Mizuho Financial Group(US:MFG)2022-08-12 10:57Financial Performance - Mizuho Financial Group reported ordinary income of ¥1,235,090 million for the three months ended June 30, 2022, a significant increase from ¥737,009 million in the same period last year, representing a growth of approximately 67.6%[10]. - Interest income rose to ¥444,862 million, up from ¥293,342 million year-over-year, marking an increase of about 51.7%[10]. - The company's profit attributable to owners of the parent decreased to ¥159,294 million for the three months ended June 30, 2022, down from ¥250,541 million in the previous year, a decline of about 36.4%[10]. - The company reported comprehensive income of ¥(66,832) million for the three months ended June 30, 2022, a decline from ¥204,730 million in the previous year, indicating a significant drop in overall financial performance[11]. - For the three months ended June 30, 2022, the total gross profits amounted to ¥593,166 million, with a net business profit of ¥237,392 million, reflecting an increase from ¥206,817 million in the same period of 2021[39][42]. - The net income attributable to owners of the parent for the three months ended June 30, 2022, was ¥159,294 million, resulting in a net income per share of ¥62.85, down from ¥98.81 in the same period of 2021[58]. Assets and Liabilities - The total assets of Mizuho Financial Group increased to ¥250,620,959 million as of June 30, 2022, compared to ¥237,066,142 million as of March 31, 2022, reflecting a growth of approximately 5.7%[8]. - Total liabilities increased to ¥241,641,478 million as of June 30, 2022, compared to ¥227,865,110 million as of March 31, 2022, indicating a rise of approximately 6.0%[9]. - The total shareholders' equity increased slightly to ¥8,190,605 million as of June 30, 2022, from ¥8,130,185 million as of March 31, 2022, representing a growth of about 0.7%[9]. Trading and Investment - Mizuho Financial Group's trading income surged to ¥355,522 million, up from ¥103,004 million year-over-year, reflecting a substantial increase of approximately 245.0%[10]. - The company reported net gains related to ETFs and others of ¥19,223 million for the three months ended June 30, 2022, compared to ¥11,540 million in the same period of 2021[42][56]. - As of June 30, 2022, the total unrealized gains from interest rate futures were ¥84,274 million, while unrealized losses from over-the-counter interest rate swaps were ¥108,287 million[47]. - The company’s total contract value for currency-related transactions as of June 30, 2022, was ¥368,606 million, with unrealized losses of ¥103,344 million[49]. Expenses and Dividends - General and administrative expenses for the three months ended June 30, 2022, were ¥358,558 million, compared to ¥348,741 million in the same period of 2021[39][42]. - Cash dividends paid for the three months ended June 30, 2022, were ¥101,542 million, with a dividend per share of ¥40.00, compared to ¥95,201 million and ¥37.50 per share for the same period in 2021[31]. - The year-end cash dividends for the 20th term were resolved at a total amount of ¥101,542 million[4]. - The year-end cash dividend per share for common stock is set at ¥40[4]. - The effective date for the dividend payments is June 6, 2022[4]. Loan and Credit Management - The expected losses recognized as Reserves for Possible Losses on Loans to Restructuring Countries for the three months ended June 30, 2022, amounted to ¥57,474 million, including ¥55,845 million related to claims against Russia[22]. - For the three months ended June 30, 2022, MHFG reported losses on write-offs of loans totaling ¥50,984 million, a significant increase from ¥5,402 million for the same period in 2021[28]. - The total claims against bankrupt and substantially bankrupt obligors increased from ¥50,846 million as of March 31, 2022, to ¥93,420 million as of June 30, 2022[26]. - Normal claims rose from ¥96,224,900 million to ¥102,655,877 million between March 31, 2022, and June 30, 2022[26]. Accounting and Policy Changes - The company implemented a new accounting policy for fair value measurement starting from the first quarter ended June 30, 2022, which may impact the valuation of certain investment trusts[12]. - MHFG has implemented the Japanese Group Relief System for tax accounting, with no material impact from the changes in accounting policies[23]. - The company has adopted a system for stock compensation that allows for a decrease or forfeiture based on individual and company performance[16]. Corporate Actions - The company engaged in a debt waiver and debt equity swap with Marelli Holdings Co., Ltd., which involved the exchange of claims for preferred stocks as part of a business reconstruction plan accepted by the court[60][61]. - The company is reviewing borrower ratings and allowances in light of the business reconstruction plan and additional investment from KKR[3].