Mizuho Financial : Financial Results for FY2019 Q1

Financial Results for FY2019 Q1

September 3, 2019

Forward-looking Statements

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as "aim," "anticipate," "believe," "endeavor," "estimate," "expect," "intend," "may," "plan," "probability," "project," "risk," "seek," "should," "strive," "target" and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward- looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; impairment of the carrying value of our long-lived assets; problems related to our information technology systems, including as a result of cyber attacks; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels and meet other financial regulatory requirements; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of "One MIZUHO, " and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in "Item 3. D. Key Information-Risk Factors" and "Item

5. Operating and Financial Review and Prospects" in our most recent Form 20-F filed with the U. S. Securities and Exchange Commission ("SEC"), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC's web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

Definitions

FG:	Mizuho Financial Group, Inc.	BK:	Mizuho Bank, Ltd.	TB: Mizuho Trust & Banking Co., Ltd.
SC:	Mizuho Securities Co., Ltd.	MSUSA: Mizuho Securities USA LLC	GCC: Global Corporate Company
RBC: Retail & Business Banking Company	CIC:	Corporate & Institutional Company
GMC: Global Markets Company	AMC: Asset Management Company

Customer Groups: Aggregate of RBC, CIC, GCC and AMC

Consolidated Net Business Profits = Consolidated Gross Profits - G&A Expenses (excl. Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

Net Income Attributable to FG: Profit Attributable to Owners of Parent

2 Banks: Aggregate figures for BK and TB on a non-consolidated basis

Group aggregated: Aggregate figures for BK, TB, SC, AM and other major subsidiaries on a non-consolidated basis

Company management basis: management figure of the respective in-house company

2

Contents

‐Overview of Income Statement	P.	4
‐Overview of Balance Sheet	P.	5
‐Financial Results by In-house Company	P.	6
‐Loans in Japan	P.	7
‐Loans outside Japan	P.	8
‐Non-JPY Funding	P. 9
‐Non-interest Income from Customer Groups	P.	10
‐General and Administrative Expenses	P.	11
‐Securities Portfolio	P.	12
‐Asset Quality	P.	15
‐Loan Portfolio outside Japan	P.	16
‐Basel Regulatory Disclosures	P.	17

3

Overview of Income Statement

(JPY B)

1. Consolidated Gross Profits
2. Net Interest Income
3. Net Fee and Commission Income + Fiduciary Income
4. Net Trading Income + Net Other Operating Income
5. Net Gains (Losses) related to Bonds
6. General and Administrative Expenses
   Consolidated Net Business Profits
7. + Net Gains (Losses) related to ETFs and others*
8. Consolidated Net Business Profits
9. Credit-relatedCosts
   Net Gains (Losses) related to Stocks
10. - Net Gains (Losses) related to ETFs and others
11. Net Gains (Losses) related to Stocks
12. Equity in Income from Investments in Affiliates
13. Other
14. Ordinary Profits
15. Net Extraordinary Gains (Losses)
16. Income before Income Taxes
17. Income Taxes
18. Profit Attributable toNon-controlling Interests
19. Profit Attributable to Owners of Parent

FY18 Q1		FY19 Q1		YoY			FY19 target		Progress
475.7		521.7		45.9
195.4		179.9	-15.4
137.6		148.4	10.8
142.6		193.2		50.5
18.7		63.3		44.5
-355.0		-328.4		26.6
142.9		191.8		48.8		600.0	31%
113.6		188.2		74.6
22.5		-1.6		-24.1		-60.0
50.9		24.6		-26.3		160.0
80.3		28.2		-52.1
4.2		11.4		7.2
-18.6		-11.4		7.1
209.1		219.8		10.7		520.0	33%
7.2		-2.4		-9.6
216.3		217.3		1.0
-48.9		-51.2		-2.2
-6.3		-3.6	2.6
161.0		162.4		1.4		470.0	34%

* Net Gains (Losses) related to ETFs (2 Banks) + Net Gains on Operating Investment Securities (SC Consolidated). FY18 Q1: JPY 29.3B, FY19 Q1: JPY 3.5B.

4

Overview of Balance Sheet (Jun-19)

Total Assets: JPY 202T (+JPY 1.9T)

Risk Weighted Assets: JPY 59T (-JPY2.0T)

Consolidated, ( ) represent changes from Mar-19

JPY Loans1

Loans to

individuals,

and other

JPY 48T

Fixed(BK, Japan)

Floating-rate

linked

Prime-rate linked

BOJ current account balance

2 Banks: JPY 34T (-JPY 1.9T)

Loans

JPY 79T

(+JPY 0.5T)

JPY 1	JPY 48T
Non-JPY1	USD 280.0B

Securities

JPY 29T
(-JPY 0.2T)
Stocks	JPY 3.4T
JGBs	JPY 12.4T
Non-JPY Bonds	JPY 8.0T

Other Assets

JPY 94T

(+JPY 1.6T)

Cash and Due JPY 40.6Tfrom Banks

Deposits/NCDs2

JPY 135T

(-JPY 2.5T)

JPY 1	JPY 113T
Non-JPY1, 3	USD 201.7B

Other Liabilities

JPY 58T

(+JPY 4.8T)

Net Assets

JPY 8T

(- JPY 0.3T)

	JPY Deposits1
	NCDs2
Time	Liquid
Deposits	Deposits

JPY 98T

(BK, Japan)

o/w individual deposits: JPY 41T

Leverage Ratio: 4.28% (-0.14%)

Liquidity Coverage Ratio4: 142.5% (-1.8%)

1. Management basis, rounded figures. 2. Negotiable Certificates of Deposit. 3. Customer Deposits. 4. FY19 Q1 result, ( ) represents QoQ compared to FY18 Q4.

5

Financial Results by In-house Company

Group aggregate, management accounting, rounded figures

				Net Business Profits1, 2
		FY18 Q1	6		FY19 Q1	YoY	FY19
(JPY B)			target
	RBC	-14.8		-10.8	4.0	18.0
	CIC	51.4		57.2	5.7	238.0
	GCC	34.0		48.1	14.2	157.0
	GMC	67.1		83.5	16.4	154.0
	AMC	3.9		2.8	-1.1	13.0
	In-house Company	141.7		180.8	39.2	580.0
	Total
	FG Consolidated	142.9		191.8	48.8	600.0

Net Income 3

FY18 Q1	6	FY19 Q1	YoY	FY19
	target
-8.5	-15.0	-6.4	21.0
90.1	52.0	-38.0	253.0
17.7	49.1	31.4	91.0
46.9	58.6	11.7	106.0
1.7	1.4	-0.3	5.0
147.8	146.1	-1.7	476.0
161.0	162.4	1.4	470.0

ROE4, 5

FY19 Q1	FY19
target

• 1.7%
  10.2% 12.2%
  15.3% 6.7%
  17.0% 6.1%
  5.0% 4.4%

8.5% 6.2%

1. Net Gains (Losses) related to ETFs are included in GMC. 2. FG Consolidated figures are Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and others.

1. FG Consolidated figures are Net Income Attributable to FG. 4. Each Company's ROE is on management accounting basis. Calculated not only taking account of regulatory risk weighted assets but also other factors such as interest rate risk in the banking account. 5. Net Unrealized Gains (Losses) on Other Securities are deducted from the denominator when ROE of FG is calculated.

1. Changed management accounting rules in FY19. FY18 Q1 figures are recalculated based on the new rules.

6

Loans in Japan

	Loan Balance1(Period-end Balance)			2 Banks
(JPY T)
		54.0	54.8			54.6	55.8	56.5
		53.6	53.8	1.5
Japanese	1.6
	3.2	1.8
Gov. & other	3.9	2.4	2.1
public sector
Large Corp.,	18.1	19.0	18.8	18.9	20.1	21.0
etc.

54.9

SMEs2

20.9

21.7

21.8

22.5

22.6

23.5

Individuals3	11.0	10.7		10.4	10.1	9.8	9.6
			Sep-16Mar-17	Sep-17Mar-18	Sep-18Mar-19Jun-19
			53.2	54.4			53.6	53.5		53.8	55.0		55.9
Avg.
		H1	H2			H1	H2		H1	H2		Q1
Balance
		FY16		FY17			FY18	FY19

			Loan and Deposit Rate Margin 4									2 Banks
															Return on Loans and Bills Discounted ･･･a
															Loan and Deposit Rate Margin	･･･a - b
	0.94%	0.90%							Cost of Deposits and Debentures	･･･ b
	0.86%	0.85%	0.83%
						0.80%	0.79%
	0.93%
	0.89%
	0.86%	0.84%	0.82%
						0.80%	0.78%
																	Q1 0.83%	Q3 0.80%
																	Q2 0.82%
																	Q4 0.79%
	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
			FY16 H1	FY16 H2	FY17 H1	FY17 H2		FY18 H1	FY18 H2	FY19 Q1
		Loan Spread															BK, management accounting
															Loans to Middle Market Firms & SMEs
	0.70%	0.66%							Loans to Large Corporate Banking Clients
	0.64%
						0.62%	0.60%		0.58%
	0.51%												0.56%
	0.50%
	0.48%	0.48%	0.48%		0.47%	0.49%

FY16 H1 FY16 H2 FY17 H1 FY17 H2 FY18 H1 FY18 H2 FY19 Q1

1. Excluding loans to FG. Banking account. 2. Calculated by deducting "Housing and Consumer Loans" from "Loans to SMEs and Individual Customers".

3. Housing and Consumer Loans. 4. Domestic Operations, excluding loans to financial institutions (including FG) , and the Japanese Government and others.

7

Loans outside Japan

	Loan Balance1,2(Period-end Balance)	BK, management accounting
(USD B)
							240.9	248.0
						235.1
		204.8	203.1	203.7	215.3		52.9	55.0
			46.3
EMEA	38.6	40.4	38.1	44.2
						69.8	75.7	77.4
Americas	75.4	70.9	67.4	69.1

Asia	90.8	91.8	98.2	102.0	119.0	112.4	115.7

		Sep-16Mar-17Sep-17Mar-18	Sep-18Mar-19Jun-19
	203.9	209.0	207.0	213.4		227.4	243.8		244.3
Avg.
	H1	H2		H1	H2		H1	H2	Q1
Balance
	FY16		FY17		FY18	FY19

		Loan and Deposit Rate Margin					BK, Overseas
						Return on Loans and Bills Discounted ･･･a
						Loan and Deposit Rate Margin	･･･a - b	2.91%		2.97%
						Cost of Deposits and Debentures	･･･ b
														2.24%		2.67%
		1.70%	1.83%	2.03%		2.01%		2.07%
			1.68%
					1.21%
					1.08%
												0.98%
								0.97%						0.89%
		0.96%		0.89%
								0.86%	0.95%	1.03%
		0.73%		1Q 0.98%		3Q 0.93%
																		2Q 0.99%		4Q 0.88%
			FY16 H1	FY16 H2	FY17 H1	FY17 H2	FY18 H1	FY18 H2	FY19 Q1
		Loan Spread1, 2							BK, management accounting

0.91%0.89% 0.89%0.90%

0.85%

0.80% 0.80%

FY16 H1 FY16 H2 FY17 H1 FY17 H2 FY18 H1 FY18 H2 FY19 Q1

1. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia, Russia, Brazil and Mexico).
2. Changed management accounting rules in FY19. Past figures are recalculated based on the new rules.

8

Non-JPY Funding

Non-JPY Assets and Funding (Jun-19)

(USD B)

BK1, management accounting

Trends in Non-JPY Loans and Deposits

(USD B)

BK1, management accounting

417.2		417.2				Non-JPY Loans2,3
						Non-JPY Deposits2,3
Loans		Customer				Proportion of Deposits to Loan
		Deposits	72%		74%	72%
		201.7					272.4		280.0
280.0			245.6
			200.4	201.7
		177.6

Medium and

LT Funding

74.6

• Corporate Bonds
• Currency Swaps, etc.

Mar-18

Mar-19

Jun-19

Reference: 5 Year Currency Swap Rates (USD/JPY)

Securities	Market		(bps)
	80
	Operations
	• Repos
77.1	82.8	60
• Interbank
Other	CD/CP	• Central Banks, etc.	40
60.1	58.2		20
Assets	Funding		0

1.	Includes the banking subsidiaries in China, the US, the Netherlands, Indonesia, etc.	Mar-18	Sep-18	Mar-19	Jun-19
		Source: Bloomberg
2.	Change management accounting rules in FY19. Past figures are recalculated based on the new rules. 3. Including Non-JPY loans/deposits in Japan.

9

Non-interest Income from Customer Groups

	Non Interest Income1						Group aggregate, management accounting, rounded figures
(JPY B)	-4									( ) represent YoY
		2								Solutions Business-related: 29 (+9)
		(+2)
												Syndicated Loans: 3 (-2)
		222									Investment Banking related: 19 (+13)
		218							Securities-related Fees: 3 (-1)
195						Banking in Japan					Investment Trust & Annuities: 5 (-2)
					85 (+1)				Investment Trusts: 2 (-1)
		84	85							Individual Annuities: 3 (-1)
								Settlement & Foreign Exchange: 40 (+1)
66
										Settlement: 21 (+1)
												Foreign Exchange: 19 (-0)
		40				Banking outside Japan	44 (+4)				Derivatives & Other: 11 (-7)
								EMEA: 7(+1)
35	44
								Americas: 17(+2)
38	41	38		Trust / AM-related	38 (-3)				Asia: 18 (+1)
								Real Estate: 11 (+2)
45	49	42		Securities	42 (-7)				Pension/Asset Management: 15 (-0)
				In Japan: 34 (-7)
11	8	9							Outside Japan: 8 (+0)
	FY17 Q1	FY18 Q1	FY19 Q1

1. Changed management accounting rules in FY19. The original figures before the recalculation are FY17 Q1: JPY 191B and FY18 Q1: JPY 219B.
2. Adjusting the effect of the unconsolidation of Trust & Custody Services Bank, Ltd. in October 2018.

10

General and Administrative Expenses

	General and Administrative Expenses1	Consolidated
(JPY B)	-26.6	( ) represent YoY

362.1	355.0	328.4	Unrecognized Actuarial
5.7
- 7.5	-15.1	(-7.5)
	- 15.1	Differences

170.8	174.2	167.8	Personnel 2	167.8 (-6.3)

BK Consolidated 3:

96.7 (-6.7)

SC Consolidated4: 40.9 (+1.7)

Other:

30.1 (-1.2)

BK Consolidated 3: 106.8 (-10.7)

167.9 170.9 159.1

17.4	17.4	16.4
FY17 Q1	FY18 Q1	FY19 Q1

Non-Personnel	159.1 (-11.8)

Miscellaneous Taxes 16.4(-0.9)

SC Consolidated4: 35.9 (-1.9)

Other:

16.4 (+0.9)

1. Includes Non-recurring Losses. 2. Excluding Unrecognized Actuarial Differences. 3. Excluding MSUSA. 4. Aggregated MSUSA.

11

Securities Portfolio

	Other Securities1
				Consolidated, acquisition cost basis
(JPY T)
		29.6
26.6	3.0	26.1	26.2
2.6	8.4	2.5	2.9		Other
9.0		7.3	7.5		Foreign Bonds

13.2	16.5	14.7	14.4		Japanese Bonds

Unrealized Gains/Losses on Other Securities1, 2

(JPY B)

Consolidated

1,925.9

97.5

1,784.8 5.4

87.8

21.1

1,651.8		Foreign Bonds
21.7

5.21,513.3

	32.0
1,984.2	7.9			Japanese Bonds

1,838.7
1,687.6
1,515.5		Japanese Stocks

-162.9-161.2

-62.7-42.2Other

1.6						Japanese Stocks
1.5	1.4	1.4
Mar-17	Mar-18	Mar-19	Jun-19

Mar-17Mar-18Mar-19Jun-19

1. Other Securities which have readily determinable fair values. 2. The base amount to be recorded directly to Net Assets after tax and other necessary adjustments. Fair value of Japanese stocks is determined based on the average quoted market price of the respective month. Fair value of securities other than Japanese stocks is determined based on the quoted market price if available, or other reasonable value, at the respective period end.

12

Securities Portfolio (Bonds)

	Net Gains/Losses related to Bonds	Consolidated
(JPY B)

97.8	Includes one-	63.3
	time loss of	1
	JPY 149.2B	18.7

-20.7

-109.3

FY16

FY17

FY18

FY18 Q1

FY19 Q1

Reference: Interest Rate Trends in and outside Japan

（%）	High 3.24%
3
2		Low 1.99%	UST
		(10y)
1	High 0.16%
0				JGB
		Low - 0.17%
-1		(10y)
Mar-18	Sep-18	Mar-19	Jun-19

	JGB Portfolio2			2 Banks, acquisition cost basis
(JPY T)		13.3
							11.8
						10.2	3.4	11.5
	Treasury Discount
	Bills			1.7	0.6	5.4	4.8
	Floating-rate Notes				0.6	9.2	0.6	0.5
	Medium & Long-term	7.8
		5.8	6.1
	Bonds 3

Avg. Remaining	2.4yrs	2.5yrs	2.1yrs	2.0yrs
Period 4
	Mar-17	Mar-18	Mar-19	Jun-19

	Unrealized Gains/Losses 5	8.7	0.6	5.9	5.6
	(JPY B)
	Foreign Bond Portfolio 2		2 Banks, acquisition cost basis
(JPY T)

8.7 8.17.1 7.3

Avg. Remaining	3.9yrs	3.4yrs	3.2yrs	3.9yrs
Period

	Mar-17	Mar-18	Mar-19	Jun-19
Unrealized Gains/Losses 5	-162.9	-160.2	21.1	31.1
(JPY B)

1. Includes the loss of JPY 149.2B pertaining to restructuring of foreign bond portfolio, and others. 2. Other Securities which have readily determinable fair values.

3. Includes bonds with remaining period of one year or less. 4. Excludes floating-rate notes. 5.The base amount to be recorded directly to Net Assets after tax and other necessary adjustments. Determined based on the quoted market price if available, or other reasonable value, at the respective period end.

13

Securities Portfolio (Stocks)

	Net Gains (Losses) related to Stocks	Consolidated
(JPY B)
	Net Gains (Losses) related to
	ETFs and others1
				272.0	274.8
		242.1		14.9
				80.1
36.4

		259.8
205.7	191.9		80.3
			29.3	28.2
			50.9	3.5
				24.6
FY16	FY17	FY18	FY18 Q1	FY19 Q1

	Japanese Stock Portfolio	2		Consolidated
			Acquisition cost basis
(JPY B)
					Cumulative Amount:
					-JPY 543.0B

		-15.3
1,962.9
1,419.8	1,404.5

Mar-15	Mar-19	Jun-19
Unrealized Gains/Losses 32,132.1	1,687.6	1,515.5

Reduction target of cross-shareholdings

Reduction by Mar-22	-JPY 300B
(vs Mar-19)

1. Net Gains (Losses) related to ETFs (2 Banks) + Net Gain on Operating Investment Securities (SC Consolidated). 2. Other Securities which have readily determinable fair values.

3. The base amounts to be recorded directly to Net Assets after tax and other necessary adjustments. Determined based on the average quoted market price of the respective month.

14

Asset Quality

	Credit-related Costs	2 Banks
(JPY B)	Banking account + Trust account

< > Credit-related Costs Ratio:

Ratio of Credit-related Costs against Total Claims1

153.2

<18bps>

	Non Performing Loans based on FRA2	2 Banks
(JPY T)	Banking account + Trust account

	0.84		NPL Ratio
Claims against Bankrupt
and Substantially
Bankrupt Obligors

0.61

Claims with	0.55	0.56
Collection Risk

					1.00%
			-3.0
			<-0bps>	Claims for Special Attention	0.66%	0.62%	0.68%
		-22.7
		<-2bps>
-49.3
<-5bps>						Mar-17	Mar-18	Mar-19	Jun-19
FY16	FY17	FY18	FY19 Q1

1. Period-end balance, based on the Financial Reconstruction Act. 2. Financial Reconstruction Act.

15

Loan Portfolio outside Japan

Loan Portfolio outside Japan (June-19)

Total: USD 248.0B

BK1GCC management basis

Non-Japanese 65%			Japanese 35%
Asia	Americas		EMEA
47%	31%		22%

Asia/Oceania: USD 115.7B

Quality of Loan Portfolio

Investment Grade Level Ratio NPL Ratio

Hong Kong	Singapore	Taiwan	Australia	Thailand	China	South		Indo	-
Korea	India	nesia	Others
23%	18%	9%	9%	9%	8%	8%	6%	3%	7%

76%

77%

77%

China: USD 9.5B

	Non-Japanese 55%
								Japanese	45%
	General Corporate			FI 2
Chinese			Non-Chinese
0%	20%	40%		60%	80%	100%
1. Including banking subsidiaries outside Japan. 2. Financial Institutions

16

0.6% 0.6% 0.6%

Mar-18Mar-19Jun-19

Basel Regulatory Disclosures

	Capital Ratio	Consolidated			Leverage Ratio	Consolidated
(JPY B)			(JPY B)

Total Capital Ratio

18.24%

18.85%

17.87%

4.42%

4.28%4.28%

Tier 1 Capital Ratio

15.44%

15.94%

14.94%

CET1 Capital Ratio

[Excluding Net Unrealized Gains/Losses on Other Securities1]

12.49%

[10.29%]

12.76% 12.37%

[10.84%] [10.67%]

	Mar-18	Mar-19	Jun-19
Tier 1 Capital	9,192.2	9,232.1	8,956.7
Total Exposures	214,277.8	208,557.4	208,837.9

	Liquidity Coverage Ratio	Consolidated
(JPY B)
144.3%	142.5%

Mar-18Mar-19Jun-19

Common Equity Tier 1 Capital	7,437.0	7,390.0	7,413.9
Additional Tier 1 Capital	1,755.1	1,842.1	1,542.7
Tier 1 Capital	9,192.2	9,232.1	8,956.7
Tier 2 Capital	1,668.1	1,685.3	1,757.7
Total Capital	10,860.4	10,917.5	10,714.4
Risk Weighted Assets	59,528.9	57,899.5	59,928.6

	120.1%
	FY17 Q4	FY18 Q4	FY19 Q1
Total HQLA 2	60,159.6	59,797.1	61,006.4
Net Cash Outflows	50,079.0	41,447.8	42,792.2

1. Basel IIIfully-effective basis. Risk weighted assets associated with Net Unrealized Gains (Losses) on Other Securities (Japanese stocks) are deducted from the denominator when calculating.
2. TotalHigh-Quality Liquid Assets.

17