.3
9,197.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes
that are immaterial for the purpose of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

25—Status of Capital Adequacy

(b) Breakdown by Industry
Billions of yen

As of March 31, 2014

Manufacturing
Construction
Real estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Japanese Government;
Bank of Japan
Total
Exempt Portion

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥15,958.4
1,327.2
7,191.9
3,841.7
7,838.4
11,293.9
12,004.9
19,534.6¥2,229.5
163.0
503.8
398.9
676.6
2,567.1
8,647.9¥299.6
7.8
56.8
73.0
137.8
1,859.8
0.2
617.4¥683.3
45.4
17.4
45.3
1,080.1
1,857.7
11.3
7,013.7¥19,170.9
1,543.4
7,770.1
4,358.9
9,733.0
17,578.8
12,016.5
35,813.7

20,060.3

25,919.4

6.0

14,945.4

60,931.3¥99,051.6/¥41,106.7/¥3,058.7/¥25,699.9/¥168,917.1
7,122.7
Billions of yen

As of March 31, 2013

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Japanese Government;
Bank of Japan
Total
Exempt Portion
Notes:

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥15,249.1
1,371.2
7,190.5
3,775.5
7,794.3
10,547.0
11,986.3
18,190.6¥2,033.2
155.5
457.2
2,972.1
654.0
2,578.5
8,085.1¥456.6
10.2
56.4
92.7
233.7
2,282.9
0.1
662.3¥290.2
3.9
32.7
21.2
636.0
1,489.9
13.9
6,204.2¥18,029.2
1,540.8
7,736.9
6,861.7
9,318.0
16,898.4
12,000.4
33,142.3

20,173.3

33,869.1

13.6

5,030.9

59,087.1¥96,278.2/¥50,805.0/¥3,808.7/¥13,723.3/¥164,615.3
9,197.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes
that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

Status of Capital Adequacy—26

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(c) Breakdown by Residual Contractual Maturity
Billions of yen

As of March 31, 2014

Less than One Year
From One Year toLess than Three Years
From Three Years to
Less than Five Years
Five Years or MoreOther than Above
Total
Exempt Portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥29,175.7¥8,360.1¥455.7¥4,813.1¥42,804.8

14,691.3

11,291.2

1,448.3

537.8

27,968.7

14,945.4

10,846.7

553.2

18.8

26,364.3

24,670.2
15,568.8¥99,051.6/

6,308.2
4,300.3¥41,106.7/

601.3¥3,058.7/

8.6
20,321.4¥25,699.9/

31,588.4
40,190.7¥168,917.1
7,122.7
Billions of yen

As of March 31, 2013

Less than One Year
From One Year toLess than Three Years
From Three Years to
Less than Five Years
Five Years or MoreOther than Above
Total
Exempt Portion
Notes:

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥30,751.0¥13,704.3¥724.4¥2,543.7¥47,723.6

13,665.5

9,768.9

1,518.1

46.9

24,999.6

13,052.4

14,290.9

807.7

3.8

28,155.1

27,314.7
11,494.3¥96,278.2/

9,199.5
3,841.2¥50,805.0
/

679.8
78.5
¥3,808.7/

5.3
11,123.3¥13,723.3/

37,199.4
26,537.4¥164,615.3
9,197.4

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes
that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

27—Status of Capital Adequacy

○ Status of Exposure Past Due Three Months or More or in Default(d) Breakdown by Geographical Area
Billions of yen

As of March 31, 2014

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt Portion

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥1,017.8
296.9
36.2

¥14.1
2.0
0.0

¥7.8
28.8
0.6

¥33.4
10.2
4.1

¥1,073.3
338.1
41.0

171.6

0.0

19.8

0.1

191.6

1.2
4.3
66.7
16.6
¥1,314.7
/

2.0
0.0
¥16.2
/

8.3
¥36.7
/

2.1
3.8
0.0
¥43.7
/

5.3
4.3
78.9
16.6
¥1,411.4
4.4
Billions of yen

As of March 31, 2013

Domestic
Overseas
Asia
Central and SouthAmerica
North America
Eastern Europe
Western Europe
Other areas
Total
Exempt Portion
Notes:

Loans, commitments
and other nonderivative off-balancesheet exposures

Securities

Derivatives

OthersTotal¥1,373.7
342.6
47.7

¥16.6
0.6
0.0

¥34.7
33.8
0.7

¥46.8
10.2
3.7

¥1,471.9
387.3
52.2

183.8

0.0

24.3

0.1

208.3

7.4
0.4
77.0
26.0
¥1,716.3
/

0.6
¥17.2
/

0.0
8.6
0.1
¥68.6
/

3.5
1.8
0.8
¥57.0
/

11.6
0.4
87.5
27.0
¥1,859.2
3.6

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes
that are immaterial for the purpose of calculating credit risk-weighted assets.
2. Exposure to non-Japanese residents is included in “Overseas.”
3. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

Status of Capital Adequacy—28

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(e) Breakdown by Industry
Billions of yen

As of March 31, 2014

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Total
Exempt Portion

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥271.1
40.8
144.1
123.7
196.9
21.0
174.4
342.5
¥1,314.7
/

¥4.8
2.7
3.5
1.6
1.2
1.4
0.7
¥16.2
/

¥3.5
0.0
0.0
5.5
2.3
2.9
22.3
¥36.7
/

¥10.6
0.6
0.9
3.5
17.3
4.1
1.1
5.1
¥43.7
/

¥290.1
44.3
148.6
134.5
217.9
29.5
175.5
370.7
¥1,411.4
4.4
Billions of yen

As of March 31, 2013

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Total
Exempt Portion
Notes:

Loans, commitments
and other non- derivative
off-balance-sheet
exposures

Securities

Derivatives

OthersTotal¥415.3
47.0
255.1
170.0
216.9
25.1
210.8
375.7
¥1,716.3
/

¥7.3
2.5
4.4
0.7
0.8
0.3
1.0
¥17.2
/

¥13.8
0.0
0.0
5.4
16.7
2.7
0.0
29.7
¥68.6
/

¥14.3
0.8
0.6
5.0
24.9
5.6
1.3
4.2
¥57.0
/

¥450.9
50.5
260.3
181.3
259.4
33.7
212.1
410.7
¥1,859.2
3.6

1. Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses onloans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes
that are immaterial for the purpose of calculating credit risk-weighted assets.
2. “Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

29—Status of Capital Adequacy

○ Status of Reserves for Possible Losses on Loans
The amounts associated with regarded-method exposure and securitization exposure are excluded.

(f) Fiscal Year-End Balances of Reserves for Possible Losses on Loans and Changes during the Fiscal
Year (after Partial Direct Write-Offs)
As of, or for the fiscal year ended, March 31,

General Reserve for
Possible Losses on Loans

Specific Reserve for
Possible Losses on Loans

Reserve for Possible Losses
on Loans to Restructuring
Countries
Total

Note:

Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance
Beginning Balance
Increase during the Fiscal Year
Decrease during the Fiscal YearEnding Balance

2014

Billions of yen
2013¥503.0
398.7
503.0
398.7
235.7
216.7
235.7
216.7
1.0
0.7
1.0
0.7
¥739.8
616.3
739.8
616.3

¥447.5
503.0
447.5
503.0
243.9
235.7
243.9
235.7
0.0
1.0
0.0
1.0
¥691.5
739.8
691.5
739.8

General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and theamounts associated with regarded-method exposure and securitization exposure are not excluded.

Status of Capital Adequacy—30

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(g) Specific Reserve for Possible Losses on Loans by Geographical Area and Industry
Billions of yen
As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Overseas
Exempt Portion
Total

2014

2013

Change¥138.4
30.7
7.5
11.7
12.0
32.1
0.0
35.9
8.1
71.1
7.1
¥216.7¥171.3
35.1
7.0
24.9
12.3
38.2
0.1
41.8
11.6
57.8
6.4
¥235.7¥ (32.9)(4.3)
0.4(13.1)
(0.2)
(6.1)
(0.1)
(5.8)
(3.5)
13.2
0.7
¥ (18.9)

2013

2012

Change¥171.3
35.1
7.0
24.9
12.3
38.2
0.1
41.8
11.6
57.8
6.4
¥235.7¥187.4
26.8
6.0
20.3
14.1
39.7
0.8
67.3
12.0
50.4
6.0
¥243.9¥ (16.0)
8.2
0.9
4.5
(1.8)
(1.5)
(0.6)
(25.4)
(0.3)
7.4
0.3
¥ (8.2)

Billions of yen
As of March 31,

Domestic
Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Overseas
Exempt Portion
Total
Note:

Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial for
purposes of calculating credit risk-weighted assets.

(h) Write-Offs of Loans by Industry
Billions of yen
For the fiscal year ended March 31,

Manufacturing
Construction
Real Estate
Service Industries
Wholesale and Retail
Finance and Insurance
Individuals
Other Industries
Exempt Portion
Total
Notes:

2014

2013

¥2.8
0.4
0.7
1.6
6.1
0.1
7.6
2.8
0.0
¥22.4

¥18.3
1.1
0.7
5.3
7.2
10.0
6.7
0.1
¥49.7

1. The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding
the amounts associated with regarded-method exposure and securitization exposure.
2. Exempt portion represents the amount calculated using the standardized approach for business units and asset classes that are immaterial
for purposes of calculating credit risk-weighted assets.
3. “Other industries” include overseas and non-Japanese resident portions.

31—Status of Capital Adequacy

○ Status of Exposure to which the Standardized Approach is Applied(i) Exposure by Risk Weight Category after Applying Credit Risk Mitigation
Billions of yen

As of March 31, 2014

Risk Weight

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

Total

On-balance Sheet

Off-balance Sheet

Total

With External Rating¥623.3
81.8
482.1
63.9
2,835.9
0.0
55.9¥4,143.2¥729.4
0.0
790.3
3.8
1,455.8
0.0
0.0¥2,979.5¥1,352.8
81.8
1,272.4
67.8
4,291.7
0.0
55.9
0.0
0.0
¥7,122.7¥129.3
25.2
36.0
45.8
¥236.4
Billions of yen

As of March 31, 2013

Risk Weight

Total
Notes:

0%
10%
20%
35%
50%
100%
150%
250%
350%
625%
937.5%
1,250%

On-balance sheet

Off-balance sheet

Total

With External Rating¥2,660.4
111.2
314.0
20.0
2,455.3
0.0
45.3¥5,606.5¥1,462.2
0.0
892.0
1.3
1,235.1
0.0
0.0¥3,590.8¥4,122.7
111.2
1,206.0
21.4
3,690.5
0.0
45.3
0.0
0.0
¥9,197.4¥195.88.0
3.3
44.0¥251.3

1. The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring
countries and partial direct write-offs.
2. Off-balance-sheet exposure shows credit equivalent amount.

Status of Capital Adequacy—32

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(j) Amount of Exposure to which a Risk Weight of 1,250% is Applied
As of March 31,

2014

Amount of Exposure to which a Risk Weight of 1,250% is Applied¥7.5

Billions of yen
2013

¥9.8

○ Status of Exposure to which the Internal Ratings-based Approach is Applied(k) Specialized Lending Exposure under Supervisory Slotting Criteria by Risk Weight Category
Billions of yen
As of March 31,

Risk Weight

50%
70%
90%
95%
115%
120%
140%
250%
Default

Total

2014

2013

¥0.0
23.1
5.9
70.6
15.0
23.6
90.8
30.1
¥259.4

¥19.8
6.1
75.4
15.9
19.4
24.6
124.6
32.4
¥318.5(l) Equity Exposure under Simple Risk Weight Method of Market-based Approach by Risk Weight
Category
Billions of yen
As of March 31,

Risk Weight
Total
Note:

300%
400%

2014

2013

¥430.759.9¥490.7¥298.965.5¥364.4Of the equity exposure under the simple risk weight method, a risk weight of 300% is applied for listed equities and 400% for unlisted equities.

33—Status of Capital Adequacy

(m) Portfolio by Asset Class and Ratings Segment (Corporate, etc.)
Billions of yen, except percentages

As of March 31,
2014

Corporate
Investment
Grade zone
Noninvestment
Grade Zone
Default
Sovereign
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Bank
Investment
Grade Zone
Noninvestment
Grade Zone
Default
EquityExposure
under PD/LGD
Approach
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Total
Investment
Grade Zone
Noninvestment
Grade Zone
Default

PD(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL
Default(EAD
Weighted
Average)(%)

Risk Weight(EAD
Weighted
Average)(%)

Off-balance
Sheet

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversi
on Factor(%)

EAD(Billions ofyen)

On-balance
Sheet

2.45

35.48

/

39.99

¥63,438.6¥47,762.7¥15,675.9¥13,690.8

75.17

0.10

37.10

/

26.08

42,215.3

29,168.8

13,046.5

11,656.6

75.13

2.45

31.69

/

69.43

20,207.7

17,619.2

2,588.4

2,029.5

75.41

100.00
0.01

43.22
38.23

40.77
/

32.55
1.32

1,015.6
77,930.3

974.6
61,723.6

41.0
16,206.6

4.7
500.8

75.00
75.55

0.00

38.23

/

1.22

77,845.4

61,642.8

16,202.5

498.8

75.55

1.68

37.00

/

86.14

84.8

80.6

4.1

2.0

75.00

100.00
0.34

57.72
35.94

53.15
/

60.49
26.53

0.0
6,540.7

0.0
3,811.0

2,729.7

397.8

75.00

0.09

35.88

/

23.06

5,981.1

3,485.2

2,495.9

324.4

75.00

0.93

36.11

/

64.10

547.7

317.0

230.7

73.4

75.00

100.00

59.57

56.39

42.14

11.8

8.7

3.0

-

-

0.43

90.00

/

136.67

1,199.5

1,199.5

-

-

-

0.07

90.00

/

123.091,090.3

1,090.3

-

-

-

1.94

90.00

/

252.67

106.8

106.8

-

-

-

100.00
1.06

90.00
37.37

/
/

1,192.50
19.97

2.2¥149,109.3

2.2¥114,496.9¥34,612.3¥14,589.6

75.18

0.04

38.19

/

11.55

127,132.2

95,387.3

31,744.9

12,479.9

75.14

2.40

32.12

/

70.30

20,947.2

18,123.8

2,823.3

2,104.975.39

100.00

43.52

40.95

35.23

1,029.8

985.7

44.0

4.7

75.00

Status of Capital Adequacy—34

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Billions of yen, except percentages

As of March 31, 2013

EAD
(Billions ofyen)

On-balance
Sheet

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)
(%)

3.32

35.56

/

43.03

¥59,718.2

0.10

37.12

/

25.14

2.72

32.28

/

100.00
0.01

43.88
38.38

0.00

Corporate
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Sovereign
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Bank
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Equity Exposure
under PD/LGD
Approach
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Total
Investment
Grade Zone
Noninvestment
Grade Zone
Default
Notes:

Risk
Weight(EAD
Weighted
Average)(%)

EL
Default(EAD
Weighted
Average)(%)

Off-balance
Sheet

Amount of
Undrawn
Commitments

Weighted
Averageof Credit
Conversion
Factor(%)¥44,523.2¥15,194.9¥12,758.1

75.13

37,217.6

24,836.9

12,380.7

10,816.9

75.09

75.30

21,129.8

18,397.1

2,732.7

1,931.4

75.32

41.51
/

31.50
1.16

1,370.6
77,908.6

1,289.2
61,976.8

81.4
15,931.8

9.7
424.2

75.00
75.25

38.38

/

1.04

77,785.0

61,859.9

15,925.1

421.0

75.25

1.53

38.21

/

74.81

123.4

116.7

6.6

3.1

75.00

100.00
0.38

60.56
36.42

56.02
/

60.21
27.58

0.1
6,602.6

0.1
3,557.2

3,045.4

330.8

75.00

0.09

36.31

/

23.95

5,994.2

3,265.6

2,728.6

248.7

75.00

0.93

36.86

/

63.90

594.1

280.7

313.4

82.1

75.00

100.00

64.05

60.97

40.81

14.2

10.8

3.3

-

-

0.41

90.00

/

139.55

1,107.3

1,107.3

-

-

-

0.07

90.00

/

122.81

975.4

975.4

-

-

-

1.76

90.00

/

252.57

130.4

130.4

-

-

-

100.00

90.00

/

1.39

37.53

0.04

1.5

1.5

-

-

-

/

1,192.50
20.62¥145,336.9¥111,164.7¥34,172.2¥13,513.2

38.31

/

10.49

121,972.4

90,937.9

31,034.4

11,486.7

75.13
75.10

2.66

32.78

/

76.04

21,977.9

18,925.0

3,052.9

2,016.7

75.31

100.00

44.14

41.71

32.86

1,386.5

1,301.7

84.7

9.7

75.00

1. Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default includes E2R through H1 (seepage 53 (Internal Control Systems) for details of obligor ratings).
2. “Corporate” does not include specialized lending exposure under supervisory slotting criteria.
3. Each asset class includes purchased receivables.
4. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted
average of credit conversion factor.
5. Regarding equity exposure under the PD/LGD approach, we recognize the risk-weighted assets by multiplying 1,250% by the expected loss (“EL”).

35—Status of Capital Adequacy

(n) Portfolio by Asset Class and Ratings Segment (Retail)Billions of yen, except percentages

As of March 31, 2014

Residential
mortgage
Non-default
Default
Qualifying
Revolving Loan
(Retail)
Non-default
Default
Other RetailNon-default
Default
Total
Non-default
Default

Risk
Weight(EAD
Weighted
Average)(%)

EAD(Billions of yen)On-balance
Sheet

Offbalance
Sheet

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL
Default(EAD
Weighted
Average)
(%)

2.26

42.14

/

33.23

¥10,366.2¥10,153.8¥212.3

¥7.8

75.00

0.79
100.00

42.05
48.29

/
46.23

33.31
27.42

10,212.8
153.4

10,004.3
149.5

208.4
3.9

7.8
-

75.00
-

3.41

78.51

/

67.66

434.7

288.1

146.6

1,507.99.72

3.17
100.004.95
1.69
100.002.84
1.05
100.00

78.52
74.08
53.78
54.01
47.17
45.66
45.62
47.99

/
70.63
/
/
44.77
/
/
45.79

67.72
45.62
50.51
51.15
31.80
37.82
37.98
29.12

433.7
1.0
2,730.9
2,640.2
90.6¥13,531.9
13,286.8
245.1

287.3
0.8
2,713.8
2,626.7
87.0¥13,155.8
12,918.4
237.4

146.4
0.2
17.0
13.5
3.5
¥376.1368.4
7.6

1,506.1
1.7
18.4
14.7
3.6
¥1,534.2
1,528.7
5.4

9.72
11.76
69.80
63.66
94.41
10.78
10.58
67.35

PD
(EAD
Weighted
Average)
(%)

LGD
(EAD
Weighted
Average)(%)

EL
Default(EAD
Weighted
Average)(%)

Risk
Weight(EAD
Weighted
Average)(%)

EAD(Billions of yen)On-balance
Sheet

Offbalance
Sheet

2.62

42.20

/

32.86

¥10,477.7¥10,231.1¥246.6

¥7.5

75.00

0.79
100.00

42.08
48.39

/
46.37

32.98
26.79

10,284.4
193.2

10,042.9
188.1

241.5
5.1

7.5
-

75.00
-

3.86

78.81

/

72.32

372.6

252.4

120.2

1,439.4

8.35

3.54
100.005.37
1.73
100.003.22
1.05
100.00

78.82
76.05
53.09
53.29
47.89
45.43
45.37
48.33

/
72.89
/
/
45.49
/
/
46.17

72.42
41.79
48.25
48.88
31.78
37.10
37.29
28.59

371.4
1.2
2,799.1
2,695.3
103.7¥13,649.5
13,351.2
298.3

251.4
1.0
2,778.2
2,678.3
99.8¥13,261.9
12,972.8
289.0

119.9
0.2
20.8
16.9
3.9
¥387.6378.4
9.2

1,437.5
1.8
20.9
16.9
4.0
¥1,467.9
1,462.0
5.8

8.35
12.13
73.48
68.19
95.77
9.62
9.38
69.36

Weighted
Amount of Average of
Undrawn
CreditCommit- Conversion
ments Factor (%)

Billions of yen, except percentages

As of March 31, 2013

Residential
Mortgage
Non-default
Default
Qualifying
Revolving Loan
(Retail)
Non-default
Default
Other RetailNon-default
Default
Total
Non-default
Default
Notes:

Weighted
Amount of Average of
CreditUndrawn
Commit- Conversion
ments Factor (%)

1. Each asset class includes purchased receivables.
2. The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted
average of credit conversion factor.

Status of Capital Adequacy—36

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(o) Actual Losses by Asset Class

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other Retail
Total
Note:

For the period from April 1, 2013
through March 31, 2014

Billions of yen
For the period from April 1, 2012
through March 31, 2013

Actual Losses

Actual Losses¥ (41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥ (57.4)

¥75.6
0.2
(5.0)
(9.2)
0.3
0.2
¥62.1

Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserve for possible losses on loans and general reserve forpossible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs, losses from sales of non-performing
loans, losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity exposure under the PD/LGD approach is not included in theamount of actual losses.
<Analysis>
Actual losses of negative ¥57.4 billion in the period from April 1, 2013 through March 31, 2014 decreased by ¥119.5 billion compared with the period from April 1,2012 through March 31, 2013. This was due to significant decrease in losses from corporate exposure.

37—Status of Capital Adequacy

(p) Comparison of Estimated and Actual Losses by Asset ClassFor the period from April 1, 2013
through March 31, 2014
Estimated Losses (Expected
Losses as of March 31, 2013)
ActualAfter Deduction ofLossesReserves

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other RetailTotal¥785.1
1.7
12.5
123.7
11.2
69.1
¥1,003.5¥246.9(11.9)
6.4
50.5
3.9
26.2
¥322.3¥ (41.2)(13.5)
(1.2)
(3.2)
0.4
1.4
¥(57.4)

For the period from April 1, 2011
through March 31, 2012
Estimated Losses (Expected
Losses as of March 31, 2011)
ActualAfter Deduction ofLossesReserves

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other RetailTotal¥989.6
1.3
31.9
150.4
12.2
74.7
¥1,260.3¥373.2(11.7)
4.1
43.2
4.2
24.1
¥437.2

¥29.2
0.2
(1.4)
(2.9)
(0.7)
5.2
¥29.5

For the period from April 1, 2009
through March 31, 2010
Estimated Losses (Expected
Losses as of March 31, 2009)
ActualAfter Deduction ofLossesReserves

Corporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other RetailTotal¥1,313.1
1.7
35.5
95.8
10.3
51.3
¥1,508.0¥473.3(10.8)
6.5
24.8
3.8
15.6
¥513.3¥166.5
0.3
1.0
33.2
0.2
4.3
¥205.8For the period from April 1, 2012
through March 31, 2013
Estimated Losses (Expected
Losses as of March 31, 2012)
ActualAfter Deduction ofLossesReserves¥828.0
3.1
18.4
134.8
10.8
73.5
¥1,068.8¥272.6(10.2)
6.3
41.6
3.7
24.2
¥338.4

¥75.6
0.2
(5.0)
(9.2)
0.3
0.2
¥62.1

Billions of yen
For the period from April 1, 2010
through March 31, 2011
Estimated Losses (Expected
Losses as of March 31, 2010)
ActualAfter Deduction ofLossesReserves¥1,296.9
1.5
38.4
122.6
10.2
51.2
¥1,521.1¥454.0(11.4)
8.3
31.1
3.5
15.0
¥500.6

¥22.9
0.2
(0.4)
31.5
1.4
23.1
¥78.7

Billions of yen
For the period from April 1, 2008
through March 31, 2009
Estimated Losses (Expected
Losses as of March 31, 2008)
ActualAfter Deduction ofLossesReserves¥1,121.0
1.3
2.9
86.6
7.9
51.9
¥1,271.8¥350.0(11.1)
2.5
22.7
3.2
16.4
¥383.9¥345.3
0.0
28.6
17.2
2.1
3.8
¥397.3

Status of Capital Adequacy—38

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Billions of yen
For the period from April 1, 2007
through March 31, 2008
Estimated Losses (Expected
Losses as of March 31, 2007)
After Deduction ofActualReserves
LossesCorporate
SovereignBank
Residential Mortgage
Qualifying Revolving Loan (Retail)
Other Retail
Total
Notes:¥1,086.0
5.4
6.4
78.2
7.2
52.9
¥1,236.5¥217.0
(7.0)
2.6
6.8
2.3
8.8
¥230.5

1. Estimated losses after deduction of reserve are the amount after deductions of partial direct write-offs, specific reserves for possible losses onloans and general reserves for possible losses on loans (for claims against special attention obligors or below), etc., as of the beginning of eachperiod. Equity exposure under the PD/LGD approach is not included in the amount of estimated losses.
2. Actual losses are the sum of the net increase (decrease) in the amount of partial direct write-offs, specific reserves for possible losses on loans andgeneral reserves for possible losses on loans (for claims against special attention obligors or below), etc., as well as tax-qualified direct write-offs,
losses from sales of non-performing loans, losses from debt forgiveness and losses from debt-equity swaps during the relevant period. Equity
exposure under the PD/LGD approach is not included in the amount of actual losses.

39—Status of Capital Adequacy

¥74.6
0.0
(2.6)
5.1
(0.1)
(2.8)
¥74.1

■ Methods for Credit Risk Mitigation(7) Risk Management Regarding Credit Risk Mitigation
We obtain collateral and guarantees as a means of securing credit. In obtaining the collateral and guarantees, weevaluate the value of the collateral, guarantee performance capability of guarantor and legal enforceability, and we also
conduct periodical subsequent re-evaluations. Furthermore, we monitor the state of concentration of collateral type andconcentration of credit risks in individual companies, including indirect credit exposure such as guarantees.
When calculating the credit risk weighted assets for capital adequacy ratio regulations, the effect of credit risk mitigation
through financial collateral (mainly deposits and securities), other collateral (mainly real estate) and guarantees by“sovereign, banks or corporations above a certain credit rating” is reflected.
For derivatives transactions and repurchase transactions, in cases in which a bilateral netting contract is valid in light of
the legal system of the relevant jurisdiction, we take its effect into consideration.

(8) Credit Risk Mitigation by Portfolio Classification
The amounts of exposure to which the method of credit risk mitigation through collateral and guarantees is applied are as
follows:
Billions of yen
As of March 31, 2014

Financial
Collateral

Other
CollateralInternal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loan
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal¥2,463.0
2,071.0
2.5
363.2
26.1
26.1
285.7
250.0
6.3
29.4
¥2,748.8¥4,917.9
4,604.9
16.8
97.5
198.6
198.6
/
/
/
/
/
/
/
¥4,917.9

Guarantees

CreditDerivatives

Total¥6,963.4
5,867.3
282.5
24.6
789.0
181.8
0.2
606.8
53.8
53.8
¥7,017.2

¥29.0
29.0
¥29.0

¥14,373.5
12,572.3
301.9
485.4
1,013.8
181.8
0.2
831.6
339.5
303.8
6.3
29.4
¥14,713.1

Status of Capital Adequacy—40

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Billions of yen
As of March 31, 2013

Financial
Collateral

Other
CollateralInternal Ratings-based Approach
Corporate
SovereignBank
RetailResidential Mortgage
Qualifying Revolving Loan
Other Retail
OthersStandardized Approach
Sovereign
Bank
Corporate
Residential Mortgage
Securitizations
OthersTotal¥2,426.9
2,033.7
0.0
365.3
27.8
27.8
971.1
940.9
30.2
¥3,398.1¥4,812.5
4,552.6
18.4
53.1
188.3
188.3
/
/
/
/
/
/
/
¥4,812.5

Guarantees

CreditDerivatives

Total¥6,223.2
4,779.9
481.3
25.7
936.2
206.1
0.3
729.8
28.0
28.0
¥6,251.2

¥46.2
46.2
¥46.2

¥13,509.0
11,412.5
499.7
444.3
1,152.3
206.1
0.3
945.9
999.2
968.9
30.2
¥14,508.2■ Counterparty Risk in Derivatives Transactions and Long-settlement Transactions(9) Management of Counterparty Risk in Derivatives Transactions and Long-settlement Transactions
In managing the risk pertaining to counterparty risk in derivatives transactions and long-settlement transactions, we
generally allocate risk capital together with loans, etc. As to derivatives transactions with financial institutions, etc., weperiodically, where necessary, deliver and receive collateral to and from the counterparty based on the replacement cost to
mitigate credit risk (collateralized derivative transactions). In conducting such transactions, there is a risk in which we may
be required to provide additional collateral in cases where our credit profile deteriorates. We calculate reserves forderivatives transactions by multiplying the same reserve ratio that we use for loans, etc., against the replacement cost.

41—Status of Capital Adequacy

(10) Status of Counterparty Risk in Derivatives Transactions and Long-settlement Transactions(a) Status of Derivatives Transactions and Long-settlement Transactions
Derivative Transactions
Billions of yen
As of March 31, 2014
Gross
Replacement
Cost

Gross Addon

CreditEquivalent
AmountGross
Replaceme
nt CostGross Addon

CreditEquivalent
Amount¥1,636.4¥2,377.2¥4,013.6¥2,562.5¥2,293.7¥4,856.3

4,255.8

1,794.5

6,050.3

6,023.2

2,384.8

8,408.0

119.8

84.4

204.2

110.7

100.9

211.7

25.7

93.9

119.6

25.7

97.1

122.8

382.9

1,279.8

1,662.7

304.5

1,007.2

1,311.7

53.6

250.2

303.9

69.8

299.7

369.5

6,474.4/

5,880.1/

12,354.6
7,578.6

9,096.7/

6,183.5/

15,280.2
9,775.2(C)=(A)+(B)
(D)

/
/

/
/

4,775.9
631.9

/
/

/
/

5,505.0651.8(C)+(D)¥/¥/¥4,144.0¥/¥/¥4,853.1

Current Exposure Method
Foreign Exchange-related
Transactions
Interest Rate-related
Transactions
Gold-related Transactions
Equity-related Transactions
Transactions related toPrecious Metals (Other thanGold)
Other Commodity-related
Transactions
Credit Derivatives
Transactions
Subtotal
Netting Benefits by Close-out
Netting Settlement Contracts
Subtotal
Effect of Credit Risk Mitigation
by Collateral
Total

(A)
(B)

Standardized Method
Total
Note:

As of March 31, 2013

CreditEquivalent
AmountCreditEquivalent
Amount¥193.0¥195.6The current exposure method and standardized method are used as the method to calculate credit equivalent amounts.

Long-settlement Transactions
Billions of yen
2014

As of March 31,

Long-settlement Transactions
Notes:

2013

Gross
Replacement
Cost

Gross
Add-onCreditEquivalent
AmountGross
Replacement
Cost

Gross
Add-onCreditEquivalent
Amount

¥5.0

¥2.3

¥7.4

¥3.3

¥3.0

¥6.3

1. The current exposure method is used as the method to calculate credit equivalent amounts.
2. Neither the “netting benefits by close-out netting settlement contracts” nor the “effect of credit risk mitigation by collateral” applies to long-settlement transactions.

Status of Capital Adequacy—42

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Amounts of Credit Risk Mitigation by TypeAs of March 31,

Billions of yen
2013

2014

Financial Collateral
Other Collateral
Guarantees, Others
Total

¥17.3
29.9
19.3
¥66.6

¥31.8
51.3
10.1
¥93.3

(c) Notional Amount of Credit Derivatives Subject to Credit Equivalent Amount Calculations
Billions of yen
As of March 31,

Credit Derivatives Type:
Credit Default Swap
Total Return swap
Total

Note:

Protection Bought
Protection Sold
Protection Bought
Protection Sold
Protection Bought
Protection Sold2014

, 2013

Notional Amount

Notional Amount¥2,169.2
2,018.6¥2,169.2
2,018.6¥2,511.3
2,308.0¥2,511.3
2,308.0

Credit derivatives used for credit risk mitigation are as follows:

As of March 31,

Credit Derivatives Used for Credit Risk Mitigation

43—Status of Capital Adequacy

2014

Billions of yen
2013

¥79.5

¥113.7

■ Securitization Exposure
We classify transactions as securitization exposure based on two characteristics, “non-recourse” and “senior/subordinatedstructure,” pursuant to the definitions set forth in the FSA Notice No. 20, etc.; provided that the transactions do not include
those which fall within specialized lending exposure.

(11) Summary of Securitization Exposure and Its Risk Management
We are associated with securitization transactions from various purposes and positions through our banking book andtrading book. Quantitative information related to (a) to (c) below is disclosed in “(13) Quantitative disclosure items forsecuritization exposure,” in accordance with the definitions set forth in the FSA Notice No. 20. Securitization exposures are
separately disclosed for calculation of credit risk-weighted assets and market risk equivalent amounts.

○The Role of Our securitization transactions(a) Securitization of our assets (“Securitization as originator”)
For the purposes of mitigating credit risk and credit concentration risk, controlling economic capital and responding to theneeds of our investors, etc., we engage in securitization transactions the underlying assets of which include mortgage
loans and loans to our corporate customers. When conducting a securitization as an originator, we consider suchtransaction from various aspects, including the effects of reduction of economic capital and improvement of return on risk
as well as the practical effects of risk transfers, and make a comprehensive judgment on structure and appropriateness oftransaction.
(b) Securitization Program (ABCP/ABL) Sponsor
As a means of supporting our customers in their securitization of their account receivables and notes receivables, etc., weretain securitization exposure by providing asset-backed loans (ABLs, which are on-balance-sheet transactions), andproviding asset-backed commercial paper (ABCP) backup lines (off-balance-sheet transactions), as sponsor to special
purpose companies (in the form of Cayman Islands Corporations, etc.). In such cases, in addition to gaining firm
understanding of the actual risk profile through due diligence from the viewpoint of investors, we assign internal ratings andmake evaluations by assessing such transactions and carefully managing the exposure together with other direct loan
assets.
(c) Investment in Alternative Credit Risk Assets (“Securitization Transactions as Investor”)
We hold securitization products, such as ABS, CMBS, RMBS, and CDO, and resecuritization products, the underlying
assets of which are mainly RMBS and CDO, etc., for the purpose of investing in alternative credit risk assets that are
different from conventional credit risk assets in order to diversify our investment portfolio. The Portfolio Management
Committee, etc. set limits on the amount of investment for securitization transactions as investor, and we maintain astringent structure for management of such transactions. In addition, we implement stress tests based on scenarios underthe market liquidity depletion and sharp price declines.
In addition, we undertake various securitization program arrangements such as ABL, ABCP and trust schemes, etc., as ameans of financing for our customers. We endeavor to understand the actual risk profile, including the underlying assets,
and to disclose appropriately the risks and terms of the program to the customers who invest in the product.
Furthermore, we actively act as servicer for securitization transactions, offer settlement account facilities (servicer cash
advance) and provide interest rate swaps to securitization conduits.
None of our affiliated entities hold securitization products in which we are involved as originators or sponsors.

Status of Capital Adequacy—44

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Overview of Risk Characteristics in Securitization and Monitoring System
In addition to price fluctuation and market liquidity risks, securitization and resecuritization products are exposed to risks
related to default, recovery and granularity of underlying asset portfolio.
The structure of these products also contains risks related to the originators, the administrators, trustees and managers of
the underlying assets.
To address these risks, we also analyze the structure in terms of the underlying assets and credit events. We monitor theability, quality and operating performance of originators and managers in charge of controlling the underlying assets as wellas covenant information and credit status of the parties related to the program.
In addition, for resecuritization products, we pay attention to the underlying assets of the underlying securitization products.
We also assign internal ratings to all products and review the rating at least once a year. If there is a change in the credit
situations, we will review the internal rating as appropriate. As mentioned above, we have established a system tocomprehensively understand the risk characteristics of securitization exposures and manage these exposures.
We conduct credit risk measurements on all credit transactions, including securitization transactions. Furthermore, we
carry out periodic monitoring on investment amount and performance on securitization transactions and report thesituations to our Portfolio Management Committee, etc.

○Status of Response to Basel Framework
In calculating credit risk-weighted assets of securitization exposure under the internal ratings-based approach, we apply theratings-based approach (“RBA”) if the asset has a rating obtained from eligible external credit assessment institutions andapply the supervisory formula approach (“SF”) in other cases pursuant to the FSA Notice No. 20. We apply a risk weight of
1,250% under Basel III when neither RBA nor SF can be applied.
In addition, in calculating credit risk-weighted assets of securitization exposure under the standardized approach, we
calculate based on risk weight according to ratings by eligible external credit assessment institutions and weighted averagerisk weight of underlying assets.
In terms of securitization exposure in our trading book that is subject to market risk regulations, we adopt the standardized
measurement method and calculate market risk equivalent amounts in connection with the specific risks of securitization
products based on risk weights according to ratings assigned by eligible external credit assessment institutions pursuant to
the FSA Notice No. 20.
As for the eligible external credit assessment institutions, we refer to Rating and Investment Information, Inc. (R&I), Japan
Credit Rating Agency, Ltd. (JCR), Moody's Investors Service Inc. (Moody's), Standard & Poor's (S&P) and Fitch Ratings,
Ltd. in determining securitization exposure risk weight (We do not separately designate eligible external credit assessment
institutions for each type of securitization exposure).

(12) Accounting Policies for Securitization Transactions
The point at which financial assets and liabilities relating to securitization transactions begin or cease to be recognized,
their evaluation and accounting treatment are pursuant to “Accounting Standards Relating to Financial Products” (BusinessAccounting Standards No. 10), etc., and we conduct valuations based on market price or other reasonably calculated price(such as a price quoted by a broker or an information vender) unless the valuation based on such information is recognized
as extremely difficult to conduct in practice. With respect to the credit investments in securitization products made as analternative to loans by the European, North American and other offices of domestic consolidated banking subsidiaries, weapplied reasonably calculated prices based on the reasonable estimates of our management as fair value. In deriving
reasonably calculated prices based on the reasonable estimates of our management, we used the discounted cash flow
method, and the price decision variables include default rates, recovery rates, pre-payment rates and discount rates.
Furthermore, we apply appropriate accounting treatment on compound financial products based on “Report on Auditing
Securitized Instruments”, announced by the Japanese Institute of Certified Public Accountants on March 26, 2008.

45—Status of Capital Adequacy

(13) Quantitative Disclosure Items for Securitization Exposure○ Securitization Exposure as Originator (for Calculation of Credit Risk-weighted Assets)(a) Information by Type of Underlying Assets
As of, or for the fiscal year ended,
March 31, 2014

Traditional securitizations
Amount of Underlying Assets (a)Default Exposure
Losses during the Fiscal Year
Amount of Exposures
Securitized during the Fiscal
Year
Gains and Losses Recognizedon sales during the fiscal year
Securitization Subject to Early
Amortization Treatment
Synthetic Securitizations
Amount of Underlying Assets (b)Default Exposure
Losses during the Fiscal Year
Amount of Exposures
Securitized during the Fiscal
Year
Total Amount of Underlying
Assets (a)+(b)Residential
Credit Mortgage
Cards
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateBillions of yen
Securitization
Products
Total¥-¥117.6
1.4
0.3

¥-

¥-

¥-

¥-

¥-

¥117.6
1.4
0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

366.3
-

-

-

366.3
-

-

-

-

-

113.2

-

-

113.2

¥-

¥117.6¥-¥-¥366.3¥-¥-¥484.0Status of Capital Adequacy—46

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

Billions of yen
As of, or for the fiscal year ended,
March 31, 2013

Residential
Credit Mortgage
Loans
Cards

Traditional Securitizations
Amount of Underlying Assets (a)Default Exposure
Losses during the Fiscal Year
Amount of Exposures Securitized
during the Fiscal Year
Gains and Losses Recognized on
Sales during the Fiscal Year
Securitization Subject to Early
Amortization Treatment
Synthetic Securitizations
Amount of Underlying Assets (b)Default Exposure
Losses during the Fiscal Year
Amount of Exposures Securitized
during the Fiscal Year
Total Amount of Underlying Assets(a)+(b)

Notes:

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥-

¥142.3

¥-

¥-

¥-

¥-

¥-

¥142.3

-

1.8

-

-

-

-

-

1.8

-

0.3

-

-

-

-

-

0.3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

496.9

10.0

-

506.9

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥142.3¥-¥-¥496.9¥10.0¥-¥649.3

1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2013 and 2014.
2. “Amount of underlying assets” and “Losses during the fiscal year” include those related to, in addition to exposure originated by us, exposure to assets originatedby other financial institutions if they are contained in the same securitization program.
3. “Default exposure” and “Losses during the fiscal year” with respect to synthetic securitization transactions are based on the definition of default as set forth in therespective transactions.
4. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.
5. “Credit cards” include shopping credit receivables, card loans, etc.
6. The effects of risk mitigation, in the context of calculating capital adequacy ratio, of transfers (hedges) of risk through synthetic securitization transactions arereflected in “Required capital” of “(B) Information of securitization exposure retained or purchased.”
7. Of the securitization exposure retained or purchased whose risk has been transferred (hedged) through securitization schemes, we have categorized securitization
exposure as investor if the risk transfer (hedge) effects are not reflected in the calculation of capital adequacy ratio, following the definition for classification of
securitization exposure set forth in the FSA Notice No. 20, etc.

─Exposure Intended to be Securitized─
Billions of yen

As of March 31, 2014

Exposure Intended to be
SecuritizedReal
EstateSecuritization
Products

Total

¥-

¥-

¥-

CorporateReal
EstateSecuritization
Products

Total

¥-

¥-

¥-

¥-

Auto
Loans

Lease
Payment
Receivables

Corporate

¥-

¥-

¥-

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

¥-

¥-

¥-

¥-

CreditCards

Residential
Mortgage
Loans

¥-

¥-

Billions of yen

As of March 31, 2013

Exposure Intended to be
Securitized

47—Status of Capital Adequacy

(b) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 1,250%
is Applied
Exposure whose Underlying
Assets are Overseas Assets

Residential
Credit Mortgage
Cards
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥¥-

¥34.5
¥34.5
-

¥¥-

¥¥-

¥364.22.0¥366.3-¥¥-¥¥-¥398.82.0¥400.8
-

-

-

-

-

-

-

-

-

-

-

-

-

110.9

-

-

110.9

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 1,250%
is Applied
Exposure whose Underlying
Assets are Overseas Assets
Notes:

Residential
Credit Mortgage
Loans
Cards

¥¥-

¥35.4
¥35.4
-

¥¥-

¥¥-

¥496.9¥496.9
-

¥10.0
¥10.0
-

¥¥-

¥542.3¥542.3
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. “Credit cards” include shopping credit receivables, card loans, etc.
3. “Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.
4. “Exposure on resecuritizations” as of both March 31, 2013 and 2014 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter thesame).

Status of Capital Adequacy—48

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Weight Category─
Billions of yen

As of March 31, 2014

Total

¥320.6
6.2
34.5
11.9
17.4
8.0
¥398.8

As of March 31, 2013

Onbalance
Sheet

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than 1,250%
1,250%

Onbalance
Sheet

Exposure on
Resecuritizations¥-

Offbalance
Sheet

¥-

¥1.9
0.1
¥2.0

Exposure on
Resecuritizations

Offbalance
Sheet

-

Exposure on
Resecuritizations

Total

¥-

¥322.6
6.2
34.5
11.9
17.4
8.1
¥400.8¥-

Exposure on
Resecuritizations¥-¥Billions of yen

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total¥449.6
19.6
36.4
5.0
28.5
3.2
¥542.3¥¥-¥¥-

Exposure on
Resecuritizations

Total

¥¥-

¥449.6
19.6
36.4
5.0
28.5
3.2
-

¥542.3

Exposure on
Resecuritizations¥¥-

─Amount of Required Capital by Risk Weight Category─
Billions of yen

As of March 31, 2014

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than 1,250%
1,250%

Total

Onbalance
Sheet

¥1.9
0.1
1.4
0.8
0.8
0.4
¥5.7

Exposure on
Resecuritizations¥-

Offbalance
Sheet

¥-

¥0.0
¥0.0

Exposure on
Resecuritizations

Offbalance
Sheet

-

Exposure on
Resecuritizations

¥¥-

Total

¥2.0
0.1
1.4
0.8
0.8
0.4
¥5.7

Exposure on
Resecuritizations¥-¥Billions of yen

As of March 31, 2013

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

49—Status of Capital Adequacy

Onbalance
Sheet

¥2.7
0.5
1.8
0.0
0.4
¥5.5

¥¥-

¥¥-

Exposure on
Resecuritizations

¥¥-

Total

¥2.7
0.5
1.8
0.0
0.4
-

¥5.5

Exposure on
Resecuritizations¥¥-

─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total
Note:

2014

Billions of yen
2013

¥¥-

¥¥-

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Capital Increase Due to Securitization Transactions─
Billions of yen

As of March 31, 2014

Capital Increase Due toSecuritization
Transactions

Real
EstateSecuritization
Products

Total

¥-

¥-

¥1.7

CorporateReal
EstateSecuritization
Products

Total

¥-

¥-

¥-

¥2.5

Auto
Loans

Lease
Payment
Receivables

Corporate

¥-

¥-

¥-

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

¥-

¥2.5

¥-

¥-

CreditCards

Residential
Mortgage
Loans

¥-

¥1.7

Billions of yen

As of March 31, 2013

Capital Increase Due toSecuritization
Transactions

─Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the
FSA Notice No. 20─
As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15 ofSupplementary Provisions of the FSA Notice No. 20

2014Billions of yen
2013

¥-

¥-

Status of Capital Adequacy—50

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL) (for Calculation ofCredit Risk-weighted Assets)(c) Information by Type of Underlying Assets
Billion of yen
As of, or for the fiscal year
ended, March 31, 2014

Amount of Underlying
assetsDefault Exposure
Estimated Loss Amountrelated to Underlying
Assets during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal year

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥50.3

¥-

¥14.3

¥61.3

¥464.8¥-¥71.9¥662.7

-

-

-

-

7.1

-

-

7.1

1.1

-

0.1

0.0

8.9

-

0.7

11.0

296.4

-

316.4

646.1

3,308.2-

723.3

5,290.6

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥73.4

¥-

¥49.6

¥75.6

¥457.8¥-¥55.9¥712.4

-

-

-

0.0

7.3

-

-

7.4

0.5

-

0.5

0.3

9.7

-

0.5

11.7

461.2

-

495.9

894.6

2,948.9-

163.4

4,964.2

Billions of yen
As of, or for the fiscal year
ended, March 31, 2013

Amount of Underlying
AssetsDefault Exposure
Estimated Loss Amountrelated to Underlying
Assets during the Fiscal
Year
Amount of Exposures
Securitized during the
Fiscal Year
Notes:

1. Items that refer to “during the fiscal year” show amounts accumulated during the fiscal year ended March 31, 2013 and 2014.
2. Securitization exposure that is acquired in securitization of customer’s claims other than as sponsor (in the form of asset-backed securities, trust beneficiaryrights and other transferable instruments) is categorized as securitization exposure as investor.
3. The amount of default exposure is the amount of the underlying assets recognized as default in the calculation of capital adequacy ratio.
4. Estimated loss amount related to underlying assets is based on the amount of the underlying assets as of the relevant date and the following parameters thatare used in the calculation of capital adequacy ratio:
・ parameters used in the calculation of required capital for an underlying asset when applying the supervisory formula (e.g., PD); and・ with respect to underlying assets classified as securitization exposure, the conservative application of risk weights used in the ratings-based approach.
5. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are
difficult to classify are included under “Others.”
6. “Credit cards” include shopping credit receivables, card loans, etc.

51—Status of Capital Adequacy

(d) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of
1,250% is Applied
Exposure whose Underlying
Assets are Overseas Assets

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥¥-

¥13.0
46.6
¥59.7
-

¥61.3
¥61.3
-

¥471.2111.8¥583.0
-

¥¥-

¥70.2
2.2
¥72.4
-

¥651.6236.1¥887.8
-

-

-

-

-

-

-

-

-

58.3

-

56.6

11.7

257.1

-

60.6

444.4

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥56.9
80.5
¥137.4
-

¥¥-

¥35.7
44.5
¥80.2
-

¥21.7
43.8
¥65.6
-

¥302.5256.0¥558.6
-

¥¥-

¥28.6
35.2
¥63.9
-

¥445.6460.3¥906.0
-

-

-

-

-

-

-

-

-

68.1

-

37.5

8.8

220.9

-

63.4

399.0

CreditCards

Residential
Mortgage
Loans

¥35.8
75.4
¥111.2-

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of
1,250% is Applied
Exposure whose Underlying
Assets are Overseas Assets
Notes:

1. Securitization exposure retained or purchased includes unused portions of securitization programs that are subject to allocation of required capital.
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions thatare difficult to classify are included under “Others.”
3. Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of eachtransaction.
5. “Exposure on resecuritizations” as of both March 31, 2013 and 2014 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20(hereinafter the same).

Status of Capital Adequacy—52

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Weight Category─
Billions of yen
Onbalance
Sheet

Total

¥631.19.7
9.8
1.0¥651.6

As of March 31, 2013

As of March 31, 2014

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than 1,250%
1,250%

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥¥-¥236.1¥236.1¥¥-¥867.39.7
9.8
1.0¥887.8¥¥-Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥438.00.0
2.5
5.1¥445.6¥¥-¥460.3¥460.3¥¥-¥898.30.0
2.5
5.1¥906.0¥¥-Billions of yen

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

─Amount of Required Capital by Risk Weight Category─
Billions of yen

As of March 31, 2014

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than 1,250%
1,250%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥1.4
¥1.4

¥¥-

¥5.3
0.3
0.5
0.1
¥6.3

¥¥-

Onbalance
sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥3.3
0.0
0.1
0.4
¥3.9

¥¥-

¥2.8
¥2.8

¥¥-

¥6.2
0.0
0.1
0.4
¥6.8

¥¥-

Onbalance
Sheet

¥3.9
0.3
0.5
0.1
¥4.9

Billions of yen

As of March 31, 2013

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than 1,250%
1,250%

Total

53—Status of Capital Adequacy─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31,

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total
Note:

2014

Billions of yen
2013

¥¥-

¥¥-

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Credit Risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the
FSA Notice No. 20─
Billions of yen
As of March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15of Supplementary Provisions of the FSA Notice No. 20

2014

2013

¥-

¥-

Status of Capital Adequacy—54

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy○ Securitization Exposure as Investor (for Calculation of Credit Risk-weighted Assets)(e) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations towhich a Risk Weight of
1,250% is Applied
Exposure whose
Underlying Assets are
Overseas Assets

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
Estate¥65.3

OthersTotal¥1,167.9

¥42.9

¥48.7

¥138.4

¥80.9

¥73.7

¥1,618.3

-

18.8

-

-

70.8

-

-

89.6

22.4

-

116.2

6.8

2.8

0.3

3.6

152.3

¥87.8

0.3
¥1,167.9¥159.1¥55.6¥141.3

¥81.3

¥77.3

¥1,770.6

-

19.1

-

-

70.8

-

-

89.9

-

2.2

0.8

1.3

-

16.1

0.6

21.2

77.0

56.7

107.4

38.0

141.2

23.2

8.1

451.9

0.3

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on
Resecuritizations
Off-balance Sheet
Exposure on
Resecuritizations
Total
Exposure on
Resecuritizations
Exposure on
Securitizations towhich a risk Weight of
1,250% is Applied
Exposure whose
Underlying Assets are
Overseas Assets
Notes:

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateOthersTotal¥1,279.3

¥45.5

¥49.9

¥161.4¥156.6¥91.4¥1,863.0

-

23.5

0.5

-

101.8

-

-

125.9

0.0

-

10.0

14.5

0.0

0.4

4.3

29.3

¥78.6

¥1,279.3

¥55.5

¥64.4

¥161.4¥157.1¥95.7¥1,892.3

-

23.5

0.5

-

101.8

-

-

125.9

-

2.6

0.2

1.0

0.7

27.9

0.6

33.2

70.3

55.5

8.6

40.1

158.7

22.7

7.9

364.1

CreditCards

Residential
Mortgage
Loans

¥78.6

-

1. Subordinated contributions for managed collateralized loan obligations (“CLO”), etc., are included in the above table as exposure as investor even when the assets
underlying those CLOs, etc., include exposures that were originated by us. Our subordinated contributions for those managed CLOs, etc. (a risk weight of 1,250%
was applied for purpose of capital adequacy ratio calculation), were ¥0.7 billion as of March 31, 2013 and ¥0.8 billion as of March 31, 2014 .
2. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are difficult toclassify are included under “Others.”
3. “Credit cards” include shopping credit receivables, card loans, etc.
4. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of each transaction.
5. Securitization exposure retained or purchased whose risk transfer (hedge) effects are reflected in the calculation of capital adequacy ratio is categorized as
securitization exposure as originator.
6. “Exposure on resecuritizations” as of both March 31, 2013 and 2014 are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter thesame).

55—Status of Capital Adequacy─Exposure by Risk Weight Category─
Billions of yen

As of March 31, 2014

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥18.8
70.8
¥89.6

¥141.56.8
2.9
1.0¥152.3¥0.3¥0.3¥1,558.6
159.8
10.2
4.4
16.2
21.2
¥1,770.6

¥19.1
70.8
¥89.9

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations¥1,582.7
199.6
30.7
4.5
13.1
32.1
¥1,863.0

¥47.0
78.3
0.5
¥125.9

¥10.0
14.5
3.6
1.1
¥29.3

¥¥-

¥1,592.7
214.2
30.7
4.5
16.8
33.2
¥1,892.3

¥47.0
78.3
0.5
¥125.9Onbalance
Sheet¥1,417.0
153.0
10.2
4.4
13.2
20.1
¥1,618.3

Billions of yen

As of March 31, 2013

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Total

─Amount of Required Capital by Risk Weight Category─
Billions of yen
Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥0.3
2.0
¥2.4

¥0.8
0.1
0.8
1.0
¥2.9

¥¥-

¥10.4
4.4
0.7
0.9
5.8
22.0
¥44.5

¥0.3
2.0
¥2.4

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥10.9
5.2
2.2
0.9
4.6
33.4
¥57.5

¥0.7
1.9
0.0
¥2.7

¥0.0
0.2
1.0
1.1
¥2.5

¥¥-

¥11.0
5.5
2.2
0.9
5.6
34.6
¥60.1

¥0.7
1.9
0.0
¥2.7

Onbalance
Sheet

Total

¥9.5
4.3
0.7
0.9
5.0
20.9
¥41.5

As of March 31, 2013

As of March 31, 2014

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Billions of yen

Risk
WeightTotal

Up to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Less than1,250%
1,250%

Status of Capital Adequacy—56

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Credit Risk Mitigation against Exposure on Resecuritizations─
As of March 31,

Risk
WeightUp to 20%
Up to 50%
Up to 100%
Up to 250%
Up to 650%
Over 650%

Total
Note:

2014

Billions of yen
2013

¥12.5
¥12.5

¥22.3
¥22.3

The above table shows the exposure on resecuritizations based on the risk weight after taking into consideration the effect of method to mitigate credit risk.

─Credit risk-weighted Assets Calculated Pursuant to Article 15 of Supplementary Provisions of the
FSA Notice No. 20─
Billions of yen
As March 31,

Credit Risk-weighted Assets Calculated Pursuant to Article 15of Supplementary Provisions of the FSA Notice No. 20

2014, 2013¥-¥-

In addition to the above, within the provision of credit in the form of eligible servicer cash advance, set forth in Article 246of the FSA Notice No. 20, there was an undrawn portion to which no required capital is allocated.
The balances of such portion as of March 31, 2013 and 2014 were ¥103.1 billion and ¥105.4 billion, respectively.

57—Status of Capital Adequacy

○ Securitization Exposure as Originator (for Calculation of Market Risk Equivalent Amounts)(f) Information by Type of Underlying Assets
Billions of yen
As of, or for the fiscal year ended,
March 31, 2014

Traditional Securitizations
Amount of Underlying Assets (a)Amount of Exposures
Securitized during the Fiscal
Year
Gains and Losses Recognizedon Sales during the Fiscal Year
Securitization Subject to Early
Amortization Treatment
Synthetic Securitizations
Amount of Underlying Assets (b)Amount of Exposures
Securitized during the Fiscal
Year
Gains and Losses Recognizedon Sales during the Fiscal Year
Total Amount of Underlying Assets(a)+(b)Residential
Credit Mortgage
Loans
Cards

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10.0

-

-

10.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥10.0

¥-

¥-

¥10.0

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

Total

Billions of yen
As of, or for the fiscal year ended,
March 31, 2013

Traditional securitizations
Amount of Underlying Assets (a)Amount of Exposures
Securitized during the Fiscal
Year
Gains and Losses Recognizedon Sales during the Fiscal Year
Securitization Subject to Early
Amortization Treatment
Synthetic Securitizations
Amount of Underlying Assets (b)Amount of Exposures
Securitized during the Fiscal
Year
Gains and Losses Recognizedon Sales during the Fiscal Year
Total Amount of Underlying Assets(a)+(b)Note:

Residential
Credit Mortgage
Cards
Loans

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,040.0--

1,040.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

¥-

¥-

¥-

¥-

¥1,040.0¥-¥-¥1,040.0

Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction.

Status of Capital Adequacy—58

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure Intended to be Securitized─
Billions of yen
Residential
Credit Mortgage
Loans
Cards

As of March 31, 2014

Exposure intended to be Securitized

¥-

¥-

Real
EstateSecuritization
Products

Total

¥-

¥-

¥-

Corpor-ate

RealEstateSecuritization
Products

Total

¥-

¥-

¥-

¥-

Total

Auto
Loans

Lease
Payment
Receivables

Corporate

¥-

¥-

¥-

Auto
Loans

Lease
Payment
Receivables¥-¥-

Billions of yen
Residential
Credit Mortgage
Loans
Cards

As of March 31, 2013

Exposure intended to be Securitized¥-¥-(g) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateSecuritization
Products

¥¥-

¥¥-

¥¥-

¥0.0
¥0.0
-

¥¥-

¥¥-

¥0.0
¥0.0
-

-

-

-

-

0.0

-

-

0.0

-

-

-

-

0.0

-

-

0.0

CreditCards

Residential
Mortgage
Loans

¥¥-

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets
Notes:

Real
EstateSecuritization
Products

Total

¥6.2
18.8
¥25.0
-

¥¥-

¥¥-

¥6.2
18.8
¥25.0
-

-

0.0

-

-

0.0

-

0.0

-

-

0.0

Auto
Loans

Lease
Payment
Receivables

Corporate

¥¥-

¥¥-

¥¥-

-

-

-

-

-

-

CreditCards

Residential
Mortgage
Loans

¥¥-

1. Classification based on type of underlying asset is conducted according to the principal underlying asset type for each transaction.
2. “Exposure whose underlying assets are overseas assets” is classified based on the principal underlying asset type for each transaction.

59—Status of Capital Adequacy─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥¥-

¥¥-

¥0.0
¥0.0

¥¥-

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥3.7
2.4
0.0
¥6.2

¥¥-

¥15.1
3.6
¥18.8

¥¥-

¥18.9
6.1
0.0
¥25.0

¥¥-

On
-balance
Sheet

¥0.0
¥0.0

Billions of yen

As of March 31, 2013

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

¥¥-

¥¥-

¥¥-

¥0.0
¥0.0

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

¥0.0
0.0
0.0
¥0.1

¥¥-

¥0.1
0.0
¥0.2

¥¥-

¥0.2
0.1
0.0
¥0.3

Onbalance
Sheet

¥0.0
¥0.0

Exposure on
Resecuritizations¥¥Billions of yen

As of March 31, 2013

Risk
CapitalChargeTotal

Up to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Exposure on
Resecuritizations¥¥-

Status of Capital Adequacy—60

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Subject to Comprehensive Risk Measure─
Billions of yen
As of March 31, 2014

Securitizations

Resecuritizations

¥¥-

¥¥-

Securitizations

Billions of yen
Resecuritizations

¥¥-

¥¥-

Billions of yen
Securitization
Products
Total

Total Amount of Securitization Exposure
Total Amount of Required Capital─Subject to Comprehensive Risk Measure─
As of March 31, 2013

Total Amount of Securitization Exposure
Total Amount of Required Capital─Capital Increase Due to Securitization Transactions─

As of March 31, 2014

Capital increase due toSecuritization Transactions

As of March 31, 2013

Capital Increase Due toSecuritization Transactions

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
Estate

¥-

¥-

¥-

¥-

¥-

¥-

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
Estate

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

Billions of yen
Securitization
Products
Total

¥-

¥-

○ Securitization Exposure as Sponsor of Securitization Programs (ABCP/ABL) (for Calculation ofMarket Risk Equivalent Amounts)(h) Information by Type of Underlying Assets
Billions of yen
As of, or for the fiscal year ended,
March 31, 2014

Amount of Underlying Assets
Estimated Loss Amount Related
to Underlying Assets during
the Fiscal Year
Amount of Exposures
Securitized during the Fiscal
Year

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
Estate¥-Others

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

¥-

Billions of yen
As of, or for the fiscal year ended,
March 31, 2013

Amount of Underlying Assets
Estimated loss Amount Related
to Underlying Assets during
the Fiscal Year
Amount of Exposures
Securitized during the Fiscal
Year

61—Status of Capital Adequacy

(i) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
Estate¥¥-Others

Total

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

Account
and Note
Receivables

Real
EstateOthers

Total

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets

Status of Capital Adequacy—62

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Onbalance
Sheet

¥¥-

Billions of yen

As of March 31, 2013

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Onbalance
Sheet

Exposure on
Resecuritizations

Offbalance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Onbalance
Sheet

¥¥-

Billions of yen

As of March 31, 2013

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

63—Status of Capital Adequacy

○ Securitization Exposure as Investor (for Calculation of Market Risk Equivalent Amounts)(j) Information of Securitization Exposure Retained or Purchased
─Exposure by Type of Underlying Asset─
Billions of yen

As of March 31, 2014

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
Estate¥17.6-

Others

Total

¥4.8
-

¥5.5
-

¥-

¥0.2
-

¥3.9
-

¥1.8
0.1
-

¥33.9
0.1
-

¥17.6
-

¥4.8
-

¥5.5
-

¥-

¥0.2
-

¥3.9
-

¥1.8
0.1

¥33.9
0.1

-

3.1

-

-

0.2

0.4

0.1

4.0

17.6

4.6

5.5

-

0.0

2.1

0.8

30.7

CreditCards

Residential
Mortgage
Loans

Auto
Loans

Lease
Payment
Receivables

CorporateReal
EstateOthers

Total

¥-

¥3.8
-

¥3.5
-

¥-

¥13.3
-

¥5.7
-

¥1.9
0.2
-

¥28.4
0.2
-

¥-

¥3.8
-

¥3.5
-

¥-

¥13.3
-

¥5.7
-

¥1.9
0.2

¥28.4
0.2

-

3.4

-

-

8.3

0.6

0.2

12.7

-

3.2

3.5

-

0.0

3.3

0.9

11.0

Billions of yen

As of March 31, 2013

On-balance Sheet
Exposure on Resecuritizations
Off-balance Sheet
Exposure on Resecuritizations
Total
Exposure on Resecuritizations
Exposure on Securitizations towhich a Risk Weight of 100% isApplied
Exposure whose Underlying
Assets are Overseas Assets
Notes:

1. Classification based on type of underlying assets is conducted according to the principal underlying asset type for each transaction. Transactions that are
difficult to classify are included under “Others.”
2. “Credit cards” include shopping credit receivables, card loans, etc.
3. The classification of transactions of which the underlying assets are overseas assets is conducted according to the principal underlying assets of eachtransaction.
4. “Exposure on resecuritizations” are classified following Article 1, Paragraph 2-2 of the FSA Notice No. 20 (hereinafter the same).

Status of Capital Adequacy—64

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy

─Exposure by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
sheet

Exposure on
Resecuritizations

Offbalance Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥24.6
1.2
3.8
0.1
4.0
¥33.9

¥0.1
¥0.1

¥¥-

¥¥-

¥24.6
1.2
3.8
0.1
4.0
¥33.9

¥0.1
¥0.1
Billions of yen

As of March 31, 2013

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥5.8
1.9
3.0
4.8
12.7
¥28.4

¥0.2
¥0.2

¥¥-

¥¥-

¥5.8
1.9
3.0
4.8
12.7
¥28.4

¥0.2
¥0.2

─Amount of Required Capital by Risk Capital Charge Category─
Billions of yen

As of March 31, 2014

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥0.3
0.0
0.3
0.0
4.0
¥4.8

¥0.1
¥0.1

¥¥-

¥¥-

¥0.3
0.0
0.3
0.0
4.0
¥4.8

¥0.1
¥0.1
Billions of yen

As of March 31, 2013

Risk
CapitalChargeUp to 1.6%
Up to 4%Up to 8%Up to 20%
Up to 52%
Less than 100%
100%

Total

65—Status of Capital Adequacy

On-balance
Sheet

Exposure on
Resecuritizations

Off-balance
Sheet

Exposure on
Resecuritizations

Total

Exposure on
Resecuritizations

¥0.0
0.0
0.2
1.3
12.7
¥14.4

¥0.2
¥0.2

¥¥-

¥¥-

¥0.0
0.0
0.2
1.3
12.7
¥14.4

¥0.2
¥0.2

─Subject to Comprehensive Risk Measure─
Billions of yen
As of March 31, 2014

Securitization

Resecuritiation

¥-

¥-

¥-

¥-

Securitization

Billions of yen
Resecuritiation

¥-

¥-

¥-

¥-

Total Amount of Securitization Exposure
Total Amount of Required
Capital

As of March 31, 2013

Total Amount of Securitization Exposure
Total Amount of Required
Capital■ Market Risk
See pages 55 to 60 (Internal Control Systems) for information regarding market risk.

■ Operational Risk
See pages 60 to 64 (Internal Control Systems) for information regarding operational risk.

■ Equity Exposure in Banking Book
(14) Risk Management Related to Equity Exposure in Banking Book
With regard to equities in our banking book, we manage default risk through our credit risk management structure andprice fluctuation risk through our market risk management structure.
With regard to subsidiaries and related companies in which we invest, we manage their risks on a consolidated basis,and manage them appropriately in accordance with their management classification.
In addition, securities, a part of equity exposure, are valued as follows: Japanese stocks with quoted market prices arevalued based on the average quoted market price over the month preceding the consolidated balance sheet date;other securities which have readily determinable fair values are valued at the quoted market price if available, orotherwise based on their reasonable value at the consolidated balance sheet date (cost of securities sold is calculated
primarily by the moving average method); and other securities the fair values of which are extremely difficult todetermine are stated at acquisition cost or amortized cost and determined by the moving average method.

(15) Status of Equity Exposure in Banking Book(a) Amounts Stated in Consolidated Balance Sheet
Billions of yen

As of March 31,

Exposure of listed stock, etc.
Other equity exposure
Total
Notes:

2014
Consolidated Balance
Sheet Amount

Fair value¥3,479.2
362.7¥3,841.9¥3,616.0/¥/

2013
Consolidated Balance
Sheet Amount

Fair Value¥3,020.4
390.6¥3,411.0¥3,268.1/¥/

1. The above figures include only Japanese and foreign stocks.
2. With the introduction of Basel III from the fiscal year ended March 31, 2013, we partially revised the method of counting equity exposure.

Status of Capital Adequacy—66

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(b) Gains and Losses on Sales Related to Equity Exposure
Billions of yen
2014
For the fiscal year ended
March 31,2013

Gains and Losses
on SalesGains on
Sales

Losses on
Sales

Gains and
Losses on Sales

Gains on
Sales

Losses on
Sales

¥81.5

¥87.4

¥5.9

¥46.6

¥86.2

¥39.5

Sale of Equity Exposure

Note: The above figures represent gains and losses on sales of stocks in our consolidated statement of income.

(c) Gains and Losses from Write-Offs Related to Equity Exposure
2014
Gains and Losses from Write-Offs

For the fiscal year ended March 31,

Write-Offs of Equity Exposure

Billions of yen
2013
Gains and Losses from Write-Offs¥ (5.3)¥ (125.8)

Note: The above figures represent gains and losses on devaluation of stocks in our consolidated statement of income.

(d) Unrealized Gains and Losses Recognized in the Consolidated Balance Sheet and Not Recognizedin the Consolidated Statement of Income
Billions of yen
2014

As of March 31,

Equity Exposure
Notes:

2013

Net Unrealized
Gains

Unrealized
Gains

Unrealized
LossesNet unrealized
Gains

Unrealized
Gains

Unrealized
Losses¥1,241.4¥1,332.3¥90.8¥755.6¥889.0¥133.3

1. The above figures include only Japanese and foreign stocks.
2. With the introduction of Basel III from the fiscal year ended March 31, 2013, we partially revised the method of counting equity exposure.

(e) Unrealized Gains and Losses Not Recognized in the Consolidated Balance Sheet or in theConsolidated Statement of Income
Billions of yen
2014

As of March 31,

Equity Exposure
Notes:

2013

Net

Unrealized
Gains

Unrealized
LossesNet

Unrealized
Gains

Unrealized
Losses¥136.8¥145.2¥8.3¥247.6¥250.0¥2.3

1. The above figures include only Japanese and foreign stocks.
2. With the introduction of Basel III from the fiscal year ended March 31, 2013, we partially revised the method of counting equity exposure.

(f) Equities Exposure by Portfolio Classification
As of March 31,

PD/LGD approach
Market-based Approach (Simple Risk Weight Method)
Market-based Approach (Internal Models Approach)Transitional Measure Applied
Total

67—Status of Capital Adequacy

2014¥1,199.5
490.7
2,609.6¥4,299.9

Billions of yen
2013¥1,107.3364.4
2,361.8¥3,833.6

■ Compensation of Directors, Corporate Auditors and Employees(16) Qualitative Disclosure(a) State of the Organizational System Relating to Compensation of Subject Directors, Corporate
Auditors and Employees of Mizuho Group
1. Subject directors, corporate auditors and employees “Subject directors and corporate auditors” and “Subject employees,
etc.,” subject to disclosure as provided for in the FSA Notice (collectively, Subject directors, corporate auditors andemployees) are as follows:(1) Subject directors and corporate auditors
Subject directors and corporate auditors are directors and corporate auditors of Mizuho Financial Group, Inc. (MHFG).
Outside directors and outside corporate auditors are excluded.
(2) Subject employees, etc.
Subject employees, etc., are employees of MHFG, and directors, corporate auditors and employees of its major
consolidated subsidiaries, other than subject directors and corporate auditors, who are “persons who receive large
amounts of compensation” and materially affect the operation of business or the state of assets of MHFG or its major
consolidated subsidiaries, and are therefore subject to disclosure. The above does not include Subject directors or
corporate auditors.
(a) Major consolidated subsidiaries
A major consolidated subsidiary is an entity whose total assets as a percentage of consolidated total assets
exceeds 2% of a bank holding company or bank or is an overseas local entity that conducts banking businesssimilar to a branch. Specifically, it includes Mizuho Bank, Ltd. (MHBK), Mizuho Bank (USA), Mizuho Trust &Banking Co., Ltd. (MHTB), Mizuho Securities Co., Ltd. (MHSC), Mizuho Securities USA Inc., and Mizuho
International Plc.
(b) Persons who receive large amounts of compensation
A person who receives large amounts of compensation refers to a person who receives compensation thatexceeds the base amount from MHFG or its major consolidated subsidiaries. The base amount at MHFG has been
set at ¥50 million. Such base amount has been set based on the average amounts of the compensation of
directors and corporate auditors of MHFG, MHBK and MHTB for the last three fiscal years (excluding persons who
resigned or retired during each of such fiscal years), taking into account fluctuations in amounts of compensation
over past fiscal years. The preceding base amount has been adopted as the common base in order to unify theselection criteria of persons who receive large amounts of compensation at each of the companies in thisparagraph.
(c) Persons who materially affect the operation of business or the state of assets of Mizuho group
A person who materially affects the operation of business or the state of assets of Mizuho group means a person
who exerts significant influence on the operation of the business of MHFG or a major consolidated subsidiarythrough their work in conducting transactions or management, or who materially affects the state of assets byincurring losses on transactions. Specifically, it includes executive officers of MHFG and directors, corporate
auditors, executive officers, and market department employees of major consolidated subsidiaries.
2. Decisions on compensation of subject directors, corporate auditors, and employees(1) Decisions on compensation of subject directors, and corporate auditors
The compensation committee, which advises the board of directors of MHFG, is composed of three outside directors
and one in-house director (the President & CEO of MHFG). The committee discusses basic policies in determining
the compensation of directors and executive officers of MHFG, MHBK, MHTB and MHSC, the compensation system,and the amounts of compensation, and the president & CEO of MHFG reports to the board of directors of MHFG andnotifies each of the above companies of the results of the Committee’s discussions. Based on the results ofdiscussions by the compensation committee of MHFG, each of the above companies, including MHFG, decides its
own policies in determining compensation for directors and executive officers, compensation systems, and amountsof compensation.
The compensation of corporate auditors is decided through discussion among corporate auditors within the scope ofthe total amount of corporate auditors’ compensation decided at our ordinary general meeting of shareholders.

Status of Capital Adequacy—68

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(2) Decisions on compensation of subject employees, etc.
Matters relating to executive officers of MHFG and directors, corporate auditors and executive officers of MHBK,MHTB and MHSC are as set out in (1) Decisions on compensation of subject directors and corporate auditors.
The compensation of subject employees, etc., is decided and paid in accordance with the salary and bonus systemestablished by MHFG and the major consolidated subsidiaries. Such system is designed and put into writing by thehuman resources departments of MHFG and the major consolidated subsidiaries which are independent of
departments furthering business. In terms of the compensation of overseas employees, each overseas office oroperation determines its own compensation policy based on local laws and regulations as well as employment
relationships.
3. Decisions on compensation of employees in risk management departments and compliance departments
The compensation of employees in risk management departments and compliance departments is decided inaccordance with the salary and bonus system, and specific payment amounts are conclusively determined in accordancewith employee performance evaluations made by the relevant department and the human resources department,
independent from departments furthering business. Each employee of the risk management departments and thecompliance departments sets their own items for evaluation in the employee performance evaluations, subject to theapproval of their superiors. The degree to which the items are fulfilled is evaluated taking into account the degree of theemployee's contribution to risk-management and compliance.
4. Total amount of compensation paid to members of the compensation committee and number of meetings held by thecompensation committee

Compensation Committee (Holding Company)

Number of meetings held (April 2013 – March 2014)
5

Note: The total amount of compensation is not set out above as it is not possible to separately calculate the amounts that are paid as consideration for the
execution of duties by the compensation committee(b) Evaluating the Appropriateness of the Design and Operation of the System Relating toCompensation of Subject Directors, Corporate Auditors, and Employees of Mizuho Group
1. Policies Relating to Compensation(1) Policies relating to compensation of subject directors and corporate auditors
Mizuho group has been endeavoring to ensure quality and stable revenue and to increase its corporate value while
fulfilling our social responsibilities and accomplishing our public mission. In addition, Mizuho group practices its“customer first policy”, and endeavors to provide customers worldwide with the highest quality financial services at all
times, with the aim of becoming “the most trusted financial services group with a global presence and a broadcustomer base, contributing to the prosperity of the world, Asia, and Japan”.
In determining the compensation for directors and corporate auditors of MHFG, our basic policy is to set anappropriate level based on business performance over the medium to long term, compensation levels of directors andcorporate auditors in other companies, including those in the same industry, economic and social conditions, as wellas the roles and responsibilities of directors and corporate auditors in contributing to the realization of our previously
mentioned objectives.
In addition, we have designed the compensation system with the aim of restraining excessive risk-taking andincreasing the consistency of the compensation scale of our directors and corporate auditors with the Mizuho group’s
goals.
The subjects of these compensation policies are directors and corporate auditors, and the policy for our directors isdetermined by a resolution of the board of directors of MHFG, while the policy for our corporate auditors is determinedby consultation among the corporate auditors of MHFG.
Further, MHFG, MHBK, MHTB and MHSC all have the same basic policies as described above.

69—Status of Capital Adequacy(2) Policies relating to compensation of subject employees, etc.
The policies relating to compensation for executive officers of MHFG, MHBK, MHTB and MHSC are also the same as
the policies described in (1) Policies relating to compensation of subject directors and corporate auditors above.
Compensation for other employees, etc., is determined in accordance with their duties and responsibilities. Somebonuses that are linked to performance are determined after comprehensively evaluating the employee’s contribution
to business, including any qualitative contributions to the organization, in a manner that does not place an excessiveemphasis on results.
2. The Effect of the Overall Level of Compensation, etc., on Equity Capital
The compensation committee of MHFG receives reports on the amount of compensation paid to directors and executive
officers of MHFG, MHBK, MHTB and MHSC in the previous fiscal year and confirms that there is no material effect on
the Mizuho group’s performance or the adequacy of equity capital.

(c) Compatibility between System for Compensation of Subject Directors, Corporate Auditors, andEmployees of Mizuho Group and Risk Management and Matters Relating to Linking Compensation
with Performance
If there are any decisions regarding the calculation method and payment amounts of performance-linked compensation
for directors and executive officers of any of MHFG, MHBK, MHTB and MHSC, we will take into account not only the
profits for the period but also the various risks according to each executive officer, including evaluating the businessresults based on the capital costs and credit costs attributable to the business handled and making adjustments based onother qualitative evaluations.
There is no system of performance-linked compensation for corporate auditors.
In addition, the compensation committee of MHFG receives reports on the compensation system, etc., from MHFG,MHBK, MHTB and MHSC as necessary in light of confirming the status of compliance with Japanese and overseas
regulations on compensation and provides its opinion to the companies above.

Status of Capital Adequacy—70

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy(17) Quantitative Disclosure Items(a)Matters Relating to Types and Total Amounts of, and Payment Method for, Compensation of Subject
Directors, Corporate Auditors, and Employees of Mizuho Group─Total Amount of the Compensation, etc., of Subject Directors, Corporate Auditors andEmployees─
Millions of yen

For the fiscal year ended March 31, 2014

Number of
Persons

Total Amount ofCompensation

Total Amount of
Fixed
Compensation

Base
Compensation

Stock
Compensationtype Stock
Options

OthersSubject Directors andCorporate Auditors (Excluding
Outside Directors and Outside
Corporate Auditors)
Subject Employees, etc.
Overseas Employees, etc.

14

¥641

¥641

¥495

¥143

¥2

177
146

15,38013,486

6,401
4,966

5,401
4,285

404
88

595
592

For the fiscal year ended March 31, 2014

Total Amount of
Variable
Compensation

Base
Compensation

Bonus

OthersRetirement Benefits

Others

¥-

¥-

¥-

¥-

¥-

¥-

8,734
8,297

-

8,675
8,239

58
58

-

188
167

Millions of yen

Subject Directors andCorporate Auditors (Excluding
Outside Directors and Outside
Corporate Auditors)
Subject Employees, etc.
Overseas Employees, etc.
Notes:

1. Amounts of compensation of subject directors and corporate auditors include amounts of compensation received for duties performed asa director or corporate auditor of a major consolidated subsidiary.
2. Total amount of fixed compensation includes ¥ 548 million of deferred compensation that arose during the fiscal year ended March 31,
2014 (subject directors and corporate auditors: ¥143 million; subject employees, etc. : ¥404 million). The amount of fixed compensation
deferred prior to the fiscal year ended March 31, 2014 and paid during the fiscal year ended March 31, 2014 was ¥406 million (subject
directors and corporate auditors: ¥187 million; subject employees, etc. : ¥219 million) and the outstanding amount of deferred fixedcompensation as of March 31, 2014 was ¥1,438 million (subject directors and corporate auditors: ¥479 million; subject employees, etc. :¥959 million).
3. Total amount of variable compensation includes ¥1, 464 million of deferred compensation that arose during the fiscal year ended March
31, 2014, all of which was for Subject Employees, etc., and could in the future be taken back in the event of poor business results or other
detrimental factors. The amount of variable compensation deferred prior to the fiscal year ended March 31, 2014 and paid during the
fiscal year ended March 31, 2014 was ¥820 million (subject employees, etc. : ¥820 million) and the outstanding amount of deferredvariable compensation as of March 31, 2014 was ¥2,756 million (subject employees, etc. : ¥2,756 million).
4. Total amount of compensation for subject employees, etc., includes ¥221 million of allowance for termination and resignation (number ofsubject persons: 6), multi-year guarantees of bonus of ¥270 million (number of subject persons: 3) and signing bonus of ¥127 million(number of subject persons: 4).
5. The exercise periods of the stock compensation-type stock options (stock acquisition rights) are as set out below. Under the stock option
agreements, exercise of the options is postponed, even during the exercise period, until the time of retirement of the director or employee.

First Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Second Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Third Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fourth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Fifth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.
Sixth Series of Stock Acquisition Rights of Mizuho Financial Group, Inc.

71—Status of Capital Adequacy

Exercise Period
from February 17, 2009 to February 16, 2029
from September 28, 2009 to September 25, 2029
from August 27, 2010 to August 26, 2030
from December 9, 2011 to December 8, 2031
from September 3, 2012 to August 31, 2032
from February 18, 2014 to February 17, 2034

(b) Other Relevant Matters Relating to Our System of Compensation for Subject Directors, Corporate
Auditors and Employees of Mizuho GroupMHFG has transformed into a Company with Committees from a Company with Board of Corporate Auditors in June 2014,and has established the statutory Compensation Committee. The Compensation Committee of MHFG shall determine thecompensation for each individual director and executive officer as defined in the Companies Act, of MHFG, exercise theapproval rights held by MHFG regarding compensation of each individual director of MHBK, MHTB and MHSC, anddetermine the basic policies and compensation system for directors and executive officers as defined in the Companies Act
or in our internal regulations of MHFG, MHBK, MHTB and MHSC.
The chairman of the Compensation Committee shall be an outside director, and in principle its members shall be appointed
from among the outside directors (or at least Non-Executive Directors) in order to ensure objectivity and transparency in thecompensation of directors and executive officers. All of four members of the Compensation Committee, including thechairman, are currently outside directors.

Status of Capital Adequacy—72

Status of Capital Adequacy

Status of Mizuho Financial Group’s Consolidated Capital Adequacy■ Indicators for assessing Global Systemically Important Banks (G-SIBs)
Billions of yen
Item
No.

1

2

3

4
5
6
7

8
9
10

Description

Total exposures(= a + b + c + d):a. Counterparty exposure of derivatives contracts
b. Gross value of securities financing transactions (SFTs) and counterparty
exposure of SFTs
c. Other assets (other than assets specifically identified above and regulatory
adjustments to Tier 1 and CET1 capital under the fully phased-in Basel III
framework)
d. Notional amount of off-balance sheet items (other than derivatives contracts and
SFTs )
Intra-financial system assets(= a + b + c + d):a. Funds deposited with or lent to other financial institutions and undrawn
committed lines extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a
net positive fair value
Intra-financial system liabilities(= a + b + c):a. Deposits due to, and undrawn committed lines obtained from, other financial
institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fairvalue
Securities outstanding(Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading(HFT) securities and available-for-sale(AFS) securities, excluding
HFT and AFS securities that meet the definition of Level 1 assets and Level 2
assets with haircuts (Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
Cross-jurisdictional liabilities

Item
No.

11
12
Notes:

Description

Payments (settled through the BOJ-NET, the Japanese Banks' Payment Clearing
Network and other similar settlement systems, excluding intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)

As of March 31, 2014

192,609.0

8,643.1

12,596.1

24,210.5
144,710.9
1,058,347.6
9,578.8
1,482.2
35,165.0
22,889.7
For the fiscal year ended
March 31, 2014

6,029,806.1
7,131.7

1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common
equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the U.S.GAAP.
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.

73—Status of Capital Adequacy