Trading account gains and losses

12 Months Ended

Mar. 31, 2020

Trading Account Gains And Losses [Abstract]

Trading account gains and losses

26. Trading account gains and losses

The MHFG Group performs trading activities through market making, sales, and arbitrage. Accordingly, Trading account gains (losses)—net include gains and losses from transactions undertaken for trading purposes, including both market making for customers and proprietary trading, or transactions through which the Group seeks to capture gains arising from short-term changes in market value. Trading account gains (losses)—net also include gains and losses related to changes in the fair value of derivatives and other financial instruments not eligible for hedge accounting under U.S. GAAP that are utilized to offset mainly interest rate risk related to the Group’s various assets and liabilities, as well as gains and losses related to changes in the fair value of foreign currency-denominated debt securities reported as Trading securities. Net trading gains (losses) for the fiscal years ended March 31, 2018, 2019 and 2020 are comprised of the following:

	2018			2019			2020
	(in millions of yen)
Trading account gains (losses)—net:
Trading securities		333,749			158,162			267,514
Derivative contracts:
Interest rate contracts		(63,260	)		127,242			388,289
Foreign exchange contracts(1)		61,046			6,748			(111,920	)
Equity-related contracts(2)		(98,807	)		37,875			217,744
Credit-related contracts(3)		(2,076	)		269			5,208
Other contracts		6,330			(1,455	)		(21,143	)
Total		236,982			328,841			745,692
Foreign exchange gains (losses)—net(4)		91,793			93,577			44,345
Net trading gains (losses)		328,775			422,418			790,037

Notes:

(1) Amounts include gains and losses on currency swaps.

(2) The net gains (losses) excluded from the assessment of the effectiveness of fair value hedges is included in the above table.

(3) Amounts do not include the net gains (losses) of ¥(754) million, ¥(736) million and ¥2,838 million on the credit derivatives economically managing the credit risk of loans during the fiscal years ended March 31, 2018, 2019 and 2020, respectively. The net gains (losses) is recorded in Other noninterest income (expenses).

(4) Amounts include realized and unrealized gains and losses on both derivative instruments and nonderivative instruments. Amounts on derivative instruments include gains and losses on forward foreign exchange contracts and currency options. Amounts on nonderivative instruments include translation gains and losses related to foreign currency-denominated debt securities reported as Trading securities.