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 2023

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  ☐

 

 

 

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NO. 333-266555) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 THREE MONTHS ENDED JUNE 30, 2023

On August 14, 2023, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2023 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, 2023, 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, 2023						As of June 30, 2023
Assets
Cash and Due from Banks					67,152,100						61,332,175
Call Loans and Bills Purchased					1,386,895						1,086,934
Receivables under Resale Agreements					11,693,419						14,195,893
Guarantee Deposits Paid under Securities Borrowing Transactions					1,897,429						1,714,426
Other Debt Purchased					3,836,735						3,904,318
Trading Assets					17,404,494						21,268,265
Money Held in Trust					514,607						568,865
Securities		*1, *2			37,363,140			*1, *2			44,086,569
Loans and Bills Discounted		*1			88,687,155			*1			91,463,813
Foreign Exchange Assets		*1			2,408,587			*1			2,417,603
Derivatives other than for Trading Assets					2,184,875						3,368,259
Other Assets		*1			8,689,547			*1			9,288,004
Tangible Fixed Assets					1,105,851						1,099,825
Intangible Fixed Assets					572,719						584,742
Net Defined Benefit Asset					859,271						820,729
Deferred Tax Assets					316,168						294,050
Customers’ Liabilities for Acceptances and Guarantees		*1			8,905,643			*1			9,312,235
Reserves for Possible Losses on Loans					(720,437	)					(669,098	)
Reserve for Possible Losses on Investments					(1	)					(1	)
Total Assets					254,258,203						266,137,612

 

- 3 -

		(Millions of yen)
		As of March 31, 2023						As of June 30, 2023
Liabilities
Deposits					150,498,976						146,526,777
Negotiable Certificates of Deposit					13,788,347						19,798,922
Call Money and Bills Sold					1,814,873						1,808,786
Payables under Repurchase Agreements					25,735,560						28,072,362
Guarantee Deposits Received under Securities Lending Transactions					757,842						859,552
Commercial Paper					1,782,111						1,636,507
Trading Liabilities					12,698,007						14,457,288
Borrowed Money					4,155,480						4,229,734
Foreign Exchange Liabilities					671,552						861,542
Short-term Bonds					477,141						458,646
Bonds and Notes					11,371,189						11,681,133
Due to Trust Accounts					1,534,097						1,114,199
Derivatives other than for Trading Liabilities					2,749,138						4,415,328
Other Liabilities					7,777,025						11,093,461
Reserve for Bonus Payments					126,694						38,887
Reserve for Variable Compensation					2,381						2,654
Net Defined Benefit Liability					68,429						67,965
Reserve for Director and Corporate Auditor Retirement Benefits					539						481
Reserve for Possible Losses on Sales of Loans					15,049						9,530
Reserve for Contingencies					13,706						22,997
Reserve for Reimbursement of Deposits					13,695						12,787
Reserve for Reimbursement of Debentures					7,798						6,973
Reserves under Special Laws					3,352						3,352
Deferred Tax Liabilities					22,391						24,086
Deferred Tax Liabilities for Revaluation Reserve for Land					58,711						58,061
Acceptances and Guarantees					8,905,643						9,312,235
Total Liabilities					245,049,740						256,574,260
Net Assets
Common Stock and Preferred Stock					2,256,767						2,256,767
Capital Surplus					1,129,267						1,129,267
Retained Earnings					5,093,911						5,230,926
Treasury Stock					(8,786	)					(8,110	)
Total Shareholders’ Equity					8,471,160						8,608,851
Net Unrealized Gains (Losses) on Other Securities					564,495						706,435
Deferred Gains or Losses on Hedges					(358,102	)					(376,699	)
Revaluation Reserve for Land					129,321						127,963
Foreign Currency Translation Adjustments					144,093						257,824
Remeasurements of Defined Benefit Plans					182,306						165,666
Own Credit Risk Adjustments, Net of Tax					19						(138	)
Total Accumulated Other Comprehensive Income					662,133						881,050
Stock Acquisition Rights					5						5
Non-controlling Interests					75,163						73,444
Total Net Assets					9,208,463						9,563,352
Total Liabilities and Net Assets					254,258,203						266,137,612

 

- 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, 2022						For the three months ended June 30, 2023
Ordinary Income					1,235,090						1,858,873
Interest Income					444,862						1,293,614
Interest on Loans and Bills Discounted					275,979						664,178
Interest and Dividends on Securities					80,623						117,802
Fiduciary Income					14,299						14,728
Fee and Commission Income					200,034						221,014
Trading Income					355,522						118,292
Other Operating Income					180,144						111,762
Other Ordinary Income		*1			40,227			*1			99,461
Ordinary Expenses					1,030,852						1,564,676
Interest Expenses					191,616						1,075,918
Interest on Deposits					56,662						388,963
Fee and Commission Expenses					40,854						49,824
Trading Expenses					348,543						714
Other Operating Expenses					21,909						18,675
General and Administrative Expenses					350,591						384,670
Other Ordinary Expenses		*2			77,337			*2			34,871
Ordinary Profits					204,237						294,197
Extraordinary Gains		*3			3,580			*3			20,018
Extraordinary Losses		*4			463			*4			641
Income before Income Taxes					207,355						313,574
Income Taxes:
Current					64,411						68,068
Deferred					(18,875	)					(838	)
Total Income Taxes					45,535						67,230
Profit					161,819						246,344
Profit Attributable to Non-controlling Interests					2,525						1,151
Profit Attributable to Owners of Parent					159,294						245,192

 

- 5 -

Quarterly Consolidated Statement of Comprehensive Income
		(Millions of yen)
		For the three months ended June 30, 2022						For the three months ended June 30, 2023
Profit					161,819						246,344
Other Comprehensive Income					(228,652	)					220,912
Net Unrealized Gains (Losses) on Other Securities					(317,031	)					141,921
Deferred Gains or Losses on Hedges					(27,323	)					(18,111	)
Foreign Currency Translation Adjustments					115,854						110,977
Remeasurements of Defined Benefit Plans					(10,934	)					(16,483	)
Own Credit Risk Adjustments, Net of Tax					(16	)					(158	)
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method					10,800						2,767
Comprehensive Income					(66,832	)					467,256
(Breakdown)
Comprehensive Income Attributable to Owners of Parent					(70,274	)					465,468
Comprehensive Income Attributable to Non-controlling Interests					3,442						1,788

 

- 6 -

Notes to Quarterly Consolidated Financial Statements

Changes in Accounting Policies

(Implementation of ASU2016-13, “Measurement of Credit Losses on Financial Instruments”)

Some overseas subsidiaries which apply U.S. GAAP and are considered non-public business entities have adopted ASU2016-13, “Measurement of Credit Losses on Financial Instruments” from the beginning of the first quarter ended June 30, 2023. This update has replaced the incurred loss impairment methodology in previous U.S. GAAP with a methodology that reflects expected credit losses with respect to financial instruments in the amortized cost category, and full lifetime expected credit losses have been estimated upon initial recognition and a reserve has been recognized. In adopting the accounting standard, Retained Earnings was adjusted for the cumulative effect at the beginning of the first quarter ended June 30, 2023 in accordance with transitional treatment set out in the accounting standard.

As a result, at the beginning of the first quarter ended June 30, 2023, Reserves for Possible Losses on Loans increased by ¥1,188 million, Reserves for Contingencies increased by ¥1,485 million and Retained Earnings decreased by ¥1,883 million.

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, Group Executive Officer, and Operating officers 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 Operating officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) and other entities 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 responsibilities and others in their respective company (“Stock Compensation I”), the stock compensation program based on the performance evaluation of the Company Group (“Stock Compensation II”) and the stock compensation program based on Company Group Officer’s responsibilities in their respective company and the performance evaluation of the Company Group, which distributes MHFG’s shares to Operating officers of MHFG and certain consolidated subsidiaries (“Stock Benefit”).

Stock Compensation I will be paid at the time of retirement in the form of shares of MHFG calculated based on their responsibilities and others. 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 financial-related indicators and evaluation of stakeholder-related indicators that the Company Group regard as important in order to improve corporate value over the medium to long term. A system is adopted which enables a decrease or forfeiture of the amount depending on the performance of the company or the individual.

 

- 7 -

Stock Benefit will be paid in the collective form of MHFG’s share, which is based on responsibilities in their respective company and the performance evaluation of the Company Group. Reduction and forfeit of the benefit can occur in the program.

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 June 30, 2023 was ¥4,213 million for 2,637 thousand shares (the carrying amount as of March 31, 2023 was ¥5,126 million for 3,231 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 macroeconomic uncertainty and others on credit risks on Reserves for Possible Losses on Loans for some credit. More specifically, we used the assumptions based on the forecasted GDP growth rate, financial variables including resource prices, interest rate, exchange rates, and others, the future outlook of the business environment for specific portfolio segments, the impact of reduced production of semiconductors, the Russia-Ukraine situation, and the U.S-China conflict and others in addition to the rebound demand and elevated global inflation following the end of COVID-19. Expected losses affected by these impacts in the future are recognized as Reserves for Possible Losses on Loans. There are no material changes in the methods of the above accounting estimates and the major assumptions used in the consolidated financial statements from those of the previous fiscal year.

In addition, expected losses which are assumed may occur in the future due to difficulties in foreign currency cash management influenced by economic sanctions against Russia, in claims for which transfer risk has not been avoided, are recognized as Reserve for Possible Losses on Loans to Restructuring Countries.

The expected losses are calculated based on evaluation of Russian country risk and past defaults which are announced by external rating firms and others. The amount of Reserve for Possible Losses on Loans to Restructuring Countries for the three months ended June 30, 2023 is ¥43,206 million, which includes ¥41,571 million against the claims related to Russia.

 

- 8 -

Notes to Quarterly Consolidated Balance Sheet

 

*1.

Claims based on Banking Act and the Act on Emergency Measures for the Revitalization of Financial Functions are as follows. The claims consist of those included in the accounts of bonds included in “Securities” (its principal’s redemption and interest payments are guaranteed, in whole or in part, and the corporate bonds issue is limited to a private placement of the securities (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)), “Loans,” “Foreign Exchanges Assets,” accrued interest and suspense payment in “Other Assets” and “Customers’ Liabilities for Acceptances and Guarantees” in the consolidated balance sheet, and securities in the notes in case they are loans (limited to those under a loan for use or lease agreement).

 

		(Millions of yen)
		As of March 31, 2023				As of June 30, 2023
Claims against Bankrupt and Substantially Bankrupt Obligors			43,866				42,599
Claims with Collection Risk			655,396				617,923
Claims for Special Attention			372,433				502,047
Loans Past Due for 3 Months or More			288				332
Restructured Loans			372,144				501,715
Sub-total			1,071,696				1,162,570
Normal Claims			100,457,014				103,623,853
Total			101,528,710				104,786,423

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, 2023				As of June 30, 2023
			1,134,235				1,105,435

 

- 9 -

Notes to Quarterly Consolidated Statement of Income

 

*1.	Other Ordinary Income includes the following:

 

		(Millions of yen)
		For the three months  ended June 30, 2022				For the three months  ended June 30, 2023
Gains on Sales of Stocks			24,659				43,838
Reversal of Reserves for Possible Losses on Loans			—				35,894

 

*2.	Other Ordinary Expenses includes the following:

 

		(Millions of yen)
		For the three months  ended June 30, 2022				For the three months  ended June 30, 2023
Stock-related Derivatives Expenses			—				10,083
Losses on Sales of Stocks			5,145				8,876

 

*3.	Extraordinary Gains includes the following:

 

		(Millions of yen)
		For the three months  ended June 30, 2022				For the three months  ended June 30, 2023
Gains on Cancellation of Employee Retirement Benefit Trust			3,254				14,847
Gains on Disposition of Fixed Assets			325				5,171

 

*4.	Extraordinary Losses is as follows:

 

		(Millions of yen)
		For the three months  ended June 30, 2022				For the three months  ended June 30, 2023
Losses on Disposition of Fixed Assets			463				486
Losses on Impairment of Fixed Assets			—				154

 

- 10 -

Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the three months ended June 30, 2023. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the three months ended June 30, 2022 and 2023 are as follows:

 

		(Millions of yen)
		For the three months  ended June 30, 2022				For the three months  ended June 30, 2023
Depreciation			38,709				40,236
Amortization of Goodwill			942				947

Changes in Net Assets

For the three months ended June 30, 2022

 

1.	Cash dividends paid

 

Resolution

Type

Cash Dividends (Millions of Yen)

Cash Dividends per Share (Yen)

Record Date

Effective Date

Resource of Dividends

May 13, 2022 The Board of Directors

Common Stock

101,542

40.00

March 31, 2022

June 6, 2022

Retained Earnings

 

(Note)				Cash dividends based on the resolution of the Board of Directors held on May 13, 2022 include ¥123 million of cash dividends on treasury stock held by BBT trust account.

For the three months ended June 30, 2023

 

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, 2023 The Board of Directors

Common Stock

107,882

42.50

March 31, 2023

June 6, 2023

Retained Earnings

 

(Note)				Cash dividends based on the resolution of the Board of Directors held on May 15, 2023 include ¥137 million of cash dividends on treasury stock held by BBT trust account.

 

- 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 (RBC), the Corporate & Investment Banking Company (CIBC), the Global Corporate & Investment Banking Company (GCIBC), the Global Markets Company (GMC), and the Asset Management Company (AMC).

The services that each in-house company is in charge of are as follows:

RBC:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

CIBC:

Services for large corporations, financial institutions and public corporations in Japan

GCIBC:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

GMC:

Investment services with respect to interest rates, equities and credits, etc. and other services

AMC:

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.

Effective as of April 1, 2023, MHFG partially restructured its in-house company system. CIBC was newly established by the integration of the Corporate & Institutional Company and the investment banking functions of the Global Products Unit. With the establishment of CIBC, the Global Corporate Company changed its name to GCIBC.

 

- 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 three months ended June 30, 2022

 

		(Millions of yen)
		MHFG (Consolidated)
		RBC				CIBC				GCIBC				GMC				AMC				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others			154,410				108,852				150,732				147,580				13,907				17,685				593,166
General and administrative expenses (excluding Non-Recurring Losses and others)			155,381				52,177				71,411				61,429				8,298				9,862				358,558
Equity in income from investments in affiliates			(2,196	)			1,535				5,948				—				36				251				5,574
Amortization of goodwill and others			518				23				90				193				1,715				250				2,789
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			(3,685	)			58,187				85,179				85,958				3,930				7,823				237,392

 

(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 ¥1,227 million, of which ¥130 million is included in the GMC.
		2.		“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
		3.		Following the partial restructuring of in-house companies and the change in allocation method for transactions between each segment and “Others” made in April 2023, reclassification was made on the above table to reflect the relevant change.

 

- 13 -

For the three months ended June 30, 2023

 

		(Millions of yen)
		MHFG (Consolidated)
		RBC				CIBC				GCIBC				GMC				AMC				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts) + Net gains or losses related to ETFs and others			164,598				111,373				153,223				137,137				13,537				52,205				632,073
General and administrative expenses (excluding Non-Recurring Losses and others)			156,509				53,630				80,270				73,807				8,495				18,915				391,626
Equity in income from investments in affiliates			1,835				1,419				6,739				—				(369	)			826				10,450
Amortization of goodwill and others			—				—				217				—				1,618				264				2,099
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			9,924				59,162				79,475				63,330				3,055				33,852				248,798

 

(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 ¥17,795 million, of which ¥17,329 million is included in the GMC.
		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 three months ended June 30, 2022 and 2023, are as follows:

 

		(Millions of yen)
		For the three months ended June 30, 2022				For the three months ended June 30, 2023
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			237,392				248,798
General and Administrative Expenses (non-recurring losses)			10,757				9,055
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)			(67,067	)			(4,647	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			2,209				31,997
Net Gains (Losses) related to Stocks—Net Gains (Losses) related to ETFs and others			19,223				5,255
Net Extraordinary Gains (Losses)			3,117				19,377
Others			1,722				3,738
Income before Income Taxes recorded in Quarterly Consolidated Statement of Income			207,355				313,574

 

- 15 -

Financial Instruments

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2023.

Securities

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2023.

Money Held in Trust

There are no significant changes to be noted compared with the amount of the fiscal year ended March 31, 2023.

 

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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, 2023 are as follows;

 

(1)	Interest Rate and Bond-Related Transactions

As of March 31, 2023

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Interest Rate Futures			133,198,056				105,460				105,460
Over-the-Counter		Interest Rate Swaps			1,632,369,585				(29,580	)			(29,580	)
Inter-Company or Internal Transactions		Interest Rate Swaps			15,675,207				409,412				409,412
Total					—				485,292				485,292

 

(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, March 17, 2022) and others are excluded from the above table.

As of June 30, 2023

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Interest Rate Futures			175,189,022				(772,671	)			(772,671	)
Over-the-Counter		Interest Rate Swaps			1,684,663,161				(131,936	)			(131,936	)
Inter-Company or Internal Transactions		Interest Rate Swaps			22,922,554				406,306				406,306
Total					—				(498,301	)			(498,301	)

 

(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, March 17, 2022) and others are excluded from the above table.

 

- 17 -

(2)	Currency-Related Transactions

As of March 31, 2023

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Swaps			101,803,817				221,551				177,713
		Forwards			137,422,181				16,369				16,369
Inter-Company or Internal Transactions		Swaps			3,839,109				259,825				11,189
		Forwards			387				12				12
Total					—				497,758				205,284

 

(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, 2023

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Swaps			109,951,226				207,317				257,782
		Forwards			152,409,770				(143,974	)			(143,974	)
Inter-Company or Internal Transactions		Swaps			4,371,419				526,065				23,243
		Forwards			12,088				642				642
Total					—				590,051				137,694

 

(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.

 

- 18 -

Revenue recognition

 

		(Millions of yen)
		For the three months ended June 30, 2022				For the three months ended June 30, 2023
Ordinary Income			1,235,090				1,858,873
Fee and Commission Income			200,034				221,014
Deposits and Lending business (1)			63,524				66,518
Securities-related business			41,580				57,177
Remittance business			26,909				26,126
Trust-related business			14,797				15,464
Guarantee-related business (2)			10,163				10,280
Agency business			8,686				9,106
Fees for other customer services			34,371				36,339
Fiduciary Income			14,299				14,728
Other Ordinary Income (1)			1,020,757				1,623,130

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 & Investment Banking Company” and “Global Corporate & Investment Banking Company”.

 

- 19 -

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, 2022				For the three months ended June 30, 2023
(1)   Net Income per Share of Common Stock		Yen			62.85				96.75
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent		Millions of yen			159,294				245,192
Amount not attributable to Common Stock		Millions of yen			—				—
Profit Attributable to Owners of Parent related to Common Stock		Millions of yen			159,294				245,192
Average Outstanding Shares of Common Stock (during the period)		Thousands of shares			2,534,214				2,534,288
(2)   Diluted Net Income per Share of Common Stock		Yen			62.85				96.74
(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			52				60
Stock Acquisition Rights		Thousands of shares			52				60
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					—				—

 

(Note)				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, 2022 was 3,289 thousand, and the average number of such Treasury Stock shares deducted during the three months ended June 30, 2023 was 3,153 thousand.

 

- 20 -

II.

Others

At the meeting of the Board of Directors held on May 15, 2023, the year-end cash dividends for the 21st term were resolved as follows:

 

Total amount of year-end cash dividends			¥107,882 million
Year-end cash dividends per share
Common Stock			¥42.50
Effective date and starting date of dividend payments			June 6, 2023

 

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