6-K 1 d159787d6k.htm FORM 6-K FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

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NO. 333-233354) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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

 

Date:   August 13, 2021
Mizuho Financial Group, Inc.
By:  

/s/ Makoto Umemiya

Name:   Makoto Umemiya
Title:   Senior Executive Officer / Group CFO


UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2021

On August 13, 2021, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2021 prepared in accordance with Japanese GAAP as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects—Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.

 

- 1 -


Financial Information

 

1.

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

 

2.

Ernst & Young ShinNihon LLC conducted a quarterly review on the quarterly consolidated financial statements of MHFG for the three months ended June 30, 2021, 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, 2021

   

As of
June 30, 2021

 

Assets

          

Cash and Due from Banks

        47,981,981          42,323,448  

Call Loans and Bills Purchased

        589,776          385,421  

Receivables under Resale Agreements

        11,623,654          17,887,877  

Guarantee Deposits Paid under Securities Borrowing Transactions

        2,707,711          1,941,493  

Other Debt Purchased

        3,208,004          3,486,436  

Trading Assets

        12,589,294          13,910,770  

Money Held in Trust

        582,368          558,924  

Securities

   *2      43,697,262     *2      47,167,479  

Loans and Bills Discounted

   *1      83,704,675     *1      82,631,430  

Foreign Exchange Assets

        2,084,756          2,042,770  

Derivatives other than for Trading Assets

        1,719,349          1,335,646  

Other Assets

        6,174,020          4,105,801  

Tangible Fixed Assets

        1,135,449          1,127,636  

Intangible Fixed Assets

        620,224          609,925  

Net Defined Benefit Asset

        1,109,107          1,022,476  

Deferred Tax Assets

        31,402          27,243  

Customers’ Liabilities for Acceptances and Guarantees

        6,602,744          6,867,903  

Reserves for Possible Losses on Loans

        (575,572        (543,592

Reserve for Possible Losses on Investments

        (0        (0
  

 

   

 

 

Total Assets

        225,586,211          226,889,093  
  

 

   

 

 

 

- 3 -


    

(Millions of yen)

 
    

As of

March 31, 2021

   

As of

June 30, 2021

 

Liabilities

          

Deposits

             133,312,406               129,957,640  

Negotiable Certificates of Deposit

        17,192,572          19,681,826  

Call Money and Bills Sold

        1,312,790          1,219,870  

Payables under Repurchase Agreements

        18,607,255          22,193,696  

Guarantee Deposits Received under Securities Lending Transactions

        958,148          842,186  

Commercial Paper

        2,105,067          1,924,183  

Trading Liabilities

        8,115,377          7,576,190  

Borrowed Money

        7,441,822          7,394,138  

Foreign Exchange Liabilities

        532,042          505,906  

Short-term Bonds

        456,045          488,507  

Bonds and Notes

        10,321,672          10,364,435  

Due to Trust Accounts

        1,160,608          1,155,350  

Derivatives other than for Trading Liabilities

        1,739,671          1,330,630  

Other Liabilities

        5,862,013          5,581,521  

Reserve for Bonus Payments

        104,131          23,211  

Reserve for Variable Compensation

        2,935          3,560  

Net Defined Benefit Liability

        71,049          71,270  

Reserve for Director and Corporate Auditor Retirement Benefits

        683          495  

Reserve for Possible Losses on Sales of Loans

        1,074          911  

Reserve for Contingencies

        6,762          7,815  

Reserve for Reimbursement of Deposits

        22,099          20,887  

Reserve for Reimbursement of Debentures

        14,419          13,550  

Reserves under Special Laws

        3,135          3,127  

Deferred Tax Liabilities

        215,557          134,619  

Deferred Tax Liabilities for Revaluation Reserve for Land

        61,915          61,445  

Acceptances and Guarantees

        6,602,744          6,867,903  
  

 

   

 

 

Total Liabilities

        216,224,003          217,424,884  
  

 

   

 

 

Net Assets

          

Common Stock and Preferred Stock

        2,256,767          2,256,767  

Capital Surplus

        1,135,940          1,125,324  

Retained Earnings

        4,421,655          4,577,306  

Treasury Stock

        (7,124        (7,154
  

 

   

 

 

Total Shareholders’ Equity

        7,807,239          7,952,243  
  

 

   

 

 

Net Unrealized Gains (Losses) on Other Securities

        1,132,460          1,076,695  

Deferred Gains or Losses on Hedges

        31,618          22,890  

Revaluation Reserve for Land

        136,384          135,318  

Foreign Currency Translation Adjustments

        (139,514        (92,486

Remeasurements of Defined Benefit Plans

        288,088          255,570  
  

 

   

 

 

Total Accumulated Other Comprehensive Income

        1,449,035          1,397,988  
  

 

   

 

 

Stock Acquisition Rights

        134          114  

Non-controlling Interests

        105,797          113,861  
  

 

   

 

 

Total Net Assets

        9,362,207          9,464,209  
  

 

   

 

 

Total Liabilities and Net Assets

        225,586,211          226,889,093  
  

 

   

 

 

 

- 4 -


(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income

      Quarterly Consolidated Statement of Income

 

    

(Millions of yen)

 
    

For the three months ended

June 30, 2020

   

For the three months ended

June 30, 2021

 

Ordinary Income

       835,835         737,009  

Interest Income

       366,276         293,342  

Interest on Loans and Bills Discounted

       262,715         210,675  

Interest and Dividends on Securities

       59,632         46,524  

Fiduciary Income

       13,333         14,997  

Fee and Commission Income

       196,531         196,859  

Trading Income

       139,198          103,004  

Other Operating Income

       87,768         55,348  

Other Ordinary Income

   *1     32,726     *1     73,458  

Ordinary Expenses

       660,414           518,251  

Interest Expenses

       151,175         70,470  

Interest on Deposits

       55,515         14,464  

Fee and Commission Expenses

       39,728         39,405  

Trading Expenses

       1,390         128  

Other Operating Expenses

       41,257         26,394  

General and Administrative Expenses

       340,468         335,331  

Other Ordinary Expenses

                    *2     86,394                      *2     46,521  
  

 

   

 

 

Ordinary Profits

       175,421         218,757  
  

 

   

 

 

Extraordinary Gains

   *3     2,834     *3     28,954  

Extraordinary Losses

   *4     2,164     *4     1,530  
  

 

   

 

 

Income before Income Taxes

                        176,092                          246,181  
  

 

   

 

 

Income Taxes:

        

Current

       48,588         32,687  

Deferred

       4,955         (39,393
  

 

   

 

 

Total Income Taxes

       53,544         (6,705
  

 

   

 

 

Profit

       122,547         252,887  
  

 

   

 

 

Profit Attributable to Non-controlling Interests

       172         2,345  
  

 

   

 

 

Profit Attributable to Owners of Parent

       122,375         250,541  
  

 

   

 

 

 

- 5 -


      Quarterly Consolidated Statement of Comprehensive Income

 

   
    

(Millions of yen)

 
    

For the three months ended

June 30, 2020

   

For the three months ended

June 30, 2021

 

Profit

       122,547           252,887    

Other Comprehensive Income

       70,078         (48,156

Net Unrealized Gains (Losses) on Other Securities

       131,007         (53,348

Deferred Gains or Losses on Hedges

                             (9,414                             (8,635

Foreign Currency Translation Adjustments

       (45,327       38,509  

Remeasurements of Defined Benefit Plans

       (4,376       (32,036

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

       (1,811       7,353  
  

 

   

 

 

Comprehensive Income

       192,626         204,730  
  

 

   

 

 

(Breakdown)

        

Comprehensive Income Attributable to Owners of Parent

                        195,229                          200,559  

Comprehensive Income Attributable to Non-controlling Interests

       (2,602       4,170  

 

- 6 -


Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

(Accounting Standard for Revenue Recognition and Others)

MHFG has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020) and others from the beginning of the first quarter ended June 30, 2021.

In accordance with “Accounting Standard for Revenue Recognition”, MHFG recognizes revenue at the time of the transfer of promised goods or services to the customer in an amount that reflects the consideration to which MHFG expects to be entitled in exchange for those goods or services.

In accordance with transitional treatment set out in the proviso of Article 84 of “Accounting Standard for Revenue Recognition”, 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, 2021, and the new accounting policies are applied from the beginning of the fiscal year.

As a result, Retained Earnings decreased by ¥724 million as of April 1, 2021. The impact on the quarterly consolidated statement of income for the fiscal quarter ended June 30, 2021 is immaterial.

In accordance with transitional treatment set out in the Article 28-15 of “Accounting Standard for Quarterly Financial Reporting and its Implementation Guidance” (ASBJ Statement No.12, March 31, 2020), the breakdown of revenue from contracts with customers in the previous first quarter consolidated cumulative period is not presented.

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 and Executive 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 and Executive 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.

 

- 7 -


(2)

MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of June 30, 2021 was ¥3,929 million for 2,421 thousand shares (the carrying amount as of March 31, 2021 was ¥4,144 million for 2,554 thousand shares).

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 estimated the expected loss amount that reflects the impact of the prolongation of COVID-19. The estimate includes the future prospect of business environment of each industry and the forecasted GDP growth rate as major assumptions. There are no material changes in the methods of the above accounting estimates and the major assumptions used in the quarterly consolidated financial statements from those of the previous fiscal year.

Adoption of the Consolidated Taxation System

MHFG and some domestic consolidated subsidiaries of the Group apply the Consolidated Taxation System from the first quarter ended June 30, 2021.

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

MHFG and 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.

 

- 8 -


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, 2021      As of June 30, 2021  

Loans to Bankrupt Obligors

     19,554        17,842  

Non-Accrual Delinquent Loans

        415,318           351,614  

Loans Past Due for Three Months or More

     534        1,110  

Restructured Loans

     377,049        412,976  

Total

     812,457        783,544  

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, 2021      As of June 30, 2021  
     1,407,731        1,373,837  

Notes to Quarterly Consolidated Statement of Income

 

*1.

Other Ordinary Income includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2020
     For the three months  ended
June 30, 2021
 

Gains on Sales of Stocks

          22,219             49,408  

 

*2.

Other Ordinary Expenses includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2020
     For the three months  ended
June 30, 2021
 

Losses on Sales of Stocks

          16,017             15,358  

Provision for Reserves for Possible Losses on Loans

     34,178        —    

 

*3.

Extraordinary Gains includes the following:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2020
     For the three months  ended
June 30, 2021
 

Gains on Cancellation of Employee Retirement Benefit Trust

               —               28,656  

 

*4.

Extraordinary Losses is as follows:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2020
     For the three months  ended
June 30, 2021
 

Losses on Disposition of Fixed Assets

     993               1,104  

Losses on Impairment of Fixed Assets

            1,170        425  

 

- 9 -


Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2021. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2020 and 2021 are as follows:

 

                                                                                                         
     (Millions of yen)  
     For the three months  ended
June 30, 2020
     For the three months  ended
June 30, 2021
 

Depreciation

          40,245             41,760  

Amortization of Goodwill

     937        932  

Changes in Net Assets

For the three months ended June 30, 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

The Board of Directors

  Common Stock     95,208       3.75       March 31, 2020       June 8, 2020      

Retained

Earnings

 

 

 

(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.    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 three months ended June 30, 2021

 

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, 2021

The Board of Directors

  Common Stock      95,201        37.50        March 31, 2021        June 8, 2021       

Retained

Earnings

 

 

 

(Note)          Cash dividends based on the resolution of the Board of Directors held on May 15, 2021 include ¥95 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 and others, and Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others by reportable segment

For the three months ended June 30, 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

     146,521       112,550        114,556        169,267        11,476        3,719       558,089  

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

     160,720       53,380        62,864        52,584        7,879        3,216       340,643  

Equity in income from investments in affiliates

     1,715       1,481        2,802        —          9        (149     5,857  

Amortization of goodwill and others

     564       25        90        210        1,911        251       3,051  

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

     (13,048     60,626        54,404        116,473        1,695        102       220,252  

 

(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 ¥(11,469) million, of which ¥(12,827) 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, 2021, reclassification was made on the above table to reflect the relevant change.

 

- 12 -


For the three months ended June 30, 2021

 

     (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

     162,620        101,965        123,430        122,436        14,300        14,827       539,578  

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

     161,407        51,021        62,904        53,923        8,183        5,930       343,368  

Equity in income from investments in affiliates

     6,031        1,275        4,729        —          289        430       12,754  

Amortization of goodwill and others

     540        24        90        201        1,812        (520     2,146  

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

     6,704        52,195        65,165        68,312        4,594        9,847       206,817  

 

(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 ¥12,427 million, of which ¥12,444 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 costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) + Net gains or losses related to ETFs and others of reportable segments and the recorded amounts in the Quarterly Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

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

The contents of the difference for the three months ended June 30, 2020 and 2021, are as follows:

 

     (Millions of yen)  
     For the three months ended
June 30, 2020
     For the three months ended
June 30, 2021
 

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

     220,252        206,817  

Credit Costs for Trust Accounts

     —          —    

General and Administrative Expenses (non-recurring losses)

     3,226        10,183  

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

     (41,177      (5,483

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

     2,176        8,147  

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

     (1,500      11,540  

Net Extraordinary Gains (Losses)

     670        27,423  

Others

     (7,556      (12,449
  

 

 

    

 

 

 

Income before Income Taxes recorded in Quarterly Consolidated Statement of Income

     176,092        246,181  
  

 

 

    

 

 

 

 

- 14 -


Financial Instruments

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2021.

Securities

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2021.

Money Held in Trust

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2021.

 

- 15 -


Derivatives Information

The classification, type, contract value, fair value and unrealized gains (losses) which are material for the operation of corporate group and have changed significantly in comparison to the end of fiscal year ended March 31, 2021 are as follows;

 

(1)

Interest Rate and Bond-Related Transactions

As of March 31, 2021

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Interest Rate Swaps

        1,040,320,952              201,427             201,427  

Inter-Company or Internal Transactions

  

Interest Rate Swaps

     18,582,112        (105,653     (105,653
     

 

 

    

 

 

   

 

 

 

Total

     —          95,773       95,773  
     

 

 

    

 

 

   

 

 

 

 

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

As of June 30, 2021

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Interest Rate Swaps

        1,045,229,701              284,153             284,153  

Inter-Company or Internal Transactions

  

Interest Rate Swaps

     21,337,517        (102,117     (102,117
     

 

 

    

 

 

   

 

 

 

Total

     —          182,035       182,035  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 16 -


(2)

Currency-Related Transactions

As of March 31, 2021

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Swaps

            69,875,350                  44,712               44,670  

Inter-Company or Internal Transactions

  

Swaps

     2,214,554        (10,879     14,122  
     

 

 

    

 

 

   

 

 

 

Total

     —          33,832       58,793  
     

 

 

    

 

 

   

 

 

 

 

(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 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 consolidated balance sheet.

     

•   Transactions denominated in foreign currencies which are eliminated in consolidation.

As of June 30, 2021

 

(Millions of yen)

 

Classification

  

Type

   Contract Value      Fair Value     Unrealized
Gains (Losses)
 

Over-the-Counter

  

Swaps

           70,840,760                154,106               55,954  

Inter-Company or Internal Transactions

  

Swaps

     2,146,790        (6,452     13,546  
     

 

 

    

 

 

   

 

 

 

Total

     —          147,653       69,501  
     

 

 

    

 

 

   

 

 

 

 

(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.

 

- 17 -


Revenue recognition

 

     (Millions of yen)  
     For the three months ended
June 30, 2021
 

Ordinary Income

     737,009  

Fee and Commission Income

     196,859  

Securities-related business

     50,330  

Deposits and Lending business (1)

     53,169  

Remittance business

     27,328  

Trust-related business

     17,241  

Agency business

     8,095  

Guarantee-related business (2)

     8,143  

Fees for other customer services

     32,549  

Fiduciary Income

     14,997  
  

 

 

 

Other Ordinary Income (1)

     525,152  
  

 

 

 

Notes:

 

(1)

Part of these amounts are considered to be revenues from contracts that are within the scope of “Accounting Standard for Revenue Recognition”.

(2)

These amounts are revenues from contracts that do not meet the scope of “Accounting Standard for Revenue Recognition”.

(3)

In the above table, revenues that are within the scope of “Accounting Standard for Revenue Recognition” are mainly generated from “Retail & Business Banking Company”, “Corporate & Institutional Company” and “Global Corporate Company”.

 

- 18 -


Per Share Information

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

 

     For the three months ended
June 30, 2020
     For the three months ended
June 30, 2021
 

(1)   Net Income per Share of Common Stock

   Yen      48.25        98.81  

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

     

Profit Attributable to Owners of Parent

   Millions of yen      122,375        250,541  

Amount not attributable to Common Stock

   Millions of yen      —          —    

Profit Attributable to Owners of Parent related to Common Stock

   Millions of yen      122,375        250,541  

Average Outstanding Shares of Common Stock (during the period)

   Thousands of shares      2,536,083        2,535,338  

(2)   Diluted Net Income per Share of Common Stock

   Yen      48.25        98.81  

(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      99        77  

Stock Acquisition Rights

   Thousands of shares      99        77  

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 2020.
     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 three months ended June 30, 2020 was 1,905 thousand, and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2021 was 2,499 thousand.

 

- 19 -


II.

Others

At the meeting of the Board of Directors held on May 14, 2021, the year-end cash dividends for the 19th term were resolved as follows:

 

Total amount of year-end cash dividends

     ¥95,201 million  

Year-end cash dividends per share

  

Common Stock

     ¥37.50  

Effective date and starting date of dividend payments

     June 8, 2021  

 

- 20 -