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 February 2021

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NO. 333-233354) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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.

 

UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2020

On February 12, 2021, we published our unaudited quarterly consolidated financial statements as of and for the nine months ended December 31, 2020 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 and Exchange Commission (“SEC”) on July 2, 2020. Also refer to Note 2 “Issued accounting pronouncements” disclosure related to ASU No.2016-13, “Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments” in our most recent Form 6-K furnished with SEC on December 28, 2020.

 

- 1 -

Financial Information

 

1.

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

The quarterly consolidated financial statements for the nine months ended December 31, 2020 are prepared in accordance with the revised “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements”, pursuant to the proviso of Article 7, Paragraph 1 of the Supplementary Provisions of the “Cabinet Office Ordinance for Partial Revision of the Ordinance on the Terminology, Forms, and Preparation Methods of the financial statements” (Cabinet Office Ordinance No. 9 of March 6, 2020).

 

2.	Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial statements of MHFG for the nine months ended December 31, 2020, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

 

- 2 -

I.	Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

 

		(Millions of yen)
		As of March 31, 2020						As of December 31, 2020
Assets
Cash and Due from Banks					41,069,745						42,999,682
Call Loans and Bills Purchased					584,686						364,630
Receivables under Resale Agreements					18,581,488						13,600,967
Guarantee Deposits Paid under Securities Borrowing Transactions					2,243,161						2,039,745
Other Debt Purchased					2,688,273						3,081,707
Trading Assets					13,248,734						12,988,630
Money Held in Trust					411,847						498,061
Securities		*2			34,907,234			*2			42,314,072
Loans and Bills Discounted		*1			83,468,185			*1			83,615,990
Foreign Exchange Assets					2,044,415						1,949,760
Derivatives other than for Trading Assets					1,944,060						1,690,112
Other Assets					5,206,121						4,452,367
Tangible Fixed Assets					1,103,622						1,110,136
Intangible Fixed Assets					636,139						616,566
Net Defined Benefit Asset					846,782						918,982
Deferred Tax Assets					32,493						25,680
Customers’ Liabilities for Acceptances and Guarantees					6,066,527						6,124,332
Reserves for Possible Losses on Loans					(424,446	)					(489,961	)
Reserve for Possible Losses on Investments					—						(0	)
Total Assets					214,659,077						217,901,468

 

- 3 -

		(Millions of yen)
		As of March 31, 2020						As of December 31, 2020
Liabilities
Deposits					131,189,673						127,656,972
Negotiable Certificates of Deposit					13,282,561						17,905,047
Call Money and Bills Sold					2,263,076						1,516,486
Payables under Repurchase Agreements					17,971,098						19,254,428
Guarantee Deposits Received under Securities Lending Transactions					1,108,255						683,205
Commercial Paper					411,089						1,495,476
Trading Liabilities					9,604,890						7,783,921
Borrowed Money					5,209,947						7,346,357
Foreign Exchange Liabilities					509,405						514,302
Short-term Bonds					373,658						391,296
Bonds and Notes					8,906,432						9,644,764
Due to Trust Accounts					1,055,510						1,281,597
Derivatives other than for Trading Liabilities					1,619,151						1,609,917
Other Liabilities					6,111,195						5,283,698
Reserve for Bonus Payments					75,175						53,154
Reserve for Variable Compensation					2,559						2,201
Net Defined Benefit Liability					62,113						71,884
Reserve for Director and Corporate Auditor Retirement Benefits					944						671
Reserve for Possible Losses on Sales of Loans					637						3,931
Reserve for Contingencies					6,443						3,516
Reserve for Reimbursement of Deposits					27,851						23,541
Reserve for Reimbursement of Debentures					18,672						16,918
Reserves under Special Laws					2,509						2,506
Deferred Tax Liabilities					53,150						159,359
Deferred Tax Liabilities for Revaluation Reserve for Land					62,695						62,531
Acceptances and Guarantees					6,066,527						6,124,332
Total Liabilities					205,995,229						208,892,022
Net Assets
Common Stock					2,256,767						2,256,767
Capital Surplus					1,136,467						1,135,948
Retained Earnings					4,174,190						4,304,317
Treasury Stock					(6,414	)					(7,203	)
Total Shareholders’ Equity					7,561,010						7,689,829
Net Unrealized Gains (Losses) on Other Securities					823,085						1,131,436
Deferred Gains or Losses on Hedges					72,081						52,955
Revaluation Reserve for Land					136,655						137,779
Foreign Currency Translation Adjustments					(133,178	)					(183,629	)
Remeasurements of Defined Benefit Plans					94,317						77,593
Total Accumulated Other Comprehensive Income					992,960						1,216,134
Stock Acquisition Rights					213						134
Non-controlling Interests					109,662						103,346
Total Net Assets					8,663,847						9,009,445
Total Liabilities and Net Assets					214,659,077						217,901,468

 

- 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 December 31, 2019						For the nine months ended December 31, 2020
Ordinary Income					2,953,825						2,313,082
Interest Income					1,566,669						990,731
Interest on Loans and Bills Discounted					964,289						707,462
Interest and Dividends on Securities					198,196						171,768
Fiduciary Income					42,244						40,582
Fee and Commission Income					563,812						590,013
Trading Income					294,447						340,662
Other Operating Income					297,243						237,125
Other Ordinary Income		*1			189,407			*1			113,966
Ordinary Expenses					2,392,274						1,864,213
Interest Expenses					1,011,755						341,112
Interest on Deposits					384,950						114,571
Fee and Commission Expenses					127,851						118,590
Trading Expenses					13,134						9,278
Other Operating Expenses					99,081						110,581
General and Administrative Expenses					1,023,557						1,022,627
Other Ordinary Expenses		*2			116,894			*2			262,022
Ordinary Profits					561,550						448,868
Extraordinary Gains		*3			1,289			*3			79,434
Extraordinary Losses		*4			9,064			*4			9,876
Income before Income Taxes					553,775						518,426
Income Taxes:
Current					108,894						120,499
Deferred					31,951						39,049
Total Income Taxes					140,845						159,549
Profit					412,930						358,876
Profit Attributable to Non-controlling Interests					8,966						4,471
Profit Attributable to Owners of Parent					403,963						354,404

 

- 5 -

Quarterly Consolidated Statement of Comprehensive Income

 

		(Millions of yen)
		For the nine months ended December 31, 2019						For the nine months ended December 31, 2020
Profit					412,930						358,876
Other Comprehensive Income					(115,705	)					217,974
Net Unrealized Gains (Losses) on Other Securities					(67,120	)					304,311
Deferred Gains or Losses on Hedges					17,320						(19,166	)
Foreign Currency Translation Adjustments					(32,928	)					(48,477	)
Remeasurements of Defined Benefit Plans					(31,316	)					(16,271	)
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method					(1,660	)					(2,421	)
Comprehensive Income					297,224						576,850
(Breakdown)
Comprehensive Income Attributable to Owners of Parent					287,574						576,454
Comprehensive Income Attributable to Non-controlling Interests					9,649						396

 

- 6 -

Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

(Accounting Standard for Fair Value Measurement and Others)

MHFG has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30 July 4, 2019) and others from the beginning of the first quarter ended June 30, 2020.

In accordance with Article 8 of “Accounting Standard for Fair Value Measurement”, the fair value adjustment method used to determine the fair value of derivatives is revised to maximize the use of relevant observable inputs estimated from derivatives and others traded in the market.

In accordance with Article 20 of “Accounting Standard for Fair Value Measurement”, the cumulative effects arising from the retroactive application of these new accounting policies to all the previous fiscal years were reflected in Retained Earnings as of April 1, 2020.

As a result, Retained Earnings decreased by ¥32,639 million, Trading Assets decreased by ¥50,380 million, Derivatives other than for Trading Assets decreased by ¥6,379 million, Trading Liabilities decreased by ¥6,529 million, Derivatives other than for Trading Liabilities decreased by ¥3,184 million, Deferred Tax Assets increased by ¥14,405 million, and Net Assets per Share decreased by ¥12.87 as of April 1, 2020. The share consolidation was taken place at a ratio of ten pre-consolidation shares to one post-consolidation share on October 1, 2020. Net Asset per share is calculated under the assumption that the share consolidation had been taken place at the beginning of fiscal 2019.

And in accordance with the transitional treatment set forth in Article 19 of “Accounting Standard for Fair Value Measurement” and Article 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), MHFG has applied a new accounting policy prescribed by “Accounting Standard for Fair Value Measurement” and others from the first quarter ended June 30, 2020.

As a result, in principle, while fair value of Japanese stocks was previously determined based on the average quoted market price over the month preceding the quarterly consolidated balance sheet date, from the first quarter ended June 30, 2020, fair value of Japanese stocks is determined based on the quoted market price as of the quarterly consolidated balance sheet date.

 

- 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 the 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 status of achieving our Five-Year Business Plan. 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, 2020 was ¥4,148 million for 2,556 thousand shares (the carrying amount as of March 31, 2019 was ¥3,485 million for 19,636 thousand shares). MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. The number of Treasury Stock as of December 31, 2020 is recorded at the amount after the share consolidation. The number of Treasury Stock as of March 31, 2020 is recorded at the amount before the share consolidation.

 

- 8 -

Reserves for Possible Losses on Loans

In light of the principles set forth in the report entitled “Japanese Financial Services Agency (“JFSA”)’s supervisory approaches to lending business and loan loss provisioning” published by JFSA in December 18, 2019, we have reflected the potential impact of the spread of COVID-19 and its prolongation on Reserves for Possible Losses on Loans for some credit. More specifically, we have identified certain industries and certain obligors that are expected to be significantly impacted by COVID-19. For these identified industries and obligors, we have updated the estimated expected loss amount by incorporating certain assumptions such as the future recovery periods and the forecasted GDP growth rate in Japan. Among the major assumptions applied to the relevant estimates, we have adopted the prospect that the period for the settling down of COVID-19 would be longer than we had expected at the end of the previous fiscal year.

Application of tax-effect accounting to the Transition from the Consolidated Taxation System to the Group Aggregation System

Some domestic consolidated subsidiaries of the Group record amounts of deferred tax assets and deferred tax liabilities based on the provisions of tax laws prior to amendment under the treatment in Paragraph 3 of “Treatment of the application of the tax-effect accounting in relation to the transition from the consolidated tax system to the aggregate group system” (Practical Solutions No.39 March 31, 2020), without applying the provisions of Paragraph 44 of “Guidance on Accounting Standard for tax-effect accounting” (Implementation Guidance No.28 February 16, 2018), regarding the tax items for which review of the non-consolidated Tax Payment System was implemented in accordance with the transition to the aggregated group system established under the “Act for Partial Revision of the Income Tax Act, etc.” (Act No. 8 of 2020) and the transition to the aggregated group system.

 

- 9 -

Notes to Quarterly Consolidated Balance Sheet

 

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

 

		(Millions of yen)
		As of March 31, 2020				As of December 31, 2020
Loans to Bankrupt Obligors			15,938				31,334
Non-Accrual Delinquent Loans			401,016				413,981
Loans Past Due for Three Months or More			1,468				647
Restructured Loans			256,429				331,403
Total			674,853				777,368

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

 

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

 

		(Millions of yen)
		As of March 31, 2020				As of December 31, 2020
			1,548,136				1,446,360

Notes to Quarterly Consolidated Statement of Income

 

*1.	Other Ordinary Income includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2019				For the nine months  ended December 31, 2020
Gains on Sales of Stocks			149,124				84,536

 

*2.	Other Ordinary Expenses includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2019				For the nine months  ended December 31, 2020
Provision for Reserves for Possible Losses on Loans			15,608				91,254
Impairment Losses of Stocks			7,417				60,855

 

*3.	Extraordinary Gains includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2019				For the nine months  ended December 31, 2020
Accumulation (Amortization) of Unrecognized Prior Service Cost			—				62,004

“Accumulation (Amortization) of Unrecognized Prior Service Cost” resulted from prior service cost incurred in connection with the revision of the retirement benefit plan.

 

*4.	Extraordinary Losses includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2019				For the nine months  ended December 31, 2020
Losses on Disposition of Fixed Assets			3,826				3,973
Losses on Transfer to Defined Contribution Pension Plan			—				3,320
Losses on Impairment of Fixed Assets			5,237				2,583

“Losses on Transfer to Defined Contribution Pension Plan” resulted from the transfer of part of the defined benefit pension plan to the defined contribution pension plan.

 

- 10 -

Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the nine months ended December 31, 2020. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the nine months ended December 31, 2019 and 2020 are as follows:

 

		(Millions of yen)
		For the nine months  ended December 31, 2019				For the nine months  ended December 31, 2020
Depreciation			111,798				121,011
Amortization of Goodwill			3,029				2,795

Changes in Net Assets

For the nine months ended December 31, 2019

 

1.	Cash dividends paid

 

Resolution

Type

Cash Dividends (Millions of Yen)

Cash Dividends per Share (Yen)

Record Date

Effective Date

Resource of Dividends

May 15, 2019

Common Stock

95,197

3.75

March 31, 2019

June 4, 2019

Retained Earnings

The Board of Directors

November 14, 2019

Common Stock

95,208

3.75

September 30, 2019

December 6, 2019

Retained 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.
		3.		MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Cash Dividends per Share is recorded at the amount before the share consolidation.

For the nine months ended December 31, 2020

 

1.	Cash dividends paid

 

Resolution

Type

Cash Dividends (Millions of Yen)

Cash Dividends per Share (Yen)

Record Date

Effective Date

Resource of Dividends

May 15, 2020

Common Stock

95,208

3.75

March 31, 2020

June 8, 2020

Retained Earnings

The Board of Directors

November 12, 2020

Common Stock

95,209

3.75

September 30, 2020

December 7, 2020

Retained Earnings

The Board of Directors

 

(Notes)		1.		Cash dividends based on the resolution of the Board of Directors held on May 15, 2020 include ¥73 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 12, 2020 include ¥95 million of cash dividends on treasury stock held by BBT trust account.
		3.		MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Cash Dividends per Share is recorded at the amount before the share consolidation.

 

- 11 -

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.

 

- 12 -

2.

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

For the nine months ended December 31, 2019

 

		(Millions of yen)
		MHFG (Consolidated)
		Retail & Business Banking Company				Corporate & Institutional Company				Global Corporate Company				Global Markets Company				Asset Management Company				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others			483,439				324,242				309,730				327,036				38,833				34,552				1,517,832
General and administrative expenses (excluding Non-Recurring Losses and others)			501,360				159,936				179,893				154,012				24,703				30,691				1,050,595
Equity in income from investments in affiliates			8,048				1,409				8,759				—				815				5,105				24,136
Amortization of goodwill and others			2,119				93				270				788				5,830				812				9,912
Others			—				—				—				—				—				(5,942	)			(5,942	)
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			(11,992	)			165,622				138,326				172,236				9,115				2,212				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 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.
		3.		Following the change in allocation method for transactions between each segment and “Others” made in April, 2020, reclassification was made on the above table to reflect the relevant change.

 

- 13 -

For the nine months ended December 31, 2020

 

		(Millions of yen)
		MHFG (Consolidated)
		Retail & Business Banking Company				Corporate & Institutional Company				Global Corporate Company				Global Markets Company				Asset Management Company				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others			473,774				342,058				332,365				422,462				36,162				14,985				1,621,806
General and administrative expenses (excluding Non-Recurring Losses and others)			474,012				155,374				181,967				157,494				23,773				26,459				1,019,079
Equity in income from investments in affiliates			5,292				3,413				8,575				—				645				(789	)			17,135
Amortization of goodwill and others			1,692				74				270				629				5,732				741				9,138
Others			—				—				—				—				—				—				—
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			3,362				190,023				158,703				264,339				7,302				(13,004	)			610,724

 

(Notes)			1.			“Gross profits (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others” is reported instead of sales reported by general corporations. Net gains or losses related to ETFs and others amounted to ¥ 2,254 million, of which ¥ (765) 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.

 

- 14 -

3.

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

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

The contents of the difference for the nine months ended December 31, 2019 and 2020, are as follows:

 

		(Millions of yen)
		For the nine months ended December 31, 2019				For the nine months ended December 31, 2020
Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net Gains (Losses) related to ETFs and others			475,519				610,724
Credit Costs for Trust Accounts			—				—
General and Administrative Expenses (non-recurring losses)			36,950				5,589
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)			(35,077	)			(103,907	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			10,622				5,753
Net Gains (Losses) related to Stocks—Net Gains (Losses) related to ETFs and others			92,161				(33,075	)
Net Extraordinary Gains (Losses)			(7,774	)			69,558
Others			(18,626	)			(36,216	)
Income before Income Taxes recorded in Quarterly Consolidated Statement of Income			553,775				518,426

 

- 15 -

Financial Instruments

Matters relating to fair value of financial instruments and others

Quarterly Consolidated Balance Sheet Amount, Fair Value and Difference between Quarterly Consolidated Balance Sheet Amount and Fair value of financial instruments which are material for the operation of corporate group and have changed significantly in comparison to the end of fiscal year ended March 31, 2020 are as follows;

As of March 31, 2020

 

(Millions of yen)

Consolidated Balance  Sheet Amount

Fair Value

Difference

Bonds and Notes

8,906,432

8,847,784

(58,647

)

As of December 31, 2020

(Millions of yen)

Quarterly Consolidated Balance Sheet Amount

Fair Value

Difference

Bonds and Notes

9,644,764

9,926,455

281,690

 

- 16 -

Securities

 

*

In addition to “Securities” on the quarterly consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. Stocks and other securities without a market price and Investments in Partnerships are excluded.

 

1.	Bonds Held to Maturity

As of March 31, 2020

 

		(Millions of yen)
		Consolidated Balance  Sheet Amount				Fair Value				Difference
Japanese Government Bonds			479,936				493,293				13,356
Foreign Bonds			380,297				382,036				1,739
Total			860,233				875,329				15,096
As of December 31, 2020
		(Millions of yen)
		Quarterly Consolidated Balance Sheet Amount				Fair Value				Difference
Japanese Government Bonds			479,952				490,377				10,424
Foreign Bonds			273,476				285,971				12,494
Total			753,429				776,348				22,918

 

(Note)

The fair value is based on market prices as of December 31, 2020 (March 31, 2020) and other data.

 

2.	Other Securities

As of March 31, 2020

 

		(Millions of yen)
		Acquisition Cost				Consolidated Balance Sheet Amount				Difference
Stocks			1,272,069				2,338,429				1,066,360
Bonds			15,756,613				15,702,512				(54,100	)
Japanese Government Bonds			12,645,956				12,601,934				(44,021	)
Japanese Local Government Bonds			272,412				272,567				155
Japanese Corporate Bonds			2,838,244				2,828,010				(10,233	)
Other			15,137,799				15,296,686				158,886
Foreign Bonds			12,501,259				12,702,213				200,954
Other Debt Purchased			199,850				201,089				1,239
Other			2,436,690				2,393,383				(43,307	)
Total			32,166,482				33,337,628				1,171,146

 

- 17 -

As of December 31, 2020

 

		(Millions of yen)
		Acquisition Cost				Quarterly Consolidated    Balance Sheet Amount				Difference
Stocks			1,201,052				2,760,625				1,559,572
Bonds			23,224,373				23,171,664				(52,709	)
Japanese Government Bonds			19,991,582				19,946,905				(44,677	)
Japanese Local Government Bonds			447,141				447,500				358
Japanese Corporate Bonds			2,785,649				2,777,258				(8,390	)
Other			14,860,296				14,956,068				95,772
Foreign Bonds			11,860,129				11,996,716				136,586
Other Debt Purchased			239,272				240,570				1,298
Other			2,760,894				2,718,781				(42,112	)
Total			39,285,722				40,888,357				1,602,635

 

(Notes)		1.		Unrealized Gains (Losses) include ¥(5,191) million and ¥16,187 million, which were recognized in the statements of income for the year ended March 31, 2020 and the nine months ended December 31, 2020, respectively, by applying the fair-value hedge method.
		2.		As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), in principle fair value of Japanese stocks with a quoted market price is determined based on the quoted market price as of December 31, 2020 (fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value during the last month of the fiscal year ended March 31, 2020), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value as of December 31, 2020 (March 31, 2020).
		3.		Certain Securities other than Trading Securities (excluding Stocks and other securities without a market price and Investments in Partnerships) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the nine months ended December 31, 2020 (the fiscal year ended March 31, 2020) (impairment (devaluation)), if the fair value (primarily the closing market price as of December 31, 2020 (March 31, 2020)) 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, 2020 was ¥41,655 million.
				The amount of impairment (devaluation) for the nine months ended December 31, 2020 was ¥61,953 million.
				The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:
				•   Securities whose fair value is 50% or less of the acquisition cost
				•   Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower
		4.		In accordance with Article 27 of “ Implementation Guidance on Accounting Standard for Fair Value Measurement “ (ASBJ Guidance No. 31 July 4, 2019), Investments in Partnerships are not included in market value disclosure. Quarterly Consolidated Balance Sheet Amount (consolidated balance sheet amount) of Investments in Partnerships was ¥236,974 million and ¥270,760 million, which were recognized for the year ended March 31, 2020 and the nine months ended December 31, 2020, respectively.

 

- 18 -

Money Held in Trust

 

1.	Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

 

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

 

As of March 31, 2020

(Millions of yen)

Acquisition Cost

Consolidated Balance Sheet Amount

Difference

Other in Money Held in Trust

7,125

7,125

—

As of December 31, 2020

(Millions of yen)

Acquisition Cost

Quarterly Consolidated Balance Sheet Amount

Difference

Other in Money Held in Trust

8,877

8,877

—

 

- 19 -

Derivatives Information

 

(1)	Interest Rate and Bond-Related Transactions

As of March 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Interest Rate Futures			11,416,943				4,201				4,201
		Interest Rate Options			1,176,981				1,060				585
		Bond Futures			1,249,813				(4,671	)			(4,671	)
		Bond Futures Options			—				—				—
Over-the-Counter		FRAs			82,572,716				2,560				2,560
		Interest Rate Swaps			997,220,626				550,524				550,524
		Interest Rate Options			25,212,409				(62,776	)			(62,776	)
		Bond Options			1,156,604				2,400				2,245
		Bond Other			15,585				422				422
Inter-Company or Internal Transactions		Interest Rate Swaps			18,132,262				(141,481	)			(141,481	)
Total					—				352,242				351,611

 

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

As of December 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Interest Rate Futures			11,070,723				3,332				3,332
		Interest Rate Options			972,818				(78	)			(166	)
		Bond Futures			796,632				(143	)			(143	)
		Bond Futures Options			66,236				53				18
Over-the-Counter		FRAs			65,978,757				(744	)			(744	)
		Interest Rate Swaps			951,100,305				392,616				392,616
		Interest Rate Options			26,723,297				(21,019	)			(21,019	)
		Bond Options			956,976				236				(26	)
		Bond Other			2,171				10				10
Inter-Company or Internal Transactions		Interest Rate Swaps			19,886,599				(148,301	)			(148,301	)
Total					—				225,961				225,576

 

(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 Committee Practical Guideline No. 24, October 8, 2020) and others are excluded from the above table.

(Changes in Presentation)

With the enactment of “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) and other standards, interest rate-related transactions and bond-related transactions are presented as Interest Rate and Bond-Related Transactions from the interim period ended September 30, 2020.

 

- 20 -

(2)	Currency-Related Transactions

As of March 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			61,986				—				—
Over-the-Counter		Swaps			57,638,817				1,219				(68,637	)
		Forwards			113,118,971				43,511				43,511
		Options			9,950,388				(15,886	)			(23,562	)
Inter-Company or Internal Transactions		Swaps			2,858,190				(151,891	)			8,698
		Forwards			7,127				19				19
Total					—				(123,027	)			(39,970	)

 

(Notes)		1.		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
		2.		The following transactions are excluded from the above table:
				•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002) and others.
				•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the consolidated balance sheet.
				•   Transactions denominated in foreign currencies which are eliminated in consolidation.

As of December 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			88,122				—				—
Over-the-Counter		Swaps			64,372,498				57,169				(24,681	)
		Forwards			108,140,095				(19,189	)			(19,189	)
		Options			7,100,064				1,657				(9,727	)
Inter-Company or Internal Transactions		Swaps			2,353,986				(98,174	)			16,439
		Forwards			1,004				9				9
Total					—				(58,526	)			(37,148	)

 

(Notes)		1.		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.
		2.		The following transactions are excluded from the above table:
				•   Transactions qualifying for hedge accounting under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Committee Practical Guideline No. 25, October 8, 2020) and others.
				•   Transactions which are specified for certain financial assets and liabilities denominated in foreign currencies and reflected on the quarterly consolidated balance sheet.
				•   Transactions denominated in foreign currencies which are eliminated in consolidation.

 

- 21 -

(3)	Stock-Related Transactions

As of March 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Index Futures			676,867				7,602				7,602
		Index Futures Options			4,077,182				(8,285	)			(8,989	)
Over-the-Counter		Equity Linked Swaps			471,137				91,888				91,888
		Options			701,160				6,585				6,585
		Other			443,060				28,676				28,676
Total					—				126,467				125,764

 

(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, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Index Futures			768,637				(28,969	)			(28,969	)
		Index Futures Options			3,012,166				(4,411	)			1,950
Over-the-Counter		Equity Linked Swaps			861,936				28,449				28,449
		Options			517,006				27,848				27,848
		Other			1,163,030				223,185				223,185
Total					—				246,103				252,464

 

(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.

 

- 22 -

(4)	Commodity-Related Transactions

As of March 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			37,643				(2,696	)			(2,696	)
Over-the-Counter		Options			334,342				5,320				5,320
Total					—				2,623				2,623

 

(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, 2020

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			66,081				346				346
Over-the-Counter		Options			280,927				2,933				2,933
Total					—				3,280				3,280

 

(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.

 

(5)	Credit Derivative Transactions

As of March 31, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Credit Derivatives			4,838,216				9,096				9,096
Total					—				9,096				9,096

 

(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, 2020

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Credit Derivatives			8,944,081				(28,878	)			(28,878	)
Total					—				(28,878	)			(28,878	)

 

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

 

- 23 -

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 December 31, 2019				For the nine months ended December 31, 2020
(1)   Net Income per Share of Common Stock		Yen			159.28				139.76
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent		Millions of yen			403,963				354,404
Amount not attributable to Common Stock		Millions of yen			—				—
Profit Attributable to Owners of Parent related to Common Stock		Millions of yen			403,963				354,404
Average Outstanding Shares of Common Stock (during the period)		Thousands of shares			2,536,085				2,535,680
(2)   Diluted Net Income per Share of Common Stock		Yen			159.27				139.76
(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			168				90
Stock Acquisition Rights		Thousands of shares			168				90
Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects and in which significant changes occurred after the end of the previous fiscal year					—				—

 

(Notes)			1.			MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are calculated under the assumption that the share consolidation had been adopted at the beginning of fiscal 2019.
			2.			In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the nine months ended December 31, 2019, was 1,912 thousand and the average number of such Treasury Stock shares deducted during the nine months ended December 31, 2020, was 2,283 thousand.

 

- 24 -

II.

Others

At the meeting of the Board of Directors held on November 12, 2020, the interim cash dividends for the 19th term were resolved as follows:

 

Total amount of interim cash dividends			¥95,209 million
Interim cash dividends per share
Common Stock			¥3.75
Effective date and starting date of dividend payments			December 7, 2020

 

- 25 -