0001193125-19-220466.txt : 20190814 0001193125-19-220466.hdr.sgml : 20190814 20190814061634 ACCESSION NUMBER: 0001193125-19-220466 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20190814 FILED AS OF DATE: 20190814 DATE AS OF CHANGE: 20190814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MIZUHO FINANCIAL GROUP INC CENTRAL INDEX KEY: 0001335730 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33098 FILM NUMBER: 191022705 BUSINESS ADDRESS: STREET 1: 1-5-5, OTEMACHI CITY: CHIYODA-KU, TOKYO STATE: M0 ZIP: 100-8176 BUSINESS PHONE: 81-3-5224-1111 MAIL ADDRESS: STREET 1: 1-5-5, OTEMACHI CITY: CHIYODA-KU, TOKYO STATE: M0 ZIP: 100-8176 6-K 1 d771131d6k.htm FORM 6-K FORM 6-K

 

 

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 August 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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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.

 

Date:   August 14, 2019
Mizuho Financial Group, Inc.
By:  

/s/ Makoto Umemiya

Name:   Makoto Umemiya
Title:   Managing Executive Officer / Group CFO


UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2019

On August 14, 2019, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2019 prepared in accordance with Japanese GAAP as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects—Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.

 

- 1 -


Financial Information

 

1.

The quarterly consolidated financial statements of Mizuho Financial Group, Inc. (“MHFG”) are prepared in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64 of 2007). The classification of assets and liabilities and that of income and expenses are in accordance with the “Ordinance for Enforcement of the Banking Act” (Ordinance of the Ministry of Finance No. 10 of 1982).

 

2.

Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial statements of MHFG for the three months ended June 30, 2019, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

 

- 2 -


I.

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

 

    

(Millions of yen)

 
    

As of

March 31, 2019

   

As of

June 30, 2019

 

Assets

          

Cash and Due from Banks

        45,108,602          40,632,524  

Call Loans and Bills Purchased

        648,254          537,815  

Receivables under Resale Agreements

        12,997,628          15,099,037  

Guarantee Deposits Paid under Securities Borrowing Transactions

        2,578,133          2,455,503  

Other Debt Purchased

        2,828,959          3,057,012  

Trading Assets

        12,043,608          15,283,145  

Money Held in Trust

        351,889          361,297  

Securities

   *2      29,774,489     *2      29,533,185  

Loans and Bills Discounted

   *1      78,456,935     *1      79,049,661  

Foreign Exchange Assets

        1,993,668          1,965,247  

Derivatives other than for Trading Assets

        1,328,227          1,498,187  

Other Assets

        4,229,589          4,911,392  

Tangible Fixed Assets

        1,037,006          1,080,199  

Intangible Fixed Assets

        620,231          617,221  

Net Defined Benefit Asset

        982,804          989,378  

Deferred Tax Assets

        37,960          40,808  

Customers’ Liabilities for Acceptances and Guarantees

        6,062,053          5,937,165  

Reserves for Possible Losses on Loans

        (287,815        (281,674
  

 

   

 

 

Total Assets

        200,792,226          202,767,108  
  

 

   

 

 

 

- 3 -


    

(Millions of yen)

 
    

As of

March 31, 2019

   

As of

June 30, 2019

 

Liabilities

                    

Deposits

        124,311,025          121,852,608  

Negotiable Certificates of Deposit

        13,338,571          13,277,499  

Call Money and Bills Sold

        2,841,931          2,559,239  

Payables under Repurchase Agreements

        14,640,439          17,864,461  

Guarantee Deposits Received under Securities Lending Transactions

        1,484,584          1,911,860  

Commercial Paper

        941,181          459,600  

Trading Liabilities

        8,325,520          9,823,365  

Borrowed Money

        3,061,504          1,993,166  

Foreign Exchange Liabilities

        669,578          485,195  

Short-term Bonds

        355,539          353,829  

Bonds and Notes

        8,351,071          8,076,261  

Due to Trust Accounts

        1,102,073          1,112,693  

Derivatives other than for Trading Liabilities

        1,165,602          1,216,332  

Other Liabilities

        4,512,325          6,594,675  

Reserve for Bonus Payments

        68,117          15,643  

Reserve for Variable Compensation

        2,867          3,292  

Net Defined Benefit Liability

        60,873          60,969  

Reserve for Director and Corporate Auditor Retirement Benefits

        1,389          1,077  

Reserve for Possible Losses on Sales of Loans

        630          1,076  

Reserve for Contingencies

        4,910          5,087  

Reserve for Reimbursement of Deposits

        19,068          17,296  

Reserve for Reimbursement of Debentures

        25,566          24,043  

Reserves under Special Laws

        2,473          2,472  

Deferred Tax Liabilities

        185,974          173,096  

Deferred Tax Liabilities for Revaluation Reserve for Land

        63,315          63,315  

Acceptances and Guarantees

        6,062,053          5,937,165  
  

 

   

 

 

Total Liabilities

        191,598,188          193,885,325  
  

 

   

 

 

Net Assets

          

Common Stock and Preferred Stock

        2,256,767          2,256,767  

Capital Surplus

        1,138,449          1,137,550  

Retained Earnings

        3,915,521          3,982,168  

Treasury Stock

        (7,703        (6,433
  

 

   

 

 

Total Shareholders’ Equity

        7,303,034          7,370,053  
  

 

   

 

 

Net Unrealized Gains (Losses) on Other Securities

        1,186,401          1,079,290  

Deferred Gains or Losses on Hedges

        (22,282        34,121  

Revaluation Reserve for Land

        137,772          137,772  

Foreign Currency Translation Adjustments

        (111,057        (122,144

Remeasurements of Defined Benefit Plans

        254,936          244,373  
  

 

   

 

 

Total Accumulated Other Comprehensive Income

        1,445,770          1,373,414  
  

 

   

 

 

Stock Acquisition Rights

        707          230  

Non-controlling Interests

        444,525          138,084  
  

 

   

 

 

Total Net Assets

        9,194,038          8,881,782  
  

 

   

 

 

Total Liabilities and Net Assets

        200,792,226          202,767,108  
  

 

   

 

 

 

- 4 -


(2) Quarterly Consolidated Statement of Income and

      Quarterly Consolidated Statement of Comprehensive Income

      Quarterly Consolidated Statement of Income

 

 

    

(Millions of yen)

 
    

For the three months ended

June 30, 2018

   

For the three months ended

June 30, 2019

 

Ordinary Income

                                    957,667                                   988,825  

Interest Income

       472,864         528,821  

Interest on Loans and Bills Discounted

       287,227         327,955  

Interest and Dividends on Securities

       73,376         58,672  

Fiduciary Income

       11,476         14,017  

Fee and Commission Income

       166,932         176,539  

Trading Income

       74,455         90,449  

Other Operating Income

       89,272         122,732  

Other Ordinary Income

   *1     142,667     *1     56,266  

Ordinary Expenses

       748,562         768,975  

Interest Expenses

       277,446          348,850   

Interest on Deposits

       101,705         135,667  

Fee and Commission Expenses

       40,769         42,064  

Trading Expenses

       —           221  

Other Operating Expenses

       21,032         19,687  

General and Administrative Expenses

       355,066         328,430  

Other Ordinary Expenses

   *2     54,247     *2     29,722  
  

 

   

 

 

Ordinary Profits

       209,104          219,849  
  

 

   

 

 

Extraordinary Gains

   *3     8,031     *3     910  

Extraordinary Losses

   *4     821     *4     3,384  
  

 

   

 

 

Income before Income Taxes

       216,313         217,375  
  

 

   

 

 

Income Taxes:

        

Current

       45,765         54,908  

Deferred

       3,228         (3,635
  

 

   

 

 

Total Income Taxes

       48,993         51,273  
  

 

   

 

 

Profit

       167,320         166,102  
  

 

   

 

 

Profit Attributable to Non-controlling Interests

       6,304         3,663  
  

 

   

 

 

Profit Attributable to Owners of Parent

       161,015         162,438  
  

 

   

 

 

 

- 5 -


      Quarterly Consolidated Statement of Comprehensive Income

 

    

(Millions of yen)

 
    

For the three months ended

June 30, 2018

   

For the three months ended

June 30, 2019

 

Profit

       167,320         166,102  

Other Comprehensive Income

          4,441         (71,780

Net Unrealized Gains (Losses) on Other Securities

       52,684         (106,210

Deferred Gains or Losses on Hedges

                                      (20,443                                  56,455  

Foreign Currency Translation Adjustments

       (13,922       (11,401

Remeasurements of Defined Benefit Plans

       (9,720       (10,478

Share of Other Comprehensive Income of Associates Accounted for Using Equity Method

       (4,156       (145
  

 

   

 

 

Comprehensive Income

       171,761         94,321  
  

 

   

 

 

(Breakdown)

        

Comprehensive Income Attributable to Owners of Parent

       167,705         90,082  

Comprehensive Income Attributable to Non-controlling Interests

       4,055         4,239  

 

- 6 -


Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

MHFG has applied “Leases” (IFRS 16 and ASU 2016-02) at some consolidated subsidiaries from the first quarter ended June 30, 2019. Accordingly, lessees recognize assets and liabilities for all leases as a general rule.

In accordance with transitional treatment, MHFG has recognized the impact of this accounting standard cumulatively as of the date of adoption for balances at the beginning of the first quarter ended June 30, 2019.

The impact on the consolidated financial statements for the first quarter ended June 30, 2019 is immaterial.

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business to contribute to the creation of value for diverse stakeholders and realize improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort in performing his or her duties, and also as consideration for such exertion of effort.

 

(1)

Outline of the Program

The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The framework consists of the stock compensation program based on the Company Group Officer’s position in their respective company (“Stock Compensation I”) and the stock compensation program based on the performance evaluation of the Company Group (“Stock Compensation II”).

Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their position. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.

Stock Compensation II will be paid in the form of shares of MHFG and will be deferred over three years, which is calculated based on the Company Group’s performance, the performance of organizations (in-house companies and units, etc.) that each Company Group Officer is in charge of and the performance of each Company Group Officer. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.

Upon the payment of stock compensation under the Program, MHFG may, for a certain portion, pay a monetary amount equivalent to the market value of its stock in lieu of stock compensation in accordance with the Rules on Distribution of Shares.

Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.

 

- 7 -


(2)

MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of June 30, 2019 was ¥3,457 million for 18,323 thousand shares (the carrying amount as of March 31, 2019 was ¥3,569 million for 18,917 thousand shares).

 

- 8 -


Notes to Quarterly Consolidated Balance Sheet

 

*1.

Non-Accrual, Past Due & Restructured Loans, which are included in Loans and Bills Discounted, are as follows:

 

     (Millions of yen)  
     As of March 31, 2019      As of June 30, 2019  

Loans to Bankrupt Obligors

                                       11,393                                          10,336  

Non-Accrual Delinquent Loans

     379,225        421,735  

Loans Past Due for Three Months or More

     436        338  

Restructured Loans

     195,366        213,991  

Total

     586,422        646,401  

The amounts given in the above table are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

 

*2.

Amounts of liabilities for guarantees on corporate bonds included in Securities, which were issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)

 

     (Millions of yen)  
     As of March 31, 2019      As of June 30, 2019  
                                  1,503,395                                     1,499,468  

Notes to Quarterly Consolidated Statement of Income

 

*1.

Other Ordinary Income includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Gains on Sales of Stocks

                                       98,447                                          40,336  

Share of profit of entities accounted for using equity method

     4,215        11,451  

 

*2.

Other Ordinary Expenses includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Losses on Sales of Stocks

                                          9,308                                             7,090  

 

*3.

Extraordinary Gains includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Gains on Disposition of Fixed Assets

                                          1,138                                                909  

Gains on Cancellation of Employee Retirement Benefit Trust

     6,890        —    

 

*4.

Extraordinary Losses is as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Losses on Impairment of Fixed Assets

                                             448                                             2,508  

Losses on Disposition of Fixed Assets

     373        876  

 

- 9 -


Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2019. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2018 and 2019 are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Depreciation

                                       42,765                                          30,107  

Amortization of Goodwill

     1,030        1,019  

Changes in Net Assets

For the three months ended June 30, 2018

 

1.

Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of yen)
    Cash Dividends
per Share

(Yen)
    Record Date   Effective Date   Resource of
Dividends
May 15, 2018  

Common Stock

    95,186       3.75     March 31, 2018   June 4, 2018   Retained
Earnings

The Board of Directors

 

(Note)    Cash dividends based on the resolution of the Board of Directors held on May 15, 2018 include ¥49 million of cash dividends on treasury stock held by BBT trust account.

For the three months ended June 30, 2019

 

1.

Cash dividends paid

 

Resolution

 

Type

  Cash Dividends
(Millions of Yen)
    Cash Dividends
per Share
(Yen)
    Record Date   Effective Date   Resource of
Dividends
May 15, 2019  

Common Stock

    95,197       3.75     March 31, 2019   June 4, 2019   Retained

Earnings

The Board of Directors

 

(Note)    Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of cash dividends on treasury stock held by BBT trust account.

 

- 10 -


Business Segment Information, etc.

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.

 

- 11 -


2.

Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others, and Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others by reportable segment

For the three months ended June 30, 2018

 

     (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

     164,621       103,397          87,213        119,606        12,429        17,833       505,099  

General and administrative expenses (excluding Non-Recurring Losses and others)

     180,799       52,298        54,901        51,876        6,737        11,055       357,666  

Equity in income from investments in affiliates

     1,435       452        1,731        —          255        342       4,215  

Amortization of goodwill and others

     91       106        92        586        2,000        528       3,403  

Others

     —         —          —          —          —          (5,280     (5,280

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

     (14,834     51,445        33,951        67,144        3,947        1,310       142,963  

 

(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 ¥29,347 million, of which ¥25,063 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.    Following the change in allocation method for transactions between each segment and “Others” made in April, 2019, reclassification was made on the above table to reflect the relevant change.

 

- 12 -


For the three months ended June 30, 2019

 

     (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

     151,678       106,895        103,718        135,245        11,574        16,186       525,296  

General and administrative expenses (excluding Non-Recurring Losses and others)

     164,891       50,082        58,596        51,158        6,994        6,875       338,596  

Equity in income from investments in affiliates

     2,482       477        3,120        —          165        5,207       11,451  

Amortization of goodwill and others

     91       106        92        586        1,943        495       3,313  

Others

     —         —          —          —          —          (3,004     (3,004

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

     (10,822     57,184        48,150        83,501        2,802        11,018       191,833  

 

(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 ¥3,560 million, of which ¥1,677 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.

 

- 13 -


3.

The difference between the total amounts of 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 of reportable segments and the recorded amounts in the Quarterly Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above total amounts of 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 derived from internal management reporting are different from Income before income taxes recorded in the Quarterly Consolidated Statement of Income.

The contents of the difference for the three months ended June 30, 2018 and 2019, are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains (Losses) related to ETFs and others

     142,963        191,833  

Credit Costs for Trust Accounts

     —          —    

General and Administrative Expenses (non-recurring losses)

     6,003        13,479  

Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)

     (13,380      (5,299

Gains on Reversal of Reserves for Possible Losses on Loans, and others

     35,951        3,677  

Net Gains (Losses) related to Stocks—Net Gains (Losses) related to ETFs and others

     50,974        24,654  

Net Extraordinary Gains (Losses)

     7,209        (2,474

Others

     (13,408      (8,495
  

 

 

    

 

 

 

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income

     216,313        217,375  
  

 

 

    

 

 

 

 

- 14 -


Securities

 

*

In addition to “Securities” on the quarterly consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. Unlisted stocks and others, the fair values of which are deemed extremely difficult to determine, are excluded.

 

1.

Bonds Held to Maturity

As of March 31, 2019

 

                                                                                                                                                              
     (Millions of yen)  
     Consolidated Balance Sheet
Amount
     Fair Value      Difference  

Japanese Government Bonds

     1,119,898        1,139,806        19,907  

Foreign Bonds

     482,311        469,782        (12,528

Total

     1,602,209        1,609,588        7,378  

As of June 30, 2019

 

                                                                                                                                                              
    

 

     (Millions of yen)  
     Quarterly Consolidated
Balance Sheet Amount
     Fair Value      Difference  

Japanese Government Bonds

     879,903        899,272        19,368  

Foreign Bonds

     446,516        437,306        (9,210

Total

     1,326,420        1,336,578        10,158  

 

(Note)

The fair value is based on market prices as of June 30, 2019 (March 31, 2019) and other data.

 

2.

Other Securities

As of March 31, 2019

 

     (Millions of yen)  
     Acquisition Cost      Consolidated Balance Sheet
Amount
     Difference  

Stocks

     1,419,898        3,143,560        1,723,661  

Bonds

     14,781,679        14,786,949        5,270  

Japanese Government Bonds

     11,890,213        11,896,134        5,921  

Japanese Local Government Bonds

     208,307        209,891        1,583  

Japanese Corporate Bonds

     2,683,158        2,680,923        (2,234

Other

     9,956,100        9,917,034        (39,065

Foreign Bonds

     7,394,627        7,418,321        23,694  

Other Debt Purchased

     164,925        166,115        1,189  

Other

     2,396,547        2,332,597        (63,949

Total

     26,157,679        27,847,545        1,689,866  

 

- 15 -


As of June 30, 2019

 

     (Millions of yen)  
     Acquisition Cost         Quarterly Consolidated   
Balance Sheet Amount
     Difference  

Stocks

     1,404,501        2,946,631        1,542,130  

Bonds

     14,458,201        14,466,131        7,930  

Japanese Government Bonds

     11,549,485        11,555,122        5,636  

Japanese Local Government Bonds

     221,888        222,818        929  

Japanese Corporate Bonds

     2,686,826        2,688,191        1,364  

Other

     10,409,298        10,402,752        (6,546

Foreign Bonds

     7,529,244        7,564,903        35,658  

Other Debt Purchased

     164,010        165,396        1,385  

Other

     2,716,043        2,672,452        (43,590

Total

     26,272,001        27,815,515        1,543,513  

 

(Notes)   1.    Unrealized Gains (Losses) include ¥30,128 million and ¥38,000 million, which were recognized in the statements of income for the year ended March 31, 2019 and the three months ended June 30, 2019, respectively, by applying the fair-value hedge method.
  2.    As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value during the last month of the three months ended June 30, 2019 (last month of the fiscal year ended March 31, 2019), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value as of June 30, 2019 (March 31, 2019).
  3.    Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the three months ended June 30, 2019 (the fiscal year ended March 31, 2019) (impairment (devaluation)), if the fair value (primarily the closing market price as of June 30, 2019 (March 31, 2019)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.
     The amount of impairment (devaluation) for the fiscal year ended March 31, 2019 was ¥4,736 million.
     The amount of impairment (devaluation) for the three months ended June 30, 2019 was ¥4,995 million.
     The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:
    

•   Securities whose fair value is 50% or less of the acquisition cost

    

•   Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower

  4.    Floating-rate Japanese Government Bonds
     Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value on the quarterly consolidated balance sheet (consolidated balance sheet).
     In deriving the reasonably calculated prices, we used the Discounted Cash Flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

 

- 16 -


Money Held in Trust

 

1.

Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

 

2.

Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)

 

As of March 31, 2019         
     (Millions of yen)  
     Acquisition Cost      Consolidated Balance Sheet
Amount
     Difference  

Other in Money Held in Trust

     4,641        4,641        —    
As of June 30, 2019         
     (Millions of yen)  
     Acquisition Cost      Quarterly Consolidated
Balance Sheet Amount
     Difference  

Other in Money Held in Trust

     5,430        5,430        —    

 

- 17 -


Derivatives Information

 

(1)

Interest Rate-Related Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      10,208,343        (1,049     (1,049
   Options      435,480        56       (60

Over-the-Counter

   FRAs      48,732,236        (3,005     (3,005
   Swaps      966,738,777        149,547       149,547  
   Options      13,342,004        865       865  

Inter-Company or Internal Transactions

   Swaps      17,711,961        (6,133     (6,133
     

 

 

    

 

 

   

 

 

 

Total

     —          140,280       140,163  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
  2.    Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Futures

     10,358,510        (2,857     (2,857
  

Options

     330,652        (240     (182

Over-the-Counter

  

FRAs

     47,867,377        (2,715     (2,715
  

Swaps

     992,698,676        232,165       232,165  
  

Options

     17,312,207        (11,676     (11,676

Inter-Company or Internal Transactions

  

Swaps

     18,924,273        (80,473     (80,473
     

 

 

    

 

 

   

 

 

 

Total

     —          134,201       134,259  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
  2.    Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

 

- 18 -


(2)

Currency-Related Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      70,451        —         —    

Over-the-Counter

   Swaps      51,184,817        169,309         87,121  
   Forwards      104,139,403        13,191       13,191  
   Options      7,453,521        5,154       998   

Inter-Company or Internal Transactions

   Swaps      2,980,292        (132,328       20,267  
   Forwards      10,465        84       84  
     

 

 

    

 

 

   

 

 

 

Total

     —          55,411       121,663  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
   2.    The following transactions are excluded from the above table:
     

•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.

     

•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the consolidated balance sheet.

     

•   Transactions denominated in foreign currencies which are eliminated in consolidation.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      53,452        —         —    

Over-the-Counter

   Swaps      52,589,964        130,489       60,438  
   Forwards      102,424,133        18,250         18,250   
   Options      6,758,098        9,270       3,071  

Inter-Company or Internal Transactions

   Swaps      2,901,861        (185,299     17,140  
   Forwards      9,498        48       48  
     

 

 

    

 

 

   

 

 

 

Total

     —          (27,241       98,949  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
   2.    The following transactions are excluded from the above table:
     

•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.

     

•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the quarterly consolidated balance sheet.

     

•   Transactions denominated in foreign currencies which are eliminated in consolidation.

 

- 19 -


(3)

Stock-Related Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      1,024,237        (7,874     (7,874
   Index Futures Options      3,085,336        (18,874     (10,406

Over-the-Counter

   Equity Linked Swaps      332,369        27,124         27,124  
   Options      695,868        16,828       16,828  
   Other      371,911        283       283  
     

 

 

    

 

 

   

 

 

 

Total

     —          17,487       25,955  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
   2.    Derivative transactions qualifying for hedge accounting are excluded from the above table.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      937,612        (4,775     (4,775
   Index Futures Options      3,297,648        (21,509     (6,795

Over-the-Counter

   Equity Linked Swaps      396,520        30,269        30,269  
   Options      708,741        15,088       15,088  
   Other      359,316        1,355       1,355  
     

 

 

    

 

 

   

 

 

 

Total

     —          20,427       35,142  
     

 

 

    

 

 

   

 

 

 

 

(Notes)    1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
   2.    Derivative transactions qualifying for hedge accounting are excluded from the above table.

 

- 20 -


(4)

Bond-Related Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      1,467,056              858            858  
   Futures Options      382,381        65       (64

Over-the-Counter

   Options      1,265,997        (642     (659
   Other      269,146        (617     (617
     

 

 

    

 

 

   

 

 

 

Total

     —          (336     (482
     

 

 

    

 

 

   

 

 

 

 

(Note)   The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      2,134,463        (1,166     (1,166
   Futures Options      251,672              132       (156

Over-the-Counter

   Options      1,491,554        (976     (1,021
   Other      87,626        199            199  
     

 

 

    

 

 

   

 

 

 

Total

     —          (1,810     (2,144
     

 

 

    

 

 

   

 

 

 

 

(Note)   The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

(5)

Commodity-Related Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      25,117        1,288       1,288  
   Futures Options      233        (11              3  

Over-the-Counter

   Options         412,211           1,326         1,326   
     

 

 

    

 

 

   

 

 

 

Total

     —          2,603       2,618  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
  2.    Commodities include oil, copper, aluminum and others.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      28,298        573            573  
   Futures Options      775        —         (7

Over-the-Counter

   Options         389,829           1,390          1,390  
     

 

 

    

 

 

   

 

 

 

Total

     —          1,964       1,956  
     

 

 

    

 

 

   

 

 

 

 

(Notes)   1.    The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
  2.    Commodities include oil, copper, aluminum and others.

 

- 21 -


(6)

Credit Derivative Transactions

As of March 31, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives      3,093,756           1,343          1,343   
     

 

 

    

 

 

   

 

 

 

Total

        —          1,343       1,343  
     

 

 

    

 

 

   

 

 

 

 

(Note)   The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of June 30, 2019

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives      3,353,995          (1,522     (1,522
     

 

 

    

 

 

   

 

 

 

Total

        —          (1,522     (1,522
     

 

 

    

 

 

   

 

 

 

 

(Note)   The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

- 22 -


Per Share Information

Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are based on the following information:

 

     For the three months ended
June 30, 2018
     For the three months ended
June 30, 2019
 

(1)   Net Income per Share of Common Stock

   Yen      6.34        6.40  

(The basis used for calculating Net Income per Share of Common Stock)

     

Profit Attributable to Owners of Parent

   Millions of yen      161,015        162,438  

Amount not attributable to Common Stock

   Millions of yen      —          —    

Profit Attributable to Owners of Parent related to Common Stock

   Millions of yen      161,015        162,438  

Average Outstanding Shares of Common Stock (during the period)

   Thousands of shares      25,364,804        25,360,510  

(2)   Diluted Net Income per Share of Common Stock

   Yen      6.34        6.40  

(The basis used for calculating Diluted Net Income per Share of Common Stock)

     

Adjustment to Profit Attributable to Owners of Parent

   Millions of yen      —          —    

Increased Number of Shares of Common Stock

   Thousands of shares      5,302        2,504  

Stock Acquisition Rights

   Thousands of shares      5,302        2,504  

Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects and in which significant changes occurred after the end of the previous fiscal year

        —          —    

 

(Note)    In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the three months ended June 30, 2018, was 13,319 thousand and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2019, was 18,662 thousand.

 

- 23 -


II.

Others

At the meeting of the Board of Directors held on May 15, 2019, the year-end cash dividends for the 17th term were resolved as follows:

 

Total amount of year-end cash dividends

     ¥95,197 million  

Year-end cash dividends per share

  

Common Stock

     ¥3.75  

Effective date and starting date of dividend payments

     June 4, 2019  

 

- 24 -