Mizuho Financial : Material (PDF/404KB)

FY21 Q1 Financial Results

August 2021

Executive summary of financial results

(JPY B)

Net Business Profits +

Net Gains (Losses) related to ETFs and others 1

Net Business Profits

Credit-related Costs

Net Gains (Losses) related to Stocks - Net Gains (Losses) related to ETFs and others1

Impairment loss on Stocks

Net Income

Attributable to FG

CET1 Capital Ratio

excl. Net Unrealized Gains (Losses) on Other Securities

	FY21 Q1	YoY
			 Steady performance in Customer Groups was offset by decrease in
	206.8	-13.4
			Markets which had strong performance in the previous fiscal year.
	194.3	-37.3	 Expenses remained almost flat YoY due to cost control measures.
			 The previous fiscal year's forward-looking financial management and
	2.6	+41.6
	the low level of new Credit-related Costs contributed to the recording
			of Gains on Reversal of Reserves for Possible Losses on Loans.
		+13.0
	11.5	 Steadily reduced cross-shareholdings.
	-2.3	-0.7	 Improved hedging price for bear funds.
			 In addition to the above, Net Income Attributable to FG significantly
	250.5	+128.1	increased YoY due to factors such as Gains on Cancellation of
			Employee Retirement Benefit Trust, and special factors related to tax
			effect.
			 Earnings from core operations built up, while RWA remained almost flat
	11.95 %	+0.32%
	YoY. A sufficient level of capital has been continuously maintained.
	10.84 %	+0.38%	 CET1 capital ratio (Basel III finalization basis) steadily improved to
			2
			9.4%.

1. JPY 12.4B (+JPY 23.8B YoY). 2. Excluding Net Unrealized Gains (Losses) on Other Securities.

1

Financial highlights

Consolidated Net Business Profits +

Net Gains (Losses) related to ETFs and others

Group aggregate	CET1 capital ratio (Basel III finalization basis)*
Consolidated

(JPY B)
			220.2		206.8
	Markets	116.5		68.3	o/w Banking :	15.9	(-32.0)		9.4%
						Target level:
		o/w S&T	:	51.0	(-17.2)
							(Jun-21)
																lower end of the 9-10%
						RBC	:	6.7	(+19.8)						range
					128.7	CIC	:	52.2	(-8.4)
Customer Groups	103.7		GCC	:	65.2	(+10.8)		9.1%
						AMC	:	4.6	(+2.9)
							(Mar-21)
												9.0%
			FY20 Q1	FY21 Q1
										+1.2%
Reference: COVID-19 related loans									Profit accumulation/	Ensure
							8.8%	RWA control	+0.7%
								management accounting		capital buffer
(JPY T)							Cancellation of
5.2										(Mar-20)
			5.1	5.1									Employee Retirement
						4.6							Benefit Trust	+0.2%
			1.4	1.1	1.0
			0.8	3.7
						Outside			Bear fund effect	+0.3%
								0.5						Ensure stress
								Japan
1.8		3.0	2.8	2.7	2.4	1.9	CIC						resistance
1.7										In Japan
	0.8	1.1	1.3	1.3	1.3	RBC		8.2%
0.1
										(Mar-19)
	Mar-20Jun-20	Sep-20	Dec-20	Mar-21	Jun-21

* Excluding Net Unrealized Gains (Losses) on Other Securities.

2

Overview of Income Statement

(JPY B)

Consolidated Gross Profits
+ Net Gains (Losses) related to ETFs and others	*
Consolidated Gross Profits
Net Interest Income
Net Fee and Commission Income + Fiduciary Income
Net Trading Income + Net Other Operating Income
o/w Net Gains (Losses) related to Bonds
General and Administrative Expenses
Consolidated Net Business Profits

• Net Gains (Losses) related to ETFs and others* Consolidated Net Business Profits

Consolidated Net Business Profits
from core business operations (9-6)
Credit-related Costs
Net Gains (Losses) related to Stocks	*
- Net Gains (Losses) related to ETFs and others
Net Gains (Losses) related to Stocks
Equity in Income from Investments in Affiliates
Other
Ordinary Profits
Net Extraordinary Gains (Losses)
Income before Income Taxes
Income Taxes
Profit Attributable to Non-controlling Interests
Profit Attributable to Ow ners of Parent
* FY20 Q1: JPY -11.4B, FY21 Q1: JPY 12.4B.

	FY20 Q1	FY21 Q1	YoY	FY21 Plan	Progress
1	558.0	539.5	-18.5
2	569.5	527.1	-42.4
3	215.1	222.8	+7.7
4	170.1	172.4	+2.3
5	184.3	131.8	-52.4
6	40.9	6.9	-34.0
7	-340.4	-335.3	+5.1
8	220.2	206.8	-13.4
790.0	26%
9	231.7	194.3	-37.3
10	190.7	187.4	-3.2
11	-39.0	2.6	+41.6
-100.0	-3%
12	-1.5	11.5	+13.0	50.0	23%
13	-12.9	23.9	+36.9
14	5.8	12.7	+6.8
15	-7.5	-12.4	-4.8
16	175.4	218.7	+43.3
720.0	30%
17	0.6	27.4	+26.7
18	176.0	246.1	+70.0
19	-53.5	6.7	+60.2
20	-0.1	-2.3	-2.1
21	122.3	250.5	+128.1
510.0	49%

3

Financial Results by In-house Company
(JPY B)													Group aggregate
		Gross Profits 1	G&A Expenses		Net Business Profits1		Net Income 1	ROE
		(excl. Non-recurring Losses
				and others)
		FY21 Q1	YoY 2	FY21 Q1		YoY 2	FY21 Q1	YoY2	FY21 Q1	YoY 2	FY21 Q1
	Retail & Business Banking	162.6	+16.1	-161.4		-0.7	6.7	+19.8	-5.9	+15.1	-1.2%
	Corporate & Institutional	102.0	-10.6	-51.0		+2.4	52.2	-8.4	79.6	+43.9	8.7%
	Global Corporate	123.4	+8.9	-62.9		-0.0	65.2	+10.8	47.5	+18.6	8.0%
	Global Markets	122.4	-46.8	-53.9		-1.3	68.3	-48.2	46.2	-34.5	11.3%
	Asset Management	14.3	+2.8	-8.2		-0.3	4.6	+2.9	2.2	+1.4	8.2%
	FG Consolidated	539.5	-18.5	-343.3		-2.7	206.8	-13.4	250.5	+128.1	8.5%
								26%
											49%
								progress

1. Global Markets includes Net Gains (Losses) related to ETFs (2 Banks). 2. New management accounting rules were applied in FY21. Figures for FY20 were recalculated based on the new rules.

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