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 December 2020

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):  ☐

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No. 333-233354) and to be a part of such prospectus from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

EXHIBITS

Exhibit Number
15.	Acknowledgment Letter of Ernst & Young ShinNihon LLC
101.INS	Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	The cover page for the Company’s Interim Report on Form 6-K for the six months ended September 30, 2020, has been formatted in Inline XBRL

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:	December 28, 2020
Mizuho Financial Group, Inc.
By:	/s/    Tatsufumi Sakai
Name:	Tatsufumi Sakai
Title:	President & CEO

Unless otherwise specified, for purposes of this report, we have presented our financial information in accordance with accounting principles generally accepted in the United States, or U.S. GAAP.

Table of Contents

	Page
Recent Developments		2
Accounting Changes		5
Operating Results		6
Business Segments Analysis		10
Financial Condition		14
Liquidity		22
Capital Adequacy		24
Off-balance-sheet Arrangements		29
Consolidated Balance Sheets (Unaudited)		F-1
Consolidated Statements of Income (Unaudited)		F-3
Consolidated Statements of Comprehensive Income (Unaudited)		F-4
Consolidated Statements of Equity (Unaudited)		F-5
Consolidated Statements of Cash Flows (Unaudited)		F-6
Notes to Consolidated Financial Statements (Unaudited)		F-7

1

Recent Developments

The following is a summary of significant business developments since March 31, 2020 relating to Mizuho Financial Group, Inc.

Operating Environment

As to the recent economic environment, the global economy has been on a recovery track after falling sharply due to the worldwide spread of COVID-19. However, the spread of COVID-19 has continued and it has been a drag on the recovery in the global economy.

In Japan, the economy has fallen sharply in consumption, exports and production following the declaration of a state of emergency in April 2020, but it has been gradually recovering since the declaration was lifted in May 2020. Although the rise in unemployment and the number of corporate bankruptcies have been restrained, partly because the government and the Bank of Japan have focused on supporting companies with liquidity and have maintained monetary easing, the continuation of the slump in service-related consumption has been a weight on the economic recovery.

In the United States, unemployment rose rapidly in the spring due to the spread of COVID-19, but the employment environment has been improving gradually as economic activity has resumed. The Federal Open Market Committee (“FOMC”) has been supporting the economy by indicating that it will continue monetary easing for the time being. However, the future remains uncertain, as the spread of COVID-19 has continued and negotiations on additional economic stimulus measures in Congress have stalled.

In Europe, stringent lockdown measures caused a sharp contraction in consumption and production activities, but the economic downturn seems to have bottomed out with the resumption of economic activities. However, there has been growing concerns about the future of the economy, such as risks of a breakdown in negotiations for a free trade agreement between the United Kingdom and the European Union and the resurgence of the spread of COVID-19.

In Asia, the Chinese economy has continued to recover led by infrastructure investment as China has resumed economic activities after initially suppressing the spread of COVID-19. However, the recovery in private demand has been slow, with improvements in employment and consumer sentiment still in early stages.

In emerging countries, as the spread of COVID-19 has continued, there has been concerns about the impact on countries highly dependent on natural resources and tourism and countries that have little capacity for fiscal stimulus or high levels of public debt. In addition, although the pressure on capital outflows eased, the risk of currency depreciation rekindling due to the prolonged spread of COVID-19 remains.

As for the future outlook of the global economy, it is expected to continue on a recovery track, supported by the resumption of economic activities as well as monetary easing and fiscal stimulus by countries around the world and positive news regarding the development of a vaccine for COVID-19. However, if the spread of COVID-19 continues for a prolonged period of time, including as a result of any difficulties in making a vaccine available to the global population, there are concerns that demand will further shrink due to worsening employment and income. As for the Japanese economy, there is a possibility that the spread of COVID-19 will not end and the economic slump will continue for a long period of time, with a large cumulative negative impact.

• Japan’s real gross domestic product on a quarterly basis, compared to the corresponding period of the previous year, decreased by 5.7% in the third quarter of calendar year 2020. Japan’s real gross domestic product on a quarterly basis, compared to the corresponding period of the previous year, decreased in the third and fourth quarters of calendar year 2018, increased consecutively from the first quarter of calendar year 2019 through the third quarter of calendar year 2019 and decreased consecutively from the fourth quarter of calendar year 2019 through the third quarter of calendar year 2020.

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• In September 2016, the Bank of Japan decided to introduce “quantitative and qualitative monetary easing with yield curve control” by strengthening its two previous policy frameworks, namely “quantitative and qualitative monetary easing (“QQE”)” and “QQE with a negative interest rate.” The new policy framework consists of two major components: (1) “yield curve control” in which the Bank of Japan will control short-term and long-term interest rates; and (2) an “inflation-overshooting commitment” in which the Bank of Japan commits itself to expand the monetary base until the year-on-year rate of increase in the observed consumer price index exceeds the price stability target of 2% and stays above the target in a stable manner. Under the new policy framework, the Bank of Japan decided to set the guideline for market operations under which, regarding short-term interest rates, the Bank of Japan will apply a negative interest rate of minus 0.1% to certain excess balances in current accounts held by financial institutions at the Bank of Japan, while for long-term interest rates, it would purchase Japanese government bonds to control long-term interest rates so that the yield of 10-year Japanese government bonds will remain at around 0%. In addition, the Bank of Japan decided to introduce the following new tools of market operations so as to control the yield curve smoothly: (i) outright purchases of Japanese government bonds with yields designated by the Bank of Japan; and (ii) fixed-rate funds-supplying operations for a period of up to ten years (thereby extending the longest maturity of the operation of one year).

In July 2018, the Bank of Japan decided to strengthen its commitment to achieving its price stability target by introducing forward guidance for policy rates, and to enhance the sustainability of “quantitative and qualitative monetary easing with yield curve control.” In its forward guidance, the Bank of Japan stated its intention to maintain the current extremely low levels of short-term and long-term interest rates for an extended period of time, taking into account uncertainties regarding economic activity and prices, including the effects of the consumption tax hike in October 2019. The Bank of Japan also indicated its aim to ease the yield curve, stating that it would purchase Japanese government bonds so that the yield of 10-year Japanese government bonds would remain at around 0%, although such yield could move upward and downward to some extent mainly depending on developments in economic activity and prices. The Bank of Japan further indicated that it would purchase Japanese government bonds in a flexible manner with regard to the purchase amount. In addition, the Bank of Japan decided to reduce the size of the excess balances in financial institutions’ current account to which a negative interest rate is applied under the condition that yield curve control can be conducted appropriately.

In April 2019, the Bank of Japan, with a view to clarifying its policy stance to persistently continue with powerful monetary easing, decided to clarify forward guidance for policy rates and the implementation of measures contributing to the continuation of powerful monetary easing, including the expansion of eligible collateral for the Bank of Japan’s provision of credit. The Bank of Japan stated its intention to maintain the current extremely low levels of short-term and long-term interest rates for an extended period of time, at least through around spring 2020, taking into account uncertainties regarding economic activity and prices, including developments in overseas economies and the effects of the consumption tax hike of October 2019.

In October 2019, the Bank of Japan judged that, although there had been no further increase in the possibility that the momentum toward achieving the price stability target would be lost, it was necessary to continue to pay close attention to the possibility. With a view to clarifying this recognition, the Bank of Japan decided on a new forward guidance for policy rates, in respect of which, the Bank of Japan stated its expectation that short-term and long-term interest rates will remain at their present or lower levels as long as it is necessary to pay close attention to the possibility that the momentum toward achieving the price stability target will be lost.

In March 2020, in light of the impact of the spread of COVID-19, the Bank of Japan judged it appropriate to enhance monetary easing through (1) the further ample supply of funds by conducting various operations including purchases of Japanese government bonds and the U.S. dollar funds-supplying operations, (2) measures to facilitate corporate financing including the introduction of the

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“special funds-supplying operations to facilitate corporate financing regarding the novel coronavirus (COVID-19)” and (3) active purchases of exchange-traded funds and Japan real estate investment trusts.

Furthermore, in April 2020, the Bank of Japan judged it appropriate to enhance monetary easing through (1) an increase in purchases of commercial paper and corporate bonds, (2) strengthening of the “special funds-supplying operations to facilitate corporate financing regarding the novel coronavirus (COVID-19)” and (3) further active purchases of Japanese government bonds and treasury discount bills.

• The yield on newly issued 10-year Japanese government bonds, which is a key long-term interest rate indicator, was 0.022% as of March 31, 2020 and decreased to 0.016% as of September 30, 2020. Thereafter, the yield increased to 0.032% as of November 30, 2020.

• The Nikkei Stock Average, which is an average of the price of 225 stocks listed on the Tokyo Stock Exchange, increased by 22.6% to ¥23,185.12 as of September 30, 2020 compared to March 31, 2020. Thereafter, the Nikkei Stock Average increased to ¥26,433.62 as of November 30, 2020.

• The yen to U.S. dollar spot exchange rate, according to the Bank of Japan, was ¥108.42 to $1.00 as of March 31, 2020 and strengthened to ¥105.62 to $1.00 as of September 30, 2020. Thereafter, the yen strengthened to ¥104.03 to $1.00 as of November 30, 2020.

• According to Teikoku Databank, a Japanese research institution, there were 4,172 corporate bankruptcies in the six months ended September 30, 2019, involving approximately ¥0.6 trillion in total liabilities, 4,308 corporate bankruptcies in the six months ended March 31, 2020, involving approximately ¥0.7 trillion in total liabilities, and 3,956 corporate bankruptcies in Japan in the six months ended September 30, 2020, involving approximately ¥0.6 trillion in total liabilities.

Developments Relating to Our Capital

All yen figures and percentages in this subsection are truncated.

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

In the six months ended September 30, 2020, we strengthened our capital base mainly as a result of earning ¥215.5 billion of profit attributable to owners of parent (under Japanese GAAP).

With respect to redemptions of previously issued securities, we have redeemed various securities that are eligible regulatory capital instruments under Basel III upon their respective initial optional redemption dates or their respective maturity dates. As for Additional Tier 1 capital, in December 2020, we redeemed ¥300.0 billion of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause issued to qualified institutional investors by Mizuho Financial Group in July 2015. As for Tier 2 capital, in August 2020 and December 2020, we redeemed ¥10.0 billion and ¥10.0 billion of unsecured fixed-term subordinated bonds subject to phase-out arrangements under Basel III issued by Mizuho Bank in August 2005 and by Mizuho Trust and Banking in December 2005, respectively, and in June 2020, we redeemed ¥10.0 billion of unsecured fixed-term subordinated bonds with an optional redemption clause and a write-down clause issued by Mizuho Financial Group in June 2015.

Meanwhile, as for new issuances of Additional Tier 1 capital, in July 2020 and December 2020, we issued ¥207.0 billion and ¥131.0 billion, respectively, of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause through public offerings to wholesale investors in Japan. With respect to new issuances of Tier 2 capital, in June 2020 and October 2020, we issued ¥80.0 billion and ¥137.0 billion, respectively, of unsecured fixed-term subordinated bonds with a write-down clause through public offerings to wholesale and retail investors in Japan.

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Our Common Equity Tier 1 capital ratio under Basel III as of September 30, 2020 was 11.57%.

Interim cash dividends for the fiscal year ending March 31, 2021 were ¥37.5 per share of common stock as of the effective date of such dividends. The amount was ten times as much as the interim cash dividends per share of the previous fiscal year as a result of the share consolidation on the basis of one post-consolidation share per ten pre-consolidation shares which became effective on October 1, 2020.

Developments Relating to Our Business

Integration of Three of our consolidated subsidiaries

In May 2020, we decided to integrate three consolidated subsidiaries of Mizuho Financial Group, Mizuho Information & Research Institute, Inc., Mizuho Research Institute Ltd. and Mizuho Trust Systems Company, Limited in April 2021 with Mizuho Information & Research Institute as the surviving entity. The purpose of the integration is to significantly improve the ability of Mizuho Information & Research Institute as a core non-financial business company of the Mizuho group to provide “New value beyond the conventional boundaries of finance” by organically combining and amalgamating each company’s research, consulting and IT development capabilities.

As part of such integration, the merger agreement between Mizuho Information & Research Institute and Mizuho Trust Systems Company was signed in November 2020. The merger will become effective on January 1, 2021.

Disposing of Our Cross-shareholdings

Reflecting the potential impact on our financial position associated with the risk of stock price fluctuation, as a basic policy, unless we consider the holdings to be meaningful, we will not hold the shares of other companies as cross-shareholdings. We promote cross-shareholdings disposal through initiatives to enhance capital efficiency by utilizing in-house company return on equity as an internal performance indicator. Under Japanese GAAP on an acquisition cost basis, our total Japanese stock portfolio (included within other securities which have readily determinable fair value) as of March 31, 2019 was ¥1,419.8 billion, and we have subsequently reduced such amount by ¥208.3 billion as of September 30, 2020.

Others

Our response to the COVID-19 pandemic

The rapid and worldwide spread of the COVID-19 pandemic is causing great turmoil in the economy and financial markets, and its social impact has been significant. We give the highest priority to the safety and health of clients, employees and their families, and we continue to fulfill a social role as a financial institution that performs fund settlements and a source of financial liquidity. The impact of the pandemic going forward is difficult to predict, and while it is expected that economic activities will eventually recover, there is uncertainity as to the timing and what, if any, more long-lasting effects that the pandemic will have on society as a whole. We continue to manage our business assuming that the impact may be prolonged, and we have been making various efforts to improve the quality of our asset portfolio, enhance the risk management, and strengthen capital and foreign currency liquidity. As a result, we believe we have an appropriate level of tolerance to the effect of the pandemic. We will continue to endeavor to understand the actual condition of our various clients and respond to possible risk events, and to appropriately respond to clients’ financial needs, as well as to focus on strengthening relationships and capturing business opportunities with clients.

Accounting Changes

See note 2 to our consolidated financial statements included elsewhere in this report.

5

Operating Results

The following table shows certain information as to our income, expenses and net income attributable to MHFG shareholders for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,				Increase (decrease)
	2019		2020
	(in billions of yen)
Interest and dividend income	¥	1,127	¥	772	¥	(355	)
Interest expense		681		271		(410	)
Net interest income		446		501		55
Provision (credit) for credit losses		13		61		48
Net interest income after provision (credit) for credit losses		433		440		7
Noninterest income		790		1,011		221
Noninterest expenses		913		903		(10	)
Income before income tax expense		310		548		238
Income tax expense		83		138		55
Net income		227		410		183
Less: Net income attributable to noncontrolling interests		14		94		80
Net income attributable to MHFG shareholders	¥	213	¥	316	¥	103

The following is a discussion of major components of our net income attributable to MHFG shareholders for the six months ended September 30, 2019 and 2020.

Net Interest Income

The following table shows the average balance of interest-earning assets and interest-bearing liabilities, interest amounts and the annualized average interest rates on such assets and liabilities for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,														Increase (decrease)
	2019							2020
	Average balance		Interest amount		Interest rate			Average balance		Interest amount		Interest rate			Average balance			Interest amount			Interest rate
	(in billions of yen, except percentages)
Interest-bearing deposits in other banks	¥	40,326	¥	57		0.28	%	¥	42,871	¥	22		0.10	%	¥	2,545		¥	(35	)		(0.18	)%
Call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		19,482		154		1.57			22,134		24		0.22			2,652			(130	)		(1.35	)
Trading account assets		15,417		109		1.41			19,877		128		1.28			4,460			19			(0.13	)
Investments		21,747		88		0.81			25,902		56		0.43			4,155			(32	)		(0.38	)
Loans		82,899		719		1.73			91,473		542		1.18			8,574			(177	)		(0.55	)
Total interest-earning assets		179,871		1,127		1.25			202,257		772		0.76			22,386			(355	)		(0.49	)
Deposits		113,721		335		0.59			121,268		111		0.18			7,547			(224	)		(0.41	)
Short-term borrowings(1)		25,241		218		1.72			35,315		46		0.26			10,074			(172	)		(1.46	)
Trading account liabilities		2,798		29		2.05			2,371		28		2.37			(427	)		(1	)		0.32
Long-term debt		10,662		99		1.84			10,148		86		1.68			(514	)		(13	)		(0.16	)
Total interest-bearing liabilities		152,422		681		0.89			169,102		271		0.32			16,680			(410	)		(0.57	)
Net	¥	27,449	¥	446		0.36		¥	33,155	¥	501		0.44		¥	5,706		¥	55			0.08

Note:

(1) Short-term borrowings consist of due to trust accounts, call money and funds purchased, payables under repurchase agreements and securities lending transactions and other short-term borrowings.

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Interest and dividend income decreased by ¥355 billion, or 31.5%, from the six months ended September 30, 2019 to ¥772 billion in the six months ended September 30, 2020 due mainly to decreases in interest income from loans and call loans and funds sold, and receivables under resale agreements and securities borrowing transactions. These decreases were due mainly to a fall in foreign average yields. The changes in average balances of interest-earning assets contributed to an overall increase in interest and dividend income of ¥283 billion, and the changes in the average yields on interest-earning assets contributed to an overall decrease in interest and dividend income of ¥638 billion, resulting in a ¥355 billion decrease in interest and dividend income.

Interest expense decreased by ¥410 billion, or 60.2%, from the six months ended September 30, 2019 to ¥271 billion in the six months ended September 30, 2020 due mainly to decreases in interest expense on deposits and short-term borrowings. These decreases were due mainly to a fall in foreign average rates. The changes in average interest rates on interest-bearing liabilities contributed to an overall decrease in interest expense of ¥608 billion, and the changes in average balances of interest-bearing liabilities contributed to an overall increase in interest expense of ¥198 billion, resulting in a ¥410 billion decrease in interest expense.

As a result of the foregoing, net interest income increased by ¥55 billion, or 12.3%, from the six months ended September 30, 2019 to ¥501 billion in the six months ended September 30, 2020. Average interest rate spread rose by 0.08 percentage points from the six months ended September 30, 2019 to 0.44% in the six months ended September 30, 2020. The rise of the average interest rate spread was due mainly to a decline in the average interest rate on interest-bearing liabilities, which more than offset the effect of a decline in average yield on interest-earning assets.

Provision (credit) for credit losses

Provision for credit losses increased by ¥48 billion from the six months ended September 30, 2019 to ¥61 billion in the six months ended September 30, 2020. The increase was due mainly to the adoption of ASU No.2016-13, “Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments” (“ASU No.2016-13”) and the uncertainty of how the corporate loan portfolio segment would respond in a prolonged COVID-19 pandemic environment. For further information of the adoption of ASU No.2016-13, see notes 1 and 2 to our consolidated financial statements included elsewhere in this report.

7

Noninterest Income

The following table shows a breakdown of noninterest income for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,					Increase (decrease)
	2019			2020
	(in billions of yen)
Fee and commission	¥	404		¥	428	¥	24
Fee and commission from lending business		68			80		12
Fee and commission from securities-related business		65			78		13
Fee and commission from remittance business		56			55		(1	)
Fee and commission from trust related business		57			54		(3	)
Fee and commission from asset management business		48			46		(2	)
Fee and commission from guarantee related business		14			16		2
Fee and commission from agency business		15			15		—
Fee and commission from deposits business		8			7		(1	)
Fees for other customer services		73			77		4
Foreign exchange gains (losses)—net		28			23		(5	)
Trading account gains (losses)—net		395			258		(137	)
Investment gains (losses)—net		(96	)		266		362
Debt securities		31			—		(31	)
Equity securities		(127	)		266		393
Equity in earnings (losses) of equity method investees—net		22			6		(16	)
Gains on disposal of premises and equipment		2			7		5
Other noninterest income		35			23		(12	)
Total noninterest income	¥	790		¥	1,011	¥	221

Total noninterest income increased by ¥221 billion, or 28.0%, from the six months ended September 30, 2019 to ¥1,011 billion in the six months ended September 30, 2020. The increase was due mainly to investment gains—net of ¥266 billion compared to investment losses—net of ¥96 billion in the six months ended September 30, 2019, offset in part by a decrease in trading account gains—net of ¥137 billion.

Investment Gains (Losses)—Net

Investment gains (losses)—net was a gain of ¥266 billion in the six months ended September 30, 2020 compared to a loss of ¥96 billion in the corresponding period in the previous fiscal year. The change was due mainly to a change to investment gains related to equity securities of ¥266 billion in the six months ended September 30, 2020 from investment losses related to equity securities of ¥127 billion in the corresponding period in the previous fiscal year.

The investment gains related to equity securities was due mainly to an increase in gains related to changes in the fair value of Japanese equity securities in the six months ended September 30, 2020, which mostly reflected the relative favorable market conditions during the six months ended September 30, 2020 compared to the corresponding period in the previous fiscal year. For further information, see note 3 to our consolidated financial statements included elsewhere in this report.

Trading Account Gains (Losses)—Net

Trading account gains—net decreased by ¥137 billion from the six months ended September 30, 2019 to ¥258 billion in the six months ended September 30, 2020. The decrease was due mainly to a decrease in gains related to changes in the market value of receive-fixed, pay-variable interest-rate swaps, reflecting low-volatility

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in long-term interest rates, and a decrease in gains related to changes in the fair value of foreign currency-denominated securities for which the fair value option was elected, reflecting a decrease in gains of foreign currency-denominated bonds due to the effect of low-volatility in Euro long-term interest rates during the six months ended September 30, 2020 compared to the corresponding period in the previous fiscal year. For further information on the fair value option, see note 17 to our consolidated financial statements included elsewhere in this report.

Fee and Commission

Fee and commission increased by ¥24 billion, or 5.9%, from the six months ended September 30, 2019 to ¥428 billion in the six months ended September 30, 2020. The increase was due mainly to increases in fee and commission from the lending business of ¥12 billion and fee and commission from securities-related business of ¥13 billion. The increase in fee and commission from lending business was due mainly to fees earned in the six months ended September 30, 2020 related to the arrangement of a large syndicated loan in connection with a significant acquisition by a large corporate customer. The increase in fee and commission from securities-related business was due mainly to relatively favorable market conditions during the six months ended September 30, 2020 compared to the corresponding period in the previous fiscal year.

Noninterest Expenses

The following table shows a breakdown of noninterest expenses for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,						Increase (decrease)
	2019			2020
	(in billions of yen)
Salaries and employee benefits	¥	334		¥	346		¥	12
General and administrative expenses		315			299			(16	)
Occupancy expenses		104			93			(11	)
Fee and commission expenses		101			93			(8	)
Provision (credit) for credit losses on off-balance-sheet instruments		(8	)		(7	)		1
Other noninterest expenses		67			79			12
Total noninterest expenses	¥	913		¥	903		¥	(10	)

Noninterest expenses decreased by ¥10 billion, or 1.1%, from the six months ended September 30, 2019 to ¥903 billion in the six months ended September 30, 2020. The decrease was due mainly to a decrease in general and administrative expenses of ¥16 billion offset in part by an increase in salaries and employee benefits and other noninterest expenses.

General and administrative expenses

General and administrative expenses decreased by ¥16 billion, or 5.1%, from the six months ended September 30, 2019 to ¥299 billion in the six months ended September 30, 2020. The decrease was due mainly to a decrease in property expenses.

Income Tax Expense

Income tax expense increased by ¥55 billion, or 66.3%, from the six months ended September 30, 2019 to ¥138 billion in the six months ended September 30, 2020. The increase was due to a deferred tax expense of ¥58 billion in the six months ended September 30, 2020, compared to a deferred tax benefit of ¥5 billion in the corresponding period in the previous fiscal year, offset in part by a decrease in current tax expense of ¥8 billion.

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The change in deferred tax expense (benefit) was due mainly to a decrease in the temporary differences of our principal banking subsidiaries.

	Six months ended September 30,					Increase (decrease)
	2019			2020
	(in billions of yen)
Income before income tax expense	¥	310		¥	548	¥	238
Income tax expense		83			138		55
Current tax expense		88			80		(8	)
Deferred tax expense (benefit)		(5	)		58		63
Net income		227			410		183
Less: Net income attributable to noncontrolling interests		14			94		80
Net income attributable to MHFG shareholders	¥	213		¥	316	¥	103

We consider the sales of available-for-sale securities and equity securities to be a qualifying tax-planning strategy that is a possible source of future taxable income to the extent necessary in the future mainly with respect to our principal banking subsidiaries in Japan. The reliance on this tax-planning strategy of our subsidiaries in Japan accounted for approximately one-half of overall deferred tax assets as of September 30, 2020.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests increased by ¥80 billion from the six months ended September 30, 2019 to ¥94 billion in the six months ended September 30, 2020.

Net Income Attributable to MHFG Shareholders

As a result of the foregoing, net income attributable to MHFG shareholders increased by ¥103 billion, or 48.4%, from the corresponding period in the previous fiscal year to ¥316 billion in the six months ended September 30, 2020.

Business Segments Analysis

Our business segment information is prepared based on the internal management reporting systems used by management to measure the performance of our business segments under Japanese GAAP. Since figures reported to management are prepared under Japanese GAAP, they are not consistent with the consolidated financial statements prepared in accordance with U.S. GAAP. This difference is addressed in note 20 to our consolidated financial statements included elsewhere in this report, where a reconciliation to U.S. GAAP of the total amount of all business segments is provided.

We manage our group under an in-house company system based on our diverse customer segments. The aim of this system is to leverage our strengths and competitive advantage, which is the seamless integration of our banking, trust banking 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. We regard these customer segments as our operating segments.

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For a brief description of each of our business segments, see note 20 to our consolidated financial statements included elsewhere in this report.

Results of Operations by Business Segment

Consolidated Results of Operations

Consolidated gross profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥1,093.3 billion, an increase of ¥70.5 billion compared to the six months ended September 30, 2019. Consolidated general and administrative expenses for the six months ended September 30, 2020 were ¥679.3 billion, a decrease of ¥9.1 billion compared to the six months ended September 30, 2019. Consolidated equity in earnings of equity method investees-net for the six months ended September 30, 2020 was ¥11.5 billion, a decrease of ¥7.5 billion compared to the six months ended September 30, 2019. Consolidated net business profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥419.4 billion, an increase of ¥78.5 billion compared to the six months ended September 30, 2019.

	Mizuho Financial Group (Consolidated)
	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others(6)			Total
	(in billions of yen)
Six months ended September 30, 2019(1):
Gross profits + Net gains (losses) related to ETFs and others(2)	¥	322.0		¥	220.2	¥	203.9	¥	235.0	¥	25.5	¥	16.2		¥	1,022.8
General and administrative expenses(3)		330.7			104.0		118.6		101.4		16.4		17.3			688.4
Equity in earnings (losses) of equity method investees—net		6.4			1.1		6.0		—		0.5		5.0			19.0
Amortization of goodwill and others		1.4			0.1		0.2		0.5		3.9		0.5			6.6
Others		—			—		—		—		—		(5.9	)		(5.9	)
Net business profits (losses)(4) + Net gains (losses) related to ETFs and others	¥	(3.7	)	¥	117.2	¥	91.1	¥	133.1	¥	5.7	¥	(2.5	)	¥	340.9
Fixed assets(5)	¥	508.2		¥	208.4	¥	160.1	¥	92.8	¥	0.1	¥	732.0		¥	1,701.6
	Mizuho Financial Group (Consolidated)
	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others(6)			Total
	(in billions of yen)
Six months ended September 30, 2020:
Gross profits + Net gains (losses) related to ETFs and others(2)	¥	307.4		¥	234.2	¥	222.6	¥	291.5	¥	23.6	¥	14.0		¥	1,093.3
General and administrative expenses(3)		315.0			104.6		121.4		105.6		15.7		17.0			679.3
Equity in earnings (losses) of equity method investees—net		3.6			2.4		5.8		—		0.4		(0.7	)		11.5
Amortization of goodwill and others		1.1			0.1		0.2		0.4		3.8		0.5			6.1
Net business profits (losses)(4) + Net gains (losses) related to ETFs and others	¥	(5.1	)	¥	131.9	¥	106.8	¥	185.5	¥	4.5	¥	(4.2	)	¥	419.4
Fixed assets(5)	¥	518.5		¥	186.3	¥	157.0	¥	90.9	¥	0.1	¥	768.5		¥	1,721.3

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Notes:

(1) Income and expenses of foreign branches of Mizuho Bank and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

(2) “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by Mizuho Bank and Mizuho Trust & Banking on their non-consolidated basis and net gains (losses) on operating investment securities of Mizuho Securities on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

(3) “General and administrative expenses” excludes non-allocated gains (losses), net.

(4) Net business profits (losses) is used in Japan as a measure of the profitability of core banking operations and is defined as gross profits (as defined above) less general and administrative expenses (excluding non-allocated gains (losses), net) plus equity in earnings (losses) of equity method investees-net and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan.

(5) “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

(6) “Others” includes the following items:

• profits and expenses pertaining to consolidated subsidiaries that are not subject to allocation;

• consolidating adjustments, including elimination of internal transaction between each segment;

• equity in earnings (losses) of equity method investees-net that are not subject to allocation; and

• profits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.

Retail & Business Banking Company

Gross profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥307.4 billion, a decrease in ¥14.6 billion, or 4.5%, compared to the six months ended September 30, 2019. The decrease was attributable mainly to a decrease in deposit revenue due to declining U.S. interest rate and a decrease in solution-related revenue.

General and administrative expenses (excluding non-allocated gains (losses), net) for the six months ended September 30, 2020 decreased by ¥15.7 billion, or 4.7%, compared to the six months ended September 30, 2019 to ¥315.0 billion.

Equity in earnings of equity method investees-net for the six months ended September 30, 2020 decreased by ¥2.8 billion, or 43.8%, compared to the six months ended September 30, 2019 to ¥3.6 billion.

As a result, net business losses + net gains related to ETFs and others for the six months ended September 30, 2020 were a loss of ¥5.1 billion as compared to a loss of ¥3.7 billion in the same period in prior year.

Corporate & Institutional Company

Gross profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥234.2 billion, an increase of ¥14.0 billion, or 6.4%, compared to the six months ended September 30, 2019. The

12

increase was attributable mainly to increases in loan interest income and solution-related revenue, which were offset in part by a decrease in deposit income due to declining U.S. interest rate.

General and administrative expenses (excluding non-allocated gains (losses), net) for the six months ended September 30, 2020 increased by ¥0.6 billion, or 0.6%, compared to the six months ended September 30, 2019 to ¥104.6 billion.

Equity in earnings of equity method investees-net for the six months ended September 30, 2020 increased by ¥1.3 billion, or 118.2%, compared to the six months ended September 30, 2019 to ¥2.4 billion.

As a result, net business profits + net gains related to ETFs and others for the six months ended September 30, 2020 increased by ¥14.7 billion, or 12.5%, compared to the six months ended September 30, 2019 to ¥131.9 billion.

Global Corporate Company

Gross profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥222.6 billion, an increase of ¥18.7 billion, or 9.2%, compared to the six months ended September 30, 2019. The increase was attributable mainly to increases in loan interest income and debt capital markets-related revenue, which were offset in part by a decrease in deposit income due to declining U.S. interest rate.

General and administrative expenses (excluding non-allocated gains (losses), net) for the six months ended September 30, 2020 increased by ¥2.8 billion, or 2.4%, compared to the six months ended September 30, 2019 to ¥121.4 billion.

Equity in earnings of equity method investees-net for the six months ended September 30, 2020 decreased by ¥0.2 billion, or 3.3%, compared to the six months ended September 30, 2019 to ¥5.8 billion.

As a result, net business profits + net gains related to ETFs and others for the six months ended September 30, 2020 increased by ¥15.7 billion, or 17.2%, compared to the six months ended September 30, 2019 to ¥106.8 billion.

Global Markets Company

Gross profits + net losses related to ETFs and others for the six months ended September 30, 2020 were ¥291.5 billion, an increase of ¥56.5 billion, or 24.0%, compared to the six months ended September 30, 2019. The increase was attributable mainly to growth trends in sales and trading and capital and income gain from our foreign bonds investment portfolio in banking.

General and administrative expenses (excluding non-allocated gains (losses), net) for the six months ended September 30, 2020 increased by ¥4.2 billion, or 4.1%, compared to the six months ended September 30, 2019 to ¥105.6 billion.

As a result, net business profits + net losses related to ETFs and others for the six months ended September 30, 2020 increased by ¥52.4 billion, or 39.4%, compared to the six months ended September 30, 2019 to ¥185.5 billion.

Asset Management Company

Gross profits + net gains related to ETFs and others for the six months ended September 30, 2020 were ¥23.6 billion, a decrease of ¥1.9 billion, or 7.5%, compared to the six months ended September 30, 2019. The decrease was attributable mainly to a decrease in management fees and assets under management due to deteriorating market conditions.

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General and administrative expenses (excluding non-allocated gains (losses), net) for the six months ended September 30, 2020 decreased by ¥0.7 billion, or 4.3%, compared to the six months ended September 30, 2019 to ¥15.7 billion.

As a result, net business profits + net gains related to ETFs and others for the six months ended September 30, 2020 decreased by ¥1.2 billion, or 21.1%, compared to the six months ended September 30, 2019 to ¥4.5 billion.

Financial Condition

Assets

Our assets as of March 31, 2020 and September 30, 2020 were as follows:

	As of						Increase (decrease)
	March 31, 2020			September 30, 2020
	(in billions of yen)
Cash and due from banks	¥	2,325		¥	1,649		¥	(676	)
Interest-bearing deposits in other banks		39,626			41,588			1,962
Call loans and funds sold		1,007			534			(473	)
Receivables under resale agreements		18,581			12,666			(5,915	)
Receivables under securities borrowing transactions		2,216			2,186			(30	)
Trading account assets		28,093			29,467			1,374
Investments		23,676			31,307			7,631
Loans		87,528			90,476			2,948
Allowance for credit losses on loans		(441	)		(623	)		(182	)
Loans, net of allowance		87,087			89,853			2,766
Premises and equipment—net		1,856			1,800			(56	)
Due from customers on acceptances		168			181			13
Accrued income		324			285			(39	)
Goodwill		93			93			—
Intangible assets		65			60			(5	)
Deferred tax assets		137			61			(76	)
Other assets		5,965			5,865			(100	)
Total assets	¥	211,219		¥	217,595		¥	6,376

Total assets increased by ¥6,376 billion from ¥211,219 billion as of March 31, 2020 to ¥217,595 billion as of September 30, 2020. The increase was due mainly to increases of ¥7,631 billion in investments, ¥2,766 billion in loans, net of allowance, ¥1,962 billion in interest-bearing deposits in other banks and ¥1,374 billion in trading account assets, offset in part by a decrease of ¥5,915 billion in receivables under resale agreements.

14

Loans

Loans outstanding

The following table shows our loans outstanding as of March 31, 2020 and September 30, 2020 based on classifications by domicile and industry segment:

	As of										Increase (decrease)
	March 31, 2020					September 30, 2020
	(in billions of yen, except percentages)
Domestic:
Manufacturing	¥	9,731		11.1	%	¥	11,700		12.9	%	¥	1,969		1.8	%
Construction and real estate		9,603		11.0			10,173		11.2			570		0.2
Services		5,993		6.8			6,294		6.9			301		0.1
Wholesale and retail		5,220		6.0			5,416		6.0			196		0.0
Transportation and communications		3,833		4.4			3,979		4.4			146		0.0
Banks and other financial institutions		4,635		5.3			4,720		5.2			85		(0.1	)
Government and public institutions		2,199		2.5			2,640		2.9			441		0.4
Other industries(1)		5,389		6.0			5,517		6.2			128		0.2
Individuals		9,428		10.8			9,155		10.1			(273	)	(0.7	)
Mortgage loans		8,567		9.8			8,357		9.2			(210	)	(0.6	)
Other		861		1.0			798		0.9			(63	)	(0.1	)
Total domestic		56,031		63.9			59,594		65.8			3,563		1.9
Foreign:
Commercial and industrial		20,819		23.7			20,190		22.3			(629	)	(1.4	)
Banks and other financial institutions		10,475		11.9			10,502		11.6			27		(0.3	)
Government and public institutions		317		0.4			308		0.3			(9	)	(0.1	)
Other		35		0.1			39		0.0			4		(0.1	)
Total foreign		31,646		36.1			31,039		34.2			(607	)	(1.9	)
Subtotal		87,677		100.0	%		90,633		100.0	%		2,956		—
Less: Unearned income and deferred loan fees—net		(149	)				(157	)				(8	)
Total loans before allowance for credit losses on loans	¥	87,528				¥	90,476				¥	2,948

Note:

(1) Other industries under Domestic include trade receivables and lease receivables of consolidated variable interest entities.

Total loans before allowance for credit losses on loans increased by ¥2,948 billion from the end of the previous fiscal year to ¥90,476 billion as of September 30, 2020.

Loans to domestic borrowers increased by ¥3,563 billion from the end of the previous fiscal year to ¥59,594 billion as of September 30, 2020 due mainly to an increase in loans to manufacturing.

Loans to foreign borrowers decreased by ¥607 billion from the end of the previous fiscal year to ¥31,039 billion as of September 30, 2020. The decrease was due mainly to a decrease in commercial and industrial.

Within our loan portfolio, the proportion of loans to domestic borrowers against gross total loans increased from 63.9% to 65.8% while that of loans to foreign borrowers against gross total loans decreased from 36.1% to 34.2%. Loans to foreign borrowers were regionally diversified.

15

Nonaccrual Loans

Balance of nonaccrual loans

The following table shows our nonaccrual loans as of March 31, 2020 and September 30, 2020:

	As of										Increase (decrease)
	March 31, 2020					September 30, 2020
	Nonaccrual loans		Ratio to gross total loans			Nonaccrual loans		Ratio to gross total loans			Nonaccrual loans			Ratio to gross total loans
	(in billions of yen, except percentages)
Domestic:
Corporate:
Large companies	¥	343		0.9	%	¥	438		1.0	%	¥	95			0.1	%
Small and medium-sized companies		120		3.7			125		3.9			5			0.2
Retail:
Housing Loan		58		0.7			69		0.8			11			0.1
Others		60		3.1			58		3.0			(2	)		(0.1	)
Banks and other financial institutions		—		0.0			2		0.2			2			0.2
Total domestic		581		1.0			692		1.2			111			0.2
Foreign		135		0.4			160		0.5			25			0.1
Total nonaccrual loans	¥	716		0.8		¥	852		0.9		¥	136			0.1

Total nonaccrual loans increased by ¥136 billion, or 19.0%, from the end of the previous fiscal year to ¥852 billion as of September 30, 2020. Nonaccrual loans to domestic borrowers increased by ¥111 billion due mainly to downgrades related to some large corporate borrowers as a result of the impact of the COVID-19 pandemic. Nonaccrual loans to foreign borrowers increased by ¥25 billion due mainly to downgrades related to some borrowers as a result of the impact of the COVID-19 pandemic. The relative impact of foreign currency fluctuations on such amount was immaterial.

The percentage of nonaccrual loans within gross total loans increased from 0.8% as of March 31, 2020 to 0.9% as of September 30, 2020. The percentage of nonaccrual loans net of allowance for credit losses on loans to gross total loans net of allowance for credit losses on loans decreased from 0.32% as of March 31, 2020 to 0.25% as of September 30, 2020 due to a decrease in nonaccrual loans net of allowance for credit losses on loans and an increase in gross total loans net of allowance for credit losses on loans.

16

Allowance for Credit Losses on Loans

Balance of allowance for credit losses on loans

The following table summarizes the allowance for credit losses on loans by component and as a percentage of the corresponding loan balance as of March 31, 2020 and September 30, 2020:

	As of						Increase (decrease)
	March 31, 2020			September 30, 2020
	(in billions of yen, except percentages)
Total allowance for credit losses on loans (A)	¥	441		¥	623		¥	182
Nonaccrual loans with an allowance (B)	¥	596		¥	711		¥	115
Nonaccrual loans without an allowance (C)		120			141			21
Accrual loans(1) (D)		86,961			89,781			2,820
Gross total loans (E)	¥	87,677		¥	90,633		¥	2,956
Percentage of total allowance for credit losses on loans against gross total loans (A)/(E)x100		0.50	%		0.69	%		0.19	%

Note:

(1) Accrual loans refer to loans categorized as “normal obligors” and “watch obligors (excluding special attention obligors)” under our internal rating system.

Allowance for credit losses on loans increased by ¥182 billion from the end of the previous fiscal year to ¥623 billion as of September 30, 2020. The increase was due mainly to the recognition of expected credit losses as a result of the adoption of ASU No.2016-13. Gross total loans increased due to an increase in accrual loans. As a result, the percentage of total allowance for credit losses on loans against gross total loans increased by 0.19 percentage points to 0.69%. For further information of the adoption of ASU No.2016-13, see notes 1 and 2 to our consolidated financial statements included elsewhere in this report.

The primary factors behind the gap between the 41.2% increase in allowance for credit losses on loans and the 3.4% increase in the balance of gross total loans as of September 30, 2020 compared to March 31, 2020 consisted mainly of the recognition of expected credit losses as a result of the adoption of ASU No.2016-13 and a larger percentage increase in the balance of nonaccrual loans with an allowance than the percentage increase in gross total loans.

Nonaccrual loans increased by 19.0% from the end of the previous fiscal year due mainly to an increase in nonaccrual loans with an allowance.

The coverage ratio for nonaccrual loans, calculated as the percentage of total allowance for credit losses on loans against total nonaccrual loans, increased by 11.52 percentage points as of September 30, 2020 compared to March 31, 2020. The increase was due to a larger percentage increase in total allowance for credit losses on loans than the percentage increase in total nonaccrual loans.

17

Provision (credit) for credit losses on loans

The following table summarizes changes in our allowance for credit losses on loans in the six months ended September 30, 2019 and 2020:

	Six months ended September 30,						Increase (decrease)
	2019			2020
	(in billions of yen)
Allowance for credit losses on loans at beginning of fiscal year	¥	307		¥	441		¥	134
April 1, 2020 adoption of CECL		—			156			156
Adjusted Balance at beginning of period		307			597			290
Provision (credit) for credit losses on loans		13			53			40
Charge-offs		(29	)		(32	)		(3	)
Recoveries		5			6			1
Net charge-offs		(24	)		(26	)		(2	)
Others(1)		(4	)		(1	)		3
Balance at end of six-month period	¥	292		¥	623		¥	331

Note:

(1) “Others” includes primarily foreign exchange translation.

Provision for credit losses on loans increased by ¥40 billion from the six months ended September 30, 2019 to ¥53 billion in the six months ended September 30, 2020. The increase was due mainly to the adoption of ASU No.2016-13 and the uncertainty of how the corporate loan portfolio segment would respond in a prolonged COVID-19 pandemic environment.

Charge-offs increased by ¥3 billion from the six months ended September 30, 2019 to ¥32 billion for the six months ended September 30, 2020.

18

Investments

The majority of our investments are available-for-sale and held-to-maturity securities, which as of March 31, 2020 and September 30, 2020 were as follows:

	As of														Increase (decrease)
	March 31, 2020							September 30, 2020
	Amortized cost		Fair value		Net unrealized gains (losses)			Amortized cost		Fair value		Net unrealized gains (losses)			Amortized cost			Fair value			Net unrealized gains (losses)
	(in billions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds	¥	12,652	¥	12,603	¥	(49	)	¥	19,965	¥	19,920	¥	(45	)	¥	7,313		¥	7,317		¥	4
Other than Japanese government bonds		6,481		6,510		29			6,597		6,627		30			116			117			1
Total	¥	19,133	¥	19,113	¥	(20	)	¥	26,562	¥	26,547	¥	(15	)	¥	7,429		¥	7,434		¥	5
Held-to-maturity securities:
Debt securities:
Japanese government bonds	¥	480	¥	493	¥	13		¥	480	¥	491	¥	11		¥	—		¥	(2	)	¥	(2	)
Agency mortgage-backed securities		382		382		—			310		321		11			(72	)		(61	)		11
Total	¥	862	¥	875	¥	13		¥	790	¥	812	¥	22		¥	(72	)	¥	(63	)	¥	9

Available-for-sale securities measured at fair value increased by ¥7,434 billion from the end of the previous fiscal year to ¥26,547 billion as of September 30, 2020. The increase was due primarily to an increase in Japanese government bonds. Held-to-maturity securities measured at amortized cost decreased by ¥72 billion from the end of the previous fiscal year to ¥790 billion as of September 30, 2020. See note 3 to our consolidated financial statements for details of other investments included within investments.

Trading Account Assets

Trading account assets increased by ¥1,374 billion from the end of the previous fiscal year to ¥29,467 billion as of September 30, 2020. The increase was due mainly to increases in Japanese government bonds held for trading purposes and in U.S. treasury bonds and other foreign government bonds for which the fair value option was elected due to purchases.

19

Liabilities

The following table shows our liabilities as of March 31, 2020 and September 30, 2020:

	As of				Increase (decrease)
	March 31, 2020		September 30, 2020
	(in billions of yen)
Deposits	¥	144,948	¥	149,267	¥	4,319
Due to trust accounts		250		564		314
Call money and funds purchased		2,263		1,904		(359	)
Payables under repurchase agreements		17,971		19,326		1,355
Payables under securities lending transactions		1,424		1,476		52
Other short-term borrowings		4,914		7,526		2,612
Trading account liabilities		12,417		10,590		(1,827	)
Bank acceptances outstanding		168		181		13
Income taxes payable		69		56		(13	)
Deferred tax liabilities		26		37		11
Accrued expenses		249		179		(70	)
Long-term debt		10,346		11,049		703
Other liabilities		6,998		6,300		(698	)
Total liabilities	¥	202,043	¥	208,455	¥	6,412

Total liabilities increased by ¥6,412 billion from ¥202,043 billion as of March 31, 2020 to ¥208,455 billion as of September 30, 2020. The increase was due primarily to increases of ¥4,319 billion in deposits and ¥3,974 billion in short-term borrowings, offset by a decrease of ¥1,827 billion in trading account liabilities. We analyze short-term borrowings, consisting of due to trust accounts, call money and funds purchased, payables under repurchase agreements, payables under securities lending transactions and other short-term borrowings, on a combined basis.

Deposits

The following table shows a breakdown of our deposits as of March 31, 2020 and September 30, 2020:

	As of				Increase (decrease)
	March 31, 2020		September 30, 2020
	(in billions of yen)
Domestic:
Noninterest-bearing deposits	¥	28,110	¥	28,974	¥	864
Interest-bearing deposits		86,651		90,387		3,736
Total domestic deposits		114,761		119,361		4,600
Foreign:
Noninterest-bearing deposits		2,186		1,960		(226	)
Interest-bearing deposits		28,001		27,946		(55	)
Total foreign deposits		30,187		29,906		(281	)
Total deposits	¥	144,948	¥	149,267	¥	4,319

Total deposits increased by ¥4,319 billion from the end of the previous fiscal year to ¥149,267 billion as of September 30, 2020. Domestic deposits increased by ¥4,600 billion from the end of the previous fiscal year to ¥119,361 billion as of September 30, 2020. Domestic interest-bearing deposits increased by ¥3,736 billion from the end of the previous fiscal year to ¥90,387 billion as of September 30, 2020 due mainly to increases in

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ordinary deposits and other deposits, and domestic noninterest-bearing deposits increased by ¥864 billion from the end of the previous fiscal year to ¥28,974 billion as of September 30, 2020. Foreign deposits decreased by ¥281 billion from the end of the previous fiscal year to ¥29,906 billion as of September 30, 2020.

Short-term Borrowings

The following table shows a breakdown of our short-term borrowings as of March 31, 2020 and September 30, 2020:

	As of												Increase (decrease)
	March 31, 2020						September 30, 2020
	Domestic		Foreign		Total		Domestic		Foreign		Total		Domestic		Foreign			Total
	(in billions of yen)
Due to trust accounts	¥	250	¥	—	¥	250	¥	564	¥	—	¥	564	¥	314	¥	—		¥	314
Call money and funds purchased, and payables under repurchase agreements and securities lending transactions		6,616		15,042		21,658		7,733		14,973		22,706		1,117		(69	)		1,048
Other short-term borrowings		4,442		472		4,914		6,524		1,002		7,526		2,082		530			2,612
Total short-term borrowings	¥	11,308	¥	15,514	¥	26,822	¥	14,821	¥	15,975	¥	30,796	¥	3,513	¥	461		¥	3,974

Total short-term borrowings increased by ¥3,974 billion from the end of the previous fiscal year to ¥30,796 billion as of September 30, 2020. Domestic short-term borrowings increased by ¥3,513 billion due mainly to increases in other short-term borrowings and payables under repurchase agreements. Foreign short-term borrowings increased by ¥461 billion due mainly to an increase in other short-term borrowings.

Trading Account Liabilities

Trading account liabilities decreased by ¥1,827 billion from the end of the previous fiscal year to ¥10,590 billion as of September 30, 2020. The decrease was due mainly to decreases in the market value of derivative instruments based on interest rate contracts and foreign exchange contracts reflecting fluctuations in long-term interest rates and foreign currency exchange rates.

Equity

The following table shows a breakdown of equity as of March 31, 2020 and September 30, 2020:

	As of						Increase (decrease)
	March 31, 2020			September 30, 2020
	(in billions of yen)
MHFG shareholders’ equity:
Common stock	¥	5,827		¥	5,826		¥	(1	)
Retained earnings		2,700			2,797			97
Accumulated other comprehensive income (loss), net of tax		(9	)		134			143
Treasury stock, at cost		(6	)		(7	)		(1	)
Total MHFG shareholders’ equity		8,512			8,750			238
Noncontrolling interests		664			390			(274	)
Total equity	¥	9,176		¥	9,140		¥	(36	)

Total equity decreased by ¥36 billion from the end of the previous fiscal year to ¥9,140 billion as of September 30, 2020 due mainly to a decrease in noncontrolling interests, offset in part by increases in accumulated other comprehensive income, net of tax and retained earnings.

Retained earnings increased by ¥97 billion from the end of the previous fiscal year to ¥2,797 billion as of September 30, 2020. The increase was due primarily to net income attributable to MHFG shareholders for the six

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months ended September 30, 2020 of ¥316 billion, offset in part by the cumulative effect of change in accounting principles, net of tax of ¥125 billion due primarily to adoption of ASU No.2016-13, as described in note 2 to our consolidated financial statements included elsewhere in this report, and dividend payments of ¥95 billion.

We recorded accumulated other comprehensive income, net of tax of ¥134 billion as of September 30, 2020 compared to accumulated other comprehensive loss, net of tax of ¥9 billion as of March 31, 2020. The change was due primarily to pension liability adjustments of ¥191 billion, offset in part by foreign currency translation adjustments of ¥37 billion,

Noncontrolling interests decreased by ¥274 billion from the end of the previous fiscal year to ¥390 billion as of September 30, 2020. The decrease was due mainly to the deconsolidation of certain investment funds, offset in part by increases in net assets and the share of noncontrolling shareholders of certain investment funds that we consolidate.

Liquidity

We continuously endeavor to enhance the management of our liquidity profile to meet our customers’ loan demand and deposit withdrawals and respond to unforeseen situations such as adverse movements in stock prices, foreign currency exchange rates, interest rates and other markets or changes in general domestic or international conditions. We manage our liquidity profile through the continuous monitoring of our cash flow situation, the enforcement of upper limits on funds raised in financial markets and other means as further set forth in “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk-Liquidity Risk Management” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission.

Deposits, based on our broad customer base and brand recognition in Japan, have been our primary source of liquidity. Our total deposits increased by ¥4,319 billion, or 3.0%, from the end of the previous fiscal year to ¥149,267 billion as of September 30, 2020. Our average balance of deposits for the six months ended September 30, 2020 of ¥151,192 billion exceeded our average balance of loans for the same period by ¥59,719 billion. We invested the excess portion primarily in marketable securities and other high liquidity assets.

Secondary sources of liquidity include short-term borrowings such as call money and funds purchased and payables under repurchase agreements. We also issue long-term debt, including both senior and subordinated debt, as additional sources for liquidity. We utilize short-term borrowings to diversify our funding sources and to manage our funding costs. We raise subordinated long-term debt for the purpose of improving our capital adequacy ratios, which also enhances our liquidity profile. We believe we are able to access such sources of liquidity on a stable and flexible basis based on our current credit ratings. The following table shows credit ratings assigned to us and to our principal banking subsidiaries by S&P and Moody’s as of November 30, 2020:

	As of November 30, 2020
	S&P			Moody’s
	Long-term	Short-term	Stand-alone credit profile	Long-term	Short-term	Baseline credit assessment
Mizuho Financial Group	A-	—	—	A1	P-1	—
Mizuho Bank	A	A-1	a	A1	P-1	baa1
Mizuho Trust & Banking	A	A-1	a	A1	P-1	baa1

We source our funding in foreign currencies primarily from corporate customers, foreign governments, financial institutions and institutional investors, through short-term and long-term financing, under terms and pricing commensurate with our credit ratings above, and customer deposits. In the event of future declines in our credit quality or that of Japan in general, we expect to be able to purchase foreign currencies in sufficient amounts using the yen funds raised through our domestic customer base. As further measures to support our foreign currency liquidity, we hold foreign debt securities, maintain credit lines and swap facilities denominated in foreign currencies.

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In order to maintain appropriate funding liquidity, our principal banking subsidiaries hold highly liquid investment assets such as Japanese government bonds as liquidity reserve assets. We monitor the amount of liquidity reserve assets and report such amount to the Risk Management Committee, the Balance Sheet Management Committee, the Executive Management Committee and the President & Group CEO on a regular basis. Minimum regulatory reserve amounts, or the reserve amount deposited with the Bank of Japan pursuant to applicable regulations that is calculated as a specified percentage of the amount of deposits held by our principal banking subsidiaries, are excluded in connection with our management of liquidity reserve asset levels. We established and apply classifications for the cash flow conditions affecting the group, including the amount of liquidity reserve assets, that range from “Normal” to “Anxious” and “Crisis” categories, and take appropriate actions based on such conditions. As of September 30, 2020, the balance of Japanese government bonds included within our investments and measured at fair value was ¥19.9 trillion (excluding held-to-maturity securities), and a majority of this amount, which has historically not fluctuated significantly over the course of a fiscal year, was classified as the principal component of liquidity reserve assets.

Related to regulatory liquidity requirements, the liquidity coverage ratio (“LCR”) standard has been introduced in Japan. The minimum LCR under the LCR guidelines is 100% on both a consolidated and non-consolidated basis for banks with international operations or on a consolidated basis for bank holding companies with international operations. The LCR disclosure guidelines of the Financial Services Agency require banks and bank holding companies with international operations to disclose the three-month averages of daily LCR. Set forth below are the averages of the daily end balances of consolidated LCR data of Mizuho Financial Group, and consolidated and non-consolidated LCR data of our principal banking subsidiaries, for the second quarter of the fiscal year ending March 31, 2021. The figures are calculated based on our financial statements prepared in accordance with Japanese GAAP and the LCR guidelines established by the Financial Services Agency. All yen figures in this table are truncated.

	Second Quarter of Fiscal Year ending March 31, 2021
	(in billions of yen, except percentages)
Mizuho Financial Group (Consolidated)
Total high-quality liquid assets (“HQLA”) allowed to be included in the calculation (weighted)	¥	66,704
Net cash outflows (weighted)		49,157
LCR		135.6	%
Mizuho Bank (Consolidated)
Total HQLA allowed to be included in the calculation (weighted)	¥	62,838
Net cash outflows (weighted)		46,177
LCR		136.0	%
Mizuho Bank (Non-consolidated)
Total HQLA allowed to be included in the calculation (weighted)	¥	62,112
Net cash outflows (weighted)		44,915
LCR		138.2	%
Mizuho Trust and Banking (Consolidated)
Total HQLA allowed to be included in the calculation (weighted)	¥	2,251
Net cash outflows (weighted)		1,731
LCR		129.9	%
Mizuho Trust and Banking (Non-Consolidated)
Total HQLA allowed to be included in the calculation (weighted)	¥	2,187
Net cash outflows (weighted)		1,633
LCR		133.8	%

For more information on LCR, see “Item 4. Information on the Company—Supervision and Regulation—Liquidity” in our most recent Form 20-F.

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Capital Adequacy

All yen figures and percentages in this subsection are truncated. Accordingly, the total of each column of figures may not be equal to the total of the individual items.

Regulatory Capital Requirements

Mizuho Financial Group and its principal banking subsidiaries are subject to regulatory capital requirements administered by the Financial Services Agency in accordance with the provisions of the Banking Act and related regulations. Failure to meet minimum capital requirements may initiate certain mandatory actions by regulators that, if undertaken, could have a direct material effect on our financial condition and results of operations.

The capital adequacy guidelines applicable to Japanese banks and bank holding companies with international operations supervised by the Financial Services Agency closely follow the risk-adjusted approach proposed by the Bank for International Settlements and are intended to further strengthen the soundness and stability of Japanese banks. Under the risk-based capital framework of these guidelines, balance sheet assets and off-balance sheet exposures are assessed according to broad categories of relative risk, based primarily on the credit risk of the counterparty, country transfer risk and the risk regarding the category of transactions.

In December 2010, the Basel Committee on Banking Supervision (“BCBS”) issued its Basel III rules text, which builds on the International Convergence of Capital Measurement and Capital Standards document (“Basel II”), to strengthen the regulation, supervision and risk management of the banking sector. Basel III text presents the details of global regulatory standards on bank capital adequacy and liquidity. The rules text sets out higher and better quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based requirement, and the introduction of the capital conservation buffer and countercyclical capital buffer as measures to promote the build-up of capital that can be drawn down in periods of stress, and the introduction of two global liquidity standards. For further information of the leverage ratio and the two global liquidity standards, see “Leverage Ratio” below and “Liquidity” above, respectively.

The Financial Services Agency’s revisions to its capital adequacy guidelines became effective from March 31, 2013, which generally reflect rules in the Basel III text that have been applied from January 1, 2013.

Under the revised guidelines, the minimum capital adequacy ratio is 8% on both a consolidated and non-consolidated basis for banks with international operations, such as Mizuho Bank and Mizuho Trust & Banking, or on a consolidated basis for bank holding companies with international operations, such as Mizuho Financial Group. Within the minimum capital adequacy ratio, the Common Equity Tier 1 capital requirement is 4.5% and the Tier 1 capital requirement is 6.0%.

Under Basel III, capital instruments that no longer qualify as Tier 2 capital are being phased out beginning March 2013 by increments of 10% until becoming fully disqualified in March 2022. Our existing subordinated debt issued before March 2013 (the amounts thereof included within Tier 2 capital as of September 30, 2020 being ¥268.8 billion) are subject to the phase-out arrangements.

Under the revised capital adequacy guidelines based on the Basel III rules that have been applied to banks and bank holding companies each with international operations from March 31, 2013, there are regulatory adjustments such as goodwill and other intangibles, deferred tax assets, investments in the capital of banking, financial and insurance entities, etc. that shall be deducted under certain conditions for the purpose of calculating capital adequacy ratios, and the requirements of regulatory adjustments were enhanced under the revised capital adequacy guidelines. For example, under the capital adequacy guidelines prior to the revision thereto under the Basel III rules, the maximum amount of net deferred tax assets under Japanese GAAP that major Japanese banks, including bank holding companies, could record without diminishing the amount of Tier 1 capital for purposes of calculating capital adequacy ratio was 20% of Tier 1 capital. Under the revised capital adequacy guidelines based

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on the Basel III rules, deferred tax assets that arise from temporary differences will be recognized as part of Common Equity Tier 1 capital, with recognition capped at 10% of Common Equity Tier 1 capital under certain conditions, while other deferred tax assets, such as those relating to net loss carryforwards, will be deducted in full from Common Equity Tier 1 capital net of deferred tax liabilities.

In November 2015, the Financial Services Agency published the revised capital adequacy guidelines and related ordinances to introduce the capital buffer requirements under the Basel III rules for Japanese banks and bank holding companies with international operations, which include the capital conservation buffer, the countercyclical capital buffer and the additional loss absorbency requirements for global systemically important banks (“G-SIBs”) and domestic systemically important banks (“D-SIBs”). These guidelines have become effective on March 31, 2016. The capital conservation buffer, the countercyclical capital buffer and the additional loss absorption capacity requirement for G-SIBs and D-SIBs must be met with Common Equity Tier 1 capital under the revised guidelines, and if such buffer requirements are not satisfied, a capital distribution constraints plan is required to be submitted to the Financial Services Agency and carried out. The capital conservation buffer became fully effective in March 2019 at 2.5%. In addition, subject to national discretion by the respective regulatory authorities, if the relevant national authority judges a period of excess credit growth to be leading to the build-up of system-wide risk, a countercyclical capital buffer ranging from 0% to 2.5% would also be imposed on banking organizations. The countercyclical capital buffer is a weighted average of the buffers deployed across all the jurisdictions to which the banking organization has credit exposures. Further, we are currently designated as both a G-SIB and D-SIB, and the additional loss absorption capacity requirement applied to us was 1.0%. The additional loss absorption capacity requirement was the same as that imposed by the Financial Stability Board (“FSB”), which became fully effective in March 2019 at 1.0%.

Under the capital adequacy guidelines, banks and bank holding companies each with international operations are required to measure and apply capital charges with respect to their credit risk, market risk and operational risk. Under the guidelines, banks and bank holding companies have several choices for the methodologies to calculate their capital requirements for credit risk, market risk and operational risk. Approval of the Financial Services Agency is necessary to adopt advanced methodologies for calculation, and Mizuho Financial Group started to apply the advanced internal ratings-based approach for the calculation of credit risk from the fiscal year ended March 31, 2009 and also to apply the advanced measurement approaches for the calculation of operational risk from September 30, 2009.

In December 2017, the BCBS published the finalized Basel III reforms endorsed by the Group of Central Bank Governors and Heads of Supervision(“GHOS”). The finalized reforms complement the initial phase of Basel III reforms set forth above, seek to restore credibility in the calculation of risk-weighted assets and improve the comparability of banks’ capital ratios. Such reforms include the following elements:

• a revised standardized approach for credit risk, which is designed to improve the robustness and risk sensitivity of the existing approach;

• revisions to the internal ratings-based approach for credit risk, where the use of the most advanced internally modelled approaches for low-default portfolios will be limited;

• revisions to the credit valuation adjustment (CVA) framework, including the removal of the internally modelled approach and the introduction of a revised standardized approach;

• a revised standardized approach for operational risk, which will replace the existing standardized approaches and the advanced measurement approaches;

• revisions to the capital floor, under which banks’ risk-weighted assets generated by internal models must be no lower than 72.5% of the total risk-weighted assets as calculated using only the standardized approaches under the revised Basel III framework; and

• requirements to disclose their risk-weighted assets based on the standardized approaches.

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In addition, under the finalized Basel III reforms, G-SIBs are required to meet a leverage ratio buffer, which will take the form of a Tier 1 capital buffer set at 50% of the applicable G-SIB’s risk-weighted capital buffer, and various refinements are made to the definition of the leverage ratio exposure measure based on the text of the leverage ratio framework issued by the BCBS in January 2014. Furthermore, in January 2019, the GHOS endorsed the finalized market risk capital framework that was scheduled to take effect as of January 1, 2022, concurrent with the implementation of the finalized Basel III reforms. The revised framework was initially scheduled to mainly take effect from January 1, 2022. In March 2020, however, the GHOS announced that, in order to provide additional operational capacity for banks and supervisors to respond to the immediate financial stability priorities resulting from the impact of the coronavirus disease (COVID-19) on the global banking system, it endorsed a set of measures, including the deferral of the implementation date of the finalized Basel III reforms by one year to January 1, 2023, and the extension of the accompanying transitional arrangements for the output floor by one year to January 1, 2028, as well as the implementation date of the finalized market risk capital framework by one year to January 1, 2023. As a result, under the finalized Basel III reforms, the revisions to the capital floor will be phased in from January 1, 2023, with the initial capital floor of 50%, and will be fully implemented at 72.5% from January 1, 2028, and the leverage ratio requirements under the finalized definition of the leverage ratio exposure measure and the leverage ratio buffer requirement for G-SIBs will take effect from January 1, 2023.

Following the announcement by the GHOS described above, on March 30, 2020, the Financial Services Agency also announced that the Basel III finalization framework is scheduled to be implemented in Japan from March 2023. In June 2020, in coordination with the monetary policy of the Bank of Japan in response to the impact of the COVID-19, the Financial Services Agency amended the leverage ratio regulations and TLAC regulations which will exclude amounts of deposits to the Bank of Japan from calculation of the leverage ratio and external TLAC ratio on total exposure basis from June 30, 2020 to March 31, 2021. In addition, due to the uncertainty on the impact of COVID-19, the Financial Services Agency announced that the current minimum leverage ratio of 3% and the current minimum external TLAC ratio on total exposure basis of 6% will be maintained from June 30, 2020 until March 31, 2021.

Leverage Ratio

The Leverage Ratio framework is critical and complementary to the risk-based capital framework that will help ensure broad and adequate capture of both on- and off-balance sheet sources of banks’ leverage. This simple, non-risk-based measure will restrict the build-up of excessive leverage in the banking sector to avoid destabilizing deleveraging processes that can damage the broader financial system and the economy. Implementation of the leverage ratio requirements began with bank-level reporting to national supervisors of the leverage ratio and its components, and public disclosure became required beginning January 2015. Basel III’s leverage ratio is defined as the “capital measure” (numerator) divided by the “exposure measure” (denominator) and is expressed as a percentage. The capital measure is defined as Tier 1 capital, and the minimum leverage ratio is defined as 3%.

The Financial Services Agency applied the requirement to meet the minimum leverage ratio for bank holding companies and banks with international operations from March 31, 2019. The minimum leverage ratio is defined as 3% on a consolidated basis for bank holding companies with international operations, such as Mizuho Financial Group, or on both a consolidated and non-consolidated basis for banks with international operations, such as Mizuho Bank and Mizuho Trust & Banking.

The implementation of the leverage ratio requirements under the finalized definition of the leverage ratio exposure measure and the leverage ratio buffer requirement for G-SIBs under the finalized Basel III reforms were deferred for one year according to the deferral of Basel III implementation announced by GHOS described above. They will take effect from January 1, 2023.

In June 2019, to address the window-dressing of the leverage ratio, BCBS agreed that internationally-active banks must disclose the amounts of adjusted gross securities financing transaction (“SFT”) assets based on

26

quarter-end values and on an average of daily values over the quarter as part of their Pillar 3 requirements, in addition to disclosure of the total leverage exposure and the leverage ratio as calculated using the averaged value of SFTs. Such disclosure requirement will apply to the Pillar 3 disclosure requirements associated with the version of the leverage ratio standard that will serve as the Pillar 1 minimum capital requirement and its implementation was deferred for one year to January 1, 2023 according to the announcement by the GHOS described above.

According to the deferral of Basel III finalization framework announced by Financial Services Agency described above, the leverage ratio requirements under the finalized definition, the leverage ratio buffer requirement for G-SIBs under the finalized Basel III reforms and the Pillar 3 disclosure requirements described above are scheduled to be implemented in Japan from March 2023.

Total Loss Absorbing Capacity

Related to regulatory capital requirements, in November 2015, the FSB issued the final TLAC standard for G-SIBs. The TLAC standard has been designed so that failing G-SIBs will have sufficient loss-absorbing and recapitalization capacity available in resolution for authorities to implement an orderly resolution. G-SIBs are required to meet the TLAC requirement alongside the minimum regulatory requirements set out in the Basel III framework.

Following the publication of the final TLAC standards for G-SIBs by the FSB, in April 2016, the Financial Services Agency published an explanatory paper outlining its approach for the introduction of the TLAC framework in Japan, and a revised version of this document was published in April 2018. In March 2019, the Financial Services Agency published regulatory notices and related materials to implement the TLAC requirements in Japan, which is phased in for Japanese G-SIBs from March 31, 2019. According to the Financial Services Agency’s approach above, which is subject to change based on future international discussions, the preferred resolution strategy for G-SIBs in Japan as well as a domestic systematically important bank in Japan which is deemed of particular need for a cross-border resolution arrangement and of particular systemic significance to Japanese financial system if it fails (together with G-SIBs in Japan, the “Covered SIBs”) is Single Point of Entry (“SPE”) resolution, in which resolution tools are applied to the ultimate holding company of a group by a single national resolution authority, although the actual measures to be taken will be determined on a case-by-case basis considering the actual condition of the relevant Covered SIB in crisis. To implement this SPE resolution strategy effectively under the FSB’s final TLAC standards and the Japanese TLAC requirements, the ultimate holding company in Japan of the relevant Covered SIB designated as the resolution entity in Japan of such Covered SIB by the Financial Services Agency (the “Domestic Resolution Entity”) is required to (i) meet the minimum external TLAC requirements, and (ii) cause its material subsidiaries or material sub-groups that are designated as systemically important by the Financial Services Agency or that are subject to TLAC requirements or similar requirements by the relevant foreign authority to maintain a certain level of capital and debt recognized as having loss-absorbing and recapitalization capacity, or internal TLAC. Under the Japanese TLAC regulations, the Financial Services Agency designated Mizuho Financial Group as the Domestic Resolution Entity, and designated Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities as Mizuho Financial Group’s material subsidiaries in Japan. External TLAC eligible instruments generally consist of instruments issued by the Domestic Resolution Entity of the relevant Covered SIB that meet the criteria for inclusion in external TLAC requirements and others less any regulatory adjustments. Internal TLAC eligible instruments generally consist of instruments issued by the material subsidiaries of the relevant Covered SIBs designated as systemically important by the Financial Services Agency, which are subject to the internal TLAC requirements such as subordinated debt that meet the criteria for inclusion in internal TLAC requirements and others less any regulatory adjustments.

Under the Japanese TLAC regulations, G-SIBs are required to meet a minimum TLAC requirement of at least 16% of the resolution group’s risk-weighted assets as from March 31, 2019 and at least 18% as from March 31, 2022. Minimum TLAC must also be at least 6% of the Basel III leverage ratio denominator from

27

March 31, 2019, and at least 6.75% from March 31, 2022. In addition, Japanese G-SIBs are allowed to count the Japanese Deposit Insurance Fund Reserves in an amount equivalent to 2.5% of their consolidated risk-weighted assets from March 31, 2019, and 3.5% of their consolidated risk-weighted assets from March 31, 2022, as their external TLAC.

Unless otherwise specified, the regulatory capital and leverage ratio information set forth in this “—Capital Adequacy” is based on the current Basel III rules.

Consolidated Capital Adequacy Ratios and Leverage Ratios

Our consolidated capital adequacy ratios and leverage ratios as of March 31, 2020 and September 30, 2020, calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency, were as set forth in the following table:

	As of						Increase (decrease)
	March 31, 2020			September 30, 2020
	(in billions of yen, except percentages)
Common Equity Tier 1 capital	¥	7,244.7		¥	7,452.6		¥	207.8
Additional Tier 1 capital		1,779.6			2,014.8			235.2
Tier 1 capital		9,024.4			9,467.5			443.0
Tier 2 capital		1,697.8			1,665.2			(32.6	)
Total capital	¥	10,722.2		¥	11,132.7		¥	410.4
Risk-weighted assets	¥	62,141.2		¥	64,404.9		¥	2,263.7
Common Equity Tier 1 capital ratio		11.65	%		11.57	%		(0.08	)%
Required Common Equity Tier 1 capital ratio(1)		8.01	%		8.01	%		—
Tier 1 capital ratio		14.52	%		14.69	%		0.17	%
Required Tier 1 capital ratio(1)		9.51	%		9.51	%		—
Total capital ratio		17.25	%		17.28	%		0.03	%
Required total capital ratio(1)		11.51	%		11.51	%		—
CET1 available after meeting the bank’s minimum capital requirements		7.15	%		7.07	%		(0.08	)%
Leverage ratio		4.08	%		4.83	%(2)		0.75	%

Note:

(1) The required ratios disclosed above, as of March 31, 2020 and September 30, 2020, include the capital conservation buffer of 2.5%, the countercyclical capital buffer of 0.01%, and the additional loss absorbency requirements for G-SIBs and D-SIBs of 1.0%, which are all in addition to the regulatory minima. These buffers and additional loss absorbency requirements are applied to us but not to our banking subsidiaries.

(2) As of September 30, 2020, the leverage ratio on a consolidated basis (excluding the impact of any applicable temporary exemption of deposits with the Bank of Japan) was 4.07%.

Our total capital ratio as of September 30, 2020 was 17.28%, an increase of 0.03% compared to March 31, 2020. Our Tier 1 capital ratio as of September 30, 2020 was 14.69%, an increase of 0.17% compared to March 31, 2020. Our Common Equity Tier 1 capital ratio as of September 30, 2020 was 11.57%, a decrease of 0.08% compared to March 31, 2020. The decrease in Common Equity Tier 1 capital ratio was due mainly to an increase in risk-weighted assets and the increases in our total capital ratio and our Tier 1 capital ratio were due mainly to an increase in the “ Directly issued qualifying Additional Tier 1 instruments plus related stock surplus of which classified as liabilities under applicable accounting standards.” We believe that we were in compliance with all capital adequacy requirements to which we were subject as of September 30, 2020.

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Principal Banking Subsidiaries

Capital adequacy ratios and leverage ratios of our principal banking subsidiaries, on a consolidated basis, as of March 31, 2020 and September 30, 2020, calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency, were as set forth in the following table:

	As of						Increase (decrease)
	March 31, 2020			September 30, 2020
Mizuho Bank
Common Equity Tier 1 capital ratio		11.39	%		11.30	%		(0.09	)%
Tier 1 capital ratio		14.50	%		14.66	%		0.16	%
Total capital ratio		17.29	%		17.30	%		0.01	%
Leverage ratio		4.02	%		4.82	%(1)		0.80	%
Mizuho Trust & Banking
Common Equity Tier 1 capital ratio		23.64	%		26.24	%		2.60	%
Tier 1 capital ratio		23.66	%		26.24	%		2.58	%
Total capital ratio		23.74	%		26.27	%		2.53	%
Leverage ratio		6.79	%		9.79	%(1)		3.00	%

Note:

(1) As of September 30, 2020, the leverage ratios on a consolidated basis (excluding the impact of any applicable temporary exemption of deposits with the Bank of Japan) of Mizuho Bank and Mizuho Trust & Banking were 4.06% and 6.86%, respectively.

We believe each of our principal banking subsidiaries was in compliance with all capital adequacy requirements as of September 30, 2020.

Our securities subsidiary in Japan is also subject to the capital adequacy requirement under the Financial Instruments and Exchange Act. Under this requirement, securities firms must maintain a minimum capital adequacy ratio of 120% calculated as a percentage of capital accounts less certain assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market, counterparty and basic risks. Specific guidelines are issued as a ministerial ordinance that details the definition of essential components of the capital ratios, including capital, disallowed assets and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory reporting and a capital ratio of less than 100% may lead to a temporary suspension of all or part of the business operations and further, to the cancellation of the license to act as a securities broker and dealer. We believe, as of September 30, 2020, that our securities subsidiary in Japan was in compliance with all capital adequacy requirements.

Off-balance-sheet Arrangements

See note 14 and note 15 to our consolidated financial statements included elsewhere in this report.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31, 2020			September 30, 2020
	(in millions of yen)
Assets:
Cash and due from banks		2,325,139			1,648,974
Interest-bearing deposits in other banks		39,625,975			41,588,074
Call loans and funds sold		1,006,991			534,345
Receivables under resale agreements		18,580,919			12,666,088
Receivables under securities borrowing transactions		2,216,059			2,185,575
Trading account assets (including assets pledged that secured parties are permitted to sell or repledge of ¥4,978,497 million at March 31, 2020 and ¥7,696,203 million at September 30, 2020)		28,092,871			29,467,045
Investments (Note 3):
Available-for-sale securities (including assets pledged that secured parties are permitted to sell or repledge of ¥1,036,534 million at March 31, 2020 and ¥1,542,200 million at September 30, 2020), net of allowance		19,112,952			26,546,800
Held-to-maturity securities (including assets pledged that secured parties are permitted to sell or repledge of ¥297,240 million at March 31, 2020 and ¥308,448 million at September 30, 2020)		862,031			789,978
Equity securities (including assets pledged that secured parties are permitted to sell or repledge of ¥92,806 million at September 30,2020)		3,256,717			3,501,678
Other investments		443,951			467,963
Loans (Notes 4 and 5)		87,528,088			90,475,747
Allowance for credit losses on loans		(440,855	)		(622,526	)
Loans, net of allowance		87,087,233			89,853,221
Premises and equipment—net		1,856,248			1,800,234
Due from customers on acceptances		167,764			181,435
Accrued income		323,632			284,667
Goodwill		92,997			92,695
Intangible assets		64,689			60,377
Deferred tax assets		136,713			61,233
Other assets (Note 6)		5,965,879			5,864,238
Total assets		211,218,760			217,594,620

The following table presents the assets of consolidated variable interest entities (“VIE”s), which are included in the consolidated balance sheets above. The assets in the table below can be used only to settle obligations of consolidated VIEs.

	March 31, 2020		September 30, 2020
	(in millions of yen)
Assets of consolidated VIEs:
Cash and due from banks		8,749		1,592
Interest-bearing deposits in other banks		61,439		74,205
Call loans and funds sold		422,304		291,078
Trading account assets		2,438,607		2,386,317
Investments		62,262		80,226
Loans, net of allowance		2,285,831		7,682,432
All other assets		535,954		519,169
Total assets		5,815,146		11,035,019

See the accompanying Notes to the Consolidated Financial Statements.

F-1

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)—(Continued)

	March 31, 2020			September 30, 2020
	(in millions of yen)
Liabilities and equity:
Deposits:
Domestic:
Noninterest-bearing deposits		28,109,943			28,974,310
Interest-bearing deposits		86,651,036			90,386,518
Foreign:
Noninterest-bearing deposits		2,186,203			1,960,284
Interest-bearing deposits		28,001,485			27,946,322
Due to trust accounts		249,737			563,543
Call money and funds purchased		2,263,076			1,903,686
Payables under repurchase agreements (Note 19)		17,970,662			19,326,143
Payables under securities lending transactions (Note 19)		1,423,638			1,475,850
Other short-term borrowings		4,914,485			7,526,025
Trading account liabilities		12,416,785			10,590,312
Bank acceptances outstanding		167,764			181,435
Income taxes payable		68,557			55,659
Deferred tax liabilities		25,874			36,967
Accrued expenses		249,344			178,849
Long-term debt (including liabilities accounted for at fair value of ¥2,537,082 million at March 31, 2020 and ¥2,802,428 million at September 30, 2020) (Note 17)		10,346,152			11,049,044
Other liabilities (Note 6)		6,998,395			6,299,620
Total liabilities		202,043,136			208,454,567
Commitments and contingencies (Note 14)
Equity:
MHFG shareholders’ equity:
Common stock (Note 7)-no par value, authorized 4,800,000,000 shares at March 31, 2020 and September 30, 2020, and issued 2,539,249,894 shares at March 31, 2020 and September 30, 2020		5,827,500			5,826,427
Retained earnings		2,700,774			2,796,736
Accumulated other comprehensive income(loss), net of tax (Note 8)		(9,494	)		133,837
Less: Treasury stock, at cost-Common stock 3,210,681 shares at March 31, 2020, and 3,868,308 shares at September 30, 2020		(6,415	)		(7,024	)
Total MHFG shareholders’ equity		8,512,365			8,749,976
Noncontrolling interests		663,259			390,077
Total equity		9,175,624			9,140,053
Total liabilities and equity		211,218,760			217,594,620

The following table presents the liabilities of consolidated VIEs, which are included in the consolidated balance sheets above. The creditors or investors of the consolidated VIEs have no recourse to the MHFG Group, except where the Group provides credit enhancement through guarantees or other means.

	March 31, 2020		September 30, 2020
	(in millions of yen)
Liabilities of consolidated VIEs:
Payables under securities lending transactions		138,094		57,257
Other short-term borrowings		60,086		43,440
Trading account liabilities		34,205		24,317
Long-term debt		330,863		540,123
All other liabilities		948,715		911,992
Total liabilities		1,511,963		1,577,129

See the accompanying Notes to the Consolidated Financial Statements.

F-2

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Interest and dividend income:
Loans, including fees		719,443			541,675
Investments:
Interest		52,249			31,236
Dividends		36,109			24,875
Trading account assets		108,881			127,785
Call loans and funds sold		2,963			1,270
Receivables under resale agreements and securities borrowing transactions		150,728			22,894
Deposits in other banks		56,981			22,111
Total interest and dividend income		1,127,354			771,846
Interest expense:
Deposits		335,290			110,839
Trading account liabilities		28,794			28,208
Call money and funds purchased		4,771			1,282
Payables under repurchase agreements and securities lending transactions		197,410			33,267
Other short-term borrowings		15,855			11,988
Long-term debt		98,502			85,593
Total interest expense		680,622			271,177
Net interest income		446,732			500,669
Provision (credit) for credit losses (Notes 3 and 5)		13,773			60,633
Net interest income after provision (credit) for credit losses		432,959			440,036
Noninterest income (Note 16):
Fee and commission income		403,992			428,317
Foreign exchange gains (losses)—net		27,923			22,785
Trading account gains (losses)—net		395,405			257,591
Investment gains (losses)—net:
Debt securities		31,092			46
Equity securities		(126,648	)		266,119
Equity in earnings (losses) of equity method investees—net		22,066			5,788
Gains on disposal of premises and equipment		1,693			6,849
Other noninterest income		34,839			23,715
Total noninterest income		790,362			1,011,210
Noninterest expenses:
Salaries and employee benefits		334,041			346,150
General and administrative expenses		314,840			299,350
Occupancy expenses		103,693			93,314
Fee and commission expenses		101,175			93,016
Provision (credit) for credit losses on off-balance-sheet instruments		(8,248	)		(7,391	)
Other noninterest expenses		67,364			78,966
Total noninterest expenses		912,865			903,405
Income before income tax expense		310,456			547,841
Income tax expense (Note 11)		83,120			137,761
Net income		227,336			410,080
Less: Net income attributable to noncontrolling interests		14,352			94,194
Net income attributable to MHFG shareholders		212,984			315,886
	(in yen)
Earnings per common share (Note 10):
Basic net income per common share		83.96			124.50
Diluted net income per common share		83.95			124.49
Dividends per common share		37.50			37.50

See the accompanying Notes to the Consolidated Financial Statements.

F-3

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net income (Note)		227,336			410,080
Other comprehensive income (loss), net of tax		(56,583	)		142,550
Total comprehensive income		170,753			552,630
Less: Total comprehensive income attributable to noncontrolling interests		14,023			93,413
Total comprehensive income attributable to MHFG shareholders		156,730			459,217

Note: The amounts that have been reclassified out of Accumulated other comprehensive income (loss), net of tax into net income are presented in Note 8 “Accumulated other comprehensive income (loss), net of tax.”

See the accompanying Notes to the Consolidated Financial Statements.

F-4

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Common stock:
Balance at beginning of period		5,829,657			5,827,500
Performance-based stock compensation program		(806	)		(553	)
Other		(896	)		(520	)
Balance at end of period		5,827,955			5,826,427
Retained earnings:
Balance at beginning of period, previously reported		2,740,545			2,700,774
Cumulative effect of change in accounting principles, net of tax (Note 2)		1,052			(124,636	)
Balance at beginning of period, adjusted		2,741,597			2,576,138
Net income attributable to MHFG shareholders		212,984			315,886
Dividends declared		(95,197	)		(95,208	)
Other		(611	)		(80	)
Balance at end of period		2,858,773			2,796,736
Accumulated other comprehensive income (loss), net of tax (Note 8):
Balance at beginning of period, previously reported		164,021			(9,494	)
Cumulative effect of change in accounting principles (Note 2)		(1,052	)		—
Balance at beginning of period, adjusted		162,969			(9,494	)
Change during period		(56,254	)		143,331
Balance at end of period		106,715			133,837
Treasury stock, at cost:
Balance at beginning of period		(7,704	)		(6,415	)
Purchases of treasury stock		(1,851	)		(1,995	)
Disposal of treasury stock		2,745			1,386
Balance at end of period		(6,810	)		(7,024	)
Total MHFG shareholders’ equity		8,786,633			8,749,976
Noncontrolling interests:
Balance at beginning of period		774,974			663,259
Transactions between the MHFG Group and the noncontrolling interest shareholders		(79,439	)		(356,311	)
Dividends paid to noncontrolling interests		(9,618	)		(10,284	)
Net income attributable to noncontrolling interests		14,352			94,194
Other		(329	)		(781	)
Balance at end of period		699,940			390,077
Total equity		9,486,573			9,140,053

Note: The amounts that have been reclassified out of Accumulated other comprehensive income (loss), net of tax into net income are presented in Note 8 “Accumulated other comprehensive income (loss), net of tax.”

See the accompanying Notes to the Consolidated Financial Statements.

F-5

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Cash flows from operating activities:
Net income		227,336			410,080
Less: Net income attributable to noncontrolling interests		14,352			94,194
Net income attributable to MHFG shareholders		212,984			315,886
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		120,369			115,614
Provision (credit) for credit losses		13,773			60,633
Investment losses (gains)—net		95,556			(266,165	)
Equity in losses (earnings) of equity method investees—net		(22,066	)		(5,788	)
Foreign exchange losses (gains)—net		(172,215	)		(92,865	)
Deferred income tax expense (benefit)		(5,317	)		57,807
Net change in trading account assets		(3,753,226	)		(1,784,129	)
Net change in trading account liabilities		2,138,290			(1,874,766	)
Net change in loans held for sale		17,427			18,781
Net change in accrued income		24,548			34,404
Net change in accrued expenses		(5,248	)		(80,875	)
Other—net		122,946			(159,507	)
Net cash used in operating activities		(1,212,179	)		(3,660,970	)
Cash flows from investing activities:
Proceeds from sales of Available-for-sale securities		15,661,178			13,363,620
Proceeds from sales of Equity securities (1)		1,177,962			1,413,300
Proceeds from maturities of Available-for-sale securities		8,454,526			12,719,308
Proceeds from maturities of Held-to-maturity securities		525,912			60,947
Purchases of Available-for-sale securities		(24,330,083	)		(33,753,387	)
Purchases of Equity securities (1)		(1,209,953	)		(1,383,195	)
Proceeds from sales of loans		878,108			832,515
Net change in loans		(3,054,528	)		(3,944,882	)
Net change in call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		(2,127,069	)		6,141,641
Proceeds from sales of premises and equipment		8,748			12,856
Purchases of premises and equipment		(81,427	)		(73,768	)
Proceeds from sales of investments in subsidiaries (affecting the scope of consolidation)		—			25,190
Net cash used in investing activities		(4,096,626	)		(4,585,855	)
Cash flows from financing activities:
Net change in deposits		2,848,039			4,513,597
Net change in call money and funds purchased, and payables under repurchase agreements and securities lending transactions		2,549,230			1,490,083
Net change in due to trust accounts		7,619			313,806
Net change in other short-term borrowings		(358,650	)		2,628,438
Proceeds from issuance of long-term debt		1,223,618			1,270,809
Repayment of long-term debt		(2,195,976	)		(515,802	)
Proceeds from noncontrolling interests		33,009			73,688
Payments to noncontrolling interests		(105,424	)		(3,859	)
Proceeds from sales of treasury stock		1,515			839
Purchases of treasury stock		(1,436	)		(1,503	)
Purchases of treasury stock of subsidiaries		—			(5,414	)
Dividends paid		(95,165	)		(95,242	)
Dividends paid to noncontrolling interests		(9,618	)		(10,284	)
Net cash provided by financing activities		3,896,761			9,659,156
Effect of exchange rate changes on cash and cash equivalents		(279,689	)		(126,397	)
Net increase (decrease) in cash and cash equivalents (2)		(1,691,733	)		1,285,934
Cash and cash equivalents at beginning of period (2)		45,672,739			41,951,114
Cash and cash equivalents at end of period (2)		43,981,006			43,237,048
Supplemental disclosure of cash flow information:
Noncash investing activities:
Transfer of loans into loans held-for-sale		64,996			11,399

Notes:

(1) Proceeds from sales of Equity securities as well as Purchases of Equity securities include cash activity related to Other investments for the six months ended September 30, 2019 and 2020, the amounts of which are not significant.

(2) Cash and cash equivalents consists of Cash and due from banks and Interest-bearing deposits in other banks. Cash deposited with central banks that must be maintained to meet minimum regulatory requirements is classified as restricted cash and included in Cash and cash equivalents.

See the accompanying Notes to the Consolidated Financial Statements.

F-6

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of presentation

Mizuho Financial Group, Inc. (“MHFG”) is a joint stock corporation with limited liability under the laws of Japan. MHFG is a holding company for Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”), Asset Management One Co., Ltd. (“Asset Management One”), and other subsidiaries. MHFG, through its subsidiaries (“the MHFG Group,” or “the Group”), provides domestic and international financial services in Japan and other countries. For a discussion of the Group’s segment information, see Note 20 “Business segment information.” 

MHFG and its domestic subsidiaries as well as its foreign subsidiaries maintain their accounting records in accordance with the accounting standards of Japan and those standards of the countries in which they are domiciled. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform them to the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements are stated in Japanese yen, the currency of the country in which MHFG is incorporated and principally operates.

The accompanying consolidated financial statements include the accounts of MHFG and its subsidiaries. MHFG’s interim financial reporting period ends on September 30. Certain of MHFG’s subsidiaries have different interim financial reporting periods than September 30. For those subsidiaries with interim financial reporting periods within three months of MHFG’s interim financial reporting period, the effect of intervening events that materially affect the financial position or results of operations through the date of each of the periods presented in the MHFG’s consolidated financial statements have been considered for adjustment and/or disclosure. When determining whether to consolidate investee entities, the MHFG Group performs an analysis of the facts and circumstances of the particular relationships between the MHFG Group and the investee entities as well as the ownership of voting shares. The consolidated financial statements also include the accounts of VIEs for which MHFG or its subsidiaries have been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”). All significant intercompany transactions and balances have been eliminated upon consolidation. The MHFG Group accounts for investments in entities over which it has significant influence by using the equity method of accounting. These investments are included in Other investments and the Group’s proportionate share of income or loss is included in Equity in earnings (losses) of equity method investees-net. 

On June 25, 2020, a 1-for-10 share consolidation was approved at the Ordinary General Meeting of Shareholders and it became effective on October 1, 2020. All share and per share information with respect to MHFG’s common stock and preferred stock have been restated to reflect the effect of the share consolidation and related amendments to the articles of incorporation for all periods presented. See Equity on the consolidated balance sheets, Earnings per common share and Dividends per share on the consolidated statements of income, Note 7 “Preferred and common stock,” and Note 10 “Earnings per common share” for the restated figures. In addition, certain other comparative amounts for the prior period have been reclassified in order to conform to the current period’s presentation.

The unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related notes thereto included in the annual financial statements for the fiscal year ended March 31, 2020.

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. GAAP, but is not required for interim reporting purposes, has been condensed or omitted.

F-7

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Specific areas, among others, requiring the application of management’s estimates and judgment include assumptions pertaining to the allowance for credit losses, valuation of deferred tax assets, valuation of derivative financial instruments, valuation of investments and valuation of pension and other employee benefits. During times of pandemics and dislocated markets, such as COVID-19, estimates become more sensitive and it is reasonably possible that actual results could differ from estimates and assumptions made. The financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods.

Financial instruments—current expected credit losses (“CECL”)

The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance-sheet instrument exposures. This framework requires management’s estimate to reflect credit losses over the instrument’s remaining expected lives and consider expected future changes in macroeconomic conditions. The following note and Note 2 “Issued accounting pronouncements,” Note 3 “Investments,” Note 4 “Loans” and Note 5 “Allowance for credit losses on loans” provide further information about the impact that the adoption of ASC 326, “Financial Instruments - Credit Losses” (“ASC 326”) had on the MHFG Group.

Allowance for credit losses on loans

Effective April 1, 2020, the allowance for credit losses on loans is established for current expected credit losses on the MHFG Group’s loan portfolio in accordance with ASC 326. Prior to April 1, 2020, the allowance for credit losses on loans was established based on an incurred loss model in accordance with ASC 310, “Receivables” (“ASC 310”) and ASC 450, “Contingencies” (“ASC 450”).

The MHFG Group makes adjustments to the allowance for credit losses on loans through Provision (credit) for credit losses in the consolidated statements of income in each subsequent reporting period. Loan principal that management judges to be uncollectible, based on detailed loan reviews and a credit quality assessment, is charged off against the allowance for credit losses on loans. In general, the Group charges off loans when the Group determines that the obligor should be classified as substantially bankrupt or bankrupt. See Note 4 “Loans” for the definitions of obligor categories. Obligors in the retail portfolio segment are generally determined to be substantially bankrupt when they are past due for more than six months, and as for obligors in the corporate portfolio segment, the Group separately monitors the credit quality of each obligor without using time-based triggers. The Group does not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans.

The MHFG Group maintains an appropriate allowance for credit losses on loans to represent management’s estimate of the expected credit losses in the Group’s loan portfolio. The management evaluates the appropriateness of the allowance for credit losses on loans semi-annually. The allowance considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each instrument is determined by considering expected prepayments, contractual terms and cancellation features.

F-8

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

When determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is based on the Group’s stress testing and in line with the scenario used for the Group’s business plan. If the scenario does not reflect a sudden change in economic conditions adequately, it could be possible to make adjustments to the scenario. After the forecast period, the Group reverts to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives. The macroeconomic scenario is updated at least semi-annually and is reviewed accordingly to reflect current economic conditions and the Group’s expectation of future conditions on a timely basis. For April 1, 2020 and September 30, 2020, the Group used the most recent macroeconomic scenario available during the Group’s credit loss estimation process.

In terms of the internal risk ratings, for the corporate portfolio segment, the credit quality review process and the credit rating process serve as the basis for determining the allowance for credit losses on loans. Through such processes loans are categorized into groups to reflect the probability of default, whereby the MHFG Group’s management assesses the ability of borrowers to service their debt, taking into consideration current financial information, ability to generate cash, historical payment experience, analysis of relevant industry segments and current trends. For the retail portfolio segment, the different categories of past due status of loans are primarily utilized in the credit quality review and the credit rating processes as the basis for determining the allowance for credit losses on loans.

In general, the MHFG Group estimates expected credit losses collectively on the loans in the case of normal and watch obligors, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The allowance for credit losses on nonaccrual loans includes the allowance for groups of loans which were collectively evaluated for expected credit losses, in addition to the allowance for those loans that were individually evaluated for expected credit losses. See Note 4 “Loans” for the definitions of obligor categories and classification of nonaccrual loans.

The estimation of expected credit losses that are evaluated collectively begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one obligor category or rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to the MHFG Group’s estimated exposure at default. The credit loss factors incorporate the probability of default as well as the loss given default based on the historical loss rates and the external ratings such as S&P. The model and inputs used to determine credit losses on loans that are evaluated collectively are analyzed on a periodic basis by comparing the estimated values with the actual results subsequent to the balance sheet date. 

The MHFG Group divides its overall portfolio into domestic and foreign portfolios, and categorizes the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions.

The corporate portfolio segment consists of loans originated primarily by MHBK and MHTB, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. For the corporate portfolio segment, the MHFG Group considers key economic variables such as the Japanese and global gross domestic products and the Japanese interest rates in determining credit loss factors.

F-9

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The retail portfolio segment consists mainly of residential mortgage loans originated by MHBK, and it is divided into two classes based on their risk characteristics: housing loan and others. For the retail portfolio segment, the Japanese unemployment rate is applied as a key factor. As it pertains to troubled debt restructuring (“TDR”) loans in the retail portfolio segment, which are subject to collective evaluation for expected credit losses, the restructuring itself, as well as subsequent payment defaults, if any, are considered in determining obligor categories. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off, or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. 

The allowance recorded for individually evaluated loans is based on (1) the present value of expected future cash flows, after considering the restructuring effect and subsequent payment default with respect to TDRs, discounted at the loan’s initial effective interest rate, or (2) the loan’s observable market price, or (3) the fair value of the collateral if the loan is collateral dependent. The collateral that the MHFG Group obtains for loans consists primarily of real estate. In obtaining the collateral, the Group evaluates the fair value of the collateral and its legal enforceability. The Group also performs subsequent re-evaluations at least once a year. As it pertains to real estate collateral, valuation is generally performed by an appraising subsidiary which is independent from the Group’s loan origination departments by using generally accepted valuation techniques such as (1) the replacement cost approach, (2) the sales comparison approach or (3) the income approach. In the case of large real estate collateral, the Group generally engages third-party appraisers to perform the valuation. 

The MHFG Group’s methodology for determining the appropriate allowance for credit losses on loans also considers the imprecision inherent in the methodologies used. As a result, the amounts determined under the methodologies described above could be adjusted by management to consider the potential impact of other qualitative factors which include, but are not limited to, imprecision in macroeconomic scenario assumptions and emerging risks related to changes in the environment that are affecting specific portfolio segments. The Group incorporated the estimated impact of COVID-19 pandemic into the macroeconomic scenario by using assumptions such as anticipated business recovery period and current forecast for the growth rate of gross domestic product. This macroeconomic forecast is used to generate an updated credit loss estimate that is the primary driver of the Group’s provision for credit losses for the six months ended September 30, 2020. 

Allowance for credit losses on off-balance-sheet instruments

The MHFG Group maintains the allowance for credit losses on off-balance-sheet instruments, such as guarantees and standby letters of credit in the same manner as the allowance for credit losses on loans. The Group similarly assesses the expected credit loss amounts for commitments to invest in securities and commitments to extend credit, taking into account the probability of drawdowns. The allowance is recorded in Other liabilities. Net changes in the allowance for credit losses on off-balance-sheet instruments are accounted for in Provision (credit) for credit losses on off-balance-sheet instruments in the consolidated statements of income.

Allowance for credit losses on available-for-sale securities

The MHFG Group performs periodic reviews to identify impaired securities in accordance with ASC 326. Available-for-sale securities are impaired if the fair value is less than the amortized cost (excluding accrued interest receivable). For available-for-sale debt securities, in the cases where the Group has the intent to sell an available-for-sale debt security or more likely than not will be required to sell an available-for-sale debt security before the recovery of its amortized cost basis, the entire difference between amortized cost basis and fair value

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

is recognized immediately through earnings. In other cases, the Group evaluates expected cash flows to be received and determines if a credit loss exists, and if so, the amount of the credit loss is recognized in Provision (credit) for credit losses, while the remaining decline in fair value is recognized in other comprehensive income, net of applicable taxes. The Group generally does not record an allowance for credit losses for accrued interest receivables related to available-for-sale securities because these receivables are reversed through interest income, consistent with the Group’s past due policies. For additional information, see Note 4 “Loans.” Before the adoption of ASC 326, the previous other-than-temporary impairment model was applied for available-for-sale debt securities.

2. Issued accounting pronouncements

Adopted accounting pronouncements

In June 2016, the FASB issued ASU No.2016-13, “Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments” (“ASU No.2016-13”). In April 2019, the FASB issued ASU No.2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” (“ASU No.2019-04”). The ASU clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. In May 2019, the FASB issued ASU No.2019-05, “Financial Instruments—Credit Losses (Topic 326) —Targeted Transition Relief” (“ASU No.2019-05”). The ASU provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. In November 2019, the FASB issued ASU No.2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326)” (“ASU No.2019-11”). The ASU clarifies or addresses specific issues about certain aspects of the amendments in ASU No.2016-13, such as expected recoveries for purchased financial assets with credit deterioration and financial assets secured by collateral maintenance provisions. These ASUs replaced the incurred loss impairment methodology in prior U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of information such as relevant information about past events including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount, for the purpose of informing credit loss estimates. These ASUs require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. These ASUs also require that credit losses on available-for-sale debt securities be presented as an allowance for credit losses rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which fair value is below amortized cost. The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020 using a modified retrospective approach. Additionally, as of April 1, 2020, the Group did not elect the fair value option for certain financial assets measured at amortized cost basis. Upon adoption of these ASUs on April 1, 2020, the Group recorded ¥176 billion, or approximately 40% increase to the allowance for credit losses. After adjusting for deferred taxes, ¥125 billion decrease was recorded in Retained earnings through a cumulative-effect adjustment. The increase to the allowance at adoption was primarily related to both corporate and retail portfolio segments where the allowance for loan losses had not previously considered the full term of the loans and forward-looking macroeconomic scenario, including further consideration of potential impact of COVID-19. On the other hand, at April 1, 2020, the adoption of these ASUs did not have a material impact on available-for-sale debt securities, a majority of which consists of Japanese government bonds.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The following table reconciles the closing allowance for loans and off-balance-sheet instruments in accordance with ASC 310 and ASC 450 at March 31, 2020 to the opening allowance determined with ASC 326 at April 1, 2020: 

	At March 31, 2020 (ASC 310/450)		Transition Adjustment		At April 1, 2020 (ASC 326)
	(in billions of yen)
Loans:
Corporate		413		78		491
Retail		28		78		106
Off-balance-sheet instruments		46		20		66

For additional information, see Note 3 “Investments,” Note 4 “Loans” and Note 5 “Allowance for credit losses on loans.” 

In August 2018, the FASB issued ASU No.2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU No.2018-13”). The ASU modifies the disclosure requirements for fair value measurements in order to improve the effectiveness of the notes to financial statements. The amendments require additional disclosure on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty. The MHFG Group adopted ASU No.2018-13 on April 1, 2020. Certain of the requirements are applied prospectively, and other amendments are applied retrospectively. The adoption of ASU No.2018-13 did not have a material impact on disclosures in the Group’s consolidated financial statements.

In August 2018, the FASB issued ASU No.2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)—Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU No.2018-14”). The ASU removes disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The MHFG Group adopted ASU No.2018-14 on April 1, 2020. The requirements are applied retrospectively on the Group’s disclosures for the fiscal year ended March 31, 2020. The adoption of ASU No.2018-14 did not have a material impact on disclosures in the Group’s consolidated financial statements.

In October 2018, the FASB issued ASU No.2018-17, “Consolidation (Topic 810)—Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU No.2018-17”). The ASU requires indirect interests held through related parties in common control arrangements to be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The MHFG Group adopted ASU No.2018-17 on April 1, 2020 using a cumulative-effect adjustment to Retained earnings as of April 1, 2020. The adoption of ASU No.2018-17 did not have a material impact on the Group’s consolidated results of operations or financial condition.

In March 2020, the FASB issued ASU No.2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No.2020-04”). The ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform. The ASU is effective as of March 12, 2020 through December 31, 2022. The MHFG Group has not elected the relief; however, the Group expects to elect the relief prior to December 31, 2022 and is currently evaluating the potential impact that the relief will have on its consolidated results of operations or financial condition.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

3. Investments

Available-for-sale and held-to-maturity securities

The amortized cost, net of allowance for credit losses, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity securities at March 31, 2020 and September 30, 2020 are as follows:

	Amortized cost, net (5)(6)		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		12,651,677		1,319		50,224		12,602,772
Japanese local government bonds		272,412		649		494		272,567
U.S. Treasury bonds and federal agency securities		927,172		7,733		—		934,905
Other foreign government bonds		1,408,009		3,273		202		1,411,080
Agency mortgage-backed securities (1)		494,958		10,490		434		505,014
Residential mortgage-backed securities		83,077		1,405		151		84,331
Commercial mortgage-backed securities		609,559		5,551		106		615,004
Japanese corporate bonds and other debt securities (2)		1,836,540		7,489		8,772		1,835,257
Foreign corporate bonds and other debt securities (3)		849,595		2,595		168		852,022
Total		19,132,999		40,504		60,551		19,112,952
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,936		13,357		—		493,293
Agency mortgage-backed securities (4)		382,095		1,245		1,303		382,037
Total		862,031		14,602		1,303		875,330
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		19,964,553		1,084		45,274		19,920,363
Japanese local government bonds		406,873		757		446		407,184
U.S. Treasury bonds and federal agency securities		625,398		1,388		2		626,784
Other foreign government bonds		1,353,376		3,020		74		1,356,322
Agency mortgage-backed securities (1)		509,808		10,650		433		520,025
Residential mortgage-backed securities		78,883		1,220		123		79,980
Commercial mortgage-backed securities		634,537		6,674		69		641,142
Japanese corporate bonds and other debt securities (2)		2,066,234		12,579		8,785		2,070,028
Foreign corporate bonds and other debt securities (3)		922,752		3,410		1,190		924,972
Total		26,562,414		40,782		56,396		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,947		11,505		—		491,452
Agency mortgage-backed securities (4)		310,031		10,666		—		320,697
Total		789,978		22,171		—		812,149

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

(2) Other debt securities presented in this line primarily consist of Japanese asset-backed securities (“ABS”), of which the total fair values was ¥139,888 million at September 30, 2020.

(3) Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and ABS, of which the total fair values were ¥271,387 million at March 31, 2020, and ¥319,044 million at September 30, 2020.

F-13

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

(4) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

(5) Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

(6) Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

Contractual maturities

The amortized cost, net of allowance for credit losses, and fair value of available-for-sale and held-to-maturity securities at September 30, 2020 are shown in the table below based on their contractual maturities. Expected maturities may differ from contractual maturities because some securities are not due at a single maturity date, and some securities, such as mortgage-backed securities, contain embedded call or prepayment options.

Amortized cost	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,588,119		3,630,141		1,550,745		195,548		19,964,553
Japanese local government bonds		30,537		209,317		149,994		17,025		406,873
U.S. Treasury bonds and federal agency securities		625,398		—		—		—		625,398
Other foreign government bonds		1,024,723		326,539		1,058		1,056		1,353,376
Agency mortgage-backed securities		—		—		—		509,808		509,808
Residential mortgage-backed securities		—		—		—		78,883		78,883
Commercial mortgage-backed securities		6,080		252,315		375,342		800		634,537
Japanese corporate bonds and other debt securities		94,088		820,338		587,344		564,464		2,066,234
Foreign corporate bonds and other debt securities		453,235		343,496		123,123		2,898		922,752
Total		16,822,180		5,582,146		2,787,606		1,370,482		26,562,414
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		479,947		—		—		479,947
Agency mortgage-backed securities		—		—		—		310,031		310,031
Total		—		479,947		—		310,031		789,978
Fair value	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,586,652		3,619,928		1,522,868		190,915		19,920,363
Japanese local government bonds		30,553		209,557		149,982		17,092		407,184
U.S. Treasury bonds and federal agency securities		626,784		—		—		—		626,784
Other foreign government bonds		1,025,928		328,280		1,058		1,056		1,356,322
Agency mortgage-backed securities		—		—		—		520,025		520,025
Residential mortgage-backed securities		—		—		—		79,980		79,980
Commercial mortgage-backed securities		6,085		254,025		380,219		813		641,142
Japanese corporate bonds and other debt securities		94,089		819,848		585,922		570,169		2,070,028
Foreign corporate bonds and other debt securities		454,356		344,474		123,244		2,898		924,972
Total		16,824,447		5,576,112		2,763,293		1,382,948		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		491,452		—		—		491,452
Agency mortgage-backed securities		—		—		—		320,697		320,697
Total		—		491,452		—		320,697		812,149

F-14

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Credit losses

The other-than-temporary impairment losses on available-for-sale securities for the six months ended September 30, 2019 were not significant. No impairment losses were recognized on held-to-maturity securities for the period. As a result of the adoption of the ASU No.2016-13, 2019-04, 2019-05 and 2019-11, no material allowance for credit losses on available-for-sale securities were recognized at April 1, 2020. The MHFG Group recognized   ¥8 billion of allowance for credit losses on available-for-sale securities at September 30, 2020. The increase was due mainly to an increase of credit losses for certain Japanese corporate bonds and other debt securities. No allowance for credit losses were recognized on held-to-maturity securities at April 1, 2020 and September 30, 2020, respectively because held-to-maturity securities consist of Japanese government bond and agency mortgage-backed securities like Ginnie Mae securities. See Note 1 “Basis of presentation” for further details of the methodology used to determine the allowance for credit losses. 

F-15

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Continuous unrealized loss position

The following table shows the gross unrealized losses and fair value of available-for-sale and held-to-maturity securities, aggregated by the length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2020 and September 30, 2020:

	Less than 12 months				12 months or more				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		10,339,320		43,204		283,561		7,020		10,622,881		50,224
Japanese local government bonds		162,665		418		34,114		76		196,779		494
U.S. Treasury bonds and federal agency securities		—		—		—		—		—		—
Other foreign government bonds		196,990		202		—		—		196,990		202
Agency mortgage-backed securities (1)		30,913		227		9,504		207		40,417		434
Residential mortgage-backed securities		9,524		62		5,450		89		14,974		151
Commercial mortgage-backed securities		15,115		85		7,478		21		22,593		106
Japanese corporate bonds and other debt securities		669,572		5,507		608,361		3,265		1,277,933		8,772
Foreign corporate bonds and other debt securities		152,058		165		5,564		3		157,622		168
Total		11,576,157		49,870		954,032		10,681		12,530,189		60,551
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		191,244		1,303		191,244		1,303
Total		—		—		191,244		1,303		191,244		1,303
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		9,978,136		23,884		1,234,118		21,390		11,212,254		45,274
Japanese local government bonds		126,991		246		72,086		200		199,077		446
U.S. Treasury bonds and federal agency securities		29,093		2		—		—		29,093		2
Other foreign government bonds		278,022		74		—		—		278,022		74
Agency mortgage-backed securities (1)		30,948		202		9,799		231		40,747		433
Residential mortgage-backed securities		9,567		41		6,794		82		16,361		123
Commercial mortgage-backed securities		6,052		15		11,396		54		17,448		69
Japanese corporate bonds and other debt securities		565,278		3,028		597,714		5,757		1,162,992		8,785
Foreign corporate bonds and other debt securities		245,311		1,187		2,712		3		248,023		1,190
Total		11,269,398		28,679		1,934,619		27,717		13,204,017		56,396
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		—		—		—		—
Total		—		—		—		—		—		—

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese agency mortgage-backed securities, of which the fair values were ¥40,417 million at March 31, 2020, and ¥40,747 million at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise.

(2) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

F-16

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

At September 30, 2020, the MHFG Group did not intend to sell the debt securities in an unrealized loss position and it was not more likely than not that the MHFG Group would be required to sell them before the recovery of their amortized cost bases. For Japanese government bonds and Agency mortgage-backed securities, their entire amortized cost bases were expected to be recovered since the unrealized losses had not resulted from credit deterioration, but primarily from changes in interest rates. For the debt securities other than those described above, except for the securities for which credit losses have been recognized in income, the MHFG Group determined that their entire amortized cost bases were expected to be recovered, after considering various factors such as the extent to which their fair values were below their amortized cost bases, the external and/or internal ratings and the present values of cash flows expected to be collected. Based on the aforementioned evaluation, except for the securities for which credit losses have been recognized in income, the MHFG Group determined that the debt securities in an unrealized loss position were not considered credit losses. 

Realized gains and losses

The following table shows the realized gains and losses on sales of available-for-sale securities for the six months ended September 30, 2019 and 2020. See “Consolidated Statements of Cash Flows (Unaudited)” for the proceeds from sales of investments.

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Gross realized gains		36,183			5,101
Gross realized losses		(6,167	)		(3,694	)
Net realized gains (losses) on sales of available-for-sale securities		30,016			1,407

Equity securities

Equity securities include securities which have readily determinable fair values, securities which qualify for the practical expedient to estimate fair value using the net asset value per share (or its equivalent), and securities which are without readily determinable fair values. Equity securities which have readily determinable fair values mainly consist of common stock of Japanese listed companies. Equity securities without readily determinable fair values include non-marketable stock including preferred stock issued by equity method investees.

Net gains and losses

The following table shows the details of the net gains and losses on Equity securities for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net gains (losses) recognized during the period on equity securities		(126,648	)		266,119
Less: Net gains (losses) recognized during the period on equity securities sold during the period		(3,084	)		34,985
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting period		(123,564	)		231,134

F-17

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Equity securities without readily determinable fair values

The following table shows carrying amounts of equity securities without readily determinable fair values, for which the measurement alternative is used, and cumulative amounts due to downward adjustments and impairments and upward adjustments, at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Carrying amounts at the end of the period		419,775		402,194
Downward adjustments and impairments		2,435		3,800
Upward adjustments		9,128		9,104

The following table shows amounts recognized in earnings during the period due to downward adjustments and impairments and upward adjustments for equity securities without readily determinable fair values.

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Downward adjustments and impairments		430		1,411
Upward adjustments		6,527		34

The MHFG Group elected to measure all equity securities without readily determinable fair values, which do not qualify for the practical expedient to estimate fair value, using the measurement alternative, which is made on an instrument-by-instrument basis. Under the measurement alternative, equity securities are carried at cost plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar securities of the same issuer. In addition, the MHFG Group assesses whether these equity securities are impaired. Impairment is primarily based on a liquidation value technique that considers the financial condition, credit ratings, and near-term prospects of the issuers. When observable price changes or impairments exist, the securities are adjusted to fair value, with the full difference between the fair value of the security and its carrying amount recognized in earnings.

Other investments

The following table summarizes the composition of Other investments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Equity method investments		404,513		412,281
Investments held by consolidated investment companies		39,438		55,682
Total		443,951		467,963

Equity method investments

Investments in investees over which the MHFG Group has the ability to exert significant influence are accounted for using the equity method of accounting. Such investments included marketable equity securities with carrying values of ¥213,243 million and ¥215,059 million, at March 31, 2020 and September 30, 2020, respectively. The aggregate market values of these marketable equity securities were ¥287,488 million and ¥344,131 million,

F-18

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

respectively. The majority of the aggregate market values of these marketable equity securities include Orient Corporation, the Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for Foreign Trade of Vietnam and Mizuho Leasing Company, Limited of which the MHFG Group’s proportionate share of the total outstanding common stock were 49.00%, 16.89%, 15.00% and 23.52%, respectively, as of September 30, 2020. In addition, equity method investments include non-marketable equity securities such as Matthews International Capital Management, LLC and Custody Bank of Japan, Ltd. of which the MHFG Group’s proportionate share of the total outstanding common stock were 16.41% and 27.00%, respectively, as of September 30, 2020.

Investments held by consolidated investment companies

The MHFG Group consolidates certain investment companies over which it has control through either ownership or other means. Investment companies are subject to specialized industry accounting which requires investments to be carried at fair value, with changes in fair value recorded in earnings. The MHFG Group maintains this specialized industry accounting for investments held by consolidated investment companies, which consist of marketable and non-marketable investments.

4. Loans

The table below presents loans outstanding by domicile and industry of borrower at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Domestic:
Manufacturing		9,731,028		11,700,375
Construction and real estate		9,603,433		10,172,843
Services		5,992,511		6,294,310
Wholesale and retail		5,219,727		5,415,605
Transportation and communications		3,832,884		3,978,708
Banks and other financial institutions		4,634,442		4,719,863
Government and public institutions		2,198,805		2,639,956
Other industries (Note)		5,389,347		5,517,220
Individuals:
Mortgage loans		8,567,099		8,357,042
Other		861,235		798,475
Total domestic		56,030,511		59,594,397
Foreign:
Commercial and industrial		20,818,709		20,190,048
Banks and other financial institutions		10,475,277		10,502,326
Government and public institutions		317,284		308,171
Other		35,388		37,572
Total foreign		31,646,658		31,038,117
Total		87,677,169		90,632,514
Less: Unearned income and deferred loan fees—net		149,081		156,767
Total loans before allowance for credit losses on loans		87,528,088		90,475,747

Note: Other industries of domestic includes trade receivables and lease receivables of consolidated VIEs.

F-19

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Loans are generally carried at the principal amount adjusted for unearned income and deferred net nonrefundable loan fees and costs. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the loan as an adjustment of yield using a method that approximates the interest method. Interest income on performing loans is accrued and credited to income as it is earned. Unearned income and discounts or premiums on purchased loans are deferred and recognized over the life of the loan using a method that approximates the interest method.

Net losses on sales of loans were ¥179 million and ¥1,178 million, including unrealized losses related to recording loans held for sale at the lower of cost or fair value for the six months ended September 30, 2019 and 2020, respectively. The gains and losses on sales of loans are recorded in Other noninterest income and expenses, respectively.

Credit quality information

In accordance with the MHFG Group’s credit risk management policies, the Group uses an internal rating system that consists of credit ratings for the corporate portfolio segment and pool allocations for the retail portfolio segment as the basis of its risk management infrastructure. Credit ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings which represent the ultimate possibility of losses expected on individual loans by taking into consideration various factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors except those to which pool allocations are applied, and are subject to regular review at least once a year as well as special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied to small loans that are less than a specified amount by pooling customers and loans with similar risk characteristics, and the risk is assessed mainly based on past due status and managed according to such pools. The Group generally reviews the appropriateness and effectiveness of the approach to obligor ratings and pool allocations once a year in accordance with predetermined policies and procedures. See Note 3 “Investments” for the credit losses related to held-to-maturity and available-for-sale debt securities.

F-20

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The Group does not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans. The amount of accrued interest receivables at September 30, 2020 was ¥82,321 million and included in Accrued income.

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2020 and September 30, 2020:

Obligor category (1)(2)	Obligor rating	Definition
Normal	A	Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is very low.
	B	Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, and their level of credit risk is low.
	C	Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.
	D	Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future economic environmental changes is low.
Watch	E1	Obligors that require observation going forward because of either minor concerns regarding their financial position, or their somewhat weak or unstable business conditions.
	E2	Obligors that require special observation going forward because of problems with their borrowings such as reduced or suspended interest payments, problems with debt fulfillment such as failure to make principal or interest payments, or problems with their financial position as a result of their weak or unstable business conditions.
Intensive control	F	Obligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of insufficient progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions).
Substantially bankrupt	G	Obligors that have not yet become legally or formally bankrupt but are substantially insolvent because they are in serious financial difficulties and are deemed to be incapable of being restructured.
Bankrupt	H	Obligors that have become legally or formally bankrupt.

Notes:

(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual. 

(2) The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans.

F-21

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2020 and September 30, 2020:

	September 30, 2020																March 31, 2020
	Term loans by origination year												Revolving Loans		Total		Total
	2020		2019		2018		2017		2016		Prior to 2016
	(in millions of yen)
Domestic:
Corporate:
Large companies:
Normal obligors		9,754,935		7,343,964		7,517,546		2,710,108		2,498,507		2,978,989		8,279,869		41,083,918		37,979,353
Watch obligors excluding special attention obligors		424,745		92,446		82,206		56,363		33,737		33,847		196,544		919,888		840,289
Nonaccrual loans		142,730		55,771		41,249		20,295		11,956		29,551		136,213		437,765		343,439
Small and medium-sized companies:
Normal obligors		381,487		543,822		456,363		260,146		232,638		485,430		502,124		2,862,010		2,941,599
Watch obligors excluding special attention obligors		46,537		32,174		37,116		13,321		15,523		28,933		30,521		204,125		189,075
Nonaccrual loans		58,754		15,624		4,294		5,900		2,636		9,849		28,118		125,175		119,759
Retail:
Housing Loan:
Normal obligors		437,780		668,358		627,669		634,528		783,929		4,879,204		—		8,031,468		8,215,781
Watch obligors excluding special attention obligors		560		1,178		1,827		1,579		2,217		43,397		—		50,758		57,478
Nonaccrual loans		18,941		6,528		1,525		1,432		1,778		38,456		—		68,660		57,696
Others:
Normal obligors		327,506		209,899		152,679		106,359		102,735		361,209		523,640		1,784,027		1,783,779
Watch obligors excluding special attention obligors		36,270		17,587		11,754		6,911		4,534		6,846		12,185		96,087		81,463
Nonaccrual loans		26,633		6,905		1,945		1,000		965		9,532		11,567		58,547		59,782
Sovereign
Normal obligors		1,907,424		264,528		126,868		87,021		92,664		485,721		13,700		2,977,926		2,559,420
Watch obligors excluding special attention obligors		2,859		6,914		2,951		1,134		257		34		—		14,149		10,939
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Banks and other financial institutions
Normal obligors		15,637		155,415		261,601		26,841		85,303		74,009		187,102		805,908		790,659
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—		—
Nonaccrual loans		167		—		180		—		—		—		1,600		1,947		—
Total domestic		13,582,965		9,421,113		9,327,773		3,932,938		3,869,379		9,465,007		9,923,183		59,522,358		56,030,511
Foreign:
Corporate:
Normal obligors		10,181,936		5,813,342		3,419,918		1,298,791		804,580		1,624,422		4,630,806		27,773,795		28,555,991
Watch obligors excluding special attention obligors		172,225		43,785		47,998		37,862		15,899		35,532		84,646		437,947		336,470
Nonaccrual loans		41,085		25,405		12,954		5,422		8,448		21,241		43,592		158,147		135,522
Retail:
Normal obligors		3,613		9,806		6,008		2,956		1,517		2,527		102		26,529		30,862
Watch obligors excluding special attention obligors		174		1,110		647		361		109		11		—		2,412		858
Nonaccrual loans		26		506		287		103		44		1		—		967		6
Sovereign
Normal obligors		91,542		99,248		32,403		149,794		5,907		90,988		81,008		550,890		558,384
Watch obligors excluding special attention obligors		—		—		—		—		—		20,124		—		20,124		19,971
Nonaccrual loans		—		741		—		—		—		—		—		741		—
Banks and other financial institutions
Normal obligors		750,039		654,755		421,876		95,375		4,509		3,536		49,997		1,980,087		2,008,516
Watch obligors excluding special attention obligors		912		152		686		—		—		—		—		1,750		78
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Total foreign		11,241,552		6,648,850		3,942,777		1,590,664		841,013		1,798,382		4,890,151		30,953,389		31,646,658
Total		24,824,517		16,069,963		13,270,550		5,523,602		4,710,392		11,263,389		14,813,334		90,475,747		87,677,169

F-22

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Notes:

(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual.

(2) The primary component of the retail portfolio segment is housing loans to individuals which obligor category is classified based on past due status. The trigger to reclassify obligors from normal obligors to watch obligors excluding special attention obligors is when the past due status is more than 30 days.

(3) There were no significant revolving line of credit arrangements that converted to term loans during the six months ended September 30, 2020.

Nonaccrual loans

Loans are considered nonaccrual when, based on current information and events, it is probable that the MHFG Group will be unable to collect all the scheduled payments of principal and interest when due according to the contractual terms of the loans. Factors considered by management in determining if a loan is nonaccrual include delinquency status and the ability of the debtor to make payment of the principal and interest when due. The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans. Nonaccrual loans include loans past due for 90 days or more and restructured loans that meet the definition of a TDR in accordance with ASC 310. There are no loans that are ninety days past due and still accruing. The Group does not have any loans to borrowers that cause management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms for the periods presented other than those already designated as nonaccrual loans. The majority of nonaccrual loans have no contractual delinquency due to interest reductions and/or postponement of principal and interest. 

In March 2020, the Coronavirus, Aid, Relief, and Economic Security Act (“the CARES Act”) was approved. The CARES Act and U.S. banking agencies have among other items, provided optional, temporary relief related to accounting for certain TDRs. The temporary TDR relief is available to banks for loan modifications related to obligors who were adversely impacted by COVID-19. As of September 30, 2020, the MHFG Group has elected not to apply the temporary TDR relief provided by the CARES Act and U.S. banking agencies. Additionally, the MHFG Group has elected not to apply any of the other provisions provided by the CARES Act.

F-23

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

With regard to nonaccrual loans, interest accruals and the amortization of net origination fees are suspended and capitalized interest is written off. Cash received on nonaccrual loans is accounted for as a reduction of the loan principal if the ultimate collectibility of the principal amount is in doubt, otherwise, as interest income. Loans are not restored to accrual status until interest and principal payments are current and future payments are reasonably assured. Nonaccrual loans are restored to accrual status, when the MHFG Group determines that the borrower poses no concerns regarding current certainty of debt fulfillment. In general, such determination is made if the borrower qualifies for an obligor rating of E2 or above and is not classified as a special attention obligor. With respect to loans restructured in a TDR, in general, such loans are restored to accrual status, when the borrower qualifies for an obligor rating of D or above. The table below presents nonaccrual loans information at March 31, 2020 and September 30, 2020: 

	Amortized cost
	Nonaccrual loans with an allowance		Nonaccrual loans without an allowance		Total nonaccrual loans		Interest income recognized
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		333,442		9,997		343,439		4,155
Small and medium-sized companies		102,786		16,973		119,759		1,724
Retail:
Housing Loan		28,263		29,433		57,696		937
Others		36,220		23,562		59,782		846
Total domestic		500,711		79,965		580,676		7,662
Foreign:
Total foreign		95,289		40,239		135,528		3,032
Total		596,000		120,204		716,204		10,694
September 30, 2020
Domestic:
Corporate:
Large companies		416,637		21,128		437,765		2,501
Small and medium-sized companies		105,556		19,619		125,175		777
Retail:
Housing Loan		40,358		28,302		68,660		535
Others		36,270		22,277		58,547		373
Banks and other financial institutions		1,947		—		1,947		3
Total domestic		600,768		91,326		692,094		4,189
Foreign:
Total foreign		110,295		49,560		159,855		958
Total		711,063		140,886		851,949		5,147

Notes:

(1) Amounts represent the outstanding balances of nonaccrual loans. The MHFG Group’s policy for placing loans in nonaccrual status corresponds to the Group’s definition of nonaccrual loans.

(2) Amounts represent the amount of interest income on nonaccrual loans recognized on a cash basis and included in Interest income on loans in the consolidated statements of income.

(3) The majority of total foreign consist of corporate.

The remaining balance of nonaccrual loans that have been partially charged off, was ¥20,378 million and ¥32,783 million as of March 31, 2020 and September 30, 2020 respectively.

F-24

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Troubled debt restructurings

The MHFG Group considers a loan modification to be a TDR when, for economic or legal reasons related to the obligor’s financial difficulties, it grants a concession to the obligor that it would not otherwise consider. The Group considers the relevant obligor to be in financial difficulty generally when its obligor rating is E2 or below.The following table presents modified loans that were determined to be TDRs during the six months ended September 30, 2019 and 2020:

	Loan forgiveness or debt to equity swaps				Interest rate reduction and/or postponement of principal and/or interest
	Recorded investment (1)		Charge-offs
	(in millions of yen)
September 30, 2019
Domestic:
Corporate:
Large companies		689		3,806		152,373
Small and medium-sized companies		—		—		55,344
Retail:
Housing Loan		—		—		3,742
Others		—		—		7,468
Total domestic		689		3,806		218,927
Foreign:
Total foreign		470		4,922		38,646
Total		1,159		8,728		257,573
September 30, 2020
Domestic:
Corporate:
Large companies		—		—		264,952
Small and medium-sized companies		—		—		54,760
Retail:
Housing Loan		—		—		14,690
Others		—		—		9,130
Banks and other financial institutions		—		—		1,600
Total domestic		—		—		345,132
Foreign:
Total foreign		—		—		80,889
Total		—		—		426,021

Notes:

(1) Amounts represent the book values of loans immediately after the restructurings.

(2) The majority of total foreign consist of corporate.

F-25

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Payment default is deemed to occur when the loan becomes three months past due or the obligor is downgraded to the category of substantially bankrupt or bankrupt. The following table presents payment defaults which occurred during the six months ended September 30, 2019 and 2020 with respect to the loans modified as TDRs within the previous twelve months:

	Recorded investment
	September 30, 2019		September 30, 2020
	(in millions of yen)
Domestic:
Corporate:
Large companies		5,875		2,084
Small and medium-sized companies		2,444		3,861
Retail:
Housing Loan		686		505
Others		1,349		1,104
Total domestic		10,354		7,554
Foreign:
Total foreign		6,436		43,786
Total		16,790		51,340

F-26

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Age analysis of past due loans

The table below presents an analysis of the age of the amortized cost basis in loans that are past due at March 31, 2020 and September 30, 2020:

	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		2,146		2,013		38,364		42,523		39,120,558		39,163,081
Small and medium-sized companies		2,347		894		9,187		12,428		3,238,005		3,250,433
Retail:
Housing Loan		15,703		10,078		26,690		52,471		8,278,484		8,330,955
Others		6,179		2,013		15,239		23,431		1,901,593		1,925,024
Sovereign		—		—		—		—		2,570,359		2,570,359
Banks and other financial institutions		—		—		—		—		790,659		790,659
Total domestic		26,375		14,998		89,480		130,853		55,899,658		56,030,511
Foreign:
Total foreign		1,214		181		28,722		30,117		31,616,541		31,646,658
Total		27,589		15,179		118,202		160,970		87,516,199		87,677,169
September 30, 2020
Domestic:
Corporate:
Large companies		311		269		38,868		39,448		42,402,123		42,441,571
Small and medium-sized companies		2,093		604		11,226		13,923		3,177,387		3,191,310
Retail:
Housing Loan		15,831		7,870		25,922		49,623		8,101,263		8,150,886
Others		4,720		1,436		14,152		20,308		1,918,353		1,938,661
Sovereign		—		—		—		—		2,992,075		2,992,075
Banks and other financial institutions		—		—		—		—		807,855		807,855
Total domestic		22,955		10,179		90,168		123,302		59,399,056		59,522,358
Foreign:
Total foreign		1,826		636		60,535		62,997		30,890,392		30,953,389
Total		24,781		10,815		150,703		186,299		90,289,448		90,475,747

Note: The majority of total foreign consist of corporate.

Loans held for sale

Loans that have been identified for sale are classified as loans held for sale within Other assets and are accounted for at the lower of cost or fair value. The outstanding balance of loans held for sale was ¥60,084 million and ¥22,404 million at March 31, 2020 and September 30, 2020, respectively.

F-27

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

5. Allowance for credit losses on loans

The MHFG Group divides its overall portfolio into domestic and foreign portfolios, and categorizes the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions. When management estimates current expected credit losses to determine the allowance for credit losses, small balance, homogeneous loans are classified in the retail portfolio segment, and loans other than these are classified in the corporate portfolio segment. The corporate portfolio segment consists of loans originated primarily by MHBK and MHTB, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment also includes loans of subsidiaries other than MHBK and MHTB, such as consolidated VIEs and overseas subsidiaries. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. The retail portfolio segment consists mainly of residential mortgage loans originated by MHBK, and it is divided into two classes based on their risk characteristics: housing loan and others. See Note 1 “Basis of presentation” for further details of the methodology used to determine the allowance for credit losses on loans and Note 4 “Loans” for further details of obligor ratings and pool allocations.

Changes in Allowance for credit losses on loans by portfolio segment for the six months ended September 30, 2019 and 2020 are shown below:

	Corporate			Retail			Total
	(in millions of yen)
Six months ended September 30, 2019
Balance at beginning of period		277,955			29,246			307,201
Provision (credit) for credit losses on loans		12,268			1,505			13,773
Charge-offs		(25,147	)		(3,887	)		(29,034	)
Recoveries		2,785			1,269			4,054
Net charge-offs		(22,362	)		(2,618	)		(24,980	)
Others (Note)		(4,570	)		(2	)		(4,572	)
Balance at end of period		263,291			28,131			291,422
Six months ended September 30, 2020
Balance at beginning of period		413,026			27,829			440,855
April 1, 2020 adoption of CECL		77,514			78,241			155,755
Adjusted Balance at beginning of period		490,540			106,070			596,610
Provision (credit) for credit losses on loans		64,133			(11,051	)		53,082
Charge-offs		(28,417	)		(3,446	)		(31,863	)
Recoveries		5,260			479			5,739
Net charge-offs		(23,157	)		(2,967	)		(26,124	)
Others (Note)		(997	)		(45	)		(1,042	)
Balance at end of period		530,519			92,007			622,526

Note: Others includes primarily foreign exchange translation.

F-28

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

6. Other assets and liabilities

The following table sets forth the details of other assets and liabilities at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Other assets:
Accounts receivable:
Receivables from brokers, dealers and customers for securities transactions		783,439		898,924
Other		358,702		416,064
Collateral pledged:
Collateral pledged for derivative transactions		1,246,026		1,079,050
Margins provided for futures contracts		602,039		316,791
Other		941,167		909,155
Prepaid pension cost		711,981		986,767
Right-of-use assets		613,068		586,365
Security deposits		107,294		108,204
Loans held for sale		60,084		22,404
Other		542,079		540,514
Total		5,965,879		5,864,238
Other liabilities:
Accounts payable:
Payables to brokers, dealers and customers for securities transactions		2,161,075		2,065,408
Other		375,127		365,446
Guaranteed trust principal (Note)		824,431		808,172
Lease liabilities		627,250		600,087
Collateral accepted:
Collateral accepted for derivative transactions		846,426		587,426
Margins accepted for futures contracts		797,317		558,138
Unearned income		122,072		120,352
Other		1,244,697		1,194,591
Total		6,998,395		6,299,620

Note: Guaranteed trust principal, included in All other liabilities in the disclosure about consolidated VIEs in the accompanying balance sheets, is a liability of certain consolidated trust arrangements that meet the definition of a VIE for which the MHFG Group provides guarantees for the repayment of principal. See Note 15 “Variable interest entities and securitizations” for further discussion of the guaranteed principal money trusts.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

7. Preferred and common stock

Preferred stock

The composition of preferred stock at March 31, 2020 and September 30, 2020 is as follows:

Class of stock	March 31, 2020				September 30, 2020
	Authorized		Issued		Authorized		Issued
	(number of shares)
Class XIV preferred stock		90,000,000		—		90,000,000		—
Class XV preferred stock		90,000,000		—		90,000,000		—
Class XVI preferred stock		150,000,000		—		150,000,000		—

Common stock

The number of issued shares of common stock at March 31, 2020 and September 30, 2020 was 2,539,249,894. There was no increase or decrease during the six months ended September 30, 2020.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

8. Accumulated other comprehensive income (loss), net of tax

Changes in each component of Accumulated other comprehensive income (loss), net of tax (“AOCI”) for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
AOCI, balance at beginning of period, previously reported		164,021			(9,494	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
AOCI, balance at beginning of period, adjusted		162,969			(9,494	)
Net unrealized gains (losses) on available-for-sale securities:
Balance at beginning of period		22,019			(19,592	)
Unrealized holding gains (losses) during period		25,843			644
Less: reclassification adjustments for losses (gains) included in net income		(20,824	)		754
Change during period		5,019			1,398
Balance at end of period		27,038			(18,194	)
Foreign currency translation adjustments:
Balance at beginning of period, previously reported		(58,558	)		(109,872	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
Balance at beginning of period, adjusted		(59,610	)		(109,872	)
Foreign currency translation adjustments during period		(63,466	)		(36,652	)
Less: reclassification adjustments for losses (gains) included in net income		—			(409	)
Change during period		(63,466	)		(37,061	)
Balance at end of period		(123,076	)		(146,933	)
Pension liability adjustments:
Balance at beginning of period		196,446			69,455
Unrealized gains (losses) during period		(1,720	)		190,394
Less: reclassification adjustments for losses (gains) included in net income		(2,130	)		672
Change during period		(3,850	)		191,066
Balance at end of period		192,596			260,521
Own credit risk adjustments:
Balance at beginning of period		4,114			50,515
Unrealized gains (losses) during period		7,320			(9,340	)
Less: reclassification adjustments for losses (gains) included in net income		(1,277	)		(2,732	)
Change during period		6,043			(12,072	)
Balance at end of period		10,157			38,443
Total other comprehensive income (loss), net of tax attributable to MHFG shareholders		(56,254	)		143,331
AOCI, balance at end of period		106,715			133,837

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Note: The MHFG Group adopted ASU No.2017-12, “Derivatives and Hedging (Topic 815)—Targeted Improvements to Accounting for Hedging Activities” (“ASU No.2017-12”) on April 1, 2019 and the ASU No.2017-12 eliminated the separate measurement and reporting of hedge ineffectiveness. Cumulative-effect adjustment to the consolidated balance sheets was recognized upon adoption.

The following table shows the amounts reclassified out of AOCI into net income during the six months ended September 30, 2020:

	Six months ended September 30, 2020
	Before tax (1)			Tax effect (2)			Net of tax before allocation to noncontrolling interests			Net of tax attributable to noncontrolling interests (2)			Net of tax attributable to MHFG shareholders
	(in millions of yen)
Amounts reclassified out of AOCI into net income:																Affected line items in the consolidated statements of income:
Net unrealized gains (losses) on available-for-sale securities		(1,065	)		306			(759	)		5			(754	)	Investment gains (losses)-net Provision (credit) for credit losses
Foreign currency translation adjustments		409			—			409			—			409		Foreign exchange gains (losses)-net
Pension liability adjustments		(1,004	)		321			(683	)		11			(672	)	Salaries and employee benefits
Own credit risk adjustments		4,111			(1,259	)		2,852			(120	)		2,732		Other noninterest income (expenses)
Total		2,451			(632	)		1,819			(104	)		1,715

Notes:

(1) The financial statement line item in which the amounts in the Before tax column are reported in the consolidated statements of income is listed to the right of the table.

(2) The financial statement line items in which the amounts in the Tax effect and the Net of tax attributable to noncontrolling interest columns are reported in the consolidated statements of income are Income tax expense and Net income, respectively.

9. Regulatory matters

Regulatory capital requirements

MHFG, MHBK, and MHTB are subject to regulatory capital requirements administered by the Financial Services Agency in accordance with the provisions of Japan’s Banking Act and related regulations. Certain foreign banking subsidiaries are subject to regulation and control by local supervisory authorities, including central banks.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Capital adequacy ratios and leverage ratios of MHFG, MHBK, and MHTB as of March 31, 2020 and September 30, 2020 calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency are set forth in the following table:

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Consolidated:
MHFG:
Common Equity Tier 1 capital:
Required (1)		4,978		8.01		5,159			8.01
Actual		7,245		11.65		7,453			11.57
Tier 1 capital:
Required (1)		5,910		9.51		6,125			9.51
Actual		9,024		14.52		9,468			14.69
Total risk-based capital:
Required (1)		7,152		11.51		7,413			11.51
Actual		10,722		17.25		11,133			17.28
Leverage Ratio:
Required		6,629		3.00		5,874	(2)		3.00
Actual		9,024		4.08		9,468	(2)		4.83
MHBK:
Common Equity Tier 1 capital:
Required		2,567		4.50		2,689			4.50
Actual		6,501		11.39		6,756			11.30
Tier 1 capital:
Required		3,422		6.00		3,585			6.00
Actual		8,275		14.50		8,765			14.66
Total risk-based capital:
Required		4,563		8.00		4,780			8.00
Actual		9,865		17.29		10,338			17.30
Leverage Ratio:
Required		6,160		3.00		5,450	(2)		3.00
Actual		8,275		4.02		8,765	(2)		4.82
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		489		23.64		509			26.24
Tier 1 capital:
Required		124		6.00		116			6.00
Actual		489		23.66		509			26.24
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		491		23.74		510			26.27
Leverage Ratio:
Required		216		3.00		156	(2)		3.00
Actual		489		6.79		509	(2)		9.79

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Non-consolidated:
MHBK:
Common Equity Tier 1 capital:
Required		2,403		4.50		2,525			4.50
Actual		6,130		11.47		6,369			11.34
Tier 1 capital:
Required		3,204		6.00		3,367			6.00
Actual		7,905		14.80		8,381			14.93
Total risk-based capital:
Required		4,272		8.00		4,489			8.00
Actual		9,482		17.75		9,943			17.71
Leverage Ratio:
Required		5,884		3.00		5,178	(2)		3.00
Actual		7,905		4.03		8,381	(2)		4.85
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		475		23.10		494			25.49
Tier 1 capital:
Required		123		6.00		116			6.00
Actual		475		23.10		494			25.49
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		477		23.18		494			25.52
Leverage Ratio:
Required		214		3.00		153	(2)		3.00
Actual		475		6.66		494	(2)		9.66

Notes:

(1) The required ratios disclosed above, at March 31, 2020 and September 30, 2020, include the capital conservation buffer of 2.5%, the countercyclical capital buffer of 0.01%, and the additional loss absorbency requirements for global systemically important banks (“G-SIBs”) and domestic systemically important banks (“D-SIBs”) of 1.0%, which are all in addition to the regulatory minima. The respective required amounts are determined by applying the ratios to the sum of the risk weighted assets and certain other risk amounts.

(2) The required and actual amounts disclosed above at September 30, 2020 exclude amounts of deposits to the Bank of Japan.

MHFG’s securities subsidiary in Japan is also subject to the capital adequacy requirement under Japan’s Financial Instruments and Exchange Act. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions.

Management believes, as of each latest balance sheet date, that MHFG, MHBK, MHTB, and their securities subsidiary in Japan and foreign banking subsidiaries were in compliance with all capital adequacy requirements to which they were subject.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

10. Earnings per common share

Basic earnings per common share are computed by dividing net income attributable to MHFG common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflect all dilutive potential common shares such as stock options.

The following table sets forth the computation of basic and diluted earnings per common share for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Net income:
Net income attributable to MHFG common shareholders		212,984		315,886
Effect of dilutive securities		—		—
Net income attributable to common shareholders after assumed conversions		212,984		315,886
	Six months ended September 30,
	2019		2020
	(thousands of shares)
Shares:
Weighted average common shares outstanding		2,536,800		2,537,272
Effect of dilutive securities:
Stock options and the common shares of MHFG under the stock compensation programs (Note)		209		93
Weighted average common shares after assumed conversions		2,537,009		2,537,365
	Six months ended September 30,
	2019		2020
	(in yen)
Earnings per common share:
Basic net income per common share		83.96		124.50
Diluted net income per common share (Note)		83.95		124.49

Note: For the six months ended September 30, 2020, the performance-based plan under the stock compensation programs could potentially dilute earnings per common share but were not included in the computation of diluted earnings per common share due to their antidilutive effects.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

11. Income taxes

The following table presents the components of Income tax expense for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Current tax expense		88,437			79,954
Deferred tax expense (benefit)		(5,317	)		57,807
Total income tax expense		83,120			137,761

The preceding table does not reflect the tax effects of items recorded directly in Equity for the six months ended September 30, 2019 and 2020. The detailed amounts recorded directly in Equity are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses)		11,023			579
Less: reclassification adjustments		(9,192	)		306
Total		1,831			885
Pension liability adjustments:
Unrealized gains (losses)		(643	)		83,994
Less: reclassification adjustments		(937	)		321
Total		(1,580	)		84,315
Own credit risk adjustments:
Unrealized gains (losses)		(43	)		(2,351	)
Less: reclassification adjustments		(588	)		(1,259	)
Total		(631	)		(3,610	)
Total tax effect before allocation to noncontrolling interests		(380	)		81,590

The statutory tax rates were both 30.62% as of September 30, 2019 and 2020. The effective tax rates, 26.77% and 25.15% for the six months ended September 30, 2019 and 2020, respectively, differed from the statutory tax rates. The difference of the tax rates for the six months ended September 30, 2019 was immaterial. The difference of the tax rates for the six months ended September 30, 2020 resulted mainly from the effect of noncontrolling interest income of consolidated VIEs. 

At September 30, 2020, the MHFG Group had net operating loss carryforwards totaling ¥623 billion.

The total amount of unrecognized tax benefits was ¥4,382 million at September 30, 2020, which would, if recognized, affect the Group’s effective tax rate. The Group classifies interest and penalties accrued relating to unrecognized tax benefits as Income tax expense.

A portion of unrecognized tax benefits at March 31, 2020 was resolved in the six months period ended September 30, 2020, of which the amount was immaterial. The amount of additional unrecognized tax benefits

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

for the period related to the tax positions taken was also immaterial. The MHFG Group does not anticipate that increases or decreases of unrecognized tax benefits within the next twelve months would have a material effect on its consolidated results of operations or financial condition.

12. Pension and other employee benefit plans

The following table summarizes the components of net periodic benefit cost of the severance indemnities and pension plans of the MHFG Group for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Service cost-benefits earned during the period		22,729			22,695
Interest costs on projected benefit obligations		2,666			2,931
Expected return on plan assets		(20,158	)		(20,073	)
Amortization of prior service cost (benefits)		19			205
Amortization of net actuarial loss (gain)		(3,064	)		836
Special termination benefits		2,188			4,981
Net periodic benefit cost		4,380			11,575

In September 2020, based on various approvals, MHFG and certain domestic subsidiaries communicated to their employees an amendment to the defined benefit pension plans that was effective as of October 1, 2020. In accordance with ASC 715, “Compensation—Retirement Benefits” (“ASC 715”), any change in projected benefit obligations due to a plan amendment is required to be recognized as prior service benefits (cost) as of the amendment date. Accordingly, the MHFG Group recognized ¥73,998 million of prior service benefits for the six months ended September 30, 2020.

The total contribution of approximately ¥41 billion is expected to be paid to the pension plans during the fiscal year ending March 31, 2021. The amount has been changed from which previously disclosed in the consolidated financial statements for the fiscal year ended March 31, 2020, in order to reflect the amendment to the pension plans which is effective as of October 1, 2020. For the six months ended September 30, 2020, the total contribution of ¥25 billion has been paid to the pension plans. The additional contribution of ¥16 billion is expected to be paid during the remainder of the fiscal year ending March 31, 2021.

13. Derivative financial instruments

The MHFG Group enters into derivative financial instruments in response to the diverse needs of customers, to manage the risk related to the assets and liabilities of the Group, as part of its asset and liability management, and for proprietary trading purposes. The Group is exposed primarily to market risk associated with interest rate, commodity, foreign currency, and equity products. Market risk arises from changes in market prices or indices, interest rates and foreign exchange rates that may result in an adverse change in the market value of the financial instrument or an increase in its funding costs. Exposure to market risk is managed by imposing position limits and monitoring procedures and by initiating hedging transactions. In addition to market risk, the Group is exposed to credit risk associated with counterparty default or nonperformance in respect of transactions. Counterparty credit risk arises when a counterparty fails to perform according to the terms and conditions of the contract and the value of the underlying collateral held, if applicable, is not sufficient to recover resulting losses. The exposure to counterparty credit risk is measured by the fair value of all derivatives and its potential exposure at the balance sheet 

F-37

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

dates. The exposure to counterparty credit risk is managed by entering into legally enforceable master netting agreements to mitigate the overall counterparty credit risk, requiring underlying collateral and guarantees based on an individual credit analysis of each obligor and evaluating the credit features of each instrument. In addition, credit approvals, limits and monitoring procedures are also imposed. 

Notional and fair value amounts of derivative instruments

The following table summarizes the notional and fair value amounts of derivative instruments outstanding as of March 31, 2020 and September 30, 2020. The fair values of derivatives are presented on a gross basis, derivative receivables and payables are not offset. In addition, they are not offset against the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements in the consolidated balance sheets, or the table below.

			Fair value
			Derivative receivables (2)				Derivative payables (2)
March 31, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,123,546		—		7,232		—		6,788
Foreign exchange contracts		185,359		—		2,926		—		2,899
Equity-related contracts		6,684		—		310		—		266
Credit-related contracts		4,676		—		30		—		29
Other contracts		400		—		38		—		39
Total		1,320,665		—		10,536		—		10,021
			Fair value
			Derivative receivables (2)				Derivative payables (2)
September 30, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,084,971		—		6,135		—		5,728
Foreign exchange contracts		174,856		—		2,143		—		2,160
Equity-related contracts		7,012		—		397		—		260
Credit-related contracts		7,742		—		55		—		77
Other contracts		397		—		28		—		26
Total		1,274,978		—		8,758		—		8,251

Notes:

(1) Notional amount includes the sum of gross long and gross short third-party contracts.

(2) Derivative receivables and payables are recorded in Trading account assets and Trading account liabilities, respectively.

The MHFG Group provided and/or accepted cash collateral for derivative transactions under master netting agreements. The cash collateral, which was not offset against derivative positions, was included in Other assets and Other liabilities, respectively, of which the amounts were ¥1,246 billion and ¥846 billion at March 31, 2020, and ¥1,079 billion and ¥587 billion at September 30, 2020, respectively.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Hedging activities

In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. Each derivative must be designated as a hedge, with documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and how effectiveness is to be assessed prospectively and retrospectively. The extent to which a hedging instrument is effective at achieving offsetting changes in fair value or cash flows must be assessed at least quarterly. The MHFG Group’s hedging activities include fair value and net investment hedges.

Net investment hedges

The MHFG Group uses forward foreign exchange contracts and foreign currency-denominated debt instruments to protect the value of net investments in non-Japanese subsidiaries from foreign currency exposure. Under net investment hedges, both derivatives and nonderivative financial instruments qualify as hedging instruments. The foreign currency-denominated debt instruments qualifying as hedging instruments include deposits and long-term debt, of which the carrying amounts of the portion designated as net investment hedges are included within the respective items in the consolidated balance sheets as well as relevant accompanying notes. For net investment hedges, the entire change in the fair value of a hedging derivative instrument or nonderivative hedging financial instrument is recorded in Foreign currency translation adjustments within Accumulated other comprehensive income, provided that the hedging instrument is designated as a hedge of the net investment.

The following table summarizes gains and losses information related to net investment hedges for the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in other comprehensive income (“OCI”) for six months ended September 30,
	2019			2020
	(in millions of yen)
Financial instruments hedging foreign exchange risk		(1,044	)		1,538
Total		(1,044	)		1,538

Note: Related to the net investment hedges, gains (losses) of ¥(260) million and ¥(1,312) million were reclassified from Accumulated other comprehensive income to earnings for the six months ended September 30, 2019 and 2020.

Derivative instruments not designated or qualifying as hedges

The MHFG Group enters into the following derivative transactions that do not qualify for hedge accounting with a view to implementing risk management strategies: (1) interest-rate swap transactions for the purpose of economically managing the interest-rate risks in deposits, loans etc., (2) currency swap transactions for the purpose of economically managing the foreign exchange risk of these assets, and (3) credit derivatives for the purpose of economically managing the credit risk in loans, residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLO”) and other similar assets. Such derivatives are accounted for as trading positions. The changes in fair value of these instruments are primarily recorded in Trading account gains (losses)—net, even though they are used to mitigate or transform the risk of exposures arising from banking activities. The net gains (losses) resulting from changes in the fair value of certain credit derivatives where the Group purchases protection to mitigate its credit risk exposure, related to its corporate loan portfolio, is recorded in Other noninterest income (expenses).

F-39

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The following table summarizes gains and losses on derivatives not designated or qualifying as hedges during the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in income for six months ended September 30,
	2019			2020
	(in millions of yen)
Interest rate contracts		210,909			32,791
Foreign exchange contracts		(30,736	)		26,277
Equity-related contracts (1)		(494	)		(31,999	)
Credit-related contracts (2)		(3,546	)		(29,219	)
Other contracts		(1,650	)		26,692
Total		174,483			24,542

Notes:

(1) The net gains (losses) excluded from the assessment of the effectiveness of fair value hedges is not included in the above table.

(2) Amounts include the net gains (losses) of ¥(426) million and ¥(1,221) million on the credit derivatives economically managing the credit risk of loans during the six months ended September 30, 2019 and 2020, respectively.

Credit derivatives

A credit derivative is a bilateral contract between a seller and a buyer of protection against the credit risk of a particular entity. Credit derivatives generally require that the seller of credit protection make payments to the buyer upon the occurrence of predefined credit events, which include bankruptcy, dissolution or insolvency of the referenced entity. The MHFG Group either purchases or writes protection on either a single name or a portfolio of reference credits. The Group enters into credit derivatives to help mitigate credit risk in its corporate loan portfolio and other cash positions, to take proprietary trading positions, and to facilitate client transactions.

The notional amount of credit derivatives represents the maximum potential amount of future payments the seller could be required to make. If the predefined credit event occurs, the seller will generally have a right to collect on the underlying reference credit and the related cash flows, while being liable for the full notional amount of credit protection to the buyer. The Group manages credit risk associated with written protection by purchasing protection with identical or similar underlying reference credits, which substantially offsets its exposure. Thus, the notional amount is not necessarily a reliable indicator of the Group’s actual loss exposure.

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MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The following table summarizes the notional and fair value amounts of credit derivatives at March 31, 2020 and September 30, 2020:

	March 31, 2020					September 30, 2020
	Notional amount		Fair value			Notional amount		Fair value
	(in billions of yen)
Credit protection written:
Investment grade		1,400		(5	)		2,687		37
Non-investment grade		416		—			530		8
Total		1,816		(5	)		3,217		45
Credit protection purchased		3,028		6			4,693		(67	)

Note: The rating scale is based upon either the external ratings or the internal ratings of the underlying reference credit. The lowest investment grade rating is considered to be BBB-, while anything below or unrated is considered to be non-investment grade. Non-investment grade credit derivatives primarily consist of unrated credit default swap indices such as CDX and iTraxx.

The following table shows the maximum potential amount of future payments for credit protection written by expiration period at March 31, 2020 and September 30, 2020:

	Maximum payout/Notional amount
	March 31, 2020		September 30, 2020
	(in billions of yen)
One year or less		270		233
After one year through five years		1,368		2,793
After five years		178		191
Total		1,816		3,217

Note: The maximum potential amount of future payments is the aggregate notional amount of the credit derivatives where the Group wrote the credit protection, and it has not been reduced by the effect of any amounts that the Group may possibly collect on the underlying assets and the related cash flows, nor netted against that of credit protection purchased.

Credit-related contingent features

Certain of the MHFG Group’s derivative instruments contain provisions that require the Group’s debt to maintain an investment grade credit rating from the major credit rating agencies. If the Group’s debt credit rating were to fall below investment grade, the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments which are in net liability positions for the Group.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The following table shows the quantitative information about derivative instruments with credit-risk-related contingent features at March 31, 2020 and September 30, 2020:

	March 31,  2020		September 30,  2020
	(in billions of yen)
Aggregate fair value of derivative instruments with credit-risk-related contingent features in net liability positions		888		747
Collateral provided to counterparties in the normal course of business		818		703
Amount required to be posted as collateral or settled immediately if credit-risk-related contingent features were triggered		70		44

14. Commitments and contingencies

Obligations under guarantees

The MHFG Group provides guarantees or indemnifications to counterparties to enhance their credit standing and enable them to complete a variety of business transactions. A guarantee represents an obligation to make payments to third parties if the counterparty fails to fulfill its obligation under a borrowing arrangement or other contractual obligation.

The Group records all guarantees and similar obligations subject to ASC 460, “Guarantees” (“ASC 460”) at fair value in the consolidated balance sheets at the inception of the guarantee.

The table below summarizes the maximum potential amount of future payments by type of guarantee at March 31, 2020 and September 30, 2020. The maximum potential amount of future payments disclosed below represents the contractual amounts that could be required to be repaid in the event of the guarantees being executed, without consideration of possible recoveries under recourse provisions or from collateral held. With respect to written options included in derivative financial instruments in the table below, in theory, the MHFG Group is exposed to unlimited losses; therefore, the table shows the notional amounts of the contracts as a substitute for the maximum exposure.

	March 31, 2020		September 30, 2020
	(in billions of yen)
Performance guarantees		2,456		2,527
Guarantees on loans		301		266
Guarantees on securities		110		96
Other guarantees		2,314		2,306
Guarantees for the repayment of trust principal		59		31
Liabilities of trust accounts		446		456
Derivative financial instruments		21,756		21,097

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The table below presents the maximum potential amount of future payments of performance guarantees, guarantees on loans, guarantees on securities and other guarantees classified based on internal ratings at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Investment grade		4,233		4,079
Non-investment grade		948		1,116
Total		5,181		5,195

Note: Investment grade in the internal rating scale generally corresponds to BBB- or above in the external rating scale.

Other off-balance-sheet instruments

In addition to guarantees, the MHFG Group issues other off-balance-sheet instruments to its customers, such as lending-related commitments and commercial letters of credit. Under the terms of these arrangements, the MHFG Group is required to extend credit or make certain payments upon the customers’ requests.

The table below summarizes the contractual amounts with regard to these undrawn commitments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Commitments to extend credit (Note)		76,633		86,359
Commercial letters of credit		690		537
Total		77,323		86,896

Note: Commitments to extend credit include commitments to invest in securities.

Legal proceedings and investigations

The MHFG Group is involved in normal collection proceedings initiated by the Group, other legal proceedings and investigations in the ordinary course of business. In accordance with ASC 450, the Group recognizes a liability for loss contingencies arising from such proceedings and investigations when a loss is probable and the loss amount or the range of the loss can be reasonably estimated. If a loss does not meet this condition but is reasonably possible, the Group does not recognize a liability but discloses the detail of such proceedings and investigations. Based on the information available as of the date of the consolidated financial statements, the Group believes that the outcome of the collection, legal proceedings and investigations will not have a significant adverse effect on the consolidated financial statements. 

15. Variable interest entities and securitizations

Variable interest entities

In the normal course of business, the MHFG Group is involved with VIEs primarily through the following types of transactions: asset-backed commercial paper/loan programs, asset-backed securitizations, investments in

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

securitization products, investment funds, trust arrangements, structured finance, and funding vehicles. The Group consolidates certain of these VIEs, where the Group is deemed to be the primary beneficiary because it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The MHFG Group reassesses whether it is the primary beneficiary on an ongoing basis as long as the Group has any continuing involvement with the VIE. There are also other VIEs, where the Group has determined that it is not the primary beneficiary but has significant variable interests. In evaluating the significance of the variable interests, the Group takes into consideration the extent of its involvement with each VIE, such as the seniority of its investments, the share of its holding in each tranche and the variability it expects to absorb, as well as other relevant facts and circumstances. The likelihood of loss is not necessarily relevant to the determination of significance, and therefore, “significant” does not imply that there is high likelihood of loss. The maximum exposure to loss that is discussed in this section refers to the maximum loss that the Group could possibly be required to record in its consolidated statements of income as a result of its involvement with the VIEs. This represents exposures associated with both on-balance-sheet assets and off-balance-sheet liabilities related to the VIEs. Further, this maximum potential loss is disclosed regardless of the probability of such losses and, therefore, it is not indicative of the ongoing exposure which is managed within the Group’s risk management framework.

The table below shows the consolidated assets of the Group’s consolidated VIEs as well as total assets and maximum exposure to loss for its significant unconsolidated VIEs, in which the Group has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria as of March 31, 2020 and September 30, 2020:

	Consolidated VIEs		Significant unconsolidated VIEs
March 31, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,160		—		—
Asset-backed securitizations		572		77		7
Investments in securitization products		370		—		—
Investment funds		2,694		2,299		514
Trust arrangements and other		19		—		—
Total		5,815		2,376		521

	Consolidated VIEs		Significant unconsolidated VIEs
September 30, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,045		—		—
Asset-backed securitizations		780		77		8
Investments in securitization products		370		—		—
Investment funds		2,283		2,346		483
Trust arrangements and other		5,557		—		—
Total		11,035		2,423		491

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

As of March 31, 2020 and September 30, 2020, the noncontrolling interests in consolidated VIEs amounted to ¥541 billion and ¥275 billion, respectively, and included in the Group’s equity-classified noncontrolling interests.

The Group has not provided financial or other support to consolidated or unconsolidated VIEs that the Group was not previously contractually required to provide.

The tables below present the carrying amounts and classification of assets and liabilities on the MHFG Group’s balance sheets that relate to its variable interests in significant unconsolidated VIEs, as of March 31, 2020 and September 30, 2020:

Assets on balance sheets related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Trading account assets		108		113
Investments		267		231
Loans		55		58
Total		430		402

Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Payables under securities lending transactions		47		48
Trading account liabilities		2		2
Total		49		50
Maximum exposure to loss (Note)		521		491

Note: This represents the maximum amount the Group could possibly be required to record in its consolidated statements of income associated with on-balance-sheet exposures and off-balance-sheet liabilities such as undrawn commitments.

In the table above the nature of the Group’s variable interest can take different forms, as described further in the notes below. Additionally the Group’s exposure to the obligations of VIEs is generally limited to its interest in these entities. In certain instances the Group provides undrawn commitments to the VIEs.

The Group’s maximum exposure to loss presented in the table above does not include the benefit of offsetting financial instruments that are held to mitigate the risks associated with these variable interests. Furthermore, the Group’s maximum exposure to loss presented in the table above is not reduced by the amount of collateral held as part of the transaction with the VIE or any party to the VIE directly against a specific exposure to loss.

Asset-backed commercial paper/loan programs

The MHFG Group manages several asset-backed commercial paper/loan programs that provide its clients with off-balance-sheet and/or cost-effective financing. The VIEs used in the programs purchase financial assets, primarily receivables, from clients participating in the programs and provide liquidity through the issuance of commercial paper or borrowings from the MHFG Group backed by the financial assets. While customers normally continue to service the transferred receivables, the MHFG Group underwrites, distributes, and makes a market in commercial paper issued by the conduits. The MHFG Group typically provides program-wide liquidity

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

and credit support facilities and, in some instances, financing to the VIEs. The MHFG Group has the power to determine which assets will be held by the VIEs and has an obligation to monitor these assets. The Group is also responsible for liability management. In addition, through the liquidity and credit support facilities provided to the VIEs, the Group has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs.

Asset-backed securitizations

The MHFG Group acts as an arranger of various types of structured finance schemes to meet its clients’ needs for off-balance-sheet financing. In substantially all of these structured financing transactions, the transfer of the financial asset by the client is structured to be bankruptcy remote by use of a bankruptcy remote entity, which is deemed to be a VIE because its equity holder does not have decision making rights. The MHFG Group receives fees for structuring and/or distributing the securities sold to investors. In some cases, the MHFG Group itself purchases the securities issued by the entities and/or provides loans to the VIEs.

In addition, the MHFG Group establishes several single-issue and multi-issue special purpose entities that issue collateralized debt obligations (“CDO”) or CLO, synthetic CDO/CLO or other repackaged instruments to meet clients’ and investors’ financial needs. The MHFG Group also arranges securitization transactions including CMBS, RMBS and others. In these transactions, the MHFG Group acts as an underwriter, placement agent, asset manager, derivatives counterparty, and/or investor in debt and equity instruments.

In these cases, the MHFG Group consider that these variable interests are not significant as the MHFG Group does not have material balance sheet or off-balance exposure at risk related to these variable interests. However, when the MHFG Group has invested in securities issued by the VIEs and/or provides loans to the VIEs and its investment is most part of shares, such variable interests are deemed to be “significant.” In certain VIEs, where the MHFG Group provides liquidity and credit support facilities, writes credit protection or invests in debt or equity instruments in its role as an arranger, servicer, administrator or asset manager, etc., the Group has the power to determine which assets will be held by the VIEs or to manage and monitor these assets. In addition, through the variable interests above, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs.

The MHFG Group established certain VIEs to securitize its own mortgage loans. The Group provides servicing for and holds retained subordinated beneficial interests in the securitized mortgage loans. In addition, the Group retains credit exposure in the form of guarantees on these loans. In its role as a servicer, the Group has the power to direct the entity’s activities that most significantly impact the entity’s economic performance by managing defaulted mortgage loans. In addition, through its retained interests and its aforementioned involvement as a guarantor, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the entity. Therefore, the Group consolidates such VIEs.

The MHFG Group has started Tender Option Bond (“TOB”) programs in the fiscal year ended March 31, 2020, which is associated with trusts that hold highly-rated, fixed-rate and tax-exempt municipal bonds. The trust finances the purchase of their municipal bonds by issuing two types of certificates: (1) short-term puttable and floating-rate certificates (“floaters”), typically purchased by money market funds and (2) certificates that earn all excess cash flow received by the trust after floaters and fees are paid (“residuals”), purchased by the transferor of the municipal bond to the trust as a sponsor. The Group is engaged in two types of TOB trusts: customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are those for which the residuals are purchased by customers of the Group, whereas the residuals issued by non-customer TOB trusts are purchased by the Group.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Both of types of TOB trusts are deemed to be VIEs because its equity holder does not have decision making rights. The MHFG Group considers that it is a “significant” variable interest when the Group has the residuals as a sponsor and/or provides liquidity and credit support facilities. For customer TOB trusts, the residual holders are obligated to reimburse the Group for any payment the Group makes under those liquidity and credit support facilities. In non-customer TOB trusts, where MHFG Group holds the residuals as a sponsor, the Group has the power to determine which assets will be held by the VIEs or to manage and monitor these assets. In addition, through the variable interests above, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs. Customer TOB trusts are not consolidated in the financial statements of the Group, as the residuals are held by customers and the Group does not have power to determine which assets will be held by the VIEs or to manage and monitor these assets.

Investments in securitization products

The MHFG Group invests in, among other things, various types of CDO/CLO, synthetic CDO/CLO and repackaged instruments, CMBS and RMBS arranged by third parties for the purpose of generating current income or capital appreciation, which all utilize entities that are deemed to be VIEs. By design, such investments were investment grade at issuance and held by a diverse group of investors. The potential loss amounts of the securities and the loans are generally limited to the amounts invested because the Group has no contractual involvement in such VIEs beyond its investments. Since the Group is involved in these VIEs only as an investor, the Group does not ordinarily have the power to direct the VIEs’ activities that most significantly impact the VIEs’ economic performance. Similar to the criteria noted in the asset-backed securitization section, the Group views this investment activity to be “significant” when it has a large investment share and/or provides loans to the VIEs. The Group consolidates VIEs, where the transactions are tailored by the third party arrangers to meet the Group’s needs as a main investor, who is ultimately deemed to have the power to determine which assets are to be held by the VIEs. The Group also invests in certain beneficial interests issued by VIEs which hold real estate that the Group utilizes. In addition to these variable interests, when the Group has the power including the sole unilateral ability to liquidate the VIEs, the Group consolidates such VIEs.

Investment funds

The MHFG Group invests in various investment funds, including securities investment trusts, which collectively invest in equity and debt securities that include listed Japanese securities and investment grade bonds. Investment advisory companies or fund management companies, including the Group’s subsidiaries and affiliates, administer and make investment decisions about such investment funds. The Group considers that it is a “significant” variable interest when the Group’s investment share is greater than threshold. The Group consolidates certain investment funds where it is deemed to be the primary beneficiary.

The Group determines whether it is the primary beneficiary by evaluating whether it has both (1) the power to make investment decisions about the investment funds and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the investment funds. The Group consolidates certain investment funds where it is deemed to be the primary beneficiary.

Trust arrangements

The MHFG Group offers a variety of asset management and administration services under trust arrangements including security investment trusts, pension trusts and trusts used in the securitization of assets originated by and transferred to third parties. The Group receives trust fees for providing services as an agent or fiduciary on behalf of beneficiaries. In these cases, the MHFG Group considers that these variable interests are not significant other than specific involvements such as the following;

With respect to guaranteed principal money trust products, the MHFG Group assumes certain risks by providing guarantees for the repayment of principal as required by the trust agreements or relevant Japanese legislation.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

The MHFG Group manages entrusted funds primarily through the origination of high quality loans and other credit-related products, investing in investment grade marketable securities such as Japanese government bonds and placing cash with the MHFG Group’s subsidiary trust banks. The Group has the power to determine which assets will be held by the VIEs or to manage these assets. In addition, through the principal guarantee agreements, the Group has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs. However, the MHFG Group does not consolidate certain guaranteed principal money trusts, which invest all the entrusted funds in the MHFG Group itself, as the Group has determined that it has no variable interests. See Note 14 “Commitments and contingencies” for the balances of guaranteed trust principal that are not consolidated at March 31, 2020 and September 30, 2020.

With respect to non-guaranteed trust arrangements, the MHFG Group manages and administers assets on behalf of its customers (trust beneficiaries) in the capacity of a trustee and fiduciary. For substantially all non-guaranteed trust arrangements, the Group generally does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance or has neither the obligation to absorb losses nor the right to receive benefits that could potentially be significant to the VIEs. Therefore, such trust accounts are not included in the consolidated financial statements of the MHFG Group.

The MHFG Group has established a trust in August 2020, which holds the Group’s housing loans and in turn issues beneficiary interests to the Group, as a result from Special Funds-Supplying Operations implemented by the Bank of Japan to facilitate financing in response to COVID-19. The Group pledges the beneficiary interests as a collateral for borrowing from the Bank of Japan. In its role as a servicer, the Group has power to direct the entity’s activities that most significantly impact the entity’s economic performance by managing mortgage loans owned by a trust. The Group considers that it is a “significant” variable interest since the Group can determine which assets will be held by the VIE. In addition, through the beneficiary interest, the Group has obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. Therefore, the Group consolidates the VIE.

Special purpose entities created for structured finance

The MHFG Group is involved in real estate, commercial aircraft and other vessel and machinery and equipment financing to VIEs and financing in securitized receivable. As the Group typically only provides senior financing with credit enhanced by subordinated interests and may sometimes act as an interest rate swap counterparty, the Group has determined that it does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance, or it does not have significant variable interests. Therefore, the Group does not consolidate such VIEs.

Funding Vehicles

The MHFG Group has established several wholly-owned off-shore vehicles which issue securities, typically preferred stock that is fully guaranteed by the MHFG Group, to investors unrelated to the MHFG Group to fund purchases of debt instruments issued by the MHFG Group. These entities are considered VIEs because they lack sufficient equity to finance their activities; however, the MHFG Group’s investment in the vehicles’ equity is not a variable interest because the investment is not considered to be at risk as the entire amount raised by the vehicles was used to purchase debt instruments issued by the MHFG Group. Because the MHFG Group does not have variable interests in these vehicles, the MHFG Group does not consolidate these entities. Debt instruments issued by the MHFG Group, which are included in Long-term debt, were ¥356 billion and ¥317 billion at March 31, 2020 and September 30, 2020, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Securitization

The MHFG Group engages in securitization activities and securitizes mortgage loans, other loans, government and corporate securities and other types of financial assets in the normal course of business. In these securitization transactions, the Group records the transfer of a financial asset as a sale when all the accounting criteria for a sale under ASC 860, “Transfers and Servicing” (“ASC860”) are met. These criteria are (1) the transferred financial assets are legally isolated from the Group’s creditors, (2) the transferee or beneficial interest holder has the right to pledge or exchange the transferred financial assets, and (3) the Group does not maintain effective control over the transferred financial assets. If all the criteria are not met, the transfer is accounted for as a secured borrowing.

For the six months ended September 30, 2019 and 2020, the MHFG Group neither made significant transfers of financial assets nor recognized significant gains or losses in securitization transactions accounted for as sales. The Group did not retain significant interests in securitization transactions accounted for as sales as of March 31, 2020 and September 30, 2020.

There are certain transactions where transfers of financial assets do not qualify for the aforementioned sales criteria and are accounted for as secured borrowings. These transferred assets continue to be carried on the consolidated balance sheets of the MHFG Group. Such assets are associated with securitization transactions and loan participation transactions, which amounted to ¥176 billion and ¥153 billion as of March 31, 2020, and ¥174 billion and ¥142 billion as of September 30, 2020, respectively. Liabilities associated with securitization and loan participation transactions are presented as Payables under securities lending transactions and Other short-term borrowings or Long-term debt, respectively, on the consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

16. Noninterest income

Details of Noninterest income for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Fee and commission income:
Securities-related business (1)		64,498			78,441
Deposits-related business (1)		7,570			7,408
Lending-related business (2)(4)		68,609			79,619
Remittance business (1)		56,075			54,785
Asset management business (1)		48,291			45,948
Trust-related business (1)		56,459			54,425
Agency business (1)		15,152			15,064
Guarantee-related business (3)		13,898			15,560
Fees for other customer services (1)		73,440			77,067
Total Fee and commission income		403,992			428,317
Foreign exchange gains (losses)—net (3)		27,923			22,785
Trading account gains (losses)—net (2)		395,405			257,591
Investment gains (losses)—net:
Debt securities (3)		31,092			46
Equity securities (3)		(126,648	)		266,119
Equity in earnings (losses) of equity method investees-net (3)		22,066			5,788
Gains on disposal of premises and equipment (3)		1,693			6,849
Other noninterest income (2)(5)		34,839			23,715
Total		790,362			1,011,210

Notes:

(1) These amounts are revenues from contracts within the scope of ASC 606, “Revenue from contracts with customers” (“ASC 606”).

(2) Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

(3) These amounts are revenues from contracts that do not meet the scope of ASC 606.

(4) Most of the lending-related fees such as commitment fees and arrangement fees are not within the scope of ASC 606.

(5) These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

Certain Fee and commission income, Trading account gains (losses)-net and Other noninterest income outlined in the table above are considered to be revenues from contracts that are within the scope of ASC 606. The MHFG Group disaggregates Fee and commission income, which is the main part of revenues within the scope of ASC 606, by type of business or service in the table above.

Fee and commission income

For the MHFG Group’s accounting policy for the recognition of Fee and commission income, see Note 1 “Basis of presentation and summary of significant accounting policies” to the consolidated financial statements in the Group’s most recent Form 20-F.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Trust-related business fees consist of trust fees earned primarily through fiduciary asset management and administrative service and other trust-related fees, which amounted to ¥25 billion and ¥31 billion for the six months ended September 30, 2019, respectively, and ¥25 billion and ¥29 billion for the six months ended September 30, 2020, respectively.

Trading account gains (losses)—net and Other noninterest income

In addition to Fee and commission income, Trading account gains (losses)-net and Other noninterest income include certain revenues within the scope of ASC 606. Underwriting fees from trading securities, which amounted to ¥33 billion and ¥45 billion for the six months ended September 30, 2019 and 2020, respectively, are within the scope of ASC 606 and accounted for in Trading account gains (losses)-net. Underwriting fees are primarily recognized at the point in time and all considerations of the transaction are fixed on trade date or pricing date. For the six months ended September 30, 2019 and 2020, approximately ¥12 billion and ¥7 billion, respectively, of Other noninterest income were within the scope of ASC 606. Credit card interchange fees are within the scope of ASC 606 and accounted for in Other noninterest income. Credit card interchange fees are earned on credit card transactions conducted through payment networks and recognized upon settlement of the credit card payment transactions.

Contract balances relating to revenues from contracts with customers subject to ASC 606

Contract assets and receivables from contracts with customers subject to ASC 606 are recognized in Accrued income or accounts receivable of Other assets. As of March 31, 2020 and September 30, 2020, the balance of contract assets was not material. Contract liabilities are recognized in unearned income of Other liabilities. As of March 31, 2020 and September 30, 2020, the balance of contract liabilities was not material.

Remaining performance obligations relating to revenues from contracts with customers subject to ASC 606

Remaining performance obligations are services that the MHFG Group has committed to provide in the future in connection with its contracts with customers. As of March 31, 2020 and September 30, 2020, the amount of expected revenues from current obligations to provide services in the future was not material. It excludes revenues from contracts less than one year or contracts that have provisions that allow the Group to recognize revenue at the amount it has the right to invoice.

17. Fair value

Fair value measurements

ASC 820, “Fair Value Measurements” (“ASC 820”), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, ASC 820 precludes (1) the deferral of gains and losses at inception of certain derivative contracts whose fair value was not evidenced by market-observable data, and (2) the use of block discounts when measuring the fair value of instruments traded in an active market, which were previously applied to large holdings of publicly traded financial instruments.

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(Unaudited)—(Continued)

Fair value hierarchy

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. The standard describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market.
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments. If no quoted market prices are available, the fair values of debt securities and over-the-counter derivative contracts in this category are determined using pricing models with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Valuation process

The MHFG Group has established valuation policies which govern the principles of fair value measurements and the authority and duty of each department. The Group has also established procedure manuals which describe valuation techniques and related inputs for determining the fair values of various financial instruments. The policies require that the measurement of fair values be carried out in accordance with the procedures performed by the risk management departments or the back offices which are independent from the front offices. The policies also require the risk management departments to check and verify whether the valuation methodologies defined in the procedure manuals are fair and proper and the internal audit departments to periodically review the compliance with the procedures throughout the Group. Although the valuation methodologies and related inputs are consistently used from period to period, a change in the market environment sometimes leads to a change in the valuation methodologies and the inputs. For instance, a change in market liquidity due to a delisting or a new listing is one of the key drivers of revisions to the valuation methodologies and the inputs. The key drivers also include the availability or the lack of market observable inputs and the development of new valuation methodologies. Price verification performed through the Group’s internal valuation process has an important role in identifying whether the valuation methodologies and the inputs need to be changed. The internal valuation process over the prices broker-dealers provide, primarily for Japanese securitization products, is described in more detail below in Available-for-sale securities. A change in the valuation methodologies and/or the inputs requires the revision of the valuation policies and procedure manuals, which is required to be approved by the appropriate authority, either the CEO, the head of risk management, and/or the head of accounting, depending on the nature and characteristics of the change.

The following is a description of valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis, including the general classification of such instruments pursuant to the fair value hierarchy and the MHFG Group’s valuation techniques used to measure fair values. During the six months ended

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(Unaudited)—(Continued)

September 30, 2020, there were no significant changes made to the Group’s valuation techniques and related inputs.

Trading securities and trading securities sold, not yet purchased

When quoted prices for identical securities are available in an active market, the Group uses the quoted prices to measure the fair values of securities and such securities are classified in Level 1 of the fair value hierarchy. Level 1 securities include highly liquid government bonds and equity securities. When quoted prices for identical securities are available, but not actively traded, such securities are classified in Level 2 of the fair value hierarchy. When no quoted market prices are available, the Group estimates fair values by using pricing models with inputs that are observable in the market and such securities are classified in Level 2 of the fair value hierarchy. Level 2 securities include Japanese local government bonds, corporate bonds, and commercial paper. When less liquid market conditions exist for securities, the quoted prices are stale or the prices from independent sources vary significantly, such securities are generally classified in Level 3 of the fair value hierarchy. The fair values of securitization products such as RMBS, CMBS, ABS, and CLO are determined primarily by using a discounted cash flow model. The key inputs used for the model include default rates, recovery rates, prepayment rates, and discount rates. In the event that certain key inputs are unobservable or cannot be corroborated by observable market data, these financial instruments are classified in Level 3.

Hedge funds the Group invests in are primarily multi strategy funds that employ a fundamental bottom-up investment approach across various asset classes globally. Hedge funds are measured at the net asset value (“NAV”) per share and the Group has the ability to redeem its investment with the investees at the NAV per share at the measurement date or within the near term. Private equity funds have specific investment objectives in connection with their acquisition of equity interests in new and emerging firms in need of capital. Employing venture capital strategies, they provide financing and other support to start-up businesses, medium and small entities in particular geographical areas, and to companies with certain technologies or companies in high-growth industries. Real estate funds invest globally and primarily in real estate companies, debt recapitalizations and direct property. Private equity funds and real estate funds are measured using the NAV per share practical expedient and the Group does not have the ability to redeem its investment in the investees at the NAV per share at the measurement date or within the near term. It is estimated that the underlying assets of the funds would be liquidated within a ten-year period.

Derivative financial instruments

Exchange-traded derivatives are valued using quoted market prices and consequently are classified in Level 1 of the fair value hierarchy. However, the majority of derivatives entered into by the Group are executed over-the-counter and are valued using internal valuation techniques as no quoted market prices are available for such instruments. The valuation techniques depend on the type of derivatives. The principal techniques used to value these instruments are discounted cash flow models and the Black-Scholes option pricing model, which are widely accepted in the financial services industry. The key inputs vary by the type of derivatives and the nature of the underlying instruments and include interest rate yield curves, foreign exchange rates, the spot price of the underlying, volatility and correlation. Each item is classified in either Level 2 or Level 3 depending on the observability of the significant inputs to the model. Level 2 derivatives include plain vanilla interest rate and currency swaps and option contracts. Derivative contracts valued using significant unobservable correlation or volatility are classified in Level 3 of the fair value hierarchy. In addition, the Group records credit-risk valuation adjustments on over-the-counter derivatives to reflect the credit quality of its counterparties. The Group calculates these credit-risk valuation adjustments using modeled expected exposure, and default probabilities and

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(Unaudited)—(Continued)

severity factors that are developed from market credit spreads and other related market information. Also, the Group records funding valuation adjustments to reflect the impact of funding on uncollateralized over-the-counter derivatives and derivatives where the Group is not permitted to use the collateral received, and is recognized where there is evidence that a market participant would incorporate the adjustment into the transfer of the instrument. The Group calculates these funding valuation adjustments incorporating the expected future funding requirements arising from the Group’s positions and the estimated market funding cost which considers the Group’s credit risk.

Available-for-sale securities

The fair values of available-for-sale securities are determined primarily using the same procedures described under trading securities above. Since private placement bonds have no quoted market prices, the fair values of such bonds are estimated based on a discounted cash flow model using interest rates approximating the current rates for instruments with similar maturities and credit risk. Private placement bonds are classified in either Level 2 or Level 3 depending on the observability of the significant inputs to the model, such as credit risk. The fair values of securitization products such as RMBS, CMBS and ABS are generally based upon single non-binding quoted prices from broker-dealers. Such quotes are validated through the Group’s internal processes and controls. In rare instances where the Group finds the quoted prices to be invalid through its internal valuation process, it adjusts those prices or alternatively estimates their fair values by using a discounted cash flow model to incorporate the Group’s estimates of key inputs such as the most recent value of each underlying asset, cash flows of the underlying assets, and discount margin. The validation of such prices varies depending on the nature and type of the products. For the majority of RMBS and ABS, broker quotes are validated by investigating significant unusual monthly valuation fluctuations and comparing to prices internally computed through discounted cash flow models using assumptions and parameters provided by brokers such as the cash flows of underlying assets, yield curve, prepayment speed and credit spread. For the majority of CMBS, the Group validates broker quotes through a review process that includes the investigation of significant unusual monthly valuation fluctuations and/or a review of underlying assets with significant differences between the valuations of the Group and the broker-dealers being identified. Though most Japanese securitization products are classified in Level 3, certain securitization products such as Japanese RMBS are classified in Level 2, if the quoted prices are verified through either recent market transactions or a pricing model that can be corroborated by observable market data.

Equity securities

Equity securities mainly consist of marketable equity securities. The fair values of the marketable equity securities are based upon quoted market prices for identical equity securities trading as securities in an active market. Equity securities also include investments in certain investment funds measured using the NAV per share practical expedient including private equity funds and real estate funds. These securities are determined primarily using the same procedures described under Trading securities and trading securities sold, not yet purchased above. 

Other investments

Other investments consist of investments held by consolidated investment companies. These companies typically hold investments in marketable and non-marketable equity securities and debt securities. The fair value of the marketable equity securities is based upon quoted market prices. The fair value of the non-marketable equity securities is based upon significant management judgment, as very limited quoted prices exist. When evaluating

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

such securities, the Group firstly considers recent market transactions of identical securities, if applicable. Thereafter, the Group uses commonly accepted valuation techniques such as earnings multiples based on comparable public securities. Non-marketable equity securities are generally classified in Level 3 of the fair value hierarchy. The fair value of the debt securities is estimated using a discounted cash flow model, since they have no quoted market prices. Those debt securities are classified in Level 3, because the credit risk is unobservable.

Long-term debt

Fair value accounting is elected for certain long-term debt instruments with embedded derivatives. The fair values are determined using a discounted cash flow model that considers the embedded derivatives and the terms and payment structures of the notes. The fair values of the derivatives embedded in such notes are primarily derived by using the same procedures described in Derivative financial instruments above. Such notes are classified in Level 2 or Level 3 depending on the observability of the significant inputs into the model used to determine the fair value of the embedded derivatives. The Group also measures certain notes that contain embedded derivatives at fair value under the practicability exception. For these instruments, fair value is based on quoted prices for identical debt traded as a security in inactive markets. These instruments are classified in Level 2 of the fair value hierarchy.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Items measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and September 30, 2020, including those for which the MHFG Group has elected the fair value option, are summarized below:

March 31, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		1,516		22		—		1,538
Japanese local government bonds		—		170		—		170
U.S. Treasury bonds and federal agency securities		4,580		461		—		5,041
Other foreign government bonds		1,128		547		—		1,675
Agency mortgage-backed securities		—		3,390		—		3,390
Residential mortgage-backed securities		—		—		10		10
Certificates of deposit and commercial paper		—		1,036		—		1,036
Corporate bonds and other (2)		41		1,398		1,115		2,554
Equity securities		1,000		650		30		1,680
Trading securities measured at net asset value (3)								462
Derivative financial instruments:
Interest rate contracts		153		7,070		9		7,232
Foreign exchange contracts		9		2,900		17		2,926
Equity-related contracts		169		125		16		310
Credit-related contracts		—		22		8		30
Other contracts		3		11		24		38
Available-for-sale securities:
Japanese government bonds		11,950		653		—		12,603
Japanese local government bonds		—		273		—		273
U.S. Treasury bonds and federal agency securities		935		—		—		935
Other foreign government bonds		436		975		—		1,411
Agency mortgage-backed securities		—		505		—		505
Residential mortgage-backed securities		—		53		31		84
Commercial mortgage-backed securities		—		—		615		615
Japanese corporate bonds and other debt securities		—		1,678		157		1,835
Foreign corporate bonds and other debt securities		—		678		174		852
Equity securities:
Equity securities with readily determinable fair values		2,670		95		—		2,765
Equity securities measured at net asset value (3)								72
Other investments		—		—		39		39
Total assets measured at fair value on a recurring basis		24,590		22,712		2,245		50,081
Liabilities:
Trading securities sold, not yet purchased		1,880		515		—		2,395
Derivative financial instruments:
Interest rate contracts		163		6,611		14		6,788
Foreign exchange contracts		8		2,890		1		2,899
Equity-related contracts		186		47		33		266
Credit-related contracts		—		19		10		29
Other contracts		6		10		23		39
Long-term debt (4)		—		1,916		621		2,537
Total liabilities measured at fair value on a recurring basis		2,243		12,008		702		14,953

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

September 30, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		3,257		11		—		3,268
Japanese local government bonds		—		138		—		138
U.S. Treasury bonds and federal agency securities		4,963		829		—		5,792
Other foreign government bonds		938		526		—		1,464
Agency mortgage-backed securities		—		4,348		—		4,348
Residential mortgage-backed securities		—		—		9		9
Certificates of deposit and commercial paper		—		1,259		—		1,259
Corporate bonds and other (2)		22		1,348		1,085		2,455
Equity securities		929		570		30		1,529
Trading securities measured at net asset value (3)								447
Derivative financial instruments:
Interest rate contracts		40		6,088		7		6,135
Foreign exchange contracts		—		2,123		20		2,143
Equity-related contracts		98		287		12		397
Credit-related contracts		—		52		3		55
Other contracts		3		10		15		28
Available-for-sale securities:
Japanese government bonds		19,600		320		—		19,920
Japanese local government bonds		—		407		—		407
U.S. Treasury bonds and federal agency securities		627		—		—		627
Other foreign government bonds		430		926		—		1,356
Agency mortgage-backed securities		—		520		—		520
Residential mortgage-backed securities		—		53		27		80
Commercial mortgage-backed securities		—		—		641		641
Japanese corporate bonds and other debt securities		—		1,579		491		2,070
Foreign corporate bonds and other debt securities		—		747		178		925
Equity securities:
Equity securities with readily determinable fair values		2,976		40		—		3,016
Equity securities measured at net asset value (3)								83
Other investments		—		—		56		56
Total assets measured at fair value on a recurring basis		33,883		22,181		2,574		59,168
Liabilities:
Trading securities sold, not yet purchased		2,051		268		20		2,339
Derivative financial instruments:
Interest rate contracts		39		5,679		10		5,728
Foreign exchange contracts		—		2,159		1		2,160
Equity-related contracts		128		109		23		260
Credit-related contracts		—		75		2		77
Other contracts		4		8		14		26
Long-term debt (4)		—		2,164		638		2,802
Total liabilities measured at fair value on a recurring basis		2,222		10,462		708		13,392

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Notes:

(1) Trading securities include foreign currency denominated securities for which the MHFG Group elected the fair value option.

(2) The amount includes CLO and convertible bonds, which are classified in Level 3.

(3) In accordance with ASC 820, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented for these classes of assets are intended to permit the reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position. The amounts of unfunded commitments related to these investments at March 31, 2020 and September 30, 2020 were ¥47 billion and ¥56 billion, respectively.

(4) Amounts represent items for which the Group elected the fair value option or for which it applied the practicability exception.

Items measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended September 30, 2019 and 2020:

Six months ended September 30, 2019	April 1, 2019			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases			Sales			Issuances		Settle- ments			September 30, 2019			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		11			—	(2)		—			—		—			—			—			—		(1	)		10			—
Corporate bonds and other		1,044			(15	) (2)		—			—		—			338			(105	)		—		(125	)		1,137			(14	)
Equity securities		28			2	(2)		—			—		—			1			—			—		(1	)		30			—
Derivative financial instruments, net (1):
Interest rate contracts		13			(9	) (2)		—			—		—			—			—			—		1			5			(8	)
Foreign exchange contracts		22			(10	) (2)		—			—		—			—			—			—		(2	)		10			(9	)
Equity-related contracts		(5	)		1	(2)		—			—		—			—			—			—		(3	)		(7	)		2
Credit-related contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Other contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		40			—	(3)		—	(4)		—		—			—			—			—		(7	)		33			—
Commercial mortgage-backed securities		500			—	(3)		1	(4)		—		—			89			(35	)		—		(6	)		549			—
Japanese corporate bonds and other debt securities		120			1	(3)		4	(4)		—		—			97			—			—		(53	)		169			—
Foreign corporate bonds and other debt securities		103			—	(3)		(5	) (4)		—		—			38			—			—		(3	)		133			—
Other investments		35			1	(3)		—			—		—			10			—			—		(10	)		36			2
Liabilities:
Trading securities sold, not yet purchased		1			—	(2)		—			—		—			(9	)		8			—		—			—			—
Long-term debt		655			(6	) (5)		—	(4)		17		(6	)		—			—			108		(134	)		646			(10	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Six months ended September 30, 2020	April 1, 2020			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issuances		Settle- ments			September 30, 2020			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		10			—	(2)		—			—		—			—		—			—		(1	)		9			—
Corporate bonds and other		1,115			18	(2)		—			—		(1	)		189		(113	)		—		(123	)		1,085			18
Equity securities		30			(2	) (2)		—			—		—			2		—			—		—			30			(1	)
Derivative financial instruments, net (1):
Interest rate contracts		(5	)		(3	) (2)		—			—		—			—		—			—		5			(3	)		1
Foreign exchange contracts		16			4	(2)		—			—		—			—		—			—		(1	)		19			5
Equity-related contracts		(17	)		4	(2)		—			—		—			—		—			—		2			(11	)		3
Credit-related contracts		(2	)		3	(2)		—			1		1			—		—			—		(2	)		1			1
Other contracts		1			—	(2)		—			—		—			—		—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		31			—	(3)		—	(4)		—		—			—		—			—		(4	)		27			—
Commercial mortgage-backed securities		615			—	(3)		1	(4)		—		—			78		(51	)		—		(2	)		641			—
Japanese corporate bonds and other debt securities		157			(7	) (3)		8	(4)		—		—			344		—			—		(11	)		491			—
Foreign corporate bonds and other debt securities		174			1	(3)		8	(4)		—		—			31		—			—		(36	)		178			—
Other investments		39			(1	) (3)		—			—		—			38		(1	)		—		(19	)		56			(1	)
Liabilities:
Trading securities sold, not yet purchased		—			—	(2)		—			—		—			—		20			—		—			20			—
Long-term debt		621			(37	) (5)		(8	) (4)		19		(35	)		—		—			108		(120	)		638			(27	)

Notes:

(1) Total Level 3 derivative exposures have been netted on the table for presentation purposes only.

(2) Gains (losses) in Earnings are reported in Trading account gains (losses)-net, Foreign exchange gains (losses)-net or Other noninterest income (expenses).

(3) Gains (losses) in Earnings are reported in Investment gains (losses)-net.

(4) Gains (losses) in OCI are reported in Other comprehensive income (loss).

(5) Gains (losses) in Earnings are reported in Other noninterest income (expenses).

(6) Amounts represent total gains or losses recognized in earnings and OCI during the period. These gains or losses were attributable to the change in fair value relating to assets and liabilities classified as Level 3 that were still held at September 30, 2019 and 2020. The amounts of unrealized gains (losses) in OCI related to Available-for-sale securities and Long-term debt were ¥7 billion and ¥(8) billion, at September 30, 2020, respectively.

Transfers between levels

During the six months ended September 30, 2019, the transfers into Level 3 included ¥17 billion of Long-term debt. Transfers into Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. During the six months ended September 30, 2019, the transfers out of Level 3 included ¥6 billion of Long-term debt. Transfers out of Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. 

During the six months ended September 30, 2020, the transfers into Level 3 included ¥1 billion of net Derivative assets and  ¥19 billion of Long-term debt. Transfers into Level 3 for net Derivative assets were primarily due to changes in the observability of the inputs used to measure fair value of certain credit-related derivatives. Transfers into Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. During the six months ended September 30, 2020, the transfers out of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Level 3 included ¥1 billion of Trading securities, ¥1 billion of net Derivative liabilities and ¥35 billion of Long-term debt. Transfers out of Level 3 for Trading securities were primarily due to increased price transparency for certain Japanese corporate bonds. Transfers out of Level 3 for net Derivative liabilities were primarily due to changes in the observability of the inputs used to measure fair value of certain credit-related derivatives. Transfers out of Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes.

Quantitative information about Level 3 fair value measurements

The following table presents information about significant unobservable inputs related to the MHFG Group’s material classes of Level 3 assets and liabilities at March 31, 2020 and September 30, 2020:

March 31, 2020
Products/Instruments	Fair value			Principal valuation technique	Unobservable inputs	Range of input values		Weighted average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		41		Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		4% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 52bps
Commercial mortgage-backed securities		615		Discounted cash flow Price-based	Discount margin		7bps - 185bps		22bps
Corporate bonds and other debt securities		1,446		Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		13% - 21% 0% - 2% 10% - 70% 61bps - 1,160bps 5bps - 1,528bps		21% 2% 67% 256bps 58bps
Derivative financial instruments, net:
Interest rate contracts		(5	)	Internal valuation model (3)	IR – IR correlation Default rate (4)		23% - 100% 0% - 63%
Foreign exchange contracts		16		Internal valuation model (3)	FX – IR correlation FX – FX correlation Default rate (4)		-37% - 49% 56% - 65% 0% - 63%
Equity-related contracts		(17	)	Internal valuation model (3)	Equity – IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 13% - 157%
Credit-related contracts		(2	)	Internal valuation model (3)	Default rate Credit correlation		0% - 15% 30% - 100%
Long-term debt		621		Internal valuation model (3)	IR – IR correlation FX – IR correlation FX – FX correlation Equity – IR correlation Equity – FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -37% - 50% 56% - 65% 25% - 25% -33% - 100% 0% - 100% 15% - 157% 0% - 12% 15% - 100%

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(Unaudited)—(Continued)

September 30, 2020
Products/Instruments	Fair value		Principal valuation technique	Unobservable inputs	Range of input values		Average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		36	Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		3% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 50bps
Commercial mortgage-backed securities		641	Discounted cash flow Price-based	Discount margin		6bps - 185bps		21bps
Corporate bonds and other debt securities		1,754	Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		1% - 22% 0% - 3% 10% - 69% 25bps - 173bps 4bps - 696bps		19% 1% 67% 123bps 233bps
Derivative financial instruments, net:
Interest rate contracts		(3)	Internal valuation model (3)	IR - IR correlation		23% - 100%		76%
Foreign exchange contracts		19	Internal valuation model (3)	FX - IR correlation FX - FX correlation		-27% -52% 46% - 63%		28% 55%
Equity-related contracts		(11)	Internal valuation model (3)	Equity - IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 12% - 96%		25% 88% 43%
Credit-related contracts		1	Internal valuation model (3)	Default rate Credit correlation		0% - 7% 35% - 100%		1% 66%
Other contracts		1	Internal valuation model (3)	Commodity volatility		0% - 57%		36%
Long-term debt		638	Internal valuation model (3)	IR - IR correlation FX - IR correlation FX - FX correlation Equity - IR correlation Equity - FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -27% - 52% 46% - 63% 25% - 25% -33% - 100% 0% - 100% 13% - 96% 0% - 6% 18% - 100%		76% 35% 55% 25% -3% 86% 29% 2% 66%

Notes:

(1) These inputs are mainly used for determining the fair values of securitization products such as CDO, CLO and ABS, other than RMBS and CMBS.

(2) This input is mainly used for determining the fair values of Japanese corporate bonds and foreign corporate bonds.

(3) Internal valuation model includes discounted cash flow models and the Black-Scholes option pricing model.

(4) This input represents the counterparty default rate derived from the MHFG Group’s own internal credit analyses.

(5) Averages are calculated by weighting each input by the relative fair value of the respective financial instruments except for derivative related inputs where medians are used.

IR = Interest rate

FX = Foreign exchange

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Uncertainty of fair value measurements relating to unobservable inputs and interrelationships among unobservable inputs

The following is a description of the uncertainty of the fair value measurements from the use of significant unobservable inputs and a description of interrelationships of the significant unobservable inputs used to measure the fair values of Level 3 assets and liabilities.

(1) Prepayment rate

The prepayment rate is the estimated rate at which voluntary unscheduled repayments of the principal of the underlying assets are expected to occur. The movement of the prepayment rate is generally negatively correlated with borrower delinquency. A change in prepayment rate would impact the valuation of the fair values of financial instruments either positively or negatively, depending on the structure of financial instruments.

(2) Default rate

The default rate is an estimate of the likelihood of not collecting contractual payments. An increase in the default rate would generally be accompanied by a decrease in the recovery rate and an increase in the discount margin. It would also generally impact the valuation of the fair values of financial instruments negatively.

(3) Recovery rate

The recovery rate is an estimate of the percentage of contractual payments that would be collected in the event of a default. An increase in recovery rate would generally be accompanied by a decrease in the default rate. It would also generally impact the valuation of the fair values of financial instruments positively.

(4) Discount margin

The discount margin is the portion of the interest rate over a benchmark market interest rate such as LIBOR or swap rates. It primarily consists of a risk premium component which is the amount of compensation that market participants require due to the uncertainty inherent in the financial instruments’ cash flows resulting from credit risk. An increase in discount margin would generally impact the valuation of the fair values of financial instruments negatively.

(5) Correlation

Correlation is the likelihood of the movement of one input relative to another based on an established relationship. The change in correlation would impact the valuation of derivatives either positively or negatively, depending on the nature of the underlying assets.

(6) Volatility

Volatility is a measure of the expected change in variables over a fixed period of time. Some financial instruments benefit from an increase in volatility and others benefit from a decrease in volatility. Generally, for a long position in an option, an increase in volatility would result in an increase in the fair values of financial instruments.

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Items measured at fair value on a nonrecurring basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities primarily include items that are measured at the lower of cost or fair value, and items that were initially measured at cost and have been written down to fair value as a result of impairment. The following table shows the fair value hierarchy for these items as of March 31, 2020 and September 30, 2020:

March 31, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		90		—		—		90		136
Loans held-for-sale		26		—		20		6		26
Equity securities (without readily determinable fair values)		2		—		—		2		2
Premises and equipment-net		1		—		1		—		12
Other assets		—		—		—		—		3
Goodwill		—		—		—		—		2
Total assets measured at fair value on a nonrecurring basis		119		—		21		98		181
September 30, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		131		—		2		129		200
Loans held-for-sale		17		—		11		6		18
Equity securities (without readily determinable fair values)		1		—		—		1		2
Other investments		52		31		—		21		59
Premises and equipment-net		—		—		—		—		1
Total assets measured at fair value on a nonrecurring basis		201		31		13		157		280

Note: The fair values may not be current as of the dates indicated, but rather as of the date the fair value change occurred. Accordingly, the carrying values may not equal current fair value.

Loans in the table above became nonaccrual and are measured based upon the observable market price of the loan or the fair value of the underlying collateral. 

Loans held-for-sale in the table above are accounted for at the lower of cost or fair value at the end of the period. The items for which fair values are determined by using actual or contractually determined selling price data are classified as Level 2. Due to the lack of current observable market information, the determination of the fair values for items other than the aforementioned requires significant adjustment based upon management judgment and estimation, which results in such items being classified in Level 3 of the hierarchy.

Equity securities (without readily determinable fair values) in the table above consist of non-marketable equity securities which are measured at fair value on a nonrecurring basis, using the measurement alternative for non-marketable equity securities. These equity securities are on a nonrecurring basis either (1) written down to fair value as a result of impairment or (2) adjusted upward or downward to fair value as a result of transactions observed for the identical or similar securities of the same issuer. The fair values of the impaired non-marketable equity securities are determined primarily by using a liquidation value technique. As significant management 

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judgment or estimation is required in the determination of the fair values of non-marketable equity securities, they are classified as Level 3. 

Other investments in the table above include certain equity method investments which have been impaired and written down to fair value. The fair values of the impaired marketable equity method investments are determined by their quoted market prices. As the securities are traded on an active exchange market, they are classified as Level 1. The fair values of the impaired non-marketable equity method investments are determined primarily by using a discounted cash flow model. As significant management judgment or estimation is required in the determination of the fair values of non-marketable equity method investments, they are classified as Level 3. There were no other investments measured at fair value on a nonrecurring basis as of March 31, 2020. 

Premises and equipment–net and Other assets in the table above have been impaired and written down to fair value. 

Goodwill in the table above is due to the decline in the fair value of the reporting unit, the carrying amount of the goodwill was reduced to its fair value. There was no goodwill measured at fair value on a nonrecurring basis as of September 30, 2020. 

Fair value option

The MHFG Group elected the fair value option for certain eligible financial instruments described below.

Foreign currency denominated debt securities

The MHFG Group elected the fair value option for foreign currency denominated debt securities to mitigate the volatility in earnings due to the difference in the recognition of foreign exchange risk between foreign currency denominated debt securities and financial liabilities. Following the election of the fair value option, these debt securities are reported as trading securities in Trading account assets.

Certain hybrid financial instruments 

The MHFG Group issues structured notes as part of its client-driven activities. Structured notes are debt instruments that contain embedded derivatives. The Group elected the fair value option for certain structured notes to mitigate accounting mismatches and to achieve operational simplifications. In addition, the Group measures certain notes that contain embedded derivatives at fair value under the practicability exception. These notes continue to be reported in Long-term debt and interest on these notes continues to be reported in Interest expense on long-term debt based on the contractual rates. The differences between the aggregate fair value of these notes and the aggregate unpaid principal balance of such instruments were ¥112 billion and ¥61 billion at March 31, 2020 and September 30, 2020, respectively. The net unrealized gains (losses) resulting from changes in fair values of these notes recorded in Other noninterest income (expenses) were of ¥2 billion and ¥17 billion for the six months ended September 30, 2019 and 2020, respectively. Changes in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company’s current credit spreads observable in the bond market.

Fair value of financial instruments

ASC 825, “Financial Instruments” (“ASC 825”), requires the disclosure of the estimated fair value of financial instruments. The fair value of financial instruments is the amount that would be exchanged between willing parties, other than in a forced sale or liquidation. Quoted market prices, if available, are best utilized as estimates of the fair values of financial instruments. However, since no quoted market prices are available for certain financial instruments, fair values for such financial instruments have been estimated based on management’s

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assumptions, discounted cash flow models or other valuation techniques. Such estimation methods are described in more detail below. These estimates could be significantly affected by different sets of assumptions. There are certain limitations to management’s best judgment in estimating fair values of financial instruments and inherent subjectivity involved in estimation methodologies and assumptions used to estimate fair value. Accordingly, the net realizable or liquidation values could be materially different from the estimates presented below.

The following is a description of the valuation methodologies used for estimating the fair value of financial assets and liabilities not carried at fair value on the MHFG Group’s consolidated balance sheets.

Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions

The carrying value of short-term financial assets, such as cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions approximates the fair value of these assets since they generally involve limited losses from credit risk or have short-term maturities with interest rates that approximate market rates.

Investments

The fair value of held-to-maturity securities is determined primarily by using the same procedures and techniques described for trading securities and available-for-sale securities aforementioned in this Note. The fair value of non-marketable equity securities is not readily determinable, nor practicable to estimate, due to the lack of available information. Their carrying amounts of ¥420 billion and ¥402 billion at March 31, 2020 and September 30, 2020, respectively, were not included in the disclosure. 

Loans

Loans have been fair valued based on the type of loan, credit quality, prepayment assumptions and remaining maturity. The fair value of loans is determined based on discounted cash flows using interest rates approximating the MHFG Group’s current rates for similar loans. The fair value of collateral dependent nonaccrual loans is determined based on the fair value of the underlying collateral.

Other financial assets

The carrying value of other financial assets, which primarily consist of accounts receivable from brokers, dealers, and customers for securities transactions, accrued income and collateral provided for derivative transactions, approximates the fair value of these assets since they generally involve limited losses from credit risk or have short-term maturities with interest rates that approximate market rates. The majority of other financial assets is classified as Level 2, and included in the table in Note 6 “Other assets and liabilities.”

Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions

The carrying value of short-term financial liabilities, such as noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions approximates the fair value of these liabilities since they generally have short-term maturities with interest rates that approximate market rates.

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Interest-bearing deposits

The carrying value of demand deposits approximates the fair value since it represents the amount payable on demand at the balance sheet date. The fair value of time deposits and certificates of deposit is primarily estimated based on discounted cash flow analysis using current interest rates for instruments with similar maturities. The carrying value of short-term certificates of deposit approximates the fair value.

Due to trust accounts

The carrying value of due to trust accounts approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates.

Other short-term borrowings

The carrying value of the majority of other short-term borrowings approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates. The fair value of certain borrowings is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s incremental borrowing rates for instruments with similar maturities.

Long-term debt

Long-term debt is fair valued using quoted market prices, if available. Otherwise, the fair value of long-term debt is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s incremental borrowing rates for instruments with similar maturities.

Other financial liabilities

The carrying value of other financial liabilities, which primarily consist of accounts payable to brokers, dealers, and customers for securities transactions, accrued expenses and collateral accepted for derivative transactions, approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates. The majority of other financial liabilities is classified as Level 2, and included in the table in Note 6 “Other assets and liabilities.”

The fair value of certain off-balance-sheet financial instruments, such as commitments to extend credit and commercial letters of credit, was not considered material to the consolidated balance sheets at March 31, 2020 and September 30, 2020.

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The following table shows the carrying amounts and fair values at March 31, 2020 and September 30, 2020, of certain financial instruments, excluding financial instruments which are carried at fair value on a recurring basis and those outside the scope of ASC 825 such as equity method investments as defined in ASC 323, “Investments-Equity Method and Joint Ventures” (“ASC 323”) and lease contracts as defined in ASC 842, “Leases” (“ASC 842”):

	March 31, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		63,755		63,755		1,318		62,437		—
Investments		862		875		493		382		—
Loans, net of allowance (Note)		86,914		88,124		—		—		88,124
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		51,954		51,954		29,812		22,142		—
Interest-bearing deposits		114,653		114,659		58,935		55,724		—
Due to trust accounts		250		250		—		250		—
Other short-term borrowings		4,914		4,914		—		4,914		—
Long-term debt		7,821		7,708		—		6,813		895
	September 30, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		58,623		58,623		42,233		16,390		—
Investments		790		812		491		321		—
Loans, net of allowance (Note)		89,611		90,983		—		—		90,983
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640		53,640		—		53,640		—
Interest-bearing deposits		118,333		118,347		—		118,347		—
Due to trust accounts		564		564		—		564		—
Other short-term borrowings		7,526		7,526		—		7,526		—
Long-term debt		8,266		8,493		—		7,155		1,338

Note: Loans, net of allowance include items measured at fair value on a nonrecurring basis.

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18. Offsetting of financial assets and financial liabilities

Derivatives

The MHFG Group enters into master netting arrangements such as International Swaps and Derivatives Association, Inc. (“ISDA”) or similar agreements with counterparties to manage mainly credit risks associated with counterparty default. If the predetermined events including counterparty default occur, these enforceable master netting arrangements or similar agreements give the Group the right to offset derivative receivables and derivative payables and related financial collateral such as cash and securities with the same counterparty.

Repurchase and resale agreements and securities lending and borrowing transactions

Repurchase and resale agreements and securities lending and borrowing transactions are generally covered by industry standard master repurchase agreements and industry standard master securities lending agreements with netting terms to manage mainly credit risks associated with counterparty default. In the event of default by the counterparty, these agreements with netting terms provide the Group with the right to offset receivables and payables related to such transactions with the same counterparty, and to liquidate the collateral held.

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The following table provides information about the offsetting of financial assets and financial liabilities at March 31, 2020 and September 30, 2020. The table includes derivatives, repurchase and resale agreements, and securities lending and borrowing transactions that are subject to enforceable master netting arrangements or similar agreements irrespective of whether or not they are offset on the Group’s consolidated balance sheets.

								Amounts not offset on the balance sheet (3)
	Gross amounts recognized		Gross amounts offset on the balance sheet		Net amounts presented on the balance sheet (2)			Financial instruments (4)			Cash collateral			Net amounts
	(in billions of yen)
March 31, 2020
Assets (1):
Derivatives		9,819		—		9,819			(7,723	)		(629	)		1,467
Receivables under resale agreements		17,347		—		17,347			(17,197	)		—			150
Receivables under securities borrowing transactions		1,753		—		1,753			(1,709	)		—			44
Total		28,919		—		28,919			(26,629	)		(629	)		1,661
Liabilities (1):
Derivatives		9,220		—		9,220			(7,519	)		(1,215	)		486
Payables under repurchase agreements		17,542		—		17,542			(17,191	)		—			351
Payables under securities lending transactions		626		—		626			(623	)		—			3
Total		27,388		—		27,388			(25,333	)		(1,215	)		840
September 30, 2020
Assets:
Derivatives		8,758		—		8,758	(5)		(6,373	)		(486	)		1,899
Receivables under resale agreements		12,666		—		12,666	(6)		(11,479	)		—			1,187
Receivables under securities borrowing transactions		2,186		—		2,186	(7)		(1,846	)		—			340
Total		23,610		—		23,610			(19,698	)		(486	)		3,426
Liabilities:
Derivatives		8,251		—		8,251	(5)		(6,148	)		(930	)		1,173
Payables under repurchase agreements		19,326		—		19,326	(6)		(18,038	)		—			1,288
Payables under securities lending transactions		1,476		—		1,476	(7)		(1,235	)		—			241
Total		29,053		—		29,053			(25,421	)		(930	)		2,702

Notes:

(1) Amounts relating to master netting arrangements or similar agreements where the MHFG Group does not have the legal right of set-off or where uncertainty exists as to the enforceability of these agreements are excluded. For derivatives, the table includes amounts relating to over-the-counter (“OTC”) and OTC-cleared derivatives that are subject to enforceable master netting arrangements or similar agreements.

(2) Derivative assets and liabilities are recorded in Trading account assets and Trading account liabilities, respectively.

(3) Amounts do not exceed the net amounts presented on the balance sheet and do not include the effect of overcollateralization, where it exists.

(4) For derivatives, amounts include derivative assets or liabilities and securities collateral that are eligible for offsetting under enforceable master netting arrangements or similar agreements.

(5) The amounts of derivative assets and liabilities subject to enforceable master netting arrangements or similar agreements at September 30, 2020 were ¥8,154 billion and ¥7,528 billion, respectively.

(6) The amounts of Receivables under resale agreements and Payables under repurchase agreements subject to enforceable

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industry standard master repurchase agreements with netting terms at September 30, 2020 were ¥11,490 billion and ¥18,755 billion, respectively.

(7) The amounts of Receivables under securities borrowing transactions and Payables under securities lending transactions subject to enforceable industry standard master lending agreements with netting terms at September 30, 2020 were ¥1,915 billion and ¥1,243 billion, respectively.

19. Repurchase agreements and securities lending transactions accounted for as secured borrowings

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by remaining contractual maturity at March 31, 2020 and September 30, 2020:

	Overnight and continuous		Up to 30 days		31-90 days		Greater than 90 days		Total
	(in billions of yen)
March 31, 2020
Repurchase agreements		6,357		5,467		4,867		1,280		17,971
Securities lending transactions		877		231		—		316		1,424
Total		7,234		5,698		4,867		1,596		19,395
September 30, 2020
Repurchase agreements		10,154		3,684		3,162		2,326		19,326
Securities lending transactions		798		298		50		330		1,476
Total		10,952		3,982		3,212		2,656		20,802

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by class of underlying collateral at March 31, 2020 and September 30, 2020:

	Repurchase agreements		Securities lending transactions
	(in billions of yen)
March 31, 2020
Japanese government bonds and Japanese local government bonds		1,790		269
Foreign government bonds and foreign agency mortgage-backed securities		15,218		359
Commercial paper and corporate bonds		273		50
Equity securities		542		730
Other		148		16
Total (Note)		17,971		1,424
September 30, 2020
Japanese government bonds and Japanese local government bonds		3,355		372
Foreign government bonds and foreign agency mortgage-backed securities		15,100		368
Commercial paper and corporate bonds		209		53
Equity securities		579		668
Other		83		15
Total (Note)		19,326		1,476

Note: Amounts exceeded the gross amounts recognized in Note 18 “Offsetting of financial assets and financial liabilities” by ¥1,227 billion and ¥804 billion, at March 31, 2020 and September 30, 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

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(Unaudited)—(Continued)

The MHFG Group is required to post securities as collateral with a fair value equal to or in excess of the principal amount of the cash borrowed under repurchase agreements. For securities lending transactions, the Group receives collateral in the form of cash. These contracts involve risks, including (1) the counterparty may

fail to return the securities at maturity and (2) the fair value of the securities posted may decline below the amount of the Group’s obligation and therefore the counterparty may require additional amounts. The Group attempts to mitigate these risks by entering into transactions mainly with central counterparty clearing houses which revalue assets and perform margin maintenance activities on a regular basis, diversifying the maturities and counterparties, and using mainly highly liquid securities.

The amounts or composition of assets pledged as collateral for borrowings and for other purposes have not changed significantly since March 31, 2020, except for loans. Loans pledged as collateral at September 30, 2020 and March 31, 2020 accounted for approximately 5% and 2% of total assets, respectively. See Note 8 “Pledged assets and collateral” to the consolidated financial statements in our annual report on Form 20-F for the year ended March 31, 2020 for additional information.

20. Business segment information

The MHFG Group consists of the following five in-house companies which are categorized 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. These customer segments are regarded as operating segments and constitute reportable segments.

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

Retail & Business Banking Company

This company provides financial services for individual customers, small and medium-sized enterprises and middle market firms in Japan.

Corporate & Institutional Company

This company provides financial services for large corporations, financial institutions and public corporations in Japan.

Global Corporate Company

This company provides financial services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers.

Global Markets Company

This company invests in financial products with market risk, such as interest rate risk, equity risk, and credit risk.

Asset Management Company

This company develops financial products and provides financial 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

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performance of each of the operating segments in accordance with internal managerial accounting rules and practices. In addition, the format and information are presented primarily on the basis of Japanese GAAP. Therefore, they are not consistent with the consolidated financial statements prepared in accordance with U.S. GAAP. A reconciliation is provided for the total amount of all business segments’ “Net business profits (losses) + Net gains (losses) related to ETFs and others” with income before income tax expense under U.S. GAAP, and the total amount of all business segments’ “Fixed assets” with the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets reported under U.S. GAAP. “Fixed assets” pertaining to MHBK, MHTB, and MHSC have been allocated to each segment.

	MHFG (Consolidated)
Six months ended September 30, 2019 (1)	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		322.0			220.2		203.9		235.0		25.5		16.2			1,022.8
General and administrative expenses (3)		330.7			104.0		118.6		101.4		16.4		17.3			688.4
Equity in earnings (losses) of equity method investees—net		6.4			1.1		6.0		—		0.5		5.0			19.0
Amortization of goodwill and others		1.4			0.1		0.2		0.5		3.9		0.5			6.6
Others		—			—		—		—		—		(5.9	)		(5.9	)
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(3.7	)		117.2		91.1		133.1		5.7		(2.5	)		340.9
Fixed assets (5)		508.2			208.4		160.1		92.8		0.1		732.0			1,701.6

	MHFG (Consolidated)
Six months ended September 30, 2020	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		307.4			234.2		222.6		291.5		23.6		14.0			1,093.3
General and administrative expenses (3)		315.0			104.6		121.4		105.6		15.7		17.0			679.3
Equity in earnings (losses) of equity method investees—net		3.6			2.4		5.8		—		0.4		(0.7	)		11.5
Amortization of goodwill and others		1.1			0.1		0.2		0.4		3.8		0.5			6.1
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(5.1	)		131.9		106.8		185.5		4.5		(4.2	)		419.4
Fixed assets (5)		518.5			186.3		157.0		90.9		0.1		768.5			1,721.3

Notes:

(1) Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

F-72

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

(2) “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by MHBK and MHTB on their non-consolidated basis and net gains (losses) on operating investment securities of MHSC on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

(3) “General and administrative expenses” excludes non-allocated gains (losses), net.

(4) Net business profits (losses) is used in Japan as a measure of the profitability of core banking operations, and is defined as gross profits (as defined above) less general and administrative expenses (excluding non-allocated gains (losses), net) plus equity in earnings (losses) of equity method investees-net and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan.

(5) “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

(6) “Others” includes the following items:

• profits and expenses pertaining to consolidated subsidiaries that are not subject to allocation;

• consolidating adjustments, including elimination of internal transaction between each segment;

• equity in earnings (losses) of equity method investees-net that are not subject to allocation; and

• profits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.

F-73

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

Reconciliation

As explained above, the measurement bases of the internal management reporting systems and the income and expenses items included are different from the accompanying consolidated statements of income. Therefore, it is impracticable to present reconciliations of all the business segment’s information, other than net business profits (losses), to the corresponding items in the accompanying consolidated statements of income. A reconciliation of “Net business profits (losses) + Net gains (losses) related to ETFs and others” for the six months ended September 30, 2019 and 2020 presented above to income before income tax expense shown on the consolidated statements of income and a reconciliation of “Fixed assets” at September 30, 2019 and 2020 to the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets are as follows:

	Six months ended September 30,
	2019			2020
	(in billions of yen)
Net business profits (losses) + Net gains (losses) related to ETFs and others		340.9			419.4
Adjustment to reconcile management reporting to Japanese GAAP:
General and administrative expenses: non-allocated gains (losses), net		24.5			4.1
Expenses related to portfolio problems (including reversal of (provision for) general reserve for losses on loans)		(19.1	)		(84.8	)
Gains on reversal of reserves for possible losses on loans, and others		7.9			3.6
Net gains (losses) related to stocks—Net gains (losses) related to ETFs and others		55.4			(50.5	)
Net extraordinary gains (losses)		(5.0	)		65.8
Others		(13.1	)		(24.2	)
Income before income tax expense under Japanese GAAP		391.5			333.4
Adjustment to reconcile Japanese GAAP to U.S. GAAP:
Derivative financial instruments and hedging activities		105.0			(12.9	)
Investments		(163.9	)		285.4
Loans		—			(10.8	)
Allowances for credit losses (1)		0.5			35.8
Premises and equipment		(51.5	)		(37.1	)
Land revaluation		0.5			2.7
Business combinations		4.1			(4.3	)
Pension liabilities		(27.3	)		(84.5	)
Consolidation of variable interest entities		40.3			36.6
Foreign currency translation		14.3			(0.2	)
Others		(3.0	)		3.7
Income before income tax expense under U.S. GAAP		310.5			547.8

F-74

MIZUHO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)—(Continued)

	As of September 30,
	2019		2020
	(in billions of yen)
Fixed assets		1,701.6		1,721.3
U.S. GAAP adjustments (2)		964.5		818.4
Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets		2,666.1		2,539.7

Notes:

(1) The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020. Allowances for credit losses for the six months ended September 30, 2020 substitute allowances for loan losses and off-balance-sheet instruments for the six months ended September 30, 2019. See Note 2 “Issued accounting pronouncements” for further details.

(2) The U.S. GAAP adjustments are primarily comprised of GAAP differences mainly from right-of-use assets related to operating leases not recognized under Japanese GAAP; internally developed software, which was impaired under Japanese GAAP; land, which was revalued under Japanese GAAP; and the consolidation of certain variable interest entities, which are not consolidated under Japanese GAAP.

21. Subsequent events

Share consolidation of MHFG’s common stock

On June 25, 2020, a 1-for-10 share consolidation was approved at the Ordinary General Meeting of Shareholders. It became effective on October 1, 2020 based on the shares owned by the shareholders recorded in the shareholder register as of September 30, 2020. For additional information, see Note 1 “Basis of presentation.”

Transition from defined benefit pension plan to defined contribution pension plan

MHFG and certain domestic subsidiaries changed their defined benefit pension plans including partial transition from the defined benefit pension plans to the defined contribution pension plans, effective as of October 1, 2020. This partial transition constitutes a settlement under ASC 715 and any gain or loss is required to be recognized in the consolidated results of operations once settlement criteria are met. As a result of the settlement, the benefit obligations and the plan assets decreased by ¥22 billion and ¥24 billion, respectively.

F-75

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

Mizuho Financial Group, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of Mizuho Financial Group, Inc. and subsidiaries (the “Company”) as of September 30, 2020, the related consolidated statements of income, comprehensive income, equity and cash flows for the six-month periods ended September 30, 2020 and 2019, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of the Company as of March 31, 2020, the related consolidated statements of income, comprehensive income, equity and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated July 2, 2020, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of March 31, 2020, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These consolidated interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young ShinNihon LLC

Tokyo, Japan

December 28, 2020

F-76

XML

Cover Page	6 Months Ended
	Sep. 30, 2020
Document Information [Line Items]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Registrant Name	MIZUHO FINANCIAL GROUP INC
Entity Central Index Key	0001335730
Current Fiscal Year End Date	--03-31

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CONSOLIDATED BALANCE SHEETS - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Assets:
Cash and due from banks		¥ 1,648,974	¥ 2,325,139
Interest-bearing deposits in other banks		41,588,074	39,625,975
Call loans and funds sold		534,345	1,006,991
Receivables under resale agreements		12,666,088	18,580,919
Receivables under securities borrowing transactions		2,185,575	2,216,059
Trading account assets		29,467,045	28,092,871
Investments (Note 3):
Available-for-sale securities (including assets pledged that secured parties are permitted to sell or repledge of ¥1,036,534 million at March 31, 2020 and ¥1,542,200 million at September 30, 2020), net of allowance		26,546,800	19,112,952
Held-to-maturity securities (including assets pledged that secured parties are permitted to sell or repledge of ¥297,240 million at March 31, 2020 and ¥308,448 million at September 30, 2020)	[1],[2]	789,978	862,031
Equity securities (including assets pledged that secured parties are permitted to sell or repledge of ¥92,806 million at September 30,2020)		3,501,678	3,256,717
Other investments		467,963	443,951
Loans (Notes 4 and 5)		90,475,747	87,528,088
Allowance for credit losses on loans		(622,526)	(440,855)
Loans, net of allowance		89,853,221	87,087,233
Premises and equipment—net		1,800,234	1,856,248
Due from customers on acceptances		181,435	167,764
Accrued income		284,667	323,632
Goodwill		92,695	92,997
Intangible assets		60,377	64,689
Deferred tax assets		61,233	136,713
Other assets (Note 6)		5,864,238	5,965,879
Total assets		217,594,620	211,218,760
Liabilities and equity:
Noninterest-bearing deposits		28,974,310	28,109,943
Interest-bearing deposits		90,386,518	86,651,036
Noninterest-bearing deposits		1,960,284	2,186,203
Interest-bearing deposits		27,946,322	28,001,485
Due to trust accounts		563,543	249,737
Call money and funds purchased		1,903,686	2,263,076
Payables under repurchase agreements (Note 19)		19,326,143	17,970,662
Payables under securities lending transactions (Note 19)		1,475,850	1,423,638
Other short-term borrowings		7,526,025	4,914,485
Trading account liabilities		10,590,312	12,416,785
Bank acceptances outstanding		181,435	167,764
Income taxes payable		55,659	68,557
Deferred tax liabilities		36,967	25,874
Accrued expenses		178,849	249,344
Long-term debt		11,049,044	10,346,152
Other liabilities (Note 6)		6,299,620	6,998,395
Total		208,454,567	202,043,136
Commitments and contingencies (Note 14)
MHFG shareholders' equity:
Common stock (Note 7)-no par value, authorized 4,800,000,000 shares at March 31, 2020 and September 30, 2020, and issued 2,539,249,894 shares at March 31, 2020 and September 30, 2020		5,826,427	5,827,500
Retained earnings		2,796,736	2,700,774
Accumulated other comprehensive income(loss), net of tax (Note 8)		133,837	(9,494)
Less: Treasury stock, at cost-Common stock 3,210,681 shares at March 31, 2020, and 3,868,308 shares at September 30, 2020		(7,024)	(6,415)
Total MHFG shareholders' equity		8,749,976	8,512,365
Noncontrolling interests		390,077	663,259
Total equity		9,140,053	9,175,624
Total liabilities and equity		217,594,620	211,218,760
Consolidated VIEs
Assets:
Cash and due from banks		1,592	8,749
Interest-bearing deposits in other banks		74,205	61,439
Call loans and funds sold		291,078	422,304
Trading account assets		2,386,317	2,438,607
Investments (Note 3):
Investments		80,226	62,262
Loans, net of allowance		7,682,432	2,285,831
Other assets (Note 6)		519,169	535,954
Total assets		11,035,019	5,815,146
Liabilities and equity:
Payables under securities lending transactions (Note 19)		57,257	138,094
Other short-term borrowings		43,440	60,086
Trading account liabilities		24,317	34,205
Long-term debt		540,123	330,863
Other liabilities (Note 6)		911,992	948,715
Total		¥ 1,577,129	¥ 1,511,963

[1] Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

[2] Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Trading account assets, assets pledged that secured parties are permitted to sell or repledge	¥ 7,696,203	¥ 4,978,497
Available-for-sale securities, assets pledged that secured parties are permitted to sell or repledge	1,542,200	1,036,534
Held-to-maturity securities, assets pledged that secured parties are permitted to sell or repledge	308,448	297,240
Long-term debt, liabilities accounted for at fair value	¥ 2,802,428	¥ 2,537,082
Common stock, par value	¥ 0	¥ 0
Common stock, authorized	4,800,000,000	4,800,000,000
Common stock, issued	2,539,249,894	2,539,249,894
Treasury stock, shares	3,868,308	3,210,681
Equity securities, assets pledged that secured parties are permitted to sell or repledge	¥ 92,806

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CONSOLIDATED STATEMENTS OF INCOME - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income:
Loans, including fees		¥ 541,675	¥ 719,443
Investments:
Interest		31,236	52,249
Dividends		24,875	36,109
Trading account assets		127,785	108,881
Call loans and funds sold		1,270	2,963
Receivables under resale agreements and securities borrowing transactions		22,894	150,728
Deposits in other banks		22,111	56,981
Total interest and dividend income		771,846	1,127,354
Interest expense:
Deposits		110,839	335,290
Trading account liabilities		28,208	28,794
Call money and funds purchased		1,282	4,771
Payables under repurchase agreements and securities lending transactions		33,267	197,410
Other short-term borrowings		11,988	15,855
Long-term debt		85,593	98,502
Total interest expense		271,177	680,622
Net interest income		500,669	446,732
Provision (credit) for credit losses (Notes 3 and 5)		60,633	13,773
Net interest income after provision (credit) for credit losses		440,036	432,959
Noninterest income (Note 16):
Fee and commission income		428,317	403,992
Foreign exchange gains (losses)—net	[1]	22,785	27,923
Trading account gains (losses)—net	[2]	257,591	395,405
Investment gains (losses)—net:
Debt securities	[1]	46	31,092
Equity securities	[1]	266,119	(126,648)
Equity in earnings (losses) of equity method investees—net	[1]	5,788	22,066
Gains on disposal of premises and equipment	[1]	6,849	1,693
Other noninterest income	[2],[3]	23,715	34,839
Total noninterest income		1,011,210	790,362
Noninterest expenses:
Salaries and employee benefits		346,150	334,041
General and administrative expenses		299,350	314,840
Occupancy expenses		93,314	103,693
Fee and commission expenses		93,016	101,175
Provision (credit) for credit losses on off-balance-sheet instruments		(7,391)	(8,248)
Other noninterest expenses		78,966	67,364
Total noninterest expenses		903,405	912,865
Income before income tax expense		547,841	310,456
Income tax expense (Note 11)		137,761	83,120
Net income	[4]	410,080	227,336
Less: Net income attributable to noncontrolling interests		94,194	14,352
Net income attributable to MHFG shareholders		¥ 315,886	¥ 212,984
Earnings per common share (Note 10):
Basic net income per common share		¥ 124.50	¥ 83.96
Diluted net income per common share	[5]	124.49	83.95
Dividends per common share		¥ 37.50	¥ 37.50

[1] These amounts are revenues from contracts that do not meet the scope of ASC 606.

[2] Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

[3] These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

[4] The amounts that have been reclassified out of Accumulated other comprehensive income (loss), net of tax into net income are presented in Note 8 “Accumulated other comprehensive income (loss), net of tax”.

[5] For the six months ended September 30, 2020, the performance-based plan under the stock compensation programs could potentially dilute earnings per common share but were not included in the computation of diluted earnings per common share due to their antidilutive effects.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Net income	[1]	¥ 410,080	¥ 227,336
Other comprehensive income (loss), net of tax		142,550	(56,583)
Total comprehensive income		552,630	170,753
Less: Total comprehensive income attributable to noncontrolling interests		93,413	14,023
Total comprehensive income attributable to MHFG shareholders		¥ 459,217	¥ 156,730

[1] The amounts that have been reclassified out of Accumulated other comprehensive income (loss), net of tax into net income are presented in Note 8 “Accumulated other comprehensive income (loss), net of tax”.

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CONSOLIDATED STATEMENTS OF EQUITY - JPY (¥) ¥ in Millions	Total	Common Stock	Retained Earnings	Retained Earnings Cumulative effect of change in accounting principles	Retained Earnings Cumulative effect, period of adoption, adjusted balance	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) Cumulative effect of change in accounting principles		Accumulated other comprehensive income (loss) Cumulative effect, period of adoption, adjusted balance	Treasury Stock	Parent	Noncontrolling Interest
Balance at beginning of period at Mar. 31, 2019		¥ 5,829,657	¥ 2,740,545	¥ 1,052	¥ 2,741,597	¥ 164,021	¥ (1,052)	[1]	¥ 162,969	¥ (7,704)		¥ 774,974
Purchases of treasury stock										(1,851)
Performance-based stock compensation program		(806)
Disposal of treasury stock										2,745
Net income attributable to MHFG shareholders	¥ 212,984		212,984
Change during period	(56,583)					(56,254)
Other		(896)	(611)
Transactions between the MHFG Group and the noncontrolling interest shareholders												(79,439)
Dividends paid to noncontrolling interests												(9,618)
Dividends declared			(95,197)
Net income attributable to noncontrolling interests	(14,352)											14,352
Other												(329)
Balance at end of fiscal year at Sep. 30, 2019	9,486,573	5,827,955	2,858,773			106,715				(6,810)	¥ 8,786,633	699,940
Balance at beginning of period at Mar. 31, 2020	9,175,624	5,827,500	2,700,774	¥ (124,636)	¥ 2,576,138	(9,494)	¥ 0		¥ (9,494)	(6,415)		663,259
Purchases of treasury stock										(1,995)
Performance-based stock compensation program		(553)
Disposal of treasury stock										1,386
Net income attributable to MHFG shareholders	315,886		315,886
Change during period	142,550					143,331
Other		(520)	(80)
Transactions between the MHFG Group and the noncontrolling interest shareholders												(356,311)
Dividends paid to noncontrolling interests												(10,284)
Dividends declared			(95,208)
Net income attributable to noncontrolling interests	(94,194)											94,194
Other												(781)
Balance at end of fiscal year at Sep. 30, 2020	¥ 9,140,053	¥ 5,826,427	¥ 2,796,736			¥ 133,837				¥ (7,024)	¥ 8,749,976	¥ 390,077

[1] The MHFG Group adopted ASU No.2017-12, “Derivatives and Hedging (Topic 815)—Targeted Improvements to Accounting for Hedging Activities” (“ASU No.2017-12”) on April 1, 2019 and the ASU No.2017-12 eliminated the separate measurement and reporting of hedge ineffectiveness. Cumulative-effect adjustment to the consolidated balance sheets was recognized upon adoption.

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CONSOLIDATED STATEMENTS OF CASH FLOWS - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	[1]	¥ 410,080	¥ 227,336
Less: Net income attributable to noncontrolling interests		94,194	14,352
Net income attributable to MHFG shareholders		315,886	212,984
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		115,614	120,369
Provision (credit) for credit losses		60,633	13,773
Investment losses (gains)—net		(266,165)	95,556
Equity in losses (earnings) of equity method investees—net	[2]	(5,788)	(22,066)
Foreign exchange losses (gains)—net		(92,865)	(172,215)
Deferred income tax expense (benefit)		57,807	(5,317)
Net change in trading account assets		(1,784,129)	(3,753,226)
Net change in trading account liabilities		(1,874,766)	2,138,290
Net change in loans held for sale		18,781	17,427
Net change in accrued income		34,404	24,548
Net change in accrued expenses		(80,875)	(5,248)
Other—net		(159,507)	122,946
Net cash used in operating activities		(3,660,970)	(1,212,179)
Cash flows from investing activities:
Proceeds from sales of Available-for-sale securities		13,363,620	15,661,178
Proceeds from sales of Equity securities	[3]	1,413,300	1,177,962
Proceeds from maturities of Available-for-sale securities		12,719,308	8,454,526
Proceeds from maturities of Held-to-maturity securities		60,947	525,912
Purchases of Available-for-sale securities		(33,753,387)	(24,330,083)
Purchases of Equity securities	[3]	(1,383,195)	(1,209,953)
Proceeds from sales of loans		832,515	878,108
Net change in loans		(3,944,882)	(3,054,528)
Net change in call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		6,141,641	(2,127,069)
Proceeds from sales of premises and equipment		12,856	8,748
Purchases of premises and equipment		(73,768)	(81,427)
Proceeds from sales of investments in subsidiaries (affecting the scope of consolidation)		25,190
Net cash used in investing activities		(4,585,855)	(4,096,626)
Cash flows from financing activities:
Net change in deposits		4,513,597	2,848,039
Net change in call money and funds purchased, and payables under repurchase agreements and securities lending transactions		1,490,083	2,549,230
Net change in due to trust accounts		313,806	7,619
Net change in other short-term borrowings		2,628,438	(358,650)
Proceeds from issuance of long-term debt		1,270,809	1,223,618
Repayment of long-term debt		(515,802)	(2,195,976)
Proceeds from noncontrolling interests		73,688	33,009
Payments to noncontrolling interests		(3,859)	(105,424)
Proceeds from sales of treasury stock		839	1,515
Purchases of treasury stock		(1,503)	(1,436)
Purchases of treasury stock of subsidiaries		(5,414)
Dividends paid		(95,242)	(95,165)
Dividends paid to noncontrolling interests		(10,284)	(9,618)
Net cash provided by financing activities		9,659,156	3,896,761
Effect of exchange rate changes on cash and cash equivalents		(126,397)	(279,689)
Net increase (decrease) in cash and cash equivalents	[4]	1,285,934	(1,691,733)
Cash and cash equivalents at beginning of period	[4]	41,951,114	45,672,739
Cash and cash equivalents at end of period	[4]	43,237,048	43,981,006
Noncash investing activities:
Transfer of loans into loans held-for-sale		¥ 11,399	¥ 64,996

[1] The amounts that have been reclassified out of Accumulated other comprehensive income (loss), net of tax into net income are presented in Note 8 “Accumulated other comprehensive income (loss), net of tax”.

[2] These amounts are revenues from contracts that do not meet the scope of ASC 606.

[3] Proceeds from sales of Equity securities as well as Purchases of Equity securities include cash activity related to Other investments for the six months ended September 30 2019 and 2020, the amounts of which are not significant.

[4] Cash and cash equivalents consists of Cash and due from banks and Interest-bearing deposits in other banks. Cash deposited with central banks that must be maintained to meet minimum regulatory requirements is classified as restricted cash and included in Cash and cash equivalents.

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Basis of presentation

6 Months Ended

Sep. 30, 2020

Basis of presentation

1. Basis of presentation

Mizuho Financial Group, Inc. (“MHFG”) is a joint stock corporation with limited liability under the laws of Japan. MHFG is a holding company for Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”), Asset Management One Co., Ltd. (“Asset Management One”), and other subsidiaries. MHFG, through its subsidiaries (“the MHFG Group,” or “the Group”), provides domestic and international financial services in Japan and other countries. For a discussion of the Group’s segment information, see Note 20 “Business segment information.” 

MHFG and its domestic subsidiaries as well as its foreign subsidiaries maintain their accounting records in accordance with the accounting standards of Japan and those standards of the countries in which they are domiciled. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform them to the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements are stated in Japanese yen, the currency of the country in which MHFG is incorporated and principally operates.

The accompanying consolidated financial statements include the accounts of MHFG and its subsidiaries. MHFG’s interim financial reporting period ends on September 30. Certain of MHFG’s subsidiaries have different interim financial reporting periods than September 30. For those subsidiaries with interim financial reporting periods within three months of MHFG’s interim financial reporting period, the effect of intervening events that materially affect the financial position or results of operations through the date of each of the periods presented in the MHFG’s consolidated financial statements have been considered for adjustment and/or disclosure. When determining whether to consolidate investee entities, the MHFG Group performs an analysis of the facts and circumstances of the particular relationships between the MHFG Group and the investee entities as well as the ownership of voting shares. The consolidated financial statements also include the accounts of VIEs for which MHFG or its subsidiaries have been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”). All significant intercompany transactions and balances have been eliminated upon consolidation. The MHFG Group accounts for investments in entities over which it has significant influence by using the equity method of accounting. These investments are included in Other investments and the Group’s proportionate share of income or loss is included in Equity in earnings (losses) of equity method investees-net. 

On June 25, 2020, a 1-for-10 share consolidation was approved at the Ordinary General Meeting of Shareholders and it became effective on October 1, 2020. All share and per share information with respect to MHFG’s common stock and preferred stock have been restated to reflect the effect of the share consolidation and related amendments to the articles of incorporation for all periods presented. See Equity on the consolidated balance sheets, Earnings per common share and Dividends per share on the consolidated statements of income, Note 7 “Preferred and common stock,” and Note 10 “Earnings per common share” for the restated figures. In addition, certain other comparative amounts for the prior period have been reclassified in order to conform to the current period’s presentation.

The unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related notes thereto included in the annual financial statements for the fiscal year ended March 31, 2020.

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. GAAP, but is not required for interim reporting purposes, has been condensed or omitted.

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Specific areas, among others, requiring the application of management’s estimates and judgment include assumptions pertaining to the allowance for credit losses, valuation of deferred tax assets, valuation of derivative financial instruments, valuation of investments and valuation of pension and other employee benefits. During times of pandemics and dislocated markets, such as COVID-19, estimates become more sensitive and it is reasonably possible that actual results could differ from estimates and assumptions made. The financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods.

Financial instruments—current expected credit losses (“CECL”)

The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance-sheet instrument exposures. This framework requires management’s estimate to reflect credit losses over the instrument’s remaining expected lives and consider expected future changes in macroeconomic conditions. The following note and Note 2 “Issued accounting pronouncements,” Note 3 “Investments,” Note 4 “Loans” and Note 5 “Allowance for credit losses on loans” provide further information about the impact that the adoption of ASC 326, “Financial Instruments - Credit Losses” (“ASC 326”) had on the MHFG Group.

Allowance for credit losses on loans

Effective April 1, 2020, the allowance for credit losses on loans is established for current expected credit losses on the MHFG Group’s loan portfolio in accordance with ASC 326. Prior to April 1, 2020, the allowance for credit losses on loans was established based on an incurred loss model in accordance with ASC 310, “Receivables” (“ASC 310”) and ASC 450, “Contingencies” (“ASC 450”).

The MHFG Group makes adjustments to the allowance for credit losses on loans through Provision (credit) for credit losses in the consolidated statements of income in each subsequent reporting period. Loan principal that management judges to be uncollectible, based on detailed loan reviews and a credit quality assessment, is charged off against the allowance for credit losses on loans. In general, the Group charges off loans when the Group determines that the obligor should be classified as substantially bankrupt or bankrupt. See Note 4 “Loans” for the definitions of obligor categories. Obligors in the retail portfolio segment are generally determined to be substantially bankrupt when they are past due for more than six months, and as for obligors in the corporate portfolio segment, the Group separately monitors the credit quality of each obligor without using time-based triggers. The Group does not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans.

The MHFG Group maintains an appropriate allowance for credit losses on loans to represent management’s estimate of the expected credit losses in the Group’s loan portfolio. The management evaluates the appropriateness of the allowance for credit losses on loans semi-annually. The allowance considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each instrument is determined by considering expected prepayments, contractual terms and cancellation features.

When determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is based on the Group’s stress testing and in line with the scenario used for the Group’s business plan. If the scenario does not reflect a sudden change in economic conditions adequately, it could be possible to make adjustments to the scenario. After the forecast period, the Group reverts to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives. The macroeconomic scenario is updated at least semi-annually and is reviewed accordingly to reflect current economic conditions and the Group’s expectation of future conditions on a timely basis. For April 1, 2020 and September 30, 2020, the Group used the most recent macroeconomic scenario available during the Group’s credit loss estimation process.

In terms of the internal risk ratings, for the corporate portfolio segment, the credit quality review process and the credit rating process serve as the basis for determining the allowance for credit losses on loans. Through such processes loans are categorized into groups to reflect the probability of default, whereby the MHFG Group’s management assesses the ability of borrowers to service their debt, taking into consideration current financial information, ability to generate cash, historical payment experience, analysis of relevant industry segments and current trends. For the retail portfolio segment, the different categories of past due status of loans are primarily utilized in the credit quality review and the credit rating processes as the basis for determining the allowance for credit losses on loans.

In general, the MHFG Group estimates expected credit losses collectively on the loans in the case of normal and watch obligors, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The allowance for credit losses on nonaccrual loans includes the allowance for groups of loans which were collectively evaluated for expected credit losses, in addition to the allowance for those loans that were individually evaluated for expected credit losses. See Note 4 “Loans” for the definitions of obligor categories and classification of nonaccrual loans.

The estimation of expected credit losses that are evaluated collectively begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one obligor category or rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to the MHFG Group’s estimated exposure at default. The credit loss factors incorporate the probability of default as well as the loss given default based on the historical loss rates and the external ratings such as S&P. The model and inputs used to determine credit losses on loans that are evaluated collectively are analyzed on a periodic basis by comparing the estimated values with the actual results subsequent to the balance sheet date. 

The MHFG Group divides its overall portfolio into domestic and foreign portfolios, and categorizes the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions.

The corporate portfolio segment consists of loans originated primarily by MHBK and MHTB, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. For the corporate portfolio segment, the MHFG Group considers key economic variables such as the Japanese and global gross domestic products and the Japanese interest rates in determining credit loss factors.

The retail portfolio segment consists mainly of residential mortgage loans originated by MHBK, and it is divided into two classes based on their risk characteristics: housing loan and others. For the retail portfolio segment, the Japanese unemployment rate is applied as a key factor. As it pertains to troubled debt restructuring (“TDR”) loans in the retail portfolio segment, which are subject to collective evaluation for expected credit losses, the restructuring itself, as well as subsequent payment defaults, if any, are considered in determining obligor categories. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off, or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. 

The allowance recorded for individually evaluated loans is based on (1) the present value of expected future cash flows, after considering the restructuring effect and subsequent payment default with respect to TDRs, discounted at the loan’s initial effective interest rate, or (2) the loan’s observable market price, or (3) the fair value of the collateral if the loan is collateral dependent. The collateral that the MHFG Group obtains for loans consists primarily of real estate. In obtaining the collateral, the Group evaluates the fair value of the collateral and its legal enforceability. The Group also performs subsequent re-evaluations at least once a year. As it pertains to real estate collateral, valuation is generally performed by an appraising subsidiary which is independent from the Group’s loan origination departments by using generally accepted valuation techniques such as (1) the replacement cost approach, (2) the sales comparison approach or (3) the income approach. In the case of large real estate collateral, the Group generally engages third-party appraisers to perform the valuation. 

The MHFG Group’s methodology for determining the appropriate allowance for credit losses on loans also considers the imprecision inherent in the methodologies used. As a result, the amounts determined under the methodologies described above could be adjusted by management to consider the potential impact of other qualitative factors which include, but are not limited to, imprecision in macroeconomic scenario assumptions and emerging risks related to changes in the environment that are affecting specific portfolio segments. The Group incorporated the estimated impact of COVID-19 pandemic into the macroeconomic scenario by using assumptions such as anticipated business recovery period and current forecast for the growth rate of gross domestic product. This macroeconomic forecast is used to generate an updated credit loss estimate that is the primary driver of the Group’s provision for credit losses for the six months ended September 30, 2020. 

Allowance for credit losses on off-balance-sheet instruments

The MHFG Group maintains the allowance for credit losses on off-balance-sheet instruments, such as guarantees and standby letters of credit in the same manner as the allowance for credit losses on loans. The Group similarly assesses the expected credit loss amounts for commitments to invest in securities and commitments to extend credit, taking into account the probability of drawdowns. The allowance is recorded in Other liabilities. Net changes in the allowance for credit losses on off-balance-sheet instruments are accounted for in Provision (credit) for credit losses on off-balance-sheet instruments in the consolidated statements of income.

Allowance for credit losses on available-for-sale securities

The MHFG Group performs periodic reviews to identify impaired securities in accordance with ASC 326. Available-for-sale securities are impaired if the fair value is less than the amortized cost (excluding accrued interest receivable). For available-for-sale debt securities, in the cases where the Group has the intent to sell an available-for-sale debt security or more likely than not will be required to sell an available-for-sale debt security before the recovery of its amortized cost basis, the entire difference between amortized cost basis and fair value

is recognized immediately through earnings. In other cases, the Group evaluates expected cash flows to be received and determines if a credit loss exists, and if so, the amount of the credit loss is recognized in Provision (credit) for credit losses, while the remaining decline in fair value is recognized in other comprehensive income, net of applicable taxes. The Group generally does not record an allowance for credit losses for accrued interest receivables related to available-for-sale securities because these receivables are reversed through interest income, consistent with the Group’s past due policies. For additional information, see Note 4 “Loans.” Before the adoption of ASC 326, the previous other-than-temporary impairment model was applied for available-for-sale debt securities.

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Issued accounting pronouncements

6 Months Ended

Sep. 30, 2020

Issued accounting pronouncements

2. Issued accounting pronouncements

Adopted accounting pronouncements

In June 2016, the FASB issued ASU No.2016-13, “Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments” (“ASU No.2016-13”). In April 2019, the FASB issued ASU No.2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” (“ASU No.2019-04”). The ASU clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. In May 2019, the FASB issued ASU No.2019-05, “Financial Instruments—Credit Losses (Topic 326) —Targeted Transition Relief” (“ASU No.2019-05”). The ASU provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. In November 2019, the FASB issued ASU No.2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses (Topic 326)” (“ASU No.2019-11”). The ASU clarifies or addresses specific issues about certain aspects of the amendments in ASU No.2016-13, such as expected recoveries for purchased financial assets with credit deterioration and financial assets secured by collateral maintenance provisions. These ASUs replaced the incurred loss impairment methodology in prior U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of information such as relevant information about past events including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount, for the purpose of informing credit loss estimates. These ASUs require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. These ASUs also require that credit losses on available-for-sale debt securities be presented as an allowance for credit losses rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which fair value is below amortized cost. The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020 using a modified retrospective approach. Additionally, as of April 1, 2020, the Group did not elect the fair value option for certain financial assets measured at amortized cost basis. Upon adoption of these ASUs on April 1, 2020, the Group recorded ¥176 billion, or approximately 40% increase to the allowance for credit losses. After adjusting for deferred taxes, ¥125 billion decrease was recorded in Retained earnings through a cumulative-effect adjustment. The increase to the allowance at adoption was primarily related to both corporate and retail portfolio segments where the allowance for loan losses had not previously considered the full term of the loans and forward-looking macroeconomic scenario, including further consideration of potential impact of COVID-19. On the other hand, at April 1, 2020, the adoption of these ASUs did not have a material impact on available-for-sale debt securities, a majority of which consists of Japanese government bonds.

The following table reconciles the closing allowance for loans and off-balance-sheet instruments in accordance with ASC 310 and ASC 450 at March 31, 2020 to the opening allowance determined with ASC 326 at April 1, 2020: 

	At March 31, 2020 (ASC 310/450)		Transition Adjustment		At April 1, 2020 (ASC 326)
	(in billions of yen)
Loans:
Corporate		413		78		491
Retail		28		78		106
Off-balance-sheet instruments		46		20		66

For additional information, see Note 3 “Investments,” Note 4 “Loans” and Note 5 “Allowance for credit losses on loans.” 

In August 2018, the FASB issued ASU No.2018-13, “Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU No.2018-13”). The ASU modifies the disclosure requirements for fair value measurements in order to improve the effectiveness of the notes to financial statements. The amendments require additional disclosure on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty. The MHFG Group adopted ASU No.2018-13 on April 1, 2020. Certain of the requirements are applied prospectively, and other amendments are applied retrospectively. The adoption of ASU No.2018-13 did not have a material impact on disclosures in the Group’s consolidated financial statements.

In August 2018, the FASB issued ASU No.2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)—Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU No.2018-14”). The ASU removes disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The MHFG Group adopted ASU No.2018-14 on April 1, 2020. The requirements are applied retrospectively on the Group’s disclosures for the fiscal year ended March 31, 2020. The adoption of ASU No.2018-14 did not have a material impact on disclosures in the Group’s consolidated financial statements.

In October 2018, the FASB issued ASU No.2018-17, “Consolidation (Topic 810)—Targeted Improvements to Related Party Guidance for Variable Interest Entities” (“ASU No.2018-17”). The ASU requires indirect interests held through related parties in common control arrangements to be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The MHFG Group adopted ASU No.2018-17 on April 1, 2020 using a cumulative-effect adjustment to Retained earnings as of April 1, 2020. The adoption of ASU No.2018-17 did not have a material impact on the Group’s consolidated results of operations or financial condition.

In March 2020, the FASB issued ASU No.2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No.2020-04”). The ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform. The ASU is effective as of March 12, 2020 through December 31, 2022. The MHFG Group has not elected the relief; however, the Group expects to elect the relief prior to December 31, 2022 and is currently evaluating the potential impact that the relief will have on its consolidated results of operations or financial condition.

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Investments

6 Months Ended

Sep. 30, 2020

Investments

3. Investments

Available-for-sale and held-to-maturity securities

The amortized cost, net of allowance for credit losses, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity securities at March 31, 2020 and September 30, 2020 are as follows:

	Amortized cost, net (5)(6)		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		12,651,677		1,319		50,224		12,602,772
Japanese local government bonds		272,412		649		494		272,567
U.S. Treasury bonds and federal agency securities		927,172		7,733		—		934,905
Other foreign government bonds		1,408,009		3,273		202		1,411,080
Agency mortgage-backed securities (1)		494,958		10,490		434		505,014
Residential mortgage-backed securities		83,077		1,405		151		84,331
Commercial mortgage-backed securities		609,559		5,551		106		615,004
Japanese corporate bonds and other debt securities (2)		1,836,540		7,489		8,772		1,835,257
Foreign corporate bonds and other debt securities (3)		849,595		2,595		168		852,022
Total		19,132,999		40,504		60,551		19,112,952
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,936		13,357		—		493,293
Agency mortgage-backed securities (4)		382,095		1,245		1,303		382,037
Total		862,031		14,602		1,303		875,330
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		19,964,553		1,084		45,274		19,920,363
Japanese local government bonds		406,873		757		446		407,184
U.S. Treasury bonds and federal agency securities		625,398		1,388		2		626,784
Other foreign government bonds		1,353,376		3,020		74		1,356,322
Agency mortgage-backed securities (1)		509,808		10,650		433		520,025
Residential mortgage-backed securities		78,883		1,220		123		79,980
Commercial mortgage-backed securities		634,537		6,674		69		641,142
Japanese corporate bonds and other debt securities (2)		2,066,234		12,579		8,785		2,070,028
Foreign corporate bonds and other debt securities (3)		922,752		3,410		1,190		924,972
Total		26,562,414		40,782		56,396		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,947		11,505		—		491,452
Agency mortgage-backed securities (4)		310,031		10,666		—		320,697
Total		789,978		22,171		—		812,149

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

(2) Other debt securities presented in this line primarily consist of Japanese asset-backed securities (“ABS”), of which the total fair values was ¥139,888 million at September 30, 2020.

(3) Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and ABS, of which the total fair values were ¥271,387 million at March 31, 2020, and ¥319,044 million at September 30, 2020.

(4) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

(5) Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

(6) Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

Contractual maturities

The amortized cost, net of allowance for credit losses, and fair value of available-for-sale and held-to-maturity securities at September 30, 2020 are shown in the table below based on their contractual maturities. Expected maturities may differ from contractual maturities because some securities are not due at a single maturity date, and some securities, such as mortgage-backed securities, contain embedded call or prepayment options.

Amortized cost	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,588,119		3,630,141		1,550,745		195,548		19,964,553
Japanese local government bonds		30,537		209,317		149,994		17,025		406,873
U.S. Treasury bonds and federal agency securities		625,398		—		—		—		625,398
Other foreign government bonds		1,024,723		326,539		1,058		1,056		1,353,376
Agency mortgage-backed securities		—		—		—		509,808		509,808
Residential mortgage-backed securities		—		—		—		78,883		78,883
Commercial mortgage-backed securities		6,080		252,315		375,342		800		634,537
Japanese corporate bonds and other debt securities		94,088		820,338		587,344		564,464		2,066,234
Foreign corporate bonds and other debt securities		453,235		343,496		123,123		2,898		922,752
Total		16,822,180		5,582,146		2,787,606		1,370,482		26,562,414
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		479,947		—		—		479,947
Agency mortgage-backed securities		—		—		—		310,031		310,031
Total		—		479,947		—		310,031		789,978
Fair value	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,586,652		3,619,928		1,522,868		190,915		19,920,363
Japanese local government bonds		30,553		209,557		149,982		17,092		407,184
U.S. Treasury bonds and federal agency securities		626,784		—		—		—		626,784
Other foreign government bonds		1,025,928		328,280		1,058		1,056		1,356,322
Agency mortgage-backed securities		—		—		—		520,025		520,025
Residential mortgage-backed securities		—		—		—		79,980		79,980
Commercial mortgage-backed securities		6,085		254,025		380,219		813		641,142
Japanese corporate bonds and other debt securities		94,089		819,848		585,922		570,169		2,070,028
Foreign corporate bonds and other debt securities		454,356		344,474		123,244		2,898		924,972
Total		16,824,447		5,576,112		2,763,293		1,382,948		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		491,452		—		—		491,452
Agency mortgage-backed securities		—		—		—		320,697		320,697
Total		—		491,452		—		320,697		812,149

Credit losses

The other-than-temporary impairment losses on available-for-sale securities for the six months ended September 30, 2019 were not significant. No impairment losses were recognized on held-to-maturity securities for the period. As a result of the adoption of the ASU No.2016-13, 2019-04, 2019-05 and 2019-11, no material allowance for credit losses on available-for-sale securities were recognized at April 1, 2020. The MHFG Group recognized   ¥8 billion of allowance for credit losses on available-for-sale securities at September 30, 2020. The increase was due mainly to an increase of credit losses for certain Japanese corporate bonds and other debt securities. No allowance for credit losses were recognized on held-to-maturity securities at April 1, 2020 and September 30, 2020, respectively because held-to-maturity securities consist of Japanese government bond and agency mortgage-backed securities like Ginnie Mae securities. See Note 1 “Basis of presentation” for further details of the methodology used to determine the allowance for credit losses. 

Continuous unrealized loss position

The following table shows the gross unrealized losses and fair value of available-for-sale and held-to-maturity securities, aggregated by the length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2020 and September 30, 2020:

	Less than 12 months				12 months or more				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		10,339,320		43,204		283,561		7,020		10,622,881		50,224
Japanese local government bonds		162,665		418		34,114		76		196,779		494
U.S. Treasury bonds and federal agency securities		—		—		—		—		—		—
Other foreign government bonds		196,990		202		—		—		196,990		202
Agency mortgage-backed securities (1)		30,913		227		9,504		207		40,417		434
Residential mortgage-backed securities		9,524		62		5,450		89		14,974		151
Commercial mortgage-backed securities		15,115		85		7,478		21		22,593		106
Japanese corporate bonds and other debt securities		669,572		5,507		608,361		3,265		1,277,933		8,772
Foreign corporate bonds and other debt securities		152,058		165		5,564		3		157,622		168
Total		11,576,157		49,870		954,032		10,681		12,530,189		60,551
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		191,244		1,303		191,244		1,303
Total		—		—		191,244		1,303		191,244		1,303
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		9,978,136		23,884		1,234,118		21,390		11,212,254		45,274
Japanese local government bonds		126,991		246		72,086		200		199,077		446
U.S. Treasury bonds and federal agency securities		29,093		2		—		—		29,093		2
Other foreign government bonds		278,022		74		—		—		278,022		74
Agency mortgage-backed securities (1)		30,948		202		9,799		231		40,747		433
Residential mortgage-backed securities		9,567		41		6,794		82		16,361		123
Commercial mortgage-backed securities		6,052		15		11,396		54		17,448		69
Japanese corporate bonds and other debt securities		565,278		3,028		597,714		5,757		1,162,992		8,785
Foreign corporate bonds and other debt securities		245,311		1,187		2,712		3		248,023		1,190
Total		11,269,398		28,679		1,934,619		27,717		13,204,017		56,396
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		—		—		—		—
Total		—		—		—		—		—		—

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese agency mortgage-backed securities, of which the fair values were ¥40,417 million at March 31, 2020, and ¥40,747 million at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise.

(2) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

At September 30, 2020, the MHFG Group did not intend to sell the debt securities in an unrealized loss position and it was not more likely than not that the MHFG Group would be required to sell them before the recovery of their amortized cost bases. For Japanese government bonds and Agency mortgage-backed securities, their entire amortized cost bases were expected to be recovered since the unrealized losses had not resulted from credit deterioration, but primarily from changes in interest rates. For the debt securities other than those described above, except for the securities for which credit losses have been recognized in income, the MHFG Group determined that their entire amortized cost bases were expected to be recovered, after considering various factors such as the extent to which their fair values were below their amortized cost bases, the external and/or internal ratings and the present values of cash flows expected to be collected. Based on the aforementioned evaluation, except for the securities for which credit losses have been recognized in income, the MHFG Group determined that the debt securities in an unrealized loss position were not considered credit losses. 

Realized gains and losses

The following table shows the realized gains and losses on sales of available-for-sale securities for the six months ended September 30, 2019 and 2020. See “Consolidated Statements of Cash Flows (Unaudited)” for the proceeds from sales of investments.

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Gross realized gains		36,183			5,101
Gross realized losses		(6,167	)		(3,694	)
Net realized gains (losses) on sales of available-for-sale securities		30,016			1,407

Equity securities

Equity securities include securities which have readily determinable fair values, securities which qualify for the practical expedient to estimate fair value using the net asset value per share (or its equivalent), and securities which are without readily determinable fair values. Equity securities which have readily determinable fair values mainly consist of common stock of Japanese listed companies. Equity securities without readily determinable fair values include non-marketable stock including preferred stock issued by equity method investees.

Net gains and losses

The following table shows the details of the net gains and losses on Equity securities for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net gains (losses) recognized during the period on equity securities		(126,648	)		266,119
Less: Net gains (losses) recognized during the period on equity securities sold during the period		(3,084	)		34,985
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting period		(123,564	)		231,134

Equity securities without readily determinable fair values

The following table shows carrying amounts of equity securities without readily determinable fair values, for which the measurement alternative is used, and cumulative amounts due to downward adjustments and impairments and upward adjustments, at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Carrying amounts at the end of the period		419,775		402,194
Downward adjustments and impairments		2,435		3,800
Upward adjustments		9,128		9,104

The following table shows amounts recognized in earnings during the period due to downward adjustments and impairments and upward adjustments for equity securities without readily determinable fair values.

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Downward adjustments and impairments		430		1,411
Upward adjustments		6,527		34

The MHFG Group elected to measure all equity securities without readily determinable fair values, which do not qualify for the practical expedient to estimate fair value, using the measurement alternative, which is made on an instrument-by-instrument basis. Under the measurement alternative, equity securities are carried at cost plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar securities of the same issuer. In addition, the MHFG Group assesses whether these equity securities are impaired. Impairment is primarily based on a liquidation value technique that considers the financial condition, credit ratings, and near-term prospects of the issuers. When observable price changes or impairments exist, the securities are adjusted to fair value, with the full difference between the fair value of the security and its carrying amount recognized in earnings.

Other investments

The following table summarizes the composition of Other investments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Equity method investments		404,513		412,281
Investments held by consolidated investment companies		39,438		55,682
Total		443,951		467,963

Equity method investments

Investments in investees over which the MHFG Group has the ability to exert significant influence are accounted for using the equity method of accounting. Such investments included marketable equity securities with carrying values of ¥213,243 million and ¥215,059 million, at March 31, 2020 and September 30, 2020, respectively. The aggregate market values of these marketable equity securities were ¥287,488 million and ¥344,131 million,

respectively. The majority of the aggregate market values of these marketable equity securities include Orient Corporation, the Chiba Kogyo Bank, Ltd., Joint Stock Commercial Bank for Foreign Trade of Vietnam and Mizuho Leasing Company, Limited of which the MHFG Group’s proportionate share of the total outstanding common stock were 49.00%, 16.89%, 15.00% and 23.52%, respectively, as of September 30, 2020. In addition, equity method investments include non-marketable equity securities such as Matthews International Capital Management, LLC and Custody Bank of Japan, Ltd. of which the MHFG Group’s proportionate share of the total outstanding common stock were 16.41% and 27.00%, respectively, as of September 30, 2020.

Investments held by consolidated investment companies

The MHFG Group consolidates certain investment companies over which it has control through either ownership or other means. Investment companies are subject to specialized industry accounting which requires investments to be carried at fair value, with changes in fair value recorded in earnings. The MHFG Group maintains this specialized industry accounting for investments held by consolidated investment companies, which consist of marketable and non-marketable investments.

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Loans

6 Months Ended

Sep. 30, 2020

Loans

4. Loans

The table below presents loans outstanding by domicile and industry of borrower at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Domestic:
Manufacturing		9,731,028		11,700,375
Construction and real estate		9,603,433		10,172,843
Services		5,992,511		6,294,310
Wholesale and retail		5,219,727		5,415,605
Transportation and communications		3,832,884		3,978,708
Banks and other financial institutions		4,634,442		4,719,863
Government and public institutions		2,198,805		2,639,956
Other industries (Note)		5,389,347		5,517,220
Individuals:
Mortgage loans		8,567,099		8,357,042
Other		861,235		798,475
Total domestic		56,030,511		59,594,397
Foreign:
Commercial and industrial		20,818,709		20,190,048
Banks and other financial institutions		10,475,277		10,502,326
Government and public institutions		317,284		308,171
Other		35,388		37,572
Total foreign		31,646,658		31,038,117
Total		87,677,169		90,632,514
Less: Unearned income and deferred loan fees—net		149,081		156,767
Total loans before allowance for credit losses on loans		87,528,088		90,475,747

Note: Other industries of domestic includes trade receivables and lease receivables of consolidated VIEs.

Loans are generally carried at the principal amount adjusted for unearned income and deferred net nonrefundable loan fees and costs. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the loan as an adjustment of yield using a method that approximates the interest method. Interest income on performing loans is accrued and credited to income as it is earned. Unearned income and discounts or premiums on purchased loans are deferred and recognized over the life of the loan using a method that approximates the interest method.

Net losses on sales of loans were ¥179 million and ¥1,178 million, including unrealized losses related to recording loans held for sale at the lower of cost or fair value for the six months ended September 30, 2019 and 2020, respectively. The gains and losses on sales of loans are recorded in Other noninterest income and expenses, respectively.

Credit quality information

In accordance with the MHFG Group’s credit risk management policies, the Group uses an internal rating system that consists of credit ratings for the corporate portfolio segment and pool allocations for the retail portfolio segment as the basis of its risk management infrastructure. Credit ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings which represent the ultimate possibility of losses expected on individual loans by taking into consideration various factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors except those to which pool allocations are applied, and are subject to regular review at least once a year as well as special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied to small loans that are less than a specified amount by pooling customers and loans with similar risk characteristics, and the risk is assessed mainly based on past due status and managed according to such pools. The Group generally reviews the appropriateness and effectiveness of the approach to obligor ratings and pool allocations once a year in accordance with predetermined policies and procedures. See Note 3 “Investments” for the credit losses related to held-to-maturity and available-for-sale debt securities.

The Group does not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans. The amount of accrued interest receivables at September 30, 2020 was ¥82,321 million and included in Accrued income.

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2020 and September 30, 2020:

Obligor category (1)(2)	Obligor rating	Definition
Normal	A	Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is very low.
	B	Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, and their level of credit risk is low.
	C	Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.
	D	Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future economic environmental changes is low.
Watch	E1	Obligors that require observation going forward because of either minor concerns regarding their financial position, or their somewhat weak or unstable business conditions.
	E2	Obligors that require special observation going forward because of problems with their borrowings such as reduced or suspended interest payments, problems with debt fulfillment such as failure to make principal or interest payments, or problems with their financial position as a result of their weak or unstable business conditions.
Intensive control	F	Obligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of insufficient progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions).
Substantially bankrupt	G	Obligors that have not yet become legally or formally bankrupt but are substantially insolvent because they are in serious financial difficulties and are deemed to be incapable of being restructured.
Bankrupt	H	Obligors that have become legally or formally bankrupt.

Notes:

(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual. 

(2) The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans.

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2020 and September 30, 2020:

	September 30, 2020																March 31, 2020
	Term loans by origination year												Revolving Loans		Total		Total
	2020		2019		2018		2017		2016		Prior to 2016
	(in millions of yen)
Domestic:
Corporate:
Large companies:
Normal obligors		9,754,935		7,343,964		7,517,546		2,710,108		2,498,507		2,978,989		8,279,869		41,083,918		37,979,353
Watch obligors excluding special attention obligors		424,745		92,446		82,206		56,363		33,737		33,847		196,544		919,888		840,289
Nonaccrual loans		142,730		55,771		41,249		20,295		11,956		29,551		136,213		437,765		343,439
Small and medium-sized companies:
Normal obligors		381,487		543,822		456,363		260,146		232,638		485,430		502,124		2,862,010		2,941,599
Watch obligors excluding special attention obligors		46,537		32,174		37,116		13,321		15,523		28,933		30,521		204,125		189,075
Nonaccrual loans		58,754		15,624		4,294		5,900		2,636		9,849		28,118		125,175		119,759
Retail:
Housing Loan:
Normal obligors		437,780		668,358		627,669		634,528		783,929		4,879,204		—		8,031,468		8,215,781
Watch obligors excluding special attention obligors		560		1,178		1,827		1,579		2,217		43,397		—		50,758		57,478
Nonaccrual loans		18,941		6,528		1,525		1,432		1,778		38,456		—		68,660		57,696
Others:
Normal obligors		327,506		209,899		152,679		106,359		102,735		361,209		523,640		1,784,027		1,783,779
Watch obligors excluding special attention obligors		36,270		17,587		11,754		6,911		4,534		6,846		12,185		96,087		81,463
Nonaccrual loans		26,633		6,905		1,945		1,000		965		9,532		11,567		58,547		59,782
Sovereign
Normal obligors		1,907,424		264,528		126,868		87,021		92,664		485,721		13,700		2,977,926		2,559,420
Watch obligors excluding special attention obligors		2,859		6,914		2,951		1,134		257		34		—		14,149		10,939
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Banks and other financial institutions
Normal obligors		15,637		155,415		261,601		26,841		85,303		74,009		187,102		805,908		790,659
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—		—
Nonaccrual loans		167		—		180		—		—		—		1,600		1,947		—
Total domestic		13,582,965		9,421,113		9,327,773		3,932,938		3,869,379		9,465,007		9,923,183		59,522,358		56,030,511
Foreign:
Corporate:
Normal obligors		10,181,936		5,813,342		3,419,918		1,298,791		804,580		1,624,422		4,630,806		27,773,795		28,555,991
Watch obligors excluding special attention obligors		172,225		43,785		47,998		37,862		15,899		35,532		84,646		437,947		336,470
Nonaccrual loans		41,085		25,405		12,954		5,422		8,448		21,241		43,592		158,147		135,522
Retail:
Normal obligors		3,613		9,806		6,008		2,956		1,517		2,527		102		26,529		30,862
Watch obligors excluding special attention obligors		174		1,110		647		361		109		11		—		2,412		858
Nonaccrual loans		26		506		287		103		44		1		—		967		6
Sovereign
Normal obligors		91,542		99,248		32,403		149,794		5,907		90,988		81,008		550,890		558,384
Watch obligors excluding special attention obligors		—		—		—		—		—		20,124		—		20,124		19,971
Nonaccrual loans		—		741		—		—		—		—		—		741		—
Banks and other financial institutions
Normal obligors		750,039		654,755		421,876		95,375		4,509		3,536		49,997		1,980,087		2,008,516
Watch obligors excluding special attention obligors		912		152		686		—		—		—		—		1,750		78
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Total foreign		11,241,552		6,648,850		3,942,777		1,590,664		841,013		1,798,382		4,890,151		30,953,389		31,646,658
Total		24,824,517		16,069,963		13,270,550		5,523,602		4,710,392		11,263,389		14,813,334		90,475,747		87,677,169

Notes:

(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual.

(2) The primary component of the retail portfolio segment is housing loans to individuals which obligor category is classified based on past due status. The trigger to reclassify obligors from normal obligors to watch obligors excluding special attention obligors is when the past due status is more than 30 days.

(3) There were no significant revolving line of credit arrangements that converted to term loans during the six months ended September 30, 2020.

Nonaccrual loans

Loans are considered nonaccrual when, based on current information and events, it is probable that the MHFG Group will be unable to collect all the scheduled payments of principal and interest when due according to the contractual terms of the loans. Factors considered by management in determining if a loan is nonaccrual include delinquency status and the ability of the debtor to make payment of the principal and interest when due. The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans. Nonaccrual loans include loans past due for 90 days or more and restructured loans that meet the definition of a TDR in accordance with ASC 310. There are no loans that are ninety days past due and still accruing. The Group does not have any loans to borrowers that cause management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms for the periods presented other than those already designated as nonaccrual loans. The majority of nonaccrual loans have no contractual delinquency due to interest reductions and/or postponement of principal and interest. 

In March 2020, the Coronavirus, Aid, Relief, and Economic Security Act (“the CARES Act”) was approved. The CARES Act and U.S. banking agencies have among other items, provided optional, temporary relief related to accounting for certain TDRs. The temporary TDR relief is available to banks for loan modifications related to obligors who were adversely impacted by COVID-19. As of September 30, 2020, the MHFG Group has elected not to apply the temporary TDR relief provided by the CARES Act and U.S. banking agencies. Additionally, the MHFG Group has elected not to apply any of the other provisions provided by the CARES Act.

With regard to nonaccrual loans, interest accruals and the amortization of net origination fees are suspended and capitalized interest is written off. Cash received on nonaccrual loans is accounted for as a reduction of the loan principal if the ultimate collectibility of the principal amount is in doubt, otherwise, as interest income. Loans are not restored to accrual status until interest and principal payments are current and future payments are reasonably assured. Nonaccrual loans are restored to accrual status, when the MHFG Group determines that the borrower poses no concerns regarding current certainty of debt fulfillment. In general, such determination is made if the borrower qualifies for an obligor rating of E2 or above and is not classified as a special attention obligor. With respect to loans restructured in a TDR, in general, such loans are restored to accrual status, when the borrower qualifies for an obligor rating of D or above. The table below presents nonaccrual loans information at March 31, 2020 and September 30, 2020: 

	Amortized cost
	Nonaccrual loans with an allowance		Nonaccrual loans without an allowance		Total nonaccrual loans		Interest income recognized
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		333,442		9,997		343,439		4,155
Small and medium-sized companies		102,786		16,973		119,759		1,724
Retail:
Housing Loan		28,263		29,433		57,696		937
Others		36,220		23,562		59,782		846
Total domestic		500,711		79,965		580,676		7,662
Foreign:
Total foreign		95,289		40,239		135,528		3,032
Total		596,000		120,204		716,204		10,694
September 30, 2020
Domestic:
Corporate:
Large companies		416,637		21,128		437,765		2,501
Small and medium-sized companies		105,556		19,619		125,175		777
Retail:
Housing Loan		40,358		28,302		68,660		535
Others		36,270		22,277		58,547		373
Banks and other financial institutions		1,947		—		1,947		3
Total domestic		600,768		91,326		692,094		4,189
Foreign:
Total foreign		110,295		49,560		159,855		958
Total		711,063		140,886		851,949		5,147

Notes:

(1) Amounts represent the outstanding balances of nonaccrual loans. The MHFG Group’s policy for placing loans in nonaccrual status corresponds to the Group’s definition of nonaccrual loans.

(2) Amounts represent the amount of interest income on nonaccrual loans recognized on a cash basis and included in Interest income on loans in the consolidated statements of income.

(3) The majority of total foreign consist of corporate.

The remaining balance of nonaccrual loans that have been partially charged off, was ¥20,378 million and ¥32,783 million as of March 31, 2020 and September 30, 2020 respectively.

Troubled debt restructurings

The MHFG Group considers a loan modification to be a TDR when, for economic or legal reasons related to the obligor’s financial difficulties, it grants a concession to the obligor that it would not otherwise consider. The Group considers the relevant obligor to be in financial difficulty generally when its obligor rating is E2 or below.The following table presents modified loans that were determined to be TDRs during the six months ended September 30, 2019 and 2020:

	Loan forgiveness or debt to equity swaps				Interest rate reduction and/or postponement of principal and/or interest
	Recorded investment (1)		Charge-offs
	(in millions of yen)
September 30, 2019
Domestic:
Corporate:
Large companies		689		3,806		152,373
Small and medium-sized companies		—		—		55,344
Retail:
Housing Loan		—		—		3,742
Others		—		—		7,468
Total domestic		689		3,806		218,927
Foreign:
Total foreign		470		4,922		38,646
Total		1,159		8,728		257,573
September 30, 2020
Domestic:
Corporate:
Large companies		—		—		264,952
Small and medium-sized companies		—		—		54,760
Retail:
Housing Loan		—		—		14,690
Others		—		—		9,130
Banks and other financial institutions		—		—		1,600
Total domestic		—		—		345,132
Foreign:
Total foreign		—		—		80,889
Total		—		—		426,021

Notes:

(1) Amounts represent the book values of loans immediately after the restructurings.

(2) The majority of total foreign consist of corporate.

Payment default is deemed to occur when the loan becomes three months past due or the obligor is downgraded to the category of substantially bankrupt or bankrupt. The following table presents payment defaults which occurred during the six months ended September 30, 2019 and 2020 with respect to the loans modified as TDRs within the previous twelve months:

	Recorded investment
	September 30, 2019		September 30, 2020
	(in millions of yen)
Domestic:
Corporate:
Large companies		5,875		2,084
Small and medium-sized companies		2,444		3,861
Retail:
Housing Loan		686		505
Others		1,349		1,104
Total domestic		10,354		7,554
Foreign:
Total foreign		6,436		43,786
Total		16,790		51,340

Age analysis of past due loans

The table below presents an analysis of the age of the amortized cost basis in loans that are past due at March 31, 2020 and September 30, 2020:

	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		2,146		2,013		38,364		42,523		39,120,558		39,163,081
Small and medium-sized companies		2,347		894		9,187		12,428		3,238,005		3,250,433
Retail:
Housing Loan		15,703		10,078		26,690		52,471		8,278,484		8,330,955
Others		6,179		2,013		15,239		23,431		1,901,593		1,925,024
Sovereign		—		—		—		—		2,570,359		2,570,359
Banks and other financial institutions		—		—		—		—		790,659		790,659
Total domestic		26,375		14,998		89,480		130,853		55,899,658		56,030,511
Foreign:
Total foreign		1,214		181		28,722		30,117		31,616,541		31,646,658
Total		27,589		15,179		118,202		160,970		87,516,199		87,677,169
September 30, 2020
Domestic:
Corporate:
Large companies		311		269		38,868		39,448		42,402,123		42,441,571
Small and medium-sized companies		2,093		604		11,226		13,923		3,177,387		3,191,310
Retail:
Housing Loan		15,831		7,870		25,922		49,623		8,101,263		8,150,886
Others		4,720		1,436		14,152		20,308		1,918,353		1,938,661
Sovereign		—		—		—		—		2,992,075		2,992,075
Banks and other financial institutions		—		—		—		—		807,855		807,855
Total domestic		22,955		10,179		90,168		123,302		59,399,056		59,522,358
Foreign:
Total foreign		1,826		636		60,535		62,997		30,890,392		30,953,389
Total		24,781		10,815		150,703		186,299		90,289,448		90,475,747

Note: The majority of total foreign consist of corporate.

Loans held for sale

Loans that have been identified for sale are classified as loans held for sale within Other assets and are accounted for at the lower of cost or fair value. The outstanding balance of loans held for sale was ¥60,084 million and ¥22,404 million at March 31, 2020 and September 30, 2020, respectively.

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Allowance for credit losses on loans

6 Months Ended

Sep. 30, 2020

Allowance for credit losses on loans

5. Allowance for credit losses on loans

The MHFG Group divides its overall portfolio into domestic and foreign portfolios, and categorizes the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions. When management estimates current expected credit losses to determine the allowance for credit losses, small balance, homogeneous loans are classified in the retail portfolio segment, and loans other than these are classified in the corporate portfolio segment. The corporate portfolio segment consists of loans originated primarily by MHBK and MHTB, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment also includes loans of subsidiaries other than MHBK and MHTB, such as consolidated VIEs and overseas subsidiaries. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. The retail portfolio segment consists mainly of residential mortgage loans originated by MHBK, and it is divided into two classes based on their risk characteristics: housing loan and others. See Note 1 “Basis of presentation” for further details of the methodology used to determine the allowance for credit losses on loans and Note 4 “Loans” for further details of obligor ratings and pool allocations.

Changes in Allowance for credit losses on loans by portfolio segment for the six months ended September 30, 2019 and 2020 are shown below:

	Corporate			Retail			Total
	(in millions of yen)
Six months ended September 30, 2019
Balance at beginning of period		277,955			29,246			307,201
Provision (credit) for credit losses on loans		12,268			1,505			13,773
Charge-offs		(25,147	)		(3,887	)		(29,034	)
Recoveries		2,785			1,269			4,054
Net charge-offs		(22,362	)		(2,618	)		(24,980	)
Others (Note)		(4,570	)		(2	)		(4,572	)
Balance at end of period		263,291			28,131			291,422
Six months ended September 30, 2020
Balance at beginning of period		413,026			27,829			440,855
April 1, 2020 adoption of CECL		77,514			78,241			155,755
Adjusted Balance at beginning of period		490,540			106,070			596,610
Provision (credit) for credit losses on loans		64,133			(11,051	)		53,082
Charge-offs		(28,417	)		(3,446	)		(31,863	)
Recoveries		5,260			479			5,739
Net charge-offs		(23,157	)		(2,967	)		(26,124	)
Others (Note)		(997	)		(45	)		(1,042	)
Balance at end of period		530,519			92,007			622,526

Note: Others includes primarily foreign exchange translation.

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Other assets and liabilities

6 Months Ended

Sep. 30, 2020

Other assets and liabilities

6. Other assets and liabilities

The following table sets forth the details of other assets and liabilities at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Other assets:
Accounts receivable:
Receivables from brokers, dealers and customers for securities transactions		783,439		898,924
Other		358,702		416,064
Collateral pledged:
Collateral pledged for derivative transactions		1,246,026		1,079,050
Margins provided for futures contracts		602,039		316,791
Other		941,167		909,155
Prepaid pension cost		711,981		986,767
Right-of-use assets		613,068		586,365
Security deposits		107,294		108,204
Loans held for sale		60,084		22,404
Other		542,079		540,514
Total		5,965,879		5,864,238
Other liabilities:
Accounts payable:
Payables to brokers, dealers and customers for securities transactions		2,161,075		2,065,408
Other		375,127		365,446
Guaranteed trust principal (Note)		824,431		808,172
Lease liabilities		627,250		600,087
Collateral accepted:
Collateral accepted for derivative transactions		846,426		587,426
Margins accepted for futures contracts		797,317		558,138
Unearned income		122,072		120,352
Other		1,244,697		1,194,591
Total		6,998,395		6,299,620

Note: Guaranteed trust principal, included in All other liabilities in the disclosure about consolidated VIEs in the accompanying balance sheets, is a liability of certain consolidated trust arrangements that meet the definition of a VIE for which the MHFG Group provides guarantees for the repayment of principal. See Note 15 “Variable interest entities and securitizations” for further discussion of the guaranteed principal money trusts.

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Preferred and common stock

6 Months Ended

Sep. 30, 2020

Preferred and common stock

7. Preferred and common stock

Preferred stock

The composition of preferred stock at March 31, 2020 and September 30, 2020 is as follows:

Class of stock	March 31, 2020				September 30, 2020
	Authorized		Issued		Authorized		Issued
	(number of shares)
Class XIV preferred stock		90,000,000		—		90,000,000		—
Class XV preferred stock		90,000,000		—		90,000,000		—
Class XVI preferred stock		150,000,000		—		150,000,000		—

Common stock

The number of issued shares of common stock at March 31, 2020 and September 30, 2020 was 2,539,249,894. There was no increase or decrease during the six months ended September 30, 2020.

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Accumulated other comprehensive income (loss), net of tax

6 Months Ended

Sep. 30, 2020

Accumulated other comprehensive income (loss), net of tax

8. Accumulated other comprehensive income (loss), net of tax

Changes in each component of Accumulated other comprehensive income (loss), net of tax (“AOCI”) for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
AOCI, balance at beginning of period, previously reported		164,021			(9,494	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
AOCI, balance at beginning of period, adjusted		162,969			(9,494	)
Net unrealized gains (losses) on available-for-sale securities:
Balance at beginning of period		22,019			(19,592	)
Unrealized holding gains (losses) during period		25,843			644
Less: reclassification adjustments for losses (gains) included in net income		(20,824	)		754
Change during period		5,019			1,398
Balance at end of period		27,038			(18,194	)
Foreign currency translation adjustments:
Balance at beginning of period, previously reported		(58,558	)		(109,872	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
Balance at beginning of period, adjusted		(59,610	)		(109,872	)
Foreign currency translation adjustments during period		(63,466	)		(36,652	)
Less: reclassification adjustments for losses (gains) included in net income		—			(409	)
Change during period		(63,466	)		(37,061	)
Balance at end of period		(123,076	)		(146,933	)
Pension liability adjustments:
Balance at beginning of period		196,446			69,455
Unrealized gains (losses) during period		(1,720	)		190,394
Less: reclassification adjustments for losses (gains) included in net income		(2,130	)		672
Change during period		(3,850	)		191,066
Balance at end of period		192,596			260,521
Own credit risk adjustments:
Balance at beginning of period		4,114			50,515
Unrealized gains (losses) during period		7,320			(9,340	)
Less: reclassification adjustments for losses (gains) included in net income		(1,277	)		(2,732	)
Change during period		6,043			(12,072	)
Balance at end of period		10,157			38,443
Total other comprehensive income (loss), net of tax attributable to MHFG shareholders		(56,254	)		143,331
AOCI, balance at end of period		106,715			133,837

Note: The MHFG Group adopted ASU No.2017-12, “Derivatives and Hedging (Topic 815)—Targeted Improvements to Accounting for Hedging Activities” (“ASU No.2017-12”) on April 1, 2019 and the ASU No.2017-12 eliminated the separate measurement and reporting of hedge ineffectiveness. Cumulative-effect adjustment to the consolidated balance sheets was recognized upon adoption.

The following table shows the amounts reclassified out of AOCI into net income during the six months ended September 30, 2020:

	Six months ended September 30, 2020
	Before tax (1)			Tax effect (2)			Net of tax before allocation to noncontrolling interests			Net of tax attributable to noncontrolling interests (2)			Net of tax attributable to MHFG shareholders
	(in millions of yen)
Amounts reclassified out of AOCI into net income:																Affected line items in the consolidated statements of income:
Net unrealized gains (losses) on available-for-sale securities		(1,065	)		306			(759	)		5			(754	)	Investment gains (losses)-net Provision (credit) for credit losses
Foreign currency translation adjustments		409			—			409			—			409		Foreign exchange gains (losses)-net
Pension liability adjustments		(1,004	)		321			(683	)		11			(672	)	Salaries and employee benefits
Own credit risk adjustments		4,111			(1,259	)		2,852			(120	)		2,732		Other noninterest income (expenses)
Total		2,451			(632	)		1,819			(104	)		1,715

Notes:

(1) The financial statement line item in which the amounts in the Before tax column are reported in the consolidated statements of income is listed to the right of the table.

(2) The financial statement line items in which the amounts in the Tax effect and the Net of tax attributable to noncontrolling interest columns are reported in the consolidated statements of income are Income tax expense and Net income, respectively.

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Regulatory matters

6 Months Ended

Sep. 30, 2020

Regulatory matters

9. Regulatory matters

Regulatory capital requirements

MHFG, MHBK, and MHTB are subject to regulatory capital requirements administered by the Financial Services Agency in accordance with the provisions of Japan’s Banking Act and related regulations. Certain foreign banking subsidiaries are subject to regulation and control by local supervisory authorities, including central banks.

Capital adequacy ratios and leverage ratios of MHFG, MHBK, and MHTB as of March 31, 2020 and September 30, 2020 calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency are set forth in the following table:

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Consolidated:
MHFG:
Common Equity Tier 1 capital:
Required (1)		4,978		8.01		5,159			8.01
Actual		7,245		11.65		7,453			11.57
Tier 1 capital:
Required (1)		5,910		9.51		6,125			9.51
Actual		9,024		14.52		9,468			14.69
Total risk-based capital:
Required (1)		7,152		11.51		7,413			11.51
Actual		10,722		17.25		11,133			17.28
Leverage Ratio:
Required		6,629		3.00		5,874	(2)		3.00
Actual		9,024		4.08		9,468	(2)		4.83
MHBK:
Common Equity Tier 1 capital:
Required		2,567		4.50		2,689			4.50
Actual		6,501		11.39		6,756			11.30
Tier 1 capital:
Required		3,422		6.00		3,585			6.00
Actual		8,275		14.50		8,765			14.66
Total risk-based capital:
Required		4,563		8.00		4,780			8.00
Actual		9,865		17.29		10,338			17.30
Leverage Ratio:
Required		6,160		3.00		5,450	(2)		3.00
Actual		8,275		4.02		8,765	(2)		4.82
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		489		23.64		509			26.24
Tier 1 capital:
Required		124		6.00		116			6.00
Actual		489		23.66		509			26.24
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		491		23.74		510			26.27
Leverage Ratio:
Required		216		3.00		156	(2)		3.00
Actual		489		6.79		509	(2)		9.79

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Non-consolidated:
MHBK:
Common Equity Tier 1 capital:
Required		2,403		4.50		2,525			4.50
Actual		6,130		11.47		6,369			11.34
Tier 1 capital:
Required		3,204		6.00		3,367			6.00
Actual		7,905		14.80		8,381			14.93
Total risk-based capital:
Required		4,272		8.00		4,489			8.00
Actual		9,482		17.75		9,943			17.71
Leverage Ratio:
Required		5,884		3.00		5,178	(2)		3.00
Actual		7,905		4.03		8,381	(2)		4.85
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		475		23.10		494			25.49
Tier 1 capital:
Required		123		6.00		116			6.00
Actual		475		23.10		494			25.49
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		477		23.18		494			25.52
Leverage Ratio:
Required		214		3.00		153	(2)		3.00
Actual		475		6.66		494	(2)		9.66

Notes:

(1) The required ratios disclosed above, at March 31, 2020 and September 30, 2020, include the capital conservation buffer of 2.5%, the countercyclical capital buffer of 0.01%, and the additional loss absorbency requirements for global systemically important banks (“G-SIBs”) and domestic systemically important banks (“D-SIBs”) of 1.0%, which are all in addition to the regulatory minima. The respective required amounts are determined by applying the ratios to the sum of the risk weighted assets and certain other risk amounts.

(2) The required and actual amounts disclosed above at September 30, 2020 exclude amounts of deposits to the Bank of Japan.

MHFG’s securities subsidiary in Japan is also subject to the capital adequacy requirement under Japan’s Financial Instruments and Exchange Act. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions.

Management believes, as of each latest balance sheet date, that MHFG, MHBK, MHTB, and their securities subsidiary in Japan and foreign banking subsidiaries were in compliance with all capital adequacy requirements to which they were subject.

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Earnings per common share

6 Months Ended

Sep. 30, 2020

Earnings per common share

10. Earnings per common share

Basic earnings per common share are computed by dividing net income attributable to MHFG common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflect all dilutive potential common shares such as stock options.

The following table sets forth the computation of basic and diluted earnings per common share for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Net income:
Net income attributable to MHFG common shareholders		212,984		315,886
Effect of dilutive securities		—		—
Net income attributable to common shareholders after assumed conversions		212,984		315,886
	Six months ended September 30,
	2019		2020
	(thousands of shares)
Shares:
Weighted average common shares outstanding		2,536,800		2,537,272
Effect of dilutive securities:
Stock options and the common shares of MHFG under the stock compensation programs (Note)		209		93
Weighted average common shares after assumed conversions		2,537,009		2,537,365
	Six months ended September 30,
	2019		2020
	(in yen)
Earnings per common share:
Basic net income per common share		83.96		124.50
Diluted net income per common share (Note)		83.95		124.49

Note: For the six months ended September 30, 2020, the performance-based plan under the stock compensation programs could potentially dilute earnings per common share but were not included in the computation of diluted earnings per common share due to their antidilutive effects.

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Income taxes

6 Months Ended

Sep. 30, 2020

Income taxes

11. Income taxes

The following table presents the components of Income tax expense for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Current tax expense		88,437			79,954
Deferred tax expense (benefit)		(5,317	)		57,807
Total income tax expense		83,120			137,761

The preceding table does not reflect the tax effects of items recorded directly in Equity for the six months ended September 30, 2019 and 2020. The detailed amounts recorded directly in Equity are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses)		11,023			579
Less: reclassification adjustments		(9,192	)		306
Total		1,831			885
Pension liability adjustments:
Unrealized gains (losses)		(643	)		83,994
Less: reclassification adjustments		(937	)		321
Total		(1,580	)		84,315
Own credit risk adjustments:
Unrealized gains (losses)		(43	)		(2,351	)
Less: reclassification adjustments		(588	)		(1,259	)
Total		(631	)		(3,610	)
Total tax effect before allocation to noncontrolling interests		(380	)		81,590

The statutory tax rates were both 30.62% as of September 30, 2019 and 2020. The effective tax rates, 26.77% and 25.15% for the six months ended September 30, 2019 and 2020, respectively, differed from the statutory tax rates. The difference of the tax rates for the six months ended September 30, 2019 was immaterial. The difference of the tax rates for the six months ended September 30, 2020 resulted mainly from the effect of noncontrolling interest income of consolidated VIEs. 

At September 30, 2020, the MHFG Group had net operating loss carryforwards totaling ¥623 billion.

The total amount of unrecognized tax benefits was ¥4,382 million at September 30, 2020, which would, if recognized, affect the Group’s effective tax rate. The Group classifies interest and penalties accrued relating to unrecognized tax benefits as Income tax expense.

A portion of unrecognized tax benefits at March 31, 2020 was resolved in the six months period ended September 30, 2020, of which the amount was immaterial. The amount of additional unrecognized tax benefits

for the period related to the tax positions taken was also immaterial. The MHFG Group does not anticipate that increases or decreases of unrecognized tax benefits within the next twelve months would have a material effect on its consolidated results of operations or financial condition.

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Pension and other employee benefit plans

6 Months Ended

Sep. 30, 2020

Pension and other employee benefit plans

12. Pension and other employee benefit plans

The following table summarizes the components of net periodic benefit cost of the severance indemnities and pension plans of the MHFG Group for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Service cost-benefits earned during the period		22,729			22,695
Interest costs on projected benefit obligations		2,666			2,931
Expected return on plan assets		(20,158	)		(20,073	)
Amortization of prior service cost (benefits)		19			205
Amortization of net actuarial loss (gain)		(3,064	)		836
Special termination benefits		2,188			4,981
Net periodic benefit cost		4,380			11,575

In September 2020, based on various approvals, MHFG and certain domestic subsidiaries communicated to their employees an amendment to the defined benefit pension plans that was effective as of October 1, 2020. In accordance with ASC 715, “Compensation—Retirement Benefits” (“ASC 715”), any change in projected benefit obligations due to a plan amendment is required to be recognized as prior service benefits (cost) as of the amendment date. Accordingly, the MHFG Group recognized ¥73,998 million of prior service benefits for the six months ended September 30, 2020.

The total contribution of approximately ¥41 billion is expected to be paid to the pension plans during the fiscal year ending March 31, 2021. The amount has been changed from which previously disclosed in the consolidated financial statements for the fiscal year ended March 31, 2020, in order to reflect the amendment to the pension plans which is effective as of October 1, 2020. For the six months ended September 30, 2020, the total contribution of ¥25 billion has been paid to the pension plans. The additional contribution of ¥16 billion is expected to be paid during the remainder of the fiscal year ending March 31, 2021.

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Derivative financial instruments

6 Months Ended

Sep. 30, 2020

Derivative financial instruments

13. Derivative financial instruments

The MHFG Group enters into derivative financial instruments in response to the diverse needs of customers, to manage the risk related to the assets and liabilities of the Group, as part of its asset and liability management, and for proprietary trading purposes. The Group is exposed primarily to market risk associated with interest rate, commodity, foreign currency, and equity products. Market risk arises from changes in market prices or indices, interest rates and foreign exchange rates that may result in an adverse change in the market value of the financial instrument or an increase in its funding costs. Exposure to market risk is managed by imposing position limits and monitoring procedures and by initiating hedging transactions. In addition to market risk, the Group is exposed to credit risk associated with counterparty default or nonperformance in respect of transactions. Counterparty credit risk arises when a counterparty fails to perform according to the terms and conditions of the contract and the value of the underlying collateral held, if applicable, is not sufficient to recover resulting losses. The exposure to counterparty credit risk is measured by the fair value of all derivatives and its potential exposure at the balance sheet 

dates. The exposure to counterparty credit risk is managed by entering into legally enforceable master netting agreements to mitigate the overall counterparty credit risk, requiring underlying collateral and guarantees based on an individual credit analysis of each obligor and evaluating the credit features of each instrument. In addition, credit approvals, limits and monitoring procedures are also imposed. 

Notional and fair value amounts of derivative instruments

The following table summarizes the notional and fair value amounts of derivative instruments outstanding as of March 31, 2020 and September 30, 2020. The fair values of derivatives are presented on a gross basis, derivative receivables and payables are not offset. In addition, they are not offset against the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements in the consolidated balance sheets, or the table below.

			Fair value
			Derivative receivables (2)				Derivative payables (2)
March 31, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,123,546		—		7,232		—		6,788
Foreign exchange contracts		185,359		—		2,926		—		2,899
Equity-related contracts		6,684		—		310		—		266
Credit-related contracts		4,676		—		30		—		29
Other contracts		400		—		38		—		39
Total		1,320,665		—		10,536		—		10,021
			Fair value
			Derivative receivables (2)				Derivative payables (2)
September 30, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,084,971		—		6,135		—		5,728
Foreign exchange contracts		174,856		—		2,143		—		2,160
Equity-related contracts		7,012		—		397		—		260
Credit-related contracts		7,742		—		55		—		77
Other contracts		397		—		28		—		26
Total		1,274,978		—		8,758		—		8,251

Notes:

(1) Notional amount includes the sum of gross long and gross short third-party contracts.

(2) Derivative receivables and payables are recorded in Trading account assets and Trading account liabilities, respectively.

The MHFG Group provided and/or accepted cash collateral for derivative transactions under master netting agreements. The cash collateral, which was not offset against derivative positions, was included in Other assets and Other liabilities, respectively, of which the amounts were ¥1,246 billion and ¥846 billion at March 31, 2020, and ¥1,079 billion and ¥587 billion at September 30, 2020, respectively.

Hedging activities

In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. Each derivative must be designated as a hedge, with documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and how effectiveness is to be assessed prospectively and retrospectively. The extent to which a hedging instrument is effective at achieving offsetting changes in fair value or cash flows must be assessed at least quarterly. The MHFG Group’s hedging activities include fair value and net investment hedges.

Net investment hedges

The MHFG Group uses forward foreign exchange contracts and foreign currency-denominated debt instruments to protect the value of net investments in non-Japanese subsidiaries from foreign currency exposure. Under net investment hedges, both derivatives and nonderivative financial instruments qualify as hedging instruments. The foreign currency-denominated debt instruments qualifying as hedging instruments include deposits and long-term debt, of which the carrying amounts of the portion designated as net investment hedges are included within the respective items in the consolidated balance sheets as well as relevant accompanying notes. For net investment hedges, the entire change in the fair value of a hedging derivative instrument or nonderivative hedging financial instrument is recorded in Foreign currency translation adjustments within Accumulated other comprehensive income, provided that the hedging instrument is designated as a hedge of the net investment.

The following table summarizes gains and losses information related to net investment hedges for the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in other comprehensive income (“OCI”) for six months ended September 30,
	2019			2020
	(in millions of yen)
Financial instruments hedging foreign exchange risk		(1,044	)		1,538
Total		(1,044	)		1,538

Note: Related to the net investment hedges, gains (losses) of ¥(260) million and ¥(1,312) million were reclassified from Accumulated other comprehensive income to earnings for the six months ended September 30, 2019 and 2020.

Derivative instruments not designated or qualifying as hedges

The MHFG Group enters into the following derivative transactions that do not qualify for hedge accounting with a view to implementing risk management strategies: (1) interest-rate swap transactions for the purpose of economically managing the interest-rate risks in deposits, loans etc., (2) currency swap transactions for the purpose of economically managing the foreign exchange risk of these assets, and (3) credit derivatives for the purpose of economically managing the credit risk in loans, residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLO”) and other similar assets. Such derivatives are accounted for as trading positions. The changes in fair value of these instruments are primarily recorded in Trading account gains (losses)—net, even though they are used to mitigate or transform the risk of exposures arising from banking activities. The net gains (losses) resulting from changes in the fair value of certain credit derivatives where the Group purchases protection to mitigate its credit risk exposure, related to its corporate loan portfolio, is recorded in Other noninterest income (expenses).

The following table summarizes gains and losses on derivatives not designated or qualifying as hedges during the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in income for six months ended September 30,
	2019			2020
	(in millions of yen)
Interest rate contracts		210,909			32,791
Foreign exchange contracts		(30,736	)		26,277
Equity-related contracts (1)		(494	)		(31,999	)
Credit-related contracts (2)		(3,546	)		(29,219	)
Other contracts		(1,650	)		26,692
Total		174,483			24,542

Notes:

(1) The net gains (losses) excluded from the assessment of the effectiveness of fair value hedges is not included in the above table.

(2) Amounts include the net gains (losses) of ¥(426) million and ¥(1,221) million on the credit derivatives economically managing the credit risk of loans during the six months ended September 30, 2019 and 2020, respectively.

Credit derivatives

A credit derivative is a bilateral contract between a seller and a buyer of protection against the credit risk of a particular entity. Credit derivatives generally require that the seller of credit protection make payments to the buyer upon the occurrence of predefined credit events, which include bankruptcy, dissolution or insolvency of the referenced entity. The MHFG Group either purchases or writes protection on either a single name or a portfolio of reference credits. The Group enters into credit derivatives to help mitigate credit risk in its corporate loan portfolio and other cash positions, to take proprietary trading positions, and to facilitate client transactions.

The notional amount of credit derivatives represents the maximum potential amount of future payments the seller could be required to make. If the predefined credit event occurs, the seller will generally have a right to collect on the underlying reference credit and the related cash flows, while being liable for the full notional amount of credit protection to the buyer. The Group manages credit risk associated with written protection by purchasing protection with identical or similar underlying reference credits, which substantially offsets its exposure. Thus, the notional amount is not necessarily a reliable indicator of the Group’s actual loss exposure.

The following table summarizes the notional and fair value amounts of credit derivatives at March 31, 2020 and September 30, 2020:

	March 31, 2020					September 30, 2020
	Notional amount		Fair value			Notional amount		Fair value
	(in billions of yen)
Credit protection written:
Investment grade		1,400		(5	)		2,687		37
Non-investment grade		416		—			530		8
Total		1,816		(5	)		3,217		45
Credit protection purchased		3,028		6			4,693		(67	)

Note: The rating scale is based upon either the external ratings or the internal ratings of the underlying reference credit. The lowest investment grade rating is considered to be BBB-, while anything below or unrated is considered to be non-investment grade. Non-investment grade credit derivatives primarily consist of unrated credit default swap indices such as CDX and iTraxx.

The following table shows the maximum potential amount of future payments for credit protection written by expiration period at March 31, 2020 and September 30, 2020:

	Maximum payout/Notional amount
	March 31, 2020		September 30, 2020
	(in billions of yen)
One year or less		270		233
After one year through five years		1,368		2,793
After five years		178		191
Total		1,816		3,217

Note: The maximum potential amount of future payments is the aggregate notional amount of the credit derivatives where the Group wrote the credit protection, and it has not been reduced by the effect of any amounts that the Group may possibly collect on the underlying assets and the related cash flows, nor netted against that of credit protection purchased.

Credit-related contingent features

Certain of the MHFG Group’s derivative instruments contain provisions that require the Group’s debt to maintain an investment grade credit rating from the major credit rating agencies. If the Group’s debt credit rating were to fall below investment grade, the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments which are in net liability positions for the Group.

The following table shows the quantitative information about derivative instruments with credit-risk-related contingent features at March 31, 2020 and September 30, 2020:

	March 31,  2020		September 30,  2020
	(in billions of yen)
Aggregate fair value of derivative instruments with credit-risk-related contingent features in net liability positions		888		747
Collateral provided to counterparties in the normal course of business		818		703
Amount required to be posted as collateral or settled immediately if credit-risk-related contingent features were triggered		70		44

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Commitments and contingencies

6 Months Ended

Sep. 30, 2020

Commitments and contingencies

14. Commitments and contingencies

Obligations under guarantees

The MHFG Group provides guarantees or indemnifications to counterparties to enhance their credit standing and enable them to complete a variety of business transactions. A guarantee represents an obligation to make payments to third parties if the counterparty fails to fulfill its obligation under a borrowing arrangement or other contractual obligation.

The Group records all guarantees and similar obligations subject to ASC 460, “Guarantees” (“ASC 460”) at fair value in the consolidated balance sheets at the inception of the guarantee.

The table below summarizes the maximum potential amount of future payments by type of guarantee at March 31, 2020 and September 30, 2020. The maximum potential amount of future payments disclosed below represents the contractual amounts that could be required to be repaid in the event of the guarantees being executed, without consideration of possible recoveries under recourse provisions or from collateral held. With respect to written options included in derivative financial instruments in the table below, in theory, the MHFG Group is exposed to unlimited losses; therefore, the table shows the notional amounts of the contracts as a substitute for the maximum exposure.

	March 31, 2020		September 30, 2020
	(in billions of yen)
Performance guarantees		2,456		2,527
Guarantees on loans		301		266
Guarantees on securities		110		96
Other guarantees		2,314		2,306
Guarantees for the repayment of trust principal		59		31
Liabilities of trust accounts		446		456
Derivative financial instruments		21,756		21,097

The table below presents the maximum potential amount of future payments of performance guarantees, guarantees on loans, guarantees on securities and other guarantees classified based on internal ratings at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Investment grade		4,233		4,079
Non-investment grade		948		1,116
Total		5,181		5,195

Note: Investment grade in the internal rating scale generally corresponds to BBB- or above in the external rating scale.

Other off-balance-sheet instruments

In addition to guarantees, the MHFG Group issues other off-balance-sheet instruments to its customers, such as lending-related commitments and commercial letters of credit. Under the terms of these arrangements, the MHFG Group is required to extend credit or make certain payments upon the customers’ requests.

The table below summarizes the contractual amounts with regard to these undrawn commitments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Commitments to extend credit (Note)		76,633		86,359
Commercial letters of credit		690		537
Total		77,323		86,896

Note: Commitments to extend credit include commitments to invest in securities.

Legal proceedings and investigations

The MHFG Group is involved in normal collection proceedings initiated by the Group, other legal proceedings and investigations in the ordinary course of business. In accordance with ASC 450, the Group recognizes a liability for loss contingencies arising from such proceedings and investigations when a loss is probable and the loss amount or the range of the loss can be reasonably estimated. If a loss does not meet this condition but is reasonably possible, the Group does not recognize a liability but discloses the detail of such proceedings and investigations. Based on the information available as of the date of the consolidated financial statements, the Group believes that the outcome of the collection, legal proceedings and investigations will not have a significant adverse effect on the consolidated financial statements. 

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Variable interest entities and securitizations

6 Months Ended

Sep. 30, 2020

Text Block [Abstract]

Variable interest entities and securitizations

15. Variable interest entities and securitizations

Variable interest entities

In the normal course of business, the MHFG Group is involved with VIEs primarily through the following types of transactions: asset-backed commercial paper/loan programs, asset-backed securitizations, investments in

securitization products, investment funds, trust arrangements, structured finance, and funding vehicles. The Group consolidates certain of these VIEs, where the Group is deemed to be the primary beneficiary because it has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The MHFG Group reassesses whether it is the primary beneficiary on an ongoing basis as long as the Group has any continuing involvement with the VIE. There are also other VIEs, where the Group has determined that it is not the primary beneficiary but has significant variable interests. In evaluating the significance of the variable interests, the Group takes into consideration the extent of its involvement with each VIE, such as the seniority of its investments, the share of its holding in each tranche and the variability it expects to absorb, as well as other relevant facts and circumstances. The likelihood of loss is not necessarily relevant to the determination of significance, and therefore, “significant” does not imply that there is high likelihood of loss. The maximum exposure to loss that is discussed in this section refers to the maximum loss that the Group could possibly be required to record in its consolidated statements of income as a result of its involvement with the VIEs. This represents exposures associated with both on-balance-sheet assets and off-balance-sheet liabilities related to the VIEs. Further, this maximum potential loss is disclosed regardless of the probability of such losses and, therefore, it is not indicative of the ongoing exposure which is managed within the Group’s risk management framework.

The table below shows the consolidated assets of the Group’s consolidated VIEs as well as total assets and maximum exposure to loss for its significant unconsolidated VIEs, in which the Group has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria as of March 31, 2020 and September 30, 2020:

	Consolidated VIEs		Significant unconsolidated VIEs
March 31, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,160		—		—
Asset-backed securitizations		572		77		7
Investments in securitization products		370		—		—
Investment funds		2,694		2,299		514
Trust arrangements and other		19		—		—
Total		5,815		2,376		521

	Consolidated VIEs		Significant unconsolidated VIEs
September 30, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,045		—		—
Asset-backed securitizations		780		77		8
Investments in securitization products		370		—		—
Investment funds		2,283		2,346		483
Trust arrangements and other		5,557		—		—
Total		11,035		2,423		491

As of March 31, 2020 and September 30, 2020, the noncontrolling interests in consolidated VIEs amounted to ¥541 billion and ¥275 billion, respectively, and included in the Group’s equity-classified noncontrolling interests.

The Group has not provided financial or other support to consolidated or unconsolidated VIEs that the Group was not previously contractually required to provide.

The tables below present the carrying amounts and classification of assets and liabilities on the MHFG Group’s balance sheets that relate to its variable interests in significant unconsolidated VIEs, as of March 31, 2020 and September 30, 2020:

Assets on balance sheets related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Trading account assets		108		113
Investments		267		231
Loans		55		58
Total		430		402

Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Payables under securities lending transactions		47		48
Trading account liabilities		2		2
Total		49		50
Maximum exposure to loss (Note)		521		491

Note: This represents the maximum amount the Group could possibly be required to record in its consolidated statements of income associated with on-balance-sheet exposures and off-balance-sheet liabilities such as undrawn commitments.

In the table above the nature of the Group’s variable interest can take different forms, as described further in the notes below. Additionally the Group’s exposure to the obligations of VIEs is generally limited to its interest in these entities. In certain instances the Group provides undrawn commitments to the VIEs.

The Group’s maximum exposure to loss presented in the table above does not include the benefit of offsetting financial instruments that are held to mitigate the risks associated with these variable interests. Furthermore, the Group’s maximum exposure to loss presented in the table above is not reduced by the amount of collateral held as part of the transaction with the VIE or any party to the VIE directly against a specific exposure to loss.

Asset-backed commercial paper/loan programs

The MHFG Group manages several asset-backed commercial paper/loan programs that provide its clients with off-balance-sheet and/or cost-effective financing. The VIEs used in the programs purchase financial assets, primarily receivables, from clients participating in the programs and provide liquidity through the issuance of commercial paper or borrowings from the MHFG Group backed by the financial assets. While customers normally continue to service the transferred receivables, the MHFG Group underwrites, distributes, and makes a market in commercial paper issued by the conduits. The MHFG Group typically provides program-wide liquidity

and credit support facilities and, in some instances, financing to the VIEs. The MHFG Group has the power to determine which assets will be held by the VIEs and has an obligation to monitor these assets. The Group is also responsible for liability management. In addition, through the liquidity and credit support facilities provided to the VIEs, the Group has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs.

Asset-backed securitizations

The MHFG Group acts as an arranger of various types of structured finance schemes to meet its clients’ needs for off-balance-sheet financing. In substantially all of these structured financing transactions, the transfer of the financial asset by the client is structured to be bankruptcy remote by use of a bankruptcy remote entity, which is deemed to be a VIE because its equity holder does not have decision making rights. The MHFG Group receives fees for structuring and/or distributing the securities sold to investors. In some cases, the MHFG Group itself purchases the securities issued by the entities and/or provides loans to the VIEs.

In addition, the MHFG Group establishes several single-issue and multi-issue special purpose entities that issue collateralized debt obligations (“CDO”) or CLO, synthetic CDO/CLO or other repackaged instruments to meet clients’ and investors’ financial needs. The MHFG Group also arranges securitization transactions including CMBS, RMBS and others. In these transactions, the MHFG Group acts as an underwriter, placement agent, asset manager, derivatives counterparty, and/or investor in debt and equity instruments.

In these cases, the MHFG Group consider that these variable interests are not significant as the MHFG Group does not have material balance sheet or off-balance exposure at risk related to these variable interests. However, when the MHFG Group has invested in securities issued by the VIEs and/or provides loans to the VIEs and its investment is most part of shares, such variable interests are deemed to be “significant.” In certain VIEs, where the MHFG Group provides liquidity and credit support facilities, writes credit protection or invests in debt or equity instruments in its role as an arranger, servicer, administrator or asset manager, etc., the Group has the power to determine which assets will be held by the VIEs or to manage and monitor these assets. In addition, through the variable interests above, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs.

The MHFG Group established certain VIEs to securitize its own mortgage loans. The Group provides servicing for and holds retained subordinated beneficial interests in the securitized mortgage loans. In addition, the Group retains credit exposure in the form of guarantees on these loans. In its role as a servicer, the Group has the power to direct the entity’s activities that most significantly impact the entity’s economic performance by managing defaulted mortgage loans. In addition, through its retained interests and its aforementioned involvement as a guarantor, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the entity. Therefore, the Group consolidates such VIEs.The MHFG Group has started Tender Option Bond (“TOB”) programs in the fiscal year ended March 31, 2020, which is associated with trusts that hold highly-rated, fixed-rate and tax-exempt municipal bonds. The trust finances the purchase of their municipal bonds by issuing two types of certificates: (1) short-term puttable and floating-rate certificates (“floaters”), typically purchased by money market funds and (2) certificates that earn all excess cash flow received by the trust after floaters and fees are paid (“residuals”), purchased by the transferor of the municipal bond to the trust as a sponsor. The Group is engaged in two types of TOB trusts: customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are those for which the residuals are purchased by customers of the Group, whereas the residuals issued by non-customer TOB trusts are purchased by the Group.Both of types of TOB trusts are deemed to be VIEs because its equity holder does not have decision making rights. The MHFG Group considers that it is a “significant” variable interest when the Group has the residuals as a sponsor and/or provides liquidity and credit support facilities. For customer TOB trusts, the residual holders are obligated to reimburse the Group for any payment the Group makes under those liquidity and credit support facilities. In non-customer TOB trusts, where MHFG Group holds the residuals as a sponsor, the Group has the power to determine which assets will be held by the VIEs or to manage and monitor these assets. In addition, through the variable interests above, the Group has the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs. Customer TOB trusts are not consolidated in the financial statements of the Group, as the residuals are held by customers and the Group does not have power to determine which assets will be held by the VIEs or to manage and monitor these assets.

Investments in securitization products

The MHFG Group invests in, among other things, various types of CDO/CLO, synthetic CDO/CLO and repackaged instruments, CMBS and RMBS arranged by third parties for the purpose of generating current income or capital appreciation, which all utilize entities that are deemed to be VIEs. By design, such investments were investment grade at issuance and held by a diverse group of investors. The potential loss amounts of the securities and the loans are generally limited to the amounts invested because the Group has no contractual involvement in such VIEs beyond its investments. Since the Group is involved in these VIEs only as an investor, the Group does not ordinarily have the power to direct the VIEs’ activities that most significantly impact the VIEs’ economic performance. Similar to the criteria noted in the asset-backed securitization section, the Group views this investment activity to be “significant” when it has a large investment share and/or provides loans to the VIEs. The Group consolidates VIEs, where the transactions are tailored by the third party arrangers to meet the Group’s needs as a main investor, who is ultimately deemed to have the power to determine which assets are to be held by the VIEs. The Group also invests in certain beneficial interests issued by VIEs which hold real estate that the Group utilizes. In addition to these variable interests, when the Group has the power including the sole unilateral ability to liquidate the VIEs, the Group consolidates such VIEs.

Investment funds

The MHFG Group invests in various investment funds, including securities investment trusts, which collectively invest in equity and debt securities that include listed Japanese securities and investment grade bonds. Investment advisory companies or fund management companies, including the Group’s subsidiaries and affiliates, administer and make investment decisions about such investment funds. The Group considers that it is a “significant” variable interest when the Group’s investment share is greater than threshold. The Group consolidates certain investment funds where it is deemed to be the primary beneficiary.

The Group determines whether it is the primary beneficiary by evaluating whether it has both (1) the power to make investment decisions about the investment funds and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the investment funds. The Group consolidates certain investment funds where it is deemed to be the primary beneficiary.

Trust arrangements

The MHFG Group offers a variety of asset management and administration services under trust arrangements including security investment trusts, pension trusts and trusts used in the securitization of assets originated by and transferred to third parties. The Group receives trust fees for providing services as an agent or fiduciary on behalf of beneficiaries. In these cases, the MHFG Group considers that these variable interests are not significant other than specific involvements such as the following;

With respect to guaranteed principal money trust products, the MHFG Group assumes certain risks by providing guarantees for the repayment of principal as required by the trust agreements or relevant Japanese legislation.

The MHFG Group manages entrusted funds primarily through the origination of high quality loans and other credit-related products, investing in investment grade marketable securities such as Japanese government bonds and placing cash with the MHFG Group’s subsidiary trust banks. The Group has the power to determine which assets will be held by the VIEs or to manage these assets. In addition, through the principal guarantee agreements, the Group has the obligation to absorb losses that could potentially be significant to the VIEs. Therefore, the Group consolidates such VIEs. However, the MHFG Group does not consolidate certain guaranteed principal money trusts, which invest all the entrusted funds in the MHFG Group itself, as the Group has determined that it has no variable interests. See Note 14 “Commitments and contingencies” for the balances of guaranteed trust principal that are not consolidated at March 31, 2020 and September 30, 2020.

With respect to non-guaranteed trust arrangements, the MHFG Group manages and administers assets on behalf of its customers (trust beneficiaries) in the capacity of a trustee and fiduciary. For substantially all non-guaranteed trust arrangements, the Group generally does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance or has neither the obligation to absorb losses nor the right to receive benefits that could potentially be significant to the VIEs. Therefore, such trust accounts are not included in the consolidated financial statements of the MHFG Group.

The MHFG Group has established a trust in August 2020, which holds the Group’s housing loans and in turn issues beneficiary interests to the Group, as a result from Special Funds-Supplying Operations implemented by the Bank of Japan to facilitate financing in response to COVID-19. The Group pledges the beneficiary interests as a collateral for borrowing from the Bank of Japan. In its role as a servicer, the Group has power to direct the entity’s activities that most significantly impact the entity’s economic performance by managing mortgage loans owned by a trust. The Group considers that it is a “significant” variable interest since the Group can determine which assets will be held by the VIE. In addition, through the beneficiary interest, the Group has obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. Therefore, the Group consolidates the VIE.

Special purpose entities created for structured finance

The MHFG Group is involved in real estate, commercial aircraft and other vessel and machinery and equipment financing to VIEs and financing in securitized receivable. As the Group typically only provides senior financing with credit enhanced by subordinated interests and may sometimes act as an interest rate swap counterparty, the Group has determined that it does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance, or it does not have significant variable interests. Therefore, the Group does not consolidate such VIEs.

Funding Vehicles

The MHFG Group has established several wholly-owned off-shore vehicles which issue securities, typically preferred stock that is fully guaranteed by the MHFG Group, to investors unrelated to the MHFG Group to fund purchases of debt instruments issued by the MHFG Group. These entities are considered VIEs because they lack sufficient equity to finance their activities; however, the MHFG Group’s investment in the vehicles’ equity is not a variable interest because the investment is not considered to be at risk as the entire amount raised by the vehicles was used to purchase debt instruments issued by the MHFG Group. Because the MHFG Group does not have variable interests in these vehicles, the MHFG Group does not consolidate these entities. Debt instruments issued by the MHFG Group, which are included in Long-term debt, were ¥356 billion and ¥317 billion at March 31, 2020 and September 30, 2020, respectively.

Securitization

The MHFG Group engages in securitization activities and securitizes mortgage loans, other loans, government and corporate securities and other types of financial assets in the normal course of business. In these securitization transactions, the Group records the transfer of a financial asset as a sale when all the accounting criteria for a sale under ASC 860, “Transfers and Servicing” (“ASC860”) are met. These criteria are (1) the transferred financial assets are legally isolated from the Group’s creditors, (2) the transferee or beneficial interest holder has the right to pledge or exchange the transferred financial assets, and (3) the Group does not maintain effective control over the transferred financial assets. If all the criteria are not met, the transfer is accounted for as a secured borrowing.

For the six months ended September 30, 2019 and 2020, the MHFG Group neither made significant transfers of financial assets nor recognized significant gains or losses in securitization transactions accounted for as sales. The Group did not retain significant interests in securitization transactions accounted for as sales as of March 31, 2020 and September 30, 2020.

There are certain transactions where transfers of financial assets do not qualify for the aforementioned sales criteria and are accounted for as secured borrowings. These transferred assets continue to be carried on the consolidated balance sheets of the MHFG Group. Such assets are associated with securitization transactions and loan participation transactions, which amounted to ¥176 billion and ¥153 billion as of March 31, 2020, and ¥174 billion and ¥142 billion as of September 30, 2020, respectively. Liabilities associated with securitization and loan participation transactions are presented as Payables under securities lending transactions and Other short-term borrowings or Long-term debt, respectively, on the consolidated balance sheets.

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Noninterest income

6 Months Ended

Sep. 30, 2020

Noninterest income

16. Noninterest income

Details of Noninterest income for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Fee and commission income:
Securities-related business (1)		64,498			78,441
Deposits-related business (1)		7,570			7,408
Lending-related business (2)(4)		68,609			79,619
Remittance business (1)		56,075			54,785
Asset management business (1)		48,291			45,948
Trust-related business (1)		56,459			54,425
Agency business (1)		15,152			15,064
Guarantee-related business (3)		13,898			15,560
Fees for other customer services (1)		73,440			77,067
Total Fee and commission income		403,992			428,317
Foreign exchange gains (losses)—net (3)		27,923			22,785
Trading account gains (losses)—net (2)		395,405			257,591
Investment gains (losses)—net:
Debt securities (3)		31,092			46
Equity securities (3)		(126,648	)		266,119
Equity in earnings (losses) of equity method investees-net (3)		22,066			5,788
Gains on disposal of premises and equipment (3)		1,693			6,849
Other noninterest income (2)(5)		34,839			23,715
Total		790,362			1,011,210

Notes:

(1) These amounts are revenues from contracts within the scope of ASC 606, “Revenue from contracts with customers” (“ASC 606”).

(2) Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

(3) These amounts are revenues from contracts that do not meet the scope of ASC 606.

(4) Most of the lending-related fees such as commitment fees and arrangement fees are not within the scope of ASC 606.

(5) These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

Certain Fee and commission income, Trading account gains (losses)-net and Other noninterest income outlined in the table above are considered to be revenues from contracts that are within the scope of ASC 606. The MHFG Group disaggregates Fee and commission income, which is the main part of revenues within the scope of ASC 606, by type of business or service in the table above.

Fee and commission income

For the MHFG Group’s accounting policy for the recognition of Fee and commission income, see Note 1 “Basis of presentation and summary of significant accounting policies” to the consolidated financial statements in the Group’s most recent Form 20-F.

Trust-related business fees consist of trust fees earned primarily through fiduciary asset management and administrative service and other trust-related fees, which amounted to ¥25 billion and ¥31 billion for the six months ended September 30, 2019, respectively, and ¥25 billion and ¥29 billion for the six months ended September 30, 2020, respectively.

Trading account gains (losses)—net and Other noninterest income

In addition to Fee and commission income, Trading account gains (losses)-net and Other noninterest income include certain revenues within the scope of ASC 606. Underwriting fees from trading securities, which amounted to ¥33 billion and ¥45 billion for the six months ended September 30, 2019 and 2020, respectively, are within the scope of ASC 606 and accounted for in Trading account gains (losses)-net. Underwriting fees are primarily recognized at the point in time and all considerations of the transaction are fixed on trade date or pricing date. For the six months ended September 30, 2019 and 2020, approximately ¥12 billion and ¥7 billion, respectively, of Other noninterest income were within the scope of ASC 606. Credit card interchange fees are within the scope of ASC 606 and accounted for in Other noninterest income. Credit card interchange fees are earned on credit card transactions conducted through payment networks and recognized upon settlement of the credit card payment transactions.

Contract balances relating to revenues from contracts with customers subject to ASC 606

Contract assets and receivables from contracts with customers subject to ASC 606 are recognized in Accrued income or accounts receivable of Other assets. As of March 31, 2020 and September 30, 2020, the balance of contract assets was not material. Contract liabilities are recognized in unearned income of Other liabilities. As of March 31, 2020 and September 30, 2020, the balance of contract liabilities was not material.

Remaining performance obligations relating to revenues from contracts with customers subject to ASC 606

Remaining performance obligations are services that the MHFG Group has committed to provide in the future in connection with its contracts with customers. As of March 31, 2020 and September 30, 2020, the amount of expected revenues from current obligations to provide services in the future was not material. It excludes revenues from contracts less than one year or contracts that have provisions that allow the Group to recognize revenue at the amount it has the right to invoice.

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Fair value

6 Months Ended

Sep. 30, 2020

Fair value

17. Fair value

Fair value measurements

ASC 820, “Fair Value Measurements” (“ASC 820”), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, ASC 820 precludes (1) the deferral of gains and losses at inception of certain derivative contracts whose fair value was not evidenced by market-observable data, and (2) the use of block discounts when measuring the fair value of instruments traded in an active market, which were previously applied to large holdings of publicly traded financial instruments.

Fair value hierarchy

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. The standard describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market.
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments. If no quoted market prices are available, the fair values of debt securities and over-the-counter derivative contracts in this category are determined using pricing models with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Valuation process

The MHFG Group has established valuation policies which govern the principles of fair value measurements and the authority and duty of each department. The Group has also established procedure manuals which describe valuation techniques and related inputs for determining the fair values of various financial instruments. The policies require that the measurement of fair values be carried out in accordance with the procedures performed by the risk management departments or the back offices which are independent from the front offices. The policies also require the risk management departments to check and verify whether the valuation methodologies defined in the procedure manuals are fair and proper and the internal audit departments to periodically review the compliance with the procedures throughout the Group. Although the valuation methodologies and related inputs are consistently used from period to period, a change in the market environment sometimes leads to a change in the valuation methodologies and the inputs. For instance, a change in market liquidity due to a delisting or a new listing is one of the key drivers of revisions to the valuation methodologies and the inputs. The key drivers also include the availability or the lack of market observable inputs and the development of new valuation methodologies. Price verification performed through the Group’s internal valuation process has an important role in identifying whether the valuation methodologies and the inputs need to be changed. The internal valuation process over the prices broker-dealers provide, primarily for Japanese securitization products, is described in more detail below in Available-for-sale securities. A change in the valuation methodologies and/or the inputs requires the revision of the valuation policies and procedure manuals, which is required to be approved by the appropriate authority, either the CEO, the head of risk management, and/or the head of accounting, depending on the nature and characteristics of the change.

The following is a description of valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis, including the general classification of such instruments pursuant to the fair value hierarchy and the MHFG Group’s valuation techniques used to measure fair values. During the six months ended

September 30, 2020, there were no significant changes made to the Group’s valuation techniques and related inputs.

Trading securities and trading securities sold, not yet purchased

When quoted prices for identical securities are available in an active market, the Group uses the quoted prices to measure the fair values of securities and such securities are classified in Level 1 of the fair value hierarchy. Level 1 securities include highly liquid government bonds and equity securities. When quoted prices for identical securities are available, but not actively traded, such securities are classified in Level 2 of the fair value hierarchy. When no quoted market prices are available, the Group estimates fair values by using pricing models with inputs that are observable in the market and such securities are classified in Level 2 of the fair value hierarchy. Level 2 securities include Japanese local government bonds, corporate bonds, and commercial paper. When less liquid market conditions exist for securities, the quoted prices are stale or the prices from independent sources vary significantly, such securities are generally classified in Level 3 of the fair value hierarchy. The fair values of securitization products such as RMBS, CMBS, ABS, and CLO are determined primarily by using a discounted cash flow model. The key inputs used for the model include default rates, recovery rates, prepayment rates, and discount rates. In the event that certain key inputs are unobservable or cannot be corroborated by observable market data, these financial instruments are classified in Level 3.

Hedge funds the Group invests in are primarily multi strategy funds that employ a fundamental bottom-up investment approach across various asset classes globally. Hedge funds are measured at the net asset value (“NAV”) per share and the Group has the ability to redeem its investment with the investees at the NAV per share at the measurement date or within the near term. Private equity funds have specific investment objectives in connection with their acquisition of equity interests in new and emerging firms in need of capital. Employing venture capital strategies, they provide financing and other support to start-up businesses, medium and small entities in particular geographical areas, and to companies with certain technologies or companies in high-growth industries. Real estate funds invest globally and primarily in real estate companies, debt recapitalizations and direct property. Private equity funds and real estate funds are measured using the NAV per share practical expedient and the Group does not have the ability to redeem its investment in the investees at the NAV per share at the measurement date or within the near term. It is estimated that the underlying assets of the funds would be liquidated within a ten-year period.

Derivative financial instruments

Exchange-traded derivatives are valued using quoted market prices and consequently are classified in Level 1 of the fair value hierarchy. However, the majority of derivatives entered into by the Group are executed over-the-counter and are valued using internal valuation techniques as no quoted market prices are available for such instruments. The valuation techniques depend on the type of derivatives. The principal techniques used to value these instruments are discounted cash flow models and the Black-Scholes option pricing model, which are widely accepted in the financial services industry. The key inputs vary by the type of derivatives and the nature of the underlying instruments and include interest rate yield curves, foreign exchange rates, the spot price of the underlying, volatility and correlation. Each item is classified in either Level 2 or Level 3 depending on the observability of the significant inputs to the model. Level 2 derivatives include plain vanilla interest rate and currency swaps and option contracts. Derivative contracts valued using significant unobservable correlation or volatility are classified in Level 3 of the fair value hierarchy. In addition, the Group records credit-risk valuation adjustments on over-the-counter derivatives to reflect the credit quality of its counterparties. The Group calculates these credit-risk valuation adjustments using modeled expected exposure, and default probabilities and

severity factors that are developed from market credit spreads and other related market information. Also, the Group records funding valuation adjustments to reflect the impact of funding on uncollateralized over-the-counter derivatives and derivatives where the Group is not permitted to use the collateral received, and is recognized where there is evidence that a market participant would incorporate the adjustment into the transfer of the instrument. The Group calculates these funding valuation adjustments incorporating the expected future funding requirements arising from the Group’s positions and the estimated market funding cost which considers the Group’s credit risk.

Available-for-sale securities

The fair values of available-for-sale securities are determined primarily using the same procedures described under trading securities above. Since private placement bonds have no quoted market prices, the fair values of such bonds are estimated based on a discounted cash flow model using interest rates approximating the current rates for instruments with similar maturities and credit risk. Private placement bonds are classified in either Level 2 or Level 3 depending on the observability of the significant inputs to the model, such as credit risk. The fair values of securitization products such as RMBS, CMBS and ABS are generally based upon single non-binding quoted prices from broker-dealers. Such quotes are validated through the Group’s internal processes and controls. In rare instances where the Group finds the quoted prices to be invalid through its internal valuation process, it adjusts those prices or alternatively estimates their fair values by using a discounted cash flow model to incorporate the Group’s estimates of key inputs such as the most recent value of each underlying asset, cash flows of the underlying assets, and discount margin. The validation of such prices varies depending on the nature and type of the products. For the majority of RMBS and ABS, broker quotes are validated by investigating significant unusual monthly valuation fluctuations and comparing to prices internally computed through discounted cash flow models using assumptions and parameters provided by brokers such as the cash flows of underlying assets, yield curve, prepayment speed and credit spread. For the majority of CMBS, the Group validates broker quotes through a review process that includes the investigation of significant unusual monthly valuation fluctuations and/or a review of underlying assets with significant differences between the valuations of the Group and the broker-dealers being identified. Though most Japanese securitization products are classified in Level 3, certain securitization products such as Japanese RMBS are classified in Level 2, if the quoted prices are verified through either recent market transactions or a pricing model that can be corroborated by observable market data.

Equity securities

Equity securities mainly consist of marketable equity securities. The fair values of the marketable equity securities are based upon quoted market prices for identical equity securities trading as securities in an active market. Equity securities also include investments in certain investment funds measured using the NAV per share practical expedient including private equity funds and real estate funds. These securities are determined primarily using the same procedures described under Trading securities and trading securities sold, not yet purchased above. 

Other investments

Other investments consist of investments held by consolidated investment companies. These companies typically hold investments in marketable and non-marketable equity securities and debt securities. The fair value of the marketable equity securities is based upon quoted market prices. The fair value of the non-marketable equity securities is based upon significant management judgment, as very limited quoted prices exist. When evaluating

such securities, the Group firstly considers recent market transactions of identical securities, if applicable. Thereafter, the Group uses commonly accepted valuation techniques such as earnings multiples based on comparable public securities. Non-marketable equity securities are generally classified in Level 3 of the fair value hierarchy. The fair value of the debt securities is estimated using a discounted cash flow model, since they have no quoted market prices. Those debt securities are classified in Level 3, because the credit risk is unobservable.

Long-term debt

Fair value accounting is elected for certain long-term debt instruments with embedded derivatives. The fair values are determined using a discounted cash flow model that considers the embedded derivatives and the terms and payment structures of the notes. The fair values of the derivatives embedded in such notes are primarily derived by using the same procedures described in Derivative financial instruments above. Such notes are classified in Level 2 or Level 3 depending on the observability of the significant inputs into the model used to determine the fair value of the embedded derivatives. The Group also measures certain notes that contain embedded derivatives at fair value under the practicability exception. For these instruments, fair value is based on quoted prices for identical debt traded as a security in inactive markets. These instruments are classified in Level 2 of the fair value hierarchy.

Items measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and September 30, 2020, including those for which the MHFG Group has elected the fair value option, are summarized below:

March 31, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		1,516		22		—		1,538
Japanese local government bonds		—		170		—		170
U.S. Treasury bonds and federal agency securities		4,580		461		—		5,041
Other foreign government bonds		1,128		547		—		1,675
Agency mortgage-backed securities		—		3,390		—		3,390
Residential mortgage-backed securities		—		—		10		10
Certificates of deposit and commercial paper		—		1,036		—		1,036
Corporate bonds and other (2)		41		1,398		1,115		2,554
Equity securities		1,000		650		30		1,680
Trading securities measured at net asset value (3)								462
Derivative financial instruments:
Interest rate contracts		153		7,070		9		7,232
Foreign exchange contracts		9		2,900		17		2,926
Equity-related contracts		169		125		16		310
Credit-related contracts		—		22		8		30
Other contracts		3		11		24		38
Available-for-sale securities:
Japanese government bonds		11,950		653		—		12,603
Japanese local government bonds		—		273		—		273
U.S. Treasury bonds and federal agency securities		935		—		—		935
Other foreign government bonds		436		975		—		1,411
Agency mortgage-backed securities		—		505		—		505
Residential mortgage-backed securities		—		53		31		84
Commercial mortgage-backed securities		—		—		615		615
Japanese corporate bonds and other debt securities		—		1,678		157		1,835
Foreign corporate bonds and other debt securities		—		678		174		852
Equity securities:
Equity securities with readily determinable fair values		2,670		95		—		2,765
Equity securities measured at net asset value (3)								72
Other investments		—		—		39		39
Total assets measured at fair value on a recurring basis		24,590		22,712		2,245		50,081
Liabilities:
Trading securities sold, not yet purchased		1,880		515		—		2,395
Derivative financial instruments:
Interest rate contracts		163		6,611		14		6,788
Foreign exchange contracts		8		2,890		1		2,899
Equity-related contracts		186		47		33		266
Credit-related contracts		—		19		10		29
Other contracts		6		10		23		39
Long-term debt (4)		—		1,916		621		2,537
Total liabilities measured at fair value on a recurring basis		2,243		12,008		702		14,953

September 30, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		3,257		11		—		3,268
Japanese local government bonds		—		138		—		138
U.S. Treasury bonds and federal agency securities		4,963		829		—		5,792
Other foreign government bonds		938		526		—		1,464
Agency mortgage-backed securities		—		4,348		—		4,348
Residential mortgage-backed securities		—		—		9		9
Certificates of deposit and commercial paper		—		1,259		—		1,259
Corporate bonds and other (2)		22		1,348		1,085		2,455
Equity securities		929		570		30		1,529
Trading securities measured at net asset value (3)								447
Derivative financial instruments:
Interest rate contracts		40		6,088		7		6,135
Foreign exchange contracts		—		2,123		20		2,143
Equity-related contracts		98		287		12		397
Credit-related contracts		—		52		3		55
Other contracts		3		10		15		28
Available-for-sale securities:
Japanese government bonds		19,600		320		—		19,920
Japanese local government bonds		—		407		—		407
U.S. Treasury bonds and federal agency securities		627		—		—		627
Other foreign government bonds		430		926		—		1,356
Agency mortgage-backed securities		—		520		—		520
Residential mortgage-backed securities		—		53		27		80
Commercial mortgage-backed securities		—		—		641		641
Japanese corporate bonds and other debt securities		—		1,579		491		2,070
Foreign corporate bonds and other debt securities		—		747		178		925
Equity securities:
Equity securities with readily determinable fair values		2,976		40		—		3,016
Equity securities measured at net asset value (3)								83
Other investments		—		—		56		56
Total assets measured at fair value on a recurring basis		33,883		22,181		2,574		59,168
Liabilities:
Trading securities sold, not yet purchased		2,051		268		20		2,339
Derivative financial instruments:
Interest rate contracts		39		5,679		10		5,728
Foreign exchange contracts		—		2,159		1		2,160
Equity-related contracts		128		109		23		260
Credit-related contracts		—		75		2		77
Other contracts		4		8		14		26
Long-term debt (4)		—		2,164		638		2,802
Total liabilities measured at fair value on a recurring basis		2,222		10,462		708		13,392

Notes:

(1) Trading securities include foreign currency denominated securities for which the MHFG Group elected the fair value option.

(2) The amount includes CLO and convertible bonds, which are classified in Level 3.

(3) In accordance with ASC 820, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented for these classes of assets are intended to permit the reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position. The amounts of unfunded commitments related to these investments at March 31, 2020 and September 30, 2020 were ¥47 billion and ¥56 billion, respectively.

(4) Amounts represent items for which the Group elected the fair value option or for which it applied the practicability exception.

Items measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended September 30, 2019 and 2020:

Six months ended September 30, 2019	April 1, 2019			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases			Sales			Issuances		Settle- ments			September 30, 2019			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		11			—	(2)		—			—		—			—			—			—		(1	)		10			—
Corporate bonds and other		1,044			(15	) (2)		—			—		—			338			(105	)		—		(125	)		1,137			(14	)
Equity securities		28			2	(2)		—			—		—			1			—			—		(1	)		30			—
Derivative financial instruments, net (1):
Interest rate contracts		13			(9	) (2)		—			—		—			—			—			—		1			5			(8	)
Foreign exchange contracts		22			(10	) (2)		—			—		—			—			—			—		(2	)		10			(9	)
Equity-related contracts		(5	)		1	(2)		—			—		—			—			—			—		(3	)		(7	)		2
Credit-related contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Other contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		40			—	(3)		—	(4)		—		—			—			—			—		(7	)		33			—
Commercial mortgage-backed securities		500			—	(3)		1	(4)		—		—			89			(35	)		—		(6	)		549			—
Japanese corporate bonds and other debt securities		120			1	(3)		4	(4)		—		—			97			—			—		(53	)		169			—
Foreign corporate bonds and other debt securities		103			—	(3)		(5	) (4)		—		—			38			—			—		(3	)		133			—
Other investments		35			1	(3)		—			—		—			10			—			—		(10	)		36			2
Liabilities:
Trading securities sold, not yet purchased		1			—	(2)		—			—		—			(9	)		8			—		—			—			—
Long-term debt		655			(6	) (5)		—	(4)		17		(6	)		—			—			108		(134	)		646			(10	)

Six months ended September 30, 2020	April 1, 2020			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issuances		Settle- ments			September 30, 2020			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		10			—	(2)		—			—		—			—		—			—		(1	)		9			—
Corporate bonds and other		1,115			18	(2)		—			—		(1	)		189		(113	)		—		(123	)		1,085			18
Equity securities		30			(2	) (2)		—			—		—			2		—			—		—			30			(1	)
Derivative financial instruments, net (1):
Interest rate contracts		(5	)		(3	) (2)		—			—		—			—		—			—		5			(3	)		1
Foreign exchange contracts		16			4	(2)		—			—		—			—		—			—		(1	)		19			5
Equity-related contracts		(17	)		4	(2)		—			—		—			—		—			—		2			(11	)		3
Credit-related contracts		(2	)		3	(2)		—			1		1			—		—			—		(2	)		1			1
Other contracts		1			—	(2)		—			—		—			—		—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		31			—	(3)		—	(4)		—		—			—		—			—		(4	)		27			—
Commercial mortgage-backed securities		615			—	(3)		1	(4)		—		—			78		(51	)		—		(2	)		641			—
Japanese corporate bonds and other debt securities		157			(7	) (3)		8	(4)		—		—			344		—			—		(11	)		491			—
Foreign corporate bonds and other debt securities		174			1	(3)		8	(4)		—		—			31		—			—		(36	)		178			—
Other investments		39			(1	) (3)		—			—		—			38		(1	)		—		(19	)		56			(1	)
Liabilities:
Trading securities sold, not yet purchased		—			—	(2)		—			—		—			—		20			—		—			20			—
Long-term debt		621			(37	) (5)		(8	) (4)		19		(35	)		—		—			108		(120	)		638			(27	)

Notes:

(1) Total Level 3 derivative exposures have been netted on the table for presentation purposes only.

(2) Gains (losses) in Earnings are reported in Trading account gains (losses)-net, Foreign exchange gains (losses)-net or Other noninterest income (expenses).

(3) Gains (losses) in Earnings are reported in Investment gains (losses)-net.

(4) Gains (losses) in OCI are reported in Other comprehensive income (loss).

(5) Gains (losses) in Earnings are reported in Other noninterest income (expenses).

(6) Amounts represent total gains or losses recognized in earnings and OCI during the period. These gains or losses were attributable to the change in fair value relating to assets and liabilities classified as Level 3 that were still held at September 30, 2019 and 2020. The amounts of unrealized gains (losses) in OCI related to Available-for-sale securities and Long-term debt were ¥7 billion and ¥(8) billion, at September 30, 2020, respectively.

Transfers between levels

During the six months ended September 30, 2019, the transfers into Level 3 included ¥17 billion of Long-term debt. Transfers into Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. During the six months ended September 30, 2019, the transfers out of Level 3 included ¥6 billion of Long-term debt. Transfers out of Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. 

During the six months ended September 30, 2020, the transfers into Level 3 included ¥1 billion of net Derivative assets and  ¥19 billion of Long-term debt. Transfers into Level 3 for net Derivative assets were primarily due to changes in the observability of the inputs used to measure fair value of certain credit-related derivatives. Transfers into Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes. During the six months ended September 30, 2020, the transfers out of

Level 3 included ¥1 billion of Trading securities, ¥1 billion of net Derivative liabilities and ¥35 billion of Long-term debt. Transfers out of Level 3 for Trading securities were primarily due to increased price transparency for certain Japanese corporate bonds. Transfers out of Level 3 for net Derivative liabilities were primarily due to changes in the observability of the inputs used to measure fair value of certain credit-related derivatives. Transfers out of Level 3 for Long-term debt were primarily due to changes in the observability of the default rate when valuing certain structured notes.

Quantitative information about Level 3 fair value measurements

The following table presents information about significant unobservable inputs related to the MHFG Group’s material classes of Level 3 assets and liabilities at March 31, 2020 and September 30, 2020:

March 31, 2020
Products/Instruments	Fair value			Principal valuation technique	Unobservable inputs	Range of input values		Weighted average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		41		Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		4% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 52bps
Commercial mortgage-backed securities		615		Discounted cash flow Price-based	Discount margin		7bps - 185bps		22bps
Corporate bonds and other debt securities		1,446		Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		13% - 21% 0% - 2% 10% - 70% 61bps - 1,160bps 5bps - 1,528bps		21% 2% 67% 256bps 58bps
Derivative financial instruments, net:
Interest rate contracts		(5	)	Internal valuation model (3)	IR – IR correlation Default rate (4)		23% - 100% 0% - 63%
Foreign exchange contracts		16		Internal valuation model (3)	FX – IR correlation FX – FX correlation Default rate (4)		-37% - 49% 56% - 65% 0% - 63%
Equity-related contracts		(17	)	Internal valuation model (3)	Equity – IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 13% - 157%
Credit-related contracts		(2	)	Internal valuation model (3)	Default rate Credit correlation		0% - 15% 30% - 100%
Long-term debt		621		Internal valuation model (3)	IR – IR correlation FX – IR correlation FX – FX correlation Equity – IR correlation Equity – FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -37% - 50% 56% - 65% 25% - 25% -33% - 100% 0% - 100% 15% - 157% 0% - 12% 15% - 100%

September 30, 2020
Products/Instruments	Fair value		Principal valuation technique	Unobservable inputs	Range of input values		Average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		36	Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		3% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 50bps
Commercial mortgage-backed securities		641	Discounted cash flow Price-based	Discount margin		6bps - 185bps		21bps
Corporate bonds and other debt securities		1,754	Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		1% - 22% 0% - 3% 10% - 69% 25bps - 173bps 4bps - 696bps		19% 1% 67% 123bps 233bps
Derivative financial instruments, net:
Interest rate contracts		(3)	Internal valuation model (3)	IR - IR correlation		23% - 100%		76%
Foreign exchange contracts		19	Internal valuation model (3)	FX - IR correlation FX - FX correlation		-27% -52% 46% - 63%		28% 55%
Equity-related contracts		(11)	Internal valuation model (3)	Equity - IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 12% - 96%		25% 88% 43%
Credit-related contracts		1	Internal valuation model (3)	Default rate Credit correlation		0% - 7% 35% - 100%		1% 66%
Other contracts		1	Internal valuation model (3)	Commodity volatility		0% - 57%		36%
Long-term debt		638	Internal valuation model (3)	IR - IR correlation FX - IR correlation FX - FX correlation Equity - IR correlation Equity - FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -27% - 52% 46% - 63% 25% - 25% -33% - 100% 0% - 100% 13% - 96% 0% - 6% 18% - 100%		76% 35% 55% 25% -3% 86% 29% 2% 66%

Notes:

(1) These inputs are mainly used for determining the fair values of securitization products such as CDO, CLO and ABS, other than RMBS and CMBS.

(2) This input is mainly used for determining the fair values of Japanese corporate bonds and foreign corporate bonds.

(3) Internal valuation model includes discounted cash flow models and the Black-Scholes option pricing model.

(4) This input represents the counterparty default rate derived from the MHFG Group’s own internal credit analyses.

(5) Averages are calculated by weighting each input by the relative fair value of the respective financial instruments except for derivative related inputs where medians are used.

IR = Interest rate

FX = Foreign exchange

Uncertainty of fair value measurements relating to unobservable inputs and interrelationships among unobservable inputs

The following is a description of the uncertainty of the fair value measurements from the use of significant unobservable inputs and a description of interrelationships of the significant unobservable inputs used to measure the fair values of Level 3 assets and liabilities.

(1) Prepayment rate

The prepayment rate is the estimated rate at which voluntary unscheduled repayments of the principal of the underlying assets are expected to occur. The movement of the prepayment rate is generally negatively correlated with borrower delinquency. A change in prepayment rate would impact the valuation of the fair values of financial instruments either positively or negatively, depending on the structure of financial instruments.

(2) Default rate

The default rate is an estimate of the likelihood of not collecting contractual payments. An increase in the default rate would generally be accompanied by a decrease in the recovery rate and an increase in the discount margin. It would also generally impact the valuation of the fair values of financial instruments negatively.

(3) Recovery rate

The recovery rate is an estimate of the percentage of contractual payments that would be collected in the event of a default. An increase in recovery rate would generally be accompanied by a decrease in the default rate. It would also generally impact the valuation of the fair values of financial instruments positively.

(4) Discount margin

The discount margin is the portion of the interest rate over a benchmark market interest rate such as LIBOR or swap rates. It primarily consists of a risk premium component which is the amount of compensation that market participants require due to the uncertainty inherent in the financial instruments’ cash flows resulting from credit risk. An increase in discount margin would generally impact the valuation of the fair values of financial instruments negatively.

(5) Correlation

Correlation is the likelihood of the movement of one input relative to another based on an established relationship. The change in correlation would impact the valuation of derivatives either positively or negatively, depending on the nature of the underlying assets.

(6) Volatility

Volatility is a measure of the expected change in variables over a fixed period of time. Some financial instruments benefit from an increase in volatility and others benefit from a decrease in volatility. Generally, for a long position in an option, an increase in volatility would result in an increase in the fair values of financial instruments.

Items measured at fair value on a nonrecurring basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities primarily include items that are measured at the lower of cost or fair value, and items that were initially measured at cost and have been written down to fair value as a result of impairment. The following table shows the fair value hierarchy for these items as of March 31, 2020 and September 30, 2020:

March 31, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		90		—		—		90		136
Loans held-for-sale		26		—		20		6		26
Equity securities (without readily determinable fair values)		2		—		—		2		2
Premises and equipment-net		1		—		1		—		12
Other assets		—		—		—		—		3
Goodwill		—		—		—		—		2
Total assets measured at fair value on a nonrecurring basis		119		—		21		98		181
September 30, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		131		—		2		129		200
Loans held-for-sale		17		—		11		6		18
Equity securities (without readily determinable fair values)		1		—		—		1		2
Other investments		52		31		—		21		59
Premises and equipment-net		—		—		—		—		1
Total assets measured at fair value on a nonrecurring basis		201		31		13		157		280

Note: The fair values may not be current as of the dates indicated, but rather as of the date the fair value change occurred. Accordingly, the carrying values may not equal current fair value.

Loans in the table above became nonaccrual and are measured based upon the observable market price of the loan or the fair value of the underlying collateral. 

Loans held-for-sale in the table above are accounted for at the lower of cost or fair value at the end of the period. The items for which fair values are determined by using actual or contractually determined selling price data are classified as Level 2. Due to the lack of current observable market information, the determination of the fair values for items other than the aforementioned requires significant adjustment based upon management judgment and estimation, which results in such items being classified in Level 3 of the hierarchy.

Equity securities (without readily determinable fair values) in the table above consist of non-marketable equity securities which are measured at fair value on a nonrecurring basis, using the measurement alternative for non-marketable equity securities. These equity securities are on a nonrecurring basis either (1) written down to fair value as a result of impairment or (2) adjusted upward or downward to fair value as a result of transactions observed for the identical or similar securities of the same issuer. The fair values of the impaired non-marketable equity securities are determined primarily by using a liquidation value technique. As significant management 

judgment or estimation is required in the determination of the fair values of non-marketable equity securities, they are classified as Level 3. 

Other investments in the table above include certain equity method investments which have been impaired and written down to fair value. The fair values of the impaired marketable equity method investments are determined by their quoted market prices. As the securities are traded on an active exchange market, they are classified as Level 1. The fair values of the impaired non-marketable equity method investments are determined primarily by using a discounted cash flow model. As significant management judgment or estimation is required in the determination of the fair values of non-marketable equity method investments, they are classified as Level 3. There were no other investments measured at fair value on a nonrecurring basis as of March 31, 2020. 

Premises and equipment–net and Other assets in the table above have been impaired and written down to fair value. 

Goodwill in the table above is due to the decline in the fair value of the reporting unit, the carrying amount of the goodwill was reduced to its fair value. There was no goodwill measured at fair value on a nonrecurring basis as of September 30, 2020. 

Fair value option

The MHFG Group elected the fair value option for certain eligible financial instruments described below.

Foreign currency denominated debt securities

The MHFG Group elected the fair value option for foreign currency denominated debt securities to mitigate the volatility in earnings due to the difference in the recognition of foreign exchange risk between foreign currency denominated debt securities and financial liabilities. Following the election of the fair value option, these debt securities are reported as trading securities in Trading account assets.

Certain hybrid financial instruments 

The MHFG Group issues structured notes as part of its client-driven activities. Structured notes are debt instruments that contain embedded derivatives. The Group elected the fair value option for certain structured notes to mitigate accounting mismatches and to achieve operational simplifications. In addition, the Group measures certain notes that contain embedded derivatives at fair value under the practicability exception. These notes continue to be reported in Long-term debt and interest on these notes continues to be reported in Interest expense on long-term debt based on the contractual rates. The differences between the aggregate fair value of these notes and the aggregate unpaid principal balance of such instruments were ¥112 billion and ¥61 billion at March 31, 2020 and September 30, 2020, respectively. The net unrealized gains (losses) resulting from changes in fair values of these notes recorded in Other noninterest income (expenses) were of ¥2 billion and ¥17 billion for the six months ended September 30, 2019 and 2020, respectively. Changes in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company’s current credit spreads observable in the bond market.

Fair value of financial instruments

ASC 825, “Financial Instruments” (“ASC 825”), requires the disclosure of the estimated fair value of financial instruments. The fair value of financial instruments is the amount that would be exchanged between willing parties, other than in a forced sale or liquidation. Quoted market prices, if available, are best utilized as estimates of the fair values of financial instruments. However, since no quoted market prices are available for certain financial instruments, fair values for such financial instruments have been estimated based on management’s

assumptions, discounted cash flow models or other valuation techniques. Such estimation methods are described in more detail below. These estimates could be significantly affected by different sets of assumptions. There are certain limitations to management’s best judgment in estimating fair values of financial instruments and inherent subjectivity involved in estimation methodologies and assumptions used to estimate fair value. Accordingly, the net realizable or liquidation values could be materially different from the estimates presented below.

The following is a description of the valuation methodologies used for estimating the fair value of financial assets and liabilities not carried at fair value on the MHFG Group’s consolidated balance sheets.

Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions

The carrying value of short-term financial assets, such as cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions approximates the fair value of these assets since they generally involve limited losses from credit risk or have short-term maturities with interest rates that approximate market rates.

Investments

The fair value of held-to-maturity securities is determined primarily by using the same procedures and techniques described for trading securities and available-for-sale securities aforementioned in this Note. The fair value of non-marketable equity securities is not readily determinable, nor practicable to estimate, due to the lack of available information. Their carrying amounts of ¥420 billion and ¥402 billion at March 31, 2020 and September 30, 2020, respectively, were not included in the disclosure. 

Loans

Loans have been fair valued based on the type of loan, credit quality, prepayment assumptions and remaining maturity. The fair value of loans is determined based on discounted cash flows using interest rates approximating the MHFG Group’s current rates for similar loans. The fair value of collateral dependent nonaccrual loans is determined based on the fair value of the underlying collateral.

Other financial assets

The carrying value of other financial assets, which primarily consist of accounts receivable from brokers, dealers, and customers for securities transactions, accrued income and collateral provided for derivative transactions, approximates the fair value of these assets since they generally involve limited losses from credit risk or have short-term maturities with interest rates that approximate market rates. The majority of other financial assets is classified as Level 2, and included in the table in Note 6 “Other assets and liabilities.”

Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions

The carrying value of short-term financial liabilities, such as noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions approximates the fair value of these liabilities since they generally have short-term maturities with interest rates that approximate market rates.

Interest-bearing deposits

The carrying value of demand deposits approximates the fair value since it represents the amount payable on demand at the balance sheet date. The fair value of time deposits and certificates of deposit is primarily estimated based on discounted cash flow analysis using current interest rates for instruments with similar maturities. The carrying value of short-term certificates of deposit approximates the fair value.

Due to trust accounts

The carrying value of due to trust accounts approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates.

Other short-term borrowings

The carrying value of the majority of other short-term borrowings approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates. The fair value of certain borrowings is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s incremental borrowing rates for instruments with similar maturities.

Long-term debt

Long-term debt is fair valued using quoted market prices, if available. Otherwise, the fair value of long-term debt is estimated based on discounted cash flow analysis using interest rates approximating the MHFG Group’s incremental borrowing rates for instruments with similar maturities.

Other financial liabilities

The carrying value of other financial liabilities, which primarily consist of accounts payable to brokers, dealers, and customers for securities transactions, accrued expenses and collateral accepted for derivative transactions, approximates the fair value since they generally have short-term maturities with interest rates that approximate market rates. The majority of other financial liabilities is classified as Level 2, and included in the table in Note 6 “Other assets and liabilities.”

The fair value of certain off-balance-sheet financial instruments, such as commitments to extend credit and commercial letters of credit, was not considered material to the consolidated balance sheets at March 31, 2020 and September 30, 2020.

The following table shows the carrying amounts and fair values at March 31, 2020 and September 30, 2020, of certain financial instruments, excluding financial instruments which are carried at fair value on a recurring basis and those outside the scope of ASC 825 such as equity method investments as defined in ASC 323, “Investments-Equity Method and Joint Ventures” (“ASC 323”) and lease contracts as defined in ASC 842, “Leases” (“ASC 842”):

	March 31, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		63,755		63,755		1,318		62,437		—
Investments		862		875		493		382		—
Loans, net of allowance (Note)		86,914		88,124		—		—		88,124
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		51,954		51,954		29,812		22,142		—
Interest-bearing deposits		114,653		114,659		58,935		55,724		—
Due to trust accounts		250		250		—		250		—
Other short-term borrowings		4,914		4,914		—		4,914		—
Long-term debt		7,821		7,708		—		6,813		895
	September 30, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		58,623		58,623		42,233		16,390		—
Investments		790		812		491		321		—
Loans, net of allowance (Note)		89,611		90,983		—		—		90,983
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640		53,640		—		53,640		—
Interest-bearing deposits		118,333		118,347		—		118,347		—
Due to trust accounts		564		564		—		564		—
Other short-term borrowings		7,526		7,526		—		7,526		—
Long-term debt		8,266		8,493		—		7,155		1,338

Note: Loans, net of allowance include items measured at fair value on a nonrecurring basis.

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Offsetting of financial assets and financial liabilities

6 Months Ended

Sep. 30, 2020

Offsetting of financial assets and financial liabilities

18. Offsetting of financial assets and financial liabilities

Derivatives

The MHFG Group enters into master netting arrangements such as International Swaps and Derivatives Association, Inc. (“ISDA”) or similar agreements with counterparties to manage mainly credit risks associated with counterparty default. If the predetermined events including counterparty default occur, these enforceable master netting arrangements or similar agreements give the Group the right to offset derivative receivables and derivative payables and related financial collateral such as cash and securities with the same counterparty.

Repurchase and resale agreements and securities lending and borrowing transactions

Repurchase and resale agreements and securities lending and borrowing transactions are generally covered by industry standard master repurchase agreements and industry standard master securities lending agreements with netting terms to manage mainly credit risks associated with counterparty default. In the event of default by the counterparty, these agreements with netting terms provide the Group with the right to offset receivables and payables related to such transactions with the same counterparty, and to liquidate the collateral held.

The following table provides information about the offsetting of financial assets and financial liabilities at March 31, 2020 and September 30, 2020. The table includes derivatives, repurchase and resale agreements, and securities lending and borrowing transactions that are subject to enforceable master netting arrangements or similar agreements irrespective of whether or not they are offset on the Group’s consolidated balance sheets.

								Amounts not offset on the balance sheet (3)
	Gross amounts recognized		Gross amounts offset on the balance sheet		Net amounts presented on the balance sheet (2)			Financial instruments (4)			Cash collateral			Net amounts
	(in billions of yen)
March 31, 2020
Assets (1):
Derivatives		9,819		—		9,819			(7,723	)		(629	)		1,467
Receivables under resale agreements		17,347		—		17,347			(17,197	)		—			150
Receivables under securities borrowing transactions		1,753		—		1,753			(1,709	)		—			44
Total		28,919		—		28,919			(26,629	)		(629	)		1,661
Liabilities (1):
Derivatives		9,220		—		9,220			(7,519	)		(1,215	)		486
Payables under repurchase agreements		17,542		—		17,542			(17,191	)		—			351
Payables under securities lending transactions		626		—		626			(623	)		—			3
Total		27,388		—		27,388			(25,333	)		(1,215	)		840
September 30, 2020
Assets:
Derivatives		8,758		—		8,758	(5)		(6,373	)		(486	)		1,899
Receivables under resale agreements		12,666		—		12,666	(6)		(11,479	)		—			1,187
Receivables under securities borrowing transactions		2,186		—		2,186	(7)		(1,846	)		—			340
Total		23,610		—		23,610			(19,698	)		(486	)		3,426
Liabilities:
Derivatives		8,251		—		8,251	(5)		(6,148	)		(930	)		1,173
Payables under repurchase agreements		19,326		—		19,326	(6)		(18,038	)		—			1,288
Payables under securities lending transactions		1,476		—		1,476	(7)		(1,235	)		—			241
Total		29,053		—		29,053			(25,421	)		(930	)		2,702

Notes:

(1) Amounts relating to master netting arrangements or similar agreements where the MHFG Group does not have the legal right of set-off or where uncertainty exists as to the enforceability of these agreements are excluded. For derivatives, the table includes amounts relating to over-the-counter (“OTC”) and OTC-cleared derivatives that are subject to enforceable master netting arrangements or similar agreements.

(2) Derivative assets and liabilities are recorded in Trading account assets and Trading account liabilities, respectively.

(3) Amounts do not exceed the net amounts presented on the balance sheet and do not include the effect of overcollateralization, where it exists.

(4) For derivatives, amounts include derivative assets or liabilities and securities collateral that are eligible for offsetting under enforceable master netting arrangements or similar agreements.

(5) The amounts of derivative assets and liabilities subject to enforceable master netting arrangements or similar agreements at September 30, 2020 were ¥8,154 billion and ¥7,528 billion, respectively.

(6) The amounts of Receivables under resale agreements and Payables under repurchase agreements subject to enforceable

industry standard master repurchase agreements with netting terms at September 30, 2020 were ¥11,490 billion and ¥18,755 billion, respectively.

(7) The amounts of Receivables under securities borrowing transactions and Payables under securities lending transactions subject to enforceable industry standard master lending agreements with netting terms at September 30, 2020 were ¥1,915 billion and ¥1,243 billion, respectively.

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Repurchase agreements and securities lending transactions accounted for as secured borrowings

6 Months Ended

Sep. 30, 2020

Repurchase agreements and securities lending transactions accounted for as secured borrowings

19. Repurchase agreements and securities lending transactions accounted for as secured borrowings

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by remaining contractual maturity at March 31, 2020 and September 30, 2020:

	Overnight and continuous		Up to 30 days		31-90 days		Greater than 90 days		Total
	(in billions of yen)
March 31, 2020
Repurchase agreements		6,357		5,467		4,867		1,280		17,971
Securities lending transactions		877		231		—		316		1,424
Total		7,234		5,698		4,867		1,596		19,395
September 30, 2020
Repurchase agreements		10,154		3,684		3,162		2,326		19,326
Securities lending transactions		798		298		50		330		1,476
Total		10,952		3,982		3,212		2,656		20,802

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by class of underlying collateral at March 31, 2020 and September 30, 2020:

	Repurchase agreements		Securities lending transactions
	(in billions of yen)
March 31, 2020
Japanese government bonds and Japanese local government bonds		1,790		269
Foreign government bonds and foreign agency mortgage-backed securities		15,218		359
Commercial paper and corporate bonds		273		50
Equity securities		542		730
Other		148		16
Total (Note)		17,971		1,424
September 30, 2020
Japanese government bonds and Japanese local government bonds		3,355		372
Foreign government bonds and foreign agency mortgage-backed securities		15,100		368
Commercial paper and corporate bonds		209		53
Equity securities		579		668
Other		83		15
Total (Note)		19,326		1,476

Note: Amounts exceeded the gross amounts recognized in Note 18 “Offsetting of financial assets and financial liabilities” by ¥1,227 billion and ¥804 billion, at March 31, 2020 and September 30, 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

The MHFG Group is required to post securities as collateral with a fair value equal to or in excess of the principal amount of the cash borrowed under repurchase agreements. For securities lending transactions, the Group receives collateral in the form of cash. These contracts involve risks, including (1) the counterparty may

fail to return the securities at maturity and (2) the fair value of the securities posted may decline below the amount of the Group’s obligation and therefore the counterparty may require additional amounts. The Group attempts to mitigate these risks by entering into transactions mainly with central counterparty clearing houses which revalue assets and perform margin maintenance activities on a regular basis, diversifying the maturities and counterparties, and using mainly highly liquid securities.

The amounts or composition of assets pledged as collateral for borrowings and for other purposes have not changed significantly since March 31, 2020, except for loans. Loans pledged as collateral at September 30, 2020 and March 31, 2020 accounted for approximately 5% and 2% of total assets, respectively. See Note 8 “Pledged assets and collateral” to the consolidated financial statements in our annual report on Form 20-F for the year ended March 31, 2020 for additional information.

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Business segment information

6 Months Ended

Sep. 30, 2020

Business segment information

20. Business segment information

The MHFG Group consists of the following five in-house companies which are categorized 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. These customer segments are regarded as operating segments and constitute reportable segments.

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

Retail & Business Banking Company

This company provides financial services for individual customers, small and medium-sized enterprises and middle market firms in Japan.

Corporate & Institutional Company

This company provides financial services for large corporations, financial institutions and public corporations in Japan.

Global Corporate Company

This company provides financial services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers.

Global Markets Company

This company invests in financial products with market risk, such as interest rate risk, equity risk, and credit risk.

Asset Management Company

This company develops financial products and provides financial 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. In addition, the format and information are presented primarily on the basis of Japanese GAAP. Therefore, they are not consistent with the consolidated financial statements prepared in accordance with U.S. GAAP. A reconciliation is provided for the total amount of all business segments’ “Net business profits (losses) + Net gains (losses) related to ETFs and others” with income before income tax expense under U.S. GAAP, and the total amount of all business segments’ “Fixed assets” with the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets reported under U.S. GAAP. “Fixed assets” pertaining to MHBK, MHTB, and MHSC have been allocated to each segment.

	MHFG (Consolidated)
Six months ended September 30, 2019 (1)	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		322.0			220.2		203.9		235.0		25.5		16.2			1,022.8
General and administrative expenses (3)		330.7			104.0		118.6		101.4		16.4		17.3			688.4
Equity in earnings (losses) of equity method investees—net		6.4			1.1		6.0		—		0.5		5.0			19.0
Amortization of goodwill and others		1.4			0.1		0.2		0.5		3.9		0.5			6.6
Others		—			—		—		—		—		(5.9	)		(5.9	)
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(3.7	)		117.2		91.1		133.1		5.7		(2.5	)		340.9
Fixed assets (5)		508.2			208.4		160.1		92.8		0.1		732.0			1,701.6

	MHFG (Consolidated)
Six months ended September 30, 2020	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		307.4			234.2		222.6		291.5		23.6		14.0			1,093.3
General and administrative expenses (3)		315.0			104.6		121.4		105.6		15.7		17.0			679.3
Equity in earnings (losses) of equity method investees—net		3.6			2.4		5.8		—		0.4		(0.7	)		11.5
Amortization of goodwill and others		1.1			0.1		0.2		0.4		3.8		0.5			6.1
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(5.1	)		131.9		106.8		185.5		4.5		(4.2	)		419.4
Fixed assets (5)		518.5			186.3		157.0		90.9		0.1		768.5			1,721.3

Notes:

(1) Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

(2) “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by MHBK and MHTB on their non-consolidated basis and net gains (losses) on operating investment securities of MHSC on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

(3) “General and administrative expenses” excludes non-allocated gains (losses), net.

(4) Net business profits (losses) is used in Japan as a measure of the profitability of core banking operations, and is defined as gross profits (as defined above) less general and administrative expenses (excluding non-allocated gains (losses), net) plus equity in earnings (losses) of equity method investees-net and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan.

(5) “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

(6) “Others” includes the following items:

• profits and expenses pertaining to consolidated subsidiaries that are not subject to allocation;

• consolidating adjustments, including elimination of internal transaction between each segment;

• equity in earnings (losses) of equity method investees-net that are not subject to allocation; and

• profits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.

Reconciliation

As explained above, the measurement bases of the internal management reporting systems and the income and expenses items included are different from the accompanying consolidated statements of income. Therefore, it is impracticable to present reconciliations of all the business segment’s information, other than net business profits (losses), to the corresponding items in the accompanying consolidated statements of income. A reconciliation of “Net business profits (losses) + Net gains (losses) related to ETFs and others” for the six months ended September 30, 2019 and 2020 presented above to income before income tax expense shown on the consolidated statements of income and a reconciliation of “Fixed assets” at September 30, 2019 and 2020 to the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets are as follows:

	Six months ended September 30,
	2019			2020
	(in billions of yen)
Net business profits (losses) + Net gains (losses) related to ETFs and others		340.9			419.4
Adjustment to reconcile management reporting to Japanese GAAP:
General and administrative expenses: non-allocated gains (losses), net		24.5			4.1
Expenses related to portfolio problems (including reversal of (provision for) general reserve for losses on loans)		(19.1	)		(84.8	)
Gains on reversal of reserves for possible losses on loans, and others		7.9			3.6
Net gains (losses) related to stocks—Net gains (losses) related to ETFs and others		55.4			(50.5	)
Net extraordinary gains (losses)		(5.0	)		65.8
Others		(13.1	)		(24.2	)
Income before income tax expense under Japanese GAAP		391.5			333.4
Adjustment to reconcile Japanese GAAP to U.S. GAAP:
Derivative financial instruments and hedging activities		105.0			(12.9	)
Investments		(163.9	)		285.4
Loans		—			(10.8	)
Allowances for credit losses (1)		0.5			35.8
Premises and equipment		(51.5	)		(37.1	)
Land revaluation		0.5			2.7
Business combinations		4.1			(4.3	)
Pension liabilities		(27.3	)		(84.5	)
Consolidation of variable interest entities		40.3			36.6
Foreign currency translation		14.3			(0.2	)
Others		(3.0	)		3.7
Income before income tax expense under U.S. GAAP		310.5			547.8

	As of September 30,
	2019		2020
	(in billions of yen)
Fixed assets		1,701.6		1,721.3
U.S. GAAP adjustments (2)		964.5		818.4
Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets		2,666.1		2,539.7

Notes:

(1) The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020. Allowances for credit losses for the six months ended September 30, 2020 substitute allowances for loan losses and off-balance-sheet instruments for the six months ended September 30, 2019. See Note 2 “Issued accounting pronouncements” for further details.

(2) The U.S. GAAP adjustments are primarily comprised of GAAP differences mainly from right-of-use assets related to operating leases not recognized under Japanese GAAP; internally developed software, which was impaired under Japanese GAAP; land, which was revalued under Japanese GAAP; and the consolidation of certain variable interest entities, which are not consolidated under Japanese GAAP.

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Subsequent events

6 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

21. Subsequent events

Share consolidation of MHFG’s common stock

On June 25, 2020, a 1-for-10 share consolidation was approved at the Ordinary General Meeting of Shareholders. It became effective on October 1, 2020 based on the shares owned by the shareholders recorded in the shareholder register as of September 30, 2020. For additional information, see Note 1 “Basis of presentation.”

Transition from defined benefit pension plan to defined contribution pension plan

MHFG and certain domestic subsidiaries changed their defined benefit pension plans including partial transition from the defined benefit pension plans to the defined contribution pension plans, effective as of October 1, 2020. This partial transition constitutes a settlement under ASC 715 and any gain or loss is required to be recognized in the consolidated results of operations once settlement criteria are met. As a result of the settlement, the benefit obligations and the plan assets decreased by ¥22 billion and ¥24 billion, respectively.

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Basis of presentation (Policies)

6 Months Ended

Sep. 30, 2020

Basis of presentation

1. Basis of presentation

Mizuho Financial Group, Inc. (“MHFG”) is a joint stock corporation with limited liability under the laws of Japan. MHFG is a holding company for Mizuho Bank, Ltd. (“MHBK”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Securities Co., Ltd. (“MHSC”), Asset Management One Co., Ltd. (“Asset Management One”), and other subsidiaries. MHFG, through its subsidiaries (“the MHFG Group,” or “the Group”), provides domestic and international financial services in Japan and other countries. For a discussion of the Group’s segment information, see Note 20 “Business segment information.” 

MHFG and its domestic subsidiaries as well as its foreign subsidiaries maintain their accounting records in accordance with the accounting standards of Japan and those standards of the countries in which they are domiciled. Certain adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements to conform them to the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements are stated in Japanese yen, the currency of the country in which MHFG is incorporated and principally operates.

The accompanying consolidated financial statements include the accounts of MHFG and its subsidiaries. MHFG’s interim financial reporting period ends on September 30. Certain of MHFG’s subsidiaries have different interim financial reporting periods than September 30. For those subsidiaries with interim financial reporting periods within three months of MHFG’s interim financial reporting period, the effect of intervening events that materially affect the financial position or results of operations through the date of each of the periods presented in the MHFG’s consolidated financial statements have been considered for adjustment and/or disclosure. When determining whether to consolidate investee entities, the MHFG Group performs an analysis of the facts and circumstances of the particular relationships between the MHFG Group and the investee entities as well as the ownership of voting shares. The consolidated financial statements also include the accounts of VIEs for which MHFG or its subsidiaries have been determined to be the primary beneficiary in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”). All significant intercompany transactions and balances have been eliminated upon consolidation. The MHFG Group accounts for investments in entities over which it has significant influence by using the equity method of accounting. These investments are included in Other investments and the Group’s proportionate share of income or loss is included in Equity in earnings (losses) of equity method investees-net. 

On June 25, 2020, a 1-for-10 share consolidation was approved at the Ordinary General Meeting of Shareholders and it became effective on October 1, 2020. All share and per share information with respect to MHFG’s common stock and preferred stock have been restated to reflect the effect of the share consolidation and related amendments to the articles of incorporation for all periods presented. See Equity on the consolidated balance sheets, Earnings per common share and Dividends per share on the consolidated statements of income, Note 7 “Preferred and common stock,” and Note 10 “Earnings per common share” for the restated figures. In addition, certain other comparative amounts for the prior period have been reclassified in order to conform to the current period’s presentation.

The unaudited consolidated financial statements should be read in conjunction with the audited financial statements and related notes thereto included in the annual financial statements for the fiscal year ended March 31, 2020.

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. GAAP, but is not required for interim reporting purposes, has been condensed or omitted.

Use of estimates

Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Specific areas, among others, requiring the application of management’s estimates and judgment include assumptions pertaining to the allowance for credit losses, valuation of deferred tax assets, valuation of derivative financial instruments, valuation of investments and valuation of pension and other employee benefits. During times of pandemics and dislocated markets, such as COVID-19, estimates become more sensitive and it is reasonably possible that actual results could differ from estimates and assumptions made. The financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods.

Financial instruments—current expected credit losses ("CECL")

Financial instruments—current expected credit losses (“CECL”)

The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance-sheet instrument exposures. This framework requires management’s estimate to reflect credit losses over the instrument’s remaining expected lives and consider expected future changes in macroeconomic conditions. The following note and Note 2 “Issued accounting pronouncements,” Note 3 “Investments,” Note 4 “Loans” and Note 5 “Allowance for credit losses on loans” provide further information about the impact that the adoption of ASC 326, “Financial Instruments - Credit Losses” (“ASC 326”) had on the MHFG Group.

Allowance for credit losses on loans

Allowance for credit losses on loans

Effective April 1, 2020, the allowance for credit losses on loans is established for current expected credit losses on the MHFG Group’s loan portfolio in accordance with ASC 326. Prior to April 1, 2020, the allowance for credit losses on loans was established based on an incurred loss model in accordance with ASC 310, “Receivables” (“ASC 310”) and ASC 450, “Contingencies” (“ASC 450”).

The MHFG Group makes adjustments to the allowance for credit losses on loans through Provision (credit) for credit losses in the consolidated statements of income in each subsequent reporting period. Loan principal that management judges to be uncollectible, based on detailed loan reviews and a credit quality assessment, is charged off against the allowance for credit losses on loans. In general, the Group charges off loans when the Group determines that the obligor should be classified as substantially bankrupt or bankrupt. See Note 4 “Loans” for the definitions of obligor categories. Obligors in the retail portfolio segment are generally determined to be substantially bankrupt when they are past due for more than six months, and as for obligors in the corporate portfolio segment, the Group separately monitors the credit quality of each obligor without using time-based triggers. The Group does not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans.

The MHFG Group maintains an appropriate allowance for credit losses on loans to represent management’s estimate of the expected credit losses in the Group’s loan portfolio. The management evaluates the appropriateness of the allowance for credit losses on loans semi-annually. The allowance considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each instrument is determined by considering expected prepayments, contractual terms and cancellation features.

When determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is based on the Group’s stress testing and in line with the scenario used for the Group’s business plan. If the scenario does not reflect a sudden change in economic conditions adequately, it could be possible to make adjustments to the scenario. After the forecast period, the Group reverts to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives. The macroeconomic scenario is updated at least semi-annually and is reviewed accordingly to reflect current economic conditions and the Group’s expectation of future conditions on a timely basis. For April 1, 2020 and September 30, 2020, the Group used the most recent macroeconomic scenario available during the Group’s credit loss estimation process.

In terms of the internal risk ratings, for the corporate portfolio segment, the credit quality review process and the credit rating process serve as the basis for determining the allowance for credit losses on loans. Through such processes loans are categorized into groups to reflect the probability of default, whereby the MHFG Group’s management assesses the ability of borrowers to service their debt, taking into consideration current financial information, ability to generate cash, historical payment experience, analysis of relevant industry segments and current trends. For the retail portfolio segment, the different categories of past due status of loans are primarily utilized in the credit quality review and the credit rating processes as the basis for determining the allowance for credit losses on loans.

In general, the MHFG Group estimates expected credit losses collectively on the loans in the case of normal and watch obligors, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The allowance for credit losses on nonaccrual loans includes the allowance for groups of loans which were collectively evaluated for expected credit losses, in addition to the allowance for those loans that were individually evaluated for expected credit losses. See Note 4 “Loans” for the definitions of obligor categories and classification of nonaccrual loans.

The estimation of expected credit losses that are evaluated collectively begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one obligor category or rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to the MHFG Group’s estimated exposure at default. The credit loss factors incorporate the probability of default as well as the loss given default based on the historical loss rates and the external ratings such as S&P. The model and inputs used to determine credit losses on loans that are evaluated collectively are analyzed on a periodic basis by comparing the estimated values with the actual results subsequent to the balance sheet date. 

The MHFG Group divides its overall portfolio into domestic and foreign portfolios, and categorizes the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions.

The corporate portfolio segment consists of loans originated primarily by MHBK and MHTB, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. For the corporate portfolio segment, the MHFG Group considers key economic variables such as the Japanese and global gross domestic products and the Japanese interest rates in determining credit loss factors.

The retail portfolio segment consists mainly of residential mortgage loans originated by MHBK, and it is divided into two classes based on their risk characteristics: housing loan and others. For the retail portfolio segment, the Japanese unemployment rate is applied as a key factor. As it pertains to troubled debt restructuring (“TDR”) loans in the retail portfolio segment, which are subject to collective evaluation for expected credit losses, the restructuring itself, as well as subsequent payment defaults, if any, are considered in determining obligor categories. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off, or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. 

The allowance recorded for individually evaluated loans is based on (1) the present value of expected future cash flows, after considering the restructuring effect and subsequent payment default with respect to TDRs, discounted at the loan’s initial effective interest rate, or (2) the loan’s observable market price, or (3) the fair value of the collateral if the loan is collateral dependent. The collateral that the MHFG Group obtains for loans consists primarily of real estate. In obtaining the collateral, the Group evaluates the fair value of the collateral and its legal enforceability. The Group also performs subsequent re-evaluations at least once a year. As it pertains to real estate collateral, valuation is generally performed by an appraising subsidiary which is independent from the Group’s loan origination departments by using generally accepted valuation techniques such as (1) the replacement cost approach, (2) the sales comparison approach or (3) the income approach. In the case of large real estate collateral, the Group generally engages third-party appraisers to perform the valuation. 

The MHFG Group’s methodology for determining the appropriate allowance for credit losses on loans also considers the imprecision inherent in the methodologies used. As a result, the amounts determined under the methodologies described above could be adjusted by management to consider the potential impact of other qualitative factors which include, but are not limited to, imprecision in macroeconomic scenario assumptions and emerging risks related to changes in the environment that are affecting specific portfolio segments. The Group incorporated the estimated impact of COVID-19 pandemic into the macroeconomic scenario by using assumptions such as anticipated business recovery period and current forecast for the growth rate of gross domestic product. This macroeconomic forecast is used to generate an updated credit loss estimate that is the primary driver of the Group’s provision for credit losses for the six months ended September 30, 2020. 

Allowance for credit losses on available-for-sale securities

Allowance for credit losses on available-for-sale securities

The MHFG Group performs periodic reviews to identify impaired securities in accordance with ASC 326. Available-for-sale securities are impaired if the fair value is less than the amortized cost (excluding accrued interest receivable). For available-for-sale debt securities, in the cases where the Group has the intent to sell an available-for-sale debt security or more likely than not will be required to sell an available-for-sale debt security before the recovery of its amortized cost basis, the entire difference between amortized cost basis and fair value

is recognized immediately through earnings. In other cases, the Group evaluates expected cash flows to be received and determines if a credit loss exists, and if so, the amount of the credit loss is recognized in Provision (credit) for credit losses, while the remaining decline in fair value is recognized in other comprehensive income, net of applicable taxes. The Group generally does not record an allowance for credit losses for accrued interest receivables related to available-for-sale securities because these receivables are reversed through interest income, consistent with the Group’s past due policies. For additional information, see Note 4 “Loans.” Before the adoption of ASC 326, the previous other-than-temporary impairment model was applied for available-for-sale debt securities.

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Issued accounting pronouncements (Tables)

6 Months Ended

Sep. 30, 2020

Accounting Standards Update and Change in Accounting Principle [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table reconciles the closing allowance for loans and off-balance-sheet instruments in accordance with ASC 310 and ASC 450 at March 31, 2020 to the opening allowance determined with ASC 326 at April 1, 2020: 

	At March 31, 2020 (ASC 310/450)		Transition Adjustment		At April 1, 2020 (ASC 326)
	(in billions of yen)
Loans:
Corporate		413		78		491
Retail		28		78		106
Off-balance-sheet instruments		46		20		66

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Investments (Tables)

6 Months Ended

Sep. 30, 2020

Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Available-for-Sale and Held-to-Maturity Securities

The amortized cost, net of allowance for credit losses, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity securities at March 31, 2020 and September 30, 2020 are as follows:

	Amortized cost, net (5)(6)		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		12,651,677		1,319		50,224		12,602,772
Japanese local government bonds		272,412		649		494		272,567
U.S. Treasury bonds and federal agency securities		927,172		7,733		—		934,905
Other foreign government bonds		1,408,009		3,273		202		1,411,080
Agency mortgage-backed securities (1)		494,958		10,490		434		505,014
Residential mortgage-backed securities		83,077		1,405		151		84,331
Commercial mortgage-backed securities		609,559		5,551		106		615,004
Japanese corporate bonds and other debt securities (2)		1,836,540		7,489		8,772		1,835,257
Foreign corporate bonds and other debt securities (3)		849,595		2,595		168		852,022
Total		19,132,999		40,504		60,551		19,112,952
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,936		13,357		—		493,293
Agency mortgage-backed securities (4)		382,095		1,245		1,303		382,037
Total		862,031		14,602		1,303		875,330
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		19,964,553		1,084		45,274		19,920,363
Japanese local government bonds		406,873		757		446		407,184
U.S. Treasury bonds and federal agency securities		625,398		1,388		2		626,784
Other foreign government bonds		1,353,376		3,020		74		1,356,322
Agency mortgage-backed securities (1)		509,808		10,650		433		520,025
Residential mortgage-backed securities		78,883		1,220		123		79,980
Commercial mortgage-backed securities		634,537		6,674		69		641,142
Japanese corporate bonds and other debt securities (2)		2,066,234		12,579		8,785		2,070,028
Foreign corporate bonds and other debt securities (3)		922,752		3,410		1,190		924,972
Total		26,562,414		40,782		56,396		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		479,947		11,505		—		491,452
Agency mortgage-backed securities (4)		310,031		10,666		—		320,697
Total		789,978		22,171		—		812,149

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

(2) Other debt securities presented in this line primarily consist of Japanese asset-backed securities (“ABS”), of which the total fair values was ¥139,888 million at September 30, 2020.

(3) Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and ABS, of which the total fair values were ¥271,387 million at March 31, 2020, and ¥319,044 million at September 30, 2020.

(4) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

(5) Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

(6) Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities by Contractual Maturity

The amortized cost, net of allowance for credit losses, and fair value of available-for-sale and held-to-maturity securities at September 30, 2020 are shown in the table below based on their contractual maturities. Expected maturities may differ from contractual maturities because some securities are not due at a single maturity date, and some securities, such as mortgage-backed securities, contain embedded call or prepayment options.

Amortized cost	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,588,119		3,630,141		1,550,745		195,548		19,964,553
Japanese local government bonds		30,537		209,317		149,994		17,025		406,873
U.S. Treasury bonds and federal agency securities		625,398		—		—		—		625,398
Other foreign government bonds		1,024,723		326,539		1,058		1,056		1,353,376
Agency mortgage-backed securities		—		—		—		509,808		509,808
Residential mortgage-backed securities		—		—		—		78,883		78,883
Commercial mortgage-backed securities		6,080		252,315		375,342		800		634,537
Japanese corporate bonds and other debt securities		94,088		820,338		587,344		564,464		2,066,234
Foreign corporate bonds and other debt securities		453,235		343,496		123,123		2,898		922,752
Total		16,822,180		5,582,146		2,787,606		1,370,482		26,562,414
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		479,947		—		—		479,947
Agency mortgage-backed securities		—		—		—		310,031		310,031
Total		—		479,947		—		310,031		789,978
Fair value	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
	(in millions of yen)
Available-for-sale securities:
Debt securities:
Japanese government bonds		14,586,652		3,619,928		1,522,868		190,915		19,920,363
Japanese local government bonds		30,553		209,557		149,982		17,092		407,184
U.S. Treasury bonds and federal agency securities		626,784		—		—		—		626,784
Other foreign government bonds		1,025,928		328,280		1,058		1,056		1,356,322
Agency mortgage-backed securities		—		—		—		520,025		520,025
Residential mortgage-backed securities		—		—		—		79,980		79,980
Commercial mortgage-backed securities		6,085		254,025		380,219		813		641,142
Japanese corporate bonds and other debt securities		94,089		819,848		585,922		570,169		2,070,028
Foreign corporate bonds and other debt securities		454,356		344,474		123,244		2,898		924,972
Total		16,824,447		5,576,112		2,763,293		1,382,948		26,546,800
Held-to-maturity securities:
Debt securities:
Japanese government bonds		—		491,452		—		—		491,452
Agency mortgage-backed securities		—		—		—		320,697		320,697
Total		—		491,452		—		320,697		812,149

Gross Unrealized Losses and Fair Value of Available-for-Sale and Held-to-Maturity Securities, Aggregated by Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position

The following table shows the gross unrealized losses and fair value of available-for-sale and held-to-maturity securities, aggregated by the length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2020 and September 30, 2020:

	Less than 12 months				12 months or more				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in millions of yen)
March 31, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		10,339,320		43,204		283,561		7,020		10,622,881		50,224
Japanese local government bonds		162,665		418		34,114		76		196,779		494
U.S. Treasury bonds and federal agency securities		—		—		—		—		—		—
Other foreign government bonds		196,990		202		—		—		196,990		202
Agency mortgage-backed securities (1)		30,913		227		9,504		207		40,417		434
Residential mortgage-backed securities		9,524		62		5,450		89		14,974		151
Commercial mortgage-backed securities		15,115		85		7,478		21		22,593		106
Japanese corporate bonds and other debt securities		669,572		5,507		608,361		3,265		1,277,933		8,772
Foreign corporate bonds and other debt securities		152,058		165		5,564		3		157,622		168
Total		11,576,157		49,870		954,032		10,681		12,530,189		60,551
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		191,244		1,303		191,244		1,303
Total		—		—		191,244		1,303		191,244		1,303
September 30, 2020
Available-for-sale securities:
Debt securities:
Japanese government bonds		9,978,136		23,884		1,234,118		21,390		11,212,254		45,274
Japanese local government bonds		126,991		246		72,086		200		199,077		446
U.S. Treasury bonds and federal agency securities		29,093		2		—		—		29,093		2
Other foreign government bonds		278,022		74		—		—		278,022		74
Agency mortgage-backed securities (1)		30,948		202		9,799		231		40,747		433
Residential mortgage-backed securities		9,567		41		6,794		82		16,361		123
Commercial mortgage-backed securities		6,052		15		11,396		54		17,448		69
Japanese corporate bonds and other debt securities		565,278		3,028		597,714		5,757		1,162,992		8,785
Foreign corporate bonds and other debt securities		245,311		1,187		2,712		3		248,023		1,190
Total		11,269,398		28,679		1,934,619		27,717		13,204,017		56,396
Held-to-maturity securities:
Debt securities:
Agency mortgage-backed securities (2)		—		—		—		—		—		—
Total		—		—		—		—		—		—

Notes:

(1) Agency mortgage-backed securities presented in this line consist of Japanese agency mortgage-backed securities, of which the fair values were ¥40,417 million at March 31, 2020, and ¥40,747 million at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise.

(2) All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

Realized Gains and Losses on Sales of Available-for-Sale Securities

The following table shows the realized gains and losses on sales of available-for-sale securities for the six months ended September 30, 2019 and 2020. See “Consolidated Statements of Cash Flows (Unaudited)” for the proceeds from sales of investments.

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Gross realized gains		36,183			5,101
Gross realized losses		(6,167	)		(3,694	)
Net realized gains (losses) on sales of available-for-sale securities		30,016			1,407

Summary of Details of Net Gains and Losses on Equity Securities

The following table shows the details of the net gains and losses on Equity securities for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net gains (losses) recognized during the period on equity securities		(126,648	)		266,119
Less: Net gains (losses) recognized during the period on equity securities sold during the period		(3,084	)		34,985
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting period		(123,564	)		231,134

Summary of Equity Securities Without Readily Determinable Fair Values

The following table shows carrying amounts of equity securities without readily determinable fair values, for which the measurement alternative is used, and cumulative amounts due to downward adjustments and impairments and upward adjustments, at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Carrying amounts at the end of the period		419,775		402,194
Downward adjustments and impairments		2,435		3,800
Upward adjustments		9,128		9,104

The following table shows amounts recognized in earnings during the period due to downward adjustments and impairments and upward adjustments for equity securities without readily determinable fair values.

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Downward adjustments and impairments		430		1,411
Upward adjustments		6,527		34

Summary of Composition of Other Investments

The following table summarizes the composition of Other investments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Equity method investments		404,513		412,281
Investments held by consolidated investment companies		39,438		55,682
Total		443,951		467,963

XML

Loans (Tables)

6 Months Ended

Sep. 30, 2020

Loans Outstanding by Domicile and Industry of Borrower

The table below presents loans outstanding by domicile and industry of borrower at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Domestic:
Manufacturing		9,731,028		11,700,375
Construction and real estate		9,603,433		10,172,843
Services		5,992,511		6,294,310
Wholesale and retail		5,219,727		5,415,605
Transportation and communications		3,832,884		3,978,708
Banks and other financial institutions		4,634,442		4,719,863
Government and public institutions		2,198,805		2,639,956
Other industries (Note)		5,389,347		5,517,220
Individuals:
Mortgage loans		8,567,099		8,357,042
Other		861,235		798,475
Total domestic		56,030,511		59,594,397
Foreign:
Commercial and industrial		20,818,709		20,190,048
Banks and other financial institutions		10,475,277		10,502,326
Government and public institutions		317,284		308,171
Other		35,388		37,572
Total foreign		31,646,658		31,038,117
Total		87,677,169		90,632,514
Less: Unearned income and deferred loan fees—net		149,081		156,767
Total loans before allowance for credit losses on loans		87,528,088		90,475,747

Note: Other industries of domestic includes trade receivables and lease receivables of consolidated VIEs.

Credit Quality Information of Loans Based on MHFG Group's Internal Rating System

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2020 and September 30, 2020:

	September 30, 2020																March 31, 2020
	Term loans by origination year												Revolving Loans		Total		Total
	2020		2019		2018		2017		2016		Prior to 2016
	(in millions of yen)
Domestic:
Corporate:
Large companies:
Normal obligors		9,754,935		7,343,964		7,517,546		2,710,108		2,498,507		2,978,989		8,279,869		41,083,918		37,979,353
Watch obligors excluding special attention obligors		424,745		92,446		82,206		56,363		33,737		33,847		196,544		919,888		840,289
Nonaccrual loans		142,730		55,771		41,249		20,295		11,956		29,551		136,213		437,765		343,439
Small and medium-sized companies:
Normal obligors		381,487		543,822		456,363		260,146		232,638		485,430		502,124		2,862,010		2,941,599
Watch obligors excluding special attention obligors		46,537		32,174		37,116		13,321		15,523		28,933		30,521		204,125		189,075
Nonaccrual loans		58,754		15,624		4,294		5,900		2,636		9,849		28,118		125,175		119,759
Retail:
Housing Loan:
Normal obligors		437,780		668,358		627,669		634,528		783,929		4,879,204		—		8,031,468		8,215,781
Watch obligors excluding special attention obligors		560		1,178		1,827		1,579		2,217		43,397		—		50,758		57,478
Nonaccrual loans		18,941		6,528		1,525		1,432		1,778		38,456		—		68,660		57,696
Others:
Normal obligors		327,506		209,899		152,679		106,359		102,735		361,209		523,640		1,784,027		1,783,779
Watch obligors excluding special attention obligors		36,270		17,587		11,754		6,911		4,534		6,846		12,185		96,087		81,463
Nonaccrual loans		26,633		6,905		1,945		1,000		965		9,532		11,567		58,547		59,782
Sovereign
Normal obligors		1,907,424		264,528		126,868		87,021		92,664		485,721		13,700		2,977,926		2,559,420
Watch obligors excluding special attention obligors		2,859		6,914		2,951		1,134		257		34		—		14,149		10,939
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Banks and other financial institutions
Normal obligors		15,637		155,415		261,601		26,841		85,303		74,009		187,102		805,908		790,659
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—		—
Nonaccrual loans		167		—		180		—		—		—		1,600		1,947		—
Total domestic		13,582,965		9,421,113		9,327,773		3,932,938		3,869,379		9,465,007		9,923,183		59,522,358		56,030,511
Foreign:
Corporate:
Normal obligors		10,181,936		5,813,342		3,419,918		1,298,791		804,580		1,624,422		4,630,806		27,773,795		28,555,991
Watch obligors excluding special attention obligors		172,225		43,785		47,998		37,862		15,899		35,532		84,646		437,947		336,470
Nonaccrual loans		41,085		25,405		12,954		5,422		8,448		21,241		43,592		158,147		135,522
Retail:
Normal obligors		3,613		9,806		6,008		2,956		1,517		2,527		102		26,529		30,862
Watch obligors excluding special attention obligors		174		1,110		647		361		109		11		—		2,412		858
Nonaccrual loans		26		506		287		103		44		1		—		967		6
Sovereign
Normal obligors		91,542		99,248		32,403		149,794		5,907		90,988		81,008		550,890		558,384
Watch obligors excluding special attention obligors		—		—		—		—		—		20,124		—		20,124		19,971
Nonaccrual loans		—		741		—		—		—		—		—		741		—
Banks and other financial institutions
Normal obligors		750,039		654,755		421,876		95,375		4,509		3,536		49,997		1,980,087		2,008,516
Watch obligors excluding special attention obligors		912		152		686		—		—		—		—		1,750		78
Nonaccrual loans		—		—		—		—		—		—		—		—		—
Total foreign		11,241,552		6,648,850		3,942,777		1,590,664		841,013		1,798,382		4,890,151		30,953,389		31,646,658
Total		24,824,517		16,069,963		13,270,550		5,523,602		4,710,392		11,263,389		14,813,334		90,475,747		87,677,169

Notes:

(1) Special attention obligors are watch obligors with debt in TDR or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual.

(2) The primary component of the retail portfolio segment is housing loans to individuals which obligor category is classified based on past due status. The trigger to reclassify obligors from normal obligors to watch obligors excluding special attention obligors is when the past due status is more than 30 days.

(3) There were no significant revolving line of credit arrangements that converted to term loans during the six months ended September 30, 2020.

Impaired Loans Information

The table below presents nonaccrual loans information at March 31, 2020 and September 30, 2020: 

	Amortized cost
	Nonaccrual loans with an allowance		Nonaccrual loans without an allowance		Total nonaccrual loans		Interest income recognized
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		333,442		9,997		343,439		4,155
Small and medium-sized companies		102,786		16,973		119,759		1,724
Retail:
Housing Loan		28,263		29,433		57,696		937
Others		36,220		23,562		59,782		846
Total domestic		500,711		79,965		580,676		7,662
Foreign:
Total foreign		95,289		40,239		135,528		3,032
Total		596,000		120,204		716,204		10,694
September 30, 2020
Domestic:
Corporate:
Large companies		416,637		21,128		437,765		2,501
Small and medium-sized companies		105,556		19,619		125,175		777
Retail:
Housing Loan		40,358		28,302		68,660		535
Others		36,270		22,277		58,547		373
Banks and other financial institutions		1,947		—		1,947		3
Total domestic		600,768		91,326		692,094		4,189
Foreign:
Total foreign		110,295		49,560		159,855		958
Total		711,063		140,886		851,949		5,147

Notes:

(1) Amounts represent the outstanding balances of nonaccrual loans. The MHFG Group’s policy for placing loans in nonaccrual status corresponds to the Group’s definition of nonaccrual loans.

(2) Amounts represent the amount of interest income on nonaccrual loans recognized on a cash basis and included in Interest income on loans in the consolidated statements of income.

(3) The majority of total foreign consist of corporate.

Troubled Debt Restructurings Entered Modified Periods by Type of Concession Granted

The following table presents modified loans that were determined to be TDRs during the six months ended September 30, 2019 and 2020:

	Loan forgiveness or debt to equity swaps				Interest rate reduction and/or postponement of principal and/or interest
	Recorded investment (1)		Charge-offs
	(in millions of yen)
September 30, 2019
Domestic:
Corporate:
Large companies		689		3,806		152,373
Small and medium-sized companies		—		—		55,344
Retail:
Housing Loan		—		—		3,742
Others		—		—		7,468
Total domestic		689		3,806		218,927
Foreign:
Total foreign		470		4,922		38,646
Total		1,159		8,728		257,573
September 30, 2020
Domestic:
Corporate:
Large companies		—		—		264,952
Small and medium-sized companies		—		—		54,760
Retail:
Housing Loan		—		—		14,690
Others		—		—		9,130
Banks and other financial institutions		—		—		1,600
Total domestic		—		—		345,132
Foreign:
Total foreign		—		—		80,889
Total		—		—		426,021

Notes:

(1) Amounts represent the book values of loans immediately after the restructurings.

(2) The majority of total foreign consist of corporate.

Payment Defaults Occurred During Periods with Respect to Loans Modified as Troubled Debt Restructurings within Previous Twelve Months

The following table presents payment defaults which occurred during the six months ended September 30, 2019 and 2020 with respect to the loans modified as TDRs within the previous twelve months:

	Recorded investment
	September 30, 2019		September 30, 2020
	(in millions of yen)
Domestic:
Corporate:
Large companies		5,875		2,084
Small and medium-sized companies		2,444		3,861
Retail:
Housing Loan		686		505
Others		1,349		1,104
Total domestic		10,354		7,554
Foreign:
Total foreign		6,436		43,786
Total		16,790		51,340

Age Analysis of Past Due Loans

The table below presents an analysis of the age of the amortized cost basis in loans that are past due at March 31, 2020 and September 30, 2020:

	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total
	(in millions of yen)
March 31, 2020
Domestic:
Corporate:
Large companies		2,146		2,013		38,364		42,523		39,120,558		39,163,081
Small and medium-sized companies		2,347		894		9,187		12,428		3,238,005		3,250,433
Retail:
Housing Loan		15,703		10,078		26,690		52,471		8,278,484		8,330,955
Others		6,179		2,013		15,239		23,431		1,901,593		1,925,024
Sovereign		—		—		—		—		2,570,359		2,570,359
Banks and other financial institutions		—		—		—		—		790,659		790,659
Total domestic		26,375		14,998		89,480		130,853		55,899,658		56,030,511
Foreign:
Total foreign		1,214		181		28,722		30,117		31,616,541		31,646,658
Total		27,589		15,179		118,202		160,970		87,516,199		87,677,169
September 30, 2020
Domestic:
Corporate:
Large companies		311		269		38,868		39,448		42,402,123		42,441,571
Small and medium-sized companies		2,093		604		11,226		13,923		3,177,387		3,191,310
Retail:
Housing Loan		15,831		7,870		25,922		49,623		8,101,263		8,150,886
Others		4,720		1,436		14,152		20,308		1,918,353		1,938,661
Sovereign		—		—		—		—		2,992,075		2,992,075
Banks and other financial institutions		—		—		—		—		807,855		807,855
Total domestic		22,955		10,179		90,168		123,302		59,399,056		59,522,358
Foreign:
Total foreign		1,826		636		60,535		62,997		30,890,392		30,953,389
Total		24,781		10,815		150,703		186,299		90,289,448		90,475,747

Note: The majority of total foreign consist of corporate.

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Allowance for credit losses on loans (Tables)

6 Months Ended

Sep. 30, 2020

Changes in Allowance for Loan Losses, Allowance for Loan Losses and Loans Outstanding Disaggregated on Basis of Impairment Method, by Portfolio Segment

Changes in Allowance for credit losses on loans by portfolio segment for the six months ended September 30, 2019 and 2020 are shown below:

	Corporate			Retail			Total
	(in millions of yen)
Six months ended September 30, 2019
Balance at beginning of period		277,955			29,246			307,201
Provision (credit) for credit losses on loans		12,268			1,505			13,773
Charge-offs		(25,147	)		(3,887	)		(29,034	)
Recoveries		2,785			1,269			4,054
Net charge-offs		(22,362	)		(2,618	)		(24,980	)
Others (Note)		(4,570	)		(2	)		(4,572	)
Balance at end of period		263,291			28,131			291,422
Six months ended September 30, 2020
Balance at beginning of period		413,026			27,829			440,855
April 1, 2020 adoption of CECL		77,514			78,241			155,755
Adjusted Balance at beginning of period		490,540			106,070			596,610
Provision (credit) for credit losses on loans		64,133			(11,051	)		53,082
Charge-offs		(28,417	)		(3,446	)		(31,863	)
Recoveries		5,260			479			5,739
Net charge-offs		(23,157	)		(2,967	)		(26,124	)
Others (Note)		(997	)		(45	)		(1,042	)
Balance at end of period		530,519			92,007			622,526

Note: Others includes primarily foreign exchange translation.

XML

Other assets and liabilities (Tables)

6 Months Ended

Sep. 30, 2020

Details of Other Assets and Liabilities

The following table sets forth the details of other assets and liabilities at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in millions of yen)
Other assets:
Accounts receivable:
Receivables from brokers, dealers and customers for securities transactions		783,439		898,924
Other		358,702		416,064
Collateral pledged:
Collateral pledged for derivative transactions		1,246,026		1,079,050
Margins provided for futures contracts		602,039		316,791
Other		941,167		909,155
Prepaid pension cost		711,981		986,767
Right-of-use assets		613,068		586,365
Security deposits		107,294		108,204
Loans held for sale		60,084		22,404
Other		542,079		540,514
Total		5,965,879		5,864,238
Other liabilities:
Accounts payable:
Payables to brokers, dealers and customers for securities transactions		2,161,075		2,065,408
Other		375,127		365,446
Guaranteed trust principal (Note)		824,431		808,172
Lease liabilities		627,250		600,087
Collateral accepted:
Collateral accepted for derivative transactions		846,426		587,426
Margins accepted for futures contracts		797,317		558,138
Unearned income		122,072		120,352
Other		1,244,697		1,194,591
Total		6,998,395		6,299,620

Note: Guaranteed trust principal, included in All other liabilities in the disclosure about consolidated VIEs in the accompanying balance sheets, is a liability of certain consolidated trust arrangements that meet the definition of a VIE for which the MHFG Group provides guarantees for the repayment of principal. See Note 15 “Variable interest entities and securitizations” for further discussion of the guaranteed principal money trusts.

XML

Preferred and common stock (Tables)

6 Months Ended

Sep. 30, 2020

Preferred stock

Schedule of Stock by Class

The composition of preferred stock at March 31, 2020 and September 30, 2020 is as follows:

Class of stock	March 31, 2020				September 30, 2020
	Authorized		Issued		Authorized		Issued
	(number of shares)
Class XIV preferred stock		90,000,000		—		90,000,000		—
Class XV preferred stock		90,000,000		—		90,000,000		—
Class XVI preferred stock		150,000,000		—		150,000,000		—

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Accumulated other comprehensive income (loss), net of tax (Tables)

6 Months Ended

Sep. 30, 2020

Changes in Each Component of AOCI

Changes in each component of Accumulated other comprehensive income (loss), net of tax (“AOCI”) for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
AOCI, balance at beginning of period, previously reported		164,021			(9,494	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
AOCI, balance at beginning of period, adjusted		162,969			(9,494	)
Net unrealized gains (losses) on available-for-sale securities:
Balance at beginning of period		22,019			(19,592	)
Unrealized holding gains (losses) during period		25,843			644
Less: reclassification adjustments for losses (gains) included in net income		(20,824	)		754
Change during period		5,019			1,398
Balance at end of period		27,038			(18,194	)
Foreign currency translation adjustments:
Balance at beginning of period, previously reported		(58,558	)		(109,872	)
Cumulative effect of change in accounting principles (Note)		(1,052	)		—
Balance at beginning of period, adjusted		(59,610	)		(109,872	)
Foreign currency translation adjustments during period		(63,466	)		(36,652	)
Less: reclassification adjustments for losses (gains) included in net income		—			(409	)
Change during period		(63,466	)		(37,061	)
Balance at end of period		(123,076	)		(146,933	)
Pension liability adjustments:
Balance at beginning of period		196,446			69,455
Unrealized gains (losses) during period		(1,720	)		190,394
Less: reclassification adjustments for losses (gains) included in net income		(2,130	)		672
Change during period		(3,850	)		191,066
Balance at end of period		192,596			260,521
Own credit risk adjustments:
Balance at beginning of period		4,114			50,515
Unrealized gains (losses) during period		7,320			(9,340	)
Less: reclassification adjustments for losses (gains) included in net income		(1,277	)		(2,732	)
Change during period		6,043			(12,072	)
Balance at end of period		10,157			38,443
Total other comprehensive income (loss), net of tax attributable to MHFG shareholders		(56,254	)		143,331
AOCI, balance at end of period		106,715			133,837

Note: The MHFG Group adopted ASU No.2017-12, “Derivatives and Hedging (Topic 815)—Targeted Improvements to Accounting for Hedging Activities” (“ASU No.2017-12”) on April 1, 2019 and the ASU No.2017-12 eliminated the separate measurement and reporting of hedge ineffectiveness. Cumulative-effect adjustment to the consolidated balance sheets was recognized upon adoption.

Amounts Reclassified Out of Accumulated Other Comprehensive Income into Net Income

The following table shows the amounts reclassified out of AOCI into net income during the six months ended September 30, 2020:

	Six months ended September 30, 2020
	Before tax (1)			Tax effect (2)			Net of tax before allocation to noncontrolling interests			Net of tax attributable to noncontrolling interests (2)			Net of tax attributable to MHFG shareholders
	(in millions of yen)
Amounts reclassified out of AOCI into net income:																Affected line items in the consolidated statements of income:
Net unrealized gains (losses) on available-for-sale securities		(1,065	)		306			(759	)		5			(754	)	Investment gains (losses)-net Provision (credit) for credit losses
Foreign currency translation adjustments		409			—			409			—			409		Foreign exchange gains (losses)-net
Pension liability adjustments		(1,004	)		321			(683	)		11			(672	)	Salaries and employee benefits
Own credit risk adjustments		4,111			(1,259	)		2,852			(120	)		2,732		Other noninterest income (expenses)
Total		2,451			(632	)		1,819			(104	)		1,715

Notes:

(1) The financial statement line item in which the amounts in the Before tax column are reported in the consolidated statements of income is listed to the right of the table.

(2) The financial statement line items in which the amounts in the Tax effect and the Net of tax attributable to noncontrolling interest columns are reported in the consolidated statements of income are Income tax expense and Net income, respectively.

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Regulatory matters (Tables)

6 Months Ended

Sep. 30, 2020

Capital Adequacy Ratios of MHFG, MHBK, and MHTB Calculated in Accordance with Japanese GAAP and Guidelines Established by Financial Services Agency

Capital adequacy ratios and leverage ratios of MHFG, MHBK, and MHTB as of March 31, 2020 and September 30, 2020 calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency are set forth in the following table:

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Consolidated:
MHFG:
Common Equity Tier 1 capital:
Required (1)		4,978		8.01		5,159			8.01
Actual		7,245		11.65		7,453			11.57
Tier 1 capital:
Required (1)		5,910		9.51		6,125			9.51
Actual		9,024		14.52		9,468			14.69
Total risk-based capital:
Required (1)		7,152		11.51		7,413			11.51
Actual		10,722		17.25		11,133			17.28
Leverage Ratio:
Required		6,629		3.00		5,874	(2)		3.00
Actual		9,024		4.08		9,468	(2)		4.83
MHBK:
Common Equity Tier 1 capital:
Required		2,567		4.50		2,689			4.50
Actual		6,501		11.39		6,756			11.30
Tier 1 capital:
Required		3,422		6.00		3,585			6.00
Actual		8,275		14.50		8,765			14.66
Total risk-based capital:
Required		4,563		8.00		4,780			8.00
Actual		9,865		17.29		10,338			17.30
Leverage Ratio:
Required		6,160		3.00		5,450	(2)		3.00
Actual		8,275		4.02		8,765	(2)		4.82
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		489		23.64		509			26.24
Tier 1 capital:
Required		124		6.00		116			6.00
Actual		489		23.66		509			26.24
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		491		23.74		510			26.27
Leverage Ratio:
Required		216		3.00		156	(2)		3.00
Actual		489		6.79		509	(2)		9.79

	March 31, 2020				September 30, 2020
	Amount		Ratio		Amount			Ratio
	(in billions of yen, except percentages)
Non-consolidated:
MHBK:
Common Equity Tier 1 capital:
Required		2,403		4.50		2,525			4.50
Actual		6,130		11.47		6,369			11.34
Tier 1 capital:
Required		3,204		6.00		3,367			6.00
Actual		7,905		14.80		8,381			14.93
Total risk-based capital:
Required		4,272		8.00		4,489			8.00
Actual		9,482		17.75		9,943			17.71
Leverage Ratio:
Required		5,884		3.00		5,178	(2)		3.00
Actual		7,905		4.03		8,381	(2)		4.85
MHTB:
Common Equity Tier 1 capital:
Required		93		4.50		87			4.50
Actual		475		23.10		494			25.49
Tier 1 capital:
Required		123		6.00		116			6.00
Actual		475		23.10		494			25.49
Total risk-based capital:
Required		165		8.00		155			8.00
Actual		477		23.18		494			25.52
Leverage Ratio:
Required		214		3.00		153	(2)		3.00
Actual		475		6.66		494	(2)		9.66

Notes:

(1) The required ratios disclosed above, at March 31, 2020 and September 30, 2020, include the capital conservation buffer of 2.5%, the countercyclical capital buffer of 0.01%, and the additional loss absorbency requirements for global systemically important banks (“G-SIBs”) and domestic systemically important banks (“D-SIBs”) of 1.0%, which are all in addition to the regulatory minima. The respective required amounts are determined by applying the ratios to the sum of the risk weighted assets and certain other risk amounts.

(2) The required and actual amounts disclosed above at September 30, 2020 exclude amounts of deposits to the Bank of Japan.

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Earnings per common share (Tables)

6 Months Ended

Sep. 30, 2020

Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019		2020
	(in millions of yen)
Net income:
Net income attributable to MHFG common shareholders		212,984		315,886
Effect of dilutive securities		—		—
Net income attributable to common shareholders after assumed conversions		212,984		315,886
	Six months ended September 30,
	2019		2020
	(thousands of shares)
Shares:
Weighted average common shares outstanding		2,536,800		2,537,272
Effect of dilutive securities:
Stock options and the common shares of MHFG under the stock compensation programs (Note)		209		93
Weighted average common shares after assumed conversions		2,537,009		2,537,365
	Six months ended September 30,
	2019		2020
	(in yen)
Earnings per common share:
Basic net income per common share		83.96		124.50
Diluted net income per common share (Note)		83.95		124.49

Note: For the six months ended September 30, 2020, the performance-based plan under the stock compensation programs could potentially dilute earnings per common share but were not included in the computation of diluted earnings per common share due to their antidilutive effects.

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Income taxes (Tables)

6 Months Ended

Sep. 30, 2020

Components of Income Tax Expense

The following table presents the components of Income tax expense for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Current tax expense		88,437			79,954
Deferred tax expense (benefit)		(5,317	)		57,807
Total income tax expense		83,120			137,761

Detailed Amounts of Tax Effects of Items Recorded Directly in Equity

The preceding table does not reflect the tax effects of items recorded directly in Equity for the six months ended September 30, 2019 and 2020. The detailed amounts recorded directly in Equity are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses)		11,023			579
Less: reclassification adjustments		(9,192	)		306
Total		1,831			885
Pension liability adjustments:
Unrealized gains (losses)		(643	)		83,994
Less: reclassification adjustments		(937	)		321
Total		(1,580	)		84,315
Own credit risk adjustments:
Unrealized gains (losses)		(43	)		(2,351	)
Less: reclassification adjustments		(588	)		(1,259	)
Total		(631	)		(3,610	)
Total tax effect before allocation to noncontrolling interests		(380	)		81,590

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Pension and other employee benefit plans (Tables)

6 Months Ended

Sep. 30, 2020

Components of Net Periodic Benefit Cost of Severance Indemnities and Pension Plans

The following table summarizes the components of net periodic benefit cost of the severance indemnities and pension plans of the MHFG Group for the six months ended September 30, 2019 and 2020:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Service cost-benefits earned during the period		22,729			22,695
Interest costs on projected benefit obligations		2,666			2,931
Expected return on plan assets		(20,158	)		(20,073	)
Amortization of prior service cost (benefits)		19			205
Amortization of net actuarial loss (gain)		(3,064	)		836
Special termination benefits		2,188			4,981
Net periodic benefit cost		4,380			11,575

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Derivative financial instruments (Tables)

6 Months Ended

Sep. 30, 2020

Summary of Notional and Fair Value Amounts of Derivative Instruments Outstanding

The following table summarizes the notional and fair value amounts of derivative instruments outstanding as of March 31, 2020 and September 30, 2020. The fair values of derivatives are presented on a gross basis, derivative receivables and payables are not offset. In addition, they are not offset against the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements in the consolidated balance sheets, or the table below.

			Fair value
			Derivative receivables (2)				Derivative payables (2)
March 31, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,123,546		—		7,232		—		6,788
Foreign exchange contracts		185,359		—		2,926		—		2,899
Equity-related contracts		6,684		—		310		—		266
Credit-related contracts		4,676		—		30		—		29
Other contracts		400		—		38		—		39
Total		1,320,665		—		10,536		—		10,021
			Fair value
			Derivative receivables (2)				Derivative payables (2)
September 30, 2020	Notional amount (1)		Designated as hedges		Not designated as hedges		Designated as hedges		Not designated as hedges
	(in billions of yen)
Interest rate contracts		1,084,971		—		6,135		—		5,728
Foreign exchange contracts		174,856		—		2,143		—		2,160
Equity-related contracts		7,012		—		397		—		260
Credit-related contracts		7,742		—		55		—		77
Other contracts		397		—		28		—		26
Total		1,274,978		—		8,758		—		8,251

Notes:

(1) Notional amount includes the sum of gross long and gross short third-party contracts.

(2) Derivative receivables and payables are recorded in Trading account assets and Trading account liabilities, respectively.

Summary of Notional and Fair Value Amounts of Credit Derivatives

The following table summarizes the notional and fair value amounts of credit derivatives at March 31, 2020 and September 30, 2020:

	March 31, 2020					September 30, 2020
	Notional amount		Fair value			Notional amount		Fair value
	(in billions of yen)
Credit protection written:
Investment grade		1,400		(5	)		2,687		37
Non-investment grade		416		—			530		8
Total		1,816		(5	)		3,217		45
Credit protection purchased		3,028		6			4,693		(67	)

Note: The rating scale is based upon either the external ratings or the internal ratings of the underlying reference credit. The lowest investment grade rating is considered to be BBB-, while anything below or unrated is considered to be non-investment grade. Non-investment grade credit derivatives primarily consist of unrated credit default swap indices such as CDX and iTraxx.

Maximum Potential Amount of Future Payments for Credit Protection Written by Expiration Period

The following table shows the maximum potential amount of future payments for credit protection written by expiration period at March 31, 2020 and September 30, 2020:

	Maximum payout/Notional amount
	March 31, 2020		September 30, 2020
	(in billions of yen)
One year or less		270		233
After one year through five years		1,368		2,793
After five years		178		191
Total		1,816		3,217

Note: The maximum potential amount of future payments is the aggregate notional amount of the credit derivatives where the Group wrote the credit protection, and it has not been reduced by the effect of any amounts that the Group may possibly collect on the underlying assets and the related cash flows, nor netted against that of credit protection purchased.

Quantitative Information about Derivative Instruments with Credit-risk-related Contingent Features

The following table shows the quantitative information about derivative instruments with credit-risk-related contingent features at March 31, 2020 and September 30, 2020:

	March 31,  2020		September 30,  2020
	(in billions of yen)
Aggregate fair value of derivative instruments with credit-risk-related contingent features in net liability positions		888		747
Collateral provided to counterparties in the normal course of business		818		703
Amount required to be posted as collateral or settled immediately if credit-risk-related contingent features were triggered		70		44

Not Designated as Hedging Instrument

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table summarizes gains and losses on derivatives not designated or qualifying as hedges during the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in income for six months ended September 30,
	2019			2020
	(in millions of yen)
Interest rate contracts		210,909			32,791
Foreign exchange contracts		(30,736	)		26,277
Equity-related contracts (1)		(494	)		(31,999	)
Credit-related contracts (2)		(3,546	)		(29,219	)
Other contracts		(1,650	)		26,692
Total		174,483			24,542

Notes:

(1) The net gains (losses) excluded from the assessment of the effectiveness of fair value hedges is not included in the above table.

(2) Amounts include the net gains (losses) of ¥(426) million and ¥(1,221) million on the credit derivatives economically managing the credit risk of loans during the six months ended September 30, 2019 and 2020, respectively.

Net Investment Hedging | Designated as Hedging Instrument

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table summarizes gains and losses information related to net investment hedges for the six months ended September 30, 2019 and 2020:

	Gains (losses) recorded in other comprehensive income (“OCI”) for six months ended September 30,
	2019			2020
	(in millions of yen)
Financial instruments hedging foreign exchange risk		(1,044	)		1,538
Total		(1,044	)		1,538

Note: Related to the net investment hedges, gains (losses) of ¥(260) million and ¥(1,312) million were reclassified from Accumulated other comprehensive income to earnings for the six months ended September 30, 2019 and 2020.

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Commitments and contingencies (Tables)

6 Months Ended

Sep. 30, 2020

Summary of Maximum Potential Amount of Future Payments under Guarantees

the MHFG Group is exposed to unlimited losses; therefore, the table shows the notional amounts of the contracts as a substitute for the maximum exposure.

	March 31, 2020		September 30, 2020
	(in billions of yen)
Performance guarantees		2,456		2,527
Guarantees on loans		301		266
Guarantees on securities		110		96
Other guarantees		2,314		2,306
Guarantees for the repayment of trust principal		59		31
Liabilities of trust accounts		446		456
Derivative financial instruments		21,756		21,097

Summary of Contractual Amounts with Regard to Undrawn Commitments

The table below summarizes the contractual amounts with regard to these undrawn commitments at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Commitments to extend credit (Note)		76,633		86,359
Commercial letters of credit		690		537
Total		77,323		86,896

Note: Commitments to extend credit include commitments to invest in securities.

Performance guarantees, Guarantees on loans, Guarantees on securities and Other guarantees

Summary of Maximum Potential Amount of Future Payments under Guarantees

The table below presents the maximum potential amount of future payments of performance guarantees, guarantees on loans, guarantees on securities and other guarantees classified based on internal ratings at March 31, 2020 and September 30, 2020:

	March 31, 2020		September 30, 2020
	(in billions of yen)
Investment grade		4,233		4,079
Non-investment grade		948		1,116
Total		5,181		5,195

Note: Investment grade in the internal rating scale generally corresponds to BBB- or above in the external rating scale.

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Variable interest entities and securitizations (Tables)

6 Months Ended

Sep. 30, 2020

Schedule of Variable Interest Entities

The table below shows the consolidated assets of the Group’s consolidated VIEs as well as total assets and maximum exposure to loss for its significant unconsolidated VIEs, in which the Group has determined that its maximum exposure to loss is greater than specific thresholds or meets certain other criteria as of March 31, 2020 and September 30, 2020:

	Consolidated VIEs		Significant unconsolidated VIEs
March 31, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,160		—		—
Asset-backed securitizations		572		77		7
Investments in securitization products		370		—		—
Investment funds		2,694		2,299		514
Trust arrangements and other		19		—		—
Total		5,815		2,376		521

	Consolidated VIEs		Significant unconsolidated VIEs
September 30, 2020	Consolidated assets		Total assets		Maximum exposure to loss
	(in billions of yen)
Asset-backed commercial paper/loan programs		2,045		—		—
Asset-backed securitizations		780		77		8
Investments in securitization products		370		—		—
Investment funds		2,283		2,346		483
Trust arrangements and other		5,557		—		—
Total		11,035		2,423		491

Unconsolidated VIEs

Schedule of Variable Interest Entities

The tables below present the carrying amounts and classification of assets and liabilities on the MHFG Group’s balance sheets that relate to its variable interests in significant unconsolidated VIEs, as of March 31, 2020 and September 30, 2020:

Assets on balance sheets related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Trading account assets		108		113
Investments		267		231
Loans		55		58
Total		430		402

Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:	March 31, 2020		September 30, 2020
	(in billions of yen)
Payables under securities lending transactions		47		48
Trading account liabilities		2		2
Total		49		50
Maximum exposure to loss (Note)		521		491

Note: This represents the maximum amount the Group could possibly be required to record in its consolidated statements of income associated with on-balance-sheet exposures and off-balance-sheet liabilities such as undrawn commitments.

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Noninterest income (Tables)

6 Months Ended

Sep. 30, 2020

Summary of Noninterest Income

Details of Noninterest income for the six months ended September 30, 2019 and 2020 are as follows:

	Six months ended September 30,
	2019			2020
	(in millions of yen)
Fee and commission income:
Securities-related business (1)		64,498			78,441
Deposits-related business (1)		7,570			7,408
Lending-related business (2)(4)		68,609			79,619
Remittance business (1)		56,075			54,785
Asset management business (1)		48,291			45,948
Trust-related business (1)		56,459			54,425
Agency business (1)		15,152			15,064
Guarantee-related business (3)		13,898			15,560
Fees for other customer services (1)		73,440			77,067
Total Fee and commission income		403,992			428,317
Foreign exchange gains (losses)—net (3)		27,923			22,785
Trading account gains (losses)—net (2)		395,405			257,591
Investment gains (losses)—net:
Debt securities (3)		31,092			46
Equity securities (3)		(126,648	)		266,119
Equity in earnings (losses) of equity method investees-net (3)		22,066			5,788
Gains on disposal of premises and equipment (3)		1,693			6,849
Other noninterest income (2)(5)		34,839			23,715
Total		790,362			1,011,210

Notes:

(1) These amounts are revenues from contracts within the scope of ASC 606, “Revenue from contracts with customers” (“ASC 606”).

(2) Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

(3) These amounts are revenues from contracts that do not meet the scope of ASC 606.

(4) Most of the lending-related fees such as commitment fees and arrangement fees are not within the scope of ASC 606.

(5) These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

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Fair value (Tables)

6 Months Ended

Sep. 30, 2020

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis, Including Fair Value Option Elected

Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and September 30, 2020, including those for which the MHFG Group has elected the fair value option, are summarized below:

March 31, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		1,516		22		—		1,538
Japanese local government bonds		—		170		—		170
U.S. Treasury bonds and federal agency securities		4,580		461		—		5,041
Other foreign government bonds		1,128		547		—		1,675
Agency mortgage-backed securities		—		3,390		—		3,390
Residential mortgage-backed securities		—		—		10		10
Certificates of deposit and commercial paper		—		1,036		—		1,036
Corporate bonds and other (2)		41		1,398		1,115		2,554
Equity securities		1,000		650		30		1,680
Trading securities measured at net asset value (3)								462
Derivative financial instruments:
Interest rate contracts		153		7,070		9		7,232
Foreign exchange contracts		9		2,900		17		2,926
Equity-related contracts		169		125		16		310
Credit-related contracts		—		22		8		30
Other contracts		3		11		24		38
Available-for-sale securities:
Japanese government bonds		11,950		653		—		12,603
Japanese local government bonds		—		273		—		273
U.S. Treasury bonds and federal agency securities		935		—		—		935
Other foreign government bonds		436		975		—		1,411
Agency mortgage-backed securities		—		505		—		505
Residential mortgage-backed securities		—		53		31		84
Commercial mortgage-backed securities		—		—		615		615
Japanese corporate bonds and other debt securities		—		1,678		157		1,835
Foreign corporate bonds and other debt securities		—		678		174		852
Equity securities:
Equity securities with readily determinable fair values		2,670		95		—		2,765
Equity securities measured at net asset value (3)								72
Other investments		—		—		39		39
Total assets measured at fair value on a recurring basis		24,590		22,712		2,245		50,081
Liabilities:
Trading securities sold, not yet purchased		1,880		515		—		2,395
Derivative financial instruments:
Interest rate contracts		163		6,611		14		6,788
Foreign exchange contracts		8		2,890		1		2,899
Equity-related contracts		186		47		33		266
Credit-related contracts		—		19		10		29
Other contracts		6		10		23		39
Long-term debt (4)		—		1,916		621		2,537
Total liabilities measured at fair value on a recurring basis		2,243		12,008		702		14,953

September 30, 2020	Level 1		Level 2		Level 3		Assets/ Liabilities measured at fair value
	(in billions of yen)
Assets:
Trading securities (1):
Japanese government bonds		3,257		11		—		3,268
Japanese local government bonds		—		138		—		138
U.S. Treasury bonds and federal agency securities		4,963		829		—		5,792
Other foreign government bonds		938		526		—		1,464
Agency mortgage-backed securities		—		4,348		—		4,348
Residential mortgage-backed securities		—		—		9		9
Certificates of deposit and commercial paper		—		1,259		—		1,259
Corporate bonds and other (2)		22		1,348		1,085		2,455
Equity securities		929		570		30		1,529
Trading securities measured at net asset value (3)								447
Derivative financial instruments:
Interest rate contracts		40		6,088		7		6,135
Foreign exchange contracts		—		2,123		20		2,143
Equity-related contracts		98		287		12		397
Credit-related contracts		—		52		3		55
Other contracts		3		10		15		28
Available-for-sale securities:
Japanese government bonds		19,600		320		—		19,920
Japanese local government bonds		—		407		—		407
U.S. Treasury bonds and federal agency securities		627		—		—		627
Other foreign government bonds		430		926		—		1,356
Agency mortgage-backed securities		—		520		—		520
Residential mortgage-backed securities		—		53		27		80
Commercial mortgage-backed securities		—		—		641		641
Japanese corporate bonds and other debt securities		—		1,579		491		2,070
Foreign corporate bonds and other debt securities		—		747		178		925
Equity securities:
Equity securities with readily determinable fair values		2,976		40		—		3,016
Equity securities measured at net asset value (3)								83
Other investments		—		—		56		56
Total assets measured at fair value on a recurring basis		33,883		22,181		2,574		59,168
Liabilities:
Trading securities sold, not yet purchased		2,051		268		20		2,339
Derivative financial instruments:
Interest rate contracts		39		5,679		10		5,728
Foreign exchange contracts		—		2,159		1		2,160
Equity-related contracts		128		109		23		260
Credit-related contracts		—		75		2		77
Other contracts		4		8		14		26
Long-term debt (4)		—		2,164		638		2,802
Total liabilities measured at fair value on a recurring basis		2,222		10,462		708		13,392

Notes:

(1) Trading securities include foreign currency denominated securities for which the MHFG Group elected the fair value option.

(2) The amount includes CLO and convertible bonds, which are classified in Level 3.

(3) In accordance with ASC 820, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented for these classes of assets are intended to permit the reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position. The amounts of unfunded commitments related to these investments at March 31, 2020 and September 30, 2020 were ¥47 billion and ¥56 billion, respectively.

(4) Amounts represent items for which the Group elected the fair value option or for which it applied the practicability exception.

Reconciliation for All Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended September 30, 2019 and 2020:

Six months ended September 30, 2019	April 1, 2019			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases			Sales			Issuances		Settle- ments			September 30, 2019			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		11			—	(2)		—			—		—			—			—			—		(1	)		10			—
Corporate bonds and other		1,044			(15	) (2)		—			—		—			338			(105	)		—		(125	)		1,137			(14	)
Equity securities		28			2	(2)		—			—		—			1			—			—		(1	)		30			—
Derivative financial instruments, net (1):
Interest rate contracts		13			(9	) (2)		—			—		—			—			—			—		1			5			(8	)
Foreign exchange contracts		22			(10	) (2)		—			—		—			—			—			—		(2	)		10			(9	)
Equity-related contracts		(5	)		1	(2)		—			—		—			—			—			—		(3	)		(7	)		2
Credit-related contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Other contracts		1			—	(2)		—			—		—			—			—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		40			—	(3)		—	(4)		—		—			—			—			—		(7	)		33			—
Commercial mortgage-backed securities		500			—	(3)		1	(4)		—		—			89			(35	)		—		(6	)		549			—
Japanese corporate bonds and other debt securities		120			1	(3)		4	(4)		—		—			97			—			—		(53	)		169			—
Foreign corporate bonds and other debt securities		103			—	(3)		(5	) (4)		—		—			38			—			—		(3	)		133			—
Other investments		35			1	(3)		—			—		—			10			—			—		(10	)		36			2
Liabilities:
Trading securities sold, not yet purchased		1			—	(2)		—			—		—			(9	)		8			—		—			—			—
Long-term debt		655			(6	) (5)		—	(4)		17		(6	)		—			—			108		(134	)		646			(10	)

Six months ended September 30, 2020	April 1, 2020			Gains (losses) in Earnings			Gains (losses) in OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issuances		Settle- ments			September 30, 2020			Change in unrealized gains (losses) still held (6)
	(in billions of yen)
Assets:
Trading securities:
Residential mortgage-backed securities		10			—	(2)		—			—		—			—		—			—		(1	)		9			—
Corporate bonds and other		1,115			18	(2)		—			—		(1	)		189		(113	)		—		(123	)		1,085			18
Equity securities		30			(2	) (2)		—			—		—			2		—			—		—			30			(1	)
Derivative financial instruments, net (1):
Interest rate contracts		(5	)		(3	) (2)		—			—		—			—		—			—		5			(3	)		1
Foreign exchange contracts		16			4	(2)		—			—		—			—		—			—		(1	)		19			5
Equity-related contracts		(17	)		4	(2)		—			—		—			—		—			—		2			(11	)		3
Credit-related contracts		(2	)		3	(2)		—			1		1			—		—			—		(2	)		1			1
Other contracts		1			—	(2)		—			—		—			—		—			—		—			1			—
Available-for-sale securities:
Residential mortgage-backed securities		31			—	(3)		—	(4)		—		—			—		—			—		(4	)		27			—
Commercial mortgage-backed securities		615			—	(3)		1	(4)		—		—			78		(51	)		—		(2	)		641			—
Japanese corporate bonds and other debt securities		157			(7	) (3)		8	(4)		—		—			344		—			—		(11	)		491			—
Foreign corporate bonds and other debt securities		174			1	(3)		8	(4)		—		—			31		—			—		(36	)		178			—
Other investments		39			(1	) (3)		—			—		—			38		(1	)		—		(19	)		56			(1	)
Liabilities:
Trading securities sold, not yet purchased		—			—	(2)		—			—		—			—		20			—		—			20			—
Long-term debt		621			(37	) (5)		(8	) (4)		19		(35	)		—		—			108		(120	)		638			(27	)

Notes:

(1) Total Level 3 derivative exposures have been netted on the table for presentation purposes only.

(2) Gains (losses) in Earnings are reported in Trading account gains (losses)-net, Foreign exchange gains (losses)-net or Other noninterest income (expenses).

(3) Gains (losses) in Earnings are reported in Investment gains (losses)-net.

(4) Gains (losses) in OCI are reported in Other comprehensive income (loss).

(5) Gains (losses) in Earnings are reported in Other noninterest income (expenses).

(6) Amounts represent total gains or losses recognized in earnings and OCI during the period. These gains or losses were attributable to the change in fair value relating to assets and liabilities classified as Level 3 that were still held at September 30, 2019 and 2020. The amounts of unrealized gains (losses) in OCI related to Available-for-sale securities and Long-term debt were ¥7 billion and ¥(8) billion, at September 30, 2020, respectively.

Quantitative Information about Significant Unobservable Inputs Related to Material Classes of Level 3 Assets and Liabilities

Quantitative information about Level 3 fair value measurements

The following table presents information about significant unobservable inputs related to the MHFG Group’s material classes of Level 3 assets and liabilities at March 31, 2020 and September 30, 2020:

March 31, 2020
Products/Instruments	Fair value			Principal valuation technique	Unobservable inputs	Range of input values		Weighted average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		41		Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		4% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 52bps
Commercial mortgage-backed securities		615		Discounted cash flow Price-based	Discount margin		7bps - 185bps		22bps
Corporate bonds and other debt securities		1,446		Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		13% - 21% 0% - 2% 10% - 70% 61bps - 1,160bps 5bps - 1,528bps		21% 2% 67% 256bps 58bps
Derivative financial instruments, net:
Interest rate contracts		(5	)	Internal valuation model (3)	IR – IR correlation Default rate (4)		23% - 100% 0% - 63%
Foreign exchange contracts		16		Internal valuation model (3)	FX – IR correlation FX – FX correlation Default rate (4)		-37% - 49% 56% - 65% 0% - 63%
Equity-related contracts		(17	)	Internal valuation model (3)	Equity – IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 13% - 157%
Credit-related contracts		(2	)	Internal valuation model (3)	Default rate Credit correlation		0% - 15% 30% - 100%
Long-term debt		621		Internal valuation model (3)	IR – IR correlation FX – IR correlation FX – FX correlation Equity – IR correlation Equity – FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -37% - 50% 56% - 65% 25% - 25% -33% - 100% 0% - 100% 15% - 157% 0% - 12% 15% - 100%

September 30, 2020
Products/Instruments	Fair value		Principal valuation technique	Unobservable inputs	Range of input values		Average (5)
(in billions of yen, except for percentages and basis points)
Trading securities and Available-for-sale securities:
Residential mortgage-backed securities		36	Discounted cash flow Price-based	Prepayment rate Default rate Recovery rate Discount margin		3% - 16% 0% - 1% 100% - 100% 5bps - 170bps		7% 0% 100% 50bps
Commercial mortgage-backed securities		641	Discounted cash flow Price-based	Discount margin		6bps - 185bps		21bps
Corporate bonds and other debt securities		1,754	Discounted cash flow Price-based	Prepayment rate (1) Default rate (1) Recovery rate (1) Discount margin (1) Discount margin (2)		1% - 22% 0% - 3% 10% - 69% 25bps - 173bps 4bps - 696bps		19% 1% 67% 123bps 233bps
Derivative financial instruments, net:
Interest rate contracts		(3)	Internal valuation model (3)	IR - IR correlation		23% - 100%		76%
Foreign exchange contracts		19	Internal valuation model (3)	FX - IR correlation FX - FX correlation		-27% -52% 46% - 63%		28% 55%
Equity-related contracts		(11)	Internal valuation model (3)	Equity - IR correlation Equity correlation Equity volatility		25% - 25% 0% - 100% 12% - 96%		25% 88% 43%
Credit-related contracts		1	Internal valuation model (3)	Default rate Credit correlation		0% - 7% 35% - 100%		1% 66%
Other contracts		1	Internal valuation model (3)	Commodity volatility		0% - 57%		36%
Long-term debt		638	Internal valuation model (3)	IR - IR correlation FX - IR correlation FX - FX correlation Equity - IR correlation Equity - FX correlation Equity correlation Equity volatility Default rate Credit correlation		23% - 100% -27% - 52% 46% - 63% 25% - 25% -33% - 100% 0% - 100% 13% - 96% 0% - 6% 18% - 100%		76% 35% 55% 25% -3% 86% 29% 2% 66%

Notes:

(1) These inputs are mainly used for determining the fair values of securitization products such as CDO, CLO and ABS, other than RMBS and CMBS.

(2) This input is mainly used for determining the fair values of Japanese corporate bonds and foreign corporate bonds.

(3) Internal valuation model includes discounted cash flow models and the Black-Scholes option pricing model.

(4) This input represents the counterparty default rate derived from the MHFG Group’s own internal credit analyses.

(5) Averages are calculated by weighting each input by the relative fair value of the respective financial instruments except for derivative related inputs where medians are used.

IR = Interest rate

FX = Foreign exchange

Summary of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table shows the fair value hierarchy for these items as of March 31, 2020 and September 30, 2020:

March 31, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		90		—		—		90		136
Loans held-for-sale		26		—		20		6		26
Equity securities (without readily determinable fair values)		2		—		—		2		2
Premises and equipment-net		1		—		1		—		12
Other assets		—		—		—		—		3
Goodwill		—		—		—		—		2
Total assets measured at fair value on a nonrecurring basis		119		—		21		98		181
September 30, 2020	Total		Level 1		Level 2		Level 3		Aggregate cost
	(in billions of yen)
Assets:
Loans		131		—		2		129		200
Loans held-for-sale		17		—		11		6		18
Equity securities (without readily determinable fair values)		1		—		—		1		2
Other investments		52		31		—		21		59
Premises and equipment-net		—		—		—		—		1
Total assets measured at fair value on a nonrecurring basis		201		31		13		157		280

Note: The fair values may not be current as of the dates indicated, but rather as of the date the fair value change occurred. Accordingly, the carrying values may not equal current fair value.

Carrying Amounts and Fair Values of Certain Financial Instruments, Excluding Financial Instruments Carried at Fair Value on a Recurring Basis and Those outside Scope of ASC 825

The following table shows the carrying amounts and fair values at March 31, 2020 and September 30, 2020, of certain financial instruments, excluding financial instruments which are carried at fair value on a recurring basis and those outside the scope of ASC 825 such as equity method investments as defined in ASC 323, “Investments-Equity Method and Joint Ventures” (“ASC 323”) and lease contracts as defined in ASC 842, “Leases” (“ASC 842”):

	March 31, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		63,755		63,755		1,318		62,437		—
Investments		862		875		493		382		—
Loans, net of allowance (Note)		86,914		88,124		—		—		88,124
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		51,954		51,954		29,812		22,142		—
Interest-bearing deposits		114,653		114,659		58,935		55,724		—
Due to trust accounts		250		250		—		250		—
Other short-term borrowings		4,914		4,914		—		4,914		—
Long-term debt		7,821		7,708		—		6,813		895
	September 30, 2020
	Carrying amount		Estimated fair value
			Total		Level 1		Level 2		Level 3
	(in billions of yen)
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		58,623		58,623		42,233		16,390		—
Investments		790		812		491		321		—
Loans, net of allowance (Note)		89,611		90,983		—		—		90,983
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640		53,640		—		53,640		—
Interest-bearing deposits		118,333		118,347		—		118,347		—
Due to trust accounts		564		564		—		564		—
Other short-term borrowings		7,526		7,526		—		7,526		—
Long-term debt		8,266		8,493		—		7,155		1,338

Note: Loans, net of allowance include items measured at fair value on a nonrecurring basis.

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Offsetting of financial assets and financial liabilities (Tables)

6 Months Ended

Sep. 30, 2020

Information of Offsetting of Financial Assets and Financial Liabilities

The following table provides information about the offsetting of financial assets and financial liabilities at March 31, 2020 and September 30, 2020. The table includes derivatives, repurchase and resale agreements, and securities lending and borrowing transactions that are subject to enforceable master netting arrangements or similar agreements irrespective of whether or not they are offset on the Group’s consolidated balance sheets.

								Amounts not offset on the balance sheet (3)
	Gross amounts recognized		Gross amounts offset on the balance sheet		Net amounts presented on the balance sheet (2)			Financial instruments (4)			Cash collateral			Net amounts
	(in billions of yen)
March 31, 2020
Assets (1):
Derivatives		9,819		—		9,819			(7,723	)		(629	)		1,467
Receivables under resale agreements		17,347		—		17,347			(17,197	)		—			150
Receivables under securities borrowing transactions		1,753		—		1,753			(1,709	)		—			44
Total		28,919		—		28,919			(26,629	)		(629	)		1,661
Liabilities (1):
Derivatives		9,220		—		9,220			(7,519	)		(1,215	)		486
Payables under repurchase agreements		17,542		—		17,542			(17,191	)		—			351
Payables under securities lending transactions		626		—		626			(623	)		—			3
Total		27,388		—		27,388			(25,333	)		(1,215	)		840
September 30, 2020
Assets:
Derivatives		8,758		—		8,758	(5)		(6,373	)		(486	)		1,899
Receivables under resale agreements		12,666		—		12,666	(6)		(11,479	)		—			1,187
Receivables under securities borrowing transactions		2,186		—		2,186	(7)		(1,846	)		—			340
Total		23,610		—		23,610			(19,698	)		(486	)		3,426
Liabilities:
Derivatives		8,251		—		8,251	(5)		(6,148	)		(930	)		1,173
Payables under repurchase agreements		19,326		—		19,326	(6)		(18,038	)		—			1,288
Payables under securities lending transactions		1,476		—		1,476	(7)		(1,235	)		—			241
Total		29,053		—		29,053			(25,421	)		(930	)		2,702

Notes:

(1) Amounts relating to master netting arrangements or similar agreements where the MHFG Group does not have the legal right of set-off or where uncertainty exists as to the enforceability of these agreements are excluded. For derivatives, the table includes amounts relating to over-the-counter (“OTC”) and OTC-cleared derivatives that are subject to enforceable master netting arrangements or similar agreements.

(2) Derivative assets and liabilities are recorded in Trading account assets and Trading account liabilities, respectively.

(3) Amounts do not exceed the net amounts presented on the balance sheet and do not include the effect of overcollateralization, where it exists.

(4) For derivatives, amounts include derivative assets or liabilities and securities collateral that are eligible for offsetting under enforceable master netting arrangements or similar agreements.

(5) The amounts of derivative assets and liabilities subject to enforceable master netting arrangements or similar agreements at September 30, 2020 were ¥8,154 billion and ¥7,528 billion, respectively.

(6) The amounts of Receivables under resale agreements and Payables under repurchase agreements subject to enforceable

industry standard master repurchase agreements with netting terms at September 30, 2020 were ¥11,490 billion and ¥18,755 billion, respectively.

(7) The amounts of Receivables under securities borrowing transactions and Payables under securities lending transactions subject to enforceable industry standard master lending agreements with netting terms at September 30, 2020 were ¥1,915 billion and ¥1,243 billion, respectively.

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Repurchase agreements and securities lending transactions accounted for as secured borrowings (Tables)

6 Months Ended

Sep. 30, 2020

Gross Amounts of Liabilities by Remaining Contractual Maturity

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by remaining contractual maturity at March 31, 2020 and September 30, 2020:

	Overnight and continuous		Up to 30 days		31-90 days		Greater than 90 days		Total
	(in billions of yen)
March 31, 2020
Repurchase agreements		6,357		5,467		4,867		1,280		17,971
Securities lending transactions		877		231		—		316		1,424
Total		7,234		5,698		4,867		1,596		19,395
September 30, 2020
Repurchase agreements		10,154		3,684		3,162		2,326		19,326
Securities lending transactions		798		298		50		330		1,476
Total		10,952		3,982		3,212		2,656		20,802

Gross Amounts of Liabilities by Class of Underlying Collateral

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by class of underlying collateral at March 31, 2020 and September 30, 2020:

	Repurchase agreements		Securities lending transactions
	(in billions of yen)
March 31, 2020
Japanese government bonds and Japanese local government bonds		1,790		269
Foreign government bonds and foreign agency mortgage-backed securities		15,218		359
Commercial paper and corporate bonds		273		50
Equity securities		542		730
Other		148		16
Total (Note)		17,971		1,424
September 30, 2020
Japanese government bonds and Japanese local government bonds		3,355		372
Foreign government bonds and foreign agency mortgage-backed securities		15,100		368
Commercial paper and corporate bonds		209		53
Equity securities		579		668
Other		83		15
Total (Note)		19,326		1,476

Note: Amounts exceeded the gross amounts recognized in Note 18 “Offsetting of financial assets and financial liabilities” by ¥1,227 billion and ¥804 billion, at March 31, 2020 and September 30, 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

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Business segment information (Tables)

6 Months Ended

Sep. 30, 2020

Reportable Segment Information Derived from Internal Management Reporting Systems, on Basis of Japanese GAAP

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. In addition, the format and information are presented primarily on the basis of Japanese GAAP. Therefore, they are not consistent with the consolidated financial statements prepared in accordance with U.S. GAAP. A reconciliation is provided for the total amount of all business segments’ “Net business profits (losses) + Net gains (losses) related to ETFs and others” with income before income tax expense under U.S. GAAP, and the total amount of all business segments’ “Fixed assets” with the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets reported under U.S. GAAP. “Fixed assets” pertaining to MHBK, MHTB, and MHSC have been allocated to each segment.

	MHFG (Consolidated)
Six months ended September 30, 2019 (1)	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		322.0			220.2		203.9		235.0		25.5		16.2			1,022.8
General and administrative expenses (3)		330.7			104.0		118.6		101.4		16.4		17.3			688.4
Equity in earnings (losses) of equity method investees—net		6.4			1.1		6.0		—		0.5		5.0			19.0
Amortization of goodwill and others		1.4			0.1		0.2		0.5		3.9		0.5			6.6
Others		—			—		—		—		—		(5.9	)		(5.9	)
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(3.7	)		117.2		91.1		133.1		5.7		(2.5	)		340.9
Fixed assets (5)		508.2			208.4		160.1		92.8		0.1		732.0			1,701.6

	MHFG (Consolidated)
Six months ended September 30, 2020	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (6)			Total
	(in billions of yen)
Gross profits + Net gains (losses) related to ETFs and others (2)		307.4			234.2		222.6		291.5		23.6		14.0			1,093.3
General and administrative expenses (3)		315.0			104.6		121.4		105.6		15.7		17.0			679.3
Equity in earnings (losses) of equity method investees—net		3.6			2.4		5.8		—		0.4		(0.7	)		11.5
Amortization of goodwill and others		1.1			0.1		0.2		0.4		3.8		0.5			6.1
Net business profits (losses) (4) + Net gains (losses) related to ETFs and others		(5.1	)		131.9		106.8		185.5		4.5		(4.2	)		419.4
Fixed assets (5)		518.5			186.3		157.0		90.9		0.1		768.5			1,721.3

Notes:

(1) Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

(2) “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by MHBK and MHTB on their non-consolidated basis and net gains (losses) on operating investment securities of MHSC on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

(3) “General and administrative expenses” excludes non-allocated gains (losses), net.

(4) Net business profits (losses) is used in Japan as a measure of the profitability of core banking operations, and is defined as gross profits (as defined above) less general and administrative expenses (excluding non-allocated gains (losses), net) plus equity in earnings (losses) of equity method investees-net and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan.

(5) “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

(6) “Others” includes the following items:

• profits and expenses pertaining to consolidated subsidiaries that are not subject to allocation;

• consolidating adjustments, including elimination of internal transaction between each segment;

• equity in earnings (losses) of equity method investees-net that are not subject to allocation; and

• profits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.

F-73

Reconciliation of Total Net Business Profits under Internal Management Reporting Systems to Income Before Income Tax Expense on Consolidated Statements of Income

A reconciliation of “Net business profits (losses) + Net gains (losses) related to ETFs and others” for the six months ended September 30, 2019 and 2020 presented above to income before income tax expense shown on the consolidated statements of income and a reconciliation of “Fixed assets” at September 30, 2019 and 2020 to the total amount of Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets are as follows:

	Six months ended September 30,
	2019			2020
	(in billions of yen)
Net business profits (losses) + Net gains (losses) related to ETFs and others		340.9			419.4
Adjustment to reconcile management reporting to Japanese GAAP:
General and administrative expenses: non-allocated gains (losses), net		24.5			4.1
Expenses related to portfolio problems (including reversal of (provision for) general reserve for losses on loans)		(19.1	)		(84.8	)
Gains on reversal of reserves for possible losses on loans, and others		7.9			3.6
Net gains (losses) related to stocks—Net gains (losses) related to ETFs and others		55.4			(50.5	)
Net extraordinary gains (losses)		(5.0	)		65.8
Others		(13.1	)		(24.2	)
Income before income tax expense under Japanese GAAP		391.5			333.4
Adjustment to reconcile Japanese GAAP to U.S. GAAP:
Derivative financial instruments and hedging activities		105.0			(12.9	)
Investments		(163.9	)		285.4
Loans		—			(10.8	)
Allowances for credit losses (1)		0.5			35.8
Premises and equipment		(51.5	)		(37.1	)
Land revaluation		0.5			2.7
Business combinations		4.1			(4.3	)
Pension liabilities		(27.3	)		(84.5	)
Consolidation of variable interest entities		40.3			36.6
Foreign currency translation		14.3			(0.2	)
Others		(3.0	)		3.7
Income before income tax expense under U.S. GAAP		310.5			547.8

Reconciliation of Assets from Segment to Consolidated

	As of September 30,
	2019		2020
	(in billions of yen)
Fixed assets		1,701.6		1,721.3
U.S. GAAP adjustments (2)		964.5		818.4
Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets		2,666.1		2,539.7

Notes:

(1) The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020. Allowances for credit losses for the six months ended September 30, 2020 substitute allowances for loan losses and off-balance-sheet instruments for the six months ended September 30, 2019. See Note 2 “Issued accounting pronouncements” for further details.

(2) The U.S. GAAP adjustments are primarily comprised of GAAP differences mainly from right-of-use assets related to operating leases not recognized under Japanese GAAP; internally developed software, which was impaired under Japanese GAAP; land, which was revalued under Japanese GAAP; and the consolidation of certain variable interest entities, which are not consolidated under Japanese GAAP.

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Basis of presentation - Additional Information (Detail)	Jun. 25, 2020
Disclosure of Accounting Policies [Line Items]
Stockholders equity stock consolidation	1-for-10 share

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Issued accounting pronouncements - Additional Information (Detail) $ in Billions	Apr. 01, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable, allowance for credit loss, period increase (decrease)	$ 176
Fresh-start adjustment, increase (decrease), retained earnings (deficit)	$ 125

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Issued accounting pronouncements - Summary of Accounting Standards Update and Change in Accounting Principle (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Apr. 01, 2020	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance	¥ 622,526		¥ 440,855	¥ 291,422	¥ 307,201
Off-balance sheet, credit loss, liability			46,000
Corporate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance	530,519		413,026	263,291	277,955
Retail
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance	¥ 92,007		27,829	¥ 28,131	¥ 29,246
Cumulative effect of change in accounting principles
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance			155,755
Off-balance sheet, credit loss, liability		¥ 20,000
Cumulative effect of change in accounting principles | Corporate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance		78,000	77,514
Cumulative effect of change in accounting principles | Retail
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance		78,000	78,241
Cumulative effect, period of adoption, adjusted balance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance			596,610
Off-balance sheet, credit loss, liability		66,000
Cumulative effect, period of adoption, adjusted balance | Corporate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance		491,000	490,540
Cumulative effect, period of adoption, adjusted balance | Retail
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans and leases receivable, allowance		¥ 106,000	¥ 106,070

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Investments - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	¥ 26,562,414	¥ 19,132,999
Gross unrealized gains, available-for-sale securities		40,782	40,504
Gross unrealized losses, available-for-sale securities		56,396	60,551
Fair value, available-for-sale securities		26,546,800	19,112,952
Amortized cost, held-to-maturity securities	[1],[2]	789,978	862,031
Gross unrealized gains, held-to-maturity securities		22,171	14,602
Gross unrealized losses, held-to-maturity securities		0	1,303
Total		812,149	875,330
Debt securities | Japanese government bonds
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	19,964,553	12,651,677
Gross unrealized gains, available-for-sale securities		1,084	1,319
Gross unrealized losses, available-for-sale securities		45,274	50,224
Fair value, available-for-sale securities		19,920,363	12,602,772
Amortized cost, held-to-maturity securities	[1],[2]	479,947	479,936
Gross unrealized gains, held-to-maturity securities		11,505	13,357
Gross unrealized losses, held-to-maturity securities		0
Total		491,452	493,293
Debt securities | Japanese local government bonds
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	406,873	272,412
Gross unrealized gains, available-for-sale securities		757	649
Gross unrealized losses, available-for-sale securities		446	494
Fair value, available-for-sale securities		407,184	272,567
Debt securities | U.S. Treasury bonds and federal agency securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	625,398	927,172
Gross unrealized gains, available-for-sale securities		1,388	7,733
Gross unrealized losses, available-for-sale securities		2
Fair value, available-for-sale securities		626,784	934,905
Debt securities | Other foreign government bonds
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	1,353,376	1,408,009
Gross unrealized gains, available-for-sale securities		3,020	3,273
Gross unrealized losses, available-for-sale securities		74	202
Fair value, available-for-sale securities		1,356,322	1,411,080
Debt securities | Agency mortgage-backed securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[3]	509,808	494,958
Gross unrealized gains, available-for-sale securities	[3]	10,650	10,490
Gross unrealized losses, available-for-sale securities	[3],[4]	433	434
Fair value, available-for-sale securities	[3]	520,025	505,014
Amortized cost, held-to-maturity securities	[5]	310,031	382,095
Gross unrealized gains, held-to-maturity securities	[5]	10,666	1,245
Gross unrealized losses, held-to-maturity securities	[5]	0	1,303
Total	[5]	320,697	382,037
Debt securities | Residential mortgage-backed securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	78,883	83,077
Gross unrealized gains, available-for-sale securities		1,220	1,405
Gross unrealized losses, available-for-sale securities		123	151
Fair value, available-for-sale securities		79,980	84,331
Debt securities | Commercial mortgage-backed securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[1],[2]	634,537	609,559
Gross unrealized gains, available-for-sale securities		6,674	5,551
Gross unrealized losses, available-for-sale securities		69	106
Fair value, available-for-sale securities		641,142	615,004
Debt securities | Japanese corporate bonds and other debt securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[6]	2,066,234	1,836,540
Gross unrealized gains, available-for-sale securities	[6]	12,579	7,489
Gross unrealized losses, available-for-sale securities	[6]	8,785	8,772
Fair value, available-for-sale securities	[6]	2,070,028	1,835,257
Debt securities | Foreign corporate bonds and other debt securities
Schedule of Investments [Line Items]
Amortized cost, net available-for-sale securities	[7]	922,752	849,595
Gross unrealized gains, available-for-sale securities	[7]	3,410	2,595
Gross unrealized losses, available-for-sale securities	[7]	1,190	168
Fair value, available-for-sale securities	[7]	¥ 924,972	¥ 852,022

[1] Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

[2] Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

[3] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

[4] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥40,417 million and ¥0 million, respectively, at March 31, 2020, and ¥0 million and ¥0 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Ginnie Mae securities, which are guaranteed by the United States government.

[5] All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

[6] Other debt securities presented in this line primarily consist of Japanese asset-backed securities (“ABS”), of which the total fair values was ¥139,888 million at September 30, 2020.

[7] Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and ABS, of which the total fair values were ¥271,387 million at March 31, 2020, and ¥319,044 million at September 30, 2020.

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Investments - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Parenthetical) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Schedule of Investments [Line Items]
Fair value, available-for-sale securities		¥ 26,546,800	¥ 19,112,952
Amortised cost net of allowance for credit loss available for sale securities	[1],[2]	26,562,414	19,132,999
Net of Allowance for Credit Loss [Member]
Schedule of Investments [Line Items]
Amortised cost net of allowance for credit loss available for sale securities		7,551
Debt securities | Agency mortgage-backed securities
Schedule of Investments [Line Items]
Fair value, available-for-sale securities	[3]	520,025	505,014
Amortised cost net of allowance for credit loss available for sale securities	[3]	509,808	494,958
Debt securities | Negotiable certificates of deposits, asset- backed securities and collateral loan obligations
Schedule of Investments [Line Items]
Fair value, available-for-sale securities		319,044	271,387
Debt securities | Japanese agency mortgage-backed securities | Agency mortgage-backed securities
Schedule of Investments [Line Items]
Fair value, available-for-sale securities		519,974	504,953
Debt securities | Foreign agency mortgage-backed securities | Agency mortgage-backed securities
Schedule of Investments [Line Items]
Fair value, available-for-sale securities		51	61
Foreign government and corporate debt securities | Japanese agency mortgage-backed securities
Schedule of Investments [Line Items]
Fair value, available-for-sale securities			¥ 139,888
Available-for sale and held-to-maturity securities | Accrued Income [Member]
Schedule of Investments [Line Items]
Accrued interest receivables		¥ 4,153

[1] Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

[2] Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

[3] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

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Investments - Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities by Contractual Maturity (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		¥ 16,822,180
Due after one year through five years, amortized cost		5,582,146
Due after five years through ten years,amortized cost		2,787,606
Due after ten years, amortized cost		1,370,482
Total		26,562,414
Due after one year through five years, amortized cost		479,947
Due after ten years, amortized cost		310,031
Amortized cost, held-to-maturity securities	[1],[2]	789,978	¥ 862,031
Due in one year or less, fair value		16,824,447
Due after one year through five years, fair value		5,576,112
Due after five years through ten years, fair value		2,763,293
Due after ten years, fair value		1,382,948
Total		26,546,800
Due after one year through five years, fair value		491,452
Due after ten years, fair value		320,697
Total		812,149	875,330
Debt securities | Japanese government bonds
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		14,588,119
Due after one year through five years, amortized cost		3,630,141
Due after five years through ten years,amortized cost		1,550,745
Due after ten years, amortized cost		195,548
Total		19,964,553
Due after one year through five years, amortized cost		479,947
Amortized cost, held-to-maturity securities	[1],[2]	479,947	479,936
Due in one year or less, fair value		14,586,652
Due after one year through five years, fair value		3,619,928
Due after five years through ten years, fair value		1,522,868
Due after ten years, fair value		190,915
Total		19,920,363
Due after one year through five years, fair value		491,452
Total		491,452	493,293
Debt securities | Japanese local government bonds
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		30,537
Due after one year through five years, amortized cost		209,317
Due after five years through ten years,amortized cost		149,994
Due after ten years, amortized cost		17,025
Total		406,873
Due in one year or less, fair value		30,553
Due after one year through five years, fair value		209,557
Due after five years through ten years, fair value		149,982
Due after ten years, fair value		17,092
Total		407,184
Debt securities | U.S. Treasury bonds and federal agency securities
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		625,398
Total		625,398
Due in one year or less, fair value		626,784
Total		626,784
Debt securities | Other foreign government bonds
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		1,024,723
Due after one year through five years, amortized cost		326,539
Due after five years through ten years,amortized cost		1,058
Due after ten years, amortized cost		1,056
Total		1,353,376
Due in one year or less, fair value		1,025,928
Due after one year through five years, fair value		328,280
Due after five years through ten years, fair value		1,058
Due after ten years, fair value		1,056
Total		1,356,322
Debt securities | Agency mortgage-backed securities
Investments Classified by Contractual Maturity Date [Line Items]
Due after ten years, amortized cost		509,808
Total		509,808
Due after ten years, amortized cost		310,031
Amortized cost, held-to-maturity securities	[3]	310,031	382,095
Due after ten years, fair value		520,025
Total		520,025
Due after ten years, fair value		320,697
Total	[3]	320,697	¥ 382,037
Debt securities | Residential mortgage-backed securities
Investments Classified by Contractual Maturity Date [Line Items]
Due after ten years, amortized cost		78,883
Total		78,883
Due after ten years, fair value		79,980
Total		79,980
Debt securities | Commercial mortgage-backed securities
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		6,080
Due after one year through five years, amortized cost		252,315
Due after five years through ten years,amortized cost		375,342
Due after ten years, amortized cost		800
Total		634,537
Due in one year or less, fair value		6,085
Due after one year through five years, fair value		254,025
Due after five years through ten years, fair value		380,219
Due after ten years, fair value		813
Total		641,142
Debt securities | Japanese corporate bonds and other debt securities
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		94,088
Due after one year through five years, amortized cost		820,338
Due after five years through ten years,amortized cost		587,344
Due after ten years, amortized cost		564,464
Total		2,066,234
Due in one year or less, fair value		94,089
Due after one year through five years, fair value		819,848
Due after five years through ten years, fair value		585,922
Due after ten years, fair value		570,169
Total		2,070,028
Debt securities | Foreign corporate bonds and other debt securities
Investments Classified by Contractual Maturity Date [Line Items]
Due in one year or less, amortized cost		453,235
Due after one year through five years, amortized cost		343,496
Due after five years through ten years,amortized cost		123,123
Due after ten years, amortized cost		2,898
Total		922,752
Due in one year or less, fair value		454,356
Due after one year through five years, fair value		344,474
Due after five years through ten years, fair value		123,244
Due after ten years, fair value		2,898
Total		¥ 924,972

[1] Accrued interest receivables are excluded from amortized cost, of which the amount was ¥4,153 million at September 30, 2020 and included in Accrued income.

[2] Amortized cost, net of the allowance for credit losses, of which the amounts related to available-for-sale securities was ¥7,551 million at September 30, 2020.

[3] All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

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Investments - Additional Information (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Equity method Investments, carrying value	¥ 412,281	¥ 404,513
Credit losses on available-for-sale securities	8,000
Held-to-maturity Securities
Gain (Loss) on Securities [Line Items]
Impairment loss on securities	¥ 0
Orient Corporation
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	49.00%
Chiba Kogya Bank LTD [Member]
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	16.89%
Joint Stock Commercial Bank Foreign Trade of Vietnam [Member]
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	15.00%
Mizuho Leasing Company LTD [Member]
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	23.52%
Matthew International Capital Management LLC [Member]
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	16.41%
Custody Bank of Japan Ltd [Member]
Gain (Loss) on Securities [Line Items]
Percentage of proportionate share to the total outstanding common stock	27.00%
Equity securities (marketable)
Gain (Loss) on Securities [Line Items]
Equity method Investments, carrying value	¥ 215,059	213,243
Equity method Investments, aggregated market values	¥ 344,131	¥ 287,488

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Investments - Gross Unrealized Losses and Fair Value of Available-for-Sale and Held-to-Maturity Securities, Aggregated by Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		¥ 11,269,398	¥ 11,576,157
Less than 12 months Gross unrealized losses, available-for-sale securities		28,679	49,870
12 months or more Fair value, available-for-sale securities		1,934,619	954,032
12 months or more Gross unrealized losses, available-for-sale securities		27,717	10,681
Total Fair value, available-for-sale securities		13,204,017	12,530,189
Total Gross unrealized losses, available-for-sale securities		56,396	60,551
Less than 12 months, Fair value, held-to-maturity securities		0
Less than 12 months Gross unrealized losses, held-to-maturity securities		0
12 months or more Fair value, held-to-maturity securities		0	191,244
12 months or more Gross unrealized losses, held-to-maturity securities		0	1,303
Total Fair value, held-to-maturity securities		0	191,244
Total Gross unrealized losses, held-to-maturity securities		0	1,303
Debt securities | Japanese government bonds
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		9,978,136	10,339,320
Less than 12 months Gross unrealized losses, available-for-sale securities		23,884	43,204
12 months or more Fair value, available-for-sale securities		1,234,118	283,561
12 months or more Gross unrealized losses, available-for-sale securities		21,390	7,020
Total Fair value, available-for-sale securities		11,212,254	10,622,881
Total Gross unrealized losses, available-for-sale securities		45,274	50,224
Total Gross unrealized losses, held-to-maturity securities		0
Debt securities | Japanese local government bonds
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		126,991	162,665
Less than 12 months Gross unrealized losses, available-for-sale securities		246	418
12 months or more Fair value, available-for-sale securities		72,086	34,114
12 months or more Gross unrealized losses, available-for-sale securities		200	76
Total Fair value, available-for-sale securities		199,077	196,779
Total Gross unrealized losses, available-for-sale securities		446	494
Debt securities | U.S. Treasury bonds and federal agency securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		29,093
Less than 12 months Gross unrealized losses, available-for-sale securities		2
12 months or more Fair value, available-for-sale securities		0
12 months or more Gross unrealized losses, available-for-sale securities		0
Total Fair value, available-for-sale securities		29,093
Total Gross unrealized losses, available-for-sale securities		2
Debt securities | Other foreign government bonds
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		278,022	196,990
Less than 12 months Gross unrealized losses, available-for-sale securities		74	202
12 months or more Fair value, available-for-sale securities		0
12 months or more Gross unrealized losses, available-for-sale securities		0
Total Fair value, available-for-sale securities		278,022	196,990
Total Gross unrealized losses, available-for-sale securities		74	202
Debt securities | Agency mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		30,948	30,913
Less than 12 months Gross unrealized losses, available-for-sale securities		202	227
12 months or more Fair value, available-for-sale securities	[1]	9,799	9,504
12 months or more Gross unrealized losses, available-for-sale securities	[1]	231	207
Total Fair value, available-for-sale securities	[1]	40,747	40,417
Total Gross unrealized losses, available-for-sale securities	[1],[2]	433	434
Less than 12 months, Fair value, held-to-maturity securities	[3]	0
Less than 12 months Gross unrealized losses, held-to-maturity securities	[3]	0
12 months or more Fair value, held-to-maturity securities	[3]	0	191,244
12 months or more Gross unrealized losses, held-to-maturity securities	[3]	0	1,303
Total Fair value, held-to-maturity securities	[3]	0	191,244
Total Gross unrealized losses, held-to-maturity securities	[3]	0	1,303
Debt securities | Residential mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		9,567	9,524
Less than 12 months Gross unrealized losses, available-for-sale securities		41	62
12 months or more Fair value, available-for-sale securities		6,794	5,450
12 months or more Gross unrealized losses, available-for-sale securities		82	89
Total Fair value, available-for-sale securities		16,361	14,974
Total Gross unrealized losses, available-for-sale securities		123	151
Debt securities | Commercial mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		6,052	15,115
Less than 12 months Gross unrealized losses, available-for-sale securities		15	85
12 months or more Fair value, available-for-sale securities		11,396	7,478
12 months or more Gross unrealized losses, available-for-sale securities		54	21
Total Fair value, available-for-sale securities		17,448	22,593
Total Gross unrealized losses, available-for-sale securities		69	106
Debt securities | Japanese corporate bonds and other debt securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		565,278	669,572
Less than 12 months Gross unrealized losses, available-for-sale securities		3,028	5,507
12 months or more Fair value, available-for-sale securities		597,714	608,361
12 months or more Gross unrealized losses, available-for-sale securities		5,757	3,265
Total Fair value, available-for-sale securities		1,162,992	1,277,933
Total Gross unrealized losses, available-for-sale securities	[4]	8,785	8,772
Debt securities | Foreign corporate bonds and other debt securities
Gain (Loss) on Securities [Line Items]
Less than 12 months, Fair value, available-for-sale securities		245,311	152,058
Less than 12 months Gross unrealized losses, available-for-sale securities		1,187	165
12 months or more Fair value, available-for-sale securities		2,712	5,564
12 months or more Gross unrealized losses, available-for-sale securities		3	3
Total Fair value, available-for-sale securities		248,023	157,622
Total Gross unrealized losses, available-for-sale securities	[5]	¥ 1,190	¥ 168

[1] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥40,417 million and ¥0 million, respectively, at March 31, 2020, and ¥0 million and ¥0 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Ginnie Mae securities, which are guaranteed by the United States government.

[2] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥504,953 million and ¥61 million, respectively, at March 31, 2020, and ¥519,974 million and ¥51 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Government National Mortgage Association (“Ginnie Mae”) securities, which are guaranteed by the United States government.

[3] All Agency mortgage-backed securities presented in this line are Ginnie Mae securities.

[4] Other debt securities presented in this line primarily consist of Japanese asset-backed securities (“ABS”), of which the total fair values was ¥139,888 million at September 30, 2020.

[5] Other debt securities presented in this line primarily consist of Foreign negotiable certificates of deposit (“NCDs”) and ABS, of which the total fair values were ¥271,387 million at March 31, 2020, and ¥319,044 million at September 30, 2020.

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Investments - Gross Unrealized Losses and Fair Value of Available-for-Sale and Held-to-Maturity Securities, Aggregated by Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position (Parenthetical) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Fair value, available-for-sale securities		¥ 13,204,017	¥ 12,530,189
Debt securities | Agency mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Fair value, available-for-sale securities	[1]	40,747	40,417
Debt securities | Domestic Government Sponsored Enterprises Debt Securities [Member] | Agency mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Fair value, available-for-sale securities		¥ 40,747	¥ 40,417

[1] Agency mortgage-backed securities presented in this line consist of Japanese and Foreign agency mortgage-backed securities, of which the fair values were ¥40,417 million and ¥0 million, respectively, at March 31, 2020, and ¥0 million and ¥0 million, respectively, at September 30, 2020. All Japanese agency mortgage-backed securities are issued by Japan Housing Finance Agency, a Japanese government-sponsored enterprise. Foreign agency mortgage-backed securities primarily consist of Ginnie Mae securities, which are guaranteed by the United States government.

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Investments - Realized Gains and Losses on Sales of Available-for-Sale Securities (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Debt Securities, Available-for-sale [Line Items]
Gross realized gains	¥ 5,101	¥ 36,183
Gross realized losses	(3,694)	(6,167)
Net realized gains (losses) on sales of available-for-sale securities	¥ 1,407	¥ 30,016

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Investments - Summary of Details of Net Gains and Losses on Equity Securities (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Gain (Loss) on Securities [Line Items]
Net gains (losses) recognized during the period on equity securities	[1]	¥ 266,119	¥ (126,648)
Less: Net gains (losses) recognized during the period on equity securities sold during the period		34,985	(3,084)
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting period		¥ 231,134	¥ (123,564)

[1] These amounts are revenues from contracts that do not meet the scope of ASC 606.

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Investments - Summary of Equity Securities Without Readily Determinable Fair Values (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Equity Securities without Readily Determinable Fair Value [Line Items]
Carrying amounts at the end of the period	¥ 402,194	¥ 419,775
Downward adjustments and impairments	3,800	2,435
Upward adjustments	¥ 9,104	¥ 9,128

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Investments - Summary of Downward Adjustments and Impairments and Upward Adjustments (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Equity Securities without Readily Determinable Fair Value [Line Items]
Downward adjustments and impairments	¥ 1,411	¥ 430
Upward adjustments	¥ 34	¥ 6,527

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Investments - Summary of Composition of Other Investments (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Schedule of Investments [Line Items]
Equity method investments	¥ 412,281	¥ 404,513
Investments held by consolidated investment companies	55,682	39,438
Total	¥ 467,963	¥ 443,951

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Loans - Loans Outstanding by Domicile and Industry of Borrower (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		¥ 90,632,514	¥ 87,677,169
Less: Unearned income and deferred loan fees—net		156,767	149,081
Total loans before allowance for credit losses on loans		90,475,747	87,528,088
Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		59,594,397	56,030,511
Domestic | Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		11,700,375	9,731,028
Domestic | Construction and real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		10,172,843	9,603,433
Domestic | Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		6,294,310	5,992,511
Domestic | Wholesale and retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		5,415,605	5,219,727
Domestic | Transportation and communications
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		3,978,708	3,832,884
Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		4,719,863	4,634,442
Domestic | Government and public institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		2,639,956	2,198,805
Domestic | Other industries
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding	[1]	5,517,220	5,389,347
Domestic | Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		8,357,042	8,567,099
Domestic | Other individual loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		798,475	861,235
Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		31,038,117	31,646,658
Foreign | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		10,502,326	10,475,277
Foreign | Government and public institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		308,171	317,284
Foreign | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		20,190,048	20,818,709
Foreign | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans outstanding		¥ 37,572	¥ 35,388

[1] Other industries of domestic includes trade receivables and lease receivables of consolidated VIEs.

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Loans - Additional Information (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net losses on sales of loans	¥ 1,178	¥ 179
Loans held for sale	22,404		¥ 60,084
Accrued Income [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivables	82,321
Impaired Financing Receivables with No Related Allowance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired loans partially charged off	¥ 32,783		¥ 20,378

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Loans - Credit Quality Information of Loans Based on MHFG Group's Internal Rating System (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	¥ 90,632,514	¥ 87,677,169
Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	59,594,397	56,030,511
Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	31,038,117	31,646,658
Normal obligors | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	437,780
2019	668,358
2018	627,669
2017	634,528
2016	783,929
Prior to 2016	4,879,204
Revolving loan	0
Total	8,031,468
Total		8,215,781
Normal obligors | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	327,506
2019	209,899
2018	152,679
2017	106,359
2016	102,735
Prior to 2016	361,209
Revolving loan	523,640
Total	1,784,027
Total		1,783,779
Watch obligors | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	560
2019	1,178
2018	1,827
2017	1,579
2016	2,217
Prior to 2016	43,397
Revolving loan	0
Total	50,758
Total		57,478
Watch obligors | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	36,270
2019	17,587
2018	11,754
2017	6,911
2016	4,534
Prior to 2016	6,846
Revolving loan	12,185
Total	96,087
Total		81,463
Nonaccrual loans | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	18,941
2019	6,528
2018	1,525
2017	1,432
2016	1,778
Prior to 2016	38,456
Revolving loan	0
Total	68,660
Total		57,696
Nonaccrual loans | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	26,633
2019	6,905
2018	1,945
2017	1,000
2016	965
Prior to 2016	9,532
Revolving loan	11,567
Total	58,547
Total		59,782
Financing Receivables Not Impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	24,824,517
2019	16,069,963
2018	13,270,550
2017	5,523,602
2016	4,710,392
Prior to 2016	11,263,389
Revolving loan	14,813,334
Total	90,475,747
Total		87,677,169
Financing Receivables Not Impaired | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	13,582,965
2019	9,421,113
2018	9,327,773
2017	3,932,938
2016	3,869,379
Prior to 2016	9,465,007
Revolving loan	9,923,183
Total	59,522,358
Total		56,030,511
Financing Receivables Not Impaired | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	11,241,552
2019	6,648,850
2018	3,942,777
2017	1,590,664
2016	841,013
Prior to 2016	1,798,382
Revolving loan	4,890,151
Total	30,953,389
Total		31,646,658
Financing Receivables Not Impaired | Normal obligors | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	1,907,424
2019	264,528
2018	126,868
2017	87,021
2016	92,664
Prior to 2016	485,721
Revolving loan	13,700
Total	2,977,926
Total		2,559,420
Financing Receivables Not Impaired | Normal obligors | Domestic | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	15,637
2019	155,415
2018	261,601
2017	26,841
2016	85,303
Prior to 2016	74,009
Revolving loan	187,102
Total	805,908
Total		790,659
Financing Receivables Not Impaired | Normal obligors | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	9,754,935
2019	7,343,964
2018	7,517,546
2017	2,710,108
2016	2,498,507
Prior to 2016	2,978,989
Revolving loan	8,279,869
Total	41,083,918
Total		37,979,353
Financing Receivables Not Impaired | Normal obligors | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	381,487
2019	543,822
2018	456,363
2017	260,146
2016	232,638
Prior to 2016	485,430
Revolving loan	502,124
Total	2,862,010
Total		2,941,599
Financing Receivables Not Impaired | Normal obligors | Foreign | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	91,542
2019	99,248
2018	32,403
2017	149,794
2016	5,907
Prior to 2016	90,988
Revolving loan	81,008
Total	550,890
Total		558,384
Financing Receivables Not Impaired | Normal obligors | Foreign | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	750,039
2019	654,755
2018	421,876
2017	95,375
2016	4,509
Prior to 2016	3,536
Revolving loan	49,997
Total	1,980,087
Total		2,008,516
Financing Receivables Not Impaired | Normal obligors | Foreign | Corporate
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	10,181,936
2019	5,813,342
2018	3,419,918
2017	1,298,791
2016	804,580
Prior to 2016	1,624,422
Revolving loan	4,630,806
Total	27,773,795
Total		28,555,991
Financing Receivables Not Impaired | Normal obligors | Foreign | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	3,613
2019	9,806
2018	6,008
2017	2,956
2016	1,517
Prior to 2016	2,527
Revolving loan	102
Total	26,529
Total		30,862
Financing Receivables Not Impaired | Watch obligors | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	2,859
2019	6,914
2018	2,951
2017	1,134
2016	257
Prior to 2016	34
Revolving loan	0
Total	14,149
Total		10,939
Financing Receivables Not Impaired | Watch obligors | Domestic | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior to 2016	0
Revolving loan	0
Total	0
Total		0
Financing Receivables Not Impaired | Watch obligors | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	424,745
2019	92,446
2018	82,206
2017	56,363
2016	33,737
Prior to 2016	33,847
Revolving loan	196,544
Total	919,888
Total		840,289
Financing Receivables Not Impaired | Watch obligors | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	46,537
2019	32,174
2018	37,116
2017	13,321
2016	15,523
Prior to 2016	28,933
Revolving loan	30,521
Total	204,125
Total		189,075
Financing Receivables Not Impaired | Watch obligors | Foreign | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior to 2016	20,124
Revolving loan	0
Total	20,124
Total		19,971
Financing Receivables Not Impaired | Watch obligors | Foreign | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	912
2019	152
2018	686
2017	0
2016	0
Prior to 2016	0
Revolving loan	0
Total	1,750
Total		78
Financing Receivables Not Impaired | Watch obligors | Foreign | Corporate
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	172,225
2019	43,785
2018	47,998
2017	37,862
2016	15,899
Prior to 2016	35,532
Revolving loan	84,646
Total	437,947
Total		336,470
Financing Receivables Not Impaired | Watch obligors | Foreign | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	174
2019	1,110
2018	647
2017	361
2016	109
Prior to 2016	11
Revolving loan	0
Total	2,412
Total		858
Financing Receivables Not Impaired | Nonaccrual loans | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior to 2016	0
Revolving loan	0
Total	0
Total		0
Financing Receivables Not Impaired | Nonaccrual loans | Domestic | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	167
2019	0
2018	180
2017	0
2016	0
Prior to 2016	0
Revolving loan	1,600
Total	1,947
Total		0
Financing Receivables Not Impaired | Nonaccrual loans | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	142,730
2019	55,771
2018	41,249
2017	20,295
2016	11,956
Prior to 2016	29,551
Revolving loan	136,213
Total	437,765
Total		343,439
Financing Receivables Not Impaired | Nonaccrual loans | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	58,754
2019	15,624
2018	4,294
2017	5,900
2016	2,636
Prior to 2016	9,849
Revolving loan	28,118
Total	125,175
Total		119,759
Financing Receivables Not Impaired | Nonaccrual loans | Foreign | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	0
2019	741
2018	0
2017	0
2016	0
Prior to 2016	0
Revolving loan	0
Total	741
Total		0
Financing Receivables Not Impaired | Nonaccrual loans | Foreign | Financial institutions borrower
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	0
2019	0
2018	0
2017	0
2016	0
Prior to 2016	0
Revolving loan	0
Total	0
Total		0
Financing Receivables Not Impaired | Nonaccrual loans | Foreign | Corporate
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	41,085
2019	25,405
2018	12,954
2017	5,422
2016	8,448
Prior to 2016	21,241
Revolving loan	43,592
Total	158,147
Total		135,522
Financing Receivables Not Impaired | Nonaccrual loans | Foreign | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	26
2019	506
2018	287
2017	103
2016	44
Prior to 2016	1
Revolving loan	0
Total	¥ 967
Total		¥ 6

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Loans - Impaired Loans Information (Detail) - JPY (¥) ¥ in Millions	6 Months Ended	12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	¥ 711,063	¥ 596,000
Nonaccrual loans without an allowance	140,886	120,204
Total nonaccrual loans	851,949	716,204
Interest income recognized	5,147	10,694
Domestic
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	600,768	500,711
Nonaccrual loans without an allowance	91,326	79,965
Total nonaccrual loans	692,094	580,676
Interest income recognized	4,189	7,662
Domestic | Retail | Housing loan
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	40,358	28,263
Nonaccrual loans without an allowance	28,302	29,433
Total nonaccrual loans	68,660	57,696
Interest income recognized	535	937
Domestic | Retail | Other
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	36,270	36,220
Nonaccrual loans without an allowance	22,277	23,562
Total nonaccrual loans	58,547	59,782
Interest income recognized	373	846
Domestic | Large companies | Corporate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	416,637	333,442
Nonaccrual loans without an allowance	21,128	9,997
Total nonaccrual loans	437,765	343,439
Interest income recognized	2,501	4,155
Domestic | Small and medium sized companies | Corporate
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	105,556	102,786
Nonaccrual loans without an allowance	19,619	16,973
Total nonaccrual loans	125,175	119,759
Interest income recognized	777	1,724
Domestic | Banks and other financial institutions
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	1,947
Nonaccrual loans without an allowance	0
Total nonaccrual loans	1,947
Interest income recognized	3
Foreign
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual loans with an allowance	110,295	95,289
Nonaccrual loans without an allowance	49,560	40,239
Total nonaccrual loans	159,855	135,528
Interest income recognized	¥ 958	¥ 3,032

XML

Loans - Troubled Debt Restructurings Entered Modified Periods by Type of Concession Granted (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	¥ 0	¥ 1,159
Loan forgiveness or debt to equity swaps charge-offs		0	8,728
Interest rate reduction and/or postponement of principal and/or interest		426,021	257,573
Domestic
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0	689
Loan forgiveness or debt to equity swaps charge-offs		0	3,806
Interest rate reduction and/or postponement of principal and/or interest		345,132	218,927
Domestic | Housing loan | Retail
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0
Loan forgiveness or debt to equity swaps charge-offs		0
Interest rate reduction and/or postponement of principal and/or interest		14,690	3,742
Domestic | Other | Retail
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0
Loan forgiveness or debt to equity swaps charge-offs		0
Interest rate reduction and/or postponement of principal and/or interest		9,130	7,468
Domestic | Large companies | Corporate
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0	689
Loan forgiveness or debt to equity swaps charge-offs		0	3,806
Interest rate reduction and/or postponement of principal and/or interest		264,952	152,373
Domestic | Small and medium sized companies | Corporate
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0
Loan forgiveness or debt to equity swaps charge-offs		0
Interest rate reduction and/or postponement of principal and/or interest		54,760	55,344
Domestic | Banks and other financial institutions
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0
Loan forgiveness or debt to equity swaps charge-offs		0
Interest rate reduction and/or postponement of principal and/or interest		1,600
Foreign
Financing Receivable, Modifications [Line Items]
Loan forgiveness or debt to equity swaps Recorded investment	[1]	0	470
Loan forgiveness or debt to equity swaps charge-offs		0	4,922
Interest rate reduction and/or postponement of principal and/or interest		¥ 80,889	¥ 38,646

[1] Amounts represent the book values of loans immediately after the restructurings.

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Loans - Payment Defaults Occurred During Periods with Respect to Loans Modified as Troubled Debt Restructurings within Previous Six Months (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Modifications [Line Items]
Recorded investment	¥ 51,340	¥ 16,790
Housing loan
Financing Receivable, Modifications [Line Items]
Recorded investment	505	686
Other
Financing Receivable, Modifications [Line Items]
Recorded investment	1,104	1,349
Domestic
Financing Receivable, Modifications [Line Items]
Recorded investment	7,554	10,354
Domestic | Corporate | Large companies
Financing Receivable, Modifications [Line Items]
Recorded investment	2,084	5,875
Domestic | Corporate | Small and medium sized companies
Financing Receivable, Modifications [Line Items]
Recorded investment	3,861	2,444
Foreign
Financing Receivable, Modifications [Line Items]
Recorded investment	¥ 43,786	¥ 6,436

XML

Loans - Age Analysis of Past Due Loans (Detail) - JPY (¥) ¥ in Millions	6 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	¥ 51,340	¥ 16,790
Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	505	686
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	1,104	1,349
Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	7,554	10,354
Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	2,084	5,875
Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	3,861	2,444
Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	43,786	¥ 6,436
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	24,781		¥ 27,589
30-59 Days Past Due | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
30-59 Days Past Due | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	22,955		26,375
30-59 Days Past Due | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	311		2,146
30-59 Days Past Due | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	2,093		2,347
30-59 Days Past Due | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	15,831		15,703
30-59 Days Past Due | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	4,720		6,179
30-59 Days Past Due | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
30-59 Days Past Due | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	1,826		1,214
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	10,815		15,179
60-89 Days Past Due | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
60-89 Days Past Due | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	10,179		14,998
60-89 Days Past Due | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	269		2,013
60-89 Days Past Due | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	604		894
60-89 Days Past Due | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	7,870		10,078
60-89 Days Past Due | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	1,436		2,013
60-89 Days Past Due | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
60-89 Days Past Due | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	636		181
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	150,703		118,202
90 Days or More Past Due | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
90 Days or More Past Due | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	90,168		89,480
90 Days or More Past Due | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	38,868		38,364
90 Days or More Past Due | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	11,226		9,187
90 Days or More Past Due | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	25,922		26,690
90 Days or More Past Due | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	14,152		15,239
90 Days or More Past Due | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
90 Days or More Past Due | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	60,535		28,722
Total past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	186,299		160,970
Total past due | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	123,302		130,853
Total past due | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
Total past due | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	39,448		42,523
Total past due | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	13,923		12,428
Total past due | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	49,623		52,471
Total past due | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	20,308		23,431
Total past due | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	0
Total past due | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	62,997		30,117
Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	90,289,448		87,516,199
Current | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	59,399,056		55,899,658
Current | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	2,992,075		2,570,359
Current | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	42,402,123		39,120,558
Current | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	3,177,387		3,238,005
Current | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	8,101,263		8,278,484
Current | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	1,918,353		1,901,593
Current | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	807,855		790,659
Current | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	30,890,392		31,616,541
Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	90,475,747		87,677,169
Total | Domestic
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	59,522,358		56,030,511
Total | Domestic | Soverign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	2,992,075		2,570,359
Total | Domestic | Corporate | Large companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	42,441,571		39,163,081
Total | Domestic | Corporate | Small and medium sized companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	3,191,310		3,250,433
Total | Domestic | Retail | Housing loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	8,150,886		8,330,955
Total | Domestic | Retail | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	1,938,661		1,925,024
Total | Domestic | Banks and other financial institutions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	807,855		790,659
Total | Foreign
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment	¥ 30,953,389		¥ 31,646,658

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Allowance for Credit Losses on Loans (Changes in Allowance for Credit Losses On Loan and Loans Outstanding Disaggregated on Basis of Impairment Method, by Portfolio Segment) (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		¥ 440,855	¥ 307,201
Provision (credit) for credit losses on loans		53,082	13,773
Charge-offs		(31,863)	(29,034)
Recoveries		5,739	4,054
Net charge-offs		(26,124)	(24,980)
Others	[1]	(1,042)	(4,572)
Balance at end of fiscal year		622,526	291,422
Cumulative effect of change in accounting principles
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		155,755
Cumulative effect, period of adoption, adjusted balance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		596,610
Corporate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		413,026	277,955
Provision (credit) for credit losses on loans		64,133	12,268
Charge-offs		(28,417)	(25,147)
Recoveries		5,260	2,785
Net charge-offs		(23,157)	(22,362)
Others	[1]	(997)	(4,570)
Balance at end of fiscal year		530,519	263,291
Corporate | Cumulative effect of change in accounting principles
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		77,514
Corporate | Cumulative effect, period of adoption, adjusted balance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		490,540
Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		27,829	29,246
Provision (credit) for credit losses on loans		(11,051)	1,505
Charge-offs		(3,446)	(3,887)
Recoveries		479	1,269
Net charge-offs		(2,967)	(2,618)
Others	[1]	(45)	(2)
Balance at end of fiscal year		92,007	¥ 28,131
Retail | Cumulative effect of change in accounting principles
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		78,241
Retail | Cumulative effect, period of adoption, adjusted balance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period		¥ 106,070

[1] Others includes primarily foreign exchange translation.

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Other Assets and Liabilities (Details of Other Assets and Liabilities) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Other assets:
Receivables from brokers, dealers and customers for securities transactions		¥ 898,924	¥ 783,439
Other		416,064	358,702
Collateral pledged for derivative transactions		1,079,050	1,246,026
Margins provided for futures contracts		316,791	602,039
Other		909,155	941,167
Prepaid pension cost		986,767	711,981
Right-of-use assets		586,365	613,068
Security deposits		108,204	107,294
Loans held for sale		22,404	60,084
Other		540,514	542,079
Total		5,864,238	5,965,879
Other liabilities:
Payables to brokers, dealers and customers for securities transactions		2,065,408	2,161,075
Other		365,446	375,127
Guaranteed trust principal	[1]	808,172	824,431
Lease liabilities		¥ 600,087	627,250
Operating Lease, Liability, Statement of Financial Position [Extensible List]		us-gaap:OperatingLeaseLiability
Collateral accepted for derivative transactions		¥ 587,426	846,426
Margins accepted for futures contracts		558,138	797,317
Unearned income		120,352	122,072
Other		1,194,591	1,244,697
Total		¥ 6,299,620	¥ 6,998,395

[1] Guaranteed trust principal, included in All other liabilities in the disclosure about consolidated VIEs in the accompanying balance sheets, is a liability of certain consolidated trust arrangements that meet the definition of a VIE for which the MHFG Group provides guarantees for the repayment of principal. See Note 15 “Variable interest entities and securitizations” for further discussion of the guaranteed principal money trusts.

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Preferred and Common Stock (Composition of Preferred Stock) (Detail) - shares	Sep. 30, 2020	Mar. 31, 2020
Class Fourteen Preferred Stock
Class of Stock [Line Items]
Number of shares Authorized	90,000,000	90,000,000
Number of shares Issued	0	0
Class Fifteen Preferred Stock
Class of Stock [Line Items]
Number of shares Authorized	90,000,000	90,000,000
Number of shares Issued	0	0
Class Sixteen Preferred Stock
Class of Stock [Line Items]
Number of shares Authorized	150,000,000	150,000,000
Number of shares Issued	0	0

XML

Preferred and Common Stock - Additional Information (Detail) - shares	Sep. 30, 2020	Mar. 31, 2020
Class of Stock [Line Items]
Common Stock, Shares, Issued	2,539,249,894	2,539,249,894

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Accumulated other comprehensive income (loss), net of tax (Changes in Each Component of AOCI) (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		¥ 9,175,624
Less: reclassification adjustments for losses (gains) included in net income		(1,819)
Change during period		142,550	¥ (56,583)
Balance at end of fiscal year		9,140,053	9,486,573
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(9,494)	164,021
Change during period		143,331	(56,254)
Balance at end of fiscal year		133,837	106,715
Accumulated Other Comprehensive Income | Cumulative effect of change in accounting principles
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		0	(1,052)	[1]
Accumulated Other Comprehensive Income | Cumulative effect, period of adoption, adjusted balance
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(9,494)	162,969
Net unrealized gains (losses) on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(19,592)	22,019
Unrealized gains (losses) during period		644	25,843
Less: reclassification adjustments for losses (gains) included in net income		754	(20,824)
Change during period		1,398	5,019
Balance at end of fiscal year		(18,194)	27,038
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(109,872)	(58,558)
Foreign currency translation adjustments during period		(36,652)	(63,466)
Less: reclassification adjustments for losses (gains) included in net income		(409)
Change during period		(37,061)	(63,466)
Balance at end of fiscal year		(146,933)	(123,076)
Foreign currency translation adjustments | Cumulative effect of change in accounting principles
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	[1]		(1,052)
Foreign currency translation adjustments | Cumulative effect, period of adoption, adjusted balance
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(109,872)	(59,610)
Pension liability adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		69,455	196,446
Unrealized gains (losses) during period		190,394	(1,720)
Less: reclassification adjustments for losses (gains) included in net income		672	(2,130)
Change during period		191,066	(3,850)
Balance at end of fiscal year		260,521	192,596
Accumulated Own Credit Risk Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		50,515	4,114
Unrealized gains (losses) during period		(9,340)	7,320
Less: reclassification adjustments for losses (gains) included in net income		(2,732)	(1,277)
Change during period		(12,072)	6,043
Balance at end of fiscal year		¥ 38,443	¥ 10,157

[1] The MHFG Group adopted ASU No.2017-12, “Derivatives and Hedging (Topic 815)—Targeted Improvements to Accounting for Hedging Activities” (“ASU No.2017-12”) on April 1, 2019 and the ASU No.2017-12 eliminated the separate measurement and reporting of hedge ineffectiveness. Cumulative-effect adjustment to the consolidated balance sheets was recognized upon adoption.

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Accumulated other comprehensive income (loss), net of tax (Amounts Reclassified Out of Accumulated Other Comprehensive Income into Net Income) (Detail) ¥ in Millions	6 Months Ended
	Sep. 30, 2020 JPY (¥)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	¥ 2,451	[1]
Tax effect	(632)	[2]
Net of tax before allocation to noncontrolling interests	1,819
Net of tax attributable to noncontrolling interests	(104)	[2]
Net of tax attributable to MHFG shareholders	1,715
Accumulated Net Unrealized Investment Gain (Loss) | Gain (Loss) on Investments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	(1,065)	[1]
Tax effect	306	[2]
Net of tax before allocation to noncontrolling interests	(759)
Net of tax attributable to noncontrolling interests	5	[2]
Net of tax attributable to MHFG shareholders	(754)
Accumulated Defined Benefit Plans Adjustment | Salaries and employee benefits
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	(1,004)	[1]
Tax effect	321	[2]
Net of tax before allocation to noncontrolling interests	(683)
Net of tax attributable to noncontrolling interests	11	[2]
Net of tax attributable to MHFG shareholders	(672)
Accumulated Own Credit Risk Adjustment | Other Noninterest Income (Expenses)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	4,111	[1]
Tax effect	(1,259)	[2]
Net of tax before allocation to noncontrolling interests	2,852
Net of tax attributable to noncontrolling interests	(120)	[2]
Net of tax attributable to MHFG shareholders	2,732
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax before allocation to noncontrolling interests	409
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Foreign exchange gains (losses)-net
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Before tax	409	[1]
Net of tax before allocation to noncontrolling interests	409
Net of tax attributable to MHFG shareholders	¥ 409

[1] The financial statement line item in which the amounts in the Before tax column are reported in the consolidated statements of income is listed to the right of the table.

[2] The financial statement line items in which the amounts in the Tax effect and the Net of tax attributable to noncontrolling interest columns are reported in the consolidated statements of income are Income tax expense and Net income, respectively.

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Regulatory Matters (Capital Adequacy Ratios of MHFG, MHBK, and MHTB Calculated in Accordance with Japanese GAAP and Guidelines Established by Financial Services Agency) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020		Mar. 31, 2020
Mizuho Financial Group Inc | Consolidated
Common Equity Tier 1 capital:
Required	[1]	¥ 5,159		¥ 4,978
Actual		7,453		7,245
Required	[1]	6,125		5,910
Actual		¥ 9,468		¥ 9,024
Required	[1]	9.51%		9.51%
Actual		14.69%		14.52%
Required	[1]	¥ 7,413		¥ 7,152
Actual		¥ 11,133		¥ 10,722
Required	[1]	11.51%		11.51%
Actual		17.28%		17.25%
Required		¥ 5,874	[2]	¥ 6,629
Actual		¥ 9,468	[2]	¥ 9,024
Common Equity Tier 1 capital:
Required	[1]	8.01%		8.01%
Actual		11.57%		11.65%
Leverage Ratio:
Required		3.00%		3.00%
Actual		4.83%		4.08%
Mizuho Bank Limited | Consolidated
Common Equity Tier 1 capital:
Required		¥ 2,689		¥ 2,567
Actual		6,756		6,501
Required		3,585		3,422
Actual		¥ 8,765		¥ 8,275
Required		6.00%		6.00%
Actual		14.66%		14.50%
Required		¥ 4,780		¥ 4,563
Actual		¥ 10,338		¥ 9,865
Required		8.00%		8.00%
Actual		17.30%		17.29%
Required		¥ 5,450	[2]	¥ 6,160
Actual		¥ 8,765	[2]	¥ 8,275
Common Equity Tier 1 capital:
Required		4.50%		4.50%
Actual		11.30%		11.39%
Leverage Ratio:
Required		3.00%		3.00%
Actual		4.82%		4.02%
Mizuho Bank Limited | Non-consolidated
Common Equity Tier 1 capital:
Required		¥ 2,525		¥ 2,403
Actual		6,369		6,130
Required		3,367		3,204
Actual		¥ 8,381		¥ 7,905
Required		6.00%		6.00%
Actual		14.93%		14.80%
Required		¥ 4,489		¥ 4,272
Actual		¥ 9,943		¥ 9,482
Required		8.00%		8.00%
Actual		17.71%		17.75%
Required		¥ 5,178	[2]	¥ 5,884
Actual		¥ 8,381	[2]	¥ 7,905
Common Equity Tier 1 capital:
Required		4.50%		4.50%
Actual		11.34%		11.47%
Leverage Ratio:
Required		3.00%		3.00%
Actual		4.85%		4.03%
Mizuho Trust & Banking Company Limited | Consolidated
Common Equity Tier 1 capital:
Required		¥ 87		¥ 93
Actual		509		489
Required		116		124
Actual		¥ 509		¥ 489
Required		6.00%		6.00%
Actual		26.24%		23.66%
Required		¥ 155		¥ 165
Actual		¥ 510		¥ 491
Required		8.00%		8.00%
Actual		26.27%		23.74%
Required		¥ 156	[2]	¥ 216
Actual		¥ 509	[2]	¥ 489
Common Equity Tier 1 capital:
Required		4.50%		4.50%
Actual		26.24%		23.64%
Leverage Ratio:
Required		3.00%		3.00%
Actual		9.79%		6.79%
Mizuho Trust & Banking Company Limited | Non-consolidated
Common Equity Tier 1 capital:
Required		¥ 87		¥ 93
Actual		494		475
Required		116		123
Actual		¥ 494		¥ 475
Required		6.00%		6.00%
Actual		25.49%		23.10%
Required		¥ 155		¥ 165
Actual		¥ 494		¥ 477
Required		8.00%		8.00%
Actual		25.52%		23.18%
Required		¥ 153	[2]	¥ 214
Actual		¥ 494	[2]	¥ 475
Common Equity Tier 1 capital:
Required		4.50%		4.50%
Actual		25.49%		23.10%
Leverage Ratio:
Required		3.00%		3.00%
Actual		9.66%		6.66%

[1] The required ratios disclosed above, at March 31, 2020 and September 30, 2020, include the capital conservation buffer of 2.5%, the countercyclical capital buffer of 0.01%, and the additional loss absorbency requirements for global systemically important banks (“G-SIBs”) and domestic systemically important banks (“D-SIBs”) of 1.0%, which are all in addition to the regulatory minima. The respective required amounts are determined by applying the ratios to the sum of the risk weighted assets and certain other risk amounts.

[2] The required and actual amounts disclosed above at September 30, 2020 exclude amounts of deposits to the Bank of Japan.

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Regulatory Matters (Capital Adequacy Ratios of MHFG, MHBK, and MHTB Calculated in Accordance with Japanese GAAP and Guidelines Established by Financial Services Agency) (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020
Japan Gaap Schedule Of Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital conservation buffer	2.50%	2.50%
Additional loss absorbency requirements for G-SIBs and D-SIBs	1.00%	1.00%
Countercyclical capital buffer	0.01%	0.01%

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Earnings Per Common Share (Computation of Basic and Diluted Earnings Per Common Share) (Detail) - JPY (¥) ¥ / shares in Units, shares in Thousands, ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Net income:
Net income attributable to MHFG common shareholders		¥ 315,886	¥ 212,984
Effect of dilutive securities
Net income attributable to common shareholders after assumed conversions		¥ 315,886	¥ 212,984
Shares:
Weighted average common shares outstanding		2,537,272	2,536,800
Effect of dilutive securities:
Stock options and the common shares of MHFG under the stock compensation programs	[1]	93	209
Weighted average common shares after assumed conversions		2,537,365	2,537,009
Earnings per common share:
Basic net income per common share		¥ 124.50	¥ 83.96
Diluted net income per common share	[1]	¥ 124.49	¥ 83.95

[1] For the six months ended September 30, 2020, the performance-based plan under the stock compensation programs could potentially dilute earnings per common share but were not included in the computation of diluted earnings per common share due to their antidilutive effects.

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Income Taxes (Components of Income Tax Expense) (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of Provision of Income Taxes [Line Items]
Current tax expense	¥ 79,954	¥ 88,437
Deferred tax expense (benefit)	57,807	(5,317)
Total income tax expense	¥ 137,761	¥ 83,120

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Income Taxes (Detailed Amounts of Tax Effects of Items Recorded Directly in Equity) (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Net unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses)	¥ 579	¥ 11,023
Less: reclassification adjustments	306	(9,192)
Total	885	1,831
Pension liability adjustments:
Unrealized gains (losses)	83,994	(643)
Less: reclassification adjustments	321	(937)
Total	84,315	(1,580)
Own credit risk adjustments:
Unrealized gains (losses)	(2,351)	(43)
Less: reclassification adjustments	(1,259)	(588)
Total	(3,610)	(631)
Total tax effect before allocation to noncontrolling interests	¥ 81,590	¥ (380)

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Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Taxes [Line Items]
Statutory tax rate	30.62%	30.62%
Effective tax rate	25.15%	26.77%
Net operating loss carryforwards	¥ 623,000
Unrecognized Tax Benefits	¥ 4,382

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Pension and Other Employee Benefit Plans (Components of Net Periodic Costs of Severance Indemnities and Pension Plans) (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]
Service cost-benefits earned during the period	¥ 22,695	¥ 22,729
Interest costs on projected benefit obligations	2,931	2,666
Expected return on plan assets	(20,073)	(20,158)
Amortization of prior service cost (benefits)	205	19
Amortization of net actuarial loss (gain)	836	(3,064)
Special termination benefits	4,981	2,188
Net periodic benefit cost	¥ 11,575	¥ 4,380

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Pension and Other Employee Benefit Plans - Additional Information (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Pension plan, contribution expected to be paid during the next fiscal year		¥ 41,000
Total payment to pension plans	¥ 25,000
Additional contribution expected to be paid during remainder of fiscal year	16,000
Defined benefit plans, prior service costs recognised	¥ 73,998
Defined contribution plans effective date	Oct. 01, 2020

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Derivative Financial Instruments (Summary of Notional and Fair Value Amounts of Derivative Instruments Outstanding) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020	Mar. 31, 2020
Derivatives, Fair Value [Line Items]
Notional amount	[1]	¥ 1,274,978	¥ 1,320,665
Interest rate contracts
Derivatives, Fair Value [Line Items]
Notional amount	[1]	1,084,971	1,123,546
Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Notional amount	[1]	174,856	185,359
Equity-related contracts
Derivatives, Fair Value [Line Items]
Notional amount	[1]	7,012	6,684
Credit-related contracts
Derivatives, Fair Value [Line Items]
Notional amount	[1]	7,742	4,676
Other contracts
Derivatives, Fair Value [Line Items]
Notional amount	[1]	397	400
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	8,758	10,536
Fair value of derivative payables	[2]	8,251	10,021
Not Designated as Hedging Instrument | Interest rate contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	6,135	7,232
Fair value of derivative payables	[2]	5,728	6,788
Not Designated as Hedging Instrument | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	2,143	2,926
Fair value of derivative payables	[2]	2,160	2,899
Not Designated as Hedging Instrument | Equity-related contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	397	310
Fair value of derivative payables	[2]	260	266
Not Designated as Hedging Instrument | Credit-related contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	55	30
Fair value of derivative payables	[2]	77	29
Not Designated as Hedging Instrument | Other contracts
Derivatives, Fair Value [Line Items]
Fair value of derivative receivables	[2]	28	38
Fair value of derivative payables	[2]	¥ 26	¥ 39

[1] Notional amount includes the sum of gross long and gross short third-party contracts.

[2] Derivative receivables and payables are recorded in Trading account assets and Trading account liabilities, respectively.

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Derivative Financial Instruments - Additional Information (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Derivative [Line Items]
Cash collateral provided and not offset against derivative positions and included in Other assets	¥ 1,079,050	¥ 1,246,026
Cash collateral accepted and not offset against derivative positions and included in Other liabilities	¥ 587,426	¥ 846,426

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Derivative Financial Instruments (Summary of Gains and Losses Information Related to Net Investment Hedges) (Detail) - JPY (¥) ¥ in Millions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in OCI	¥ 1,538	¥ (1,044)
Financial instruments hedging foreign exchange risk
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in OCI	¥ 1,538	¥ (1,044)

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Derivative Financial Instruments (Summary of Gains and Losses Information Related to Net Investment Hedges) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Sep. 30, 2019
Financial instruments hedging foreign exchange risk
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated other comprehensive income reclassified to earnings	¥ (1,312)	¥ (260)

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Derivative Financial Instruments (Summary of Gains and Losses on Derivatives not Designated or Qualifying as Hedges) (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		¥ 24,542	¥ 174,483
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		32,791	210,909
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		26,277	(30,736)
Equity-related contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income	[1]	(31,999)	(494)
Credit-related contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income	[2]	(29,219)	(3,546)
Other contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		¥ 26,692	¥ (1,650)

[1] The net gains (losses) excluded from the assessment of the effectiveness of fair value hedges is not included in the above table.

[2] Amounts include the net gains (losses) of ¥(426) million and ¥(1,221) million on the credit derivatives economically managing the credit risk of loans during the six months ended September 30, 2019 and 2020, respectively.

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Derivative Financial Instruments (Summary of Gains and Losses on Derivatives not Designated or Qualifying as Hedges) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		¥ 24,542	¥ 174,483
Credit-related contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income	[1]	(29,219)	(3,546)
Credit-related contracts | Loans related to credit derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recorded in income		¥ (1,221)	¥ (426)

[1] Amounts include the net gains (losses) of ¥(426) million and ¥(1,221) million on the credit derivatives economically managing the credit risk of loans during the six months ended September 30, 2019 and 2020, respectively.

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Derivative Financial Instruments (Summary of Notional and Fair Value Amounts of Credit Derivatives) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Credit protection written
Credit Derivatives [Line Items]
Notional amount	¥ 3,217	¥ 1,816
Fair value	45	(5)
Credit protection written | Investment grade
Credit Derivatives [Line Items]
Notional amount	2,687	1,400
Fair value	37	(5)
Credit protection written | Non-investment grade
Credit Derivatives [Line Items]
Notional amount	530	416
Fair value	8
Credit protection purchased
Credit Derivatives [Line Items]
Notional amount	4,693	3,028
Fair value	¥ (67)	¥ 6

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Derivative Financial Instruments (Maximum Potential Amount of Future Payments for Credit Protection Written by Expiration Period) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Credit Derivatives [Line Items]
Maximum payout/Notional amount	¥ 3,217	¥ 1,816
One year or less
Credit Derivatives [Line Items]
Maximum payout/Notional amount	233	270
After one year through five years
Credit Derivatives [Line Items]
Maximum payout/Notional amount	2,793	1,368
After five years
Credit Derivatives [Line Items]
Maximum payout/Notional amount	¥ 191	¥ 178

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Derivative Financial Instruments (Quantitative Information about Derivative Instruments with Credit-risk-related Contingent Features) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Credit Derivatives [Line Items]
Aggregate fair value of derivative instruments with credit-risk-related contingent features in net liability positions	¥ 747	¥ 888
Collateral provided to counterparties in the normal course of business	703	818
Amount required to be posted as collateral or settled immediately if credit-risk-related contingent features were triggered	¥ 44	¥ 70

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Commitments and Contingencies (Summary of Maximum Potential Amount of Future Payments under Guarantees) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Performance guarantees
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	¥ 2,527	¥ 2,456
Guarantees on loans
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	266	301
Guarantees on securities
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	96	110
Other guarantees
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	2,306	2,314
Guarantees for repayment of trust principal
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	31	59
Liabilities of trust accounts
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	456	446
Derivative financial instruments
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	¥ 21,097	¥ 21,756

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Commitments and Contingencies (Summary of Maximum Potential Amount of Future Payments of Certain Guarantees Classified Based on Internal Ratings) (Detail) - Performance guarantees, Guarantees on loans, Guarantees on securities and Other guarantees - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	¥ 5,195	¥ 5,181
Investment grade
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	4,079	4,233
Non-investment grade
Guarantor Obligations [Line Items]
Maximum potential/Contractual or Notional amount	¥ 1,116	¥ 948

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Commitments and Contingencies (Summary of Contractual Amounts with Regard to Undrawn Commitments) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020	Mar. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments, contractual amounts of the undrawn commitments		¥ 86,896	¥ 77,323
Commitments to Extend Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments, contractual amounts of the undrawn commitments	[1]	86,359	76,633
Commercial letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments, contractual amounts of the undrawn commitments		¥ 537	¥ 690

[1] Commitments to extend credit include commitments to invest in securities.

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Variable Interest Entities and Securitizations (Consolidated Assets of Consolidated VIEs as well as Total Assets and Maximum Exposure to Loss for Significant Unconsolidated VIEs) (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	¥ 217,594,620	¥ 211,218,760
Significant unconsolidated VIEs- Maximum exposure to loss	491,000	521,000
Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	11,035,019	5,815,146
Unconsolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	2,423,000	2,376,000
Asset-backed commercial paper/loan programs | Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	2,045,000	2,160,000
Asset-backed securitizations
Variable Interest Entity [Line Items]
Significant unconsolidated VIEs- Maximum exposure to loss	8,000	7,000
Asset-backed securitizations | Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	780,000	572,000
Asset-backed securitizations | Unconsolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	77,000	77,000
Investments in securitization products | Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	370,000	370,000
Investment funds
Variable Interest Entity [Line Items]
Significant unconsolidated VIEs- Maximum exposure to loss	483,000	514,000
Investment funds | Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	2,283,000	2,694,000
Investment funds | Unconsolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	2,346,000	2,299,000
Trust arrangements and other | Consolidated VIEs
Variable Interest Entity [Line Items]
Consolidated VIEs- Consolidated assets	¥ 5,557,000	¥ 19,000

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Variable Interest Entities and Securitizations (Carrying Amounts and Classification of Assets and Liabilities on Consolidated Balance Sheets that Relate to Variable Interests in Significant Unconsolidated VIEs) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Assets on balance sheets related to unconsolidated VIEs:
Trading account assets		¥ 29,467,045	¥ 28,092,871
Loans		89,853,221	87,087,233
Total assets		217,594,620	211,218,760
Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:
Payables under securities lending transactions		1,475,850	1,423,638
Trading account liabilities		10,590,312	12,416,785
Total		208,454,567	202,043,136
Maximum exposure to loss		491,000	521,000
Unconsolidated VIEs
Assets on balance sheets related to unconsolidated VIEs:
Total assets		2,423,000	2,376,000
Unconsolidated VIEs | Mizuho Financial Group Inc
Assets on balance sheets related to unconsolidated VIEs:
Trading account assets		113,000	108,000
Investments		231,000	267,000
Loans		58,000	55,000
Total assets		402,000	430,000
Liabilities on balance sheets and maximum exposure to loss related to unconsolidated VIEs:
Payables under securities lending transactions		48,000	47,000
Trading account liabilities		2,000	2,000
Total		50,000	49,000
Maximum exposure to loss	[1]	¥ 491,000	¥ 521,000

[1] This represents the maximum amount the Group could possibly be required to record in its consolidated statements of income associated with on-balance-sheet exposures and off-balance-sheet liabilities such as undrawn commitments.

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Variable Interest Entities and Securitizations - Additional Information (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Variable Interest Entity [Line Items]
Long-term debt	¥ 11,049,044	¥ 10,346,152
Noncontrolling interests	390,077	663,259
Consolidated VIEs
Variable Interest Entity [Line Items]
Noncontrolling interests	275,000	541,000
Debt Instrument [Member]
Variable Interest Entity [Line Items]
Long-term debt	317,000	356,000
Assets associated with securitization transactions
Variable Interest Entity [Line Items]
Transferred assets continue to be carried on the consolidated balance sheets	174,000	176,000
Assets associated with loan participation transactions
Variable Interest Entity [Line Items]
Transferred assets continue to be carried on the consolidated balance sheets	¥ 142,000	¥ 153,000

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Summary of Noninterest Income (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Fee and commission income		¥ 428,317	¥ 403,992
Foreign exchange gains (losses)—net	[1]	22,785	27,923
Trading account gains (losses)—net	[2]	257,591	395,405
Investment gains (losses)—net:
Debt securities	[1]	46	31,092
Equity securities	[1]	266,119	(126,648)
Equity in earnings (losses) of equity method investees—net	[1]	5,788	22,066
Gains on disposal of premises and equipment	[1]	6,849	1,693
Other noninterest income	[2],[3]	23,715	34,839
Total noninterest income		1,011,210	790,362
Securities related business
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	78,441	64,498
Deposits related business
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	7,408	7,570
Lending related business
Disaggregation of Revenue [Line Items]
Fee and commission income	[2],[5]	79,619	68,609
Correspondent clearing
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	54,785	56,075
Investment advisory, management and administrative service
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	45,948	48,291
Fiduciary and trust
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	54,425	56,459
Agency business
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	15,064	15,152
Guarantee related business
Disaggregation of Revenue [Line Items]
Fee and commission income	[1]	15,560	13,898
Financial service, other
Disaggregation of Revenue [Line Items]
Fee and commission income	[4]	77,067	73,440
Financial service
Disaggregation of Revenue [Line Items]
Fee and commission income		¥ 428,317	¥ 403,992

[1] These amounts are revenues from contracts that do not meet the scope of ASC 606.

[2] Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

[3] These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

[4] These amounts are revenues from contracts within the scope of ASC 606, “Revenue from contracts with customers” (“ASC 606”).

[5] Most of the lending-related fees such as commitment fees and arrangement fees are not within the scope of ASC 606.

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Noninterest Income - Additional Information (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Other Revenues [Line Items]
Trust fees		¥ 25,000	¥ 25,000
Fees related to trust business		29,000	31,000
Trading account gains (losses)—net	[1]	257,591	395,405
Other noninterest income	[1],[2]	23,715	34,839
Revenue from contracts with customers ("ASC 606")
Other Revenues [Line Items]
Trading account gains (losses)—net		45,000	33,000
Other noninterest income		¥ 7,000	¥ 12,000

[1] Part of these amounts are considered to be revenues from contracts that are within the scope of ASC 606.

[2] These amounts include the net unrealized gains resulting from changes in fair values of structured notes that contain embedded derivatives. See Note 17 “Fair value” for further details.

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Fair Value - Additional Information (Detail) - JPY (¥) ¥ in Billions	6 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying amounts of other equity interests of which fair value is not readily determinable	¥ 402		¥ 420
Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3	1
Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Out Of Level3	1
Senior borrowings and bonds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
The differences between the aggregate fair value and aggregate unpaid principal balance of the notes for which the fair value option has been elected	61		¥ 112
Net unrealized gains (losses) resulting from changes in fair values of the notes	¥ 17	¥ 2
Investment funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Underlying assets, estimated remaining liquidation period	10 years
Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of liabilities transferred out of Level 3	¥ 35	6
Fair value of liabilities transferred into Level 3	19	¥ 17
Trading securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of assets transferred out of Level 3	¥ 1

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Fair Value (Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis, Including Fair Value Option Elected) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Assets:
Available-for-sale securities		¥ 26,546,800	¥ 19,112,952
Liabilities:
Long-term debt		2,802,428	2,537,082
Fair Value, Measurements, Recurring
Assets:
Equity securities with readily determinable fair values		3,016,000	2,765,000
Equity securities measured at net asset value	[1]	83,000	72,000
Other investments		56,000	39,000
Total assets measured at fair value		59,168,000	50,081,000
Liabilities:
Trading securities sold, not yet purchased		2,339,000	2,395,000
Long-term debt	[2]	2,802,000	2,537,000
Total liabilities measured at fair value		13,392,000	14,953,000
Fair Value, Measurements, Recurring | Trading Account Asset
Assets:
Securities measured at net asset value	[1],[3]	447,000	462,000
Fair Value, Measurements, Recurring | Interest rate contracts
Assets:
Assets, derivatives		6,135,000	7,232,000
Liabilities:
Liabilities, derivatives		5,728,000	6,788,000
Fair Value, Measurements, Recurring | Foreign exchange contracts
Assets:
Assets, derivatives		2,143,000	2,926,000
Liabilities:
Liabilities, derivatives		2,160,000	2,899,000
Fair Value, Measurements, Recurring | Equity-related contracts
Assets:
Assets, derivatives		397,000	310,000
Liabilities:
Liabilities, derivatives		260,000	266,000
Fair Value, Measurements, Recurring | Credit-related contracts
Assets:
Assets, derivatives		55,000	30,000
Liabilities:
Liabilities, derivatives		77,000	29,000
Fair Value, Measurements, Recurring | Other contracts
Assets:
Assets, derivatives		28,000	38,000
Liabilities:
Liabilities, derivatives		26,000	39,000
Fair Value, Measurements, Recurring | Japanese government bonds
Assets:
Assets, trading securities	[3]	3,268,000	1,538,000
Available-for-sale securities		19,920,000	12,603,000
Fair Value, Measurements, Recurring | Japanese local government bonds
Assets:
Assets, trading securities	[3]	138,000	170,000
Available-for-sale securities		407,000	273,000
Fair Value, Measurements, Recurring | U.S. Treasury bonds and federal agency securities
Assets:
Assets, trading securities	[3]	5,792,000	5,041,000
Available-for-sale securities		627,000	935,000
Fair Value, Measurements, Recurring | Other foreign government bonds
Assets:
Assets, trading securities	[3]	1,464,000	1,675,000
Available-for-sale securities		1,356,000	1,411,000
Fair Value, Measurements, Recurring | Agency mortgage-backed securities
Assets:
Assets, trading securities	[3]	4,348,000	3,390,000
Available-for-sale securities		520,000	505,000
Fair Value, Measurements, Recurring | Residential mortgage-backed securities
Assets:
Assets, trading securities	[3]	9,000	10,000
Available-for-sale securities		80,000	84,000
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities
Assets:
Available-for-sale securities		641,000	615,000
Fair Value, Measurements, Recurring | Certificates of deposit and commercial paper
Assets:
Assets, trading securities	[3]	1,259,000	1,036,000
Fair Value, Measurements, Recurring | Corporate bonds and other debt securities
Assets:
Assets, trading securities	[3],[4]	2,455,000	2,554,000
Fair Value, Measurements, Recurring | Equity securities
Assets:
Assets, trading securities	[3]	1,529,000	1,680,000
Fair Value, Measurements, Recurring | Japanese corporate bonds and other debt securities
Assets:
Available-for-sale securities		2,070,000	1,835,000
Fair Value, Measurements, Recurring | Foreign corporate bonds and other debt securities
Assets:
Available-for-sale securities		925,000	852,000
Fair Value, Measurements, Recurring | Level 1
Assets:
Equity securities with readily determinable fair values		2,976,000	2,670,000
Total assets measured at fair value		33,883,000	24,590,000
Liabilities:
Trading securities sold, not yet purchased		2,051,000	1,880,000
Total liabilities measured at fair value		2,222,000	2,243,000
Fair Value, Measurements, Recurring | Level 1 | Interest rate contracts
Assets:
Assets, derivatives		40,000	153,000
Liabilities:
Liabilities, derivatives		39,000	163,000
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts
Assets:
Assets, derivatives			9,000
Liabilities:
Liabilities, derivatives			8,000
Fair Value, Measurements, Recurring | Level 1 | Equity-related contracts
Assets:
Assets, derivatives		98,000	169,000
Liabilities:
Liabilities, derivatives		128,000	186,000
Fair Value, Measurements, Recurring | Level 1 | Other contracts
Assets:
Assets, derivatives		3,000	3,000
Liabilities:
Liabilities, derivatives		4,000	6,000
Fair Value, Measurements, Recurring | Level 1 | Japanese government bonds
Assets:
Assets, trading securities	[3]	3,257,000	1,516,000
Available-for-sale securities		19,600,000	11,950,000
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury bonds and federal agency securities
Assets:
Assets, trading securities	[3]	4,963,000	4,580,000
Available-for-sale securities		627,000	935,000
Fair Value, Measurements, Recurring | Level 1 | Other foreign government bonds
Assets:
Assets, trading securities	[3]	938,000	1,128,000
Available-for-sale securities		430,000	436,000
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds and other debt securities
Assets:
Assets, trading securities	[3],[4]	22,000	41,000
Fair Value, Measurements, Recurring | Level 1 | Equity securities
Assets:
Assets, trading securities	[3]	929,000	1,000,000
Fair Value, Measurements, Recurring | Level 2
Assets:
Equity securities with readily determinable fair values		40,000	95,000
Total assets measured at fair value		22,181,000	22,712,000
Liabilities:
Trading securities sold, not yet purchased		268,000	515,000
Long-term debt	[2]	2,164,000	1,916,000
Total liabilities measured at fair value		10,462,000	12,008,000
Fair Value, Measurements, Recurring | Level 2 | Interest rate contracts
Assets:
Assets, derivatives		6,088,000	7,070,000
Liabilities:
Liabilities, derivatives		5,679,000	6,611,000
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts
Assets:
Assets, derivatives		2,123,000	2,900,000
Liabilities:
Liabilities, derivatives		2,159,000	2,890,000
Fair Value, Measurements, Recurring | Level 2 | Equity-related contracts
Assets:
Assets, derivatives		287,000	125,000
Liabilities:
Liabilities, derivatives		109,000	47,000
Fair Value, Measurements, Recurring | Level 2 | Credit-related contracts
Assets:
Assets, derivatives		52,000	22,000
Liabilities:
Liabilities, derivatives		75,000	19,000
Fair Value, Measurements, Recurring | Level 2 | Other contracts
Assets:
Assets, derivatives		10,000	11,000
Liabilities:
Liabilities, derivatives		8,000	10,000
Fair Value, Measurements, Recurring | Level 2 | Japanese government bonds
Assets:
Assets, trading securities	[3]	11,000	22,000
Available-for-sale securities		320,000	653,000
Fair Value, Measurements, Recurring | Level 2 | Japanese local government bonds
Assets:
Assets, trading securities	[3]	138,000	170,000
Available-for-sale securities		407,000	273,000
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury bonds and federal agency securities
Assets:
Assets, trading securities	[3]	829,000	461,000
Fair Value, Measurements, Recurring | Level 2 | Other foreign government bonds
Assets:
Assets, trading securities	[3]	526,000	547,000
Available-for-sale securities		926,000	975,000
Fair Value, Measurements, Recurring | Level 2 | Agency mortgage-backed securities
Assets:
Assets, trading securities	[3]	4,348,000	3,390,000
Available-for-sale securities		520,000	505,000
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities
Assets:
Available-for-sale securities		53,000	53,000
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit and commercial paper
Assets:
Assets, trading securities	[3]	1,259,000	1,036,000
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds and other debt securities
Assets:
Assets, trading securities	[3],[4]	1,348,000	1,398,000
Fair Value, Measurements, Recurring | Level 2 | Equity securities
Assets:
Assets, trading securities	[3]	570,000	650,000
Fair Value, Measurements, Recurring | Level 2 | Japanese corporate bonds and other debt securities
Assets:
Available-for-sale securities		1,579,000	1,678,000
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate bonds and other debt securities
Assets:
Available-for-sale securities		747,000	678,000
Fair Value, Measurements, Recurring | Level 3
Assets:
Other investments		56,000	39,000
Total assets measured at fair value		2,574,000	2,245,000
Liabilities:
Trading securities sold, not yet purchased		20,000
Long-term debt	[2]	638,000	621,000
Total liabilities measured at fair value		708,000	702,000
Fair Value, Measurements, Recurring | Level 3 | Interest rate contracts
Assets:
Assets, derivatives		7,000	9,000
Liabilities:
Liabilities, derivatives		10,000	14,000
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts
Assets:
Assets, derivatives		20,000	17,000
Liabilities:
Liabilities, derivatives		1,000	1,000
Fair Value, Measurements, Recurring | Level 3 | Equity-related contracts
Assets:
Assets, derivatives		12,000	16,000
Liabilities:
Liabilities, derivatives		23,000	33,000
Fair Value, Measurements, Recurring | Level 3 | Credit-related contracts
Assets:
Assets, derivatives		3,000	8,000
Liabilities:
Liabilities, derivatives		2,000	10,000
Fair Value, Measurements, Recurring | Level 3 | Other contracts
Assets:
Assets, derivatives		15,000	24,000
Liabilities:
Liabilities, derivatives		14,000	23,000
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities
Assets:
Assets, trading securities	[3]	9,000	10,000
Available-for-sale securities		27,000	31,000
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities
Assets:
Available-for-sale securities		641,000	615,000
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds and other debt securities
Assets:
Assets, trading securities	[3],[4]	1,085,000	1,115,000
Fair Value, Measurements, Recurring | Level 3 | Equity securities
Assets:
Assets, trading securities	[3]	30,000	30,000
Fair Value, Measurements, Recurring | Level 3 | Japanese corporate bonds and other debt securities
Assets:
Available-for-sale securities		491,000	157,000
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate bonds and other debt securities
Assets:
Available-for-sale securities		¥ 178,000	¥ 174,000

[1] In accordance with ASC 820, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented for these classes of assets are intended to permit the reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position. The amounts of unfunded commitments related to these investments at March 31, 2020 and September 30, 2020 were ¥47 billion and ¥56 billion, respectively.

[2] Amounts represent items for which the Group elected the fair value option or for which it applied the practicability exception.

[3] Trading securities include foreign currency denominated securities for which the MHFG Group elected the fair value option.

[4] The amount includes CLO and convertible bonds, which are classified in Level 3.

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Fair Value (Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis, Including Fair Value Option Elected) (Parenthetical) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unfunded commitments	¥ 56	¥ 47

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Fair Value (Reconciliation for All Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) - JPY (¥) ¥ in Billions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Other investments
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance			¥ 35
Gains (losses) in Earnings	[1]		1
Gains (losses) in OCI		¥ 0
Transfers into Level 3		0
Transfers out of level 3		0
Purchases			10
Sales		(1)	0
Issuances		0
Settlements			(10)
Ending Balance			36
Change in unrealized gain (losses) still held	[2]		2
Trading securities sold, not yet purchased
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		0	1
Gains (losses) in Earnings	[3]	0
Gains (losses) in OCI		0
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		0	(9)
Sales		20	8
Issuances		0
Settlements		0
Ending Balance		20
Change in unrealized gain (losses) still held		0
Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		621	655
Gains (losses) in Earnings	[4]	(37)	(6)
Gains (losses) in OCI	[5]	(8)	0
Transfers into Level 3		19	17
Transfers out of level 3		(35)	(6)
Purchases		0
Sales		0
Issuances		108	108
Settlements		(120)	(134)
Ending Balance		638	646
Change in unrealized gain (losses) still held		(27)	(10)	[2]
Trading securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers out of level 3		(1)
Issuances		0
Trading securities | Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		10	11
Gains (losses) in Earnings	[3]	0
Gains (losses) in OCI		0
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		0
Sales		0
Issuances		0
Settlements		(1)	(1)
Ending Balance		9	10
Change in unrealized gain (losses) still held		0
Trading securities | Corporate bonds and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		1,115	1,044
Gains (losses) in Earnings	[3]	18	(15)
Gains (losses) in OCI		0
Transfers into Level 3		0
Transfers out of level 3		(1)
Purchases		189	338
Sales		(113)	(105)
Issuances		0
Settlements		(123)	(125)
Ending Balance		1,085	1,137
Change in unrealized gain (losses) still held		18	(14)	[2]
Trading securities | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		30	28
Gains (losses) in Earnings	[3]	(2)	2
Gains (losses) in OCI		0
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		2	1
Sales		0	0
Settlements		0	(1)
Ending Balance		30	30
Change in unrealized gain (losses) still held		(1)	0	[2]
Derivative financial instruments assets | Interest rate contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[6]	(5)	13
Gains (losses) in Earnings	[3]	(3)	(9)	[6]
Gains (losses) in OCI	[6]	0
Transfers into Level 3	[6]	0
Transfers out of level 3	[6]	0
Purchases	[6]	0
Sales	[6]	0
Issuances	[6]	0
Settlements	[6]	5	1
Ending Balance	[6]	(3)	5
Change in unrealized gain (losses) still held	[6]	1	(8)	[2]
Derivative financial instruments assets | Foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[6]	16	22
Gains (losses) in Earnings	[3]	4	(10)	[6]
Gains (losses) in OCI	[6]	0
Transfers into Level 3	[6]	0
Transfers out of level 3	[6]	0
Purchases	[6]	0
Sales	[6]	0
Issuances	[6]	0
Settlements	[6]	(1)	(2)
Ending Balance	[6]	19	10
Change in unrealized gain (losses) still held	[6]	5	(9)	[2]
Derivative financial instruments assets | Equity-related contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[6]	(17)	(5)
Gains (losses) in Earnings	[3]	4	1	[6]
Gains (losses) in OCI	[6]	0
Transfers into Level 3	[6]	0
Transfers out of level 3	[6]	0
Purchases	[6]	0
Sales	[6]	0
Issuances	[6]	0
Settlements	[6]	2	(3)
Ending Balance	[6]	(11)	(7)
Change in unrealized gain (losses) still held	[6]	3	2	[2]
Derivative financial instruments assets | Credit-related contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[6]	(2)	1
Gains (losses) in Earnings	[3]	3
Gains (losses) in OCI	[6]	0
Transfers into Level 3	[6]	1
Transfers out of level 3	[6]	1
Purchases	[6]	0
Sales	[6]	0
Issuances	[6]	0
Settlements	[6]	(2)
Ending Balance	[6]	1	1
Change in unrealized gain (losses) still held	[6]	1
Derivative financial instruments assets | Other contracts
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	[6]	1	1
Gains (losses) in Earnings	[3]	0
Gains (losses) in OCI	[6]	0
Transfers into Level 3	[6]	0
Transfers out of level 3	[6]	0
Purchases	[6]	0
Sales	[6]	0
Issuances	[6]	0
Settlements	[6]	0
Ending Balance	[6]	1	1
Change in unrealized gain (losses) still held	[6]	0
Available-for-sale securities | Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		31	40
Gains (losses) in Earnings	[1]	0
Gains (losses) in OCI	[5]	0
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		0
Sales		0
Issuances		0
Settlements		(4)	(7)
Ending Balance		27	33
Change in unrealized gain (losses) still held		0
Available-for-sale securities | Commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		615	500
Gains (losses) in Earnings	[1]	0
Gains (losses) in OCI	[5]	1	1
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		78	89
Sales		(51)	(35)
Issuances		0
Settlements		(2)	(6)
Ending Balance		641	549
Change in unrealized gain (losses) still held		0
Available-for-sale securities | Japanese corporate bonds and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		157	120
Gains (losses) in Earnings	[1]	(7)	1
Gains (losses) in OCI	[5]	8	4
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		344	97
Sales		0	0
Issuances		0
Settlements		(11)	(53)
Ending Balance		491	169
Change in unrealized gain (losses) still held		0
Available-for-sale securities | Foreign corporate bonds and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		174	103
Gains (losses) in Earnings	[1]	1
Gains (losses) in OCI	[5]	8	(5)
Transfers into Level 3		0
Transfers out of level 3		0
Purchases		31	38
Sales		0
Issuances		0
Settlements		(36)	(3)
Ending Balance		178	¥ 133
Change in unrealized gain (losses) still held		0
Available-for-sale securities | Other investments
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		39
Gains (losses) in Earnings	[1]	(1)
Purchases		38
Settlements		(19)
Ending Balance		56
Change in unrealized gain (losses) still held		¥ (1)

[1] Gains (losses) in Earnings are reported in Investment gains (losses)-net.

[2] Amounts represent total gains or losses recognized in earnings and OCI during the period. These gains or losses were attributable to the change in fair value relating to assets and liabilities classified as Level 3 that were still held at September 30, 2019 and 2020.The amounts of unrealized gains (losses) in OCI related to Available-for-sale securities and Long-term debt were ¥7 billion and ¥(8) billion, at September 30, 2020, respectively.

[3] Gains (losses) in Earnings are reported in Trading account gains (losses)-net, Foreign exchange gains (losses)-net or Other noninterest income (expenses).

[4] Gains (losses) in Earnings are reported in Other noninterest income (expenses).

[5] Gains (losses) in OCI are reported in Other comprehensive income (loss).

[6] Total Level 3 derivative exposures have been netted on the table for presentation purposes only.

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Fair Value (Reconciliation for All Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Parenthetical) (Detail) ¥ in Billions	Sep. 30, 2020 JPY (¥)
Fair Value Disclosures [Abstract]
unrealized gains (losses) in OCI related to Available-for-sale securities	¥ 7
unrealized gains (losses) in OCI related to Long-term debt	¥ (8)

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Fair Value (Quantitative Information about Significant Unobservable Inputs Related to Material Classes of Level 3 Assets and Liabilities) (Detail) ¥ in Millions		Sep. 30, 2020 JPY (¥)		Mar. 31, 2020 JPY (¥)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt		¥ 2,802,428		¥ 2,537,082
Available For Sale And Trading Securities | Residential mortgage-backed securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		36,000		41,000
Available For Sale And Trading Securities | Commercial mortgage-backed securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		641,000		615,000
Available For Sale And Trading Securities | Corporate bonds and other debt securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		1,754,000		1,446,000
Derivative Financial Instruments | Interest rate contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments		(3,000)		(5,000)
Derivative Financial Instruments | Foreign exchange contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments		19,000		16,000
Derivative Financial Instruments | Equity-related contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments		(11,000)		(17,000)
Derivative Financial Instruments | Credit-related contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments		1,000		(2,000)
Derivative Financial Instruments | Other contracts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments		1,000
Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt		¥ 638,000		¥ 621,000
Minimum | Other contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		0
Minimum | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		3		4
Minimum | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	1		13
Minimum | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		0		0
Minimum | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	0		0
Minimum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Interest rate contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2],[3]			0
Minimum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2],[3]			0
Minimum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	0		0
Minimum | Measurement Input, Default Rate [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	0		0
Minimum | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		100		100
Minimum | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	10		10
Minimum | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		5		5
Minimum | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	25		61
Minimum | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Commercial mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		6		7
Minimum | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		4	[1]	5	[4]
Minimum | Measurement Input, IR - IR correlation [Member] | Derivative Financial Instruments | Interest rate contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	23		23
Minimum | Measurement Input, IR - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	23		23
Minimum | Measurement Input, FX - IR correlation [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	27		(37)
Minimum | Measurement Input, FX - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	27		(37)
Minimum | Measurement Input, FX - FX correlation [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	46		56
Minimum | Measurement Input, FX - FX correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	46		56
Minimum | Measurement Input, Equity - IR correlation [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	25		25
Minimum | Measurement Input, Equity - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	25		25
Minimum | Measurement Input, Equity - FX correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	33		(33)
Minimum | Measurement Input, Equity volatility [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	12		13
Minimum | Measurement Input, Equity volatility [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	13		15
Minimum | Measurement Input, Credit correlation [Member] | Derivative Financial Instruments | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	35		30
Minimum | Measurement Input, Credit correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	18		15
Minimum | Measurement Input, Equity correlation [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	0		0
Minimum | Measurement Input, Equity correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	0		0
Maximum | Other contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		57
Maximum | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		16		16
Maximum | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	22		21
Maximum | Measurement Input, Default Rate [Member] | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities				1
Maximum | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		1
Maximum | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	3		2
Maximum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Interest rate contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2],[3]			63
Maximum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2],[3]			63
Maximum | Measurement Input, Default Rate [Member] | Derivative Financial Instruments | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	7		15
Maximum | Measurement Input, Default Rate [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	6		12
Maximum | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		100		100
Maximum | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	69		70
Maximum | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		170		170
Maximum | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[1]	173		1,160
Maximum | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Commercial mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		185		185
Maximum | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities		696	[1]	1,528	[4]
Maximum | Measurement Input, IR - IR correlation [Member] | Derivative Financial Instruments | Interest rate contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	100		100
Maximum | Measurement Input, IR - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	100		100
Maximum | Measurement Input, FX - IR correlation [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	52		49
Maximum | Measurement Input, FX - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	52		50
Maximum | Measurement Input, FX - FX correlation [Member] | Derivative Financial Instruments | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	63		65
Maximum | Measurement Input, FX - FX correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	63		65
Maximum | Measurement Input, Equity - IR correlation [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	25		25
Maximum | Measurement Input, Equity - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	25		25
Maximum | Measurement Input, Equity - FX correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	100		100
Maximum | Measurement Input, Equity volatility [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	96		157
Maximum | Measurement Input, Equity volatility [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	96		157
Maximum | Measurement Input, Credit correlation [Member] | Derivative Financial Instruments | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	100		100
Maximum | Measurement Input, Credit correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	100		100
Maximum | Measurement Input, Equity correlation [Member] | Derivative Financial Instruments | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[2]	100		100
Maximum | Measurement Input, Equity correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[2]	100		100
Weighted Average | Other contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	36
Weighted Average | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	7		7
Weighted Average | Measurement Input, Prepayment Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	19		21
Weighted Average | Measurement Input, Default Rate [Member] | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	1
Weighted Average | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	0		0
Weighted Average | Measurement Input, Default Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	1		2
Weighted Average | Measurement Input, Default Rate [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	2
Weighted Average | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	100		100
Weighted Average | Measurement Input Recovery Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	67		67
Weighted Average | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Residential mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	50		52
Weighted Average | Measurement Input, Discount Rate [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	123		256
Weighted Average | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Commercial mortgage-backed securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	21		22
Weighted Average | Measurement Input Discount Rate1 [Member] | Available For Sale And Trading Securities | Corporate bonds and other debt securities | Discounted Cash Flows Valuation Technique [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Trading securities	[5]	233		58
Weighted Average | Measurement Input, IR - IR correlation [Member] | Derivative Financial Instruments | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	76
Weighted Average | Measurement Input, IR - IR correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	76
Weighted Average | Measurement Input, FX - IR correlation [Member] | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	28
Weighted Average | Measurement Input, FX - IR correlation [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	35
Weighted Average | Measurement Input, FX - FX correlation [Member] | Foreign exchange contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	55
Weighted Average | Measurement Input, FX - FX correlation [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	55
Weighted Average | Measurement Input, Equity - IR correlation [Member] | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	25
Weighted Average | Measurement Input, Equity - IR correlation [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	25
Weighted Average | Measurement Input, Equity - FX correlation [Member] | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	88
Weighted Average | Measurement Input, Equity - FX correlation [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	(3)
Weighted Average | Measurement Input, Equity volatility [Member] | Equity-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	43
Weighted Average | Measurement Input, Equity volatility [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	29
Weighted Average | Measurement Input, Credit correlation [Member] | Credit-related contracts | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivatives financial instruments	[5]	66
Weighted Average | Measurement Input, Credit correlation [Member] | Long-term debt | Internal Valuation Model
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	66
Weighted Average | Measurement Input, Equity correlation [Member] | Long-term debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term debt	[5]	86

[1] These inputs are mainly used for determining the fair values of securitization products such as CDO, CLO and ABS, other than RMBS and CMBS.

[2] Internal valuation model includes discounted cash flow models and the Black-Scholes option pricing model.

[3] This input represents the counterparty default rate derived from the MHFG Group’s own internal credit analyses.

[4] This input is mainly used for determining the fair values of Japanese corporate bonds and foreign corporate bonds.

[5] Averages are calculated by weighting each input by the relative fair value of the respective financial instruments except for derivative related inputs where medians are used.

XML

Fair Value (Summary of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Detail) - JPY (¥) ¥ in Millions	Sep. 30, 2020	Mar. 31, 2020
Assets:
Equity securities (without readily determinable fair values)	¥ 402,194	¥ 419,775
Fair Value, Measurements, Nonrecurring
Assets:
Loans	131,000	90,000
Loans held-for-sale	17,000	26,000
Equity securities (without readily determinable fair values)	1,000	2,000
Other investments	52,000
Premises and equipment-net	0	1,000
Total assets measured at fair value	201,000	119,000
Fair Value, Measurements, Nonrecurring | Aggregate cost
Assets:
Loans	200,000	136,000
Loans held-for-sale	18,000	26,000
Equity securities (without readily determinable fair values)	2,000	2,000
Other investments	59,000
Premises and equipment-net	1,000	12,000
Other assets		3,000
Goodwill		2,000
Total assets measured at fair value	280,000	181,000
Fair Value, Measurements, Nonrecurring | Level 1
Assets:
Loans	0
Loans held-for-sale	0
Equity securities (without readily determinable fair values)	0
Other investments	31,000
Premises and equipment-net	0
Total assets measured at fair value	31,000	0
Fair Value, Measurements, Nonrecurring | Level 2
Assets:
Loans	2,000	0
Loans held-for-sale	11,000	20,000
Equity securities (without readily determinable fair values)	0
Other investments	0
Premises and equipment-net	0	1,000
Total assets measured at fair value	13,000	21,000
Fair Value, Measurements, Nonrecurring | Level 3
Assets:
Loans	129,000	90,000
Loans held-for-sale	6,000	6,000
Equity securities (without readily determinable fair values)	1,000	2,000
Other investments	21,000
Premises and equipment-net	0	0
Total assets measured at fair value	¥ 157,000	¥ 98,000

XML

Fair Value (Carrying Amounts and Fair Values of Certain Financial Instruments, Excluding Financial Instruments Carried at Fair Value on a Recurring Basis and Those outside Scope of ASC 825) (Detail) - JPY (¥) ¥ in Millions		Sep. 30, 2020	Mar. 31, 2020
Financial liabilities:
Long-term debt		¥ 2,802,428	¥ 2,537,082
Carrying amount
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		58,623,000	63,755,000
Investments		790,000	862,000
Loans, net of allowance	[1]	89,611,000	86,914,000
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640,000	51,954,000
Interest-bearing deposits		118,333,000	114,653,000
Due to trust accounts		564,000	250,000
Other short-term borrowings		7,526,000	4,914,000
Long-term debt		8,266,000	7,821,000
Estimated fair value
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		58,623,000	63,755,000
Investments		812,000	875,000
Loans, net of allowance	[1]	90,983,000	88,124,000
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640,000	51,954,000
Interest-bearing deposits		118,347,000	114,659,000
Due to trust accounts		564,000	250,000
Other short-term borrowings		7,526,000	4,914,000
Long-term debt		8,493,000	7,708,000
Estimated fair value | Level 1
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		42,233,000	1,318,000
Investments		491,000	493,000
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions			29,812,000
Interest-bearing deposits			58,935,000
Estimated fair value | Level 2
Financial assets:
Cash and due from banks, interest-bearing deposits in other banks, call loans and funds sold, and receivables under resale agreements and securities borrowing transactions		16,390,000	62,437,000
Investments		321,000	382,000
Financial liabilities:
Noninterest-bearing deposits, call money and funds purchased, and payables under repurchase agreements and securities lending transactions		53,640,000	22,142,000
Interest-bearing deposits		118,347,000	55,724,000
Due to trust accounts		564,000	250,000
Other short-term borrowings		7,526,000	4,914,000
Long-term debt		7,155,000	6,813,000
Estimated fair value | Level 3
Financial assets:
Loans, net of allowance	[1]	90,983,000	88,124,000
Financial liabilities:
Long-term debt		¥ 1,338,000	¥ 895,000

[1] Loans, net of allowance include items measured at fair value on a nonrecurring basis.

XML

Offsetting of Financial Assets and Financial Liabilities (Information of Offsetting of Financial Assets and Financial Liabilities) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020		Mar. 31, 2020	[1]
Offsetting Financial Assets And Financial Liabilities [Line Items]
Derivative assets, Gross amounts recognized		¥ 8,758		¥ 9,819
Derivative assets, Gross amounts offset on the balance sheet		0		0
Derivative assets, Net amounts presented on the balance sheet	[2]	8,758	[3]	9,819
Derivative assets, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(6,373)		(7,723)
Derivative assets, Amounts not offset on the balance sheet, Cash collateral	[4]	(486)		(629)
Derivative assets, Net amounts		1,899		1,467
Receivables under resale agreements, Gross amounts recognized		12,666		17,347
Receivables under resale agreements, Gross amounts offset on the balance sheet		0		0
Receivables under resale agreements, Net amounts presented on the balance sheet	[2]	12,666	[6]	17,347
Receivables under resale agreements, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(11,479)		(17,197)
Receivables under resale agreements, Amounts not offset on the balance sheet, Cash collateral	[4]	0		0
Receivables under resale agreements, Net amounts		1,187		150
Receivables under securities borrowing transactions, Gross amounts recognized		2,186		1,753
Receivables under securities borrowing transactions, Gross amounts offset on the balance sheet		0		0
Receivables under securities borrowing transactions, Net amounts presented on the balance sheet	[2]	2,186	[7]	1,753
Receivables under securities borrowing transactions, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(1,846)		(1,709)
Receivables under securities borrowing transactions, Amounts not offset on the balance sheet, Cash collateral	[4]	0		0
Receivables under securities borrowing transactions, Net amounts		340		44
Financial assets, Gross amounts recognized, Total		23,610		28,919
Financial assets, Gross amounts offset on the balance sheet, Total		0		0
Financial assets, Net amounts presented on the balance sheet, Total	[2]	23,610		28,919
Financial assets, Amounts not offset on the balance sheet, Financial instruments, Total	[4],[5]	(19,698)		(26,629)
Financial assets, Amounts not offset on the balance sheet, Cash collateral, Total	[4]	(486)		(629)
Financial assets, Net amounts, Total		3,426		1,661
Derivative liabilities, Gross amounts recognized		8,251		9,220
Derivative liabilities, Gross amounts offset on the balance sheet		0		0
Derivative liabilities, Net amounts presented on the balance sheet	[2]	8,251	[3]	9,220
Derivative liabilities, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(6,148)		(7,519)
Derivative liabilities, Amounts not offset on the balance sheet, Cash collateral	[4]	(930)		(1,215)
Derivative liabilities, Net amounts		1,173		486
Payables under repurchase agreements, Gross amounts recognized		19,326		17,542
Payables under repurchase agreements, Gross amounts offset on the balance sheet		0		0
Payables under repurchase agreements, Net amounts presented on the balance sheet	[2]	19,326	[6]	17,542
Payables under repurchase agreements, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(18,038)		(17,191)
Payables under repurchase agreements, Amounts not offset on the balance sheet, Cash collateral	[4]	0		0
Payables under repurchase agreements, Net amounts		1,288		351
Payables under securities lending transactions, Gross amounts recognized		1,476		626
Payables under securities lending transactions, Gross amounts offset on the balance sheet		0		0
Payables under securities lending transactions, Net amounts presented on the balance sheet	[2]	1,476	[7]	626
Payables under securities lending transactions, Amounts not offset on the balance sheet, Financial instruments	[4],[5]	(1,235)		(623)
Payables under securities lending transactions, Amounts not offset on the balance sheet, Cash collateral	[4]	0		0
Payables under securities lending transactions, Net amounts		241		3
Financial liabilities, Gross amounts recognized, Total		29,053		27,388
Financial liabilities, Gross amounts offset on the balance sheet, Total		0		0
Financial liabilities, Net amounts presented on the balance sheet, Total	[2]	29,053		27,388
Financial liabilities, Amounts not offset on the balance sheet, Financial instruments, Total	[4],[5]	(25,421)		(25,333)
Financial liabilities, Amounts not offset on the balance sheet, Cash collateral, Total	[4]	(930)		(1,215)
Financial liabilities, Net amounts, Total		¥ 2,702		¥ 840

[1] Amounts relating to master netting arrangements or similar agreements where the MHFG Group does not have the legal right of set-off or where uncertainty exists as to the enforceability of these agreements are excluded. For derivatives, the table includes amounts relating to over-the-counter (“OTC”) and OTC-cleared derivatives that are subject to enforceable master netting arrangements or similar agreements.

[2] Derivative assets and liabilities are recorded in Trading account assets and Trading account liabilities, respectively.

[3] The amounts of derivative assets and liabilities subject to enforceable master netting arrangements or similar agreements at September 30, 2020 were ¥8,154 billion and ¥7,528 billion, respectively.

[4] Amounts do not exceed the net amounts presented on the balance sheet and do not include the effect of overcollateralization, where it exists.

[5] For derivatives, amounts include derivative assets or liabilities and securities collateral that are eligible for offsetting under enforceable master netting arrangements or similar agreements.

[6] The amounts of Receivables under resale agreements and Payables under repurchase agreements subject to enforceable industry standard master repurchase agreements with netting terms at September 30, 2020 were ¥11,490 billion and ¥18,755 billion, respectively.

[7] The amounts of Receivables under securities borrowing transactions and Payables under securities lending transactions subject to enforceable industry standard master lending agreements with netting terms at September 30, 2020 were ¥1,915 billion and ¥1,243 billion, respectively.

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Offsetting of Financial Assets and Financial Liabilities (Information of Offsetting of Financial Assets and Financial Liabilities) (Parenthetical) (Detail) ¥ in Billions	Sep. 30, 2020 JPY (¥)
Offsetting Financial Assets And Financial Liabilities [Line Items]
Receivables under resale agreement subject to enforceable master netting arrangements	¥ 11,490
Payables under repurchase agreement subject to enforceable master netting arrangements	18,755
Receivables under securities transaction borrowing subject to master netting arrangement	1,915
Payables under securities transaction lending subject to master netting arragement	1,243
Subject To Enforceable Master Netting Arragement [Member]
Offsetting Financial Assets And Financial Liabilities [Line Items]
Derivative assets subject to enforceable master netting arrangements	8,154
Derivative liabilities subject to enforceable master netting arrangements	¥ 7,528

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Repurchase Agreements and Securities Lending Transactions Accounted for as Secured Borrowings (Gross Amounts of Liabilities by Remaining Contractual Maturity) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020	Mar. 31, 2020
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	[1]	¥ 19,326	¥ 17,971
Securities lending transactions	[1]	1,476	1,424
Total		20,802	19,395
Overnight and continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		10,154	6,357
Securities lending transactions		798	877
Total		10,952	7,234
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		3,684	5,467
Securities lending transactions		298	231
Total		3,982	5,698
31 to 90 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		3,162	4,867
Securities lending transactions		50
Total		3,212	4,867
Greater than 90 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		2,326	1,280
Securities lending transactions		330	316
Total		¥ 2,656	¥ 1,596

[1] Amounts exceeded the gross amounts recognized in Note 18 “Offsetting of financial assets and financial liabilities” by ¥1,227 billion and ¥804 billion, at March 31, 2020 and September 30, 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

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Repurchase Agreements and Securities Lending Transactions Accounted for as Secured Borrowings (Gross Amounts of Liabilities by Class of Underlying Collateral) (Detail) - JPY (¥) ¥ in Billions		Sep. 30, 2020	Mar. 31, 2020
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	[1]	¥ 19,326	¥ 17,971
Securities lending transactions	[1]	1,476	1,424
Japanese government bonds and Japanese local government bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		3,355	1,790
Securities lending transactions		372	269
Foreign government bonds and foreign agency mortgage-backed securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		15,100	15,218
Securities lending transactions		368	359
Commercial Paper and Corporate Bonds
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		209	273
Securities lending transactions		53	50
Equity Securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		579	542
Securities lending transactions		668	730
Other securities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements		83	148
Securities lending transactions		¥ 15	¥ 16

[1] Amounts exceeded the gross amounts recognized in Note 18 “Offsetting of financial assets and financial liabilities” by ¥1,227 billion and ¥804 billion, at March 31, 2020 and September 30, 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

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Repurchase Agreements and Securities Lending Transactions Accounted for as Secured Borrowings (Gross Amounts of Liabilities by Class of Underlying Collateral) (Parenthetical) (Detail) - JPY (¥) ¥ in Billions	Sep. 30, 2020	Mar. 31, 2020
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Amounts exceeded the gross amounts recognized in offsetting of financial assets and financial liabilities	¥ 804	¥ 1,227

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Repurchase Agreements and Securities Lending Transactions Accounted for as Secured Borrowings - Additional Information (Detail)	Sep. 30, 2020	Mar. 31, 2020
Brokers and Dealers [Abstract]
Assets Pledged As Collateral As A Percentage Of Total Assets	5.00%	2.00%

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Business Segment Information - Additional Information (Detail)	6 Months Ended
	Sep. 30, 2020 Segment
Segment Reporting Information [Line Items]
Number of operating segments	5

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Business Segment Information (Reportable Segment Information Derived from Internal Management Reporting Systems, on Basis of Japanese GAAP) (Detail) - JPY (¥) ¥ in Billions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	¥ 1,093.3	¥ 1,022.8	[2]
General and administrative expenses	[3]	679.3	688.4	[2]
Equity in earnings (losses) of equity method investees—net		11.5	19.0	[2]
Amortization of goodwill and others		6.1	6.6	[2]
Others	[2]		(5.9)
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	419.4	340.9	[2]
Fixed assets	[5]	1,721.3	1,701.6	[2]
Operating Segments | Retail And Business Banking Company
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	307.4	322.0	[2]
General and administrative expenses	[3]	315.0	330.7	[2]
Equity in earnings (losses) of equity method investees—net		3.6	6.4	[2]
Amortization of goodwill and others		1.1	1.4	[2]
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	(5.1)	(3.7)	[2]
Fixed assets	[5]	518.5	508.2	[2]
Operating Segments | Corporate And Institutional Company
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	234.2	220.2	[2]
General and administrative expenses	[3]	104.6	104.0	[2]
Equity in earnings (losses) of equity method investees—net		2.4	1.1	[2]
Amortization of goodwill and others		0.1	0.1	[2]
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	131.9	117.2	[2]
Fixed assets	[5]	186.3	208.4	[2]
Operating Segments | Global Corporate Company
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	222.6	203.9	[2]
General and administrative expenses	[3]	121.4	118.6	[2]
Equity in earnings (losses) of equity method investees—net		5.8	6.0	[2]
Amortization of goodwill and others		0.2	0.2	[2]
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	106.8	91.1	[2]
Fixed assets	[5]	157.0	160.1	[2]
Operating Segments | Global Markets Company
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	291.5	235.0	[2]
General and administrative expenses	[3]	105.6	101.4	[2]
Amortization of goodwill and others		0.4	0.5	[2]
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	185.5	133.1	[2]
Fixed assets	[5]	90.9	92.8	[2]
Operating Segments | Asset Management Company
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1]	23.6	25.5	[2]
General and administrative expenses	[3]	15.7	16.4	[2]
Equity in earnings (losses) of equity method investees—net		0.4	0.5	[2]
Amortization of goodwill and others		3.8	3.9	[2]
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4]	4.5	5.7	[2]
Fixed assets	[5]	0.1	0.1	[2]
Others
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits + Net gains (losses) related to ETFs and others	[1],[6]	14.0	16.2	[2]
General and administrative expenses	[3],[6]	17.0	17.3	[2]
Equity in earnings (losses) of equity method investees—net	[6]	(0.7)	5.0	[2]
Amortization of goodwill and others	[6]	0.5	0.5	[2]
Others	[2],[6]		(5.9)
Net business profits (losses) + Net gains (losses) related to ETFs and others	[4],[6]	(4.2)	(2.5)	[2]
Fixed assets	[5],[6]	¥ 768.5	¥ 732.0	[2]

[1] “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by MHBK and MHTB on their non-consolidated basis and net gains (losses) on operating investment securities of MHSC on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

[2] Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

[3] “General and administrative expenses” excludes non-allocated gains (losses), net.

[4] Net business profits (losses) is used in Japan as a measure of the profitability of core banking operations, and is defined as gross profits (as defined above) less general and administrative expenses plus equity in earnings (losses) of equity method investees-net and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan.

[5] “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

[6] “Others” includes the following items: • profits and expenses pertaining to consolidated subsidiaries that are not subject to allocation; • consolidating adjustments, including elimination internal transaction between each segment; • equity in earnings (losses) of equity method investees-net that are not subject to allocation; and • profits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.

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Business Segment Information (Reportable Segment Information Derived from Internal Management Reporting Systems, on Basis of Japanese GAAP) (Parenthetical) (Detail) - JPY (¥) ¥ in Billions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits and net gains (losses) related to ETFs and others	[1]	¥ 1,093.3	¥ 1,022.8	[2]
Exchange Traded Funds
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits and net gains (losses) related to ETFs and others		(19.0)	(8.0)
Global Markets Company | Exchange Traded Funds
Japan Gaap Schedule of Segment Reporting Information, by Segment [Line Items]
Gross profits and net gains (losses) related to ETFs and others		¥ (20.4)	¥ (11.2)

[1] “Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by MHBK and MHTB on their non-consolidated basis and net gains (losses) on operating investment securities of MHSC on its consolidated basis. For the six months ended September 30, 2019 and 2020, net gains (losses) related to ETFs and others amounted to ¥(8.0) billion and ¥(19.0) billion, respectively, of which ¥(11.2) billion and ¥(20.4) billion are included in “Global Markets Company,” respectively.

[2] Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

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Business Segment Information (Reconciliation of Total Net Business Profits under Internal Management Reporting Systems to Income Before Income Tax Expense on Consolidated Statements of Income) (Detail) - JPY (¥) ¥ in Millions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net business profits (losses) + Net gains (losses) related to ETFs and others		¥ 419,400	¥ 340,900
Adjustment to reconcile management reporting to Japanese GAAP:
General and administrative expenses: non-allocated gains (losses), net		4,100	24,500
Expenses related to portfolio problems (including reversal of (provision for) general reserve for losses on loans)		(84,800)	(19,100)
Gains on reversal of reserves for possible losses on loans, and others		3,600	7,900
Net gains (losses) related to stocks—Net gains (losses) related to ETFs and others		(50,500)	55,400
Net extraordinary gains (losses)		65,800	(5,000)
Others		(24,200)	(13,100)
Income before income tax expense under Japanese GAAP		333,400	391,500
Adjustment to reconcile Japanese GAAP to U.S. GAAP:
Derivative financial instruments and hedging activities		(12,900)	105,000
Investments		285,400	(163,900)
Loans		(10,800)	0
Allowances for credit losses	[1]	35,800	500
Premises and equipment		(37,100)	(51,500)
Land revaluation		2,700	500
Business combinations		(4,300)	4,100
Pension liabilities		(84,500)	(27,300)
Consolidation of variable interest entities		36,600	40,300
Foreign currency translation		(200)	14,300
Others		3,700	(3,000)
Income before income tax expense		¥ 547,841	¥ 310,456

[1] The MHFG Group adopted ASU No.2016-13, 2019-04, 2019-05, and 2019-11 on April 1, 2020. Allowances for credit losses for the six months ended September 30, 2020 substitute allowances for loan losses and off-balance-sheet instruments for the six months ended September 30, 2019. See Note 2 “Issued accounting pronouncements” for further details.

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Business Segment Information (Reconciliation of Assets from Segment to Consolidated) (Detail) - JPY (¥) ¥ in Billions		6 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Schedule Of Assets By Segment [Line Items]
Fixed assets	[1]	¥ 1,721.3	¥ 1,701.6	[2]
U.S. GAAP adjustments	[3]	818.4	964.5
Premises and equipment-net, Goodwill, Intangible assets, and right-of-use assets related to operating leases included in Other assets		¥ 2,539.7	¥ 2,666.1

[1] “Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment-net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet metric that management uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments, and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria.

[2] Income and expenses of foreign branches of MHBK and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.

[3] The U.S. GAAP adjustments are primarily comprised of GAAP differences mainly from right-of-use assets related to operating leases not recognized under Japanese GAAP; internally developed software, which was impaired under Japanese GAAP; land, which was revalued under Japanese GAAP; and the consolidation of certain variable interest entities, which are not consolidated under Japanese GAAP.

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Subsequent events - Additional Information (Detail) - JPY (¥) ¥ in Billions		6 Months Ended
	Jun. 25, 2020	Sep. 30, 2020
Subsequent Events [Abstract]
Stockholders equity stock consolidation	1-for-10 share
Decrease in defined benefit obligations		¥ 22
Decrease in plan assets		¥ 24