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 January 2018

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-                    .

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.

Date:	January 30, 2018
Mizuho Financial Group, Inc.
By:	/s/ Makoto Umemiya
Name:	Makoto Umemiya
Title:	Managing Executive Officer / Group CFO

The following is the English translation of excerpt regarding the Basel Pillar 3 disclosures and the relevant information from our Japanese language disclosure material published in January 2018.

The Japanese regulatory disclosure requirements are fulfilled with the Basel Pillar 3 disclosures and Japanese GAAP is applied to the relevant financial information.

In this report, “we,” “us,” and “our” refer to Mizuho Financial Group, Inc. and, unless the context indicates otherwise, its consolidated subsidiaries. “Mizuho Financial Group” refers to Mizuho Financial Group, Inc.

Status of Capital Adequacy

Capital adequacy requirement highlights	2
∎     Capital adequacy ratio	2
∎     Risk weighted assets	4
Status of Mizuho Financial Group’s consolidated capital adequacy	5
∎     Scope of consolidation	5
(1)    Scope of consolidation for calculating consolidated capital adequacy ratio
∎     Composition of capital	6
(2)    Composition of capital, etc.
∎     Risk-based capital	18
(3)    Required capital by portfolio classification
∎     Credit risk	20
(4)    Credit risk exposure, etc.
∎     Methods for credit risk mitigation	37
(5)    Credit risk mitigation by portfolio classification
∎      Counterparty risk in derivatives transactions and long-settlement transactions	39
(6)    Status of counterparty risk in derivatives transactions and long-settlement transactions
∎     Securitization exposure	41
(7)    Quantitative disclosure items for securitization exposure
∎     Market risk	56
∎     Equity exposure in banking book	58
(8)    Status of equity exposure in banking book
∎     Composition of Leverage Ratio	60

Status of Sound Management of Liquidity Risk

Liquidity Coverage Ratio	61
Status of Major Liquid Assets	64

1

Capital adequacy requirement 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.).

With respect to the calculation of capital adequacy ratio, we have applied the international standard and 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 the operational risk.

∎ Capital adequacy ratio

(1) Summary of capital adequacy ratio

Mizuho Financial Group (Consolidated)
	(Billions of yen)
	As of September 30, 2016			As of September 30, 2017
Total capital ratio (International standard)		15.84	%		17.74	%
Tier 1 capital ratio		12.94	%		14.59	%
Common equity Tier 1 capital ratio		10.98	%		11.80	%
Total capital		9,767.8			10,946.6
Tier 1 capital		7,982.5			9,004.8
Common equity Tier 1 capital		6,769.3			7,280.5
Risk weighted assets		61,648.4			61,695.5
Credit risk		56,576.9			56,082.3
Market risk		1,917.2			2,239.7
Operational risk		3,154.3			3,373.3
Mizuho Bank (Consolidated)
	(Billions of yen)
	As of September 30, 2016			As of September 30, 2017
Total capital ratio (International standard)		16.01	%		18.16	%
Tier 1 capital ratio		13.22	%		14.87	%
Common equity Tier 1 capital ratio		11.02	%		11.76	%
Total capital		9,012.1			10,192.5
Tier 1 capital		7,440.1			8,348.6
Common equity Tier 1 capital		6,202.3			6,603.6
Risk weighted assets		56,261.3			56,107.0
Credit risk		53,098.7			52,159.2
Market risk		878.1			1,474.7
Operational risk		2,284.4			2,473.0
Mizuho Bank (Non-Consolidated)
	(Billions of yen)
	As of September 30, 2016			As of September 30, 2017
Total capital ratio (International standard)		16.37	%		18.52	%
Tier 1 capital ratio		13.39	%		15.08	%
Common equity Tier 1 capital ratio		11.06	%		11.81	%
Total capital		8,846.2			9,948.9
Tier 1 capital		7,238.5			8,101.0
Common equity Tier 1 capital		5,976.5			6,347.4
Risk weighted assets		54,032.8			53,719.6
Credit risk		51,520.2			50,759.4
Market risk		627.9			921.5
Operational risk		1,884.6			2,038.7

2

Mizuho Trust & Banking (Consolidated)
	(Billions of yen)
	As of September 30, 2016			As of September 30, 2017
Total capital ratio (International standard)		19.95	%		20.68	%
Tier 1 capital ratio		18.80	%		19.95	%
Common equity Tier 1 capital ratio		18.80	%		19.95	%
Total capital		479.1			504.5
Tier 1 capital		451.6			486.7
Common equity Tier 1 capital		451.6			486.7
Risk weighted assets		2,401.3			2,438.7
Credit risk		2,125.7			2,163.4
Market risk		13.0			9.5
Operational risk		262.5			265.8
Mizuho Trust & Banking (Non-consolidated)
	(Billions of yen)
	As of September 30, 2016			As of September 30, 2017
Total capital ratio (International standard)		20.16	%		20.99	%
Tier 1 capital ratio		19.05	%		20.28	%
Common equity Tier 1 capital ratio		19.05	%		20.28	%
Total capital		488.5			511.3
Tier 1 capital		461.6			494.0
Common equity Tier 1 capital		461.6			494.0
Risk weighted assets		2,422.8			2,435.8
Credit risk		2,184.4			2,201.2
Market risk		11.3			8.1
Operational risk		227.1			226.4

3

∎ Risk weighted assets

(1) Credit risk weighted assets by asset class and ratings segment

Mizuho Financial Group (Consolidated)

	(Billions of yen)
	As of September 30, 2016						As of September 30, 2017
	EAD		Credit risk weighted assets		Risk Weight(%)		EAD		Credit risk weighted assets		Risk Weight(%)
Internal ratings-based approach		184,252.0		49,590.8		26.91		188,644.2		50,102.5		26.55
Corporate, etc.		159,867.8		31,109.7		19.45		163,110.6		30,839.0		18.90
Corporate (except specialized lending)		74,556.7		28,326.4		37.99		78,267.6		28,172.9		35.99
Ratings A1-B2		52,669.8		14,471.9		27.47		56,939.5		14,611.7		25.66
Ratings C1-D3		19,719.8		11,915.4		60.42		19,491.2		11,691.7		59.98
Ratings E1-E2		1,155.8		1,577.9		136.51		1,242.9		1,659.9		133.55
Ratings E2R-H1		1,011.2		361.1		35.71		593.9		209.5		35.28
Sovereign		78,802.5		1,067.1		1.35		79,046.8		1,097.1		1.38
Ratings A1-B2		78,683.1		991.9		1.26		78,923.2		1,018.9		1.29
Ratings C1-D3		118.9		74.3		62.52		123.2		77.5		62.96
Ratings E1-E2		0.4		0.7		181.13		0.3		0.5		143.05
Ratings E2R-H1		0.0		0.0		62.70		0.0		0.0		40.48
Bank		6,358.3		1,557.8		24.50		5,622.1		1,385.0		24.63
Ratings A1-B2		5,814.0		1,225.7		21.08		5,057.2		1,078.5		21.32
Ratings C1-D3		537.4		320.5		59.63		563.3		306.0		54.32
Ratings E1-E2		4.1		10.7		258.09		0.0		0.0		184.04
Ratings E2R-H1		2.6		0.7		30.20		1.4		0.4		29.54
Specialized lending		150.2		158.1		105.31		173.9		183.9		105.71
Retail		12,530.7		4,726.6		37.72		11,935.7		4,464.1		37.40
Residential mortgage		9,562.8		3,195.3		33.41		9,218.6		3,105.6		33.68
Qualifying revolving loan		588.6		383.2		65.10		654.7		435.1		66.46
Other retail		2,379.3		1,148.0		48.25		2,062.3		923.3		44.76
Equities		4,359.0		7,386.0		169.44		5,337.7		8,973.4		168.11
PD/LGD approach		3,715.4		5,298.7		142.61		4,221.3		5,367.5		127.15
Market-based approach		643.6		2,087.2		324.29		1,116.3		3,605.9		323.01
Regarded-method exposure		1,871.5		4,223.2		225.65		1,839.1		3,574.3		194.35
Securitizations		3,439.9		269.6		7.83		4,247.9		369.2		8.69
Others		2,182.9		1,875.5		85.92		2,173.0		1,882.3		86.62
Standardized approach		13,081.9		3,575.8		27.33		17,523.9		3,544.0		20.22
CVA risk		n.a.		3,188.2		n.a.		n.a.		2,216.1		n.a.
Central counterparty-related		n.a.		221.9		n.a.		n.a.		219.5		n.a.
Total		197,334.0		56,576.9		28.67		206,168.1		56,082.3		27.20

Notes:
1.	“Corporate” does not include specialized lending exposure under supervisory slotting criteria.
2.	“Specialized lending” is specialized lending exposure under supervisory slotting criteria.

<Analysis>

Risk weighted assets decreased by 494.6 billion yen from the previous year to 56,082.3 billion yen due to the effects of changes in our methods of measuring derivatives transactions and fund transactions which were offset in part by the effects of the increase in stock prices.

4

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 September 30, 2016 and 2017.

(B) Number of consolidated subsidiaries

	As of September 30, 2016		As of September 30, 2017
Consolidated subsidiaries		142		130

Our major consolidated subsidiaries (and their main businesses) are Mizuho Bank, Ltd. (banking business), Mizuho Trust & Banking Co., Ltd. (trust business and banking business) and Mizuho Securities Co., Ltd. (securities business).

(C) Corporations providing financial services for which Article 9 of the FSA Notice No. 20 is applicable

None as of September 30, 2016 and 2017.

(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 September 30, 2016 and 2017.

(E) Restrictions on transfer of funds or capital within the bank holding company’s corporate group

None as of September 30, 2016 and 2017.

(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 September 30, 2016 and 2017.

5

∎ Composition of capital

(2) Composition of capital, etc.

(A) Composition of capital disclosure

Composition of capital disclosure (International standard)

			(Millions of yen)
			As of September 30, 2016				As of September 30, 2017
Basel III template					Amounts excluded under transitional arrangements					Amounts excluded under transitional arrangements
Common equity Tier 1 capital: instruments and reserves		(1)
1a+2-1c-26	Directly issued qualifying common share capital plus related stock surplus and retained earnings			6,730,792		/		7,126,803			/
1a	of which: capital and stock surplus			3,367,574		/		3,391,317			/
2	of which: retained earnings			3,463,490		/		3,837,147			/
1c	of which: treasury stock (-)			5,098		/		6,475			/
26	of which: national specific regulatory adjustments (earnings to be distributed) (-)			95,173		/		95,186			/
	of which: other than above			—		/		—			/
1b	Subscription rights to common shares			1,754		/		1,173			/
3	Accumulated other comprehensive income and other disclosed reserves			856,425		570,950		1,296,157			324,039
5	Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)			14,954		/		14,173			/
	Total of items included in common equity Tier 1 capital: instruments and reserves subject to phase-out arrangements			33,263		/		23,889			/
	of which: amount allowed in group CET1 capital subject to phase-out arrangements on common share capital issued by subsidiaries and held by third parties			33,263		/		23,889			/
6	Common equity Tier 1 capital: instruments and reserves	(A)		7,637,189		/		8,462,197			/
Common equity Tier 1 capital: regulatory adjustments		(2)
8+9	Total intangible assets (net of related tax liability, excluding those relating to mortgage servicing rights)			383,779		255,853		635,819			158,954
8	of which: goodwill (net of related tax liability, including those equivalent)			30,506		20,337		73,542			18,385
9	of which: other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)			353,273		235,515		562,276			140,569
10	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)			35,461		23,641		35,022			8,755
11	Deferred gains or losses on derivatives under hedge accounting			100,246		66,831		(6,171	)		(1,542	)
12	Shortfall of eligible provisions to expected losses			40,278		26,855		31,942			7,990
13	Securitization gain on sale			46		30		45			11
14	Gains and losses due to changes in own credit risk on fair valued liabilities			1,047		698		1,856			464
15	Net defined benefit asset			280,679		187,119		458,030			114,507
16	Investments in own shares (excluding those reported in the net assets section)			1,594		1,062		4,373			1,093

6

17	Reciprocal cross-holdings in common equity		—		—	—		—
18	Investments in the capital of banking, financial and insurance entities that are 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)		24,658		16,438	20,679		5,169
19+20+21	Amount exceeding the 10% threshold on specified items		—		—	—		—
19	of which: significant investments in the common stock of financials		—		—	—		—
20	of which: mortgage servicing rights		—		—	—		—
21	of which: deferred tax assets arising from temporary differences (net of related tax liability)		—		—	—		—
22	Amount exceeding the 15% threshold on specified items		—		—	—		—
23	of which: significant investments in the common stock of financials		—		—	—		—
24	of which: mortgage servicing rights		—		—	—		—
25	of which: deferred tax assets arising from temporary differences (net of related tax liability)		—		—	—		—
27	Regulatory adjustments applied to common equity Tier 1 due to insufficient additional Tier 1 and Tier 2 to cover deductions		—		/	—		/
28	Common equity Tier 1 capital: regulatory adjustments	(B)	867,792		/	1,181,599		/
Common equity Tier 1 capital (CET1)
29	Common equity Tier 1 capital (CET1) ((A)-(B))	(C)	6,769,396		/	7,280,598		/
Additional Tier 1 capital: instruments		(3)
30   31a	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown		—		/	—		/
30   31b	Subscription rights to additional Tier 1 instruments		—		/	—		/
30   32	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards		760,000		/	1,220,000		/
30	Qualifying additional Tier 1 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities		—		/	—		/
34-35	Additional Tier 1 instruments issued by subsidiaries and held by third parties (amount allowed in group AT1)		30,890		/	30,283		/
33+35	Eligible Tier 1 capital instruments subject to phase-out arrangements included in additional Tier 1 capital: instruments		577,500		/	577,500		/
33	of which: directly issued capital instruments subject to phase out from additional Tier 1		577,500		/	577,500		/
35	of which: instruments issued by subsidiaries subject to phase out		—		/	—		/
	Total of items included in additional Tier 1 capital: instruments subject to phase-out arrangements		(34,360	)	/	(15,115	)	/
	of which: foreign currency translation adjustments		(34,360	)	/	(15,115	)	/
36	Additional Tier 1 capital: instruments	(D)	1,334,030		/	1,812,667		/
Additional Tier 1 capital: regulatory adjustments
37	Investments in own additional Tier 1 instruments		—		—	—		—
38	Reciprocal cross-holdings in additional Tier 1 instruments		—		—	—		—

7

39	Investments in the capital of banking, financial and insurance entities that are 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)		66	44	97	24
40	Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)		88,200	58,800	58,800	14,700
	Total of items included in additional Tier 1 capital: regulatory adjustments subject to phase-out arrangements		32,630	/	29,557	/
	of which: goodwill equivalent		9,078	/	14,508	/
	of which: intangible fixed assets recognized as a result of a merger		10,095	/	11,044	/
	of which: capital increase due to securitization transactions		30	/	11	/
	of which: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach		13,426	/	3,992	/
42	Regulatory adjustments applied to additional Tier 1 due to insufficient Tier 2 to cover deductions		—	/	—	/
43	Additional Tier 1 capital: regulatory adjustments	(E)	120,897	/	88,455	/
Additional Tier 1 capital (AT1)
44	Additional Tier 1 capital ((D)-(E))	(F)	1,213,132	/	1,724,212	/
Tier 1 capital (T1 = CET1 + AT1)
45	Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))	(G)	7,982,529	/	9,004,810	/
Tier 2 capital: instruments and provisions		(4)
46	Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown		—	/	—	/
46	Subscription rights to Tier 2 instruments		—	/	—	/
46	Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards		495,840	/	828,555	/
46	Tier 2 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities		151,680	/	169,110	/
48-49	Tier 2 instruments issued by subsidiaries and held by third parties (amount allowed in group Tier 2)		10,481	/	10,117	/
47+49	Eligible Tier 2 capital instruments subject to phase-out arrangements included in Tier 2: instruments and provisions		884,083	/	768,789	/
47	of which: directly issued capital instruments subject to phase out from Tier 2		151,680	/	162,256	/
49	of which: instruments issued by subsidiaries subject to phase out		732,403	/	606,532	/
50	Total of general allowance for loan losses and eligible provisions included in Tier 2		5,726	/	4,639	/
50a	of which: general allowance for loan losses		5,726	/	4,639	/
50b	of which: eligible provisions		—	/	—	/
	Total of items included in Tier 2 capital: instruments and provisions subject to phase-out arrangements		333,124	/	193,665	/
	of which: 45% of unrealized gains on other securities		294,596	/	174,670	/
	of which: 45% of revaluation reserve for land		38,527	/	18,994	/
51	Tier 2 capital: instruments and provisions	(H)	1,880,935	/	1,974,876	/

8

Tier 2 capital: regulatory adjustments
52	Investments in own Tier 2 instruments		209		139	1,658		414
53	Reciprocal cross-holdings in Tier 2 instruments		—		—	—		—
54	Investments in the capital of banking, financial and insurance entities that are 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)		11,541		7,694	8,678		2,169
55	Significant investments in the capital banking, financial and insurance entities that are outside the scope of regulatory consolidation (net of eligible short positions)		—		—	—		—
	Total of items included in Tier 2 capital: regulatory adjustments subject to phase-out arrangements		83,844		/	22,675		/
	of which: investments in the capital banking, financial and insurance entities		70,418		/	18,682		/
	of which: 50% of excess of expected losses relative to eligible reserves by banks adopting internal ratings-based approach		13,426		/	3,992		/
57	Tier 2 capital: regulatory adjustments	(I)	95,596		/	33,011		/
Tier 2 capital (T2)
58	Tier 2 capital (T2) ((H)-(I))	(J)	1,785,339		/	1,941,864		/
Total capital (TC = T1 + T2)
59	Total capital (TC = T1 + T2) ((G)+(J))	(K)	9,767,868		/	10,946,675		/
Risk weighted assets		(5)
	Total of items included in risk weighted assets subject to phase-out arrangements		473,144		/	262,706		/
	of which: intangible assets (net of related tax liability, excluding those relating to mortgage servicing rights)		225,420		/	129,524		/
	of which: deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)		23,641		/	8,755		/
	of which: net defined benefit asset		187,119		/	114,507		/
	of which: investments in the capital banking, financial and insurance entities		36,963		/	9,918		/
60	Risk weighted assets	(L)	61,648,482		/	61,695,509		/
Capital ratio (consolidated)
61	Common equity Tier 1 capital ratio (consolidated) ((C)/(L))		10.98	%	/	11.80	%	/
62	Tier 1 capital ratio (consolidated) ((G)/(L))		12.94	%	/	14.59	%	/
63	Total capital ratio (consolidated) ((K)/(L))		15.84	%	/	17.74	%	/
Regulatory adjustments		(6)
72	Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)		676,959		/	731,117		/
73	Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)		117,422		/	127,552		/
74	Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)		—		/	—		/
75	Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)		122,634		/	176,254		/
Provisions included in Tier 2 capital: instruments and provisions		(7)

9

76	Provisions (general allowance for loan losses)		5,726	/	4,639	/
77	Cap on inclusion of provisions (general allowance for loan losses)		46,690	/	46,794	/
78	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) (if the amount is negative, report as “nil”)		—	/	—	/
79	Cap for inclusion of provisions in Tier 2 under internal ratings-based approach		296,588	/	299,418	/
Capital instruments subject to phase-out arrangements		(8)
82	Current cap on AT1 instruments subject to phase-out arrangements		1,249,883	/	1,041,569	/
83	Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)		—	/	—	/
84	Current cap on T2 instruments subject to phase-out arrangements		1,012,236	/	843,530	/
85	Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) (if the amount is negative, report as “nil”)		—	/	—	/

Notes:
1.	The above figures are calculated based on International standard applied on a consolidated basis under the FSA Notice No. 20.
2.	In calculating the consolidated capital adequacy ratio, we underwent an examination following the procedures agreed with Ernst & Young ShinNihon LLC, on the basis of “Treatment in implementing examination by agreed-upon procedures for calculating capital adequacy ratio” (Industry Committee Practical Guideline No. 30 of the Japanese Institute of Certified Public Accountants). Note that this is not a part of the accounting audit performed on our consolidated financial statements. This consists of an examination under agreed-upon procedures performed by Ernst & Young ShinNihon LLC on a portion of the internal control structure concerning the calculation of 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.

10

(B) Explanation of (A) Composition of capital disclosure

Reconciliation between “Consolidated balance sheet” and items of consolidated balance sheet and “Composition of capital disclosure”

	(Millions of yen)
Items	Consolidated balance sheet as in published financial statements						Cross- reference to Appended	Reference # of Basel III template under the Composition of capital
	As of September 30, 2016			As of September 30, 2017			template	disclosure
(Assets)
Cash and due from banks		42,715,384			50,982,819
Call loans and bills purchased		899,865			894,076
Receivables under resale agreements		9,258,984			9,408,646
Guarantee deposits paid under securities borrowing transactions		3,195,977			3,585,209
Other debt purchased		2,527,270			2,666,336
Trading assets		12,511,953			12,465,215		6-a
Money held in trust		227,975			269,577
Securities		32,705,104			32,072,076		2-b, 6-b
Loans and bills discounted		73,030,669			79,811,834		6-c
Foreign exchange assets		1,452,483			1,951,926
Derivatives other than for trading assets		2,957,197			1,844,878		6-d
Other assets		4,272,085			5,299,252		6-e
Tangible fixed assets		1,071,524			1,113,753
Intangible fixed assets		869,070			1,083,617		2-a
Net defined benefit asset		673,562			824,534		3
Deferred tax assets		77,011			56,567		4-a
Customers’ liabilities for acceptances and guarantees		4,675,296			5,543,662
Reserves for possible losses on loans		(441,438	)		(364,743	)
Total assets		192,679,978			209,509,243
(Liabilities)
Deposits		110,171,994			124,646,612
Negotiable certificates of deposit		9,568,325			11,992,948
Call money and bills sold		1,791,651			1,602,970
Payables under repurchase agreements		17,739,258			19,521,855
Guarantee deposits received under securities lending transactions		1,314,573			2,640,306
Commercial paper		827,552			339,787
Trading liabilities		9,878,751			7,815,999		6-f
Borrowed money		7,243,394			5,353,682		8-a
Foreign exchange liabilities		582,971			426,712
Short-term bonds		408,033			122,566
Bonds and notes		7,131,121			8,060,465		8-b
Due to trust accounts		4,053,768			4,692,390
Derivatives other than for trading liabilities		2,001,471			1,656,576		6-g
Other liabilities		5,755,737			4,902,561
Reserve for bonus payments		47,174			46,173
Reserve for variable compensation		1,488			1,614
Net defined benefit liability		52,668			56,163
Reserve for director and corporate auditor retirement benefits		1,376			1,284
Reserve for possible losses on sales of loans		3			124
Reserve for contingencies		4,889			5,473
Reserve for reimbursement of deposits		15,828			19,378
Reserve for reimbursement of debentures		35,273			28,132
Reserves under special laws		2,219			2,285
Deferred tax liabilities		337,644			369,526		4-b
Deferred tax liabilities for revaluation reserve for land		67,247			66,237		4-c
Acceptances and guarantees		4,675,296			5,543,662
Total liabilities		183,709,717			199,915,493

11

(Net assets)
Common stock and preferred stock	2,256,275		2,256,548		1-a
Capital surplus	1,111,299		1,134,768		1-b
Retained earnings	3,464,082		3,837,710		1-c
Treasury stock	(5,098	)	(6,475	)	1-d
Total shareholders’ equity	6,826,558		7,222,552
Net unrealized gains (losses) on other securities	1,134,348		1,409,766
Deferred gains or losses on hedges	167,078		(7,714	)	5
Revaluation reserve for land	146,794		144,817
Foreign currency translation adjustments	(85,900	)	(75,579	)
Remeasurements of defined benefit plans	65,055		148,906
Total accumulated other comprehensive income	1,427,376		1,620,196			3
Stock acquisition rights	1,754		1,173			1b
Non-controlling interests	714,572		749,827		7
Total net assets	8,970,260		9,593,750
Total liabilities and net assets	192,679,978		209,509,243

Note:

    The regulatory scope of consolidation is the same as the accounting scope of consolidation.

12

Appended template

1. Shareholders’ equity

(1) Consolidated balance sheet

		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016			As of September 30, 2017			Remarks
1-a	Common stock and preferred stock		2,256,275			2,256,548
1-b	Capital surplus		1,111,299			1,134,768
1-c	Retained earnings		3,464,082			3,837,710
1-d	Treasury stock		(5,098	)		(6,475	)
	Total shareholders’ equity		6,826,558			7,222,552
(2) Composition of capital
Basel III template		(Millions of yen)
	Composition of capital disclosure	As of September 30, 2016			As of September 30, 2017			Remarks
	Directly issued qualifying common share capital plus related stock surplus and retained earnings		6,825,966			7,221,989		Shareholders’ equity attributable to common shares (before adjusting national specific regulatory adjustments (earnings to be distributed))
1a	of which: capital and stock surplus		3,367,574			3,391,317
2	of which: retained earnings		3,463,490			3,837,147
1c	of which: treasury stock (-)		5,098			6,475
	of which: other than above		—			—
31a	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as equity under applicable accounting standards and the breakdown		—			—
2. Intangible fixed assets
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016			As of September 30, 2017			Remarks
2-a	Intangible fixed assets		869,070			1,083,617
2-b	Securities		32,705,104			32,072,076
	of which: share of goodwill of companies accounted for using the equity method		28,147			19,383		Share of goodwill of companies accounted for using the equity method
	Income taxes related to above		(257,585	)		(308,227	)

13

(2) Composition of capital
Basel III template		(Millions of yen)
	Composition of capital disclosure	As of September 30, 2016			As of September 30, 2017			Remarks
8	Goodwill (net of related tax liability, including those equivalent)		50,844			91,928
9	Other intangibles other than goodwill and mortgage servicing rights (net of related tax liability)		588,788			702,845		Software and other
	Mortgage servicing rights (net of related tax liability)		—			—
20	Amount exceeding the 10% threshold on specified items		—			—
24	Amount exceeding the 15% threshold on specified items		—			—
74	Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)		—			—
3. Net defined benefit asset
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016			As of September 30, 2017			Remarks
3	Net defined benefit asset		673,562			824,534
	Income taxes related to above		(205,762	)		(251,996	)
(2) Composition of capital
Basel III template		(Millions of yen)
	Composition of capital disclosure	As of September 30, 2016			As of September 30, 2017			Remarks
15	Net defined benefit asset		467,799			572,538
4. Deferred tax assets
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016			As of September 30, 2017			Remarks
4-a	Deferred tax assets		77,011			56,567
4-b	Deferred tax liabilities		337,644			369,526
4-c	Deferred tax liabilities for revaluation reserve for land		67,247			66,237
	Tax effects on intangible fixed assets		257,585			308,227
	Tax effects on net defined benefit asset		205,762			251,996

14

(2) Composition of capital
Basel III		(Millions of yen)
template	Composition of capital disclosure	As of September 30, 2016		As of September 30, 2017			Remarks
10	Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)		59,102		43,777		This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
	Deferred tax assets that rely on future profitability arising from temporary differences (net of related tax liability)		122,634		176,254		This item does not agree with the amount reported on the consolidated balance sheet due to offsetting of assets and liabilities.
21	Amount exceeding the 10% threshold on specified items		—		—
25	Amount exceeding the 15% threshold on specified items		—		—
75	Deferred tax assets arising from temporary differences that are below the thresholds for deduction (before risk weighting)		122,634		176,254
5. Deferred gains or losses on derivatives under hedge accounting
(1) Consolidated balance sheet
Ref.	Consolidated balance sheet items	(Millions of yen)
		As of September 30, 2016		As of September 30, 2017			Remarks
5	Deferred gains or losses on hedges		167,078		(7,714	)
(2) Composition of capital
Basel III template	Composition of capital disclosure	(Millions of yen)
		As of September 30, 2016		As of September 30, 2017			Remarks
11	Deferred gains or losses on derivatives under hedge accounting		167,078		(7,714	)
6. Items associated with investments in the capital of financial institutions
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016		As of September 30, 2017			Remarks
6-a	Trading assets		12,511,953		12,465,215		Including trading account securities and derivatives for trading assets
6-b	Securities		32,705,104		32,072,076
6-c	Loans and bills discounted		73,030,669		79,811,834		Including subordinated loans
6-d	Derivatives other than for trading assets		2,957,197		1,844,878
6-e	Other assets		4,272,085		5,299,252		Including money invested
6-f	Trading liabilities		9,878,751		7,815,999		Including trading account securities sold
6-g	Derivatives other than for trading liabilities		2,001,471		1,656,576

15

(2) Composition of capital
Basel III		(Millions of yen)
template	Composition of capital disclosure	As of September 30, 2016		As of September 30, 2017		Remarks
	Investments in own capital instruments		3,006		7,540
16	Common equity Tier 1 capital		2,657		5,467
37	Additional Tier 1 capital		—		—
52	Tier 2 capital		348		2,073
	Reciprocal cross-holdings in the capital of banking, financial and insurance entities		—		—
17	Common equity Tier 1 capital		—		—
38	Additional Tier 1 capital		—		—
53	Tier 2 capital		—		—
	Investments in the capital of banking, financial and insurance entities that are 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 10% threshold)		737,403		767,936
18	Common equity Tier 1 capital		41,097		25,849
39	Additional Tier 1 capital		110		122
54	Tier 2 capital		19,236		10,848
72	Non-significant investments in the capital of other financials that are below the thresholds for deduction (before risk weighting)		676,959		731,117
	Significant investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions		264,422		201,052
19	Amount exceeding the 10% threshold on specified items		—		—
23	Amount exceeding the 15% threshold on specified items		—		—
40	Additional Tier 1 capital		147,000		73,500
55	Tier 2 capital		—		—
73	Significant investments in the common stock of financials that are below the thresholds for deduction (before risk weighting)		117,422		127,552
7. Non-Controlling Interests
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016		As of September 30, 2017		Remarks
7	Non-Controlling Interests		714,572		749,827

16

(2) Composition of capital
Basel III template		(Millions of yen)
	Composition of capital disclosure	As of September 30, 2016		As of September 30, 2017		Remarks
5	Common share capital issued by subsidiaries and held by third parties (amount allowed in group CET1)		14,954		14,173	After reflecting amounts eligible for inclusion (non-controlling interest after adjustments)
30- 31ab-32	Qualifying additional Tier 1 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities		—		—	After reflecting amounts eligible for inclusion (non-controlling interest after adjustments)
34-35	Additional Tier 1 instruments issued by subsidiaries and held by third parties (amount allowed in group AT1)		30,890		30,283	After reflecting amounts eligible for inclusion (non-controlling interest after adjustments)
46	Tier 2 instruments plus related stock surplus issued by special purpose vehicles and other equivalent entities		151,680		169,110	After reflecting amounts eligible for inclusion (non-controlling interest after adjustments)
48-49	Tier 2 instruments issued by subsidiaries and held by third parties (amount allowed in group Tier 2)		10,481		10,117	After reflecting amounts eligible for inclusion (non-controlling interest after adjustments)
8. Other capital instruments
(1) Consolidated balance sheet
		(Millions of yen)
Ref.	Consolidated balance sheet items	As of September 30, 2016		As of September 30, 2017		Remarks
8-a	Borrowed money		7,243,394		5,353,682
8-b	Bonds and notes		7,131,121		8,060,465
	Total		14,374,515		13,414,148
(2) Composition of capital
Basel III template		(Millions of yen)
	Composition of capital disclosure	As of September 30, 2016		As of September 30, 2017		Remarks
32	Directly issued qualifying additional Tier 1 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards		760,000		1,220,000
46	Directly issued qualifying Tier 2 instruments plus related stock surplus of which: classified as liabilities under applicable accounting standards		495,840		828,555

Note:

Amounts in the “Composition of capital disclosure” are based on those before considering amounts under transitional arrangements and include “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.

17

∎ Risk-based capital

(3) Required capital by portfolio classification

	(Billions of yen)
	As of September 30, 2016				As of September 30, 2017
	EAD		Required capital		EAD		Required capital
Credit risk		197,334.0		5,130.6		209,935.3		4,969.2
Internal ratings-based approach		184,252.0		4,571.8		188,644.2		4,490.8
Corporate (except specialized lending)		68,405.7		2,436.8		71,846.4		2,341.2
Corporate (specialized lending)		3,573.4		233.1		3,667.5		207.4
Sovereign		78,539.5		85.1		78,714.9		85.7
Bank		6,345.7		129.7		5,597.9		114.1
Retail		12,530.7		508.5		11,935.7		476.3
Residential mortgage		9,562.8		325.5		9,218.6		311.0
Qualifying revolving loan		588.6		45.1		654.7		51.2
Other retail		2,379.3		137.8		2,062.3		113.9
Equities		4,359.0		590.8		5,337.7		717.8
PD/LGD approach		3,715.4		423.9		4,221.3		429.4
Market-based approach (simple risk weight method)		643.6		166.9		1,116.3		288.4
Market-based approach (internal models approach)		—		—		—		—
Regarded-method exposure		1,871.5		338.8		1,839.1		287.7
Purchase receivables		3,003.3		94.1		3,283.7		96.8
Securitizations		3,439.9		21.5		4,247.9		29.5
Others		2,182.9		132.9		2,173.0		133.7
Standardized approach		13,081.9		286.0		21,291.0		283.5
Sovereign		8,030.9		10.4		16,494.8		9.6
Bank		2,047.8		37.4		1,711.4		34.2
Corporate		2,280.3		173.4		2,487.5		185.9
Residential mortgage		—		—		—		—
Securitizations		19.5		3.6		13.7		2.2
Others		703.2		61.0		583.5		51.4
CVA risk		n.a.		255.0		n.a.		177.2
Central counterparty-related		n.a.		17.7		n.a.		17.5
Market risk		n.a.		153.3		n.a.		179.1
Standardized approach		n.a.		83.2		n.a.		103.5
Interest rate risk		n.a.		45.6		n.a.		45.0
Equities risk		n.a.		27.4		n.a.		36.8
Foreign exchange risk		n.a.		4.4		n.a.		7.2
Commodities risk		n.a.		5.5		n.a.		14.3
Option transactions		n.a.		—		n.a.		—
Internal models approach		n.a.		70.1		n.a.		75.6
Operational risk		n.a.		252.3		n.a.		269.8
Advanced measurement approach		n.a.		211.2		n.a.		222.3
Basic indicator approach		n.a.		41.0		n.a.		47.5
Total required capital (consolidated)		n.a.		4,931.8		n.a.		4,935.6

18

Notes:
1.	EAD: Exposure at default.
2.	PD: Probability of default.
3.	LGD: Loss given default.
4.	Required capital: For credit risk, the sum of (i) 8% of credit risk-weighted assets, (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 (except specialized lending)	Credits to corporations and sole proprietors (excluding credits to retail customers)
Corporate (specialized lending)	Credits which limit interest and principal repayment sources to cash flow derived from specific real estate, chattel, businesses, etc, including real estate non-recourse loan, ship finance and project finance, etc.
Sovereign	Credits to central governments, central banks and local governmental entities
Bank	Credits to banks and securities companies, etc.
Retail	Housing 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. (other retail).
Equities	Capital stock, preferred securities, perpetual subordinated debt, etc. (excluding trading assets) Either the PD/LGD approach or the market-based approach is applied to equities following the termination of the transitional measurement.
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.

19

∎ Credit risk

(4) 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 twelve months ended September 30, 2016 and 2017.

● Status of credit risk exposure

(A) Breakdown by geographical area

	(Billions of yen)
	As of September 30, 2016
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Domestic		68,313.7		19,716.7		1,594.5		34,363.5		123,988.6
Overseas		34,707.5		9,962.2		2,741.8		7,540.4		54,952.0
Asia		8,303.1		1,969.2		399.8		1,445.3		12,117.6
Central and South America		2,879.4		53.8		138.4		442.0		3,513.7
North America		14,036.2		6,115.7		756.6		5,159.4		26,068.1
Eastern Europe		254.8		—		0.3		6.0		261.1
Western Europe		5,988.7		1,374.7		1,246.0		319.4		8,928.9
Other areas		3,244.9		448.6		200.4		168.1		4,062.2
Total		103,021.2		29,678.9		4,336.4		41,903.9		178,940.6
Exempt portion		n.a.		n.a.		n.a.		n.a.		13,062.3
	(Billions of yen)
	As of September 30, 2017
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Domestic		65,345.0		18,158.0		871.9		39,615.7		123,990.8
Overseas		36,878.9		10,739.0		1,641.1		9,307.2		58,566.3
Asia		9,490.6		1,994.1		459.9		2,087.8		14,032.5
Central and South America		2,904.4		52.7		87.2		498.8		3,543.3
North America		13,951.5		6,727.2		296.3		5,338.8		26,313.9
Eastern Europe		265.1		—		0.0		12.8		278.0
Western Europe		6,316.0		1,052.7		642.3		1,139.0		9,150.3
Other areas		3,951.1		911.9		155.1		229.7		5,248.0
Total		102,224.0		28,897.0		2,513.1		48,923.0		182,557.2
Exempt portion		n.a.		n.a.		n.a.		n.a.		21,277.3

Notes:
1.	Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit 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.

20

(B) Breakdown by industry

	(Billions of yen)
	As of September 30, 2016
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Manufacturing		18,941.2		2,189.3		568.9		611.5		22,311.0
Construction		1,335.8		195.4		13.6		42.2		1,587.1
Real estate		8,443.5		561.7		105.3		21.8		9.132.4
Service industries		4,805.7		367.1		97.4		58.9		5,329.2
Wholesale and retail		8,147.0		699.4		190.9		867.5		9,905.0
Finance and insurance		11,058.2		3,035.4		2,046.9		1,708.9		17,849.6
Individuals		11,300.9		—		0.7		9.6		11,311.3
Other industries		25,087.3		8,794.4		1,283.4		8,274.4		43,439.7
Japanese Government; Bank of Japan		13,901.2		13,835.9		28.9		30,308.6		58,074.8
Total		103,021.2		29,678.9		4,336.4		41,903.9		178,940.6
Exempt portion		n.a.		n.a.		n.a.		n.a.		13,062.3
	(Billions of yen)
	As of September 30, 2017
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Manufacturing		20,132.4		2,357.3		376.3		797.0		23,663.1
Construction		1,303.1		235.7		5.6		56.4		1,601.0
Real estate		8,767.7		607.8		86.8		28.3		9,490.7
Service industries		5,120.9		416.0		75.9		66.8		5,679.8
Wholesale and retail		8,342.4		715.6		91.3		1,045.8		10,195.2
Finance and insurance		12,384.9		2,858.2		958.6		1,993.9		18,195.7
Individuals		10,838.8		—		1.1		10.8		10,850.8
Other industries		25,002.2		9,587.2		911.4		9,561.4		45,062.4
Japanese Government; Bank of Japan		10,331.2		12,118.9		5.6		35,362.2		57,818.1
Total		102,224.0		28,897.0		2,513.1		48,923.0		182,557.2
Exempt portion		n.a.		n.a.		n.a.		n.a.		21,277.3

Notes:
1.	Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2.	“Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

21

(C) Breakdown by residual contractual maturity

	(Billions of yen)
	As of September 30, 2016
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Less than one year		26,916.3		4,998.9		795.3		4,742.9		37,453.6
From one year to less than three years		18,402.2		9,757.2		1,578.6		558.4		30,296.4
From three years to less than five years		18,442.1		2,961.1		678.5		20.9		22,102.7
Five years or more		27,232.4		7,631.2		1,262.5		15.1		36,141.4
Other than above		12,028.0		4,330.3		21.3		36,566.4		52,946.2
Total		103.021.2		29,678.9		4,336.4		41,903.9		178,940.6
Exempt portion		n.a.		n.a.		n.a.		n.a.		13,062.3
	(Billions of yen)
	As of September 30, 2017
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Less than one year		28,314.0		7,894.8		330.2		6,066.0		42,605.2
From one year to less than three years		18,857.1		5,377.3		1,047.1		678.3		25,960.0
From three years to less than five years		18,634.9		2,931.4		454.2		13.6		22,034.4
Five years or more		26,858.1		7,493.5		681.4		18.5		35.051.7
Other than above		9,559.6		5,199.7		—		42,146.3		56,905.7
Total		102,224.0		28,897.0		2,513.1		48,923.0		182,557.2
Exempt portion		n.a.		n.a.		n.a.		n.a.		21,277.3

Notes:
1.	Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2.	“Others” include cash, deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

22

● Status of exposure past due three months or more or in default

(D) Breakdown by geographical area

	(Billions of yen)
	As of September 30, 2016
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Domestic		1,004.0		76.2		3.4		13.0		1,096.8
Overseas		200.7		2.8		7.7		2.5		213.8
Asia		49.9		0.0		0.5		0.4		50.9
Central and South America		54.8		0.0		3.0		0.0		57.8
North America		20.2		2.8		—		1.3		24.4
Eastern Europe		1.4		—		0.0		—		1.5
Western Europe		53.0		0.0		4.2		0.5		57.7
Other areas		21.2		—		—		0.1		21.3
Total		1,204.7		79.1		11.2		15.5		1,310.7
Exempt portion		n.a.		n.a.		n.a.		n.a.		3.6
	(Billions of yen)
	As of September 30, 2017
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Domestic		582.5		6.6		1.4		9.5		600.1
Overseas		200.6		2.8		7.3		3.2		214.1
Asia		41.7		0.0		1.5		1.1		44.4
Central and South America		90.6		0.0		2.9		0.0		93.6
North America		23.1		2.8		0.0		1.4		27.5
Eastern Europe		0.5		—		0.0		—		0.5
Western Europe		33.1		0.0		2.7		0.5		36.4
Other areas		11.4		—		0.0		0.1		11.5
Total		783.2		9.5		8.7		12.7		814.2
Exempt portion		n.a.		n.a.		n.a.		n.a.		3.6

Notes:
1.	Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit 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.

23

(E) Breakdown by industry

	(Billions of yen)
	As of September 30, 2016
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Manufacturing		529.9		72.9		1.8		4.1		608.9
Construction		15.1		0.0		—		0.4		15.6
Real estate		67.5		0.5		0.1		0.2		68.4
Service industries		83.5		0.4		0.7		1.6		86.4
Wholesale and retail		187.9		2.1		0.7		5.1		195.9
Finance and insurance		10.1		2.5		1.0		1.8		15.5
Individuals		103.1		—		—		1.1		104.2
Other industries		207.4		0.3		6.7		0.8		215.4
Total		1,204.7		79.1		11.2		15.5		1,310.7
Exempt portion		n.a.		n.a.		n.a.		n.a.		3.6
	(Billions of yen)
	As of September 30, 2017
	Loans, commitments and other non-derivative off-balance-sheet exposures		Securities		Derivatives		Others		Total
Manufacturing		174.9		3.4		1.4		4.4		184.2
Construction		9.1		0.0		—		0.0		9.1
Real estate		56.0		0.3		0.3		0.1		56.7
Service industries		73.3		0.5		0.4		0.7		75.0
Wholesale and retail		171.0		2.1		0.2		3.3		176.7
Finance and insurance		11.4		2.7		0.0		1.7		15.9
Individuals		87.6		—		—		0.9		88.5
Other industries		199.7		0.4		6.3		1.2		207.7
Total		783.2		9.5		8.7		12.7		814.2
Exempt portion		n.a.		n.a.		n.a.		n.a.		3.6

Notes:
1.	Exempt portion represents the amount before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs, calculated using the standardized approach for business units and asset classes that are immaterial for the purpose of calculating credit risk-weighted assets.
2.	“Others” include deposits, call loans, other debt purchased, money held in trust, foreign exchange assets, other assets, etc.

24

● Status of reserves for possible losses on loans

The amounts associated with regarded-method exposure and securitization exposure are excluded.

(F) Period-end balances of reserves for possible losses on loans and changes during the six-month period

  (after partial direct write-offs)

	(Billions of yen)
	As of, or for the six months ended, September 30, 2016		As of, or for the six months ended, September 30, 2017
General reserve for possible losses on loans
Beginning balance		304.8		344.7
Increase during the six-month period		287.8		218.3
Decrease during the six-month period		304.8		344.7
Ending balance		287.8		218.3
Specific reserve for possible losses on loans
Beginning balance		154.6		164.4
Increase during the six-month period		153.5		146.4
Decrease during the six-month period		154.6		164.4
Ending balance		153.5		146.4
Reserve for possible losses on loans to restructuring countries
Beginning balance		0.0		0.0
Increase during the six-month period		0.0		0.0
Decrease during the six-month period		0.0		0.0
Ending balance		0.0		0.0
Total
Beginning balance		459.5		509.1
Increase during the six-month period		441.4		364.7
Decrease during the six-month period		459.5		509.1
Ending balance		441.4		364.7

Note:
	General reserve for possible losses on loans in the above table represents the amount recorded in our consolidated balance sheet, and the amounts associated with regarded-method exposure and securitization exposure are not excluded.

25

(G) Specific reserve for possible losses on loans by geographical area and industry

	(Billions of yen)
	As of March 31, 2016		As of September 30, 2016		Change
Domestic		96.2		97.3		1.1
Manufacturing		27.2		31.4		4.1
Construction		3.1		2.0		(1.0	)
Real estate		2.3		1.9		(0.3	)
Service industries		11.5		11.2		(0.2	)
Wholesale and retail		28.8		29.9		1.0
Finance and insurance		0.6		0.6		(0.0	)
Individuals		17.3		16.2		(1.1	)
Other industries		5.0		3.8		(1.2	)
Overseas		49.1		46.9		(2.1	)
Exempt portion		9.3		9.2		(0.0	)
Total		154.6		153.5		(1.1	)
	(Billions of yen)
	As of March 31, 2017		As of September 30, 2017		Change
Domestic		105.0		92.1		(12.8	)
Manufacturing		36.4		32.9		(3.5	)
Construction		0.8		0.7		(0.1	)
Real estate		1.9		1.9		(0.0	)
Service industries		12.6		7.1		(5.5	)
Wholesale and retail		33.4		32.3		(1.1	)
Finance and insurance		0.5		1.1		0.5
Individuals		14.1		11.1		(2.9	)
Other industries		4.8		4.9		0.0
Overseas		49.2		44.0		(5.1	)
Exempt portion		10.1		10.2		0.0
Total		164.4		146.4		(18.0	)

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.

26

(H) Write-offs of loans by industry

	(Billions of yen)
	For the six months ended September 30, 2016		For the six months ended September 30, 2017
Manufacturing		0.4		0.1
Construction		0.2		0.0
Real estate		0.4		0.1
Service industries		1.7		1.1
Wholesale and retail		1.4		4.2
Finance and insurance		—		0.0
Individuals		2.2		1.8
Other industries		3.7		1.9
Exempt portion		0.0		0.1
Total		10.4		9.7

Notes:
1.	The above table represents the breakdown of losses on write-offs of loans recorded in our consolidated statement of income after excluding the amounts associated 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.

27

● 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 September 30, 2016
Risk weight	On-balance sheet		Off-balance sheet		Total		With external rating
0%		6,564.1		1,132.7		7,696.8		68.5
10%		174.3		—		174.3		—
20%		1,194.4		790.3		1,984.7		48.6
35%		—		—		—		—
50%		27.0		42.1		69.1		29.1
100%		1,958.2		1,129.8		3,088.0		101.2
150%		0.0		—		0.0		—
250%		49.0		—		49.0		—
350%		—		—		—		—
625%		—		0.0		0.0		—
937.5%		—		0.0		0.0		—
1,250%		—		0.0		0.0		—
Total		9,967.3		3,095.0		13,062.3		247.6
	(Billions of yen)
	As of September 30, 2017
Risk weight	On-balance sheet		Off-balance sheet		Total		With external rating
0%		14,418.3		1,423.6		15,841.9		79.8
10%		497.0		—		497.0		—
20%		970.9		631.1		1,602.1		45.2
35%		—		—		—		—
50%		92.4		33.5		126.0		53.5
100%		1,766.7		1,394.5		3,161.2		61.3
150%		0.0		—		0.0		—
250%		48.8		—		48.8		—
350%		—		—		—		—
625%		—		0.0		0.0		—
937.5%		—		0.0		0.0		—
1,250%		—		0.0		0.0		—
Total		17,794.4		3,482.9		21,277.3		239.9

Notes:
1.	The amounts in the above table are before the deduction of specific reserve for possible losses on loans, reserve for possible losses on loans to restructuring countries and partial direct write-offs.
2.	Off-balance-sheet exposure shows credit equivalent amount.

28

(J) Amount of exposure to which a risk weight of 1,250% is applied

	(Billions of yen)
	As of September 30, 2016		As of September 30, 2017
Amount of exposure to which a risk weight of 1,250% is applied		0.2		0.3

● 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)
Risk weight	As of September 30, 2016		As of September 30, 2017
50%		0.4		—
70%		39.3		50.4
90%		—		—
95%		59.0		59.5
115%		4.7		11.8
120%		9.8		13.2
140%		4.2		14.4
250%		16.8		12.6
Default		15.6		11.5
Total		150.2		173.9

(L) Equity exposure under simple risk weight method of market-based approach by risk weight category

	(Billions of yen)
Risk weight	As of September 30, 2016		As of September 30, 2017
300%		575.3		1,057.4
400%		68.2		58.9
Total		643.6		1,116.3

Note: Of the equity exposure under the simple risk weight method, a risk weight of 300% is applied for listed equities and 400% for unlisted equities.

29

(M) Portfolio by asset class and ratings segment (Corporate, etc.)

	(Billions of yen, except percentages)
	As of September 30, 2016
	PD (EAD weighted average) (%)		LGD (EAD weighted average) (%)		EL default (EAD weighted average) (%)		Risk weight (EAD weighted average) (%)		EAD (Billions of yen)						Amount of undrawn commitments		Weighted average of credit conversion factor (%)
On-balance sheet											Off-balance sheet
Corporate		1.86		36.42		n.a.		37.99		74,556.7		54,207.8		20,348.9		20,409.1		74.99
Investment grade zone		0.10		38.15		n.a.		27.48		52,669.8		36,091.8		16,578.0		16.889.4		74.99
Non-investment grade zone		1.53		32.06		n.a.		64.64		20,875.6		17,250.2		3,625.4		3,362.5		75.00
Default		100.00		36.08		33.39		35.72		1,011.2		865.7		145.5		157.1		75.00
Sovereign		0.01		38.29		n.a.		1.35		78,802.5		65,732.1		13,070.4		669.1		75.00
Investment grade zone		0.00		38.29		n.a.		1.26		78,683.1		65,616.9		13,066.2		666.7		75.00
Non-investment grade zone		0.82		38.11		n.a.		62.93		119.3		115.1		4.2		2.4		75.00
Default		100.00		56.91		52.18		62.70		0.0		0.0		—		—		—
Bank		0.18		35.11		n.a.		24.50		6,358.3		3,497.2		2,861.0		636.4		75.00
Investment grade zone		0.09		34.91		n.a.		21.08		5,814.0		3,065.4		2,748.6		552.3		75.00
Non-investment grade zone		0.70		36.92		n.a.		61.17		541.6		430.2		111.3		84.0		75.00
Default		100.00		97.07		94.79		30.21		2.6		1.5		1.0		—		—
Equity exposure under PD/LGD approach		2.14		90.00		n.a.		142.62		3,715.4		3,700.0		15.3		—		—
Investment grade zone		0.07		90.00		n.a.		111.89		3,382.7		3,367.4		15.3		—		—
Non-investment grade zone		1.10		90.00		n.a.		242.04		258.1		258.1		—		—		—
Default		100.00		90.00		n.a.		1,192.50		74.5		74.5		—		—		—
Total		0.91		38.49		n.a.		22.18		163,433.0		127,137.2		36,295.7		21,714.8		74.99
Investment grade zone		0.05		39.34		n.a.		14.57		140,549.8		108,141.6		32,408.1		18,108.5		74.99
Non-investment grade zone		1.50		32.90		n.a.		66.64		21,794.8		18,053.8		3,741.0		3,449.0		75.00
Default		100.00		39.92		33.54		114.93		1,088.4		941.8		146.5		157.1		75.00

30

	(Billions of yen, except percentages)
	As of September 30, 2017
	PD (EAD weighted average) (%)		LGD (EAD weighted average) (%)		EL default (EAD weighted average) (%)		Risk weight (EAD weighted average) (%)		EAD (Billions of yen)						Amount of undrawn commitments		Weighted average of credit conversion factor (%)
											On-balance sheet		Off-balance sheet
Corporate		1.23		36.23		n.a.		36.00		78,267.6		56,901.7		21,365.8		21,817.0		74.99
Investment grade zone		0.09		37.88		n.a.		25.66		56,939.5		39,183.7		17,755.7		18,351.4		74.99
Non-investment grade zone		1.53		31.54		n.a.		64.39		20,734.1		17,148.4		3,585.7		3,458.7		75.00
Default		100.00		41.68		39.02		35.28		593.9		569.6		24.2		6.8		75.00
Sovereign		0.01		37.97		n.a.		1.39		79,046.8		68,569.3		10,477.5		727.9		75.00
Investment grade zone		0.00		37.97		n.a.		1.29		78,923.2		68,447.2		10,475.9		726.7		75.00
Non-investment grade zone		0.97		37.80		n.a.		63.21		123.6		122.0		1.5		1.2		75.00
Default		100.00		28.64		25.59		40.49		0.0		0.0		—		—		—
Bank		0.16		37.65		n.a.		24.64		5,622.1		3,894.1		1,727.9		736.2		75.00
Investment grade zone		0.08		37.72		n.a.		21.33		5,057.2		3,416.1		1,641.1		696.3		75.00
Non-investment grade zone		0.61		36.87		n.a.		54.33		563.3		476.5		86.8		39.9		75.00
Default		100.00		96.75		94.52		29.55		1.4		1.4		—		—		—
Equity exposure under PD/LGD approach		0.32		90.00		n.a.		127.15		4,221.3		4,171.0		50.3		—		—
Investment grade zone		0.07		90.00		n.a.		112.61		3,886.2		3,835.8		50.3		—		—
Non-investment grade zone		1.84		90.00		n.a.		283.03		330.4		330.4		—		—		—
Default		100.00		90.00		n.a.		1,192.50		4.6		4.6		—		—		—
Total		0.59		38.64		n.a.		21.55		167,158.0		133,536.3		33,621.6		23,281.2		74.99
Investment grade zone		0.04		39.32		n.a.		14.56		144,806.2		114,883.0		29,923.2		19,774.5		74.99
Non-investment grade zone		1.51		32.61		n.a.		67.45		21,751.6		18,077.5		3,674.1		3,499.8		75.00
Default		100.00		42.19		39.15		44.28		600.0		575.7		24.2		6.8		75.00

Notes:
1.	Investment grade zone includes obligor ratings A1 through B2, non-investment grade zone includes C1 through E2 (excluding E2R), and default includes E2R through H1.
2.	“Corporate” does not include specialized lending exposure under supervisory slotting criteria.
3.	Each asset class includes purchased receivables.
4.	The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted average of credit conversion factor.
5.	Regarding equity exposure under the PD/LGD approach, we recognized the risk-weighted assets by multiplying 1,250% by the expected loss (“EL”).

31

(Reference)Obligor ratings

Obligor ratings (major category)			Definition of ratings	Classification
A1–A3			Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is excellent.	Investment grade zone
B1–B2			Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, hence their level of credit risk is sufficient.
C1–C3			Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.	Non-investment grade zone
D1–D3			Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future changes in business environment is low.
E1			Obligors who require close watching going forward because there are problems with their borrowing conditions, such as reduced or suspended interest payments, problems with fulfillment such as de facto postponements of principal or interest payments, or problems with their financial positions as a result of their poor or unstable business conditions.
E2
	R	*
F1			Obligors who are not yet bankrupt but are in financial difficulties and are deemed to be very likely to go bankrupt in the future because they are finding it difficult to make progress in implementing their management improvement plans (including obligors who are receiving ongoing support from financial institutions).	Default
G1			Obligors who have not yet gone legally or formally bankrupt but who are substantially bankrupt because they are in serious financial difficulties and are not deemed to be capable of restructuring.
H1			Obligors who have already gone bankrupt, from both a legal and/or formal perspective.

* Obligors who have loans in need of monitoring (restructured loans and loans past due for three months or more) out of the obligors who require close watching going forward

32

(N) Portfolio by asset class and ratings segment (Retail)

	(Billions of yen, except percentages)
	As of September 30, 2016
	PD (EAD weighted average) (%)		LGD (EAD weighted average) (%)		EL default (EAD weighted average) (%)		Risk weight (EAD weighted average) (%)		EAD (Billions of yen)						Amount of undrawn commitments		Weighted average of credit conversion factor (%)
											On-balance sheet		Off-balance sheet
Residential mortgage		1.69		41.05		n.a.		33.41		9,562.8		9,424.3		138.5		5.5		75.00
Non-default		0.78		40.99		n.a.		33.42		9,475.2		9,338.5		136.6		5.5		75.00
Default		100.00		47.63		45.14		32.96		87.6		85.8		1.8		—		—
Qualifying revolving loan (retail)		3.22		76.66		n.a.		65.11		588.6		392.8		195.7		1,638.8		11.94
Non-default		3.09		76.67		n.a.		65.12		587.7		392.2		195.5		1,673.3		11.94
Default		100.00		71.93		67.75		55.34		0.8		0.6		0.1		1.5		12.54
Other retail		4.44		50.62		n.a.		48.25		2,379.3		2,364.1		15.1		17.2		63.98
Non-default		1.70		50.77		n.a.		48.55		2,312.8		2,301.1		11.6		13.5		55.52
Default		100.00		45.65		42.78		37.93		66.4		62.9		3.5		3.7		94.52
Total		2.29		44.54		n.a.		37.72		12,530.7		12,181.3		349.4		1,661.6		12.69
Non-default		1.06		44.51		n.a.		37.75		12,375.8		12,031.9		343.8		1,656.3		12.51
Default		100.00		46.91		44.25		35.21		154.9		149.3		5.5		5.2		70.65
	(Billions of yen, except percentages)
	As of September 30, 2017
	PD (EAD weighted average) (%)		LGD (EAD weighted average) (%)		EL default (EAD weighted average) (%)		Risk weight (EAD weighted average) (%)		EAD (Billions of yen)						Amount of undrawn commitments		Weighted average of credit conversion factor (%)
											On-balance sheet		Off-balance sheet
Residential mortgage		1.58		41.29		n.a.		33.69		9,218.6		9,100.6		118.0		7.9		75.00
Non-default		0.76		41.24		n.a.		33.64		9,142.5		9,026.0		116.5		7.9		75.00
Default		100.00		47.76		44.76		39.70		76.1		74.5		1.5		—		—
Qualifying revolving loan (retail)		3.29		76.82		n.a.		66.46		654.7		434.1		220.5		1,762.5		12.51
Non-default		3.19		76.83		n.a.		66.46		654.0		433.6		220.4		1,761.1		12.52
Default		100.00		71.49		66.38		67.69		0.6		0.5		0.1		1.4		11.61
Other retail		4.61		47.46		n.a.		44.77		2,062.3		2,048.0		14.3		15.8		64.92
Non-default		1.68		47.52		n.a.		44.85		2,001.0		1,989.9		11.0		12.4		56.74
Default		100.00		45.66		42.29		42.12		61.3		58.1		3.2		3.3		95.30
Total		2.19		44.31		n.a.		37.40		11,935.7		11,582.8		352.9		1,786.3		13.26
Non-default		1.05		44.28		n.a.		37.36		11,797.6		11,449.6		347.9		1,781.4		13.10
Default		100.00		46.95		43.86		40.91		138.1		133.1		4.9		4.8		69.88

Notes:
1.	Each asset class includes purchased receivables.
2.	The commitments that can be terminated at any time without condition or terminated automatically are not included in the amount of undrawn commitments and weighted average of credit conversion factor.

33

(O) Actual losses by asset class

	(Billions of yen)
	For the period from October 1, 2015 through September 30, 2016			For the period from October 1, 2016 through September 30, 2017
	Actual losses			Actual losses
Corporate		11.7			(81.2	)
Sovereign		0.0			0.0
Bank		(0.8	)		0.0