Mizuho Financial Group, Inc., founded in 1999, is a Japanese bank holding company. The group offers financial and strategic services through its group companies, which include Mizuho Bank and Mizuho Securities. The group has 51,212 employees, and is listed on the Tokyo stock exchange.

The company operates through five segments: RBC, serving domestic individuals and SMEs, contributing 26% of gross profits for nine months ending FY 24; CIBC, serving large corporate, financial, and public corporations in Japan, contributing 19%; GCIBC, serving overseas-affiliated Japanese and non-Japanese companies, contributing 26%; GMC, engaged in investment in interest rates and equity, contributing 21%; and AMC, developing asset management products for individuals and institutional investors, contributing 2%, and 6% derived from other services.

Steady growth anticipated in FY 25

The company anticipates consolidated net business profits of JPY1,280 bn in FY 25, and net attributable profit of JPY940bn. Management has prioritized shareholder return and declared an annual dividend of JPY140 per share, reflecting a yield of 3.7%. In addition, the group plans to pay an estimated annual dividend of JPY145 per share in FY 25.

Mizuho has also decided to make share buybacks totaling up to JPY100bn in FY 25, which aligns with its policy of keeping a progressive growth in dividends per share, while executing flexible and intermittent share buybacks.

Launch of Mizuho Bank Europe

Mizuho Financial Group, Inc. announced the merging of Amsterdam-based Mizuho Bank Europe N.V., a subsidiary of Mizuho Bank, Ltd., with Frankfurt-based Mizuho Securities Europe GmbH, a subsidiary of Mizuho Securities Co., Ltd. The new surviving entity, Mizuho Bank Europe began operations under its new universal bank structure, integrating banking and securities services, effective April 7, 2025.

Mizuho joins NextGen CDR Facility

Mizuho Financial Group, Inc. has become the first Japanese bank to join the NextGen CDR Facility, committing to a long-term purchase agreement for technology-based carbon dioxide removal (CDR) credits. The NextGen CDR Facility, operated by NextGen CDR AG—a joint venture between Mitsubishi Corporation and South Pole—aims to promote innovative carbon removal technologies. Other participants include Mitsui O.S.K. Lines, Boston Consulting Group, LGT, Swiss Re, and UBS.

Positive long-term trajectory

The group posted a modest NII CAGR of 3.1% over FY 18-23, reaching JPY888bn. Non-interest income increased at a CAGR of 5% over the same period to JPY2,308bn in FY 23. However, provision for loan losses grew at a CAGR of 75.8% over the same period. Nevertheless, net income surged at a CAGR of 47.7% to JPY679bn in FY 23, helped by lower asset write-downs.

The company strengthened its cash position to JPY71.2tn as of end-FY 23 from JPY45.1tn as of end-FY 18. Net loans rose to JPY93.3tn as of end-FY 23 from JPY78.8tn as of end-FY 18. However, total debt also rose from JPY32.8tn to JPY64.1tn over the same period. Mizuho posted consistent improvement in ROE performance over the same period, which rose from 1.3% to 7%.

In comparison, Mitsubishi UFJ Financial Group, Inc., a local peer, experienced a lower NII CAGR of 2.5% over FY 18-23 to reach JPY2.6tn. Net income grew at a CAGR of 13.1% to JPY1.3tn in FY 23.

Encouraging opinions amongst analysts

Over the past 12 months, Mizuho's stock has delivered impressive returns of about 22%, just over Mitsubishi UFJ’s stock, which delivered a similar return of about 21%.

The company is currently trading at a P/B multiple of 0.9x, which is higher than its 3-year historical average of 0.6x. However, it is trading slightly below Mitsubishi, which is trading at 1.1x.

Mizuho is monitored by 12 analysts: two have ‘Buy’ ratings, six have ‘Outperform’ ratings and four have ‘Hold’ ratings. They have an average target price of JPY4,386, implying 14% upside potential at present. Their views are further supported by an anticipated net profit CAGR of 16.2% over FY 23-26, reaching JPY1,065bn with margins of 38.8% in FY 26, with EPS expected to increase to JPY432 in FY 26 from JPY267.9 in FY 23. Likewise, analysts estimate net profit CAGR of 13.4% for Mitsubishi over the same period.

Overall, the company reported strong growth in FY 24, with decent rise in net interest income and net income. Mizuho joined the NextGen CDR Facility for carbon credits, demonstrating its sustainability commitments. Over recent years, net income and ROE have improved significantly. However, Mizuho is prone to a few risks including change in interest rates, credit risk, and capital adequacy risks.