UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2019

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    .

 

 

 

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

For Immediate Release:

 

		Consolidated Financial Statements for Fiscal 2018 <Under Japanese GAAP>

 

Company Name:		Mizuho Financial Group, Inc. (“MHFG”)		May 15, 2019

Stock Code Number (Japan):		8411
Stock Exchange Listings:		Tokyo Stock Exchange (First Section), New York Stock Exchange
URL:		https://www.mizuho-fg.com/index.html
Representative:		Tatsufumi Sakai		President & CEO
For Inquiry:		Tomomichi Fujita		General Manager of Accounting
Phone:		+81-3-6838-6101
Ordinary General Meeting of Shareholders (scheduled) :				June 21, 2019		Commencement of Dividend Payment (scheduled):		June 4, 2019
Filing of Yuka Shoken Hokokusho to the Kanto Local Finance Bureau (scheduled):				June 24, 2019		Trading Accounts: Established
Supplementary Materials on Annual Results:				Attached
IR Conference on Annual Results:				Scheduled
Amounts less than one million yen are rounded down.

1. Financial Highlights for Fiscal 2018 (for the fiscal year ended March 31, 2019)

(1) Consolidated Results of Operations

 

(%: Changes from the previous fiscal year)
		Ordinary Income								Ordinary Profits								Profit Attributable to Owners of Parent
		¥ million				%				¥ million				%				¥ million				%
Fiscal 2018			3,925,649				10.2				614,118				(21.5	)			96,566				(83.2	)
Fiscal 2017			3,561,125				8.1				782,447				6.0				576,547				(4.4	)

Note:		Comprehensive Income: Fiscal 2018: ¥ (110,542) million, (114.4)%; Fiscal 2017: ¥ 765,559 million, 37.1%

 

		Net Income per Share of Common Stock				Diluted Net Income per Share of Common Stock				Net Income on Own Capital				Ordinary Profits to Total Assets				Ordinary Profits to Ordinary Income
		¥				¥				%				%				%
Fiscal 2018			3.80				3.80				1.0				0.3				15.6
Fiscal 2017			22.72				22.72				6.5				0.3				21.9

Reference:		Equity in Income from Investments in Affiliates: Fiscal 2018: ¥ 51,215 million; Fiscal 2017: ¥ 21,474 million

(2) Consolidated Financial Conditions

 

		Total Assets				Total Net Assets				Own Capital Ratio				Total Net Assets per Share of Common Stock
		¥ million				¥ million				%				¥
Fiscal 2018			200,792,226				9,194,038				4.3				345.00
Fiscal 2017			205,028,300				9,821,246				4.4				357.41

Reference:		Own Capital: As of March 31, 2019: ¥ 8,748,805 million; As of March 31, 2018: ¥ 9,065,843 million

Note:		Own Capital Ratio is calculated as follows: (Total Net Assets - Stock Acquisition Rights - Non-controlling Interests) / Total Assets × 100
		Own Capital Ratio stated above is not calculated based on the public notice of Own Capital Ratio.

(3) Conditions of Consolidated Cash Flows

 

		Cash Flows from Operating Activities				Cash Flows from Investing Activities				Cash Flows from Financing Activities				Cash and Cash Equivalents at the end of the fiscal year
		¥ million				¥ million				¥ million				¥ million
Fiscal 2018			(2,636,096	)			5,487,153				(18,640	)			44,254,874
Fiscal 2017			2,966,701				(2,316,197	)			149,962				46,334,334

2. Cash Dividends for Shareholders of Common Stock

 

		Annual Cash Dividends per Share																				Total Cash Dividends (Total)				Dividends Pay-out Ratio (Consolidated basis)				Dividends on Net Assets (Consolidated basis)
		First quarter-end				Second quarter-end				Third quarter-end				Fiscal year-end				Annual
		¥				¥				¥				¥				¥				¥ million				%				%
Fiscal 2017			—				3.75				—				3.75				7.50				190,373				33.0				2.1
Fiscal 2018			—				3.75				—				3.75				7.50				190,395				197.3				2.1
Fiscal 2019 (estimate)			—				3.75				—				3.75				7.50								40.4

3. Consolidated Earnings Estimates for Fiscal 2019 (for the fiscal year ending March 31, 2020)

 

(%: Changes from the corresponding period of the previous fiscal year)
		Profit Attributable to Owners of Parent								Net Income per Share of Common Stock
		¥ million				%				¥
1H F2019			—				—				—
Fiscal 2019			470,000				386.7				18.52

Note:		The number of shares of common stock used in the above calculation is based on the number of outstanding shares of common stock as of March 31, 2019.

* Notes

(1) Changes in Significant Subsidiaries during the Fiscal Year (changes in specified subsidiaries accompanying changes in the scope of consolidation): No

(2) Changes in Accounting Policies and Accounting Estimates / Restatements

      ① Changes in accounting policies due to revisions of accounting standards, etc.: No

      ② Changes in accounting policies other than ① above: No

      ③ Changes in accounting estimates: No

      ④ Restatements: No

(3) Issued Shares of Common Stock

 

① Year-end issued shares            (including treasury stock):

As of March 31, 2019

25,392,498,945 shares

As of March 31, 2018

25,389,644,945 shares

② Year-end treasury stock:

As of March 31, 2019

33,962,404 shares

As of March 31, 2018

24,829,446 shares

③ Average number of outstanding shares:

Fiscal 2018

25,362,375,520 shares

Fiscal 2017

25,366,345,189 shares

This immediate release is outside the scope of the audit.

 

 

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. 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 maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of “One MIZUHO, ” and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on December 26, 2018, both of which are available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

 

 

Mizuho Financial Group, Inc.

 

m Contents of Attachment

 

1.		Overview of Consolidated Results of Operations and Financial Conditions			p.1-2
		(1) Overview of Results of Operations			p.1-2
		(2) Overview of Financial Conditions			p.1-3
		(3) Basic Policy on Profit Distribution, Dividend Payment for Fiscal 2018 and Dividend Estimates for Fiscal 2019			p.1-3
2.		Basic Stance on Selection of Accounting Standards			p.1-4
3.		Consolidated Financial Statements and Others			p.1-5
		(1) Consolidated Balance Sheets			p.1-5
		(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			p.1-7
		(3) Consolidated Statements of Changes in Net Assets			p.1-10
		(4) Consolidated Statements of Cash Flows			p.1-12
		(5) Notes regarding Consolidated Financial Statements			p.1-14
		(Matters Related to the Assumption of Going Concern)
		(Business Segment Information)
		(Per Share Information)
		(Subsequent Events)

[Note to XBRL]

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

An MHFG IR conference for institutional investors and analysts is scheduled for May 22, 2019 (Wednesday). The IR conference presentation materials and audio archive will be available for use by individual investors in the IR Information section of the Mizuho Financial Group HP immediately after the conference.

 

1-1

Mizuho Financial Group, Inc.

 

1. Overview of Consolidated Results of Operations and Financial Conditions

(1) Overview of Results of Operations

Reviewing the economic environment over the fiscal year ended March 31, 2019, the overall global economy continued on a path of gradual recovery driven by the steady expansion of U.S. economy. On the other hand, the Chinese and European economies showed a clear slowdown due to factors such as uncertainty related to the trade disputes between the United States and China.

In the United States, the economy continued its steady expansion as a result of tax cuts and fiscal expenditure. However, there was a downturn in business confidence in the manufacturing industry due primarily to the impact of the trade disputes with countries such as China. The unemployment rate remained low, and wage growth accelerated somewhat, and spillover effects on prices have yet to be observed. The Federal Reserve Board (FRB) also changed its stance regarding interest rates, from one with an inclination towards rate increases to a more wait-and-see stance, and announced their planned suspension of the shrinking of their balance sheet.

In Europe, the economy remained weak. Business confidence showed a clear downturn within mainly the manufacturing sector. The European Central Bank (ECB) suspended purchases of new assets but left its policy rate unchanged amid growing uncertainties such as Brexit*.

In Asia, the Chinese economy remained stagnant. In China, export growth slowed rapidly mainly due to the impact of trade disputes between the United States and China. Although the economies of emerging countries were continuing to recover, the risk of capital outflows remained in some countries with current account deficits due to concerns over U.S. trade policy and the Chinese economy.

In Japan, the economy continued to trend towards recovery but exports declined due to weak overseas economies and production was lacking strength. Consumer spending continued to remain on a moderate trend of recovery amid favorable employment conditions. The Bank of Japan continued its Quantitative and Qualitative Monetary Easing with Yield Curve Control measures with a view to achieving a price stability target of two percent but indicated that it will be difficult to achieve this target by the end of the 2020 fiscal year.

As to the prospects for the global economy, recovery is expected to continue to be centered on the United States, but close attention should be paid to growing uncertainties such as U.S. trade policy, the political concerns in Europe, the economic and market outlook for China and emerging countries and geopolitical risks in the Middle East.

Under the foregoing business environment, we recorded Consolidated Gross Profits of ¥1,812.7 billion for fiscal 2018, decreasing by ¥102.6 billion from the previous fiscal year.

Gross Profits of aggregate figures for Mizuho Bank, Ltd. and Mizuho Trust & Banking Co., Ltd. on a non-consolidated basis (on a non-consolidated aggregated basis of the banks) decreased by ¥96.1 billion on a year-on-year basis to ¥1,197.1 billion due to a decrease in Trading and Others mainly caused by the portfolio restructuring, moving to foreign bonds, to improve the investment portfolio. General and Administrative Expenses on a non-consolidated aggregated basis of the banks decreased by ¥15.3 billion on a year-on-year basis to ¥949.3 billion.

Net Operating Revenues on a consolidated basis of Mizuho Securities Co., Ltd. decreased by ¥22.1 billion on a year-on-year basis to ¥283.8 billion due to a decrease in Net Gain on Trading and other factors.

Selling, General and Administrative Expenses on a consolidated basis of Mizuho Securities Co., Ltd. decreased by ¥0.7 billion on a year-on-year basis to ¥262.6 billion.

As a result, Consolidated Net Business Profits decreased by ¥64.4 billion on a year-on-year basis to ¥393.3 billion.

Consolidated Net Business Profits + Net gains or losses related to ETFs and others that consist of Consolidated Net Business Profits, Net gains or losses related to ETFs and others on a non-consolidated aggregated basis of the banks, and Net gains or losses related to operating investment securities on a consolidated basis of Mizuho Securities Co., Ltd. decreased by ¥129.6 billion on a year-on-year basis to ¥408.3 billion.

Credit-related Costs was an expense of ¥19.5 billion.

Net Gains (Losses) related to Stocks increased by ¥2.8 billion on a year-on-year basis to net gains of ¥274.8 billion.

As a result, Ordinary Income decreased by ¥168.3 billion on a year-on-year basis to ¥614.1 billion.

Extraordinary Gains (Losses) decreased by ¥515.3 billion on a year-on-year basis to net losses of ¥497.8 billion due to recording of losses in light of structural reform.

Tax-related Expenses decreased by ¥194.1 billion on a year-on-year basis to ¥(2.5) billion due to recording of deferred income taxes of ¥(163.8) billion, while current income taxes of ¥161.3 billion was recorded.

As a result, Profit Attributable to Owners of Parent for fiscal 2018 decreased by ¥479.9 billion on a year-on-year basis to ¥96.5 billion.

 

1-2

Mizuho Financial Group, Inc.

 

As for earnings estimates for fiscal 2019, we estimate Ordinary Profits of ¥700.0 billion and Profit Attributable to Owners of Parent of ¥470.0 billion on a consolidated basis.

*The United Kingdom’s withdrawal from the European Union.

(2) Overview of Financial Conditions

Consolidated total assets as of March 31, 2019 amounted to ¥200,792.2 billion, decreasing by ¥4,236.0 billion from the end of the previous fiscal year mainly due to a decrease in Securities.

Securities were ¥29,774.4 billion, decreasing by ¥4,408.5 billion from the end of the previous fiscal year.

Loans and Bills Discounted amounted to ¥78,456.9 billion, decreasing by ¥964.5 billion from the end of the previous fiscal year.

Deposits and Negotiable Certificates of Deposit amounted to ¥137,649.5 billion, increasing by ¥1,185.7 billion from the end of the previous fiscal year.

Net Assets amounted to ¥9,194.0 billion, decreasing by ¥627.2 billion from the end of the previous fiscal year. Shareholders’ Equity was ¥7,303.0 billion, Accumulated Other Comprehensive Income was ¥1,445.7 billion, and Non-controlling Interests was ¥444.5 billion.

Net Cash Used in Operating Activities was ¥2,636.0 billion mainly due to increased call loans. Net Cash Provided by Investing Activities was ¥5,487.1 billion mainly due to purchase, sale, and redemption of securities and Net Cash Used in Financing Activities was ¥18.6 billion mainly due to repayments to non-controlling shareholders and cash dividends paid.

As a result, Cash and Cash Equivalents as of March 31, 2019 was ¥44,254.8 billion.

(3) Basic Policy on Profit Distribution, Dividend Payment for Fiscal 2018 and Dividend Estimates for Fiscal 2019

We have been implementing disciplined capital management by pursuing the optimum balance between strengthening of stable capital base and steady returns to shareholders.

As for our policy to return profits to shareholders for fiscal 2018, we have implemented a steady dividend payout policy setting a dividend payout ratio on a consolidated basis of approximately 30% as a guide for our consideration.

Based on this policy, we have decided to make cash dividend payments on common stock of ¥3.75 as year-end dividends for fiscal 2018 (annual cash dividends of ¥7.50 including interim dividends of ¥3.75) as predicted in Dividend Estimates for Fiscal 2018.

The board of directors has considered thoroughly and decided to retain cash dividend payments on common stock of ¥7.50 as annual dividends for fiscal 2018, although Profit Attributable to Owners of Parent for fiscal 2018 amounted to ¥96.5 billion and was greatly decreased compared to fiscal 2017 as a result of recording losses in light of structural reform. To make such decision, the board of directors has considered that Consolidated Common Equity Tier 1 ratio (excluding Net Unrealized Gains on Other Securities on a BaselIII fully-implemented basis (under the current regulations)), which is the foundation of fulfilling stable financial functions, is higher than the target of the medium-term business plan formulated for the three years from fiscal 2016, i.e., 10% as of March 31, 2019, and that we aim to implement a steady dividend payout policy, and has taken into account our business environment comprehensively such as future earnings forecasts, profit base, status of capital adequacy, and domestic and international regulation trends such as the Basel framework.

 

Common Stock		¥	3.75 per share			(as predicted in Dividend Estimates for Fiscal 2018)
Annual cash dividends including interim dividends		¥	7.50 per share			(as predicted in Dividend Estimates for Fiscal 2018)

Furthermore, in accordance with the Articles of Incorporation, we decide distribution of dividends from surplus not by the resolution at the general meeting of shareholders but by the resolution at the board of directors unless otherwise stipulated by laws and regulations. We have decided the year-end cash dividend payments on common stock for fiscal 2019 at the board of directors held today.

 

1-3

Mizuho Financial Group, Inc.

 

For fiscal 2019, we continue to perform disciplined capital management by pursuing the optimum balance between strengthening of stable capital base and steady returns to shareholders. The board of directors has considered thoroughly based on the new business plan formulated for the five years starting from fiscal 2019, and consequently we set a new policy to return profits to shareholders through which we are maintaining the current level of dividends for the time being while aiming to strengthen our capital base further to enhance returns to shareholders at an early stage. We will comprehensively consider the business environment such as the Group’s business results, profit base, status of capital adequacy, and domestic and international regulation trends such as the Basel framework in determining returns to shareholders for each period.

Based on this policy, as for the dividend estimates of common stock for fiscal 2019, we predict cash dividend payments of ¥7.50 per share of common stock, which is the same as fiscal 2018. We intend to continue payments of cash dividends at the interim period to return profits to shareholders in a timely manner.

 

(Dividend Estimates for Fiscal 2019)
Common Stock		Cash Dividends per Share		¥	7.50
		of which Interim Dividends		¥	3.75

2. Basic Stance on Selection of Accounting Standards

MHFG prepares its consolidated financial statements in accordance with Japanese Generally Accepted Accounting Principles. With respect to International Financial Reporting Standards (IFRS), in light of possible adoption in the future, MHFG is continuing research and study on the situation in Japan and Overseas and/or the development of IFRS.

 

1-4

Mizuho Financial Group, Inc.

 

3. Consolidated Financial Statements and Others

(1) Consolidated Balance Sheets

 

		Millions of yen
		As of March 31, 2018				As of March 31, 2019
Assets
Cash and Due from Banks		¥	47,725,360			¥	45,108,602
Call Loans and Bills Purchased			715,149				648,254
Receivables under Resale Agreements			8,080,873				12,997,628
Guarantee Deposits Paid under Securities Borrowing Transactions			4,350,527				2,578,133
Other Debt Purchased			2,713,742				2,828,959
Trading Assets			10,507,133				12,043,608
Money Held in Trust			337,429				351,889
Securities			34,183,033				29,774,489
Loans and Bills Discounted			79,421,473				78,456,935
Foreign Exchange Assets			1,941,677				1,993,668
Derivatives other than for Trading Assets			1,807,999				1,328,227
Other Assets			4,588,484				4,229,589
Tangible Fixed Assets			1,111,128				1,037,006
Buildings			341,533				287,634
Land			628,836				614,851
Lease Assets			25,468				22,557
Construction in Progress			24,975				36,300
Other Tangible Fixed Assets			90,314				75,661
Intangible Fixed Assets			1,092,708				620,231
Software			285,284				161,364
Goodwill			70,515				65,495
Lease Assets			17,756				5,839
Other Intangible Fixed Assets			719,152				387,532
Net Defined Benefit Asset			996,173				982,804
Deferred Tax Assets			47,839				37,960
Customers’ Liabilities for Acceptances and Guarantees			5,723,186				6,062,053
Reserves for Possible Losses on Loans			(315,621	)			(287,815	)
Total Assets		¥	205,028,300			¥	200,792,226

 

1-5

Mizuho Financial Group, Inc.

 

		Millions of yen
		As of March 31, 2018				As of March 31, 2019
Liabilities
Deposits		¥	125,081,233			¥	124,311,025
Negotiable Certificates of Deposit			11,382,590				13,338,571
Call Money and Bills Sold			2,105,293				2,841,931
Payables under Repurchase Agreements			16,656,828				14,640,439
Guarantee Deposits Received under Securities Lending Transactions			1,566,833				1,484,584
Commercial Paper			710,391				941,181
Trading Liabilities			8,121,543				8,325,520
Borrowed Money			4,896,218				3,061,504
Foreign Exchange Liabilities			445,804				669,578
Short-term Bonds			362,185				355,539
Bonds and Notes			7,544,256				8,351,071
Due to Trust Accounts			4,733,131				1,102,073
Derivatives other than for Trading Liabilities			1,514,483				1,165,602
Other Liabilities			3,685,585				4,512,325
Reserve for Bonus Payments			66,872				68,117
Reserve for Variable Compensation			3,242				2,867
Net Defined Benefit Liability			58,890				60,873
Reserve for Director and Corporate Auditor Retirement Benefits			1,460				1,389
Reserve for Possible Losses on Sales of Loans			1,075				630
Reserve for Contingencies			5,622				4,910
Reserve for Reimbursement of Deposits			20,011				19,068
Reserve for Reimbursement of Debentures			30,760				25,566
Reserves under Special Laws			2,361				2,473
Deferred Tax Liabilities			421,002				185,974
Deferred Tax Liabilities for Revaluation Reserve for Land			66,186				63,315
Acceptances and Guarantees			5,723,186				6,062,053
Total Liabilities		¥	195,207,054			¥	191,598,188
Net Assets
Common Stock		¥	2,256,548			¥	2,256,767
Capital Surplus			1,134,922				1,138,449
Retained Earnings			4,002,835				3,915,521
Treasury Stock			(5,997	)			(7,703	)
Total Shareholders’ Equity			7,388,309				7,303,034
Net Unrealized Gains (Losses) on Other Securities			1,392,392				1,186,401
Deferred Gains or Losses on Hedges			(67,578	)			(22,282	)
Revaluation Reserve for Land			144,277				137,772
Foreign Currency Translation Adjustments			(85,094	)			(111,057	)
Remeasurements of Defined Benefit Plans			293,536				254,936
Total Accumulated Other Comprehensive Income			1,677,534				1,445,770
Stock Acquisition Rights			1,163				707
Non-controlling Interests			754,239				444,525
Total Net Assets			9,821,246				9,194,038
Total Liabilities and Net Assets		¥	205,028,300			¥	200,792,226

 

1-6

Mizuho Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

[Consolidated Statements of Income]

 

		Millions of yen
		For the fiscal year ended March 31, 2018				For the fiscal year ended March 31, 2019
Ordinary Income		¥	3,561,125			¥	3,925,649
Interest Income			1,622,354				2,056,327
Interest on Loans and Bills Discounted			999,385				1,253,970
Interest and Dividends on Securities			282,801				302,768
Interest on Call Loans and Bills Purchased			5,569				5,510
Interest on Receivables under Resale Agreements			127,923				229,637
Interest on Securities Borrowing Transactions			17,172				25,081
Interest on Due from Banks			119,839				123,545
Other Interest Income			69,662				115,813
Fiduciary Income			55,400				55,153
Fee and Commission Income			766,612				765,977
Trading Income			276,616				299,355
Other Operating Income			304,214				312,815
Other Ordinary Income			535,927				436,019
Gains on Reversal of Reserves for Possible Losses on Loans			159,062				4,357
Recovery of Written-off Claims			12,203				10,395
Other			364,660				421,266
Ordinary Expenses			2,778,677				3,311,531
Interest Expenses			814,988				1,293,846
Interest on Deposits			308,018				480,593
Interest on Negotiable Certificates of Deposit			65,532				129,752
Interest on Call Money and Bills Sold			4,995				11,030
Interest on Payables under Repurchase Agreements			230,554				374,524
Interest on Securities Lending Transactions			5,500				7,292
Interest on Commercial Paper			8,284				19,304
Interest on Borrowed Money			28,285				35,522
Interest on Short-term Bonds			114				28
Interest on Bonds and Notes			142,770				172,811
Other Interest Expenses			20,932				62,986
Fee and Commission Expenses			152,262				155,550
Trading Expenses			829				1,987
Other Operating Expenses			141,760				225,509
General and Administrative Expenses			1,488,973				1,430,850
Other Ordinary Expenses			179,863				203,788
Ordinary Profits		¥	782,447			¥	614,118

 

1-7

Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2018				For the fiscal year ended March 31, 2019
Extraordinary Gains		¥	29,756			¥	11,280
Gains on Disposition of Fixed Assets			3,723				3,438
Other Extraordinary Gains			26,032				7,841
Extraordinary Losses			12,250				509,138
Losses on Disposition of Fixed Assets			5,219				5,414
Losses on Impairment of Fixed Assets			6,960				503,612
Other Extraordinary Losses			70				112
Income before Income Taxes			799,953				116,259
Income Taxes:
Current			190,158				161,376
Deferred			1,469				(163,879	)
Total Income Taxes			191,627				(2,502	)
Profit			608,326				118,762
Profit Attributable to Non-controlling Interests			31,778				22,196
Profit Attributable to Owners of Parent		¥	576,547			¥	96,566

 

1-8

Mizuho Financial Group, Inc.

 

[Consolidated Statements of Comprehensive Income]

 

		Millions of yen
		For the fiscal year ended March 31, 2018				For the fiscal year ended March 31, 2019
Profit		¥	608,326			¥	118,762
Other Comprehensive Income			157,233				(229,304	)
Net Unrealized Gains (Losses) on Other Securities			102,332				(207,505	)
Deferred Gains or Losses on Hedges			(77,205	)			45,391
Revaluation Reserve for Land			(133	)			—
Foreign Currency Translation Adjustments			(10,949	)			(23,882	)
Remeasurements of Defined Benefit Plans			149,473				(35,577	)
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method			(6,284	)			(7,730	)
Comprehensive Income			765,559				(110,542	)
(Breakdown)
Comprehensive Income Attributable to Owners of Parent			734,303				(128,692	)
Comprehensive Income Attributable to Non-controlling Interests			31,255				18,150

 

1-9

Mizuho Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2018

 

		Millions of yen
		Shareholders’ Equity
		Common Stock				Capital Surplus				Retained Earnings				Treasury Stock				Total Shareholders’ Equity
Balance as of the beginning of the period			2,256,275				1,134,416				3,615,449				(4,849	)			7,001,291
Changes during the period
Issuance of New Shares			273				273												546
Cash Dividends											(190,360	)							(190,360	)
Profit Attributable to Owners of Parent											576,547								576,547
Repurchase of Treasury Stock															(2,431	)			(2,431	)
Disposition of Treasury Stock							(53	)							1,283				1,229
Transfer from Revaluation Reserve for Land											1,198								1,198
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders							287												287
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			273				506				387,385				(1,148	)			387,017
Balance as of the end of the period			2,256,548				1,134,922				4,002,835				(5,997	)			7,388,309

 

		Accumulated Other Comprehensive Income
		Net Unrealized Gains (Losses) on Other Securities				Deferred Gains or Losses on Hedges				Revaluation Reserve for Land				Foreign Currency Translation Adjustments				Remeasurements of Defined Benefit Plans				Total Accumulated Other Comprehensive Income				Stock Acquisition Rights				Non- Controlling Interests				Total Net Assets
Balance as of the beginning of the period			1,289,985				10,172				145,609				(69,657	)			144,866				1,520,976				1,754				749,339				9,273,361
Changes during the period
Issuance of New Shares																																			546
Cash Dividends																																			(190,360	)
Profit Attributable to Owners of Parent																																			576,547
Repurchase of Treasury Stock																																			(2,431	)
Disposition of Treasury Stock																																			1,229
Transfer from Revaluation Reserve for Land																																			1,198
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders																																			287
Net Changes in Items other than Shareholders’ Equity			102,407				(77,750	)			(1,331	)			(15,437	)			148,670				156,558				(590	)			4,899				160,867
Total Changes during the period			102,407				(77,750	)			(1,331	)			(15,437	)			148,670				156,558				(590	)			4,899				547,884
Balance as of the end of the period			1,392,392				(67,578	)			144,277				(85,094	)			293,536				1,677,534				1,163				754,239				9,821,246

 

1-10

Mizuho Financial Group, Inc.

 

For the fiscal year ended March 31, 2019

 

		Millions of yen
		Shareholders’ Equity
		Common Stock				Capital Surplus				Retained Earnings				Treasury Stock				Total Shareholders’ Equity
Balance as of the beginning of the period			2,256,548				1,134,922				4,002,835				(5,997	)			7,388,309
Changes during the period
Issuance of New Shares			218				218												437
Cash Dividends											(190,384	)							(190,384	)
Profit Attributable to Owners of Parent											96,566								96,566
Repurchase of Treasury Stock															(3,001	)			(3,001	)
Disposition of Treasury Stock							(23	)							1,295				1,271
Transfer from Revaluation Reserve for Land											6,504								6,504
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders							3,331												3,331
Net Changes in Items other than Shareholders’ Equity
Total Changes during the period			218				3,526				(87,313	)			(1,706	)			(85,274	)
Balance as of the end of the period			2,256,767				1,138,449				3,915,521				(7,703	)			7,303,034

 

		Accumulated Other Comprehensive Income
		Net Unrealized Gains (Losses) on Other Securities				Deferred Gains or Losses on Hedges				Revaluation Reserve for Land				Foreign Currency Translation Adjustments				Remeasurements of Defined Benefit Plans				Total Accumulated Other Comprehensive Income				Stock Acquisition Rights				Non- Controlling Interests				Total Net Assets
Balance as of the beginning of the period			1,392,392				(67,578	)			144,277				(85,094	)			293,536				1,677,534				1,163				754,239				9,821,246
Changes during the period
Issuance of New Shares																																			437
Cash Dividends																																			(190,384	)
Profit Attributable to Owners of Parent																																			96,566
Repurchase of Treasury Stock																																			(3,001	)
Disposition of Treasury Stock																																			1,271
Transfer from Revaluation Reserve for Land																																			6,504
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders																																			3,331
Net Changes in Items other than Shareholders’ Equity			(205,990	)			45,295				(6,504	)			(25,963	)			(38,600	)			(231,763	)			(456	)			(309,713	)			(541,934	)
Total Changes during the period			(205,990	)			45,295				(6,504	)			(25,963	)			(38,600	)			(231,763	)			(456	)			(309,713	)			(627,208	)
Balance as of the end of the period			1,186,401				(22,282	)			137,772				(111,057	)			254,936				1,445,770				707				444,525				9,194,038

 

1-11

Mizuho Financial Group, Inc.

 

(4) Consolidated Statements of Cash Flows

 

		Millions of yen
		For the fiscal year ended March 31, 2018				For the fiscal year ended March 31, 2019
Cash Flow from Operating Activities
Income before Income Taxes		¥	799,953							¥	116,259
Depreciation			173,660								168,200
Losses on Impairment of Fixed Assets			6,960								503,612
Amortization of Goodwill			4,154								4,080
Equity in Loss (Gain) from Investments in Affiliates			(21,474	)							(51,215	)
Increase (Decrease) in Reserves for Possible Losses on Loans			(194,197	)							(26,910	)
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans			777								(444	)
Increase (Decrease) in Reserve for Contingencies			207								183
Increase (Decrease) in Reserve for Bonus Payments			(18	)							591
Increase (Decrease) in Reserve for Variable Compensation			223								(375	)
Decrease (Increase) in Net Defined Benefit Asset			(24,803	)							(57,863	)
Increase (Decrease) in Net Defined Benefit Liability			3,756								2,497
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits			175								(41	)
Increase (Decrease) in Reserve for Reimbursement of Deposits			939								(942	)
Increase (Decrease) in Reserve for Reimbursement of Debentures			(1,959	)							(5,194	)
Interest Income—accrual basis			(1,622,354	)							(2,056,327	)
Interest Expenses—accrual basis			814,988								1,293,846
Losses (Gains) on Securities			(263,312	)							(195,755	)
Losses (Gains) on Money Held in Trust			(139	)							(40	)
Foreign Exchange Losses (Gains)—net			229,892								(170,422	)
Losses (Gains) on Disposition of Fixed Assets			1,495								1,976
Losses (Gains) on Cancellation of Employee Retirement Benefit Trust			(26,032	)							(7,841	)
Decrease (Increase) in Trading Assets			(132,951	)							(1,536,520	)
Increase (Decrease) in Trading Liabilities			154,664								227,455
Decrease (Increase) in Derivatives other than for Trading Assets			354,027								485,333
Increase (Decrease) in Derivatives other than for Trading Liabilities			(260,185	)							(355,068	)
Decrease (Increase) in Loans and Bills Discounted			(1,431,302	)							(2,407,594	)
Increase (Decrease) in Deposits			5,305,719								927,918
Increase (Decrease) in Negotiable Certificates of Deposit			865,593								1,878,841
Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)			(1,371,484	)							(1,800,307	)
Decrease (Increase) in Due from Banks (excluding Due from Central Banks)			(9,678	)							611,070
Decrease (Increase) in Call Loans, etc.			1,030,590								(4,807,554	)
Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions			(1,000,475	)							1,772,393
Increase (Decrease) in Call Money, etc.			122,103								1,748,141
Increase (Decrease) in Commercial Paper			(37,576	)							199,104
Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions			(112,466	)							(82,249	)
Decrease (Increase) in Foreign Exchange Assets			(141,992	)							(34,376	)
Increase (Decrease) in Foreign Exchange Liabilities			(80,565	)							223,848
Increase (Decrease) in Short-term Bonds (Liabilities)			135,837								(6,646	)
Increase (Decrease) in Bonds and Notes			(411,073	)							286,158
Increase (Decrease) in Due to Trust Accounts			(50,946	)							(10,232	)
Interest and Dividend Income—cash basis			1,602,227								2,027,241
Interest Expenses—cash basis			(797,725	)							(1,250,247	)
Other—net			(475,640	)							(75,059	)
Subtotal			3,139,593								(2,460,479	)
Cash Refunded (Paid) in Income Taxes			(172,892	)							(175,617	)
Net Cash Provided by (Used in) Operating Activities			2,966,701								(2,636,096	)

 

1-12

Mizuho Financial Group, Inc.

 

		Millions of yen
		For the fiscal year ended March 31, 2018				For the fiscal year ended March 31, 2019
Cash Flow from Investing Activities
Payments for Purchase of Securities			(60,973,137	)							(52,363,143	)
Proceeds from Sale of Securities			42,292,827								38,799,373
Proceeds from Redemption of Securities			16,679,426								19,211,836
Payments for Increase in Money Held in Trust			(155,042	)							(109,630	)
Proceeds from Decrease in Money Held in Trust			61,626								94,984
Payments for Purchase of Tangible Fixed Assets			(57,974	)							(42,703	)
Payments for Purchase of Intangible Fixed Assets			(181,647	)							(111,595	)
Proceeds from Sale of Tangible Fixed Assets			16,385								7,811
Proceeds from Sale of Intangible Fixed Assets			0								—
Proceeds from Sales of Stocks of Subsidiaries (affecting the scope of consolidation)			1,337								219
Net Cash Provided by (Used in) Investing Activities			(2,316,197	)							5,487,153
Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money			35,000								10,000
Repayments of Subordinated Borrowed Money			(69,000	)							(45,000	)
Proceeds from Issuance of Subordinated Bonds			574,000								510,000
Payments for Redemption of Subordinated Bonds			(172,600	)							(5,000	)
Proceeds from Issuance of Common Stock			3								2
Proceeds from Investments by Non-controlling Shareholders			1,450								3,514
Repayments to Non-controlling Shareholders			(1,065	)							(275,079	)
Cash Dividends Paid			(190,382	)							(190,413	)
Cash Dividends Paid to Non-controlling Shareholders			(25,832	)							(25,494	)
Payments for Repurchase of Treasury Stock			(1,611	)							(2,124	)
Proceeds from Sale of Treasury Stock			0								952
Net Cash Provided by (Used in) Financing Activities			149,962								(18,640	)
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents			10,203								(32,656	)
Net Increase (Decrease) in Cash and Cash Equivalents			810,670								2,799,759
Cash and Cash Equivalents at the beginning of the fiscal year			45,523,663								46,334,334
Decrease in Cash and Cash Equivalents resulting from Exclusion of Subsidiaries from Consolidation			—								(4,879,218	)
Cash and Cash Equivalents at the end of the fiscal year		¥	46,334,334							¥	44,254,874

 

1-13

Mizuho Financial Group, Inc.

 

(5) Notes regarding Consolidated Financial Statements

(Matters Related to the Assumption of Going Concern)

There is no applicable information.

(Business Segment Information)

1. Summary of reportable segment

MHFG has introduced an in-house company system based on the group’s diverse customer segments.

The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.

Specifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

The services that each in-house company is in charge of are as follows:

Retail & Business Banking Company:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Corporate & Institutional Company:

Services for large corporations, financial institutions and public corporations in Japan

Global Corporate Company:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Global Markets Company:

Investment services with respect to interest rates, equities and credits, etc., and other services

Asset Management Company:

Development of products and provision of services that match the asset management needs of its wide range of customers from individuals to institutional investors

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments.

Management measures the performance of each of the operating segments in accordance with internal managerial accounting rules and practices.

2. Calculating method of Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others, 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) + Net gains or losses related to ETFs and others, and Fixed 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) + Net gains or losses related to ETFs and others is the total amount of Interest Income, Fiduciary Income, Fee and Commission Income, Trading Income, Other Operating Income, and Net gains or losses related to ETFs and others.

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) + Net gains or losses related to ETFs and others is the amount of which General and administrative expenses (excluding non-recurring expenses and others), Equity in income from investments in affiliates, Amortization of goodwill and others (including amortization of intangible assets), and Others (consolidation adjustments) are deducted from, or added to, Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others.

Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others relating to transactions between segments is based on the current market price.

 

1-14

Mizuho Financial Group, Inc.

 

Fixed assets disclosed as asset information by segment are the total amount of tangible fixed assets and intangible fixed assets. Fixed assets pertaining to Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. have been allocated to each segment.

3. Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others, 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) + Net gains or losses related to ETFs and others, and Fixed assets by reportable segment

 

		Millions of yen
		MHFG (Consolidated)
		Retail & Business Banking Company				Corporate & Institutional Company				Global Corporate Company				Global Markets Company				Asset Management Company				Others (Note 2)
Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others			707,151				473,809				416,096				192,048				49,657				(11,039	)			1,827,721
General and administrative expenses (excluding Non-Recurring Losses and others)			713,735				198,135				251,877				203,349				27,232				46,278				1,440,606
Equity in income from investments in affiliates			18,130				872				7,348				—				1,280				23,585				51,215
Amortization of goodwill and others			363				425				369				2,346				8,000				2,067				13,570
Others			—				—				—				—				—				(16,386	)			(16,386	)
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) + Net gains or losses related to ETFs and others			11,183				276,121				171,198				(13,647	)			15,705				(52,186	)			408,373
Fixed assets			499,314				225,821				176,921				92,608				111				662,462				1,657,237

 

(Notes) 1.		Gross profits (excluding the amounts of credit costs of trust accounts) +Net gains or losses related to ETFs and others is reported instead of sales reported by general corporations. Net gains or losses related to ETFs and others amounted to ¥ 14,984 million, of which ¥ 7,280 million is included in the Global Markets Company.
2.		“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3.		Fixed assets have been allocated to each segment to enhance the sophistication of management accounting capabilities from the fiscal year ended March 31, 2019.
4.		“Others” in Fixed assets includes assets of headquarters that have not been allocated to each segment, Fixed assets pertaining to consolidated subsidiaries that are not subject to allocation, consolidated adjustments, and others. Among Fixed assets that have not been allocated to each segment, some related expenses are allocated to each segment using the reasonable criteria of allocation.

 

1-15