Mizuho Financial Group(MFG)2023-12-27 11:02Financial Performance - Mizuho Financial Group reported a profit attributable to owners of the parent of ¥415.7 billion for the six months ended September 30, 2023[28]. - Net income attributable to MHFG shareholders increased by ¥686 billion, from a loss of ¥379 billion in the six months ended September 30, 2022 to a profit of ¥307 billion in the six months ended September 30, 2023[42]. - Noninterest income was ¥992 billion in the six months ended September 30, 2023, compared to a loss of ¥214 billion in the corresponding period in the previous fiscal year, reflecting a significant recovery[51]. - Total comprehensive income attributable to MHFG shareholders increased from a loss of ¥120,153 million in 2022 to a gain of ¥523,321 million in 2023[177]. - Basic net income per common share shifted from a loss of ¥149.38 in 2022 to a profit of ¥121.06 in 2023[175]. Capital and Liquidity - The Common Equity Tier 1 capital ratio under Basel III as of September 30, 2023 was 11.52%[28]. - Mizuho Financial Group maintained a sufficient capital base compared to regulatory minimum requirements[28]. - The Liquidity Coverage Ratio (LCR) for Mizuho Financial Group (Consolidated) was 132.7% as of September 30, 2023, with total high-quality liquid assets of ¥80,465 billion and net cash outflows of ¥60,670 billion[127]. - The Net Stable Funding Ratio (NSFR) for Mizuho Financial Group (Consolidated) was 117.6% as of September 30, 2023, with available stable funding of ¥114,845 billion and required stable funding of ¥97,604 billion[128]. - The total equity increased from ¥9,725.1 billion to ¥10,224.8 billion[171]. Loans and Credit Quality - Total loans before allowance for credit losses on loans increased by ¥3,623 billion from March 31, 2023 to ¥97,799 billion as of September 30, 2023[91]. - Nonaccrual loans decreased by ¥59 billion, or 4.4%, from March 31, 2023 to ¥1,273 billion as of September 30, 2023[95]. - Provision for credit losses was a credit of ¥2 billion in the six months ended September 30, 2023, compared to a provision of ¥38 billion in the same period of the previous year[50]. - The coverage ratio for nonaccrual loans increased by 4.71 percentage points as of September 30, 2023, compared to March 31, 2023, due to an increase in total allowance for credit losses on loans and a decrease in total nonaccrual loans[102]. - The provision for credit losses improved from ¥37,646 million in 2022 to a credit of ¥2,484 million in 2023, indicating a positive shift in credit quality[175]. Economic Environment - The economic outlook remains uncertain due to high inflation and monetary tightening in major economies[13]. - There were 4,208 corporate bankruptcies in Japan in the six months ended September 30, 2023, involving approximately ¥1.6 trillion in total liabilities[29]. - The yen to U.S. dollar exchange rate weakened from ¥133.13 to ¥148.77 between March 31, 2023 and September 29, 2023[29]. Investments and Acquisitions - The acquisition of Greenhill & Co., Inc. was completed on December 1, 2023, for an enterprise value of approximately $550 million, aimed at accelerating investment banking growth strategy[34]. - Mizuho Securities holds 49.0% of the common stock in Rakuten Securities following a share transfer agreement completed on December 15, 2023, strengthening the strategic alliance[35]. Regulatory Compliance - The company is subject to regulatory capital requirements with a minimum capital adequacy ratio of 8%, including a Common Equity Tier 1 capital requirement of 4.5%[136]. - The finalized Basel III reforms require G-SIBs to meet a leverage ratio buffer set at 50% of the applicable risk-weighted capital buffer[143]. - The implementation of the finalized Basel III reforms was deferred to January 1, 2023, with further extensions for Japan to March 31, 2024[144]. - Mizuho Financial Group calculates its capital ratio in accordance with current regulations, without notifying for earlier implementation of Basel III[144].