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 February 2018

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  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    .

 

 

 

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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NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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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.

 

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UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2017

On February 14, 2018, we published our unaudited quarterly consolidated financial statements as of and for the nine months ended December 31, 2017 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 -

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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 nine months ended December 31, 2017, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

 

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I.	Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

 

		(Millions of yen)
		As of March 31, 2017						As of December 31, 2017
Assets
Cash and Due from Banks					47,129,583						47,913,637
Call Loans and Bills Purchased					1,035,746						1,262,721
Receivables under Resale Agreements					8,967,777						9,438,302
Guarantee Deposits Paid under Securities Borrowing Transactions					3,350,051						2,868,193
Other Debt Purchased					2,745,204						2,502,812
Trading Assets					10,361,787						11,414,185
Money Held in Trust					247,583						301,813
Securities		*2			32,353,158			*2			35,065,618
Loans and Bills Discounted		*1			78,337,793			*1			81,563,363
Foreign Exchange Assets					1,828,782						2,230,740
Derivatives other than for Trading Assets					2,170,750						1,533,121
Other Assets					4,180,339						3,717,451
Tangible Fixed Assets					1,136,329						1,111,618
Intangible Fixed Assets					1,045,486						1,093,872
Net Defined Benefit Asset					797,762						803,456
Deferred Tax Assets					56,066						51,183
Customers’ Liabilities for Acceptances and Guarantees					5,273,581						5,886,107
Reserves for Possible Losses on Loans					(509,175	)					(314,217	)
Total Assets					200,508,610						208,443,982

 

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		(Millions of yen)
		As of March 31, 2017						As of December 31, 2017
Liabilities
Deposits					120,045,217						124,895,672
Negotiable Certificates of Deposit					10,631,277						12,518,605
Call Money and Bills Sold					1,255,172						1,651,712
Payables under Repurchase Agreements					17,969,753						19,020,795
Guarantee Deposits Received under Securities Lending Transactions					1,679,300						2,402,938
Commercial Paper					789,705						767,151
Trading Liabilities					7,923,285						7,187,779
Borrowed Money					6,307,230						5,035,902
Foreign Exchange Liabilities					526,053						494,796
Short-term Bonds					226,348						341,098
Bonds and Notes					7,564,535						7,859,582
Due to Trust Accounts					4,784,077						4,570,161
Derivatives other than for Trading Liabilities					1,784,857						1,498,530
Other Liabilities					3,883,168						3,769,749
Reserve for Bonus Payments					67,633						32,688
Reserve for Variable Compensation					3,018						2,430
Net Defined Benefit Liability					55,236						56,888
Reserve for Director and Corporate Auditor Retirement Benefits					1,327						1,389
Reserve for Possible Losses on Sales of Loans					298						209
Reserve for Contingencies					5,680						5,780
Reserve for Reimbursement of Deposits					19,072						17,861
Reserve for Reimbursement of Debentures					32,720						26,198
Reserves under Special Laws					2,309						2,285
Deferred Tax Liabilities					337,800						461,979
Deferred Tax Liabilities for Revaluation Reserve for Land					66,585						66,237
Acceptances and Guarantees					5,273,581						5,886,107
Total Liabilities					191,235,249						198,574,533
Net Assets
Common Stock and Preferred Stock					2,256,275						2,256,548
Capital Surplus					1,134,416						1,134,758
Retained Earnings					3,615,449						3,901,581
Treasury Stock					(4,849	)					(6,052	)
Total Shareholders’ Equity					7,001,291						7,286,835
Net Unrealized Gains (Losses) on Other Securities					1,289,985						1,639,841
Deferred Gains or Losses on Hedges					10,172						(33,354	)
Revaluation Reserve for Land					145,609						144,817
Foreign Currency Translation Adjustments					(69,657	)					(70,062	)
Remeasurements of Defined Benefit Plans					144,866						143,684
Total Accumulated Other Comprehensive Income					1,520,976						1,824,927
Stock Acquisition Rights					1,754						1,163
Non-controlling Interests					749,339						756,521
Total Net Assets					9,273,361						9,869,448
Total Liabilities and Net Assets					200,508,610						208,443,982

 

- 4 -

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(2) Quarterly Consolidated Statement of Income and

      Quarterly Consolidated Statement of Comprehensive Income

      Quarterly Consolidated Statement of Income

 

 

		(Millions of yen)
		For the nine months ended December 31, 2016						For the nine months ended December 31, 2017
Ordinary Income					2,395,600						2,674,120
Interest Income					1,052,662						1,208,466
Interest on Loans and Bills Discounted					697,429						753,825
Interest and Dividends on Securities					187,902						200,553
Fiduciary Income					35,238						39,268
Fee and Commission Income					540,438						553,438
Trading Income					242,502						193,420
Other Operating Income					281,723						245,799
Other Ordinary Income		*1			243,036			*1			433,726
Ordinary Expenses					1,819,816						2,029,563
Interest Expenses					409,628						609,687
Interest on Deposits					156,732						234,038
Fee and Commission Expenses					117,695						122,402
Trading Expenses					1,852						—
Other Operating Expenses					64,352						72,175
General and Administrative Expenses					1,079,276						1,109,994
Other Ordinary Expenses		*2			147,010			*2			115,304
Ordinary Profits					575,783						644,556
Extraordinary Gains		*3			57,866			*3			18,472
Extraordinary Losses		*4			4,834			*4			5,237
Income before Income Taxes					628,816						657,790
Income Taxes:
Current					139,651						156,341
Deferred					(43,146	)					1,968
Total Income Taxes					96,504						158,309
Profit					532,311						499,481
Profit Attributable to Non-controlling Interests					27,655						23,777
Profit Attributable to Owners of Parent					504,655						475,703

 

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      Quarterly Consolidated Statement of Comprehensive Income

 

		(Millions of yen)
		For the nine months ended December 31, 2016						For the nine months ended December 31, 2017
Profit					532,311						499,481
Other Comprehensive Income					(145,220	)					302,733
Net Unrealized Gains (Losses) on Other Securities					2,523						347,373
Deferred Gains or Losses on Hedges					(131,523	)					(42,969	)
Revaluation Reserve for Land					(6	)					(2	)
Foreign Currency Translation Adjustments					(23,131	)					4,207
Remeasurements of Defined Benefit Plans					20,055						2,943
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method					(13,138	)					(8,819	)
Comprehensive Income					387,090						802,214
(Breakdown)
Comprehensive Income Attributable to Owners of Parent					358,964						780,443
Comprehensive Income Attributable to Non-controlling Interests					28,126						21,770

 

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Notes to Quarterly Consolidated Financial Statements

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing 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 performance-based stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer 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 Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The number of MHFG’s shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.

A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.

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 December 31, 2017 was ¥2,424 million for 13,319 thousand shares (the carrying amount as of March 31, 2017 was ¥1,428 million for 9,000 thousand shares).

 

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Notes to Quarterly Consolidated Balance Sheet

 

*1.	Non-Accrual, Past Due & Restructured Loans, which are included in Loans and Bills Discounted, are as follows:

 

		(Millions of yen)
		As of March 31, 2017				As of December 31, 2017
Loans to Bankrupt Obligors			33,330				24,822
Non-Accrual Delinquent Loans			430,525				356,699
Loans Past Due for Three Months or More			7,896				678
Restructured Loans			414,700				214,043
Total			886,452				596,243

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, 2017				As of December 31, 2017
			1,169,267				1,231,773

Notes to Quarterly Consolidated Statement of Income

 

*1.	Other Ordinary Income includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2016				For the nine months  ended December 31, 2017
Gains on Sales of Stocks			179,627				215,870
Reversal of Reserves for Possible Losses on Loans			—				177,306

 

*2.	Other Ordinary Expenses includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2016				For the nine months  ended December 31, 2017
System Migration-related Expenses			30,920				38,328

 

*3.	Extraordinary Gains includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2016				For the nine months  ended December 31, 2017
Gains on Cancellation of Employee Retirement Benefit Trust			—				16,125
Gains and Losses on Step Acquisition			56,226				—

 

*4.	Extraordinary Losses includes the following:

 

		(Millions of yen)
		For the nine months  ended December 31, 2016				For the nine months  ended December 31, 2017
Losses on Disposition of Fixed Assets			2,941				2,861
Losses on Impairment of Fixed Assets			1,615				2,376

 

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Notes to Quarterly Consolidated Statement of Cash Flows

We have not prepared Consolidated Statement of Cash Flows for the nine months ended December 31, 2017. Depreciation (including Amortization of Intangible Fixed Assets excluding Goodwill) and Amortization of Goodwill for the nine months ended December 31, 2016 and 2017 are as follows:

 

		(Millions of yen)
		For the nine months  ended December 31, 2016				For the nine months  ended December 31, 2017
Depreciation			121,775				130,156
Amortization of Goodwill			1,725				3,127

Changes in Net Assets

For the nine months ended December 31, 2016

 

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, 2016

Common Stock

93,838

3.75

March 31, 2016

June 3, 2016

Retained Earnings

The Board of Directors

Eleventh Series Class XI Preferred Stock

989

10

March 31, 2016

June 3, 2016

Retained Earnings

November 14, 2016

Common Stock

95,173

3.75

September 30, 2016

December 6, 2016

Retained Earnings

The Board of Directors

(Note)   Cash dividends based on the resolution of the Board of Directors on November 14, 2016 include ¥33 million of cash dividends on MHFG shares held by BBT trust account.

For the nine months ended December 31, 2017   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, 2017

Common Stock

95,173

3.75

March 31, 2017

June 5, 2017

Retained Earnings

The Board of Directors

November 13, 2017

Common Stock

95,186

3.75

September 30, 2017

December 5, 2017

Retained Earnings

The Board of Directors

 

(Notes)		1.		Cash dividends based on the resolution of the Board of Directors on May 15, 2017 include ¥33 million of cash dividends on treasury stock held by BBT trust account.
		2.		Cash dividends based on the resolution of the Board of Directors on November 13, 2017 include ¥49 million of cash dividends on treasury stock held by BBT trust account.

 

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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, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

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

Retail & Business Banking Company:

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

Corporate & Institutional Company:

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

Global Corporate Company:

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

Global Markets Company:

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

Asset Management Company:

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.

 

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2.	Gross profits (excluding the amounts of credit costs of trust accounts) 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) by reportable segment

For the nine months ended December 31, 2016

 

		(Millions of yen)
		MHFG (Consolidated)
		Retail & Business Banking Company				Corporate & Institutional Company				Global Corporate Company				Global Markets Company				Asset Management Company				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts)			515,900				295,000				266,700				461,900				36,800				(17,265	)			1,559,034
General and administrative expenses (excluding Non-Recurring Losses)			537,900				144,800				175,700				143,300				22,100				20,435				1,044,235
Equity in income from investments in affiliates			13,100				900				1,400				—				100				1,093				16,593
Others			—				—				—				—				—				(22,566	)			(22,566	)
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)			(8,900	)			151,100				92,400				318,600				14,800				(59,173	)			508,826

 

(Notes)		1.		Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
		2.		“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
		3.		Following the change in allocation method for transactions between each segment and “Others” made in April, 2017, reclassification was made on the above table to reflect the relevant change.

 

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For the nine months ended December 31, 2017

 

		(Millions of yen)
		MHFG (Consolidated)
		Retail & Business Banking Company				Corporate & Institutional Company				Global Corporate Company				Global Markets Company				Asset Management Company				Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts)			519,700				296,400				257,200				358,500				37,800				(33,471	)			1,436,128
General and administrative expenses (excluding Non-Recurring Losses)			538,700				147,100				184,100				151,100				20,900				45,541				1,087,441
Equity in income from investments in affiliates			9,200				800				2,300				—				600				2,047				14,947
Others			—				—				—				—				—				(15,724	)			(15,724	)
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)			(9,800	)			150,100				75,400				207,400				17,500				(92,689	)			347,910

 

(Notes)			1.			Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
			2.			“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.

 

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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) 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) 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 nine months ended December 31, 2016 and 2017, are as follows:

 

		(Millions of yen)
		For the nine months ended December 31, 2016				For the nine months ended December 31, 2017
Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)			508,826				347,910
Credit Costs for Trust Accounts			—				—
General and Administrative Expenses (non-recurring losses)			(35,040	)			(22,553	)
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)			(21,208	)			(14,402	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others			27,165				183,879
Net Gains (Losses) related to Stocks			137,805				190,185
Net Extraordinary Gains (Losses)			53,032				13,234
Others			(41,763	)			(40,463	)
Income before Income Taxes recorded in Quarterly Consolidated Statement of Income			628,816				657,790

 

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Securities

 

*

In addition to “Securities” on the quarterly consolidated balance sheet, Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included. Unlisted stocks and others, the fair values of which are deemed extremely difficult to determine, are excluded.

 

1.	Bonds Held to Maturity

As of March 31, 2017

 

		(Millions of yen)
		Consolidated Balance Sheet Amount				Fair Value				Difference
Japanese Government Bonds			3,059,975				3,097,144				37,168
Foreign Bonds			755,698				749,574				(6,124	)
Total			3,815,674				3,846,718				31,043

As of December 31, 2017

 

		(Millions of yen)
		Quarterly Consolidated Balance Sheet Amount				Fair Value				Difference
Japanese Government Bonds			2,159,917				2,186,470				26,552
Foreign Bonds			625,007				613,052				(11,954	)
Total			2,784,924				2,799,522				14,597

 

(Note)

The fair value is based on market prices as of December 31, 2017 (March 31, 2017) and other data.

 

2.	Other Securities

As of March 31, 2017

 

		(Millions of yen)
		Acquisition Cost				Consolidated Balance Sheet Amount				Difference
Stocks			1,687,587				3,542,046				1,854,458
Bonds			13,223,974				13,245,155				21,181
Japanese Government Bonds			10,255,613				10,264,329				8,716
Japanese Local Government Bonds			279,863				284,472				4,608
Short-term Bonds			99				99				—
Japanese Corporate Bonds			2,688,397				2,696,253				7,856
Other			11,749,945				11,693,530				(56,415	)
Foreign Bonds			9,099,741				8,955,436				(144,305	)
Other Debt Purchased			236,419				237,781				1,361
Other			2,413,783				2,500,312				86,528
Total			26,661,507				28,480,731				1,819,224

 

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As of December 31, 2017

 

		(Millions of yen)
		Acquisition Cost				Quarterly Consolidated    Balance Sheet Amount				Difference
Stocks			1,615,338				3,953,814				2,338,475
Bonds			15,677,072				15,677,861				788
Japanese Government Bonds			12,572,335				12,565,189				(7,145	)
Japanese Local Government Bonds			244,393				247,011				2,617
Short-term Bonds			99				99				—
Japanese Corporate Bonds			2,860,243				2,865,560				5,316
Other			12,651,823				12,642,005				(9,817	)
Foreign Bonds			9,571,718				9,411,409				(160,309	)
Other Debt Purchased			179,133				180,098				965
Other			2,900,971				3,050,497				149,525
Total			29,944,234				32,273,681				2,329,447

 

(Notes)		1.		Unrealized Gains (Losses) include ¥34,372 million and ¥68,710 million, which were recognized in the statements of income for the year ended March 31, 2017 and the nine months ended December 31, 2017, respectively, by applying the fair-value hedge method.
		2.		As for the quarterly consolidated balance sheet amount (consolidated balance sheet amount), fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price, or other reasonable value during the last month of the nine months ended December 31, 2017 (last month of the fiscal year ended March 31, 2017), and fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value as of December 31, 2017 (March 31, 2017).
		3.		Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the nine months ended December 31, 2017 (the fiscal year ended March 31, 2017) (impairment (devaluation)), if the fair value (primarily the closing market price as of December 31, 2017 (March 31, 2017)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.
				The amount of impairment (devaluation) for the fiscal year ended March 31, 2017 was ¥1,139 million.
				The amount of impairment (devaluation) for the nine months ended December 31, 2017 was ¥1,806 million.
				The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:
				•   Securities whose fair value is 50% or less of the acquisition cost
				•   Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower
		4.		Floating-rate Japanese Government Bonds
				Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value on the quarterly consolidated balance sheet (consolidated balance sheet).
				In deriving the reasonably calculated prices, we used the Discounted Cash Flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

 

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Money Held in Trust

 

1.	Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

 

2.	Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)

 

As of March 31, 2017

(Millions of yen)

Acquisition Cost

Consolidated Balance Sheet Amount

Difference

Other in Money Held in Trust

3,286

3,286

—

As of December 31, 2017

(Millions of yen)

Acquisition Cost

Quarterly Consolidated Balance Sheet Amount

Difference

Other in Money Held in Trust

3,463

3,463

—

 

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Derivatives Information

 

(1)	Interest Rate-Related Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			18,745,005				(1,621	)			(1,621	)
		Options			1,206,236				775				(179	)
Over-the-Counter		FRAs			30,828,579				(5,618	)			(5,618	)
		Swaps			878,154,442				109,894				109,894
		Options			13,760,116				(100,160	)			(100,160	)
Inter-Company or Internal Transactions		Swaps			13,874,345				32,379				32,379
Total					—				35,649				34,694

 

(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 Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

As of December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			17,586,139				(1,591	)			(1,591	)
		Options			952,892				281				(81	)
Over-the-Counter		FRAs			52,553,901				1,349				1,349
		Swaps			864,506,869				69,699				69,699
		Options			10,181,280				(83,420	)			(83,420	)
Inter-Company or Internal Transactions		Swaps			17,710,854				20,021				20,021
Total					—				6,339				5,975

 

(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 Audit Committee Report No. 24, February 13, 2002) and others are excluded from the above table.

 

- 17 -

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(2)	Currency-Related Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			94,383				—				—
Over-the-Counter		Swaps			45,250,084				54,489				99,071
		Forwards			112,895,843				110,932				110,932
		Options			5,453,339				(21,795	)			(22,230	)
Inter-Company or Internal Transactions		Swaps			3,441,048				(228,425	)			6,386
		Forwards			160,189				(2,328	)			(2,328	)
Total					—				(87,128	)			191,831

 

(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 Audit Committee Report No. 25, July 29, 2002) 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 December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			93,777				1				1
Over-the-Counter		Swaps			50,046,214				42,160				98,260
		Forwards			109,049,354				(42,153	)			(42,153	)
		Options			4,711,745				(4,289	)			(8,907	)
Inter-Company or Internal Transactions		Swaps			3,358,028				(111,060	)			15,604
		Forwards			166,271				1,214				1,214
Total					—				(114,127	)			64,019

 

(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 Audit Committee Report No. 25, July 29, 2002) 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 -

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(3)	Stock-Related Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Index Futures			845,111				1,557				1,557
		Index Futures Options			2,052,562				(97,647	)			(5,067	)
Over-the-Counter		Equity Linked Swaps			191,842				11,513				11,513
		Options			919,581				(5,596	)			(10,114	)
		Other			414,495				24,548				24,548
Total					—				(65,623	)			22,438

 

(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 are excluded from the above table.

As of December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Index Futures			1,343,332				(18,505	)			(18,505	)
		Index Futures Options			3,436,342				(14,675	)			(5,688	)
Over-the-Counter		Equity Linked Swaps			232,261				7,035				7,035
		Options			784,659				(14,797	)			(18,862	)
		Other			532,575				81,901				81,901
Total					—				40,958				45,880

 

(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 are excluded from the above table.

 

- 19 -

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(4)	Bond-Related Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			1,179,498				(1,988	)			(1,988	)
		Futures Options			687,146				64				18
Over-the-Counter		Options			1,491,680				(181	)			209
Total					—				(2,105	)			(1,759	)

 

(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			2,328,824				(2,771	)			(2,771	)
		Futures Options			714,455				(108	)			73
Over-the-Counter		Options			1,033,333				173				39
Total					—				(2,706	)			(2,658	)

 

(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

(5)	Commodity-Related Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			54,436				(189	)			(189	)
Over-the-Counter		Swaps			5,296				1				1
		Options			299,986				2,186				2,186
Total					—				1,997				1,997

 

(Notes)		1.		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
		2.		Commodities include oil, copper, aluminum and others.

As of December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Listed		Futures			66,061				1,886				1,886
Over-the-Counter		Swaps			4,051				1				1
		Options			283,503				(1,200	)			(1,200	)
Total					—				687				687

 

(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.		Commodities include oil, copper, aluminum and others.

 

- 20 -

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(6)	Credit Derivative Transactions

As of March 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Credit Derivatives			3,840,024				(2,751	)			(2,751	)
Total					—				(2,751	)			(2,751	)

 

(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

As of December 31, 2017

 

(Millions of yen)
Classification		Type		Contract Value				Fair Value				Unrealized Gains (Losses)
Over-the-Counter		Credit Derivatives			3,155,771				(3,200	)			(3,200	)
Total					—				(3,200	)			(3,200	)

 

(Note)		The above transactions are marked to market, and changes in unrealized gains (losses) are included in the quarterly consolidated statement of income.

 

- 21 -

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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 nine months ended December 31, 2016				For the nine months ended December 31, 2017
(1)   Net Income per Share of Common Stock		Yen			19.97				18.75
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent		Millions of yen			504,655				475,703
Amount not attributable to Common Stock		Millions of yen			—				—
Profit Attributable to Owners of Parent related to Common Stock		Millions of yen			504,655				475,703
Average Outstanding Shares of Common Stock (during the period)		Thousands of shares			25,259,486				25,366,621
(2)   Diluted Net Income per Share of Common Stock		Yen			19.88				18.74
(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			121,757				7,706
Preferred Stock		Thousands of shares			110,154				—
Stock Acquisition Rights		Thousands of shares			11,603				7,706
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 nine months ended December 31, 2016, was 5,018 thousand and the average number of such Treasury Stock shares deducted during the nine months ended December 31, 2017, was 11,322 thousand.

Subsequent Events

There is no applicable information.

 

- 22 -

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II.

Others

At the meeting of the Board of Directors held on November 13, 2017, the interim cash dividends for the 16th term were resolved as follows:

 

Total amount of interim cash dividends			¥95,186 million
Interim cash dividends per share
Common Stock			¥3.75
Effective date and starting date of dividend payments			December 5, 2017

 

- 23 -