0001193125-18-247768.txt : 20180814 0001193125-18-247768.hdr.sgml : 20180814 20180814060859 ACCESSION NUMBER: 0001193125-18-247768 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20180814 FILED AS OF DATE: 20180814 DATE AS OF CHANGE: 20180814 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: 181014121 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 d545365d6k.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 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-                    .

 

 

 


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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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, 2018
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, 2018

On August 14, 2018, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2018 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, 2018, 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, 2018

   

As of

June 30, 2018

 

Assets

          

Cash and Due from Banks

        47,725,360          46,205,276  

Call Loans and Bills Purchased

        715,149          1,940,563  

Receivables under Resale Agreements

        8,080,873          9,709,658  

Guarantee Deposits Paid under Securities Borrowing Transactions

        4,350,527          2,169,172  

Other Debt Purchased

        2,713,742          2,593,511  

Trading Assets

        10,507,133          12,461,929  

Money Held in Trust

        337,429          308,716  

Securities

   *2      34,183,033     *2      33,597,118  

Loans and Bills Discounted

   *1      79,421,473     *1      80,797,606  

Foreign Exchange Assets

        1,941,677          2,012,127  

Derivatives other than for Trading Assets

        1,807,999          1,614,184  

Other Assets

        4,588,484          5,185,418  

Tangible Fixed Assets

        1,111,128          1,100,849  

Intangible Fixed Assets

        1,092,708          1,084,923  

Net Defined Benefit Asset

        996,173          977,672  

Deferred Tax Assets

        47,839          43,524  

Customers’ Liabilities for Acceptances and Guarantees

        5,723,186          6,017,315  

Reserves for Possible Losses on Loans

        (315,621        (266,950
  

 

   

 

 

Total Assets

        205,028,300          207,552,619  
  

 

   

 

 

 

- 3 -


    

(Millions of yen)

 
    

As of

March 31, 2018

   

As of

June 30, 2018

 

Liabilities

          

Deposits

        125,081,233          125,836,832  

Negotiable Certificates of Deposit

        11,382,590          12,032,532  

Call Money and Bills Sold

        2,105,293          2,551,035  

Payables under Repurchase Agreements

        16,656,828          16,421,312  

Guarantee Deposits Received under Securities Lending Transactions

        1,566,833          1,461,051  

Commercial Paper

        710,391          753,308  

Trading Liabilities

        8,121,543          7,884,107  

Borrowed Money

        4,896,218          4,917,467  

Foreign Exchange Liabilities

        445,804          440,990  

Short-term Bonds

        362,185          335,948  

Bonds and Notes

        7,544,256          7,872,869  

Due to Trust Accounts

        4,733,131          4,587,255  

Derivatives other than for Trading Liabilities

        1,514,483          1,387,551  

Other Liabilities

        3,685,585          4,797,631  

Reserve for Bonus Payments

        66,872          16,055  

Reserve for Variable Compensation

        3,242          4,085  

Net Defined Benefit Liability

        58,890          58,842  

Reserve for Director and Corporate Auditor Retirement Benefits

        1,460          1,269  

Reserve for Possible Losses on Sales of Loans

        1,075          2,578  

Reserve for Contingencies

        5,622          5,342  

Reserve for Reimbursement of Deposits

        20,011          18,064  

Reserve for Reimbursement of Debentures

        30,760          29,561  

Reserves under Special Laws

        2,361          2,358  

Deferred Tax Liabilities

        421,002          430,894  

Deferred Tax Liabilities for Revaluation Reserve for Land

        66,186          65,948  

Acceptances and Guarantees

        5,723,186          6,017,315  
  

 

   

 

 

Total Liabilities

        195,207,054          197,932,212  
  

 

   

 

 

Net Assets

          

Common Stock and Preferred Stock

        2,256,548          2,256,767  

Capital Surplus

        1,134,922          1,138,449  

Retained Earnings

        4,002,835          4,069,202  

Treasury Stock

        (5,997        (6,709
  

 

   

 

 

Total Shareholders’ Equity

        7,388,309          7,457,709  
  

 

   

 

 

Net Unrealized Gains (Losses) on Other Securities

        1,392,392          1,447,258  

Deferred Gains or Losses on Hedges

        (67,578        (88,011

Revaluation Reserve for Land

        144,277          143,738  

Foreign Currency Translation Adjustments

        (85,094        (102,730

Remeasurements of Defined Benefit Plans

        293,536          283,430  
  

 

   

 

 

Total Accumulated Other Comprehensive Income

        1,677,534          1,683,685  
  

 

   

 

 

Stock Acquisition Rights

        1,163          728  

Non-controlling Interests

        754,239          478,282  
  

 

   

 

 

Total Net Assets

        9,821,246          9,620,407  
  

 

   

 

 

Total Liabilities and Net Assets

        205,028,300          207,552,619  
  

 

   

 

 

 

- 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, 2017

   

For the three months ended
June 30, 2018

 

Ordinary Income

                       793,607                         957,667   

Interest Income

       381,591         472,864   

Interest on Loans and Bills Discounted

       246,024         287,227  

Interest and Dividends on Securities

       59,730         73,376  

Fiduciary Income

       10,942         11,476  

Fee and Commission Income

       156,381         166,932  

Trading Income

       57,374         74,455  

Other Operating Income

       86,592         89,272  

Other Ordinary Income

                     *1     100,724                       *1     142,667  

Ordinary Expenses

       651,263         748,562  

Interest Expenses

       188,736         277,446  

Interest on Deposits

       78,477         101,705  

Fee and Commission Expenses

       40,431         40,769  

Other Operating Expenses

       23,611         21,032  

General and Administrative Expenses

       362,106         355,066  

Other Ordinary Expenses

   *2     36,377     *2     54,247  
  

 

   

 

 

Ordinary Profits

       142,344         209,104  
  

 

   

 

 

Extraordinary Gains

   *3     1,659     *3     8,031  

Extraordinary Losses

   *4     1,821     *4     821  
  

 

   

 

 

Income before Income Taxes

       142,182         216,313  
  

 

   

 

 

Income Taxes:

        

Current

       50,611         45,765  

Deferred

       (36,991       3,228  
  

 

   

 

 

Total Income Taxes

       13,619         48,993  
  

 

   

 

 

Profit

       128,562         167,320  
  

 

   

 

 

Profit Attributable to Non-controlling Interests

       10,272         6,304  
  

 

   

 

 

Profit Attributable to Owners of Parent

       118,290         161,015  
  

 

   

 

 

 

- 5 -


      Quarterly Consolidated Statement of Comprehensive Income

 

    

(Millions of yen)

 
    

For the three months ended
June 30, 2017

   

For the three months ended
June 30, 2018

 

Profit

                       128,562                         167,320  

Other Comprehensive Income

       53,619             4,441  

Net Unrealized Gains (Losses) on Other Securities

       63,494         52,684  

Deferred Gains or Losses on Hedges

            910         (20,443

Revaluation Reserve for Land

       (0       —    

Foreign Currency Translation Adjustments

                              (4,019                              (13,922

Remeasurements of Defined Benefit Plans

       3,973         (9,720

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

       (10,737       (4,156
  

 

   

 

 

Comprehensive Income

       182,182         171,761  
  

 

   

 

 

(Breakdown)

        

Comprehensive Income Attributable to Owners of Parent

       174,934         167,705  

Comprehensive Income Attributable to Non-controlling Interests

       7,247         4,055  

 

- 6 -


Notes to Quarterly Consolidated Financial Statements

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing 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 performance-based 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 number of MHFG’s shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.

A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.

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

 

(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, 2018 was ¥2,424 million for 13,319 thousand shares (the carrying amount as of March 31, 2018 was ¥2,424 million for 13,319 thousand shares).

 

- 7 -


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, 2018      As of June 30, 2018  

Loans to Bankrupt Obligors

     21,271        19,729  

Non-Accrual Delinquent Loans

     332,702        309,807  

Loans Past Due for Three Months or More

     617        1,218  

Restructured Loans

     240,777        208,000  

Total

     595,369        538,755  

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, 2018      As of June 30, 2018  
     1,309,432        1,340,269  

Notes to Quarterly Consolidated Statement of Income

 

*1.

Other Ordinary Income includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2017
     For the three months ended
June 30, 2018
 

Gains on Sales of Stocks

          66,824             98,447  

Reversal of Reserves for Possible Losses on Loans

     21,906        32,981  

 

*2.

Other Ordinary Expenses includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2017
     For the three months ended
June 30, 2018
 

Losses on Write-offs of Loans

            4,978             13,282  

 

*3.

Extraordinary Gains includes the following:

 

     (Millions of yen)  
     For the three months ended
June 30, 2017
     For the three months ended
June 30, 2018
 

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, 2017
     For the three months ended
June 30, 2018
 

Losses on Impairment of Fixed Assets

            1,150        448  

Losses on Disposition of Fixed Assets

               671                  373  

 

- 8 -


Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2018. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2017 and 2018 are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2017
     For the three months ended
June 30, 2018
 

Depreciation

          42,629             42,765  

Amortization of Goodwill

     1,040        1,030  

Changes in Net Assets

For the three months ended June 30, 2017

 

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, 2017   Common Stock     95,173       3.75     March 31, 2017   June 5, 2017  

Retained

Earnings

The Board of

Directors

         

 

(Note)

Cash dividends based on the resolution of the Board of Directors held on May 15, 2017 include ¥33 million of cash dividends on treasury stock held by BBT trust account.

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.

 

- 9 -


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.

 

- 10 -


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, 2017

 

     (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

     160,000         80,600        71,100        120,800        12,600          8,961          454,061  

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

     179,600       50,500        59,700        49,100        7,100        5,357       351,357  

Equity in income from investments in affiliates

     2,800       300        800        —          100        397       4,397  

Amortization of goodwill and others

     100       100        100        600        2,000        570       3,470  

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

     (16,900       30,300          12,100        71,100        3,600        (1,849     98,350  

 

(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 ¥13,957 million, of which ¥13,400 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, 2018, reclassification was made on the above table to reflect the relevant change.

 

- 11 -


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

     165,200       103,600        90,700        119,600        12,400        13,599          505,099  

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

     181,300       51,100        58,300        50,400        6,700        9,866       357,666  

Equity in income from investments in affiliates

     1,400       500        1,800        —          300        215       4,215  

Amortization of goodwill and others

     100       100        100        600        2,000        503       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

     (14,800       52,900          34,100        68,600        4,000        (1,836     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 ¥25,000 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.

 

- 12 -


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, 2017 and 2018, are as follows:

 

    (Millions of yen)  
    For the three months ended
June 30, 2017
    For the three months ended
June 30, 2018
 

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

    98,350       142,963  

Credit Costs for Trust Accounts

    —         —    

General and Administrative Expenses (non-recurring losses)

    (7,278     6,003  

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

    (5,141     (13,380

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

    24,345       35,951  

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

    48,348       50,974  

Net Extraordinary Gains (Losses)

    (161     7,209  

Others

    (16,281     (13,408
 

 

 

   

 

 

 

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income

    142,182       216,313  
 

 

 

   

 

 

 

 

- 13 -


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, 2018

 

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

Japanese Government Bonds

     1,959,909        1,984,382        24,472  

Foreign Bonds

     555,920        537,464        (18,455

Total

     2,515,830        2,521,846        6,016  

As of June 30, 2018

 

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

Japanese Government Bonds

     1,809,901        1,832,402        22,500  

Foreign Bonds

     548,525        529,253        (19,271

Total

     2,358,426        2,361,655        3,228  

 

(Note)

The fair value is based on market prices as of June 30, 2018 (March 31, 2018) and other data.

 

2.

Other Securities

As of March 31, 2018

 

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

Stocks

     1,564,867        3,582,240        2,017,372  

Bonds

     16,530,192        16,535,604        5,411  

Japanese Government Bonds

     13,331,477        13,332,094        616  

Japanese Local Government Bonds

     236,710        239,333        2,622  

Short-term Bonds

     99        99        —    

Japanese Corporate Bonds

     2,961,904        2,964,076        2,172  

Other

     11,531,850        11,463,293        (68,557

Foreign Bonds

     8,495,236        8,329,141        (166,095

Other Debt Purchased

     185,614        186,533        918  

Other

     2,850,999        2,947,619        96,620  

Total

     29,626,911        31,581,138        1,954,226  

 

- 14 -


As of June 30, 2018

 

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

Stocks

     1,541,575        3,681,670        2,140,095  

Bonds

     15,913,908        15,911,767        (2,140

Japanese Government Bonds

     12,716,243        12,712,622        (3,620

Japanese Local Government Bonds

     182,597        183,370        772  

Short-term Bonds

     99        99        —    

Japanese Corporate Bonds

     3,014,967        3,015,674        706  

Other

     11,661,039        11,555,317        (105,722

Foreign Bonds

     8,534,666        8,352,169        (182,497

Other Debt Purchased

     168,391        169,253        862  

Other

     2,957,981        3,033,893        75,912  

Total

     29,116,523        31,148,755        2,032,232  

 

(Notes)   1.    Unrealized Gains (Losses) include ¥28,273 million and ¥29,617 million, which were recognized in the statements of income for the year ended March 31, 2018 and the three months ended June 30, 2018, 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, 2018 (last month of the fiscal year ended March 31, 2018), 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, 2018 (March 31, 2018).
  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, 2018 (the fiscal year ended March 31, 2018) (impairment (devaluation)), if the fair value (primarily the closing market price as of June 30, 2018 (March 31, 2018)) 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, 2018 was ¥3,424 million.
     The amount of impairment (devaluation) for the three months ended June 30, 2018 was ¥1,183 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.
 
 
 

 

- 15 -


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, 2018         
     (Millions of yen)  
     Acquisition Cost         Consolidated Balance Sheet   
Amount
     Difference  

Other in Money Held in Trust

              3,199                 3,199        —    
As of June 30, 2018         
     (Millions of yen)  
     Acquisition Cost      Quarterly Consolidated
Balance Sheet Amount
     Difference  

Other in Money Held in Trust

     3,362        3,362        —    

 

- 16 -


Derivatives Information

 

(1)

Interest Rate-Related Transactions

As of March 31, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Futures

     15,011,748        (1,499     (1,499
  

Options

     466,988        558       141  

Over-the-Counter

  

FRAs

     58,352,463        (1,830     (1,830
  

Swaps

     902,416,317                29,522               29,522  
  

Options

     10,274,268        (396     (396

Inter-Company or Internal Transactions

  

Swaps

     16,614,032        71,670       71,670  
     

 

 

    

 

 

   

 

 

 

Total

     —          98,024       97,607  
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

  

Futures

     15,141,703        (821     (821
  

Options

     656,894        430       302  

Over-the-Counter

  

FRAs

     63,256,746        (2,071     (2,071
  

Swaps

     893,122,766                93,497               93,497  
  

Options

     11,484,955        4,676       4,676  

Inter-Company or Internal Transactions

  

Swaps

     18,208,498        72,735       72,735  
     

 

 

    

 

 

   

 

 

 

Total

     —          168,447       168,319  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 17 -


(2)

Currency-Related Transactions

As of March 31, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      113,484        —         —    

Over-the-Counter

   Swaps      49,506,179              245,294             164,945  
   Forwards        97,636,495        68,424       68,424  
   Options      4,759,911        26,695       23,113  

Inter-Company or Internal Transactions

   Swaps      3,190,555        (250,755     18,009  
   Forwards      165,472        (2,090     (2,090
     

 

 

    

 

 

   

 

 

 

Total

     —          87,568       272,402  
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      70,512        —         —    

Over-the-Counter

   Swaps      49,314,390              265,987             150,081   
   Forwards        94,851,670        13,754       13,754  
   Options      5,257,805        18,267       13,292  

Inter-Company or Internal Transactions

   Swaps      2,925,536        (159,185     20,265  
   Forwards      10,547        18       18  
     

 

 

    

 

 

   

 

 

 

Total

     —          138,842       197,411  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 18 -


(3)

Stock-Related Transactions

As of March 31, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      1,022,835        10,511       10,511  
   Index Futures Options          3,521,358        (7,297     (2,232

Over-the-Counter

   Equity Linked Swaps      242,490                13,938               13,938  
   Options      1,039,580        30,158       30,158  
   Other      598,146        36,954       36,954  
     

 

 

    

 

 

   

 

 

 

Total

     —          84,265       89,329  
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Index Futures      1,000,151        8,848       8,848  
   Index Futures Options          3,473,766        (11,049     (4,267

Over-the-Counter

   Equity Linked Swaps      299,944        9,543       9,543  
   Options      1,069,297        45,315       45,315  
   Other      797,761              102,186             102,186  
     

 

 

    

 

 

   

 

 

 

Total

     —          154,844       161,626  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 19 -


(4)

Bond-Related Transactions

As of March 31, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures          1,422,265                       50                      50  
   Futures Options      423,572        (62     (56

Over-the-Counter

   Options      1,655,129        (470     (76
   Other      655,462        (393     (393
     

 

 

    

 

 

   

 

 

 

Total

     —          (875     (475
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      2,656,859        702       702  
   Futures Options      757,278                       26       (140

Over-the-Counter

   Options          1,055,146        54       (47
   Other      155,079        (485     (485
     

 

 

    

 

 

   

 

 

 

Total

     —          298                      28  
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      54,993        2,111       2,111  
   Futures Options      —          —         —    

Over-the-Counter

   Swaps      2,516                         0                        0  
   Options              277,478        (362     (362
     

 

 

    

 

 

   

 

 

 

Total

     —          1,749       1,749  
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Listed

   Futures      47,463        3,412       3,412  
   Futures Options      502        (10     (6

Over-the-Counter

   Swaps      780                         0                        0  
   Options              274,151        (1,925     (1,925
     

 

 

    

 

 

   

 

 

 

Total

     —          1,476       1,480  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 20 -


(6)

Credit Derivative Transactions

As of March 31, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives          2,843,073                (2,947             (2,947
     

 

 

    

 

 

   

 

 

 

Total

        —          (2,947     (2,947
     

 

 

    

 

 

   

 

 

 

 

(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, 2018

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

   Credit Derivatives          2,980,030                     174                     174   
     

 

 

    

 

 

   

 

 

 

Total

        —          174       174  
     

 

 

    

 

 

   

 

 

 

 

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

 

- 21 -


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, 2017
    For the three months ended
June 30, 2018
 

(1)   Net Income per Share of Common Stock

   Yen     4.66       6.34  

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

   

Profit Attributable to Owners of Parent

   Millions of yen     118,290       161,015  

Amount not attributable to Common Stock

   Millions of yen     —         —    

Profit Attributable to Owners of Parent related to Common Stock

   Millions of yen     118,290       161,015  

Average Outstanding Shares of Common Stock (during the period)

   Thousands of shares     25,367,097       25,364,804  

(2)   Diluted Net Income per Share of Common Stock

   Yen     4.66       6.34  

(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     8,582       5,302  

Stock Acquisition Rights

   Thousands of shares     8,582       5,302  

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, 2017, was 9,000 thousand and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2018, was 13,319 thousand.

 

- 22 -


II.

Others

At the meeting of the Board of Directors held on May 15, 2018, the year-end cash dividends for the 16th term were resolved as follows:

 

Total amount of year-end cash dividends

     ¥95,186 million  

Year-end cash dividends per share

  

Common Stock

     ¥3.75  

Effective date and starting date of dividend payments

     June 4, 2018  

 

- 23 -