Skip to main content
Equibles

Mizuho Financial Group Inc 6-K, filed Feb 14, 2020

Mizuho Financial Group Inc (MFG)

6-K 2020-02-14 For: 2020-02-14
View Original
Added on July 08, 2026

About this 6-K

Mizuho Financial Group Inc filed this 6-K on February 14, 2020.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 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):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    .

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-233354) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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: February 14, 2020
Mizuho Financial Group, Inc.
By: /s/ Makoto Umemiya
Name: Makoto Umemiya
Title: Managing Executive Officer / Group CFO

UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2019

On February 14, 2020, we published our unaudited quarterly consolidated financial statements as of and for the nine months ended December 31, 2019 prepared in accordance with Japanese GAAP as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects—Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.

- 1 -

Financial Information

1. The quarterly consolidated financial statements of Mizuho Financial Group, Inc. (“MHFG”) are prepared<br>in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements” (Cabinet Office Ordinance No. 64 of 2007). The classification of assets and liabilities and that of<br>income and expenses are in accordance with the “Ordinance for Enforcement of the Banking Act” (Ordinance of the Ministry of Finance No. 10 of 1982).
2. Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial<br>statements of MHFG for the nine months ended December 31, 2019, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.
--- ---

- 2 -

I. Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

(Millions of yen)
As of<br><br><br>March 31, 2019 As of<br><br><br>December 31, 2019
Assets
Cash and Due from Banks 45,108,602 42,291,711
Call Loans and Bills Purchased 648,254 659,340
Receivables under Resale Agreements 12,997,628 15,183,913
Guarantee Deposits Paid under Securities Borrowing Transactions 2,578,133 1,865,099
Other Debt Purchased 2,828,959 2,965,436
Trading Assets 12,043,608 12,880,937
Money Held in Trust 351,889 385,340
Securities *2 29,774,489 *2 30,064,707
Loans and Bills Discounted *1 78,456,935 *1 81,415,132
Foreign Exchange Assets 1,993,668 2,119,072
Derivatives other than for Trading Assets 1,328,227 1,261,930
Other Assets 4,229,589 4,110,279
Tangible Fixed Assets 1,037,006 1,099,078
Intangible Fixed Assets 620,231 633,895
Net Defined Benefit Asset 982,804 1,001,781
Deferred Tax Assets 37,960 32,909
Customers’ Liabilities for Acceptances and Guarantees 6,062,053 6,069,842
Reserves for Possible Losses on Loans (287,815 ) (283,356 )
Total Assets 200,792,226 203,757,052

- 3 -

(Millions of yen)
As of<br><br><br>March 31, 2019 As of<br><br><br>December 31, 2019
Liabilities
Deposits 124,311,025 125,241,650
Negotiable Certificates of Deposit 13,338,571 15,415,543
Call Money and Bills Sold 2,841,931 1,844,753
Payables under Repurchase Agreements 14,640,439 18,289,999
Guarantee Deposits Received under Securities Lending Transactions 1,484,584 1,396,986
Commercial Paper 941,181 877,767
Trading Liabilities 8,325,520 7,681,485
Borrowed Money 3,061,504 1,718,678
Foreign Exchange Liabilities 669,578 549,968
Short-term Bonds 355,539 358,347
Bonds and Notes 8,351,071 8,711,063
Due to Trust Accounts 1,102,073 1,094,054
Derivatives other than for Trading Liabilities 1,165,602 1,238,348
Other Liabilities 4,512,325 3,905,990
Reserve for Bonus Payments 68,117 42,129
Reserve for Variable Compensation 2,867 2,002
Net Defined Benefit Liability 60,873 60,779
Reserve for Director and Corporate Auditor Retirement Benefits 1,389 993
Reserve for Possible Losses on Sales of Loans 630 139
Reserve for Contingencies 4,910 4,456
Reserve for Reimbursement of Deposits 19,068 14,697
Reserve for Reimbursement of Debentures 25,566 19,530
Reserves under Special Laws 2,473 2,472
Deferred Tax Liabilities 185,974 187,103
Deferred Tax Liabilities for Revaluation Reserve for Land 63,315 63,290
Acceptances and Guarantees 6,062,053 6,069,842
Total Liabilities 191,598,188 194,792,075
Net Assets
Common Stock 2,256,767 2,256,767
Capital Surplus 1,138,449 1,137,503
Retained Earnings 3,915,521 4,128,524
Treasury Stock (7,703 ) (6,448 )
Total Shareholders’ Equity 7,303,034 7,516,346
Net Unrealized Gains (Losses) on Other Securities 1,186,401 1,119,907
Deferred Gains or Losses on Hedges (22,282 ) (5,078 )
Revaluation Reserve for Land 137,772 137,716
Foreign Currency Translation Adjustments (111,057 ) (146,073 )
Remeasurements of Defined Benefit Plans 254,936 222,852
Total Accumulated Other Comprehensive Income 1,445,770 1,329,325
Stock Acquisition Rights 707 213
Non-controlling Interests 444,525 119,091
Total Net Assets 9,194,038 8,964,977
Total Liabilities and Net Assets 200,792,226 203,757,052

- 4 -

(2) Quarterly Consolidated Statement of Income and

Quarterly Consolidated Statement of Comprehensive Income

Quarterly Consolidated Statement of Income
(Millions of yen)
For the nine months ended<br><br><br>December 31, 2018 For the nine months ended<br><br><br>December 31, 2019
Ordinary Income 2,858,287 2,953,825
Interest Income 1,511,057 1,566,669
Interest on Loans and Bills Discounted 919,300 964,289
Interest and Dividends on Securities 235,733 198,196
Fiduciary Income 39,404 42,244
Fee and Commission Income 546,951 563,812
Trading Income 241,644 294,447
Other Operating Income 242,400 297,243
Other Ordinary Income *1 276,829 *1 189,407
Ordinary Expenses 2,310,725 2,392,274
Interest Expenses 918,127 1,011,755
Interest on Deposits 336,981 384,950
Fee and Commission Expenses 123,750 127,851
Trading Expenses — 13,134
Other Operating Expenses 75,209 99,081
General and Administrative Expenses 1,069,806 1,023,557
Other Ordinary Expenses *2 123,831 *2 116,894
Ordinary Profits 547,561 561,550
Extraordinary Gains *3 10,269 *3 1,289
Extraordinary Losses *4 4,989 *4 9,064
Income before Income Taxes 552,842 553,775
Income Taxes:
Current 135,469 108,894
Deferred (11,358 ) 31,951
Total Income Taxes 124,110 140,845
Profit 428,731 412,930
Profit Attributable to Non-controlling Interests 18,802 8,966
Profit Attributable to Owners of Parent 409,929 403,963

- 5 -

Quarterly Consolidated Statement of Comprehensive Income
(Millions of yen)
For the nine months ended<br><br><br>December 31, 2018 For the nine months ended<br><br><br>December 31, 2019
Profit 428,731 412,930
Other Comprehensive Income (434,650 ) (115,705 )
Net Unrealized Gains (Losses) on Other Securities (395,379) (67,120 )
Deferred Gains or Losses on Hedges (147 ) 17,320
Foreign Currency Translation Adjustments (15,306 ) (32,928 )
Remeasurements of Defined Benefit Plans (20,544 ) (31,316 )
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method (3,273 ) (1,660 )
Comprehensive Income (5,918 ) 297,224
(Breakdown)
Comprehensive Income Attributable to Owners of Parent (22,021 ) 287,574
Comprehensive Income Attributable to Non-controlling<br>Interests 16,102 9,649

- 6 -

Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

(Application of “Leases” (IFRS 16 and ASU 2016-02))

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

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

The impact on the consolidated financial statements for the third quarter and the nine months ended December 31, 2019 is immaterial.

(Changes in Hedge Accounting)

Previously, deferred method or the fair-value hedge method have been applied as hedge accounting methods.

From the third quarter ended December 31, 2019, hedge accounting methods of some items are changed from fair-value method to deferred method.

Based on current market trends, MHFG reconsidered its risk management activities in order to provide more transparent disclosure in the financial statements.

The effect of this change in accounting policy on past periods is immaterial. Therefore, we do not retrospectively apply this policy change in prior periods. This change has no impact on the gains and losses.

- 7 -

Additional Information

The Board Benefit Trust (“BBT”) Program

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

(1) Outline of the Program

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

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

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

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

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

(2) MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of December 31, 2019 was ¥3,485 million for 19,636 thousand shares (the carrying amount as of March 31, 2019 was ¥3,569 million for 18,917 thousand shares).

- 8 -

Notes to Quarterly Consolidated Balance Sheet

*1. Non-Accrual, Past Due & Restructured Loans, which are included<br>in Loans and Bills Discounted, are as follows:
--- --- --- --- --- --- --- --- ---
(Millions of yen)
As of March 31, 2019 As of December 31, 2019
Loans to Bankrupt Obligors 11,393 14,949
Non-Accrual Delinquent Loans 379,225 378,392
Loans Past Due for Three Months or More 436 17,562
Restructured Loans 195,366 222,945
Total 586,422 633,850

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

*2. Amounts of liabilities for guarantees on corporate bonds included in Securities, which were issued by private<br>placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)
--- --- --- --- --- --- --- ---
(Millions of yen)
As of March 31, 2019 As of December 31, 2019
1,503,395 1,519,000

Notes to Quarterly Consolidated Statement of Income

*1. Other Ordinary Income includes the following:
**** ****
--- --- --- --- --- --- --- --- ---
(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Gains on Sales of Stocks 204,563 149,124
*2. Other Ordinary Expenses includes the following:
--- ---
--- --- --- --- --- --- --- --- ---
(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Losses on Sales of Stocks 31,801 30,010
*3. Extraordinary Gains includes the following:
--- ---
--- --- --- --- --- --- --- --- ---
(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Gains on Disposition of Fixed Assets 2,821 1,288
Gains on Cancellation of Employee 7,448 —
Retirement Benefit Trust
*4. Extraordinary Losses includes the following:
--- ---
--- --- --- --- --- --- --- --- ---
(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Losses on Impairment of Fixed Assets 2,625 5,237
Losses on Disposition of Fixed Assets 2,359 3,826

- 9 -

Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the nine months ended December 31, 2019. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the nine months ended December 31, 2018 and 2019 are as follows:
(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Depreciation 126,266 111,798
Amortization of Goodwill 3,063 3,029

Changes in Net Assets

For the nine months ended December 31, 2018

1. Cash dividends paid
Resolution Type Cash Dividends<br>(Millions of Yen) Cash Dividends<br>per Share<br>(Yen) Record Date Effective Date Resource ofDividends
--- --- --- --- --- --- --- --- ---
May 15, 2018 Common Stock 95,186 3.75 March 31, 2018 June 4, 2018 Retained<br> <br>Earnings
The Board of Directors
November 14, 2018 Common Stock 95,197 3.75 September 30, 2018 December 6, 2018 Retained<br> <br>Earnings
The Board of Directors
(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2018 include ¥49 million of cash dividends on treasury stock held by BBT trust account.
--- --- --- ---
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2018 include ¥71 million of cash dividends on treasury stock held by BBT trust account.

For the nine months ended December 31, 2019

1. Cash dividends paid
Resolution Type Cash Dividends<br>(Millions of Yen) Cash Dividends<br>per Share<br>(Yen) Record Date Effective Date Resource ofDividends
--- --- --- --- --- --- --- --- ---
May 15, 2019 Common Stock 95,197 3.75 March 31, 2019 June 4, 2019 Retained<br> <br>Earnings
The Board of Directors
November 14, 2019 Common Stock 95,208 3.75 September 30, 2019 December 6, 2019 Retained<br> <br>Earnings
The Board of Directors
(Notes) 1. Cash dividends based on the resolution of the Board of Directors held on May 15, 2019 include ¥70 million of cash dividends on treasury stock held by BBT trust account.
--- --- --- ---
2. Cash dividends based on the resolution of the Board of Directors held on November 14, 2019 include ¥73 million of cash dividends on treasury stock held by BBT trust account.

- 10 -

Business Segment Information, etc.

Business Segment Information

1. Summary of reportable segment

MHFG has introduced an in-house company system based on the group’s diverse customer segments. The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.

Specifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

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

Retail & Business Banking Company:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Corporate & Institutional Company:

Services for large corporations, financial institutions and public corporations in Japan

Global Corporate Company:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Global Markets Company:

Investment services with respect to interest rates, equities and credits, etc. and other services

Asset Management Company:

Development of products and provision of services that match the asset management needs of its wide range of customers from individuals to institutional investors

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments. Management measures the performance of each of the operating segments in accordance with internal managerial accounting rules and practices.

- 11 -

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

For the nine months ended December 31, 2018

(Millions of yen)
MHFG (Consolidated)
Retail &<br>Business<br>Banking<br>Company Corporate &<br>Institutional<br>Company Global<br>Corporate<br>Company Global<br>Markets<br>Company Asset<br>Management<br>Company Others<br>(Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses<br>related to ETFs and others 511,594 327,905 298,148 274,852 37,253 55,603 1,505,355
General and administrative expenses (excluding Non-Recurring Losses and others) 538,897 155,518 173,857 153,731 20,775 34,536 1,077,314
Equity in income from investments in affiliates 16,753 821 4,087 — 905 868 23,434
Amortization of goodwill and others 272 319 277 1,759 6,000 1,554 10,181
Others — — — — — (13,448 ) (13,448 )
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before<br>reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others (10,822 ) 172,889 128,101 119,362 11,383 6,932 427,845
(Notes) 1. “Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others” is reported instead of sales reported by general corporations. Net gains or losses related to<br>ETFs and others amounted to ¥ 40,985 million, of which ¥ 33,874 million is included in the Global Markets Company.
--- --- --- --- ---
2. “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
3. Following the change in allocation method for transactions between each segment and “Others” made in April, 2019, reclassification was made on the above table to reflect the relevant change.

- 12 -

For the nine months ended December 31, 2019

(Millions of yen)
MHFG (Consolidated)
Retail &<br>Business<br>Banking<br>Company Corporate &<br>Institutional<br>Company Global<br>Corporate<br>Company Global<br>Markets<br>Company Asset<br>Management<br>Company Others<br>(Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses<br>related to ETFs and others 482,910 327,568 315,513 325,863 35,511 30,467 1,517,832
General and administrative expenses (excluding Non-Recurring Losses and others) 497,787 159,897 182,972 157,902 21,674 30,363 1,050,595
Equity in income from investments in affiliates 8,557 1,409 8,759 — 816 4,595 24,136
Amortization of goodwill and others 272 319 277 1,759 5,830 1,455 9,912
Others — — — — — (5,942 ) (5,942 )
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before<br>reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others (6,592 ) 168,761 141,023 166,202 8,823 (2,697 ) 475,519
(Notes) 1. “Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others” is reported instead of sales reported by general corporations. Net gains or losses related to<br>ETFs and others amounted to ¥ 5,237 million, of which ¥ 1,487 million is included in the Global Markets Company.
--- --- --- --- ---
2. “Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.

- 13 -

3. The difference between the total amounts of Net business profits or losses (excluding the amounts of credit<br>costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others of reportable segments and the recorded amounts in the Quarterly Consolidated Statement of Income, and<br>the contents of the difference (Matters relating to adjustment to difference)

The above total amounts of Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others derived from internal management reporting are different from Income before income taxes recorded in the Quarterly Consolidated Statement of Income.

The contents of the difference for the nine months ended December 31, 2018 and 2019, are as follows:

(Millions of yen)
For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of<br>(provision for) general reserve for losses on loans) + Net Gains (Losses) related to ETFs and others 427,845 475,519
Credit Costs for Trust Accounts — —
General and Administrative Expenses (non-recurring<br>losses) 17,689 36,950
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for<br>losses on loans) (24,861 ) (35,077 )
Gains on Reversal of Reserves for Possible Losses on Loans, and others 30,914 10,622
Net Gains (Losses) related to Stocks—Net Gains (Losses) related to ETFs and others 122,000 92,161
Net Extraordinary Gains (Losses) 5,280 (7,774 )
Others (26,025 ) (18,626 )
Income before Income Taxes recorded in Quarterly Consolidated Statement of Income 552,842 553,775

- 14 -

Securities

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

As of March 31, 2019

**** **** ****
(Millions of yen)
Consolidated Balance Sheet<br>Amount Fair Value Difference
Japanese Government Bonds 1,119,898 1,139,806 19,907
Foreign Bonds 482,311 469,782 (12,528 )
Total 1,602,209 1,609,588 7,378

As of December 31, 2019

**** **** ****
(Millions of yen)
Quarterly Consolidated<br>Balance SheetAmount Fair Value Difference
Japanese Government Bonds 559,927 574,410 14,482
Foreign Bonds 404,182 397,302 (6,880 )
Total 964,109 971,712 7,602
(Note) The fair value is based on market prices as of December 31, 2019 (March 31, 2019) and other data.<br>
--- ---
2. Other Securities
--- ---

As of March 31, 2019

(Millions of yen)
Acquisition Cost Consolidated Balance Sheet<br>Amount Difference
Stocks 1,419,898 3,143,560 1,723,661
Bonds 14,781,679 14,786,949 5,270
Japanese Government Bonds 11,890,213 11,896,134 5,921
Japanese Local Government Bonds 208,307 209,891 1,583
Japanese Corporate Bonds 2,683,158 2,680,923 (2,234 )
Other 9,956,100 9,917,034 (39,065 )
Foreign Bonds 7,394,627 7,418,321 23,694
Other Debt Purchased 164,925 166,115 1,189
Other 2,396,547 2,332,597 (63,949 )
Total 26,157,679 27,847,545 1,689,866

- 15 -

As of December 31, 2019

(Millions of yen)
Acquisition Cost Quarterly Consolidated<br>Balance Sheet Amount Difference
Stocks 1,352,077 3,088,273 1,736,195
Bonds 13,853,168 13,805,228 (47,940 )
Japanese Government Bonds 10,839,148 10,799,764 (39,383 )
Japanese Local Government Bonds 263,501 263,933 432
Japanese Corporate Bonds 2,750,519 2,741,530 (8,988 )
Other 11,647,291 11,554,866 (92,424 )
Foreign Bonds 8,791,872 8,768,801 (23,071 )
Other Debt Purchased 146,483 147,487 1,003
Other 2,708,935 2,638,578 (70,357 )
Total 26,852,537 28,448,369 1,595,831
(Notes) 1. Unrealized Gains (Losses) include ¥38,000 million and ¥29,274 million, which were recognized in the statements of income for the year ended March 31, 2019 and the nine months ended December 31, 2019,<br>respectively, by applying the fair-value hedge method.
--- --- --- ---
2. As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value<br>during the last month of the nine months ended December 31, 2019 (last month of the fiscal year ended March 31, 2019), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other<br>reasonable value as of December 31, 2019 (March 31, 2019).
3. Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and<br>the fair value is treated as the loss for the nine months ended December 31, 2019 (the fiscal year ended March 31, 2019) (impairment (devaluation)), if the fair value (primarily the closing market price as of December 31, 2019 (March<br>31, 2019)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.
The amount of impairment (devaluation) for the fiscal year ended March 31, 2019 was ¥4,736 million.
The amount of impairment (devaluation) for the nine months ended December 31, 2019 was ¥7,680 million.
The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:
•   Securities whose fair value is 50% or less of the acquisition<br>cost
•   Securities whose fair value exceeds 50% but is 70% or less of the<br>acquisition cost and the quoted market price maintains a certain level or lower
4. Floating-rate Japanese Government Bonds
Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value on the quarterly<br>consolidated balance sheet (consolidated balance sheet).
In deriving the reasonably calculated prices, we used the Discounted Cash Flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government<br>Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

- 16 -

Money Held in Trust

1. Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

2. Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)<br>
As of March 31, 2019
--- --- --- --- --- --- --- --- --- ---
(Millions of yen)
Acquisition Cost Consolidated Balance Sheet<br>Amount Difference
Other in Money Held in Trust 4,641 4,641 —
As of December 31, 2019
(Millions of yen)
Acquisition Cost Quarterly Consolidated<br>Balance Sheet Amount Difference
Other in Money Held in Trust 6,959 6,959 —

- 17 -

Derivatives Information

(1) Interest Rate-Related Transactions

As of March 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 10,208,343 (1,049 ) (1,049 )
Options 435,480 56 (60 )
Over-the-Counter FRAs 48,732,236 (3,005 ) (3,005 )
Swaps 966,738,777 149,547 149,547
Options 13,342,004 865 865
Inter-Company or Internal Transactions Swaps 17,711,961 (6,133 ) (6,133 )
Total — 140,280 140,163
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- --- ---
2. Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report<br>No. 24, February 13, 2002) and others are excluded from the above table.

As of December 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 7,250,370 1,804 1,804
Options 515,488 (211 ) (124 )
Over-the-Counter FRAs 41,771,212 (259 ) (259 )
Swaps 942,747,346 332,859 332,859
Options 22,548,057 (6,340 ) (6,340 )
Inter-Company or Internal Transactions Swaps 19,221,303 (56,252 ) (56,252 )
Total — 271,599 271,687
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- --- ---
2. Derivative transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report<br>No. 24, February 13, 2002) and others are excluded from the above table.

- 18 -

(2) Currency-Related Transactions

As of March 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 70,451 — —
Over-the-Counter Swaps 51,184,817 169,309 87,121
Forwards 104,139,403 13,191 13,191
Options 7,453,521 5,154 998
Inter-Company or Internal Transactions Swaps 2,980,292 (132,328 ) 20,267
Forwards 10,465 84 84
Total — 55,411 121,663
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- --- --- ---
2. The following transactions are excluded from the above table:
•   Transactions qualifying for hedge accounting under “Accounting<br>and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.
•   Transactions which are specified for certain financial assets and<br>liabilities denominated in foreign currencies and reflected on the consolidated balance sheet.
•   Transactions denominated in foreign currencies which are eliminated<br>in consolidation.

As of December 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 69,574 — —
Over-the-Counter Swaps 55,408,653 76,684 44,202
Forwards 106,776,821 (35,998 ) (35,998 )
Options 6,215,449 (8,360 ) (15,733 )
Inter-Company or Internal Transactions Swaps 3,215,396 (102,954 ) 20,720
Forwards 6,647 57 57
Total — (70,571 ) 13,247
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- --- --- ---
2. The following transactions are excluded from the above table:
•   Transactions qualifying for hedge accounting under “Accounting<br>and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.
•   Transactions which are specified for certain financial assets and<br>liabilities denominated in foreign currencies and reflected on the quarterly consolidated balance sheet.
•   Transactions denominated in foreign currencies which are eliminated<br>in consolidation.

- 19 -

(3) Stock-Related Transactions

As of March 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value UnrealizedGains (Losses)
Listed Index Futures 1,024,237 (7,874 ) (7,874 )
Index Futures Options 3,085,336 (18,874 ) (10,406 )
Over-the-Counter Equity Linked Swaps 332,369 27,124 27,124
Options 695,868 16,828 16,828
Other 371,911 283 283
Total — 17,487 25,955
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- --- --- ---
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.

As of December 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value UnrealizedGains (Losses)
Listed Index Futures 744,226 (11,155 ) (11,155 )
Index Futures Options 3,737,163 (25,593 ) (3,620 )
Over-the-Counter Equity Linked Swaps 719,046 22,313 22,313
Options 705,941 13,087 13,087
Other 517,454 42,410 42,410
Total — 41,061 63,034
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- --- --- ---
2. Derivative transactions qualifying for hedge accounting are excluded from the above table.
(4) Bond-Related Transactions
--- ---

As of March 31, 2019

(Millions ofyen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 1,467,056 858 858
Futures Options 382,381 65 (64 )
Over-the-Counter Options 1,265,997 (642 ) (659 )
Other 269,146 (617 ) (617 )
Total — (336 ) (482 )
(Note) The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- ---

As of December 31, 2019

(Millions ofyen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 1,776,387 (2,531 ) (2,531 )
Futures Options 669,205 129 363
Over-the-Counter Options 952,757 499 216
Other 4,941 8 8
Total — (1,894 ) (1,943 )
(Note) The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- ---

- 20 -

(5) Commodity-Related Transactions

As of March 31, 2019

(Millions ofyen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 25,117 1,288 1,288
Futures Options 233 (11 ) 3
Over-the-Counter Options 412,211 1,326 1,326
Total — 2,603 2,618
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- --- ---
2. Commodities include oil, copper, aluminum and others.

As of December 31, 2019

(Millions ofyen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Listed Futures 10,696 329 329
Futures Options — — —
Over-the-Counter Options 258,612 1,988 1,988
Total — 2,318 2,318
(Notes) 1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- --- ---
2. Commodities include oil, copper, aluminum and others.
(6) Credit Derivative Transactions
--- ---

As of March 31, 2019

(Millions ofyen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Over-the-Counter Credit Derivatives 3,093,756 1,343 1,343
Total — 1,343 1,343
(Note) The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
--- --- ---

As of December 31, 2019

(Millions of yen)
Classification Type Contract Value Fair Value Unrealized<br>Gains (Losses)
Over-the-Counter Credit Derivatives 3,842,250 (5,539 ) (5,539 )
Total — (5,539 ) (5,539 )
(Note) The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
--- --- ---

- 21 -

Per Share Information

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

For the nine months ended<br>December 31, 2018 For the nine months ended<br>December 31, 2019
(1)   Net Income per Share of Common Stock Yen 16.16 15.92
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent Millions of yen 409,929 403,963
Amount not attributable to Common Stock Millions of yen — —
Profit Attributable to Owners of Parent related to Common Stock Millions of yen 409,929 403,963
Average Outstanding Shares of Common Stock (during the period) Thousands of shares 25,362,168 25,360,856
(2)   Diluted Net Income per Share of Common Stock Yen 16.16 15.92
(The basis used for calculating Diluted Net Income per Share of Common Stock)
Adjustment to Profit Attributable to Owners of Parent Millions of yen — —
Increased Number of Shares of Common Stock Thousands of shares 4,613 1,683
Stock Acquisition Rights Thousands of shares 4,613 1,683
Description of dilutive securities which were not included in the calculation of Diluted Net<br>Income per Share of Common Stock as they have no dilutive effects and in which significant changes occurred after the end of the previous fiscal year — —
(Note) In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are<br>included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the nine months ended December 31, 2018, was<br>16,631 thousand and the average number of such Treasury Stock shares deducted during the nine months ended December 31, 2019, was 19,129 thousand.
--- --- ---

- 22 -

II. Others

At the meeting of the Board of Directors held on November 14, 2019, the interim cash dividends for the 18th term were resolved as follows:

Total amount of interim cash dividends ¥95,208 million
Interim cash dividends per share
Common Stock ¥3.75
Effective date and starting date of dividend payments December 6, 2019

- 23 -

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →